Notes
Part 3. The Production of Absolute Surplus-Value
The capitalist buys labor-power in order to use it. The purchaser of labor-power consumes it by setting the seller of it to work. What the capitalist sets the laborer to produce, is a particular use-value, a specified article.
Let us now return to our would-be capitalist, Mr. Knight. We left him just after he had purchased, in the open market, all the necessary factors of the labor process; its objective factors, the means of production, as well as its subjective factor, labor-power. With the keen eye of an expert, he has selected the means of production and the kind of labor-power best adapted to his particular trade, in this case, the making of stuffed animals. He then proceeds to consume the commodity, the labor-power that he has just bought, by causing the laborer, the impersonation of that labor-power, to consume the means of production by his labor (that is, Hilda works the raw materials Mr. Knight has also bought, and uses the machines provided by him). Hilda, the worker, works under the control of the capitalist (Mr. Knight) to whom her labor belongs; the capitalist taking good care that the work is done in a proper manner, and that the means of production are used with intelligence, so that there is no unnecessary waste of raw material, and no wear and tear of the implements beyond what is necessarily caused by the work.
Secondly, the product is the property of the capitalist and not that of the laborer, its immediate producer.
If Mr. Knight pays Hilda $50 a day but she produces commodities worth ten times that amount, only Mr. Knight owns that extra value. Hilda might not ever be able to afford to buy the things she has produced.
By turning his money into commodities that serve as the material elements of a new product, and as factors in the labor-process, by incorporating living labor with their dead substance, the capitalist at the same time converts value, i.e., past, materialized, and dead labor into capital, into value big with value, a live monster that is fruitful and multiplies (see Capital)
The surplus-value generated in the process of production presents itself as a surplus, as the amount by which the value of the product exceeds the value of its constituent elements.
Try to follow the math here, but remember the crucial point: the capitalist appropriates the difference between the value produced by the worker and the exchange value of what is produced:
The capital C is made up of two components, one, the sum of money c laid out upon the means of production, and the other, the sum of money v expended upon the labor-power; c represents the portion that has become constant capital, and v the portion that has become variable capital. At first then, C = c + v: for example, if $500 is the capital advanced, its components may be such that the $500 = $410 for the cost of the sewing machine + $90 payment of wages to workers. When the process of production is finished, we get a commodity whose value = (c + v) + s, where s is the surplus-value; or taking our former figures, the value of this commodity may be ($400 + $90.) + $90 surplus value. The original capital has now changed from C to C’, from $500 to $590. The difference is a surplus-value of $90.
This sum of $90 or s expresses the absolute quantity of surplus-value produced. The relative quantity produced, or the increase percent of the variable capital, is determined by the ratio of the surplus-value to the variable capital, or is expressed by s/v. In our example this ratio is 90/90, which gives an increase of 100%. This relative increase in the value of the variable capital, or the relative magnitude of the surplus-value, I call, “The rate of surplus-value.”
During one part of the work day Hilda works to produce the value of her own subsistence (what she will be paid). This might be four hours. In four hours, she has made enough stuffed animals to cover the cost of her wages. But remember she hired herself out for the entire workday. If she worked four more hours, whatever value she produces during that time is what provides surplus value to the capitalist. That is how capital grows.
During the second period of the labor-process, that in which his labor is no longer necessary labor, the workman, it is true, labors, expends labor-power; but his labor, being no longer necessary labor, he creates no value for himself. He creates surplus-value which, for the capitalist, has all the charms of a creation out of nothing. This portion of the working day, I name surplus labor-time, and to the labor expended during that time, I give the name of surplus labor. The essential difference between the various economic forms of society, between, for instance, a society based on slave-labor, and one based on wage-labor, lies only in the mode in which this surplus labor is in each case extracted from the actual producer, the worker.
The rate of surplus-value is therefore an exact expression for the degree of exploitation of labor-power by capital, or of the laborer by the capitalist.
Capital is dead labor, that, vampire-like, only lives by sucking living labor, and lives the more, the more labor it sucks. The time during which the laborer works, is the time during which the capitalist consumes the labor-power he has purchased of him.
Questions
- Have you heard of “wage theft” or experienced it in a job yourself? Explain why Marx’s explanation of how capital grows is merely a larger phenomenon of this practice.
- How is the capitalist mode of production SIMILAR to and DIFFERENT from previous modes of production (slavery, feudalism) in terms of workers and the appropriation of the value they produce?
- What separates the capitalist from the worker?
- What differentiates money from capital?
- In the past, the working day was set at 12 hours. Workers organized to get the day set at 8 hours a day (by law, if you work more than 8 hours, you get paid overtime). Should we set the working day at 6 hours? What would be the consequences?
Concepts
Commodity Fetishism
Capital
Labor Power
Surplus Value (and rate of)
Exploitation