Capitalism; Imperialism; Saving and investment; Socialism
If all the goods produced are thus swallowed up by human consumption,
there can clearly be no room to spare in the total social product for
such unconsumable means of production as tools and machinery, new
materials and buildings, and consequently enlarged reproduction, too,
will have to take a peculiar course. What happens--according to this odd
conception--is simply that staple foodstuffs for new workers will be
produced to the amount of the capitalised part of surplus value instead
of the choice delicacies previously provided for the capitalist class.
The classical theory of enlarged reproduction does not admit of any
variations other than those connected with the production of consumer
goods. After our previous observations it is not surprising that Marx
could easily dispose of this elementary mistake of both Ricardo and
Smith. Just as simple reproduction requires a regulated renewal of the
constant capital, the material means of production, quite apart from the
production of consumer goods in the necessary quantity for labourer and
capitalist, equally so in the case of expanding production must part of
the new additional capital be used to enlarge the constant capital, that
is to add to the material means of production. Another law, Marx
discovered, must also be applied here. The constant capital, continually
overlooked by the classical economists, increases relative to the
variable capital that is spent on wages. This is merely the capitalist
expression of the general effects of increasing labour productivity.
With technical progress, human labour is able to set in motion ever
larger masses of means of production and to convert them into goods. In
capitalist terms, this means a progressive decrease in expenses for
living labour, in wages, relative to the expenses for inanimate means of
production. Contrary to the assumption of Adam Smith and Ricardo,
enlarged reproduction must not only start with the division of the
capitalised part of the surplus value into constant and variable
capital, but, as the technique of production advances, it is bound to
allocate in this division ever increasing portions to the constant, and
ever diminishing portions to the variable capital. This continuous
qualitative change in the composition of capital is the specific
manifestation of the accumulation of capital, that is to say of enlarged
reproduction on the basis of capitalism.[98]
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