Capitalism; Imperialism; Saving and investment; Socialism
The general formula for enlarged reproduction under the rule of capital
thus runs as follows: _c + v + s/x + s´_. Here _s/x_ stands for the
capitalised part of the surplus value appropriated in an earlier period
of production; _s´_ stands for the new surplus value created by the
increased capital. Part of this new surplus value is capitalised again,
and expanding reproduction is thus, from the capitalist point of view, a
constantly flowing process of alternate appropriation and capitalisation
of surplus value.
So far, however, we have only arrived at a general and abstract formula
for reproduction. Let us now consider more closely the concrete
conditions which are necessary to apply this formula.
The surplus value which has been appropriated, after it has successfully
cast off its commodity-form in the market, appears as a given amount of
money. This money-form is the form of its absolute value, the beginning
of its career as capital. But as it is impossible to create surplus
value with money, it cannot, in this form, advance beyond the threshold
of its career. Capital must assume commodity-form, so that the
particular portion of it which is earmarked for accumulation can be
capitalised. For only in this form can it become productive capital;
that is, capital begetting new surplus value. Therefore, like the
original capital, it must again be divided into two parts; a constant
part, comprising the inanimate means of production, and a variable part,
the wages. Only then will our formula _c + v + s_ apply to it in the
same way as it applied to the old capital.
But the good intent of the capitalist to accumulate, his thrift and
abstinence which make him use the greater part of his surplus value for
production instead of squandering it on personal luxuries, is not
sufficient for this purpose. On the contrary, it is essential that he
should find on the commodity market the concrete forms which he intends
to give his new surplus value. In the first place, he must secure the
material means of production such as raw materials, machines etc.
required for the branch of production he has chosen and planned, so that
the particular part of the surplus value which corresponds to his
constant capital may assume a productive form. Secondly, the other,
variable part of his surplus value must also be convertible, and two
essentials are necessary for this conversion: of first importance, the
labour market must offer a sufficient quantity of additional labour, and
secondly, as the workers cannot live on money alone, the commodity
market, too, must offer an additional amount of provisions, which the
workers newly to be employed may exchange against the variable part of
the surplus value they will get from the capitalist.
Public-domain text, read in full here on John Shaqi.
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