Wage Labor and Capital

KarlMarx

Wage Labour andCapital

Written:December1847;
Source:WageLabourandCapital,theoriginal1891pamphlet;;
FirstPublished:NeueRheinischeZeitung,April5-8and11,1849;
Transcription/Markup:ZodiacandBrianBaggins;
ProofedandcorrectedbyAlekBlain,2006,MarkHarris,2010..

1

IntroductiontoKarlMarx’sWage Labour andCapital(Engels)

ThispamphletfirstappearedintheformofaseriesofleadingarticlesintheNeueRheinischeZeitung,beginningonApril4th,1849.ThetextismadeupoffromlecturesdeliveredbyMarxbeforetheGermanWorkingmen’sClubofBrusselsin1847.Theserieswasnevercompleted.Thepromise “tobecontinued,” attheendoftheeditorialinNumber269ofthenewspaper,remainedunfulfilledinconsequenceoftheprecipitouseventsofthattime:theinvasionofHungarybytheRussians[TsaristtroopsinvadedHungaryin1849tokeeptheAustrianHapsburgdynastyinpower],andtheuprisingsinDresden,Iserlohn,Elberfeld,thePalatinate,andinBaden[SpontaneousuprisingsinGermanyinMay-July1849,supportingtheImperialConstitutionwhichwerecrushedinmid-July],whichledtothesuppressionofthepaperonMay19th,1849.AndamongthepapersleftbyMarxnomanuscriptofanycontinuationofthesearticleshasbeenfound.

“Wage-Labour andCapital” hasappearedasanindependentpublicationinseveraleditions,thelastofwhichwasissuedbytheSwissCo-operativePrintingAssociation,inHottingen-Zurich,in1884.Hitherto,theseveraleditionshavecontainedtheexactwordingoftheoriginalarticles.Butsinceatleast10,000copiesofthepresenteditionaretobecirculatedasapropagandatract,thequestionnecessarilyforceditselfuponme,wouldMarxhimself,underthesecircumstance,haveapprovedofanunalteredliteralreproductionoftheoriginal?

Marx,inthe’40s,hadnotyetcompletedhiscriticismofpoliticaleconomy.Thiswasnotdoneuntiltowardtheendofthefifties.Consequently,suchofhiswritingsaswerepublishedbeforethefirstinstallmentofhisCritiqueofPoliticalEconomywasfinished,deviateinsomepointsfromthosewrittenafter1859,andcontainexpressionsandwholesentenceswhich,viewedfromthestandpointofhislaterwritings,appearinexact,andevenincorrect.Now,itgoeswithoutsayingthatinordinaryeditions,intendedforthepublicingeneral,thisearlierstandpoint,asapartoftheintellectualdevelopmentoftheauthor,hasitsplace;thattheauthoraswellasthepublic,hasanindisputablerighttoanunalteredreprintoftheseolderwritings.Insuchacase,Iwouldnothavedreamedofchangingasinglewordinit.Butitisotherwisewhentheeditionisdestinedalmostexclusivelyforthepurposeofpropaganda.Insuchacase,Marxhimselfwouldunquestionablyhavebroughttheoldwork,datingfrom1849,intoharmonywithhisnewpointofview,andIfeelsurethatIamactinginhisspiritwhenIinsertinthiseditionthefewchangesandadditionswhicharenecessaryinordertoattainthisobjectinallessentialpoint.

Therefore,Isaytothereaderatonce:thispamphletisnotasMarxwroteitin1849,butapproximatelyasMarxwouldhavewrittenitin1891.Moreover,somanycopiesoftheoriginaltextareincirculation,thatthesewillsufficeuntilIcanpublishitagainunalteredinacompleteeditionofMarx’sworks,toappearatsomefuturetime.

Myalterationscentreaboutonepoint.Accordingtotheoriginalreading,theworkersellshislabourforwages,whichhereceivesfromthecapitalist;accordingtothepresenttext,hesellshislabour-power.Andforthischange,Imustrenderanexplanation:totheworkers,inorderthattheymayunderstandthatwearenotquibblingorword-juggling,butaredealingherewithoneofthemostimportantpointsinthewholerangeofpoliticaleconomy;tothebourgeois,inorderthattheymayconvincethemselveshowgreatlytheuneducatedworkers,whocanbeeasilymadetograspthemostdifficulteconomicanalyses,exceloursupercilious “cultured” folk,forwhomsuchticklishproblemsremaininsolubletheirwholelifelong.

Classicalpoliticaleconomy[1]borrowedfromtheindustrialpracticethecurrentnotionofthemanufacturer,thathebuysandpaysforthe labour ofhisemployees.Thisconceptionhadbeenquiteserviceableforthebusinesspurposesofthemanufacturer,hisbookkeepingandpricecalculation.Butnaivelycarriedoverintopoliticaleconomy,itthereproducedtrulywonderfulerrorsandconfusions.

Politicaleconomyfindsitanestablishedfactthatthepricesofallcommodities,amongthemthepriceofthecommoditywhichitcalls “labour,” continuallychange;thattheyriseandfallinconsequenceofthemostdiversecircumstances,whichoftenhavenoconnectionwhatsoeverwiththeproductionofthecommoditiesthemselves,sothatpricesappeartobedetermined,asarule,bypurechance.Assoon,therefore,aspoliticaleconomysteppedforthasascience,itwasoneofitsfirsttaskstosearchforthelawthathiditselfbehindthischance,whichapparentlydeterminedthepricesofcommodities,andwhichinrealitycontrolledthisverychance.Amongthepricesofcommodities,fluctuatingandoscillating,nowupward,nowdownward,thefixedcentralpointwassearchedforaroundwhichthesefluctuationsandoscillationsweretakingplace.Inshort,startingfromthepriceofcommodities,politicaleconomysoughtforthevalueofcommoditiesastheregulatinglaw,bymeansofwhichallpricefluctuationscouldbeexplained,andtowhichtheycouldallbereducedinthelastresort.

Andso,classicalpoliticaleconomyfoundthatthevalueofacommoditywasdeterminedbythe labour incorporatedinitandrequisitetoitsproduction.Withthisexplanation,itwassatisfied.Andwe,too,may,forthepresent,stopatthispoint.But,toavoidmisconceptions,Iwillremindthereaderthattodaythisexplanationhasbecomewhollyinadequate.Marxwasthefirsttoinvestigatethoroughlyintothevalue-formingqualityof labour andtodiscoverthatnotall labour whichisapparently,orevenreally,necessarytotheproductionofacommodity,impartsunderallcircumstancestothiscommodityamagnitudeofvaluecorrespondingtothequantityof labour usedup.If,therefore,wesaytodayinshort,witheconomistslikeRicardo,thatthevalueofacommodityisdeterminedbythe labour necessarytoitsproduction,wealwaysimplythereservationsandrestrictionsmadebyMarx.Thusmuchforourpresentpurpose;furtherinformationcanbefoundinMarx’sCritiqueofPoliticalEconomy,whichappearedin1859,andinthefirstvolumeofCapital.

But,assoonastheeconomistsappliedthisdeterminationofvalueby labour tothecommodity “labour”,theyfellfromonecontradictionintoanother.Howisthevalueof “labour” determined?Bythenecessary labour embodiedinit.Buthowmuch labour isembodiedinthe labour ofa labourerofadayaweek,amonth,ayear.If labour isthemeasureofallvalues,wecanexpressthe “valueof labour” onlyin labour.Butweknowabsolutelynothingaboutthevalueofanhour’s labour,ifallthatweknowaboutitisthatitisequaltoonehour’s labour.So,thereby,wehavenotadvancedonehair’sbreadthnearerourgoal;weareconstantlyturningaboutinacircle.

Classicaleconomics,therefore,essayedanotherturn.Itsaid:thevalueofacommodityisequaltoitscostofproduction.But,whatisthecostofproductionof “labour”?Inordertoanswerthisquestion,theeconomistsareforcedtostrainlogicjustalittle.Insteadofinvestigatingthecostofproductionof labour itself,which,unfortunately,cannotbeascertained,theynowinvestigatethecostofproductionofthe labourer.Andthislattercanbeascertained.Itchangesaccordingtotimeandcircumstances,butforagivenconditionofsociety,inagivenlocality,andinagivenbranchofproduction,it,too,isgiven,atleastwithinquitenarrowlimits.Welivetodayundertheregimeofcapitalistproduction,underwhichalargeandsteadilygrowingclassofthepopulationcanliveonlyontheconditionthatitworksfortheownersofthemeansofproduction–tools,machines,rawmaterials,andmeansofsubsistence–inreturnforwages.Onthebasisofthismodeofproduction,the labourer’scostofproductionconsistsofthesumofthemeansofsubsistence(ortheirpriceinmoney)whichontheaveragearerequisitetoenablehimtowork,tomaintaininhimthiscapacityforwork,andtoreplacehimathisdeparture,byreasonofage,sickness,ordeath,withanother labourer–thatistosay,topropagatetheworkingclassinrequirednumbers.

Letusassumethatthemoneypriceofthesemeansofsubsistenceaverages3shillingsaday.Our labourergets,therefore,adailywageof3shillingsfromhisemployer.Forthis,thecapitalistletshimwork,say,12hoursaday.Ourcapitalist,moreover,calculatessomewhatinthefollowingfashion:Letusassumethatour labourer(amachinist)hastomakeapartofamachinewhichhefinishesinoneday.Therawmaterial(ironandbrassinthenecessarypreparedform)costs20shillings.Theconsumptionofcoalbythesteam-engine,thewear-and-tearofthisengineitself,oftheturning-lathe,andoftheothertoolswithwhichour labourerworks,represent,foronedayandone labourer,avalueof1shilling.Thewagesforonedayare,accordingtoourassumption,3shillings.Thismakesatotalof24shillingsforourpieceofamachine.

But,thecapitalistcalculatesthat,onanaverage,hewillreceiveforitapriceof27shillingsfromhiscustomers,or3shillingsoverandabovehisoutlay.a

Whencedothey3shillingspocketedbythecapitalistcome?Accordingtotheassertionofclassicalpoliticaleconomy,commoditiesareinthelongrunsoldattheirvalues,thatis,theyaresoldatpriceswhichcorrespondtothenecessaryquantitiesof labour containedinthem.Theaveragepriceofourpartofamachine–27shillings–wouldthereforeequalitsvalue,i.e.,equaltheamountof labour embodiedinit.But,ofthese27shillings,21shillingswerevalueswerevaluesalreadyexistingbeforethemachinistbegantowork;20shillingswerecontainedintherawmaterial,1shillinginthefuelconsumedduringtheworkandinthemachinesandtoolsusedintheprocessandreducedintheirefficiencytothevalueofthisamount.Thereremains6shillings,whichhavebeenaddedtothevalueoftherawmaterial.But,accordingtothesuppositionofoureconomists,themselves,these6shillingscanariseonlyfromthe labour addedtotherawmaterialbythe labourer.His12hours’ labour hascreated,accordingtothis,anewvalueof6shillings.Therefore,thevalueofhis12hours’ labour wouldbeequivalentto6shillings.Sowehaveatlastdiscoveredwhatthe “valueof labour” is.

