Capitalism; Imperialism; Saving and investment; Socialism
Rosa Luxemburg treats the authors whom she examines in Section II with a
good deal of sarcasm, and dismisses them all as useless. To some of the
points raised her answers seem scarcely adequate. For instance,
Rodbertus sees the source of all the troubles of capitalism in the
falling proportion of wages in national income.[36] He can be
interpreted to refer to the proportion of wages in gross income. In that
case, she is right (on the assumption of capital-using inventions) in
arguing that a fall in the proportion of wages is bound up with
technical progress, and that the proportion could be held constant only
by stopping progress. He can also be taken to refer to the share of
wages in net output, and this is the more natural reading. On this
reading she argues that the fall in share of wages (or rise in rate of
exploitation) is necessary to prevent a fall in the rate of profit on
capital[37] (as capital per man employed rises, profit per man employed
must rise if profit per unit of capital is constant). But she does not
follow up the argument and inquire what rise in the rate of exploitation
is necessary to keep capitalism going (actually, the statisticians tell
us, the share of wages in net income has been fairly constant in modern
industrial economies[38]). It is obvious that the less the rate of
exploitation rises, the smaller is the rise in the rate of saving which
the system has to digest, while the rise in real consumption by workers,
which takes place when the rate of exploitation rises more slowly than
productivity in the consumption good industries, creates an outlet for
investment in productive capacity in those industries. The horrors of
capitalism, and the difficulties which it creates for itself, are both
exaggerated by the assumption of constant real-wage rates and, although
it would be impossible to defend Rodbertus' position that a constant
rate of exploitation is all that is needed to put everything right, he
certainly makes a contribution to the argument which ought to be taken
into account.
Tugan-Baranovski also seems to be treated too lightly. His conception is
that the rising proportion of constant capital in both departments
(machines to make machines as well as machines to make consumers' goods)
provides an outlet for accumulation, and that competition is the driving
force which keeps capitalists accumulating. Rosa Luxemburg is no doubt
correct in saying that his argument does not carry the analysis beyond
the stage at which Marx left it,[39] but he certainly elaborates a point
which she seems perversely to overlook. Her real objection to
Tugan-Baranovski is that he shows how, in certain conditions, capitalist
accumulation might be self-perpetuating, while she wishes to establish
that the coming disintegration of the capitalist system is not merely
probable on the evidence, but is a logical necessity.[40]
Public-domain text, read in full here on John Shaqi.
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