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Classical Sociological Theory and Foundations of American Sociology: Ch. 19: The Transformation of the Value or Price of Labor Power into Wages

Classical Sociological Theory and Foundations of American Sociology
Ch. 19: The Transformation of the Value or Price of Labor Power into Wages
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table of contents
  1. Title Page
  2. Copyright
  3. Table Of Contents
  4. Introduction
    1. Aims and Goals
    2. Organization Overview
      1. Outline of the Textbook
      2. Translating Passages
      3. Modernizing the Text
      4. Some Useful History
        1. Ten Things Marx, Weber, and Durkheim Took for Granted about the History of the World that you Might Want to Read More About
      5. Suggested Further Reading
      6. Timelines (Marx, Weber, and Durkheim)
      7. Major Themes
  5. Downloads
  6. Marx and Engels
    1. Biography of Marx by F. Engels (1868)
    2. Economic and Philosophic Manuscripts of 1844
      1. Introduction
    3. Marx on Wages
      1. Introduction
      2. Ch. 19: The Transformation of the Value or Price of Labor Power into Wages
    4. Marx on Wage Labor and Capital
      1. Introduction
      2. Wage Labor and Capital
      3. The Nature and Growth of Capital
      4. Relation of Wage-Labor to Capital
    5. Value, Price and Profit
      1. Introduction
      2. Value and Labor
      3. The Different Parts into Which Surplus Value is Decomposed
      4. Attempts at Raising Wages
      5. The Struggle Between Capital and Labor and Its Results
    6. Capital, part 1
      1. Introduction
      2. Part I: Commodities
      3. Part II: Transformation of Money Into Capital
      4. Part III: The Production of Absolute Surplus-Value
    7. Capital, part 2
      1. Introduction
      2. Part VII: The Accumulation of Capital
      3. Part VIII: Primitive Accumulation
    8. Eighteenth Brumaire
      1. Introduction
      2. Opening Passages
      3. Part Two
      4. Part Three
      5. Part Four
      6. Part Five
      7. Part Six
      8. Part Seven
    9. Principles of Communism
      1. Introduction
      2. Principles of Communism
    10. The Duchess of Sutherland and Slavery
      1. Introduction
      2. The Duchess of Sutherland and Slavery
    11. Revolution is Coming
      1. Introduction
      2. Marx's Speech on the Toast to the Proletarians of Europe
    12. The Communist Manifesto
      1. Introduction
      2. Bourgeois and Proletarians
      3. Proletarians and Communists
    13. Concepts/Dictionary
  7. Durkheim
    1. Biography of Durkheim
    2. Rules of Method (1895)
      1. Introduction
      2. Part I: The Rules of Sociological Method
        1. Introduction
        2. What is a Social Fact?
      3. Part II
        1. Chapter 2: Rules for the Observation of Social Facts
          1. Section 1. Treat Social Facts as Things
          2. Section 2. Guidelines for Sociologists
          3. Section 3. Rules on the Distinction Between Normal and Pathological
    3. Division of Labor, Introduction
      1. Introduction
      2. Preface
      3. Book One
        1. Ch. 1: The Method for Determining this Function
        2. Ch. 2: Mechanical Solidarity Through Likeness
        3. Ch. 3: Organic Solidarity Due to the Division of Labor
        4. Ch. 4: Further Proof of the Preceding
        5. Ch. 5: Progressive Preponderance of Organic Solidarity
        6. Ch. 6: Progressive Preponderance cont.
        7. Ch. 7: Organic Solidarity and Contractual Solidarity
