Capitalism; Imperialism; Saving and investment; Socialism
'The majority of economists before Marx', he declares, 'solved the
problem by saying that some sort of "third person" is needed, as a _deus
ex machina_, to cut the Gordian knot, i.e. to consume the surplus value.
This part is played by luxury-loving landowners (as with Malthus), or by
indulgent capitalists, or yet by militarism and the like. There can be
no demand for the surplus value without some such extraordinary
mediators; a deadlock will be reached on the markets and the result will
be over-production and crises.'[300]
'Struve thus assumes that capitalist production in its development, too,
may find its ultimate mainstay in the consumption of some fantastic sort
of "third person". But if this great public is essentially characterised
as consuming the surplus value, whence does it obtain the means to
buy?'[301]
For his part, Bulgakov centres the whole problem from the first in the
analysis of the social aggregate product and its reproduction as given
by Marx in the second volume of _Capital_. He has a thorough grasp of
the fact that he must start with simple reproduction and must fully
understand its working in order to solve the question of accumulation.
In this context, he says, it is of particular importance to obtain a
clear picture of the consumption of surplus value and wages in such
branches of production as do not turn out goods for consumption, and
further, to understand fully the circulation of that portion of the
social aggregate product which represents used-up constant capital.
This, he argues, is a completely new problem of which economists had not
even been aware before Marx brought it up. 'In order to solve this
problem, Marx divides all capitalistically produced commodities into two
great and fundamentally different categories: the production of producer
and consumer goods. There is more theoretical importance in this
division than in all previous squabbles on the theory of markets.'[302]
Bulgakov, we see, is an outspoken and enthusiastic supporter of Marx's
theory. The object of his study, as he puts it, is thus a critique of
the doctrine that capitalism cannot exist without external markets. 'For
this purpose, the author has made use of the most valuable analysis of
social reproduction given by Marx in volume ii of _Capital_ which for
reasons unknown has scarcely been utilised in economic theory. Though
this analysis cannot be taken as fully completed, we are yet of opinion
that even in its present fragmentary shape it offers an adequate
foundation for a solution of the market problem that differs from that
adopted by Messrs. Nikolayon, V. V. and others, and which they claim to
have found in Marx.'[303]
Public-domain text, read in full here on John Shaqi.
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