Capitalism; Imperialism; Saving and investment; Socialism
Tugan Baranovski, however, has one indirect proof that the diagram with
its strange results corresponds to, and truly reflects, reality. This is
the fact that capitalist production, quite in accordance with Marx's
diagram, puts human consumption second to production, that it conceives
of the former as a means and of the latter as an end in itself, just as
it puts human labour, the 'worker', on a par with the machine.
'Technical progress is expressed by the fact that the means of labour,
the machine, increases more and more in importance as compared to living
labour, to the worker himself. Means of production play an ever growing
part in the productive process and on the commodity market. Compared to
the machine, the worker recedes further into the background and the
demand resulting from the consumption of the workers is also put into
the shade by that which results from productive consumption by the means
of production. The entire workings of capitalist economy take on the
character of a mechanism existing on its own, as it were, in which human
consumption appears as a simple moment of the reproductive process and
the circulation of capitals.'[324]
Tugan Baranovski considers this discovery as a fundamental law of the
capitalist mode of production, which is confirmed by a quite tangible
phenomenon: with the progress of capitalist development Department I
goes on growing relatively to, and at the expense of, Department II. It
was Marx himself who, as we all know, set up this law in which he
grounded the schematic exposition of reproduction, though in the further
development of his diagram he ignored subsequent alterations for
simplicity's sake. This, the automatic growth of the producer goods as
compared with the consumer goods department affords Tugan Baranovski the
only objective proof of his theory: that in capitalist society human
consumption becomes increasingly unimportant, and production more and
more an end in itself. This thesis forms the corner-stone of his entire
theoretical edifice.
'In all the industrial countries', he proclaims, 'we are confronted with
the same type of development--the development of national economy
everywhere follows the same fundamental law. The mining industry which
creates the means of production for modern industry comes more and more
to the fore. The relative decrease in the export of immediately
consumable manufactured goods from Britain is thus also an expression of
the fundamental law governing capitalist development. The further
technical progress advances, the more do consumer goods recede as
compared with producer goods. Human consumption plays an ever decreasing
part as against the productive consumption of the means of
production.'[325]
Public-domain text, read in full here on John Shaqi.
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