Capitalism; Imperialism; Saving and investment; Socialism
In capitalist society, however, the connections between these two great
departments depend upon exchange of commodities, on the exchange of
equivalents. The workers and capitalists of Department I can only obtain
as many provisions from Department II as they can deliver of their own
commodities, the means of production. The demand of Department II for
means of production, on the other hand, is determined by the size of its
constant capital. It follows therefore that the sum of the variable
capital and of the surplus value in the production of producer goods
[here I(_1,000v + 1,000s_)] must equal the constant capital in the
production of provisions [here II(2,000_c_)].
An important proviso remains to be added to the above scheme. The
constant capital which has been spent by the two departments is in
reality only part of the constant capital used by society. This constant
capital is divided into two parts; the first is fixed capital--premises,
tools, labouring cattle--which functions in a number of periods of
production, in every one of which, however, only part of its value is
absorbed by the product, according to the amount of its wear and tear.
The second is circulating capital such as raw materials, auxiliary
semi-finished products, fuel and lighting--its whole value is completely
absorbed by the new product in every period of production. Yet only that
part of the means of production is relevant for reproduction which is
actually absorbed by the production of value; without becoming less
correct, an exact exposition of social circulation may disregard the
remaining part of the fixed capital which has not been absorbed by the
product, though it should not completely forget it. This is easy to
prove.
Public-domain text, read in full here on John Shaqi.
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