“Holdonthere!” criesourmachinist. “Sixshillings?ButIhavereceivedonly3shillings!Mycapitalistswearshighanddaythatthevalueofmy12hours’ labour isnomorethan3shillings,andifIweretodemand6,he’dlaughatme.Whatkindofastoryisthat?”

Ifbeforethiswegotwithourvalueof labour intoaviciouscircle,wenowsurelyhavedrivenstraightintoaninsolublecontradiction.Wesearchedforthevalueof labour,andwefoundmorethanwecanuse.Forthe labourer,thevalueofthe12hours’ labour is3shillings;forthecapitalist,itis6shillings,ofwhichhepaystheworkingman3shillingsaswages,andpocketstheremaining3shillinghimself.Accordingtothis, labour hasnotonebuttwovalues,and,moreover,twoverydifferentvalues!

Assoonaswereducethevalues,nowexpressedinmoney,to labour-time,thecontradictionbecomesevenmoreabsurd.Bythe12hours’ labour,anewvalueof6shillingsiscreated.Therefore,in6hours,thenewvaluecreatedequals3shilling–theamountwhichthe labourerreceivesfor12hours’ labour.For12hours’ labour,theworkingmanreceives,asanequivalent,theproductof6hours’ labour.Weare,thus,forcedtooneoftwoconclusions:either labour hastwovalues,oneofwhichistwiceaslargeastheother,or12equals6!Inbothcases,wegetpureabsurdities.Turnandtwistaswemay,wewillnotgetoutofthiscontradictionaslongaswespeakofthebuyingandsellingof “labour” andofthe “valueof labour.” Andjustsoithappenedtothepoliticaleconomists.Thelastoffshootofclassicalpoliticaleconomy–theRicardianschool–waslargelywreckedontheinsolubilityofthiscontradiction.Classicalpoliticaleconomyhadrunitselfintoablindalley.ThemanwhodiscoveredthewayoutofthisblindalleywasKarlMarx.

Whattheeconomistshadconsideredasthecostofproductionof “labour” wasreallythecostofproduction,notof “labour,” butoftheliving labourerhimself.Andwhatthis labourersoldtothecapitalistwasnothis labour.

“Sosoonashis labour reallybegins,” saysMarx, “itceasestobelongtohim,andthereforecannolongerbesoldbyhim.”

Atthemost,hecouldsellhisfuturelabour –i.e.,assumetheobligationofexecutingacertainpieceofworkinacertaintime.But,inthisway,hedoesnotsell labour (whichwouldfirsthavetobeperformed),butnotforastipulatedpaymentheplaceshis labour-poweratthedisposalofthecapitalistforacertaintime(incaseoftime-wages),orfortheperformanceofacertaintask(incaseofpiece-wages).Hehiresoutorsellshislabour-power.Butthis labour-powerhasgrownupwithhispersonandisinseparablefromit.Itscostofproduction,therefore,coincideswithhisowncostofproduction;whattheeconomistcalledthecostofproductionof labour isreallythecostofproductionofthe labourer,andtherewithofhis labour-power.And,thus,wecanalsogobackfromthecostofproductionof labour-powertothevalueof labour-power,anddeterminethequantityofsocial labour thatisrequiredfortheproductionofa labour-powerofagivenquantity,asMarxhasdoneinthechapteron “TheBuyingandSellingof Labour Power.” [Capital,VolumeI]

Nowwhattakesplaceaftertheworkerhassoldhis labour-power,i.e.,afterhehasplacedhis labour-poweratthedisposalofthecapitalistforstipulated-wages–whethertime-wagesorpiece-wages?Thecapitalisttakesthe labourerintohisworkshoporfactory,whereallthearticlesrequiredfortheworkcanbefound–rawmaterials,auxiliarymaterials(coal,dyestuffs,etc.),tools,andmachines.Here,theworkerbeginstowork.Hisdailywagesare,asabove,3shillings,anditmakesnodifferencewhetherheearnsthemasday-wagesorpiece-wages.Weagainassumethatin12hourstheworkeraddsbyhis labour anewvalueof6shillingstothevalueoftherawmaterialsconsumed,whichnewvaluethecapitalistrealizesbythesaleofthefinishedpieceofwork.Outofthisnewvalue,hepaystheworkerhis3shillings,andtheremaining3shillingshekeepsforhimself.If,now,the labourercreatesin12hoursavalueof6shilling,in6hourshecreatesavalueof3shillings.Consequently,afterworking6hoursforthecapitalist,the labourerhasreturnedtohimtheequivalentofthe3shillingsreceivedaswages.After6hours’work,botharequits,neitheroneowingapennytotheother.

“Holdonthere!” nowcriesoutthecapitalist. “Ihavehiredthe labourerforawholeday,for12hours.But6hoursareonlyhalf-a-day.Soworkalonglivelythereuntiltheother6hoursareatanend–onlythenwillwebeeven.” And,infact,the labourerhastosubmittotheconditionsofthecontractuponwhichheenteredof “hisownfreewill”,andaccordingtowhichheboundhimselftowork12wholehoursforaproductof labour whichcostonly6hours’ labour.

Similarlywithpiece-wages.Letussupposethatin12hoursourworkermakes12commodities.Eachofthesecostsashillinginrawmaterialsandwear-and-tear,andissoldfor2.5shillings.Onourformerassumption,thecapitalistgivesthe labourer.25ofashillingforeachpiece,whichmakesatotalof3shillingsfor12pieces.Toearnthis,theworkerrequires12hours.Thecapitalistreceives30shillingsforthe12pieces;deducting24shillingsforrawmaterialsandwear-and-tear,thereremains6shillings,ofwhichhepays3shillingsinwagesandpocketstheremaining3.Justasbefore!Here,also,theworker labours6hoursforhimself–i.e.,toreplacehiswages(half-an-hourineachofthe12hours),and6hoursforthecapitalist.

Therockuponwhichthebesteconomistswerestranded,aslongastheystartedoutfromthevalueof labour,vanishesassoonaswemakeourstarting-pointthevalueoflabour-power. Labour-poweris,inourpresent-daycapitalistsociety,acommoditylikeeveryothercommodity,butyetaverypeculiarcommodity.Ithas,namely,thepeculiarityofbeingavalue-creatingforce,thesourceofvalue,and,moreover,whenproperlytreated,thesourceofmorevaluethanitpossessesitself.Inthepresentstateofproduction,human labour-powernotonlyproducesinadayagreatervaluethanititselfpossessesandcosts;butwitheachnewscientificdiscovery,witheachnewtechnicalinvention,therealsorisesthesurplusofitsdailyproductionoveritsdailycost,whileasaconsequencetherediminishesthatpartoftheworking-dayinwhichthe labourerproducestheequivalentofhisday’swages,and,ontheotherhand,lengthensthatpartoftheworking-dayinwhichhemustpresent labour gratistothecapitalist.

Andthisistheeconomicconstitutionofourentiremodernsociety:theworkingclassaloneproducesallvalues.Forvalueisonlyanotherexpressionfor labour,thatexpression,namely,bywhichisdesignated,inourcapitalistsocietyoftoday,theamountofsociallynecessary labour embodiedinaparticularcommodity.But,thesevaluesproducedbytheworkersdonotbelongtotheworkers.Theybelongtotheownersoftherawmaterials,machines,tools,andmoney,whichenablethemtobuythe labour-poweroftheworkingclass.Hence,theworkingclassgetsbackonlyapartoftheentiremassofproductsproducedbyit.And,aswehavejustseen,theotherportion,whichthecapitalistclassretains,andwhichithastoshare,atmost,onlywiththelandlordclass,isincreasingwitheverynewdiscoveryandinvention,whilethesharewhichfallstotheworkingclass(percapita)risesbutlittleandveryslowly,ornotatall,andundercertainconditionsitmayevenfall.

But,thesediscoveriesandinventionswhichsupplantoneanotherwithever-increasingspeed,thisproductivenessofhuman labour whichincreasesfromdaytodaytounheard-ofproportions,atlastgivesrisetoaconflict,inwhichpresentcapitalisticeconomymustgotoruin.Ontheonehand,immeasurablewealthandasuperfluidityofproductswithwhichthebuyerscannotcope.Ontheotherhand,thegreatmassofsocietyproletarianized,transformedintowage-labourers,andtherebydisabledfromappropriatingtothemselvesthatsuperfluidityofproducts.Thesplittingupofsocietyintoasmallclass,immoderatelyrich,andalargeclassofwage-labourersdevoidofallproperty,bringsitaboutthatthissocietysmothersinitsownsuperfluidity,whilethegreatmajorityofitsmembersarescarcely,ornotatall,protectedfromextremewant.

Thisconditionbecomeseverydaymoreabsurdandmoreunnecessary.Itmustbegottenridof;itcanbegottenridof.Anewsocialorderispossible,inwhichtheclassdifferencesoftodaywillhavedisappeared,andinwhich–perhapsafterashorttransitionperiod,which,thoughsomewhatdeficientinotherrespects,willinanycasebeveryusefulmorally–therewillbethemeansoflife,oftheenjoymentoflife,andofthedevelopmentandactivityofallbodilyandmentalfaculties,throughthesystematicuseandfurtherdevelopmentoftheenormousproductivepowersofsociety,whichexistswithusevennow,withequalobligationuponalltowork.AndthattheworkersaregrowingevermoredeterminedtoachievethisnewsocialorderwillbeprovenonbothsidesoftheoceanonthisdawningMayDay,andonSunday,May3rd.[EngelsisreferringtotheMayDaycelebrationsof1891]

FREDERICKENGELS
London,April30,1891.

Preliminary

Fromvariousquarterswehavebeenreproachedforneglectingtoportraytheeconomicconditionswhichformthematerialbasisofthepresentstrugglesbetweenclassesandnations.Withsetpurposewehavehithertotouchedupontheseconditionsonlywhentheyforcedthemselvesuponthesurfaceofthepoliticalconflicts.

