Capitalism; Imperialism; Saving and investment; Socialism
In considering the diagram of simple reproduction, we saw that its
fundamental social conditions are contained in the following equation:
the aggregate of means of production (the product of Department I) must
be equivalent to the constant capital of both departments, but the
aggregate of consumer goods (the product of Department II) must equal
the sum of variable capitals _and_ surplus values of the two
departments. As regards enlarged reproduction, we must now infer a
precise inverse double ratio. The general precondition of enlarged
reproduction is that the product of Department I must be greater in
value than the constant capital of both departments taken together, and
that of Department II must be so much less than the sum total of both
the variable capital and the surplus value in the two departments.
This, however, by no means completes the analysis of enlarged
reproduction; rather has it led us merely to the threshold of the
question. Having deduced the proportions of the diagram, we must now
pursue their further activities, the flow of circulation and the
continuity of reproduction. Just as simple reproduction may be compared
to an unchanging circle, to be repeated time and again, so enlarged
reproduction, to quote Sismondi, is comparable to a spiral with ever
expanding loops. Let us begin by examining the loops of this spiral. The
first general question arising in this connection is how actual
accumulation proceeds in the two departments under the conditions now
known to us, i.e. how the capitalists may capitalise part of their
surplus value, and at the same time acquire the material prerequisites
necessary for enlarged reproduction.
Marx expounds the question in the following way:
Let us assume that half the surplus value of Department I is being
accumulated. The capitalists, then, use 500 for their consumption but
augment their capital by another 500. In order to become active, this
additional capital of 500 must be divided, as we now know, into constant
and variable capital. Assuming the ratio of 4 to 1 remains what it was
for the original capital, the capitalists of Department I will divide
their additional capital of 500 thus: they will buy new means of
production for 400 and new labour for 100. This does not present any
difficulties, since we know that Department I has already produced a
surplus of 500 means of production. Yet the corresponding enlargement of
the variable capital by 100 units of money is not enough, since the new
additional labour power must also find adequate consumer goods which can
only be supplied by Department II. Now the circulation between the two
large departments is shifting. Formerly, under conditions of simple
reproduction, Department I acquired 1,000 consumer goods for its own
workers, and now it must find another 100 for its new workers.
Department I therefore engages in enlarged reproduction as follows:
_4,400c + 1,100v_.
Public-domain text, read in full here on John Shaqi.
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