      4. Book 2
        1. Ch. 1: The Progress of the Division of Labor and of Happiness
        2. Ch. 2: The Causes
        3. Ch 3. Secondary Factors--Progressive Indeterminancy
        4. Ch. 4: Secondary Factors--Heredity
        5. Ch. 5: Consequences of the Preceding
      5. Book 3
        1. Ch. 1: The Anomic Division of Labor
        2. Ch. 2: The Forced Division of Labor
        3. Ch. 3: Another Abnormal Form
    4. Division of Labor, Book 1
      1. Introduction
      2. Chapter 3: Organic Solidarity Due to the Division of Labor
      3. Chapter 4: Further Proof the Preceding
      4. Chapter 5: Progressive Preponderance of Organic Solidarity; Its Consequences
      5. Chapter 6: Progressive Preponderance of Organic Solidarity, cont.
    5. Division of Labor, Book 2
      1. Introduction
      2. Chapter 2: The Causes
      3. Chapter 5: Consequences
    6. Division of Labor, Book 3
      1. Introduction
      2. Chapter 1: The Anomic Division of Labor
      3. Chapter 2: The Forced Division of Labor
      4. Conclusion
    7. Le Suicide (1897) - Introduction/Book 2
      1. Introduction
      2. Book Two: Social Causes and Social Types
        1. Ch. 1: Method of Determining Them
        2. Ch. 2: Egotistical Suicide
        3. Ch. 3: Egotistical Suicide, cont.
        4. Ch. 4: Altruistic Suicide
        5. Ch. 5: Anomic Suicide
    8. Education and Sociology (1922)
      1. Introduction
      2. The Nature and Role of Education
        1. Part 1: Different Definitions of Education
        2. Part 2: Defining Education
        3. Part 3: The Social Character of Education
        4. Part 4: The Role of the State in the Matter of Education
        5. Part 5: The Power of Education and the Means of its Influence
    9. Elementary Forms of Religious Life (1912)
      1. Introduction
      2. Part 1: The Sociological Study of Religion
      3. Part 2: Theories of Knowledge
    10. EXTRA: Review of Année Sociologique (1898) article
    11. EXTRA: Review of Suicide by Havelock Ellis
    12. Concepts/Dictionary
  8. Weber
    1. Biography of Weber
    2. Methodological Foundations of Sociology (1921)
      1. Introduction
      2. Methodological Foundations of Sociology
        1. Point 1: Meanings are Empirically Situated
        2. Point 2: We cannot always find the intentions of the actors
        3. Point 3: The goal of interpretation is to generate evidence about the world, and we can do this both rationally and empathetically
        4. Point 4: Meaningless actions are still important insofar they impact social actions
        5. Point 5: Sociological understaning is explanatory
        6. Point 6: Sociological understanding is hypothetical
        7. Point 7: Motives of actions are crucial to sociological interpretation because they are related to causality
        8. Point 8: Meaningless actions are not unimportant, but they are not sociological facts
        9. Point 9: Individuals...are the intelligible performers of meaningful actions
        10. Point 10: Sociology is distinct from psychology
        11. Point 11: Sociology is distinct from the discipline of history
    3. PESOC, part 1
      1. Introduction
      2. Part 1: The Problem
        1. Chapter 1. Religious Belief and Social Layering
        2. Chapter 2. The "Spirit" of Capitalism
        3. Chapter 3. Understanding Luther's Conception of Beruf (Calling)
    4. PESOC, part 2
      1. Introduction
      2. Part 2: The Vocational Ethic of the Ascetic Braches of Protestantism
