Capitalism; Imperialism; Saving and investment; Socialism
Thus, Sismondi makes the fact of non-reproduction the criterion of
income as distinct from capital for wages as well as for rent. In this,
however, he is only right with regard to rent and the consumed part of
capital profits; as for the part of the social product which is consumed
in form of wages, it certainly does reproduce itself; it becomes the
labour power of the wage labourer, for him a commodity by whose sale he
lives, which he can bring to market again and again; for society it
becomes the material form of variable capital which must reappear time
and again in the aggregate reproduction of a year, if there is to be no
loss.
So far so good. Hitherto we have only learned two facts: the
productivity of labour permits of the exploitation of the workers by
those who do not work themselves, and exploitation becomes the actual
foundation of the distribution of income owing to the divorce of the
worker from his means of production. But we still do not know what is
capital and what income, and Sismondi proceeds to clarify this point,
starting as usual with Robinson Crusoe:
'In the eyes of the individual all wealth was nothing but a provision
prepared beforehand for the time of need. Even so, he already
distinguished two elements in this provision ... one part which he
budgets to have at hand for immediate or almost immediate use, and the
other which he will not need until it is to afford him new production.
Thus one part of his corn must feed him until the next harvest, another
part, reserved for sowing, is to bear fruit the following year. The
formation of society and the introduction of exchange, permit to
increase this seed, this fertile part of accumulated wealth, almost
indefinitely, and this is what is called capital.'[164]
Balderdash would be a better name for all this. In using the analogy of
seed, Sismondi here identifies means of production and capital, and this
is wrong for two reasons. First, means of production are capital not
intrinsically, but only under quite definite historical conditions;
secondly, the concept of capital covers more than just the means of
production. In capitalist society--with all the conditions Sismondi
ignores--the means of production are only a part of capital, i.e. they
are constant capital.
Sismondi here lost his thread plainly because he tried to establish a
connection between the capital concept and the material aspects of
social reproduction. Earlier, so long as he was concerned with the
individual capitalist, he listed means of subsistence for the workers
together with means of production as component parts of capital--again a
mistake in view of the material aspects of the reproduction of
individual capitals. Yet as soon as he tries to focus the material
foundations of social reproduction and sets out to make the correct
distinction between consumer goods and means of production, the concept
of capital dissolves in his hands.
Public-domain text, read in full here on John Shaqi.
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