Itwasnecessary,beyondeverythingelse,tofollowthedevelopmentoftheclassstruggleinthehistoryofourownday,andtoproveempirically,bytheactualanddailynewlycreatedhistoricalmaterial,thatwiththesubjugationoftheworkingclass,accomplishedinthedaysofFebruaryandMarch,1848,theopponentsofthatclass–thebourgeoisrepublicansinFrance,andthebourgeoisandpeasantclasseswhowerefightingfeudalabsolutismthroughoutthewholecontinentofEurope–weresimultaneouslyconquered;thatthevictoryofthe “moderaterepublic” inFrancesoundedatthesametimethefallofthenationswhichhadrespondedtotheFebruaryrevolutionwithheroicwarsofindependence;andfinallythat,bythevictoryovertherevolutionaryworkingmen,Europefellbackintoitsolddoubleslavery,intotheEnglish-Russianslavery.TheJuneconflictinParis,thefallofVienna,thetragi-comedyinBerlininNovember1848,thedesperateeffortsofPoland,Italy,andHungary,thestarvationofIrelandintosubmission–thesewerethechiefeventsinwhichtheEuropeanclassstrugglebetweenthebourgeoisieandtheworkingclasswassummedup,andfromwhichweprovedthateveryrevolutionaryuprising,howeverremotefromtheclassstruggleitsobjectmightappear,mustofnecessityfailuntiltherevolutionaryworkingclassshallhaveconquered;–thateverysocialreformmustremainaUtopiauntiltheproletarianrevolutionandthefeudalisticcounter-revolutionhavebeenpittedagainsteachotherinaworld-widewar.Inourpresentation,asinreality,BelgiumandSwitzerlandweretragicomiccaricaturishgenrepicturesinthegreathistorictableau;theonethemodelStateofthebourgeoismonarchy,theotherthemodelStateofthebourgeoisrepublic;bothofthem,StatesthatflatterthemselvestobejustasfreefromtheclassstruggleasfromtheEuropeanrevolution.

Butnow,afterourreadershaveseentheclassstruggleoftheyear1848developintocolossalpoliticalproportions,itistimetoexaminemorecloselytheeconomicconditionsthemselvesuponwhichisfoundedtheexistenceofthecapitalistclassanditsclassrule,aswellastheslaveryoftheworkers.

Weshallpresentthesubjectinthreegreatdivisions:

TheRelationofWage-Labour toCapital,theSlaveryoftheWorker,theRuleoftheCapitalist.

TheInevitableRuinoftheMiddleClasses[petty-bourgeois]andtheso-calledCommons[peasants]underthepresentsystem.

TheCommercialSubjugationandExploitationoftheBourgeoisclassesofthevariousEuropeannationsbytheDespotoftheWorldMarket–England.

Weshallseektoportraythisassimplyandpopularlyaspossible,andshallnotpresupposeaknowledgeofeventhemostelementarynotionsofpoliticaleconomy.Wewishtobeunderstoodbytheworkers.And,moreover,thereprevailsinGermanythemostremarkableignoranceandconfusionofideasinregardtothesimplesteconomicrelations,fromthepatenteddefendersofexistingconditions,downtothesocialistwonder-workersandtheunrecognizedpoliticalgeniuses,inwhichdividedGermanyisevenricherthaninduodecimoprincelings.Wethereforeproceedtotheconsiderationofthefirstproblem.

WhatareWages?HowaretheyDetermined?

Ifseveralworkmenweretobeasked: “Howmuchwagesdoyouget?”,onewouldreply, “Igettwoshillingsaday”,andsoon.Accordingtothedifferentbranchesofindustryinwhichtheyareemployed,theywouldmentiondifferentsumsofmoneythattheyreceivefromtheirrespectiveemployersforthecompletionofacertaintask;forexample,forweavingayardoflinen,orforsettingapageoftype.Despitethevarietyoftheirstatements,theywouldallagreeupononepoint:thatwagesaretheamountofmoneywhichthecapitalistpaysforacertainperiodofworkorforacertainamountofwork.

Consequently,itappearsthatthecapitalistbuystheirlabourwithmoney,andthatformoneytheysellhimtheirlabour.Butthisismerelyanillusion.Whattheyactuallyselltothecapitalistformoneyistheirlabour-power.Thislabour-powerthecapitalistbuysforaday,aweek,amonth,etc.Andafterhehasboughtit,heusesitupbylettingtheworkerlabourduringthestipulatedtime.Withthesameamountofmoneywithwhichthecapitalisthasboughttheirlabour-power(forexample,withtwoshillings)hecouldhaveboughtacertainamountofsugarorofanyothercommodity.Thetwoshillingswithwhichhebought20poundsofsugaristhepriceofthe20poundsofsugar.Thetwoshillingswithwhichhebought12hours'useoflabour-power,isthepriceof12hours'labour.Labour-power,then,isacommodity,nomore,nolesssothanisthesugar.Thefirstismeasuredbytheclock,theotherbythescales.

Theircommodity,labour-power,theworkersexchangeforthecommodityofthecapitalist,formoney,and,moreover,thisexchangetakesplaceatacertainratio.Somuchmoneyforsolongauseoflabour-power.For12hours'weaving,twoshillings.Andthesetwoshillings,dotheynotrepresentalltheothercommoditieswhichIcanbuyfortwoshillings?Therefore,actually,theworkerhasexchangedhiscommodity,labour-power,forcommoditiesofallkinds,and,moreover,atacertainratio.Bygivinghimtwoshillings,thecapitalisthasgivenhimsomuchmeat,somuchclothing,somuchwood,light,etc.,inexchangeforhisday'swork.Thetwoshillingsthereforeexpresstherelationinwhichlabour-powerisexchangedforothercommodities,theexchange-valueoflabour-power.

Theexchangevalueofacommodityestimatedinmoneyiscalleditsprice.Wagesthereforeareonlyaspecialnameforthepriceoflabour-power,andareusuallycalledthepriceoflabour;itisthespecialnameforthepriceofthispeculiarcommodity,whichhasnootherrepositorythanhumanfleshandblood.

Letustakeanyworker;forexample,aweaver.Thecapitalistsupplieshimwiththeloomandyarn.Theweaverapplieshimselftowork,andtheyarnisturnedintocloth.Thecapitalisttakespossessionoftheclothandsellsitfor20shillings,forexample.Nowarethewagesoftheweaverashareofthecloth,ofthe20shillings,oftheproductofthework?Bynomeans.Longbeforetheclothissold,perhapslongbeforeitisfullywoven,theweaverhasreceivedhiswages.Thecapitalist,then,doesnotpayhiswagesoutofthemoneywhichhewillobtainfromthecloth,butoutofmoneyalreadyonhand.Justaslittleasloomandyarnaretheproductoftheweavertowhomtheyaresuppliedbytheemployer,justsolittlearethecommoditieswhichhereceivesinexchangeforhiscommodity–labour-power–hisproduct.Itispossiblethattheemployerfoundnopurchasersatallforthecloth.Itispossiblethathedidnotgeteventheamountofthewagesbyitssale.Itispossiblethathesellsitveryprofitablyinproportiontotheweaver'swages.Butallthatdoesnotconcerntheweaver.Withapartofhisexistingwealth,ofhiscapital,thecapitalistbuysthelabour-poweroftheweaverinexactlythesamemanneras,withanotherpartofhiswealth,hehasboughttherawmaterial–theyarn–andtheinstrumentoflabour–theloom.Afterhehasmadethesepurchases,andamongthembelongsthelabour-powernecessarytotheproductionoftheclothheproducesonlywithrawmaterialsandinstrumentsoflabourbelongingtohim.Forourgoodweaver,too,isoneoftheinstrumentsoflabour,andbeinginthisrespectonaparwiththeloom,hehasnomoreshareintheproduct(thecloth),orinthepriceoftheproduct,thantheloomitselfhas.

Wages,therefore,arenotashareoftheworkerinthecommoditiesproducedbyhimself.Wagesarethatpartofalreadyexistingcommoditieswithwhichthecapitalistbuysacertainamountofproductivelabour-power.

Consequently,labour-powerisacommoditywhichitspossessor,thewage-worker,sellstothecapitalist.Whydoeshesellit?Itisinordertolive.

Buttheputtingoflabour-powerintoaction–i.e.,thework–istheactiveexpressionofthelabourer'sownlife.Andthislifeactivityhesellstoanotherpersoninordertosecurethenecessarymeansoflife.Hislife-activity,therefore,isbutameansofsecuringhisownexistence.Heworksthathemaykeepalive.Hedoesnotcountthelabouritselfasapartofhislife;itisratherasacrificeofhislife.Itisacommoditythathehasauctionedofftoanother.Theproductofhisactivity,therefore,isnottheaimofhisactivity.Whatheproducesforhimselfisnotthesilkthatheweaves,notthegoldthathedrawsuptheminingshaft,notthepalacethathebuilds.Whatheproducesforhimselfiswages;andthesilk,thegold,andthepalaceareresolvedforhimintoacertainquantityofnecessariesoflife,perhapsintoacottonjacket,intocoppercoins,andintoabasementdwelling.Andthelabourerwhofor12hourslong,weaves,spins,bores,turns,builds,shovels,breaksstone,carrieshods,andsoon–isthis12hours'weaving,spinning,boring,turning,building,shovelling,stone-breaking,regardedbyhimasamanifestationoflife,aslife?Quitethecontrary.Lifeforhimbeginswherethisactivityceases,atthetable,atthetavern,inbed.The12hours'work,ontheotherhand,hasnomeaningforhimasweaving,spinning,boring,andsoon,butonlyasearnings,whichenablehimtositdownatatable,totakehisseatinthetavern,andtoliedowninabed.Ifthesilk-worm'sobjectinspinningweretoprolongitsexistenceascaterpillar,itwouldbeaperfectexampleofawage-worker.

Labour-powerwasnotalwaysacommodity(merchandise).Labourwasnotalwayswage-labour,i.e.,freelabour.Theslavedidnotsellhislabour-powertotheslave-owner,anymorethantheoxsellshislabourtothefarmer.Theslave,togetherwithhislabour-power,wassoldtohisowneronceforall.Heisacommoditythatcanpassfromthehandofoneownertothatofanother.Hehimselfisacommodity,buthislabour-powerisnothiscommodity.Theserfsellsonlyaportionofhislabour-power.Itisnothewhoreceiveswagesfromtheowneroftheland;itisrathertheownerofthelandwhoreceivesatributefromhim.Theserfbelongstothesoil,andtothelordofthesoilhebringsitsfruit.Thefreelabourer,ontheotherhand,sellshisveryself,andthatbyfractions.Heauctionsoffeight,10,12,15hoursofhislife,onedaylikethenext,tothehighestbidder,totheownerofrawmaterials,tools,andthemeansoflife–i.e.,tothecapitalist.Thelabourerbelongsneithertoanownernortothesoil,buteight,10,12,15hoursofhisdailylifebelongtowhomsoeverbuysthem.Theworkerleavesthecapitalist,towhomhehassoldhimself,asoftenashechooses,andthecapitalistdischargeshimasoftenasheseesfit,assoonashenolongergetsanyuse,ornottherequireduse,outofhim.Buttheworker,whoseonlysourceofincomeisthesaleofhislabour-power,cannotleavethewholeclassofbuyers,i.e.,thecapitalistclass,unlesshegivesuphisownexistence.Hedoesnotbelongtothisorthatcapitalist,buttothecapitalistclass;anditisforhimtofindhisman–i.e.,tofindabuyerinthiscapitalistclass.

