Unemployment

Marx’s Capital Volume 1, Part 9a

Unemployment

Chapter 25 of Marx’s Capital, Volume 1, called The General Law of Capitalist Accumulation, is about the effects of Capital on the workforce.

Section 3 of Chapter 25 is concerned with what we nowadays refer to as Unemployment. Marx argues very directly and very convincingly in this section that unemployment is a necessary, constant, conscious and deliberate part of the capitalist system. He writes:

“The over-work of the employed part of the working-class swells the ranks of the reserve, whilst conversely the greater pressure that the latter by its competition exerts on the former, forces these to submit to overwork and to subjugation under the dictates of capital. The condemnation of one part of the working-class to enforced idleness by the overwork of the other part, and the converse, becomes a means of enriching the individual capitalists”.

In the light of what Marx says here, it can be argued that all protestations from bourgeois democrats that they are intending to provide "jobs" for all of the unemployed are false.

Early in this chapter, Marx writes:

“[The] accelerated relative diminution of the variable constituent, that goes along with the accelerated increase of the total capital, and moves more rapidly than this increase, takes the inverse form, at the other pole, of an apparently absolute increase of the labouring population, an increase always moving more rapidly than that of the variable capital or the means of employment. But in fact, it is capitalistic accumulation itself that constantly produces, and produces in the direct ratio of its own energy and extent, a relativity redundant population of labourers, i.e., a population of greater extent than suffices for the average needs of the self-expansion of capital, and therefore a surplus-population.”

In other words, whatever may be the intention, it is capitalism itself that creates unemployment. The stories about the birthrate being too high, the immigration too much, the rand too high, the interest rate too high, et cetera, are wrong. The truth is that unemployment is intrinsic to capitalism, as much as employment is.

Although we are obliged to do everything possible to increase employment and to reduce unemployment, yet there is eventually no escape from unemployment within the capitalist mode of production.

What is required, as Marx wrote in “Value, Price and Profit”, is “abolition of the wages system”, and the wages-system’s replacement with another mode of production.

Picture: A South African mine worker (AP).

Please download and read the text via the following link:

Capital V1, C25, Section 3 on Unemployment (4423 words)

Further reading:

Capital V1, C23, 24, Accumulation of Capital, in MS-Word file format (14246 words)

Reproduction and Accumulation of Capital

Marx’s Capital Volume 1, Part 9

Reproduction and Accumulation of Capital

“The conversion of a sum of money into means of production and labour-power, is the first step taken by the quantum of value that is going to function as capital. This conversion takes place in the market, within the sphere of circulation. The second step, the process of production, is complete so soon as the means of production have been converted into commodities whose value exceeds that of their component parts, and, therefore, contains the capital originally advanced, plus a surplus-value.”

Thus Marx describes the working of capitalism, and he goes on to describe this cycle as the origin of capital. As chapter 23 goes on, Marx describes the position of the working class in terms that are easy to understand today. This chapter of Capital speaks of what has in recent years been referred to as the “accumulation path”. Marx concludes Chapter 23 by saying:

“Capitalist production, therefore, under its aspect of a continuous connected process, of a process of reproduction, produces not only commodities, not only surplus-value, but it also produces and reproduces the capitalist relation; on the one side the capitalist, on the other the wage-labourer.”

And he begins Chapter 24 by saying:

“Hitherto we have investigated how surplus-value emanates from capital; we have now to see how capital arises from surplus-value. Employing surplus-value as capital, reconverting it into capital, is called accumulation of capital.”

Later on, Marx writes that the result of capitalistic production is threefold:

1)      “that the product belongs to the capitalist and not to the worker;

2)      “that the value of this product includes, besides the value of the capital advanced, a surplus-value which costs the worker labour but the capitalist nothing, and which none the less becomes the legitimate property of the capitalist;

3)      “that the worker has retained his labour-power and can sell it anew if he can find a buyer.”

