Capitalism; Imperialism; Saving and investment; Socialism
Assuming that society's annual aggregate product can be represented by
an amount to the value of 9,000 (denoting millions of working hours, or,
in capitalist monetary terms, any arbitrary amount of money), the
aggregate product is to be distributed as follows:
I. _4,000c + 1,000v + 1,000s = 6,000_
II. _2,000c + 500v + 500s = 3,000_
-----
Total: 9,000
Department I represents means of production, Department II consumer
goods. One glance at the proportion of the figures shows that in this
case simple reproduction alone is possible. The means of production made
in Department I equal the total of the means of production actually
used by the two departments. If these are merely renewed, production can
be repeated only on its previous scale. On the other hand, the aggregate
product of Department II equals the total of wages and surplus value in
both departments. This shows that the consumer goods available permit
only the employment of just as many workers as were previously employed,
and that the entire surplus value is similarly spent on consumer goods,
i.e. the personal consumption of the capitalist class.
Now let us take the same aggregate product of 9,000 in the following
equation:
I. _4,000c + 1,000v + 1,000s = 6,000_
II. _1,500c + 750v + 750s = 3,000_
-----
Total: 9,000
Here a double disproportion confronts us: 6,000 means of production are
created--more than those which are actually used by the society, i.e.
_4,000c + 1,500c_, leaving a surplus of 500. Similarly, less consumer
goods (3,000) are produced than the sum of what is paid out in wages
(i.e. _1,000v + 750v_, the requirement of the workers), plus the
aggregate of surplus value that has been produced (_1,000s + 750s_).
This results in a deficit of 500. Since our premises do not allow us to
decrease the number of workers employed, the consequence must be that
the capitalist class cannot consume the entire surplus value it has
pocketed. This proves fully consistent with the two material
preconditions of enlarged reproduction on a capitalist basis: part of
the appropriated surplus value is not to be consumed but is used for the
purposes of production; and more means of production must be produced so
as to ensure the use of the capitalised surplus value for the actual
expansion of reproduction.
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