Beforeenteringmorecloselyupontherelationofcapitaltowage-labour,weshallpresentbrieflythemostgeneralconditionswhichcomeintoconsiderationinthedeterminationofwages.

Wages,aswehaveseen,arethepriceofacertaincommodity,labour-power.Wages,therefore,aredeterminedbythesamelawsthatdeterminethepriceofeveryothercommodity.Thequestionthenis,Howisthepriceofacommoditydetermined?

Bywhatisthepriceofacommoditydetermined?

Bythecompetitionbetweenbuyersandsellers,bytherelationofthedemandtothesupply,ofthecalltotheoffer.Thecompetitionbywhichthepriceofacommodityisdeterminedisthreefold.

Thesamecommodityisofferedforsalebyvarioussellers.Whoeversellscommoditiesofthesamequalitymostcheaply,issuretodrivetheothersellersfromthefieldandtosecurethegreatestmarketforhimself.Thesellersthereforefightamongthemselvesforthesales,forthemarket.Eachoneofthemwishestosell,andtosellasmuchaspossible,andifpossibletosellalone,totheexclusionofallothersellers.Eachonesellscheaperthantheother.Thustheretakesplaceacompetitionamongthesellerswhichforcesdownthepriceofthecommoditiesofferedbythem.

Butthereisalsoacompetitionamongthebuyers;thisuponitssidecausesthepriceoftheprofferedcommoditiestorise.

Finally,thereiscompetitionbetweenthebuyersandthesellers:thesewishtopurchaseascheaplyaspossible,thosetosellasdearlyaspossible.Theresultofthiscompetitionbetweenbuyersandsellerswilldependupontherelationsbetweenthetwoabove-mentionedcampsofcompetitors–i.e.,uponwhetherthecompetitioninthearmyofsellersisstronger.Industryleadstwogreatarmiesintothefieldagainsteachother,andeachoftheseagainisengagedinabattleamongitsowntroopsinitsownranks.Thearmyamongwhosetroopsthereislessfighting,carriesoffthevictoryovertheopposinghost.

Letussupposethatthereare100balesofcottoninthemarketandatthesametimepurchasersfor1,000balesofcotton.Inthiscase,thedemandis10timesgreaterthanthesupply.Competitionamongthebuyers,then,willbeverystrong;eachofthemtriestogetholdofonebale,ifpossible,ofthewhole100bales.Thisexampleisnoarbitrarysupposition.Inthehistoryofcommercewehaveexperiencedperiodsofscarcityofcotton,whensomecapitalistsunitedtogetherandsoughttobuyupnot100bales,butthewholecottonsupplyoftheworld.Inthegivencase,then,onebuyerseekstodrivetheothersfromthefieldbyofferingarelativelyhigherpriceforthebalesofcotton.Thecottonsellers,whoperceivethetroopsoftheenemyinthemostviolentcontentionamongthemselves,andwhothereforearefullyassuredofthesaleoftheirwhole100bales,willbewareofpullingoneanother'shairinordertoforcedownthepriceofcottonattheverymomentinwhichtheiropponentsracewithoneanothertoscrewituphigh.So,allofasudden,peacereignsinthearmyofsellers.Theystandopposedtothebuyerslikeoneman,foldtheirarmsinphilosophiccontentmentandtheirclaimswouldfindnolimitdidnottheoffersofeventhemostimportunateofbuyershaveaverydefinitelimit.

If,then,thesupplyofacommodityislessthanthedemandforit,competitionamongthesellersisveryslight,ortheremaybenoneatallamongthem.Inthesameproportioninwhichthiscompetitiondecreases,thecompetitionamongthebuyersincreases.Result:amoreorlessconsiderableriseinthepricesofcommodities.

Itiswellknownthattheoppositecase,withtheoppositeresult,happensmorefrequently.Greatexcessofsupplyoverdemand;desperatecompetitionamongthesellers,andalackofbuyers;forcedsalesofcommoditiesatridiculouslylowprices.

Butwhatisarise,andwhatafallofprices?Whatisahighandwhatalowprice?Agrainofsandishighwhenexaminedthroughamicroscope,andatowerislowwhencomparedwithamountain.Andifthepriceisdeterminedbytherelationofsupplyanddemand,bywhatistherelationofsupplyanddemanddetermined?

Letusturntothefirstworthycitizenwemeet.Hewillnothesitateonemoment,but,likeAlexandertheGreat,willcutthismetaphysicalknotwithhismultiplicationtable.Hewillsaytous: “IftheproductionofthecommoditieswhichIsellhascostme100pounds,andoutofthesaleofthesegoodsImake110pounds–withintheyear,youunderstand–that'sanhonest,sound,reasonableprofit.ButifintheexchangeIreceive120or130pounds,that'sahigherprofit;andifIshouldgetasmuchas200pounds,thatwouldbeanextraordinary,andenormousprofit.” Whatisit,then,thatservesthiscitizenasthestandardofhisprofit?Thecostoftheproductionofhiscommodities.Ifinexchangeforthesegoodshereceivesaquantityofothergoodswhoseproductionhascostless,hehaslost.Ifhereceivesinexchangeforhisgoodsaquantityofothergoodswhoseproductionhascostmore,hehasgained.Andhereckonsthefallingorrisingoftheprofitaccordingtothedegreeatwhichtheexchangevalueofhisgoodsstands,whetheraboveorbelowhiszero–thecostofproduction.

Wehaveseenhowthechangingrelationofsupplyanddemandcausesnowarise,nowafallofprices;nowhigh,nowlowprices.Ifthepriceofacommodityrisesconsiderablyowingtoafailingsupplyoradisproportionatelygrowingdemand,thenthepriceofsomeothercommoditymusthavefalleninproportion;forofcoursethepriceofacommodityonlyexpressesinmoneytheproportioninwhichothercommoditieswillbegiveninexchangeforit.If,forexample,thepriceofayardofsilkrisesfromtwotothreeshillings,thepriceofsilverhasfalleninrelationtothesilk,andinthesamewaythepricesofallothercommoditieswhosepriceshaveremainedstationaryhavefalleninrelationtothepriceofsilk.Alargequantityofthemmustbegiveninexchangeinordertoobtainthesameamountofsilk.Now,whatwillbetheconsequenceofariseinthepriceofaparticularcommodity?Amassofcapitalwillbethrownintotheprosperousbranchofindustry,andthisimmigrationofcapitalintotheprovincesofthefavoredindustrywillcontinueuntilityieldsnomorethanthecustomaryprofits,or,ratheruntilthepriceofitsproducts,owningtooverproduction,sinksbelowthecostofproduction.

Conversely:ifthepriceofacommodityfallsbelowitscostofproduction,thencapitalwillbewithdrawnfromtheproductionofthiscommodity.Exceptinthecaseofabranchofindustrywhichhasbecomeobsoleteandisthereforedoomedtodisappear,theproductionofsuchacommodity(thatis,itssupply),will,owningtothisflightofcapital,continuetodecreaseuntilitcorrespondstothedemand,andthepriceofthecommodityrisesagaintothelevelofitscostofproduction;or,rather,untilthesupplyhasfallenbelowthedemandanditspricehasrisenaboveitscostofproduction,forthecurrentpriceofacommodityisalwayseitheraboveorbelowitscostofproduction.

Weseehowcapitalcontinuallyemigratesoutoftheprovinceofoneindustryandimmigratesintothatofanother.Thehighpriceproducesanexcessiveimmigration,andthelowpriceanexcessiveemigration.

Wecouldshow,fromanotherpointofview,hownotonlythesupply,butalsothedemand,isdeterminedbythecostofproduction.Butthiswouldleadustoofarawayfromoursubject.

Wehavejustseenhowthefluctuationofsupplyanddemandalwaysbringthepriceofacommoditybacktoitscostofproduction.Theactualpriceofacommodity,indeed,standsalwaysaboveorbelowthecostofproduction;buttheriseandfallreciprocallybalanceeachother,sothat,withinacertainperiodoftime,iftheebbsandflowsoftheindustryarereckoneduptogether,thecommoditieswillbeexchangedforoneanotherinaccordancewiththeircostofproduction.Theirpriceisthusdeterminedbytheircostofproduction.

Thedeterminationofpricebythecostofproductionisnottobeunderstoodinthesenseofthebourgeoiseconomists.Theeconomistssaythattheaveragepriceofcommoditiesequalsthecostofproduction:thatisthelaw.Theanarchicmovement,inwhichtheriseiscompensatedforbyafallandthefallbyarise,theyregardasanaccident.Wemightjustaswellconsiderthefluctuationsasthelaw,andthedeterminationofthepricebycostofproductionasanaccident–asis,infact,donebycertainothereconomists.Butitispreciselythesefluctuationswhich,viewedmoreclosely,carrythemostfrightfuldevastationintheirtrain,and,likeanearthquake,causebourgeoissocietytoshaketoitsveryfoundations–itispreciselythesefluctuationsthatforcethepricetoconformtothecostofproduction.Inthetotalityofthisdisorderlymovementistobefounditsorder.Inthetotalcourseofthisindustrialanarchy,inthiscircularmovement,competitionbalances,asitwere,theoneextravagancebytheother.

Wethusseethatthepriceofacommodityisindeeddeterminedbyitscostofproduction,butinsuchamannerthattheperiodsinwhichthepriceofthesecommoditiesrisesabovethecostsofproductionarebalancedbytheperiodsinwhichitsinksbelowthecostofproduction,andviceversa.Ofcoursethisdoesnotholdgoodforasinglegivenproductofanindustry,butonlyforthatbranchofindustry.Soalsoitdoesnotholdgoodforanindividualmanufacturer,butonlyforthewholeclassofmanufacturers.

Thedeterminationofpricebycostofproductionistantamounttothedeterminationofpricebythe labour-timerequisitetotheproductionofacommodity,forthecostofproductionconsists,firstofrawmaterialsandwearandtearoftools,etc.,i.e.,ofindustrialproductswhoseproductionhascostacertainnumberofwork-days,whichthereforerepresentacertainamountof labour-time,and,secondly,ofdirect labour,whichisalsomeasuredbyitsduration.

Bywhatarewagesdetermined?

Now,thesamegenerallawswhichregulatethepriceofcommoditiesingeneral,naturallyregulatewages,orthepriceof labour-power.Wageswillnowrise,nowfall,accordingtotherelationofsupplyanddemand,accordingascompetitionshapesitselfbetweenthebuyersof labour-power,thecapitalists,andthesellersof labour-power,theworkers.Thefluctuationsofwagescorrespondtothefluctuationinthepriceofcommoditiesingeneral.Butwithinthelimitsofthesefluctuationsthepriceof labour-powerwillbedeterminedbythecostofproduction,bythe labour-timenecessaryforproductionofthiscommodity: labour-power.

What,then,isthecostofproductionof labour-power?