This and the subsequent is material that is familiar and widely accepted today.

“Accumulate, accumulate! That is Moses and the prophets!” says Marx.

Image: Photograph of women workers (welders), USA, 1940s

Please download and read the text via the following link:

Capital V1, C23, 24, Accumulation of Capital, in MS-Word file format (14246 words)

Further reading:

Capital V1, C25, Section 3 on Unemployment (4423 words)

Wages

Marx’s Capital Volume 1, Part 8a

Wages

Part VI of Karl Marx’s Capital, Volume 1 is devoted to wages. We will use the first three chapters, 19, 20 and 21 in this section (download linked below). The short Chapter 22, on international differences in wages, is one of the very few chapters from Volume 1 that we will leave out of this course, but you can still read it on the Marxists Internet Archive, here.

On the first page of Chapter 19 Marx says, among other things, that the "value of labour… is an expression as imaginary as the value of the earth”.

The commodity that is exchanged by the worker for money is not Labour, but Labour-Power. After that, the entire product of the worker’s labour during the contracted time belongs to the boss. The product of the worker is greater than the payment given for the worker’s labour-power. The difference is surplus-value. The extraction of surplus-value from workers in this way is the defining characteristic of capitalism.

Through these three chapters on wages Marx continues to discuss this basic point in different ways. The minimum price of labour-power is that which is sufficient to keep the worker going until the next day. Or, it may be calculated over a worker’s lifetime, as Marx demonstrates here, and divided out to give an average day-rate. In all cases, including piece-work, the capitalist pays only for labour-power, and at the minimum price that will ensure the return of the worker to the workplace, next day.

Marx finishes Chapter 21 by declaring that if, under piece-work, the workers think they can get more by producing more, the boss will remind them quickly of the true relationship, which is not payment for labour, or the product of labour, but only payment for maintenance and reproduction of labour power.

“The capitalist rightly knocks on the head such pretensions as gross errors as to the nature of wage-labour.  He cries out against this usurping attempt to lay taxes on the advance of industry, and declares roundly that the productiveness of labour does not concern the labourer at all.”

The image above is a photograph of one of the striking workers in the 1968 “Memphis Sanitation Strike”. Their union was AFSCME. Martin Luther King went to Memphis, Tennessee to show solidarity with the strikers, who were badly paid, badly treated, not recognised and racially discriminated against. King was shot dead by an assassin at the Lorraine Motel in Memphis, where he was staying while supporting the strike.

Please download and read the text via the following link:

Capital V 1, C19, 20 and 21, Wages (7291 words)

Further reading:

Capital V1, C16, 17, 18, Absolute and Relative Surplus Value (9197 words)

Absolute and Relative

Marx’s Capital Volume 1, Part 8

Absolute and Relative

Chapters 16, 17 and 18 of Marx’s Capital Volume 1 (download linked below) have very interesting things to say about absolute and relative Surplus-Value, and about the old political economists’ mistakes about it. Here are some of the points made by Karl Marx:

“Capitalist production is not merely the production of commodities, it is essentially the production of surplus-value. The labourer produces, not for himself, but for capital. It no longer suffices, therefore, that he should simply produce. He must produce surplus-value. That labourer alone is productive, who produces surplus-value for the capitalist, and thus works for the self-expansion of capital.”

“The production of absolute surplus-value turns exclusively upon the length of the working-day; the production of relative surplus-value, revolutionises out and out the technical processes of labour, and the composition of society. It therefore pre-supposes a specific mode, the capitalist mode of production, a mode which, along with its methods, means, and conditions, arises and develops itself spontaneously on the foundation afforded by the formal subjection of labour to capital. In the course of this development, the formal subjection is replaced by the real subjection of labour to capital.”

