Supplementary Explanations by Engels: The State and Revolution

by Vladimir Lenin

Marx gave the fundamentals concerning the significance of the experience of the Commune. Engels returned to the same subject time and again, and explained Marx’s analysis and conclusions, sometimes elucidating other aspects of the question with such power and vividness that it is necessary to deal with his explanations specially.

1. The Housing Question

In his work, The Housing Question (1872), Engels already took into account the experience of the Commune, and dealt several times with the tasks of the revolution in relation to the state. It is interesting to note that the treatment of this specific subject clearly revealed, on the one hand, points of similarity between the proletarian state and the present state–points that warrant speaking of the state in both cases–and, on the other hand, points of difference between them, or the transition to the destruction of the state.

“How is the housing question to be settled then? In present-day society, it is settled just as any other social question: by the gradual economic levelling of demand and supply, a settlement which reproduces the question itself again and again and therefore is no settlement. How a social revolution would settle this question not only depends on the circumstances in each particular case, but is also connected with much more far-reaching questions, one of the most fundamental of which is the abolition of the antithesis between town and country. As it is not our task to create utopian systems for the organization of the future society, it would be more than idle to go into the question here. But one thing is certain: there is already a sufficient quantity of houses in the big cities to remedy immediately all real ‘housing shortage’, provided they are used judiciously. This can naturally only occur through the expropriation of the present owners and by quartering in their houses homeless workers or workers overcrowded in their present homes. As soon as the proletariat has won political power, such a measure prompted by concern for the common good will be just as easy to carry out as are other expropriations and billetings by the present-day state.” (German edition, 1887, p. 22) Continue reading

Effect of Capitalist Competition on the Capitalist Class, the Middle Class and the Working Class: Wage Labour and Capital

by Karl Marx

We thus see how the method of production and the means of production are constantly enlarged, revolutionized, how division of labour necessarily draws after it greater division of labour, the employment of machinery greater employment of machinery, work upon a large scale work upon a still greater scale. This is the law that continually throws capitalist production out of its old ruts and compels capital to strain ever more the productive forces of labour for the very reason that it has already strained them – the law that grants it no respite, and constantly shouts in its ear: March! march! This is no other law than that which, within the periodical fluctuations of commerce, necessarily adjusts the price of a commodity to its cost of production.

No matter how powerful the means of production which a capitalist may bring into the field, competition will make their adoption general; and from the moment that they have been generally adopted, the sole result of the greater productiveness of his capital will be that he must furnish at the same price, 10, 20, 100 times as much as before. But since he must find a market for, perhaps, 1,000 times as much, in order to outweigh the lower selling price by the greater quantity of the sale; since now a more extensive sale is necessary not only to gain a greater profit, but also in order to replace the cost of production (the instrument of production itself grows always more costly, as we have seen), and since this more extensive sale has become a question of life and death not only for him, but also for his rivals, the old struggle must begin again, and it is all the more violent the more powerful the means of production already invented are. The division of labour and the application of machinery will therefore take a fresh start, and upon an even greater scale. Continue reading

The General Law that Determines the Rise and Fall of Wages and Profits: Wage Labour and Capital

by Karl Marx

We have said: “Wages are not a share of the worker in the commodities produced by him. Wages are that part of already existing commodities with which the capitalist buys a certain amount of productive labor-power.” But the capitalist must replace these wages out of the price for which he sells the product made by the worker; he must so replace it that, as a rule, there remains to him a surplus above the cost of production expended by him, that is, he must get a profit.

The selling price of the commodities produced by the worker is divided, from the point of view of the capitalist, into three parts:

First, the replacement of the price of the raw materials advanced by him, in addition to the replacement of the wear and tear of the tools, machines, and other instruments of labor likewise advanced by him;

Second, the replacement of the wages advanced; and

Third, the surplus leftover – i.e., the profit of the capitalist. Continue reading

Corporate Taxes: Now Is Not the Time for Ontario to Cut Them

Toronto Star editorial

Low corporate tax rates didn't stop Caterpillar from fleeing London, Ont.

Low corporate tax rates didn’t stop Caterpillar from fleeing London, Ont. ERIC LALMAND/AFP/GETTY IMAGES

Ontario has a $16-billion deficit and since economic growth is projected to be slower than we’re used to, there is no easy way back to balance. No wonder public concern is mounting over how the Liberal government intends to raise revenues and reduce costs in its upcoming budget.

It’s a lot of ammunition for any opposition party to work with. And, this week, Progressive Conservative Leader Tim Hudak firmly picked his battleground: more tax cuts for big business. Continue reading