Itisthecostrequiredforthemaintenanceofthe labourerasa labourer,andforhiseducationandtrainingasa labourer.

Therefore,theshorterthetimerequiredfortraininguptoaparticularsortofwork,thesmalleristhecostofproductionoftheworker,theloweristhepriceofhis labour-power,hiswages.Inthosebranchesofindustryinwhichhardlyanyperiodofapprenticeshipisnecessaryandthemerebodilyexistenceoftheworkerissufficient,thecostofhisproductionislimitedalmostexclusivelytothecommoditiesnecessaryforkeepinghiminworkingcondition.Thepriceofhisworkwillthereforebedeterminedbythepriceofthenecessarymeansofsubsistence.

Here,however,thereentersanotherconsideration.Themanufacturerwhocalculateshiscostofproductionand,inaccordancewithit,thepriceoftheproduct,takesintoaccountthewearandtearoftheinstrumentsof labour.Ifamachinecostshim,forexample,1,000shillings,andthismachineisusedupin10years,headds100shillingsannuallytothepriceofthecommodities,inordertobeableafter10yearstoreplacetheworn-outmachinewithanewone.Inthesamemanner,thecostofproductionofsimple labour-powermustincludethecostofpropagation,bymeansofwhichtheraceofworkersisenabledtomultiplyitself,andtoreplaceworn-outworkerswithnewones.Thewearandtearoftheworker,therefore,iscalculatedinthesamemannerasthewearandtearofthemachine.

Thus,thecostofproductionofsimple labour-poweramountstothecostoftheexistenceandpropagationoftheworker.Thepriceofthiscostofexistenceandpropagationconstituteswages.Thewagesthusdeterminedarecalledtheminimumofwages.Thisminimumwage,likethedeterminationofthepriceofcommoditiesingeneralbycostofproduction,doesnotholdgoodforthesingleindividual,butonlyfortherace.Individualworkers,indeed,millionsofworkers,donotreceiveenoughtobeabletoexistandtopropagatethemselves;butthewagesofthewholeworkingclassadjustthemselves,withinthelimitsoftheirfluctuations,tothisminimum.

Nowthatwehavecometoanunderstandinginregardtothemostgenerallawswhichgovernwages,aswellasthepriceofeveryothercommodity,wecanexamineoursubjectmoreparticularly.

TheNatureandGrowthofCapital

Capitalconsistsofrawmaterials,instrumentsof labour,andmeansofsubsistenceofallkinds,whichareemployedinproducingnewrawmaterials,newinstruments,andnewmeansofsubsistence.Allthesecomponentsofcapitalarecreatedby labour,productsof labour,accumulated labour.Accumulated labour thatservesasameanstonewproductioniscapital.

Sosaytheeconomists.

WhatisaNegroslave?Amanoftheblackrace.Theoneexplanationisworthyoftheother.

ANegroisaNegro.Onlyundercertainconditionsdoeshebecomeaslave.Acotton-spinningmachineisamachineforspinningcotton.Onlyundercertainconditionsdoesitbecomecapital.Tornawayfromtheseconditions,itisaslittlecapitalasgoldisitselfmoney,orsugaristhepriceofsugar.

Intheprocessofproduction,humanbeingsworknotonlyuponnature,butalsoupononeanother.Theyproduceonlybyworkingtogetherinaspecifiedmannerandreciprocallyexchangingtheiractivities.Inordertoproduce,theyenterintodefiniteconnectionsandrelationstooneanother,andonlywithinthesesocialconnectionsandrelationsdoestheirinfluenceuponnatureoperate–i.e.,doesproductiontakeplace.

Thesesocialrelationsbetweentheproducers,andtheconditionsunderwhichtheyexchangetheiractivitiesandshareinthetotalactofproduction,willnaturallyvaryaccordingtothecharacterofthemeansofproduction.Withthediscoverofanewinstrumentofwarfare,thefirearm,thewholeinternalorganizationofthearmywasnecessarilyaltered,therelationswithinwhichindividualscomposeanarmyandcanworkasanarmyweretransformed,andtherelationofdifferentarmiestoanotherwaslikewisechanged.

Wethusseethatthesocialrelationswithinwhichindividualsproduce,thesocialrelationsofproduction,arealtered,transformed,withthechangeanddevelopmentofthematerialmeansofproduction,oftheforcesofproduction.Therelationsofproductionintheirtotalityconstitutewhatiscalledthesocialrelations,society,and,moreover,asocietyatadefinitestageofhistoricaldevelopment,asocietywithpeculiar,distinctivecharacteristics.Ancientsociety,feudalsociety,bourgeois(orcapitalist)society,aresuchtotalitiesofrelationsofproduction,eachofwhichdenotesaparticularstageofdevelopmentinthehistoryofmankind.

Capitalalsoisasocialrelationofproduction.Itisabourgeoisrelationofproduction,arelationofproductionofbourgeoissociety.Themeansofsubsistence,theinstrumentsof labour,therawmaterials,ofwhichcapitalconsists–havetheynotbeenproducedandaccumulatedundergivensocialconditions,withindefinitespecialrelations?Aretheynotemployedfornewproduction,undergivenspecialconditions,withindefinitesocialrelations?Anddoesnotjustthedefinitesocialcharacterstamptheproductswhichservefornewproductionascapital?

Capitalconsistsnotonlyofmeansofsubsistence,instrumentsof labour,andrawmaterials,notonlyasmaterialproducts;itconsistsjustasmuchofexchangevalues.Allproductsofwhichitconsistsarecommodities.Capital,consequently,isnotonlyasumofmaterialproducts,itisasumofcommodities,ofexchangevalues,ofsocialmagnitudes.Capitalremainsthesamewhetherweputcottonintheplaceofwool,riceintheplaceofwheat,steamshipsintheplaceofrailroads,providedonlythatthecotton,therice,thesteamships–thebodyofcapital–havethesameexchangevalue,thesameprice,asthewool,thewheat,therailroads,inwhichitwaspreviouslyembodied.Thebodilyformofcapitalmaytransformitselfcontinually,whilecapitaldoesnotsuffertheleastalteration.

Butthougheverycapitalisasumofcommodities–i.e.,ofexchangevalues–itdoesnotfollowthateverysumofcommodities,ofexchangevalues,iscapital.

Everysumofexchangevaluesisanexchangevalue.Eachparticularexchangevalueisasumofexchangevalues.Forexample:ahouseworth1,000poundsisanexchangevalueof1,000pounds:apieceofpaperworthonepennyisasumofexchangevaluesof1001/100thsofapenny.Productswhichareexchangeableforothersarecommodities.Thedefiniteproportioninwhichtheyareexchangeableformstheirexchangevalue,or,expressedinmoney,theirprice.Thequantityoftheseproductscanhavenoeffectontheircharacterascommodities,asrepresentinganexchangevalue,ashavingacertainprice.Whetheratreebelargeorsmall,itremainsatree.Whetherweexchangeironinpennyweightsorinhundredweights,forotherproducts,doesthisalteritscharacter:itsbeingacommodity,orexchangevalue?Accordingtothequantity,itisacommodityofgreateroroflesservalue,ofhigheroroflowerprice.

Howthendoesasumofcommodities,ofexchangevalues,becomecapital?

Thereby,thatasanindependentsocialpower–i.e.,asthepowerofapartofsociety–itpreservesitselfandmultipliesbyexchangewithdirect,living labour-power.

Theexistenceofaclasswhichpossessesnothingbuttheabilitytoworkisanecessarypresuppositionofcapital.

Itisonlythedominionofpast,accumulated,materialized labour overimmediateliving labour thatstampstheaccumulated labour withthecharacterofcapital.

Capitaldoesnotconsistinthefactthataccumulated labour servesliving labour asameansfornewproduction.Itconsistsinthefactthatliving labour servesaccumulated labour asthemeansofpreservingandmultiplyingitsexchangevalue.

RelationofWage-LabourtoCapital

Whatisitthattakesplaceintheexchangebetweenthecapitalistandthewage-labourer?

Thelabourerreceivesmeansofsubsistenceinexchangeforhislabour-power;thecapitalistreceives,inexchangeforhismeansofsubsistence,labour,theproductiveactivityofthelabourer,thecreativeforcebywhichtheworkernotonlyreplaceswhatheconsumes,butalsogivestotheaccumulatedlabouragreatervaluethanitpreviouslypossessed.Thelabourergetsfromthecapitalistaportionoftheexistingmeansofsubsistence.Forwhatpurposedothesemeansofsubsistenceservehim?Forimmediateconsumption.ButassoonasIconsumemeansofsubsistence,theyareirrevocablylosttome,unlessIemploythetimeduringwhichthesemeanssustainmylifeinproducingnewmeansofsubsistence,increatingbymylabournewvaluesinplaceofthevalueslostinconsumption.Butitisjustthisnoblereproductivepowerthatthelabourersurrenderstothecapitalistinexchangeformeansofsubsistencereceived.Consequently,hehaslostitforhimself.

Letustakeanexample.Foroneshillingalabourerworksalldaylonginthefieldsofafarmer,towhomhethussecuresareturnoftwoshillings.Thefarmernotonlyreceivesthereplacedvaluewhichhehasgiventothedaylabourer,hehasdoubledit.Therefore,hehasconsumedtheoneshillingthathegavetothedaylabourerinafruitful,productivemanner.Fortheoneshillinghehasboughtthelabour-poweroftheday-labourer,whichcreatesproductsofthesoiloftwicethevalue,andoutofoneshillingmakestwo.Theday-labourer,onthecontrary,receivesintheplaceofhisproductiveforce,whoseresultshehasjustsurrenderedtothefarmer,oneshilling,whichheexchangesformeansofsubsistence,whichheconsumesmoreorlessquickly.Theoneshillinghasthereforebeenconsumedinadoublemanner–reproductivelyforthecapitalist,forithasbeenexchangedforlabour-power,whichbroughtforthtwoshillings;unproductivelyfortheworker,forithasbeenexchangedformeansofsubsistencewhicharelostforever,andwhosevaluehecanobtainagainonlybyrepeatingthesameexchangewiththefarmer.Capitalthereforepresupposeswage-labour;wage-labourpresupposescapital.Theyconditioneachother;eachbringstheotherintoexistence.

Doesaworkerinacottonfactoryproduceonlycotton?No.Heproducescapital.Heproducesvalueswhichserveanewtocommandhisworkandtocreatebymeansofitnewvalues.

Capitalcanmultiplyitselfonlybyexchangingitselfforlabour-power,bycallingwage-labourintolife.Thelabour-powerofthewage-labourercanexchangeitselfforcapitalonlybyincreasingcapital,bystrengtheningthatverypowerwhoseslaveitis.Increaseofcapital,therefore,isincreaseoftheproletariat,i.e.,oftheworkingclass.

