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Unformatted text preview: Capital Capital Das Kapital Its relevance in 2012 Marx’s Capital Marx’s Students are not required to read Marx’s Students Capital. However, for those of you who are curious, here is an overview of it. At the end of this powerpoint, I will indicate those concepts which I would like all of you to critically think about. you I. Commodities and Money I. Capitalist Society- “immense accumulation Capitalist of commodities” (303) of Usefulness of a thing: Use Value [cp Usefulness exchange value cp surplus value] exchange Use Value Use an innate value of an object’s usefulness sewing needles have use value, because we can use sewing sewing needles to sew and make or fix clothing and such Exchange Value Exchange iit changes constantly with time and place (e.g. a cup of corn may be t worth a lot in the Middle Ages, but not so much in the 21st century. it is the proportion by which use values of one sort are exchanged for use values of another sort. i.e.: when a “quarter of wheat” is exchanged for y silk, or z gold. (304). [Barter System] silk, THIRD factor. THIRD “ ‘ products of labour” (305). the exchange value may be whatever one thinks it to be, based on how much labor [and its value] is put into them i.e. Agricultural goods of Kenya versus technological goods from Finland II: The Transformation of Money into Capital The General Formula for Capital The The Starting Point of Capital: Circulation of The Commodities Commodities Final Product of the Circulation of Commodities: Final Money Money “The first distinction we notice between The money that is money only, and money that is capital, is nothing more than a difference in their form of circulation” (329). -money vs. capital-> form of circulation. -money C C = Capital C = Commodity C-M-C: You sell your commodity to get a C-M-C: commodity. i.e. You sell your cow’s milk to get some bread at the baker’s. (use value – use for reproduction) reproduction) M-C-M: You buy in order to sell. i.e. You buy M-C-M: beads and string to make into necklaces, which you are going to sell for a profit. But, M-C-M is really M-C-M’, where M’= M + excess, which is Surplus Value. (C-M: a sale M-C: a purchase) (C-M: Surplus Value Surplus 1. Surplus value through sale of commodity at a higher price than 1. price of purchase ‘Mercantilist Capital’ – Mercantilist 2. Surplus value from surplus labour 2. [Monsieur Raffa’s labour in the napsacks] 3. Madame Charmante invested C1 in production process = 3. purchase of means of production + labour power as commodity, by extracting surplus labour from Raffa, she ends up with C 2 C2 invested in production process = C3 [accumulation of capital] The Buying and Selling of LabourThe Power for labor power to be offered as a commodity, certain for conditions must be fulfilled: conditions Labour-power can only be taken as a commodity if its Labour-power possessor is willing to sell it as a commodity. For this to happen, the possessor must be the owner of her own labour, so, not a slave. He and the person that he is selling his labor to has to meet at the market on the basis of equal rights, the only difference being that one is a buyer and the other, a seller. The person selling his/her labor needs to sell it only for a definite period and must look upon his/her labour as a commodity. and The laborer cannot sell the commodities that his/her The labor has gone into. Instead, he/she must be “obliged” to sell his/her labor power as a commodity. To sell the commodity that his/her labor had gone into, the laborer would need to own the means of production. The Value of Labour Power is determined by how long The the production or reproduction of something takes. -The production of labor-power for an individual -The consists “in his reproduction of himself or his maintenance” (339). But, for the maintenance of the individual, he/she needs a certain amount of time for subsistence. For this subsistence, the worker requires a certain amount of average income: certain -> 365A + 52B + 4C + &c. -> 365A 365 This is the “minimum limit of the value of labour-power” This (minimum wage). (341) (minimum III: The Production of Absolute Surplus-Value Absolute The Working Day Working Day 1 A-----------B---C (1/6)* Working Day 2 A---------B-----C (3/6)* Working Day 3 A-------B-------C (6/6)* AB: necessary working AB: time time BC: surplus labor *the ratio of BC to AB As you can see from the example, As the AB and BC do not necessarily say how long the two parts have to be. Just their relation to each other is shown in this model. So, the working-day is not So, constant but a “variable quantity”, meaning that the working day is based on the amount of surplus labor. Of course, there has to be a limit of this surplus labor, but there isn’t really any except such bounds like physical-bounds of labor power and moral restraints. But the capitalist is “vampire-like” (362) and wants to But suck out “living labour, and lives the more, the more labour it sucks” (363). The capitalist wants to get the most he/she can out of his worker. But the worker becomes angry and demands a reasonable working day. The worker complains that the capitalist pays him/her one day’s labour power, while making the worker work three days. Of course, as the purchaser, the capitalist has the right Of to try and make the worker work as long as possible, but the labourer still needs to retain his right as the seller of his commodity. Hence, there is a struggle between the two groups. between