System of Economical Contradictions: or, the Philosophy of Misery — Chapter 2, Section 2.2 : Constitution of Value; Definition of WealthBy Pierre-Joseph Proudhon (1846) |
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Untitled Anarchism
System of Economical Contradictions: or, the Philosophy of Misery
Chapter 2, Section 2.2
Father of Anarcho-Mutualism
: ...he turned his talents instead to the printer's trade, a profession which gave birth to many anarchists, but the first to call himself an anarchist was Proudhon. By mid-century, Proudhon was the leading left intellectual in France or for that matter, all of Europe, far surpassing Marx's notoriety or Bakunin's. Proudhon... (From: Dana Ward Bio.)
• "The revolution, in that epoch, without abandoning its first given, took another name, which was already celebrated. It called itself philosophy." (From: "Toast to the Revolution," by Pierre-Joseph Proudh....)
• "What is your flag? Association! And your motto? Equality before fortune! Where are you taking us? To Brotherhood!" (From: "Toast to the Revolution," by Pierre-Joseph Proudh....)
• "Revolutions are the successive manifestation of justice in human history. — It is for this reason that all revolutions have their origins in a previous revolution." (From: "Toast to the Revolution," by Pierre-Joseph Proudh....)
Chapter 2, Section 2.2
We know value in its two opposite aspects; we do not know it in its TOTALITY. If we can acquire this new idea, we shall have absolute value; and a table of values, such as was called for in the memoir read to the Academy of Sciences, will be possible.
Let us picture wealth, then, as a mass held by a chemical force in a permanent state of composition, in which new elements, continually entering, combine in different proportions, but according to a certain law: value is the proportional relation (the measure) in which each of these elements forms a part of the whole.
From this two things result: one, that the economists have been wholly deluded when they have looked for the general measure of value in wheat, specie, rent, etc., and also when, after having demonstrated that this standard of measure was neither here nor there, they have concluded that value has neither law nor measure; the other, that the proportion of values may continually vary without ceasing on that account to be subject to a law, whose determination is precisely the solution sought.
This idea of value satisfies, as we shall see, all the conditions: for it includes at once both the positive and fixed element in useful value and the variable element in exchangeable value; in the second place, it puts an end to the contradiction which seemed an insurmountable obstacle in the way of the determination of value; further, we shall show that value thus understood differs entirely from a simple juxtaposition of the two ideas of useful and exchangeable value, and that it is endowed with new properties.
The proportionality of products is not a revelation that we pretend to offer to the world, or a novelty that we bring into science, any more than the division of labor was an unheard-of thing when Adam Smith explained its marvels. The proportionality of products is, as we might prove easily by innumerable quotations, a common idea running through the works on political economy, but to which no one as yet has dreamed of attributing its rightful importance: and this is the task which we undertake today. We feel bound, for the rest, to make this declaration in order to reassure the reader concerning our pretensions to originality, and to satisfy those minds whose timidity leads them to look with little favor upon new ideas.
The economists seem always to have understood by the measure of value only a standard, a sort of original unit, existing by itself, and applicable to all sorts of merchandise, as the yard is applicable to all lengths. Consequently, many have thought that such a standard is furnished by the precious metals. But the theory of money has proved that, far from being the measure of values, specie is only their arithmetic, and a conventional arithmetic at that. Gold and silver are to value what the thermometer is to heat. The thermometer, with its arbitrarily graduated scale, indicates clearly when there is a loss or an increase of heat: but what the laws of heat-equilibrium are; what is its proportion in various bodies; what amount is necessary to cause a rise of ten, fifteen, or twenty degrees in the thermometer, -- the thermometer does not tell us; it is not certain even that the degrees of the scale, equal to each other, correspond to equal additions of heat.
The idea that has been entertained hitherto of the measure of value, then, is inexact; the object of our inquiry is not the standard of value, as has been said so often and so foolishly, but the law which regulates the proportions of the various products to the social wealth; for upon the knowledge of this law depends the rise and fall of prices in so far as it is normal and legitimate. In a word, as we understand by the measure of celestial bodies the relation resulting from the comparison of these bodies with each other, so, by the measure of values, we must understand the relation which results from their comparison. Now, I say that this relation has its law, and this comparison its principle.
I suppose, then, a force which combines in certain proportions the elements of wealth, and makes of them a homogeneous whole: if the constituent elements do not exist in the desired proportion, the combination will take place nevertheless; but, instead of absorbing all the material, it will reject a portion as useless. The internal movement by which the combination is produced, and which the affinities of the various substances determine -- this movement in society is exchange; exchange considered no longer simply in its elementary form and between man and man, but exchange considered as the fusion of all values produced by private industry in one and the same mass of social wealth. Finally, the proportion in which each element enters into the compound is what we call value; the excess remaining after the combination is non-value, until the addition of a certain quantity of other elements causes further combination and exchange.