Andso,thebourgeoisieanditseconomistsmaintainthattheinterestofthecapitalistandofthelaboureristhesame.Andinfact,sotheyare!Theworkerperishesifcapitaldoesnotkeephimbusy.Capitalperishesifitdoesnotexploitlabour-power,which,inordertoexploit,itmustbuy.Themorequicklythecapitaldestinedforproduction–theproductivecapital–increases,themoreprosperousindustryis,themorethebourgeoisieenrichesitself,thebetterbusinessgets,somanymoreworkersdoesthecapitalistneed,somuchthedearerdoestheworkersellhimself.Thefastestpossiblegrowthofproductivecapitalis,therefore,theindispensableconditionforatolerablelifetothelabourer.

Butwhatisgrowthofproductivecapital?Growthofthepowerofaccumulatedlabouroverlivinglabour;growthoftheruleofthebourgeoisieovertheworkingclass.Whenwage-labourproducesthealienwealthdominatingit,thepowerhostiletoit,capital,thereflowbacktoititsmeansofemployment–i.e.,itsmeansofsubsistence,undertheconditionthatitagainbecomeapartofcapital,thatisbecomeagaintheleverwherebycapitalistobeforcedintoanacceleratedexpansivemovement.

Tosaythattheinterestsofcapitalandtheinterestsoftheworkersareidentical,signifiesonlythis:thatcapitalandwage-labouraretwosidesofoneandthesamerelation.Theoneconditionstheotherinthesamewaythattheusurerandtheborrowerconditioneachother.

Aslongasthewage-labourerremainsawage-labourer,hislotisdependentuponcapital.Thatiswhattheboastedcommunityofinterestsbetweenworkerandcapitalistsamountsto.

Ifcapitalgrows,themassofwage-labourgrows,thenumberofwage-workersincreases;inaword,theswayofcapitalextendsoveragreatermassofindividuals.

Letussupposethemostfavorablecase:ifproductivecapitalgrows,thedemandforlabourgrows.Itthereforeincreasesthepriceoflabour-power,wages.

Ahousemaybelargeorsmall;aslongastheneighboringhousesarelikewisesmall,itsatisfiesallsocialrequirementforaresidence.Butlettherearisenexttothelittlehouseapalace,andthelittlehouseshrinkstoahut.Thelittlehousenowmakesitclearthatitsinmatehasnosocialpositionatalltomaintain,orbutaveryinsignificantone;andhoweverhighitmayshootupinthecourseofcivilization,iftheneighboringpalacerisesinequaloreveningreatermeasure,theoccupantoftherelativelylittlehousewillalwaysfindhimselfmoreuncomfortable,moredissatisfied,morecrampedwithinhisfourwalls.

Anappreciableriseinwagespresupposesarapidgrowthofproductivecapital.Rapidgrowthofproductivecapitalcallsforthjustasrapidagrowthofwealth,ofluxury,ofsocialneedsandsocialpleasures.Therefore,althoughthepleasuresofthelabourerhaveincreased,thesocialgratificationwhichtheyaffordhasfallenincomparisonwiththeincreasedpleasuresofthecapitalist,whichareinaccessibletotheworker,incomparisonwiththestageofdevelopmentofsocietyingeneral.Ourwantsandpleasureshavetheirorigininsociety;wethereforemeasuretheminrelationtosociety;wedonotmeasuretheminrelationtotheobjectswhichservefortheirgratification.Sincetheyareofasocialnature,theyareofarelativenature.

Butwagesarenotatalldeterminedmerelybythesumofcommoditiesforwhichtheymaybeexchanged.Otherfactorsenterintotheproblem.Whattheworkersdirectlyreceivefortheirlabour-powerisacertainsumofmoney.Arewagesdeterminedmerelybythismoneyprice?

Inthe16thcentury,thegoldandsilvercirculationinEuropeincreasedinconsequenceofthediscoveryofricherandmoreeasilyworkedminesinAmerica.Thevalueofgoldandsilver,therefore,fellinrelationtoothercommodities.Theworkersreceivedthesameamountofcoinedsilverfortheirlabour-powerasbefore.Themoneypriceoftheirworkremainedthesame,andyettheirwageshadfallen,forinexchangeforthesameamountofsilvertheyobtainedasmalleramountofothercommodities.Thiswasoneofthecircumstanceswhichfurtheredthegrowthofcapital,theriseofthebourgeoisie,inthe18thcentury.

Letustakeanothercase.Inthewinterof1847,inconsequenceofbadharvest,themostindispensablemeansofsubsistence–grains,meat,butter,cheese,etc.–rosegreatlyinprice.Letussupposethattheworkersstillreceivedthesamesumofmoneyfortheirlabour-powerasbefore.Didnottheirwagesfall?Tobesure.Forthesamemoneytheyreceivedinexchangelessbread,meat,etc.Theirwagesfell,notbecausethevalueofsilverwasless,butbecausethevalueofthemeansofsubsistencehadincreased.

Finally,letussupposethatthemoneypriceoflabour-powerremainedthesame,whileallagriculturalandmanufacturedcommoditieshadfalleninpricebecauseoftheemploymentofnewmachines,offavorableseasons,etc.Forthesamemoneytheworkerscouldnowbuymorecommoditiesofallkinds.Theirwageshavethereforerisen,justbecausetheirmoneyvaluehasnotchanged.

Themoneypriceoflabour-power,thenominalwages,donotthereforecoincidewiththeactualorrealwages–i.e.,withtheamountofcommoditieswhichareactuallygiveninexchangeforthewages.Ifthenwespeakofariseorfallofwages,wehavetokeepinmindnotonlythemoneypriceoflabour-power,thenominalwages,butalsotherealwages.

Butneitherthenominalwages–i.e.,theamountofmoneyforwhichthelabourersellshimselftothecapitalist–northerealwages–i.e.,theamountofcommoditieswhichhecanbuyforthismoney–exhauststherelationswhicharecomprehendedinthetermwages.

Wagesaredeterminedaboveallbytheirrelationstothegain,theprofit,ofthecapitalist.Inotherwords,wagesareaproportionate,relativequantity.

Realwagesexpressthepriceoflabour-powerinrelationtothepriceofcommodities;relativewages,ontheotherhand,expresstheshareofimmediatelabourinthevaluenewlycreatedbyit,inrelationtotheshareofitwhichfallstoaccumulatedlabour,tocapital.

TheGeneralLawthatDeterminestheRiseandFallofWagesandProfits

Wehavesaid: “Wagesarenotashareoftheworkerinthecommoditiesproducedbyhim.Wagesarethatpartofalreadyexistingcommoditieswithwhichthecapitalistbuysacertainamountofproductive labour-power.” Butthecapitalistmustreplacethesewagesoutofthepriceforwhichhesellstheproductmadebytheworker;hemustsoreplaceitthat,asarule,thereremainstohimasurplusabovethecostofproductionexpendedbyhim,thatis,hemustgetaprofit.

Thesellingpriceofthecommoditiesproducedbytheworkerisdivided,fromthepointofviewofthecapitalist,intothreeparts:

First,thereplacementofthepriceoftherawmaterialsadvancedbyhim,inadditiontothereplacementofthewearandtearofthetools,machines,andotherinstrumentsof labour likewiseadvancedbyhim;

Second,thereplacementofthewagesadvanced;and

Third,thesurplusleftover–i.e.,theprofitofthecapitalist.

Whilethefirstpartmerelyreplacespreviouslyexistingvalues,itisevidentthatthereplacementofthewagesandthesurplus(theprofitofcapital)areasawholetakenoutofthenewvalue,whichisproducedbythe labour oftheworkerandaddedtotherawmaterials.Andinthissensewecanviewwagesaswellasprofit,forthepurposeofcomparingthemwitheachother,assharesintheproductoftheworker.

Realwagesmayremainthesame,theymayevenrise,neverthelesstherelativewagesmayfall.Letussuppose,forinstance,thatallmeansofsubsistencehavefallen2/3rdsinprice,whiletheday'swageshavefallenbut1/3rd–forexample,fromthreetotwoshillings.Althoughtheworkercannowgetagreateramountofcommoditieswiththesetwoshillingsthanheformerlydidwiththreeshillings,yethiswageshavedecreasedinproportiontothegainofthecapitalist.Theprofitofthecapitalist–themanufacturer'sforinstance–hasincreasedoneshilling,whichmeansthatforasmalleramountofexchangevalues,whichhepaystotheworker,thelattermustproduceagreateramountofexchangevaluesthanbefore.Theshareofcapitalsinproportiontotheshareoflabourhasrisen.Thedistributionofsocialwealthbetweencapitalandlabourhasbecomestillmoreunequal.Thecapitalistcommandsagreateramountoflabourwiththesamecapital.Thepowerofthecapitalistclassovertheworkingclasshasgrown,thesocialpositionoftheworkerhasbecomeworse,hasbeenforceddownstillanotherdegreebelowthatofthecapitalist.

What,then,isthegenerallawthatdeterminestheriseandfallofwagesandprofitintheirreciprocalrelation?

Theystandininverseproportiontoeachother.Theshareof(profit)increasesinthesameproportioninwhichtheshareoflabour(wages)falls,andviceversa.Profitrisesinthesamedegreeinwhichwagesfall;itfallsinthesamedegreeinwhichwagesrise.

Itmightperhapsbearguedthatthecapitalistclasscangainbyanadvantageousexchangeofhisproductswithothercapitalists,byariseinthedemandforhiscommodities,whetherinconsequenceoftheopeningupofnewmarkets,orinconsequenceoftemporarilyincreaseddemandsintheoldmarket,andsoon;thattheprofitofthecapitalist,therefore,maybemultipliedbytakingadvantageofothercapitalists,independentlyoftheriseandfallofwages,oftheexchangevalueoflabour-power;orthattheprofitofthecapitalistmayalsorisethroughimprovementsintheinstrumentsoflabour,newapplicationsoftheforcesofnature,andsoon.

Butinthefirstplaceitmustbeadmittedthattheresultremainsthesame,althoughbroughtaboutinanoppositemanner.Profit,indeed,hasnotrisenbecausewageshavefallen,butwageshavefallenbecauseprofithasrisen.Withthesameamountofanotherman'slabourthecapitalisthasboughtalargeramountofexchangevalueswithouthavingpaidmoreforthelabouronthataccount–i.e.,theworkispaidforlessinproportiontothenetgainwhichityieldstothecapitalist.

Inthesecondplace,itmustbeborneinmindthat,despitethefluctuationsinthepricesofcommodities,theaveragepriceofeverycommodity,theproportioninwhichitexchangesforothercommodities,isdeterminedbyitscostofproduction.Theactsofoverreachingandtakingadvantageofoneanotherwithinthecapitalistranksnecessarilyequalizethemselves.Theimprovementsofmachinery,thenewapplicationsoftheforcesofnatureintheserviceofproduction,makeitpossibletoproduceinagivenperiodoftime,withthesameamountoflabourandcapital,alargeramountofproducts,butinnowisealargeramountofexchangevalues.Ifbytheuseofthespinning-machineIcanfurnishtwiceasmuchyarninanhourasbeforeitsinvention–forinstance,100poundsinsteadof50pounds–inthelongrunIreceiveback,inexchangeforthis100poundsnomorecommoditiesthanIdidbeforefor50;becausethecostofproductionhasfallenby1/2,orbecauseIcanfurnishdoubletheproductatthesamecost.

