"Haven’t read V. II or the Grundrisse either."
Comment by louisproyect — October 23, 2016 @ 9:56 pm
Real men don't read v2, v3, the Grundrisse, the rest of the Economic Manuscripts, or any of that super-intellectual bunk.
October 25, 2016
In The China Price Tony Norfield recounts the story of a T-shirt made in Bangladesh and sold in Germany for €4.95 by the Swedish retailer Hennes & Mauritz (H&M). H&M pays the Bangladeshi manufacturer €1.35 for each T-shirt, 28 percent of the final sale price, 40¢of which covers the cost of 400g of cotton raw material imported form the United States; shipping to Hamburg adds another 6¢ per shirt. Thus €0.95 of the final sale price remains in Bangladesh, to be shared between the factory owner, the workers, the suppliers of inputs and services and the Bangladeshi government, expanding Bangladesh'a GDP by this amount. The remaining €3.54 counts toward the GDP of Germany, the country where the T-shirt is consumed, and is broken down as follows: €2.05 provides for the costs and profits of German transporters, wholesalers, retailers, advertisers, etc., (some of which will revert to the state through various taxes); H&M makes a 60¢ profit per shirt; the German state captures 79¢ through VAT at 19 percent; 16¢ covers sundry "other items." Thus in Norfield's words, " a large chunk of the revenue from the selling prices goes to the state in taxes and to a wide range of workers, executives, landlords, and businesses in Germany. The cheap T-shirts, and a wide range of other imported goods, are both affordable for consumers and an important source of income for the states and for all the people in the richer countries."Short version? Astounding news-- merchandisers buy low to sell high.
...low wages in Bangladesh help explain "why the richer countries can have lots of shop assistants, delivery drivers, managers and administrators, accountants, advertising and a wide range of welfare payments and much else besides."Really? The richer countries had lots of shop assistants, delivery drivers, managers, administrators, accountants and an ever wider range of welfare payments before Bangladesh became a contract producer for H&M; before China gained full membership in the WTO in 2001; before the MFA (Multi-Fiber Agreement, or Multi-Fibre Accordance) expired in 2005 and China doubled its portion of global clothing exports.
...oppression of workers in the poorer countries is a direct economic benefit for the mass of people in the richer countries.Fecking brilliant, ain't it?
The vast wave of outsourcing of production process to low-wage countries, enabled by the fortuitous arrival of ICT and rapid advances in transportation technology, was a strategic response to the twin crises of declining profitability and overproduction that resurfaced in the 1970s in the form of stagflation and synchronized global recession.Show of hands anybody? I know of at least one hand not clapping for this. I know of at least one hand, arm, head, trunk, etc that argues the "fortuitous arrival" of ICT and transportation technology (by which Mr. Smith means containerization of maritime merchandise traffic) was not fortuitous, and moreover could not have been both "fortuitous" and strategic-- ("adj. Latin, fortuitus, from forte, by chance, from fors chance, luck + ous: That is due to or produced by chance, accidental, casual." OED); that both had been a long time coming, a long time in the making, and had been part of the very process of declining profitability and overproduction.
This course was conditioned by imperialists' reluctance to reverse the expensive concessions that helped convert the workers of the Global North into passive bystanders, or even accomplices, to their subjugation of the rest of the world.Hands up? Hands not clapping? Heads not nodding in agreement? Voices not raised singing the praises of this "new" theory of imperialism that boils itself down to the same-old same-old conclusions of the 40 year old, 50 year old, 100 year old "theories" of imperialism; the same-old, same-old conclusion from the same-old, same-old theories that says workers in advanced countries are accomplices of the bourgeoisie in the exploitation of workers, subsistence producers, small capitalists, peasants, in less advanced countries?
...profits, prosperity, and social peace in the imperialist countries have become qualitatively more dependent upon the proceeds of super-exploitation of living labor in countries like Vietnam, Mexico...So hands up if you think any of this, this real world we live in now, this real world of high-wage capitalism and low-wage capitalism, feels anything or anywhere like "prosperity" and social peace?
a. improved turnover, reduced time of production and reduced time of circulation
b. access to supplies of cheap labor, internally through "interior migration" as the new sources of wage-labor are brought into production-- for example, the repeated waves of entry of women into the labor force in both "advanced" and "developing"countries in the latter half of the 20th century; or through "exterior migration," the importation of new sources of labor from beyond national borders, migrant labor subject to less protection, reduced wages, and particularly a reduced portion of the social wage
c. the emigration of capital, through both direct investment and outsourcing bringing the virtues of exploitation to a neighborhood not always near you or just like yours.