“Assuming that labour-power is paid for at its value, we are confronted by this alternative: given the productiveness of labour and its normal intensity, the rate of surplus-value can be raised only by the actual prolongation of the working-day; on the other hand, given the length of the working-day, that rise can be effected only by a change in the relative magnitudes of the components of the working-day, viz., necessary labour and surplus-labour; a change which, if the wages are not to fall below the value of labour-power, presupposes a change either in the productiveness or in the intensity of the labour.”

“Bourgeois economists instinctively saw, and rightly so, that it is very dangerous to stir too deeply the burning question of the origin of surplus-value.”

“Capital, therefore, is not only, as Adam Smith says, the command over labor. It is essentially the command over unpaid labor. All surplus-value, whatever particular form (profit, interest, or rent), it may subsequently crystallize into, is in substance the materialization of unpaid labor. The secret of the self-expansion of capital resolves itself into having the disposal of a definite quantity of other people's unpaid labor.”

Please download and read the text via the following link:

Capital V1, C16, 17, 18, Absolute and Relative Surplus Value (9197 words)

Further reading:

Capital V 1, C19, 20 and 21, Wages (7291 words)

Machinery

Marx’s Capital Volume 1, Part 7b

Machinery

Marx begins this great chapter on “Machinery and Modern Industry” (download linked below) by developing the idea of division of labour in manufacture, to the division of processes among machines.

“A real machinery system, however, does not take the place of these independent machines, until the subject of labour goes through a connected series of detail processes, that are carried out by a chain of machines of various kinds, the one supplementing the other. Here we have again the co-operation by division of labour that characterises Manufacture; only now, it is a combination of detail machines.”

“As soon as a machine executes, without man's help, all the movements requisite to elaborate the raw material, needing only attendance from him, we have an automatic system of machinery, and one that is susceptible of constant improvement in its details.”

“Modern Industry had therefore itself to take in hand the machine, its characteristic instrument of production, and to construct machines by machines. It was not till it did this, that it built up for itself a fitting technical foundation, and stood on its own feet. Machinery, simultaneously with the increasing use of it, in the first decades of this century, appropriated, by degrees, the fabrication of machines proper. But it was only during the decade preceding 1866, that the construction of railways and ocean steamers on a stupendous scale called into existence the cyclopean machines now employed in the construction of prime movers.”

“Modern Industry raises the productiveness of labour to an extraordinary degree, [but] it is by no means equally clear, that this increased productive force is not, on the other hand, purchased by an increased expenditure of labour. Machinery, like every other component of constant capital, creates no new value, but yields up its own value to the product that it serves to beget.”

The last paragraph of Section 3 is one of the most memorable and shocking in the whole of Capital, Volume 1, and the long last paragraph of Section 4 is a denunciation of the horrors of the factory system.

Section 5 shows the brutal effect of machinery on the working class from the beginning of machine-working, which effects have been felt all along and still are felt today, two centuries after the “industrial revolution”. Marx was an eye-witness to a great expansion of this system and a true witness of its terrible consequences for the working class.

Please download and read the text via the following link:

Capital V1, C15, Machinery and Modern Industry (13333 words)

Further reading:

Capital V1, C14, Division of Labour and Manufacture (15258 words)

Capital V1, C11, 12, 13, SV - Absolute, Relative, Co-operation (14801 words)

Division of Labour

Marx’s Capital Volume 1, Part 7a

Division of Labour

Karl Marx makes use of the original distinction between Manufacture, meaning organised co-operation of many workers in a single workshop, and Industrial Production, which is the same, but with powered machinery. In modern usage, this distinction is not always clear. So, Marx begins this chapter thus:

“That co-operation which is based on division of labour, assumes its typical form in manufacture, and is the prevalent characteristic form of the capitalist process of production throughout the manufacturing period properly so called. That period, roughly speaking, extends from the middle of the 16th to the last third of the 18th century.”

The rest of Section 1 of this chapter is a description of division of labour in the early form of capitalism: Manufacture.

Then, in Section 2, Marx describes the effect on an individual or “detail labourer”, and on production, as a consequence of division of labour.