Finally,inwhatsoeverproportionthecapitalistclass,whetherofonecountryoroftheentireworld-market,distributethenetrevenueofproductionamongthemselves,thetotalamountofthisnetrevenuealwaysconsistsexclusivelyoftheamountbywhichaccumulatedlabourhasbeenincreasedfromtheproceedsofdirectlabour.Thiswholeamount,therefore,growsinthesameproportioninwhichlabouraugmentscapital–i.e.,inthesameproportioninwhichprofitrisesascomparedwithwages.

TheInterestsofCapitalandWage-Labourarediametricallyopposed.EffectofgrowthofproductiveCapitalonWages

Wethusseethat,evenifwekeepourselveswithintherelationofcapitalandwage-labour,theinterestsofcapitalsandtheinterestsofwage-labourarediametricallyopposedtoeachother.

Arapidgrowthofcapitalissynonymouswitharapidgrowthofprofits.Profitscangrowrapidlyonlywhenthepriceoflabour–therelativewages–decreasejustasrapidly.Relativewagesmayfall,althoughrealwagesrisesimultaneouslywithnominalwages,withthemoneyvalueoflabour,providedonlythattherealwagedoesnotriseinthesameproportionastheprofit.If,forinstance,ingoodbusinessyearswagesrise5percent,whileprofitsrise30percent,theproportional,therelativewagehasnotincreased,butdecreased.

If,therefore,theincomeoftheworkerincreasedwiththerapidgrowthofcapital,thereisatthesametimeawideningofthesocialchasmthatdividestheworkerfromthecapitalist,andincreaseinthepowerofcapitaloverlabour,agreaterdependenceoflabouruponcapital.

Tosaythat “theworkerhasaninterestintherapidgrowthofcapital”,meansonlythis:thatthemorespeedilytheworkeraugmentsthewealthofthecapitalist,thelargerwillbethecrumbswhichfalltohim,thegreaterwillbethenumberofworkersthancanbecalledintoexistence,themorecanthemassofslavesdependentuponcapitalbeincreased.

Wehavethusseenthateventhemostfavorablesituationfortheworkingclass,namely,themostrapidgrowthofcapital,howevermuchitmayimprovethemateriallifeoftheworker,doesnotabolishtheantagonismbetweenhisinterestsandtheinterestsofthecapitalist.Profitandwagesremainasbefore,ininverseproportion.

Ifcapitalgrowsrapidly,wagesmayrise,buttheprofitofcapitalrisesdisproportionatelyfaster.Thematerialpositionoftheworkerhasimproved,butatthecostofhissocialposition.Thesocialchasmthatseparateshimfromthecapitalisthaswidened.

Finally,tosaythat “themostfavorableconditionforwage-labouristhefastestpossiblegrowthofproductivecapital”,isthesameastosay:thequickertheworkingclassmultipliesandaugmentsthepowerinimicaltoit–thewealthofanotherwhichlordsoverthatclass–themorefavorablewillbetheconditionsunderwhichitwillbepermittedtotoilanewatthemultiplicationofbourgeoiswealth,attheenlargementofthepowerofcapital,contentthustoforgeforitselfthegoldenchainsbywhichthebourgeoisiedragsitinitstrain.

Growthofproductivecapitalandriseofwages,aretheyreallysoindissolublyunitedasthebourgeoiseconomistsmaintain?Wemustnotbelievetheirmerewords.Wedarenotbelievethemevenwhentheyclaimthatthefattercapitalisthemorewillitsslavebepampered.Thebourgeoisieistoomuchenlightened,itkeepsitsaccountsmuchtoocarefully,tosharetheprejudicesofthefeudallord,whomakesanostentatiousdisplayofthemagnificenceofhisretinue.Theconditionsofexistenceofthebourgeoisiecompelittoattendcarefullytoitsbookkeeping.Wemustthereforeexaminemorecloselyintothefollowingquestion:

Inwhatmannerdoesthegrowthofproductivecapitalaffectwages?

Ifasawhole,theproductivecapitalofbourgeoissocietygrows,theretakesplaceamoremany-sidedaccumulationoflabour.Theindividualcapitalsincreaseinnumberandinmagnitude.Themultiplicationsofindividualcapitalsincreasesthecompetitionamongcapitalists.Theincreasingmagnitudeofincreasingcapitalsprovidesthemeansofleadingmorepowerfularmiesofworkerswithmoregiganticinstrumentsofwarupontheindustrialbattlefield.

Theonecapitalistcandrivetheotherfromthefieldandcarryoffhiscapitalonlybysellingmorecheaply.Inordertosellmorecheaplywithoutruininghimself,hemustproducemorecheaply–i.e.,increasetheproductiveforcesoflabourasmuchaspossible.

Buttheproductiveforcesoflabourisincreasedaboveallbyagreaterdivisionoflabourandbyamoregeneralintroductionandconstantimprovementofmachinery.Thelargerthearmyofworkersamongwhomthelabourissubdivided,themoregiganticthescaleuponwhichmachineryisintroduced,themoreinproportiondoesthecostofproductiondecrease,themorefruitfulisthelabour.Andsotherearisesamongthecapitalistsauniversalrivalryfortheincreaseofthedivisionoflabourandofmachineryandfortheirexploitationuponthegreatestpossiblescale.

If,now,byagreaterdivisionoflabour,bytheapplicationandimprovementofnewmachines,byamoreadvantageousexploitationoftheforcesofnatureonalargerscale,acapitalisthasfoundthemeansofproducingwiththesameamountoflabour(whetheritbedirectoraccumulatedlabour)alargeramountofproductsofcommoditiesthanhiscompetitors–if,forinstance,hecanproduceawholeyardoflineninthesamelabour-timeinwhichhiscompetitorsweavehalf-a-yard–howwillthiscapitalistact?

Hecouldkeeponsellinghalf-a-yardoflinenatoldmarketprice;butthiswouldnothavetheeffectofdrivinghisopponentsfromthefieldandenlarginghisownmarket.Buthisneedofamarkethasincreasedinthesamemeasureinwhichhisproductivepowerhasextended.Themorepowerfulandcostlymeansofproductionthathehascalledintoexistenceenablehim,itistrue,tosellhiswaresmorecheaply,buttheycompelhimatthesametimetosellmorewares,togetcontrolofaverymuchgreatermarketforhiscommodities;consequently,thiscapitalistwillsellhishalf-yardoflinenmorecheaplythanhiscompetitors.

Butthecapitalistwillnotsellthewholeyardsocheaplyashiscompetitorssellthehalf-yard,althoughtheproductionofthewholeyardcostshimnomorethandoesthatofthehalf-yardtotheothers.Otherwise,hewouldmakenoextraprofit,andwouldgetbackinexchangeonlythecostofproduction.Hemightobtainagreaterincomefromhavingsetinmotionalargercapital,butnotfromhavingmadeagreaterprofitonhiscapitalthantheothers.Moreover,heattainstheobjectheisaimingatifhepriceshisgoodsonlyasmallpercentagelowerthanhiscompetitors.Hedrivesthemoffthefield,hewrestsfromthematleastpartoftheirmarket,byundersellingthem.

Andfinally,letusrememberthatthecurrentpricealwaysstandseitheraboveorbelowthecostofproduction,accordingasthesaleofacommoditytakesplaceinthefavorableorunfavorableperiodoftheindustry.Accordingasthemarketpriceoftheyardoflinenstandsaboveorbelowitsformercostofproduction,willthepercentagevaryatwhichthecapitalistwhohasmadeuseofthenewandmorefaithfulmeansofproductionsellabovehisrealcostofproduction.

Buttheprivilegeofourcapitalistisnotoflongduration.Othercompetingcapitalistsintroducethesamemachines,thesamedivisionoflabour,andintroducethemuponthesameorevenuponagreaterscale.Andfinallythisintroductionbecomessouniversalthatthepriceofthelinenislowerednotonlybelowitsold,butevenbelowitsnewcostofproduction.

Thecapitaliststhereforefindthemselves,intheirmutualrelations,inthesamesituationinwhichtheywerebeforetheintroductionofthenewmeansofproduction;andiftheyarebythesemeansenabledtoofferdoubletheproductattheoldprice,theyarenowforcedtofurnishdoubletheproductforlessthantheoldprice.Havingarrivedatthenewpoint,thenewcostofproduction,thebattleforsupremacyinthemarkethastobefoughtoutanew.Givenmoredivisionoflabourandmoremachinery,andthereresultsagreaterscaleuponwhichdivisionoflabourandmachineryareexploited.Andcompetitionagainbringsthesamereactionagainstthisresult.

Effect of Capitalist Competition on the Capitalist Classthe Middle Class and the Working Class

Wethusseehowthemethodofproductionandthemeansofproductionareconstantlyenlarged,revolutionized,howdivisionoflabournecessarilydrawsafteritgreaterdivisionoflabour,theemploymentofmachinerygreateremploymentofmachinery,workuponalargescaleworkuponastillgreaterscale.Thisisthelawthatcontinuallythrowscapitalistproductionoutofitsoldrutsandcompelscapitaltostrainevermoretheproductiveforcesoflabourfortheveryreasonthatithasalreadystrainedthem–thelawthatgrantsitnorespite,andconstantlyshoutsinitsear:March!march!Thisisnootherlawthanthatwhich,withintheperiodicalfluctuationsofcommerce,necessarilyadjuststhepriceofacommoditytoitscostofproduction.

Nomatterhowpowerfulthemeansofproductionwhichacapitalistmaybringintothefield,competitionwillmaketheiradoptiongeneral;andfromthemomentthattheyhavebeengenerallyadopted,thesoleresultofthegreaterproductivenessofhiscapitalwillbethathemustfurnishatthesameprice,10,20,100timesasmuchasbefore.Butsincehemustfindamarketfor,perhaps,1,000timesasmuch,inordertooutweighthelowersellingpricebythegreaterquantityofthesale;sincenowamoreextensivesaleisnecessarynotonlytogainagreaterprofit,butalsoinordertoreplacethecostofproduction(theinstrumentofproductionitselfgrowsalwaysmorecostly,aswehaveseen),andsincethismoreextensivesalehasbecomeaquestionoflifeanddeathnotonlyforhim,butalsoforhisrivals,theoldstrugglemustbeginagain,anditisallthemoreviolentthemorepowerfulthemeansofproductionalreadyinventedare.Thedivisionoflabourandtheapplicationofmachinerywillthereforetakeafreshstart,anduponanevengreaterscale.

