Capitalism; Imperialism; Saving and investment; Socialism
Ricardo's thesis in the controversy with Sismondi takes the following
form: 'Supposing that 100 workers produce 1,000 sacks of corn, and 100
weavers 1,000 yards woollen fabric. Let us disregard all other products
useful to man and all intermediaries between them, and consider them
alone in the world. They exchange their 1,000 yards against the 1,000
sacks. Supposing that the productive power of labour has increased by a
tenth owing to a successive progress of industry, the same people will
exchange 1,100 yards against 1,100 sacks, and each will be better
clothed and fed; new progress will make them exchange 1,200 yards for
1,200 sacks, and so on. The increase in products always only increases
the enjoyment of those who produce.'[203]
The great Ricardo's standards of reasoning, it must regretfully be
stated, are if anything even lower than those of the Scottish
arch-humbug, MacCulloch. Once again we are invited to witness a
harmonious and graceful country-dance of sacks and yards--the very
proportion which is to be proved, is again taken for granted. What is
more, all relevant premises for the problem are simply left out. The
real problem--you will recollect--the object of the controversy had been
the question: who are the buyers and consumers of the surplus product
that comes into being if the capitalists produce more goods than are
needed for their own and their workers' consumption; if, that is to say,
they capitalise part of their surplus value and use it to expand
production, to increase their capital? Ricardo answers it by completely
ignoring the capital increase. The picture he paints of the various
stages of production is merely that of a gradually increasing
productivity of labour. According to his assumptions, the same amount of
labour first produces 1,000 sacks and 1,000 yards textiles, then 1,100
sacks and 1,100 yards, further 1,200 sacks and 1,200 yards, and so on,
in a gracefully ascending curve. Not only that the image of a marshalled
uniform progression on both sides, of conformity even in the number of
objects brought to exchange, is wearisome, the expansion of capital is
nowhere as much as mentioned in the model. Here we have no enlarged but
simple reproduction with a greater bulk of use-values indeed, but
without any increase in the value of the aggregate social product. Since
only the amount of value, not the number of use-values is relevant to
the exchange transaction, and this amount remains constant in the
example, Ricardo makes no real advances, even though he seems to analyse
the progressive expansion of production. Finally, he is quite oblivious
of the relevant categories of reproduction. MacCulloch had begun by
making the capitalists produce without any surplus value and live on
air, but at least he recognised the existence of the workers, making
provision for their consumption. Ricardo, however, does not even mention
the workers; for him the distinction between variable capital and
Public-domain text, read in full here on John Shaqi.
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