        1. Chapter 4. The Religious Foundations of Worldly Ascetism
        2. Chapter 5. Ascetism and the Spirit of Capitalism
    5. The Development of Commerce
      1. Introduction
      2. Chapter 14: Points of Departure in the Development of Commerce
      3. Chapter 15: Technical Requisites for the Transportation of Goods
      4. Chapter 16: Forms of Organization of Transportation and Commerce
      5. Chapter 17: Forms of Commercial Enterprise
      6. Chapter 21: Interests in the Pre-Capitalistic Period
    6. The Rational State
      1. Introduction
      2. The Rational State
        1. A. The State Itself; Law and Officialdom
        2. B. The Economic Policy of the Rational State
        3. C. Mercantilism
    7. The Evolution of the Capitalistic Spirit
      1. Introduction
      2. The Evolution of the Capitalistic Spirit
    8. Politics as a Vocation
      1. Introduction
      2. Lecture
    9. Bureaucracy
      1. Introduction
      2. Part 3, Chapter 6, Section 7: Bureaucracy
    10. CSP
      1. Introduction
      2. Introduction on Power
      3. Distribution of Power within a Gemeinschaft Community
        1. Classes
        2. Status Groups (Stände)
        3. Parties
    11. Concepts/Dictionary
  9. Early American Sociology
    1. Biography of Early American Sociologists
      1. William Graham Sumner
      2. Lester Frank Ward
      3. Albion Woodbury Small
      4. Franklin Henry Giddings
      5. Thorstein Veblen
      6. Charlotte Perkinds Gilman
      7. Jane Addams
      8. Robert Ezra Park
      9. Charles Horton Cooley
      10. Edward Alsworth Ross
      11. W.E.B. Du Bois
      12. Charles Abram Ellwood
    2. Comparison of Spencer and Ward by Barnes (1919)
      1. Introduction
      2. The Sociological View of the State
        1. Part I: Sumner, General Characteristics of His Sociological Thought
        2. Part 2: Ward; General Characteristics of His Sociological System
    3. Thorstein Veblen, on Labor(1898)
      1. Introduction
      2. The Instinct of Wokrmanship and the Irksomeness of Labor
    4. Charlotte Perkins Gilman, Women and Economics (1898)
      1. Introduction
      2. Preface
      3. Chapter 1
      4. Chapter 15
    5. Du Bois on The Study of Social Problems (1898)
      1. Introduction
      2. The Study of Social Problems
        1. Development of the Problems
        2. The Present Problems
        3. The Work Already Accomplished
        4. A Program of Future Study
    6. Jane Addams, “Trade Unions and Public Duty” (1899)
      1. Introduction
      2. Trades Unions
    7. Edward A. Ross on Social Control (1900)
      1. Introduction
      2. Social Control
    8. Charles A. Ellwood on Revolution (1905)
      1. Introduction
      2. Revolutions
    9. Charles Horton Cooley, “Social Consciousness” (1907)
      1. Introduction
      2. Social Mind in General
      3. Social and Individual Aspects of Consciousness
      4. Social Will
    10. Lester Ward, “Social Classes” (1908)
      1. Introduction
      2. Social Classes and Inequalities
    11. Franklin H. Giddings on Theory and Public Policy (1911)
      1. Introduction
      2. Theory and Public Policy
        1. Evolution is Simple or Compound
        2. Can war then be outlawed and generally prevented?
    12. Small on the Sociological Point of View (1920)
      1. Introduction
      2. The Sociologists' Point of View
        1. "Why need we study society?"
  10. Creative Commons License
  11. Recommended Citations
  12. Versioning

