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

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Relation of Wage-Labour to Capital: Wage Labour and Capital

by Karl Marx

What is it that takes place in the exchange between the capitalist and the wage-labourer?

The labourer receives means of subsistence in exchange for his labour-power; the capitalist receives, in exchange for his means of subsistence, labour, the productive activity of the labourer, the creative force by which the worker not only replaces what he consumes, but also gives to the accumulated labour a greater value than it previously possessed. The labourer gets from the capitalist a portion of the existing means of subsistence. For what purpose do these means of subsistence serve him? For immediate consumption. But as soon as I consume means of subsistence, they are irrevocably lost to me, unless I employ the time during which these means sustain my life in producing new means of subsistence, in creating by my labour new values in place of the values lost in consumption. But it is just this noble reproductive power that the labourer surrenders to the capitalist in exchange for means of subsistence received. Consequently, he has lost it for himself. Continue reading

By What Are Wages Determined?: Wage Labour and Capital

by Karl Marx

Now, the same general laws which regulate the price of commodities in general, naturally regulate wages, or the price of labour-power. Wages will now rise, now fall, according to the relation of supply and demand, according as competition shapes itself between the buyers of labour-power, the capitalists, and the sellers of labour-power, the workers. The fluctuations of wages correspond to the fluctuation in the price of commodities in general. But within the limits of these fluctuations the price of labour-power will be determined by the cost of production, by the labour-time necessary for production of this commodity: labour-power.

What, then, is the cost of production of labour-power? Continue reading

By What Is the Price of a Commodity Determined?: Wage Labour and Capital

by Karl Marx

By the competition between buyers and sellers, by the relation of the demand to the supply, of the call to the offer. The competition by which the price of a commodity is determined is threefold.

The same commodity is offered for sale by various sellers. Whoever sells commodities of the same quality most cheaply, is sure to drive the other sellers from the field and to secure the greatest market for himself. The sellers therefore fight among themselves for the sales, for the market. Each one of them wishes to sell, and to sell as much as possible, and if possible to sell alone, to the exclusion of all other sellers. Each one sells cheaper than the other. Thus there takes place a competition among the sellers which forces down the price of the commodities offered by them.

But there is also a competition among the buyers; this upon its side causes the price of the proffered commodities to rise. Continue reading

Sample Resolutions from the XXI Congress of the Communist Party of India

Resolution on Agriculture and Farmers’ Plight  

The 21st Congress of the CPI expresses its anguish and deep concern over the anti-people measures pursued by the Government in the centre and the states as well across the country with regards to agriculture sector and farmers community.

While Indian agriculture scenario is becoming gloomy day by day and around 70% of the population engaged in this sector are facing severe economic crisis resulting in the incidents of suicides committed by more than 2.5 lakh farmers, the governments are mostly reluctant to address the genuine problem rather becoming rhetoric and mostly undertaking the measures which lead to more pauperization. Continue reading

Budget for the Rich, Not Workers

People’s Voice Editorial

The first Tory majority budget was delivered two days after this PV went to the printshop. But the outlines were hinted at for weeks by Conservative cabinet ministers. Like the rest of the capitalist world, Canada remains in a protracted economic crisis, and the working class will be forced to pay the price through austerity and war.

Of course, the Tories argue that their “responsible leadership” has left Canada in a relatively well-off position. Measured by the rebound in corporate profits and share prices since the 2008 meltdown, that may be true for the wealthy. But for the 1.5 million Canadians officially counted as jobless, or working people struggling to survive on low wages, or Aboriginal peoples who remain in dire poverty, there is no “recovery” or security.

Instead of tackling the serious problems of unemployment and poverty, the Tories are joining the global capitalist attack on pension eligibility. Instead of investing in desperately needed low-income housing and affordable child care, they pour billions of taxpayer dollars into prisons, cops, and military hardware. Rather than increase taxes on corporate profits, they download costs to the provinces as a way to artificially “reduce” the federal deficit.

Whenever the Harperites say that “everyone” must help to tackle the deficit, remember that Canada’s economic problems were created by big business and the wealthy – those who reap the benefits of lower taxes on profits and the highest income brackets. By “everyone”, they mean the workers who create the wealth of our society, but have no voice in determining the future of Canada. In our system, budgets are just another form of class war by the rich against the poor. More than ever, we need to build a powerful coalition of the working class and its allies to change course, to win policies for the needy, not the greedy!