Capitalism; Imperialism; Saving and investment; Socialism
Although this 'fundamental law' like all his other 'fundamental' laws,
in so far as they mean anything at all, is borrowed ready-made from
Marx, Baranovski does not rest content with this and immediately
proceeds to preach the Marxist gospel to Marx himself. Scrabbling about
like a blind hen, Marx has turned up another pearl--Tugan will give him
that--only he does not know what to do with it. It needed a Tugan
Baranovski to know how to make it useful to science, and in his hand the
newly discovered law suddenly throws a new light on the whole workings
of capitalist economy. This law of the expansion in the department of
producer goods at the cost of that of consumer goods reveals clearly,
concisely, exactly, and in measurable terms, that capitalist society
attaches progressively less importance to human consumption, putting man
on the same level as the means of production, and that Marx was
therefore completely wrong both in assuming that man alone, not the
machine, too, can be the creator of surplus value, and in saying,
further, that human consumption represents a limit for capitalist
production which is bound to cause periodical crises in the present, and
the collapse and terrible end of capitalist economy in the near future.
In short, the 'fundamental law' governing the increase of producer as
compared to consumer goods reflects the singular nature of capitalist
society as a whole which Marx had not understood and which to interpret
happily fell to the lot of Tugan Baranovski.
We have seen above the decisive part played by the 'fundamental law' of
capital in the controversy between the Russian Marxists and the
sceptics. Bulgakov's remarks we already know; another Marxist already
referred to, Vladimir Ilyin, expresses himself in similar terms in his
polemics against the 'populists':
'It is well known that the law of capitalist production consists in the
fact that the constant capital grows more rapidly than the variable
capital, that is to say an ever increasing part of the newly formed
capital falls to the department of social production which creates
producer goods. In consequence, this department is absolutely bound to
grow more rapidly than the department creating consumer goods, that is
to say, the very thing happens which Sismondi declared to be
"impossible", "dangerous", etc. In consequence, consumer goods make up a
smaller and smaller share of the total bulk of capitalist production,
and this is entirely in accordance with the historical "mission" of
capitalism and its specific social structure: the former in fact
consists in the development of the productive forces of society
(production as an end in itself), and the latter prevents that the mass
of the population should turn them to use.'[326]
Public-domain text, read in full here on John Shaqi.
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