Chapter 19. The Transformation of the Value or Price of Labor Power into Wages

If we look only on the surface of bourgeois society, the wages of the laborer seem to be the remuneration of labor – so much money paid for so much labor. Labor is then treated as a commodity, the market-price of which rises and falls above or below its value.

But what is this value? Value represents the social labor expended in the production of a commodity. And how is the magnitude of value of a commodity measured? By the quantity of labor that it contains. How then do we determine, for example, the value of twelve hours’ labor? By the twelve hours’ labor that it contains, which is evidently absurd.

In order to be taken to market, and sold as a commodity, the labor must, at all events, have been in existence beforehand. But if the laborer could endow it with a material existence, separate from and independent of herself, she would sell a commodity and not labor.

That which directly confronts the capitalist on the market is not labor, but the laborer. What she sells is her labor-power. As soon as she begins to exert her labor-power, to labor, as soon as her labor exists, this labor has already ceased to belong to her, and can no longer be sold by her. Labor is the substance and measure of value, but itself has no value. The expression, value of labor, is an inaccurate expression which has its source in the apparent forms of the relations of production.

Having made this error, classical political economy proceeded to inquire how the price of labor was determined. It recognized that in the case of labor, as in the case of every other commodity, the relation between supply and demand explained only the oscillations of the market price above or below a certain mean. As soon as supply and demand balance each other, the changes in the price which they had occasioned cease, but the whole effect of supply and demand also ceases at the same point. If, when they are in equilibrium, the price of labor no longer depends upon their influence, upon what then does it depend? The price of labor, like the price of every other commodity, can only be its value expressed in money, and this value, political economy determined in the last analysis, by the value of the means of subsistence necessary for the support and reproduction of the laborer. Without suspecting it, political economy thus substituted for the ostensible subject of its researches, the value of labor, the value of labor-power, a power which exists only in the person of the laborer, and is distinct from its function, labor, just as a machine is the distance from its operations. But classical political economy remained unconscious of this confusion.

The Wage-Form Conceals the Real Relation between Capital and Labor’

According to all the appearances, indeed, what the capitalist pays is the value of the utility that the laborer gives him, the value of labor. Moreover, the laborer is not paid until she has delivered her labor. Now, in its function as means of payment money only realized subsequently the value or price of the article delivered – in this case, the value or price of the labor performed. Nothing but the experience of practical life brings to light the twofold utility of labor – the property of satisfying a need, which it has in common with all commodities, and the property of creating value which differentiates it from all other commodities and makes it impossible for it, as the value-creating element, to have any value of its own.

Take a day of 8 hours producing a value of $160, half of which is equal to the daily value of labor-power. By confounding the value of the power with the value of its function, with the labor that it performs, we get this formula: 8 hours’ labor has a value of $80; and we thus reach the absurd result that labor which creates a value of $160 is worth only $80. But in a capitalist society this is not apparent. There, the value of $80 for the production of which only four hours are requisite, appears as the value of a full day’s labor. By receiving a wage of $80 a day, the laborer appears to receive all the value to which her labor entitles her, and it is precisely on this account that the excess of the value of her product over the value of her wage takes the form of a surplus value of $80 created by capital and not by labor.

The wage-form, or direct payment of labor, therefore, extinguishes every trace of the division of the working day into necessary labor and surplus labor – into paid labor and unpaid labor – so that all the labor of the free laborer is deemed to be paid labor. In the corvée,[1] the labor of the serve for himself and his compulsory labor for his lord are clearly distinct from each other, being performed in different places. In the system of slavery, even that part of the day in which the slave is only replacing the value of his own means of subsistence, in which, therefore, he really works for himself, seems to be labor for the owner. All his labor wears the appearance of unpaid labor. In slavery, the property relation conceals the labor of the slave for himself. In the wage-system, the money relation conceals the gratuitous labor of the wage-worker for the capitalist.

It is now possible to understand the immense practical importance of this change of form which makes the remuneration of labor-power appear as the wages of labor – the price of labor-power as the price of its function. The apparent form renders the real relation between capital and labor invisible. From it flow all the juridical notions of the wage-laborer and the capitalist, all the mystifications of capitalist production, all the illusions regarding liberty, all the justifications rhetoric of ordinary political economy.

Questions

  1. What does it mean to say that wages are the price of labor-power, not labor?
  2. Why is it necessary to point out that political economy has confused labor-power with labor? How is Marx’s insight here a sociological one? How does the system of “wages” work to conceal the social relationship between capital and labor?
  3. Have you ever wondered why, when you go to work, you get paid after the completion of the work (sometimes by weeks or even a month)? Can you think of situations where the laborer is paid in advance? What are the social differences between these types of labor? What does this say about social relations and power in capitalist society?

Concepts

Wages

Wage-Form

Labor Power


  1. In feudal times, serfs were often expected to work one day a week or one day out of three for the lord. This day was called the corvée. Marx is making a case that things haven’t changed much for “free” laborers, just harder to see.  ↵

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Marx on Wage Labor and Capital
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Copyright © 2019 by Allison Hurst. Classical Sociological Theory and Foundations of American Sociology by Allison Hurst is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License, except where otherwise noted.
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