d. attacks on labor power at home and abroad, at different or the same times, to drive the wage below the value of labor, below its cost of reproduction. The "value of labor" we already know is always dependent on a portion of labor power not being reproduced.(a) When capital embarks on the expansion of the machinery of production, of the value of these means, the point of the expansion is to turn the expanded value embedded in these means into even greater masses of value circulating in the markets, achieving realization. The expansion of production is accompanied, if not preceded by, improvement in the means of transportation and communication, reducing the lag between expropriation of surplus value in production and materialization of the surplus value as money. Improvements in turnover derived from reductions in production time and circulation, allow the capitalist to retrieve the value of the initial capital advanced to initiate production, and recycle that value into the material means and living labor of further production cycles. If the initial turnover is successful, then the purchase of additional material and labor-power for subsequent cycles of turnover are, in a sense, "pre-paid," requiring no additional outlay...until one of those subsequent cycles is not so successful.
Competition, according to an American economist, determines how many days of simple labour are contained in one day’s compound labour. Does not this reduction of days of compound labour to days of simple labour suppose that simple labour is itself taken as a measure of value? If the mere quantity of labour functions as a measure of value regardless of quality, it presupposes that simple labour has become the pivot of industry. It presupposes that labour has been equalized by the subordination of man to the machine or by the extreme division of labour; that men are effaced by their labour; that the pendulum of the clock has become as accurate a measure of the relative activity of two workers as it is of the speed of two locomotives. Therefore, we should not say that one man’s hour is worth another man’s hour, but rather that one man during an hour is worth just as much as another man during an hour. Time is everything, man is nothing; he is, at the most, time’s carcass. Quality no longer matters. Quantity alone decides everything; hour for hour, day for day; but this equalising of labour is not by any means the work of M. Proudhon’s eternal justice; it is purely and simply a fact of modern industry.
In the automatic workshop, one worker’s labour is scarcely distinguishable in any way from another worker’s labour: workers can only be distinguished one from another by the length of time they take for their work. Nevertheless, this quantitative difference becomes, from a certain point of view, qualitative, in that the time they take for their work depends partly on purely material causes, such as physical constitution, age and sex; partly on purely negative moral causes, such as patience, imperturbability, diligence. In short, if there is a difference of quality in the labour of different workers, it is at most a quality of the last kind, which is far from being a distinctive speciality. This is what the state of affairs in modern industry amounts to in the last analysis3. Relatively Unambiguous....or not
Given the length of the working-day, the prolongation of the surplus-labour must of necessity originate in the curtailment of the necessary labour-time; the latter cannot arise from the former. In the example we have taken, it is necessary that the value of labour power should actually fall by one-tenth, in order that the necessary labour-time may be diminished by one-tenth, i.e., from ten hours to nine, and in order that the surplus labour may consequently be prolonged from two hours to three.
Such a fall in the value of labour-power implies, however, that the same necessaries of life which were formerly produced in ten hours, can now be produced in nine hours. But this is impossible without an increase in the productiveness of labour. For example, suppose a shoe-maker, with given tools, makes in one working day of twelve hours, one pair of boots. If he must make two pairs in the same time, the productiveness of his labour must be doubled; and this cannot be done, except by an alteration in his tools or in his mode of working, or in both. Hence, the conditions of production, i.e., his mode of production, and the labour-process itself, must be revolutionised. By increase in the productiveness of labour, we mean, generally, an alteration in the labour-process, of such a kind as to shorten the labour-time socially necessary for the production of a commodity, and to endow a given quantity of labour with the power of producing a greater quantity of use-value. Hitherto in treating of surplus-value, arising from a simple prolongation of the working day, we have assumed the mode of production to be given and invariable. But when surplus-value has to be produced by the conversion of necessary labour into surplus-labour, it by no means suffices for capital to take over the labour-process in the form under which it has been historically handed down, and then simply to prolong the duration of that process. The technical and social conditions of the process, and consequently the very mode of production must be revolutionised, before the productiveness of labour can be increased. By that means alone can the value of labour-power be made to sink, and the portion of the working day necessary for the reproduction of that value, be shortened.
The surplus-value produced by prolongation of the working day, I call absolute surplus-value. On the other hand, the surplus-value arising from the curtailment of the necessary labour-time, and from the corresponding alteration in the respective lengths of the two components of the working day, I call relative surplus-value.