Whateverbethepowerofthemeansofproductionwhichareemployed,competitionseekstorobcapitalofthegoldenfruitsofthispowerbyreducingthepriceofcommoditiestothecostofproduction;inthesamemeasureinwhichproductionischeapened-i.e.,inthesamemeasureinwhichmorecanbeproducedwiththesameamountoflabour–itcompelsbyalawwhichisirresistibleastillgreatercheapeningofproduction,thesaleofevergreatermassesofproductforsmallerprices.Thusthecapitalistwillhavegainednothingmorebyhiseffortsthantheobligationtofurnishagreaterproductinthesamelabour-time;inaword,moredifficultconditionsfortheprofitableemploymentofhiscapital.Whilecompetition,therefore,constantlypursueshimwithitslawofthecostofproductionandturnsagainsthimselfeveryweaponthatheforgesagainsthisrivals,thecapitalistcontinuallyseekstogetthebestofcompetitionbyrestlesslyintroducingfurthersubdivisionoflabourandnewmachines,which,thoughmoreexpensive,enablehimtoproducemorecheaply,insteadofwaitinguntilthenewmachinesshallhavebeenrenderedobsoletebycompetition.

Ifwenowconceivethisfeverishagitationasitoperatesinthemarketofthewholeworld,weshallbeinapositiontocomprehendhowthegrowth,accumulation,andconcentrationofcapitalbringintheirtrainanevermoredetailedsubdivisionoflabour,anevergreaterimprovementofoldmachines,andaconstantapplicationofnewmachine–aprocesswhichgoesonuninterruptedly,withfeverishhaste,anduponanevermoregiganticscale.

Butwhateffectdotheseconditions,whichareinseparablefromthegrowthofproductivecapital,haveuponthedeterminationofwages?

Thegreaterdivisionoflabourenablesonelabourertoaccomplishtheworkoffive,10,or20labourers;itthereforeincreasescompetitionamongthelabourersfivefold,tenfold,ortwentyfold.Thelabourerscompetenotonlybysellingthemselvesonecheaperthantheother,butalsobyonedoingtheworkoffive,10,or20;andtheyareforcedtocompeteinthismannerbythedivisionoflabour,whichisintroducedandsteadilyimprovedbycapital.

Furthermore,tothesamedegreeinwhichthedivisionoflabourincreases,isthelaboursimplified.Thespecialskillofthelabourerbecomesworthless.Hebecomestransformedintoasimplemonotonousforceofproduction,withneitherphysicalnormentalelasticity.Hisworkbecomesaccessibletoall;thereforecompetitorspressuponhimfromallsides.Moreover,itmustberememberedthatthemoresimple,themoreeasilylearnedtheworkis,somuchthelessisitscosttoproduction,theexpenseofitsacquisition,andsomuchthelowermustthewagessink–for,likethepriceofanyothercommodity,theyaredeterminedbythecostofproduction.Therefore,inthesamemannerinwhichlabourbecomesmoreunsatisfactory,morerepulsive,docompetitionincreaseandwagesdecrease.

Thelabourerseekstomaintainthetotalofhiswagesforagiventimebyperformingmorelabour,eitherbyworkingagreatnumberofhours,orbyaccomplishingmoreinthesamenumberofhours.Thus,urgedonbywant,hehimselfmultipliesthedisastrouseffectsofdivisionoflabour.Theresultis:themoreheworks,thelesswageshereceives.Andforthissimplereason:themoreheworks,themorehecompetesagainsthisfellowworkmen,themorehecompelsthemtocompeteagainsthim,andtoofferthemselvesonthesamewretchedconditionsashedoes;sothat,inthelastanalysis,hecompetesagainsthimselfasamemberoftheworkingclass.

Machineryproducesthesameeffects,butuponamuchlargerscale.Itsupplantsskilledlabourersbyunskilled,menbywomen,adultsbychildren;wherenewlyintroduced,itthrowsworkersuponthestreetsingreatmasses;andasitbecomesmorehighlydevelopedandmoreproductiveitdiscardstheminadditionalthoughsmallernumbers.

Wehavehastilysketchedinbroadoutlinestheindustrialwarofcapitalistsamongthemselves.Thiswarhasthepeculiaritythatthebattlesinitarewonlessbyrecruitingthanbydischargingthearmyofworkers.Thegenerals(thecapitalists)viewithoneanotherastowhocandischargethegreatestnumberofindustrialsoldiers.

Theeconomiststellus,tobesure,thatthoselabourerswhohavebeenrenderedsuperfluousbymachineryfindnewvenuesofemployment.Theydarenotassertdirectlythatthesamelabourersthathavebeendischargedfindsituationsinnewbranchesoflabour.Factscryouttooloudlyagainstthislie.Strictlyspeaking,theyonlymaintainthatnewmeansofemploymentwillbefoundforothersectionsoftheworkingclass;forexample,forthatportionoftheyounggenerationoflabourerswhowereabouttoenteruponthatbranchofindustrywhichhadjustbeenabolished.Ofcourse,thisisagreatsatisfactiontothedisabledlabourers.TherewillbenolackoffreshexploitablebloodandmusclefortheMessrs.Capitalists–thedeadmayburytheirdead.Thisconsolationseemstobeintendedmoreforthecomfortofthecapitaliststhemselvesthantheirlabourers.Ifthewholeclassofthewage-labourerweretobeannihilatedbymachinery,howterriblethatwouldbeforcapital,which,withoutwage-labour,ceasestobecapital!

Butevenifweassumethatallwhoaredirectlyforcedoutofemploymentbymachinery,aswellasalloftherisinggenerationwhowerewaitingforachanceofemploymentinthesamebranchofindustry,doactuallyfindsomenewemployment–arewetobelievethatthisnewemploymentwillpayashighwagesasdidtheonetheyhavelost?Ifitdid,itwouldbeincontradictiontothelawsofpoliticaleconomy.Wehaveseenhowmodernindustryalwaystendstothesubstitutionofthesimplerandmoresubordinateemploymentsforthehigherandmorecomplexones.How,then,couldamassofworkersthrownoutofonebranchofindustrybymachineryfindrefugeinanotherbranch,unlesstheyweretobepaidmorepoorly?

Anexceptiontothelawhasbeenadduced,namely,theworkerswhoareemployedinthemanufactureofmachineryitself.Assoonasthereisinindustryagreaterdemandforandagreaterconsumptionofmachinery,itissaidthatthenumberofmachinesmustnecessarilyincrease;consequently,also,themanufactureofmachines;consequently,also,theemploymentofworkersinmachinemanufacture;andtheworkersemployedinthisbranchofindustryareskilled,eveneducated,workers.

Sincetheyear1840thisassertion,whichevenbeforethatdatewasonlyhalf-true,haslostallsemblanceoftruth;forthemostdiversemachinesarenowappliedtothemanufactureofthemachinesthemselvesonquiteasextensiveascaleasinthemanufactureofcottonyarn,andthelabourersemployedinmachinefactoriescanbutplaytheroleofverystupidmachinesalongsideofthehighlyingeniousmachines.

Butinplaceofthemanwhohasbeendismissedbythemachine,thefactorymayemploy,perhaps,threechildrenandonewoman!Andmustnotthewagesofthemanhavepreviouslysufficedforthethreechildrenandonewoman?Mustnottheminimumwageshavesufficedforthepreservationandpropagationoftherace?What,then,dothesebelovedbourgeoisphrasesprove?Nothingmorethanthatnowfourtimesasmanyworkers'livesareusedupastherewerepreviously,inordertoobtainthelivelihoodofoneworkingfamily.

Tosumup:themoreproductivecapitalgrows,themoreitextendsthedivisionoflabourandtheapplicationofmachinery;themorethedivisionoflabourandtheapplicationofmachineryextend,themoredoescompetitionextendamongtheworkers,themoredotheirwagesshrinktogether.

Inaddition,theworkingclassisalsorecruitedfromthehigherstrataofsociety;amassofsmallbusinessmenandofpeoplelivingupontheinterestoftheircapitalsisprecipitatedintotheranksoftheworkingclass,andtheywillhavenothingelsetodothantostretchouttheirarmsalongsideofthearmsoftheworkers.Thustheforestofoutstretchedarms,beggingforwork,growseverthicker,whilethearmsthemselvesgroweveryleaner.

Itisevidentthatthesmallmanufacturercannotsurviveinastruggleinwhichthefirstconditionofsuccessisproductionuponanevergreaterscale.Itisevidentthatthesmallmanufacturersandtherebyincreasingthenumberofcandidatesfortheproletariat–allthisrequiresnofurtherelucidation.

Finally,inthesamemeasureinwhichthecapitalistsarecompelled,bythemovementdescribedabove,toexploitthealreadyexistinggiganticmeansofproductiononanever-increasingscale,andforthispurposetosetinmotionallthemainspringsofcredit,inthesamemeasuredotheyincreasetheindustrialearthquakes,inthemidstofwhichthecommercialworldcanpreserveitselfonlybysacrificingaportionofitswealth,itsproducts,andevenitsforcesofproduction,tothegodsofthelowerworld–inshort,thecrisesincrease.Theybecomemorefrequentandmoreviolent,iffornootherreason,thanforthisalone,thatinthesamemeasureinwhichthemassofproductsgrows,andthereforetheneedsforextensivemarkets,inthesamemeasuredoestheworldmarketshrinkevermore,andeverfewermarketsremaintobeexploited,sinceeverypreviouscrisishassubjectedtothecommerceoftheworldahithertounconqueredorbutsuperficiallyexploitedmarket.

Butcapitalnotonlylivesuponlabour.Likeamaster,atoncedistinguishedandbarbarous,itdragswithitintoitsgravethecorpsesofitsslaves,wholehecatombsofworkers,whoperishinthecrises.

Wethusseethatifcapitalgrowsrapidly,competitionamongtheworkersgrowswithevengreaterrapidity–i.e.,themeansofemploymentandsubsistencefortheworkingclassdecreaseinproportionevenmorerapidly;but,thisnotwithstanding,therapidgrowthofcapitalisthemostfavorableconditionforwage-labour.

[1] “Byclassicalpoliticaleconomy,Iunderstandthateconomywhich,sincethetimeofW.Petty,hasinvestigatedtherealrelationsofproductioninbourgeoissociety,incontradistinctiontovulgareconomy,whichdealswithappearancesonly,ruminateswithoutceasingonthematerialslongsinceprovidedbyscientificeconomy,andthereseeksplausibleexplanationsofthemostobtrusivephenomenaforbourgeoisdailyuse,butfortherestconfinesitselftosystematizinginapedanticway,andproclaimingforeverlastingtruths,triteideasheldbytheself-complacentbourgeoisiewithregardtotheirownworld,tothemthebestofallpossibleworlds.” [Marx, Capital, Volume I, p. 93]