Precis Of Das Kapital Essay, Research Paper
Introduction: Karl Marx: the political economist, revolutionary, and the philosopher, was one of themost influential thinkers of the nineteenth century. Few men have caused such heated debate,manifest through the continued arguments of pro and anticommunists, as he has done. Notwithstanding this element of charisma through controversy, Marx teachings are essential fora comprehensive understanding of capitalism. The keystone of Marx theory is formulated in his work, Capital: Volume One. Thepurpose of the book is to unmask the capitalist mode of production for all to see. That is, froman objective position, Marx critically analyses the capitalist system. It was neither written forthe proletariat nor the capitalists. It was written quite simply for humans, who by nature arerational creatures. His hope was that this work would educate humanity on the conditions ofcapitalism so that we could see that this system would eventually necessarily self-destruct. Thefollowing pages attempt to lay out the logic of Capital: Volume One, and in so doing, suggest theimplications thereof on societies wrought by the capitalist mode of production. Pr cis of Capital: Volume One: Scientific, logical discourse must begin with definitions and axioms. Since Marx investigation of capitalism was intended to be objective and logical, he quite accordingly beganwith exposition of the key aspects of the capitalist system. The first chapter of the book is dedicated to the commodity. Marx defines a commodityas . . . an external object, a thing which through its qualities satisfies human needs of whateverkind. Because we live in a capitalist society, when we walk through the shopping mall, all wesee on the shelves are commodities. According to our current standards, as we live in acapitalist economy, . . . wealth [of our society] appears as an immense collection ofcommodities . They are commodities because they satisfy our needs necessary or otherwise. Commodities have a twofold nature, namely: their use-value (or substance of value) andexchange-value (or magnitude of value). The utility or usefulness of an object, which is conditioned by its physical properties, isits use-value. For instance, in its form as a properly functioning computer, my computer has use-value. It aids me in communicating with colleagues and writing term papers. If it were notfunctioning properly, however, it would serve no use-value other than perhaps a decoration inmy den. Therefore, the use-value of an object can only be realized through its use orconsumption and accordingly, it is expressed in qualitative terms. The exchange-value of acommodity is determined by the proportion of which its use-value exchanges for othercommodities use-values. That is to say, based on their respective use-values, how many of thecommodity x would I exchange for commodity y? The notion of exchange-value is therefore aquantitative expression. Having defined use-value and exchange-value, Marx explains what is meant by value. What is/has value? Value is expressed in terms of the amount of socially necessary labour-timeembodied in a given commodity, through its manufacture. The duration of the labour-time(hours, days, weeks, etc.) embodied in a given commodity determines its exchange-value, andhence its value. As exchange-values [hence, value], all commodities are merely definitequantities of congealed labour-time. Thus, if twenty hours of socially necessary labour-timewas spent making commodity x, but only 10 hours was spent on commodity y, then commodity xhas twice as much value embodied in it as commodity y. In this case, it is clear that we wouldnot exchange one x for one y. Now we may ask ourselves, Can a commodity have a use-value while not having anexchange-value? The answer is to the affirmative. If a thing is useful, yet contains noexpended labour-time, it has a use-value without an exchange-value. Elements of nature such asair, water and the sun are examples of this. Their usefulness is clear to us, yet we do not place aprice on them for the purpose of sale on the market. Another way for a thing to have a use-value but not an exchange-value is if someone creates the object for the purpose of his own use. That is, if I craft a chair for myself, it has my labour-time embodied in it and it has utility to me. However, my intention is not to market the item it is for my own use, and intended to be assuch. Lastly, a thing could be produced with labour-time but be considered useless. Thus, thething would not have any exchange-value. Marx says, If the thing is useless, so is the labourcontained in it. Following his discourse on useful labour, Marx exposes the twofold nature of labour. Qualitatively speaking, the labour must be useful, or productive in nature, which for Marx iscalled the substance of value . Also, the labour must have been expended over a definiteperiod of time, which is expressed in quantitative terms. This aspect he calls the measure ofvalue . Value is expressed solely on the basis of how much labour-time is expended during itsproduction. The creation of commodities in terms of use-value, requires the combination of twoelements. On the one hand, they need raw materials, and on the other hand they need labour toproduce them. Hence, man produces commodities from what nature provides. As William Pettystates, . . . labour is the father of material wealth, the earth is its mother. All labour in commodity production has a definite aim. For instance, the chair makerexpends his labour power for the purpose of producing chairs. The blacksmith s goal is tofabricate shoes for horses. These examples of differing types and intentions of labour illustrateMarx social division of labour. [In a capitalist society] of commodity producers, thisqualitative difference between the useful forms of labour which are carried on independently andprivately by individual producers develops into a complex system, a social division of labour. The tailor and the weaver must combine their respective, specific, forms of labour (and theircorresponding ends) to make a coat, for example. The dual nature of the commodity provides that all commodities come into the world intwo differing aspects. On the one hand, they are objects of utility, in the form of use-values. This is their natural form. On the other hand, since human labour power is embodied in themthrough production, they are bearers of value. This is their value form. In order for us to determine