In order to effect a fall in the value of labour-power, the increase in the productiveness of labour must seize upon those branches of industry whose products determine the value of labour-power, and consequently either belong to the class of customary means of subsistence, or are capable of supplying the place of those means. But the value of a commodity is determined, not only by the quantity of labour which the labourer directly bestows upon that commodity, but also by the labour contained in the means of production. For instance, the value of a pair of boots depends not only on the cobbler’s labour, but also on the value of the leather, wax, thread, &c. Hence, a fall in the value of labour-power is also brought about by an increase in the productiveness of labour, and by a corresponding cheapening of commodities in those industries which supply the instruments of labour and the raw material, that form the material elements of the constant capital required for producing the necessaries of life. But an increase in the productiveness of labour in those branches of industry which supply neither the necessaries of life, nor the means of production for such necessaries, leaves the value of labour-power undisturbed.
The cheapened commodity, of course, causes only a pro tanto fall in the value of labour-power, a fall proportional to the extent of that commodity’s employment in the reproduction of labour-power. Shirts, for instance, are a necessary means of subsistence, but are only one out of many. The totality of the necessaries of life consists, however, of various commodities, each the product of a distinct industry; and the value of each of those commodities enters as a component part into the value of labour-power. This latter value decreases with the decrease of the labour-time necessary for its reproduction; the total decrease being the sum of all the different curtailments of labour-time effected in those various and distinct industries. This general result is treated, here, as if it were the immediate result directly aimed at in each individual case. Whenever an individual capitalist cheapens shirts, for instance, by increasing the productiveness of labour he by no means necessarily aims at reducing the value of labour-power and shortening, pro tanto the necessary labour-time. But it is only in so far as he ultimately contributes to this result, that he assists in raising the general rate of surplus-value. The general and necessary tendencies of capital must be distinguished from their forms of manifestation...
If one hour’s labour is embodied in sixpence, a value of six shillings will be produced in a working day of 12 hours. Suppose, that with the prevailing productiveness of labour, 12 articles are produced in these 12 hours. Let the value of the means of production used up in each article be sixpence. Under these circumstances, each article costs one shilling: sixpence for the value of the means of production, and sixpence for the value newly added in working with those means. Now let some one capitalist contrive to double the productiveness of labour, and to produce in the working day of 12 hours, 24 instead of 12 such articles. The value of the means of production remaining the same, the value of each article will fall to ninepence, made up of sixpence for the value of the means of production and threepence for the value newly added by the labour. Despite the doubled productiveness of labour, the day’s labour creates, as before, a new value of six shillings and no more, which, however, is now spread over twice as many articles. Of this value each article now has embodied in it 1/24th, instead of 1/12th, threepence instead of sixpence; or, what amounts to the same thing, only half an hour’s instead of a whole hour’s labour-time, is now added to the means of production while they are being transformed into each article. The individual value of these articles is now below their social value; in other words, they have cost less labour-time than the great bulk of the same article produced under the average social conditions. Each article costs, on an average, one shilling, and represents 2 hours of social labour; but under the altered mode of production it costs only ninepence, or contains only 1½ hours’ labour. The real value of a commodity is, however, not its individual value, but its social value; that is to say, the real value is not measured by the labour-time that the article in each individual case costs the producer, but by the labour-time socially required for its production. If therefore, the capitalist who applies the new method, sells his commodity at its social value of one shilling, he sells it for threepence above its individual value, and thus realises an extra surplus-value of threepence. On the other hand, the working day of 12 hours is, as regards him, now represented by 24 articles instead of 12. Hence, in order to get rid of the product of one working day, the demand must be double what it was, i.e., the market must become twice as extensive. Other things being equal, his commodities can command a more extended market only by a diminution of their prices. He will therefore sell them above their individual but under their social value, say at tenpence each. By this means he still squeezes an extra surplus-value of one penny out of each. This augmentation of surplus-value is pocketed by him, whether his commodities belong or not to the class of necessary means of subsistence that participate in determining the general value of labour-power. Hence, independently of this latter circumstance, there is a motive for each individual capitalist to cheapen his commodities, by increasing the productiveness of labour.
