Capitalism; Imperialism; Saving and investment; Socialism
Yet in spite of all this, the first time that Sismondi crossed swords
with the heirs of the classical school, he proved himself by no means
the weaker party. On the contrary, in the end he routed his opponent. If
Sismondi misunderstood the most elementary principles of social
reproduction and ignored constant capital, quite in keeping with Adam
Smith's dogma, he was in this respect no worse at any rate than his
opponent. Constant capital does not exist for MacCulloch either, his
farmers and manufacturers 'advance' merely food and clothing to their
workers, and food and clothing between them make up the aggregate
product of society. If there is, then, nothing to choose between the two
as far as this elementary blunder is concerned, Sismondi towers heads
above Mac because of his intuitive understanding of the contradictions
in the capitalist mode of production. In the end, the Ricardian was at a
loss to answer Sismondi's scepticism concerning the possibility of
realising the surplus value. Sismondi also shows himself more
penetrating in that he throws the Nottingham proletarians' cry of
distress in the teeth of the apostles and apologists of harmony with
their smug complacency, of those who deny 'any surplus of production
over demand, any congestion of the market, any suffering', when he
proves that the introduction of the machine must of necessity create a
'superabundant population', and particularly in the end, when he
underlines the tendency of the capitalist world market in general with
its inherent contradictions. MacCulloch denies outright that general
over-production is possible. He has a specific for every partial
over-production up his sleeve:
'It may be objected, perhaps, that on the principle that the demand for
commodities increases in the same ratio as their supply, there is no
accounting for the gluts and stagnation produced by overtrading. We
answer very easily--A glut is an increase in the supply of a particular
class of commodities, unaccompanied by a corresponding increase in the
supply of those other commodities which should serve as their
equivalents. While our 1,000 farmers and 1,000 master-manufacturers are
exchanging their respective surplus products, and reciprocally affording
a market to each other, if 1,000 new capitalists were to join their
society, employing each 100 labourers in tillage, there would be an
immediate glut in agricultural produce ... because in this case there
would be no contemporaneous increase in the supply of the manufactured
articles which should purchase it. But let one half of the new
capitalists become manufacturers, and equivalents in the form of wrought
goods will be created for the new produce raised by the other half: the
equilibrium will be restored, and the 1,500 farmers and 1,500
master-manufacturers will exchange their respective surplus products
with exactly the same facility with which the 1,000 farmers and 1,000
manufacturers formerly exchanged theirs.'[189]
Public-domain text, read in full here on John Shaqi.
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