The Interests of Capital and Wage-Labour Are Diametrically Opposed: Wage Labour and Capital

by Karl Marx

We thus see that, even if we keep ourselves within the relation of capital and wage-labour, the interests of capitals and the interests of wage-labour are diametrically opposed to each other.

industrial lansdscape

A rapid growth of capital is synonymous with a rapid growth of profits. Profits can grow rapidly only when the price of labour – the relative wages – decrease just as rapidly. Relative wages may fall, although real wages rise simultaneously with nominal wages, with the money value of labour, provided only that the real wage does not rise in the same proportion as the profit. If, for instance, in good business years wages rise 5 per cent, while profits rise 30 per cent, the proportional, the relative wage has not increased, but decreased.

If, therefore, the income of the worker increased with the rapid growth of capital, there is at the same time a widening of the social chasm that divides the worker from the capitalist, and increase in the power of capital over labour, a greater dependence of labour upon capital. Continue reading

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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

Communists Condemn Austerity Budget in Ontario

People’s Voice

The Communist Party of Canada (Ontario) has condemned the Ontario Budget, delivered March 27, as a massive attack on working people and the poor that will destroy tens of thousands of jobs, drive down wages, pensions, incomes and living standards. Combined with the austerity measures in the federal budget, it could push the province into another deep economic recession.

Communist Party of Canada (Ontario) leader Elizabeth Rowley

The Executive of the CPC (Ontario) also warned that the threat of legislated wage controls is a dangerous attack on free collective bargaining and on civil and democratic rights.

“There’s not much air between the Liberals and Tories when it comes to bashing workers and the poor, and restricting their rights. They both unerringly deliver the goods to Big Business, the banks and financial sector, and transnational corporations like Vale, US Steel, Caterpillar, Rio Tinto ‑ the source of the crisis in Ontario” said CPC (Ontario) leader Elizabeth Rowley. “Everything that falls in the way of bigger and bigger corporate profits is under acute attack.” Continue reading

With Tenacity, Optimism, Militancy to Decisively Strengthen the KKE

Communist Party of Greece (KKE)

Aleka Papariga, General Secretary of the Central Committee of the KKE, held a press conference 18/4 on the enormous social issue of unemployment, which now affects every Greek family, as unemployment according to official statistics has surpassed 21%, while amongst young people it is over 50%.

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As A. Papariga stressed, in the election period the question of unemployment will be used by the other parties as a theatre piece, and they foster illusions that investments which support the profitability of capital will reduce unemployment and raise wages and pensions. The KKE has a unified proposal for struggle. Continue reading

Unsustainability of Neo-Liberal Globalization and the Capitalist Crisis: Draft Ideological Resolution of the Communist Party of India (Marxist)

3.1   Such unfolding of imperialist globalization is, as we had analysed in our Party resolutions, unsustainable. Further, the 14th Congress resolution understanding that was reiterated in our Party Programme establishes the validity of Marx’s analysis of capitalism as a system that can never be either exploitation-free, or crisis-free. No amount of reform of capitalism can eliminate either or both of these fundamental characteristics as these are inextricably located in the very production process of capitalism generating its basic contradiction – between its social nature of production and individual nature of appropriation. This, in itself, negates all illusions spread by social democracy of reforming capitalism to have a ‘human face’.

 

3.2   The character and composition of labour – manual or mental (intellectual) – makes little difference to this process of exploitation. This exposes the fallacy of the argument that since the character of the working class (manual labour) has significantly altered in modern times from that of Marx’s time, and also, as the proportion of manual labour has significantly declined since Marx’s time, Marx’s analysis is no longer valid. As long as labour power produces in the capitalist production process, it is exploited and that is the source of surplus value and hence profit – the raison d’tre of capitalism. 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

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!