Marx on Economics (The Theory Labour of Value)

Marx on Economics (The Theory Labour of Value)

1. Introduction

   • 'Karl Marx Selected Writings' by David McLellan.
   • Chapter 32 'Capital' 'Volume 1'.
   • Gives critical analysis of capitalism as political economy.
   • Marx addresses nature of: commodities, wages + worker/capitalist relationship.
   • Marx tries to show ways workers =exploited by capitalist mode of production.
   • Marx = capitalist system = unstable because it can't endlessly sustain profits.

2. 'Commodities: Use Value + Exchange Value'

   • Commodity = an external subject- satisfies human need directly/ indirectly.
     • Marx states = useful things - looked at from view of quality + quantity.
       • Uses term: Use-Value - relation to commodities quality.
         • 'The usefulness of a thing makes it use-value'
           • Commodities use-value is separate to amount labour needed to make commodity useful.
             • Remember: something = a use-value doesn't have to be commodity.
               • E.g air breath = use-value but not commodity(can't buy/sell it)
   • Uses term: Exchange Value relation to commodities quantity.
     • About social context of commodity in market place.
       • Refer to: amount it is bought/sold for = 'exchange value'
         • Comes about when Exchange value of commodity = Labour invested.
           • Value of commodity = average labour power invested.
             • Marx focused on this word 'average'
               • The individual skill of worker has no effect on exchange value.
                 • Imagine 1 worker = not skilful = 3 hours make commodity.
                   • Then we've got 3 more workers = take 2 hours to make commodity.
                     • Lack of skill from 1st person isn't making impact on exchange value (average) compared to 3 workers- do it quicker.
                       • Marx is therefore talking about total time takes to make a commodity.

3. Chapter Four: 'The General Formula for Capital'

   • Capitals starting point = with circulation of commodities.
     • Ultimate product of commodity circulation = money.
       • 2 kinds of circulation:
         • 1. C-M-C (Commodities turned into money and then back into commodities).
           • e.g. Sell more to buy more.
             • 2. M-C-M (We buy in order to sell- Money is capital)
               • 1st = money into commodity 2nd = commodity into money
                 • Ultimately exchange money for money.
   • Compares C-M-C to M-C-M.
     • Similar = both involve commodities, money, buyers + sellers.
       • C-M-C = final product is a use-value and gets spent once and for all.
       • M-C-M = seller gets money back again; the money is not spent instead advanced.
         • Use-value = purpose of C-M-C. Exchange-value = purpose of M-C-M.
           • Money is recognizable only in amount.
             • Therefore in M-C-M what really happens is M-C-M1 where M1 = M +Excess.
               • Excess = called surplus value.
                 • Since M-C-M is buying to sell the cycle is endless.
                   • Money is the starting point = M1 to M11 e.t.c
                     • Therefore the possessor of money becomes = capitalist.
                       • He is a capitalist because increase wealth = sole force.
                         • M-C-M is therefore the general formula for capital.

4. Chapter Ten: 'The Working Day'

   • We've assumed cost of commodity is = labour time necessary 2 produce it.
     • However amount of labour time needed to provide subsistence doesn't = length of work day.
       • Excess time outside of necessary labour time called = surplus labour.
         • Therefore working day = changes according to amount of surplus labour.
           • Capitals drive is to create surplus value and make means of production by absorb surplus labour as possible.
             • If a worker uses excess time for himself = "robbing" the capitalist because capitalist lives surplus labour.
               • Thus Capitalist get maximum benefit from workers use-value.
                 • Workers perspective = should paid = full value of labour power.

5. 'The Fetishism of Commodities'

   • Develops relationships between commodities value + social dimension.
     • Commodities = meaningful 2 ways:
       • 1st as objects of exchange.
         • 2nd = commodities reflect, not only labour went into making them, but social relations of production in which labour performed.
           • = This Social aspect commodity can't express itself...
             • ...because = capitalist society quality of commodity - thought to emerge from price not from social labour.
               • Fact people reduce quality of commodity 2 money...
                 • Led Marx claim = capitalist society -invested money-form with mystical +magical significance.
                   • Therefore rich economists wrongly avoid looking at -commodities show in social terms.
                     • In doing this: rich are able to ignore the fact that commodities emerge through exploitative system of wage power.