Capitalism; Imperialism; Saving and investment; Socialism
The attempt by Marx to find room for the production of gold within
Department I (means of production) moreover leads to dubious results.
The first act of circulation between this new sub-Department (called by
Marx I_g_) and Department II (consumer goods) consists as usual in the
workers' purchase of consumer goods from Department II with the money
obtained as wages from the capitalists. This money is not yet a product
of the new period of production. It has been reserved by the capitalists
of Department I_g_ out of the money contained in their product of an
earlier period. This, indeed, is the normal procedure. But now Marx
allows the capitalists of Department II to buy gold from I_g_ with the
money they have reserved, gold as a commodity material to the value of
2. This is a leap from the production of money into the industrial
production of gold which is no more to do with the problem of the
production of money than with the production of boot-polish. Yet out of
the 5 I_g v_ that have been reserved, 3 still remain, and as the
capitalist, unable to use them as constant capital, does not know what
to do with them, Marx arranges for him to add them on to his own reserve
of money. Marx further finds the following way out to avoid a deficit in
the constant capital of II which must be exchanged completely against
the means of production (I_v_ + I_s_):
'Therefore, this money must be entirely transferred from II_c_ to II_s_,
no matter whether it exists in necessities of life or articles of
luxury, and vice versa, a corresponding value of commodities must be
transferred from II_s_ to II_c_. Result: A portion of the surplus-value
is accumulated as a hoard of money.'[93]
A strange result, in all conscience! We have achieved an increase in
money, a surplus of the money substance, by simply confining ourselves
to the annual wear and tear of the money fund. This surplus value comes
into existence, for some unknown reason, at the expense of the
capitalists in the consumer goods department. They practise abstinence,
not because they may want to expand their production of surplus value,
let us say, but in order to secure a sufficient quantity of consumer
goods for the workers engaged in the production of gold.
Public-domain text, read in full here on John Shaqi.
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