In Section 3, Marx looks at the gain that is made when serial production can be achieved, as opposed to batch or individual piece production.

“The different detail processes, which were successive in time, have become simultaneous, go on side by side in space. Hence, production of a greater quantum of finished commodities in a given time. [11] This simultaneity, it is true, is due to the general co-operative form of the process as a whole; but Manufacture not only finds the conditions for co-operation ready to hand, it also, to some extent, creates them by the sub-division of handicraft labour. On the other hand, it accomplishes this social organisation of the labour-process only by riveting each labourer to a single fractional detail.”

In Section 4, Marx compares division of labour in a factory, with division of labour in society.

Section 5 is a readable essay on division of labour as treated by the bourgeois Political Economists, including Adam Smith.

In short, this is another chapter of “Capital” that you can conquer without difficulty.

Image: Walter Crane was a 19^th-century artist who illustrated many socialist pamphlets. This work was done for May Day, the Workers’ Day, in 1895.

Please download and read the text via the following link:

Capital V1, C14, Division of Labour and Manufacture (15258 words)

Further reading:

Capital V1, C15, Machinery and Modern Industry (13333 words)

Capital V1, C11, 12, 13, SV - Absolute, Relative, Co-operation (14801 words)

Co-operation

Marx’s Capital Volume 1, Part 7

Co-operation

Chapters 11, 12 and 13 of Capital, Volume 1 (download linked below) which follow the enormous Chapter 10, are short, and require little introduction, because they are straightforward.

They are plain enough to provide plenty of material for study-circle discussion, especially if there are people with work-experience present.

Note that the co-operation Marx writes about here is co-operation in general, whereby people work together under a capitalist. It is not about "co-ops" as such.

The following two excerpts demonstrate how well Karl Marx understood the workplace.

Rate and Mass of Surplus Value

“Within the process of production, capital acquired the command over labour, i.e., over functioning labour-power or the labourer himself. Personified capital, the capitalist takes care that the labourer does his work regularly and with the proper degree of intensity.

“Capital further developed into a coercive relation, which compels the working-class to do more work than the narrow round of its own life wants prescribes. As a producer of the activity of others, as a pumper-out of surplus labour and exploiter of labour-power, it surpasses in energy, disregard of bounds, recklessness and efficiency, all earlier systems of production based on directly compulsory labour.

“At first, capital subordinates labour on the basis of the technical conditions in which it historically finds it. It does not, therefore, change immediately the mode of production. The production of surplus value — in the form hitherto considered by us — by means of simple extension of the working day, proved, therefore, to be independent of any change in the mode of production itself. It was not less active in the old-fashioned bakeries than in the modern cotton factories.”

Co-operation

“When numerous labourers work together side by side, whether in one and the same process, or in different but connected processes, they are said to co-operate.”

“By the co-operation of numerous wage-labourers, the sway of capital develops into a requisite for carrying on the labour-process itself, into a real requisite of production. That a capitalist should command on the field of production, is now as indispensable as that a general should command on the field of battle.”

“The directing motive, the end and aim of capitalist production, is to extract the greatest possible amount of surplus-value, [14] and consequently to exploit labour-power to the greatest possible extent. As the number of the co-operating labourers increases, so too does their resistance to the domination of capital, and with it, the necessity for capital to overcome this resistance by counterpressure. The control exercised by the capitalist is not only a special function, due to the nature of the social labour-process, and peculiar to that process, but it is, at the same time, a function of the exploitation of a social labour-process, and is consequently rooted in the unavoidable antagonism between the exploiter and the living and labouring raw material he exploits.”

Please download and read the text via the following link:

Capital V1, C11, 12, 13, SV - Absolute, Relative, Co-operation (14801 words)

Further reading:

Capital V1, C14, Division of Labour and Manufacture (15258 words)

Capital V1, C15, Machinery and Modern Industry (13333 words)