Capitalism; Imperialism; Saving and investment; Socialism
In this ingenious theory there are quite a few points to make us wonder.
If our commercial crises are entirely due to the fact that the workers'
'wage rate', the variable capital, represents a constantly diminishing
portion of the total value of the national product, then this
unfortunate law brings with it the cure for the evil it has caused,
since it must be an ever smaller part of the aggregate product for
which there is over-production. Although Rodbertus delights in such
terms as 'an overwhelming majority', 'the large popular masses' of
consumers, it is not the number of heads that make up the demand, but
the value they represent which is relevant. This value, if Rodbertus is
to be believed, forms a more and more trifling part of the aggregate
product. Crises are thus made to rest on an ever narrowing economic
basis, and all that remains to discover is how in spite of it all it can
still happen that the crises are universal and increasingly severe
besides, as Rodbertus is fully aware. The purchasing power lost by the
working classes should be gained by the capitalist class; if _v_
decreases, _s_ must grow larger to make up for it. On this crude scheme,
the purchasing power of society as a whole cannot change, as Rodbertus
says in so many words: 'I know very well that what is taken from the
workers' share goes ultimately to swell that of the "rentiers" (rent and
surplus value are used as synonyms, _R.L._), and that purchasing power
remains constant on the whole and in the long run. But as far as the
product on the market is concerned, the crisis always sets in before
this increase can make itself felt.'[259]
In short, the most it can amount to is that there is 'too much' of
'common goods' and 'too little' of superior goods for the capitalists.
Quite unawares, and by devious ways, Rodbertus here falls in with the
Say-Ricardian theory he so ardently contested, the theory that
over-production on one side always corresponds to under-production on
the other. Seeing that the ratio of the two shares is persistently
shifting to the advantage of the capitalists, our commercial crises
might be expected on the whole to take on increasingly the character of
periodical under- instead of over-production! Enough of this exercise in
logic. The upshot of it all is that Rodbertus conceives the national
product in respect of its value as made up of two parts only, of _s_ and
_v_, thus wholly subscribing to the views and traditions of the
classical school he is fighting tooth and nail, and even adding his own
flourish that the capitalists consume the entire surplus value. That is
why he repeatedly says without mincing his words, as in the fourth
_Letter on Social Problems_:
Public-domain text, read in full here on John Shaqi.
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