Capitalism; Imperialism; Saving and investment; Socialism
'You know that all economists since Adam Smith already divided the value
of the product into wage of labour, rent, and capital profit, that it is
therefore not a new idea to ground the incomes of the various classes,
and especially the various items of the rent, in a division of the
product. But the economists at once go off the track. All of them, not
even excepting Ricardo's school, make the mistake, first, not to
recognise that the aggregate product, the finished good, the national
product as a whole, is an entity in which workers, landowners, and
capitalists all share, but conceiving the division of the unfinished
product to be of one kind shared among three partners, and that of the
manufactured product as of another kind again, shared between only two
partners. For these theories both the unfinished product and the
manufactured product constitute as such separate items of revenue.
Secondly,--though both Sismondi and Ricardo are free from this
particular error--they regard the natural fact that labour cannot
produce goods without material help, i.e. without the land, as an
economic fact, and take the social fact for a primary datum that capital
as understood to-day is required by the division of labour. Thus they
set up the fiction of a fundamental economic relationship on which they
base also for the shares of the various owners, ground rent springing
from the contribution of the land lent by the owner to production,
capital profits from the contribution of capital employed by the
capitalist to this end, and the wages finally from labour's
contribution, seeing that there are separate owners of land, capital,
and labour in the society. Say's school, elaborating on this mistake
with much ingenuity, even invented the concept of productive service of
land, capital, and labour in conformity with the shares in the product
of their respective owners, so as to explain these shares as the result
of productive service.--Thirdly, they are caught up in the ultimate
folly of deriving the wage of labour and the items of rent from the
value of the product, the value of the product in turn being derived
from the wage of labour and the items of rent, so that the one is made
to depend on the other and _vice versa_. This absurdity is quite
unmistakable when some of these authors attempt to expound "The
Influence of Rent Upon Production Prices" and "The Influence of
Production Prices Upon Rent" in two consecutive chapters.'[266]
Yet for all these excellent critical comments--the last, particularly
acute, actually does to some extent anticipate Marx's criticism of this
point in _Capital_, volume ii--Rodbertus calmly falls in with the
fundamental blunder of the classical school and its vulgar followers: to
ignore altogether that part of the value of the aggregate product which
is needed to replace the constant capital of the society. This way it
was easier for him to keep up the singular fight against the 'declining
wage rate'.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account