Nevertheless, even in this case, the increased production of surplus-value arises from the curtailment of the necessary labour-time, and from the corresponding prolongation of the surplus-labour. Let the necessary labour-time amount to 10 hours, the value of a day’s labour-power to five shillings, the surplus labour-time to 2 hours, and the daily surplus-value to one shilling. But the capitalist now produces 24 articles, which he sells at tenpence a-piece, making twenty shillings in all. Since the value of the means of production is twelve shillings, 14 2/5 of these articles merely replace the constant capital advanced. The labour of the 12 hours’ working day is represented by the remaining 9 3/5 articles. Since the price of the labour-power is five shillings, 6 articles represent the necessary labour-time, and 3 3/5 articles the surplus-labour. The ratio of the necessary labour to the surplus-labour, which under average social conditions was 5:1, is now only 5:3. The same result may be arrived at in the following way. The value of the product of the working day of 12 hours is twenty shillings. Of this sum, twelve shillings belong to the value of the means of production, a value that merely re-appears. There remain eight shillings, which are the expression in money, of the value newly created during the working day. This sum is greater than the sum in which average social labour of the same kind is expressed: twelve hours of the latter labour are expressed by six shillings only. The exceptionally productive labour operates as intensified labour; it creates in equal periods of time greater values than average social labour of the same kind. (See Ch. I. Sect 2. p. 44.) But our capitalist still continues to pay as before only five shillings as the value of a day’s labour-power. Hence, instead of 10 hours, the labourer need now work only 7½ hours, in order to reproduce this value. His surplus-labour is, therefore, increased by 2½ hours, and the surplus-value he produces grows from one, into three shillings. Hence, the capitalist who applies the improved method of production, appropriates to surplus-labour a greater portion of the working day, than the other capitalists in the same trade. He does individually, what the whole body of capitalists engaged in producing relative surplus-value, do collectively. On the other hand, however, this extra surplus-value vanishes, so soon as the new method of production has become general, and has consequently caused the difference between the individual value of the cheapened commodity and its social value to vanish. The law of the determination of value by labour-time, a law which brings under its sway the individual capitalist who applies the new method of production, by compelling him to sell his goods under their social value, this same law, acting as a coercive law of competition, forces his competitors to adopt the new method. The general rate of surplus-value is, therefore, ultimately affected by the whole process, only when the increase in the productiveness of labour, has seized upon those branches of production that are connected with, and has cheapened those commodities that form part of, the necessary means of subsistence, and are therefore elements of the value of labour-power.
The value of commodities is in inverse ratio to the productiveness of labour. And so, too, is the value of labour-power, because it depends on the values of commodities. Relative surplus-value is, on the contrary, directly proportional to that productiveness. It rises with rising and falls with falling productiveness. The value of money being assumed to be constant, an average social working day of 12 hours always produces the same new value, six shillings, no matter how this sum may be apportioned between surplus-value and wages. But if, in consequence of increased productiveness, the value of the necessaries of life fall, and the value of a day’s labour-power be thereby reduced from five shillings to three, the surplus-value increases from one shilling to three. Ten hours were necessary for the reproduction of the value of the labour-power; now only six are required. Four hours have been set free, and can be annexed to the domain of surplus-labour. Hence there is immanent in capital an inclination and constant tendency, to heighten the productiveness of labour, in order to cheapen commodities, and by such cheapening to cheapen the labourer himself.
Straight forward as can be, right? Capitalism revolutionizes the mode of production, driving the costs of production of the necessities of life down, diminishing thereby the value of labor-power, and since commodities exchange at their value, more or less, at least in the abstract, and because labor-power is compelled to present itself as a commodity for exchange, its value, as expressed in the wage, declines, and it takes less time for the laborers to reproduce the value equivalent to their wage.
The value of a commodity is, in itself, of no interest to the capitalist. What alone interests him, is the surplus-value that dwells in it, and is realisable by sale. Realisation of the surplus-value necessarily carries with it the refunding of the value that was advanced. Now, since relative surplus-value increases in direct proportion to the development of the productiveness of labour, while, on the other hand, the value of commodities diminishes in the same proportion; since one and the same process cheapens commodities, and augments the surplus-value contained in them; we have here the solution of the riddle: why does the capitalist, whose sole concern is the production of exchange-value, continually strive to depress the exchange-value of commodities?
But an increase in the productiveness of labour in those branches of industry which supply neither the necessaries of life, nor the means of production for such necessaries, leaves the value of labour-power undisturbed.Now there is a level of uncertainty as to what constitutes the "necessaries" and/or "the means of production for such necessaries," an uncertainty that needs to be engaged....later. Here and now, however, Marx demonstrates the advantage to all capitalist production inherent in advancing the productivity of labor. That advantage is the reduction in the cost , and the ability to arbitrage the variance between the commodity's individual value and its social value through the price mechanism.