the exchange-value for a given commodity, we mustcompare it to another commodity. For example, x amount of commodity A is worth y amount ofcommodity B. This is the simple or accidental form of value. The first commodity plays an active role, the second a passive one. The value of the first commodity is represented as relative value, in other words, the commodity is in the relative form of value. The second commodity fulfils the function equivalent, in other words it is in the equivalent form. The form of value can be expressed in expanded form such that: x amount of commodity A isequal to y amount of commodity B, or z amount of commodity C. Hence, commodity x confrontsthe two other commodities in terms of their values as equivalents. Ultimately, a particular commodity, namely gold, will serve as a universal expression ofvalue. This . . . specific kind of commodity with whose natural form the equivalent form issocially interwoven now becomes the money commodity, or serves as money. Thus, themoney form can be expressed as: x amount of commodity A is equal to y amount of gold. Theonly reason that gold can assume this important role in the system of commodity exchange, isbecause it had previously confronted other commodities as a commodity. The owners of commodities are responsible for the exchange of their respectivecommodities. Commodities do not decide to exchange themselves on the market. For theowner, his commodity has no use-value other than its ability to be exchanged. . . . for [theowner] its only direct use-value is as a bearer of exchange-value . . . At this point, Marx s discourse focusses on a more in-depth examination of money. Money performs two different functions. On the one hand it functions as the social incarnationof human labour. On the other hand, it is also the standard of price as a quantity of metal with afixed weight. The incorporation of the money commodity is now essential for the process ofcommodity exchange, through its function as a universal standard of value. Instead, moreover,of exchanging one commodity for another, owners of commodities began to exchange theirproducts for money in order to buy other commodities. That is, instead of previous formula forexchange illustrated as Commodity-Commodity, the formula became Commodity-Money-Commodity, or C-M-C. The first part of the formula, C-M represents the commodity s ownerselling it, and the second part of the formula represents the exchange of the money for anothercommodity. In the process of circulation, money repeats this transition over and over again. Asmeans of circulation, money circulates commodities, which in and for themselves lack the powerof movement, and transfers them from hands in which they are non-use-values into hands inwhich they are use-values. Indeed, commodities enter and drop out of this process of circulation they are born and die in this respect. However, money continues in the process of circulation and, to use theaforementioned metaphor, holds a certain immortality therein. Money, . . ., as the medium ofcirculation, haunts the sphere of circulation and constantly moves around within it. This begsthe question then, how much money is there in circulation. The answer to this is that the amountof money existent in the sphere of circulation is dependent on the total price of all commoditiesthat are actively circulating/metamorphosising. What results is the equation: Quantity of MoneyFunctioning as the Circulating Medium = The sum of the Prices of the Commodities / Thenumber of Times Coins of the same Denomination Turn Over. This is termed the velocity ofcirculation . Therefore, . . . given the sum of the values of commodities, and the averagerapidity of their metamorphoses, the quantity of money or of the material of money in circulationdepends on its own value. Marx notion of hoarding illustrates money s function as a store of value. Hoardingoccurs in instances where, . . . commodities are [sold] not in order to buy commodities, but in order to replace their commodity-form by their money-form. Instead of being merely a way of mediating the metabolic process, this change of form becomes an end in itself. The drive for men to accumulate wealth thereafter became the basis for capitalist society. According to Marx, then, money serves the following functions: a measure of value; thefacilitator of circulation; and a store of value. In addition to this, he says that money serves as ameans of payment and as world money. In the first case, a person may create a line of credit as he purchases commodities on anI.O.U. basis. When he has the money, he pays off his debt. If, however, this person findshimself unable to repay his debt by accumulating enough money, the result is a monetary crisis. World money is used to settle debts with respect to international debt, in order tostabilize the economy on a global level. Ricardo says, World money serves as the universalmeans of payment, as the universal means of purchase, and as the absolute social materializationof wealth as such (universal wealth). At the completion of Part One, Marx has provided the definitions and axioms necessaryto the subsequent discourse involved in dissecting the capitalist system. The key elementsexposed hitherto are: the commodity; the process of exchange; and money, or the circulation ofcommodities. Part Two begins with examining the transformation of money into capital. Previously,we followed Marx formula for the exchange of commodities as C-M-C. Since this formuladoesn t allow for the accumulation of wealth, which is paramount for the capitalist, a newformula must be adopted, namely: M-C-M. This formula yields not a new commodity, but a new money , as it were. The money owner begins the process of exchange with an amount of moneyfor which he exchanges a given commodity. Then he sells the commodity for a return of money. Now, we may ask ourselves why anyone would essentially exchange money for money. Certainly, there must be a motivation for the money owner. That motivation lies in the fact thatthe equation, once expanded one step further, is M-C-M’. Thus, the money owner makes aprofit, and hence his motivation for exchanging use-values at the first. The increment gained as a result of the transformation of M-C-M’ is what Marx calls surplus value . How then does money, as a commodity, essentially grow into a lager amountduring this process of exchange? Marx calls this the valorization of value . Now if the formula M-C-M’ can be performed