Capitalism; Imperialism; Saving and investment; Socialism
In the model set out in chapter vi there is no technical progress (this
is a drastic simplification made deliberately[6]) and the ratio of
capital to labour is constant (as the stock of capital increases
employment increases in proportion). Thus real output per worker
employed is constant (hours of work per year do not vary) and real wages
per man are constant. It follows that real surplus per man is also
constant. So long as these assumptions are retained Marxian _value_
presents no problem. _Value_ is the product of labour-time. _Value_
created per man-year is constant because hours of work are constant.
Real product per man year being constant, on the above assumptions, the
_value_ of a unit of product is constant. For convenience we may assume
money wages per man constant. Then, on these assumptions, both the
money price of a unit of output and the _value_ of a unit of money are
constant. This of course merely plasters over all the problems of
measurement connected with the use of index numbers, but provided that
the technique of production is unchanging, and normal prices are ruling,
those problems are not serious, and we can conduct the analysis in terms
of money values.[7] (Rosa Luxemburg regards it as a matter of
indifference whether we calculate in money or in _value_.[8])
The assumption of constant real wages presents a difficulty which we may
notice in passing. The operation of the capitalist system is presumed to
depress the level of wages down to the limit set by the minimum
subsistence of the worker and his family. But how large a family? It
would be an extraordinary fluke if the average size of family supported
by the given wage of a worker were such as to provide for a rate of
growth of population exactly adjusted to the rate of accumulation of
capital, and she certainly does not hold that this is the case.[9] There
is a reserve army of labour standing by, ready to take employment when
the capitalists offer it. While they are unemployed the workers have no
source of income, but are kept alive by sharing in the consumption of
the wages of friends and relations who are in work.[10] When an increase
in the stock of capital takes place, more workers begin to earn wages,
those formerly employed are relieved of the burden of supporting some
unemployed relations, and their own consumption rises. Thus either they
were living below the subsistence minimum before, or they are above it
now. We may cut this knot by simply postulating that real wages per man
are constant,[11] without asking why. The important point for the
analysis which we are examining is that when employment increases the
total consumption of the workers as a whole increases by the amount of
the wages received by the additional workers.[12]
Public-domain text, read in full here on John Shaqi.
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