Machinery produces relative surplus-value; not only by directly depreciating the value of labour-power, and by indirectly cheapening the same through cheapening the commodities that enter into its reproduction, but also, when it is first introduced sporadically into an industry, by converting the labour employed by the owner of that machinery, into labour of a higher degree and greater efficacy, by raising the social value of the article produced above its individual value, and thus enabling the capitalist to replace the value of a day’s labour-power by a smaller portion of the value of a day’s product. During this transition period, when the use of machinery is a sort of monopoly, the profits are therefore exceptional, and the capitalist endeavours to exploit thoroughly “the sunny time of this his first love,” by prolonging the working-day as much as possible. The magnitude of the profit whets his appetite for more profit."To replace the value of a day's labour power by a smaller portion of the value of a day's product," in this manner is not the extraction of greater relative surplus value, when the total value itself drops proportionately to the labor-power deployed. It is again the redistribution of the total surplus value thrown into the markets by all producers, and the "exceptional" profits disappear as soon as the enhanced productivity of labor becomes standard. Then there is no arbitrage to be conducted between the individual and social value of the commodity:
As the use of machinery becomes more general in a particular industry, the social value of the product sinks down to its individual value, and the law that surplus-value does not arise from the labour-power that has been replaced by the machinery, but from the labour-power actually employed in working with the machinery, asserts itself.6. And This One
Generally speaking, the mode of producing relative surplus-value consists in raising the productive power of the workman, so as to enable him to produce more in a given time with the same expenditure of labour. Labour-time continues to transmit as before the same value to the total product, but this unchanged amount of exchange-value is spread over more use-value; hence the value of each single commodity sinks. Otherwise, however, so soon as the compulsory shortening of the hours of labour takes place. The immense impetus it gives the development of productive power, and to economy in the means of production, imposes on the workman increased expenditure of labour in a given time, heightened tension of labour-power, and closer filling up of the pores of the working-day, or condensation of labour to a degree that is attainable only within the limits of the shortened working-day. This condensation of a greater mass of labour into a given period thenceforward counts for what it really is, a greater quantity of labour. In addition to a measure of its extension, i.e., duration, labour now acquires a measure of its intensity or of the degree of its condensation or density. The denser hour of the ten hours’ working-day contains more labour, i.e., expended labour-power than the more porous hour of the twelve hours’ working-day. The product therefore of one of the former hours has as much or more value than has the product of 1 1/5 of the latter hours. Apart from the increased yield of relative surplus-value through the heightened productiveness of labour, the same mass of value is now produced for the capitalist say by 3 1/3 hours of surplus-labour, and 6 2/3 hours of necessary labour, as was previously produced by four hours of surplus-labour and eight hours of necessary labour.Marx has dropped the determining condition for expanding relative surplus value, the reduction in the value of the commodities that make up the value, the necessary time for reproducing the laborer.
The exceptionally productive labour operates as intensified labour; it creates in equal periods of time greater values than average social labour of the same kind.But we know that this is not the case. In fact, in Chapter 17, Marx is writing this:
Increased intensity of labour means increased expenditure of labour in a given time. Hence a working-day of more intense labour is embodied in more products than is one of less intense labour, the length of each day being the same. Increased productiveness of labour also, it is true, will supply more products in a given working-day. But in this latter case, the value of each single product falls, for its costs less labour than before; in the former case, that value remains unchanged, for each costs the same labour as before.Costs whom the same labor as before? Certainly not the capitalist. Marx stipulates that the times of production are equal, and when production times are equal and a greater quantity of commodities are produced, the costs to the capitalist of the new value supplied by living labor do not change, and the costs of the labor embodied in each unit drop.
Here we have an increase in the number of products, unaccompanied by a fall in their individual prices: as their number increases so does the sum of their prices. But in the case of increased productiveness, a given value is spread over a greater mass of products. Hence, the length of the working-day being constant, day's labor of increased intensity will be incorporated in an increased value, and, the value of money remaining unchanged, in more money. The value created varies with with the extent to which the intensity of labour deviates from its normal intensity in the society. A given working day therefore no longer creates a constant, but a variable value; in a day of 12 hours of ordinary intensity, the value created is, say 6 shillings, but with increased intensity, the value created may be 7,8, or more shillings. It is clear that, if the value created by a day's labour increases from, say, 6 to 8 shillings then the two parts into which this value is divided, viz., the price of labour power and surplus-value, may both of them increase and simultaneously, and either equally or unequally. Here the rise in the price of the labour power does not necessarily imply that the price has risen above the value of labour power. On the contrary the rise in price may be accompanied by a fall in value. This occurs whenever the price of labour power does not compensate for its increased wear and tear.Marx here has brought us back to the case where labor power is not compensated at its value, at the cost of its reproduction, which however, is exactly the case that Marx has to put to one side to begin his critique of exchange value, of capitalist commodity production, of surplus value.
If the intensity of labour were to increase simultaneously and equally in every branch of industry, then the new and higher degree of intensity would become the normal degree of intensity would become the normal degree for the society, and would therefore cease to be taken account of.Sounds familiar, doesn't it?