with success once, it can be performedagain. It follows then that, if the money owner reinvests the valorized value (M’), the formulawould become M’-C-M”; and further, M”-C-M”’. Alas, money is multiplying rather quickly! Indeed, the money owner is delighted as this process of exchange occurs again and again, all thewhile accumulating wealth, and by virtue of such, becoming a capitalist. As the bearer of this movement, the possessor of money becomes a capitalist. His person, or rather his pocket, is the point from which the money starts, and to which it returns. The objective content in the circulation we have been discussing the valorization of value is his subjective purpose, and it is only in so far as the appropriation of ever more wealth in the abstract is the sole driving force behind his operations that the functions as a capitalist, i.e. as capital personified and endowed with consciousness and a will. Use-values must therefore never be treated as the immediate aim of the capitalist; nor must the profit on any single transaction His aim is rather the unceasing movement of profit-making. It should be noted that there is a distinction between what we refer to as a miser, and a capitalist. The former, who operates his affairs according to M-C-M’, simply removes the incrementgained, through the valorization of his money, from the sphere of circulation. The latter on theother hand, reinvests his capital back into the sphere of circulation, so that it may return again invalorized form. It would seem curious that the capitalist is able to make his money grow in this fashion,since it appears as though this new value simply magically appears. We ask ourselves how it isthat the capitalist s money can valorize itself in such a way. . . . the money-owner must be lucky enough to find within the sphere of circulation, on the market, a commodity whose use-value possesses the peculiar property of being a source of value, whose actual consumption is therefore itself an objectification of labour, hence a creation of value. The possessor of money does find such a special commodity on the market: the capacity for labour, in other words labour-power. The capitalist, when he exchanges the original sum of money at the first, exchanges it for thepeculiar commodity of labour-power. This commodity is peculiar because it has the capabilityof actually producing value through its consumption by its purchaser. In order to abide by the laws of commodity exchange of which the capitalist systemoperates on, certain conditions must be present for the capitalist to potentially purchase thiscommodity. Firstly, the owner of the labour-power must offer it as purchasable on the market.Secondly, he must do this of his own accord, (as he is the owner of his commodity), and for adefinite period of time, since offering it indefinitely for a one-time price would make him aslave. After the sale of his commodity, and since he has no control of the means of production,as he is not using his labour-power for his own production of commodities, our friend becomes aworker, and by definition of such, a few key conditions become manifest. The commodity thatwas sold, in the form of labour-power, was alienated in terms of its use-value to the previousowner. Thus the capitalist, as the current owner of this commodity, can justly consume ithowever he pleases. For example, if I purchase a pencil, I am not required to use it strictly forthe purpose of writing I can use it as a hair ornament if I choose. In addition, the worker nowhas a new commodity with which he can purchase the commodities necessary for his (and hisfamily s) subsistence. However, once he consumes his food (and pays his bills) he has to returnto the market and sell another unit of his labour-power. Consequently, this process must beongoing for the worker so that he may survive. Hereafter, the process of the purchase and sale of labour-power, and hence the capitalist-worker relationship, is essentially self-perpetuating, since the capitalist constantly needs hisspecial commodity, in the form of the worker, for the purpose of creating value through itsconsumption; while the worker needs a means to survive. What is key is that the exchange-value of labour power, as a commodity, is determinedby the amount of socially acceptable labour-time embodied in it through its production. Theproduction of labour-time involves the worker eating, drinking, and sleeping under a roof. Therefore, the value of labour-power is determined by the cost of living for the worker and hisfamily, as his offspring will become the future work force. If more labour-time is embodied in x unit of labour-power than y unit of labour-power,then the former is more valuable. Educated labour-power embodies more labour-time than noneducated labour-power since, as Marx observes: In order to modify the general nature of the human organism in such a way that it acquires skill and dexterity in a given branch of industry, and becomes labour-power of a developed and specific kind, a special education or training is needed, and this in turn costs an equivalent in commodities of a greater or lesser amount. The costs of education vary according to the degree of complexity of the labour-power required. The expenses (exceedingly small in the case of ordinary labour-power) form a part of the total value spent in producing it. This specialized type of labour-power, therefore, is more valuable than non specialized labour-power. Part Three deals with the creation of absolute surplus-value through the labour process. The simple elements of the labour process are (1) purposeful activity, which is work itself, (2)the object on which that work is performed, and (3) the instruments of that work. Everyprocess of labour requires these three constituent parts. Thus, the labour process is defined asthe . . . purposeful activity aimed a the production of use-values. Since the capitalist purchasesthese three forms of commodities for the labour process, and therefore the owner of the means ofproduction, he also owns the product resulting from the process and the value created therein. The capitalist has two key objectives. The first, is that he strives to produce commoditieswhich are intended to be sold on the market, that is, exchange-value. Secondly, he needs toproduce surplus-value, that is he must . . . produce a commodity greater in value than the sumof the values of the commodities used to produce it, namely the means of production and the