IV: Production of Relative Surplus-Value The Concept of Relative Surplus-Value Surplus-Value a----------b----c (a working day of 12 hours) ab : 10 hours of necessary labor bc : 2 hours of surplus labor relative surplus value: making the worker relative work faster in the same amount of time absolute surplus value: prolongation of the absolute working day working Machinery and Modern Industry “Oh! those heathens!” (406) “Oh! Machinery: makes commodities cheaper & shortens the portion of the Machinery: working day in which the laborer works for herself and lengthens the portion of the day that she works for the capitalist. Relative surplus value: So, it’s like this: a-------b-----------c Because machinery lets workers work faster, the workers Because can do a lot of work in a short amount of time. But, since the capitalist wants as much out of the workers as possible, the capitalist makes the workers still work the full workday (let’s say, 12 hours) and so obtains surplus-value. Also, machinery gets rid of the need for muscular power, and so the Also, labor of women and children are used. So, machinery “spreads the value of the man’s labour-power over his whole family”, thus depreciating his labour-power (404). Machinery also transforms the worker to an appendage of the Machinery machine. The worker becomes dependent on the machine & the capitalist. Also, the machine deprives the work of the little interest there was, thereby ALIENATING the worker. was, The General Law of Capitalist Accumulation Accumulation Value is divided Value into Constant Capital or Value of the Means of Production Production All Capital is All divided into Means of Production and Living LaborLiving Power Laboring Population: Relative SurplusPopulation (Industrial Reserve Army) Higher wages = rapid multiplication of the Higher working population working results in the overflowing of the labor markets, results and so, wages fall. But this is a cycle: it happens over and over But again. Relative surplus-population is the PIVOT upon Relative which the Law of Demand and Supply of Labour works (427). Now, exactly, what is this “relative surplus-population”? ‘Lumpenproletariat’ Every laborer belongs to it when he/she is only partially employed or unemployed. The lowest part of the relative surplus- population 1. those able to work 2. orphans and pauper children 2. (candidates for the industrial reserve army) army) 3. those unable to work. The demoralized 3. and “ragged” and “Pauperism is… the dead weight of the Pauperism industrial reserve army” (429). industrial 2012 2012 Berkeley: 4th Street Corner, Every Morning between 6.00-10:00 1944-1975-2009 1944-1975-2009 Capital for productive purposes – productive Capital capital [equation: prod growth = f [L, R, C] C-M[surplus value]-C’; C’-M-C’’ Capital for non-productive purposes Capital Finance Capital [1912 and 1929! Wall Street Finance Crash] Crash] Speculative capital [1987- and 2008 – Wall Speculative Street Crash] Global financial markets – and global financial Global regimes [Bank of London/Wall Street 1987 deregulation – The Economist] Trade [1975 Trade in Commodities Trade in Financial Products [Derivatives, Trade Futures, Hedge Funds, Currencies, Stocks] accelerated by way of the information technological revolution Trade in Speculative Financial Products Trade in Commodities/Exchange on the basis of Money 1944 – Bretton Woods – WB, IMF [Northern 1944 Institutions] Dollar pegged to Gold – currencies pegged to Dollar Dollar 1971 – Dollar de-linked from Gold – currencies 1971 pecked to Dollar 1989 - State reserves delinked from Dollar 1989 2007 Banco del Sur [new global banks 2007 emerging] emerging] ‘Sovereign Funds’ – Emergence of Southern Sovereign Institutions – China, India, Brazil, Russia 1975 – Cycles of Capitalism – Law of the Tendency of Fall of Profits Contraction of northern capitalism [capital accumulation Contraction not expanding] and by 2000 expansion of production in China, Asia-Pacific, -South America China, Responses: Responses: Europe: European Union – One Economy and one Europe: Market [500 Million] [Social Measures: west-east] Market US- Acceleration of Speculative Capital largely outside USthe constraints of state regulations [Social Measures: ?] 1944-2008 – Doubling of World Population 1944-2008 Gramsci in 1930: what will happen when the epicentre of Gramsci economic weight will move from the Atlantic to the Pacific? Pacific? 1848-1868-1870 Grundrisse and Capital Grundrisse Contraction Cycles Contraction Rise in working class consciousness Revolt and revolution Revolt 1870-1900 Building of a Political Working 1870-1900 Class – Socialist Parties 1848-2012 1848-2012 Agricultural production Industrial production Industrial ‘Service’ production - [information industry] - banking, finance banking, - health industry - service industry – - retail, catering, - transportation - McDonalds jobs versus outsourcing McDonalds What we need to think about: What 1. General evolution of transatlantic capitalism – 1. 1850-2012 [relations to other parts of the world] 1850-2012 2. Value of agricultural production and industrial 2. production in relation to informational technological production technological 3. Law of the tendency of the fall of profits 3. [crises in capitalism] [crises 4. Reaction of governments + economic elites to 4. this Law [1929! in Germany … fascism] 5. Reactions of populations under conditions of 5. the manufacturing of consent [media politics] the ...
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