How is this explained, according to Marx? By means of competition, the
different rates of profit are levelled to a general rate of profit,
which is the average of all the various rates of profit. Thus the
capitalists do not realise the surplus value as it is created in any
particular factory, but in the form of average rate of profit as it is
produced by the operations of the total capital of society. The
average rate of profit may be lower or higher than the individual rate
of profit, for the "various capitalists," as Marx explains, "so far as
profits are concerned, are so many stockholders in a stock company in
which the shares of profits are uniformly divided for every 100 shares
of capital, so that profits differ in the case of the individual
capitalists only according to the amount of capital invested by each
of them in the social enterprise, according to his investment in
social production as a whole, according to his shares."
While thus the individual rates of profit do not proportionately
coincide with the rates of surplus value, i.e., while the degree of
exploitation of the worker in the individual factory, and the volume
of surplus value thus individually created, do not directly determine
the individual rate of profit, it is the total mass of social surplus
value which is the source of the average rate of profit. If the mass
of the surplus value be large, the average rate of profit will also be
great. Marx says: "It is here just the same as with average rate of
interest which a usurer makes who lends out various portions of his
capital at different rates of interest. The level of his average rate
depends entirely on how much of his capital he has lent at each of the
different rates of interest." The higher the various individual rates
of interest, the higher will be the average rate of interest at which
his capital has been put out.
The individual price of production signifies, therefore, cost price
plus the average rate of profit, and not plus surplus value: it does
not necessarily correspond with the total amount of the constant and
variable portions of capital employed in an individual enterprise,
plus the mass of the surplus value: the prices and magnitudes of value
of commodities are not manifestly equal, as Marx has often pointed
out. Of course, the total profits of the capitalist class coincide
with the total surplus value extracted from the working class,
provided, of course, that the supply of commodities corresponds with
the social needs.
Thus the law of surplus value, in spite of all deviations and
refractions, holds good in the last resort. "In theory," observes
Marx, "it is assumed that the laws of the capitalist mode of
production develop freely. In reality, there is always only an
approximation."
Public-domain text, read in full here on John Shaqi.
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