We will explain later the function of money.
This determined, it is conceivable that at a given moment the proportions of values constituting the wealth of a country may be determined, or at least empirically approximated, by means of statistics and inventories, in nearly the same way that the chemists have discovered by experience, aided by analysis, the proportions of hydrogen and oxygen necessary to the formation of water. There is nothing objectionable in this method of determining values; it is, after all, only a matter of accounts. But such a work, however interesting it might be, would teach us nothing very useful. On the one hand, indeed, we know that the proportion continually varies; on the other, it is clear that from a statement of the public wealth giving the proportions of values only for the time and place when and where the statistics should be gathered we could not deduce the law of proportionality of wealth. For that, a single operation of this sort would not be sufficient; thousands and millions of similar ones would be necessary, even admitting the method to be worthy of confidence.
Now, here there is a difference between economic science and chemistry. The chemists, who have discovered by experience such beautiful proportions, know no more of their how or why than of the force which governs them. Social economy, on the contrary, to which no a posteriori investigation could reveal directly the law of proportionality of values, can grasp it in the very force which produces it, and which it is time to announce.
This force, which Adam Smith has glorified so eloquently, and which his successors have misconceived (making privilege its equal), -- this force is LABOR. Labor differs in quantity and quality with the producer; in this respect it is like all the great principles of Nature and the most general laws, simple in their action and formula, but infinitely modified by a multitude of special causes, and manifesting themselves under an innumerable variety of forms. It is labor, labor alone, that produces all the elements of wealth, and that combines them to their last molecules according to a law of variable, but certain, proportionality. It is labor, in fine, that, as the principle of life, agitates (mens agitat) the material (molem) of wealth, and proportions it.
Society, or the collective man, produces an infinitude of objects, the enjoyment of which constitutes its well-being. This well-being is developed not only in the ratio of the quantity of the products, but also in the ratio of their variety (quality) and proportion. From this fundamental datum it follows that society always, at each instant of its life, must strive for such proportion in its products as will give the greatest amount of well-being, considering the power and means of production. Abundance, variety, and proportion in products are the three factors which constitute WEALTH: wealth, the object of social economy, is subject to the same conditions of existence as beauty, the object of art; virtue, the object of morality; and truth, the object of metaphysics.
But how establish this marvelous proportion, so essential that without it a portion of human labor is lost, -- that is, useless, inharmonious, untrue, and consequently synonymous with poverty and annihilation?
Prometheus, according to the fable, is the symbol of human activity. Prometheus steals the fire of heaven, and invents the early arts; Prometheus foresees the future, and aspires to equality with Jupiter; Prometheus is God. Then let us call society Prometheus.
Prometheus devotes, on an average, ten hours a day to labor, seven to rest, and seven to pleasure. In order to gather from his toil the most useful fruit, Prometheus notes the time and trouble that each object of his consumption costs him. Only experience can teach him this, and this experience lasts throughout his life. While laboring and producing, then, Prometheus is subject to an infinitude of disappointments. But, as a final result, the more he labors, the greater is his well-being and the more idealized his luxury; the further he extends his conquests over Nature, the more strongly he fortifies within him the principle of life and intelligence in the exercise of which he alone finds happiness; till finally, the early education of the Laborer completed and order introduced into his occupations, to labor, with him, is no longer to suffer, -- it is to live, to enjoy. But the attractiveness of labor does not nullify the rule, since, on the contrary, it is the fruit of it; and those who, under the pretext that labor should be attractive, reason to the denial of justice and to communism, resemble children who, after having gathered some flowers in the garden, should arrange a flower-bed on the staircase.
In society, then, justice is simply the proportionality of values; its guarantee and sanction is the responsibility of the producer.
Prometheus knows that such a product costs an hour's labor, such another a day's, a week's, a year's; he knows at the same time that all these products, arranged according to their cost, form the progression of his wealth. First, then, he will assure his existence by providing himself with the least costly, and consequently most necessary, things; then, as fast as his position becomes secure, he will look forward to articles of luxury, proceeding always, if he is wise, according to the natural position of each article in the scale of prices. Sometimes Prometheus will make a mistake in his calculations, or else, carried away by passion, he will sacrifice an immediate good to a premature enjoyment, and, after having toiled and moiled, he will starve. Thus, the law carries with it its own sanction; its violation is inevitably accompanied by the immediate punishment of the transgressor.
Say, then, was right in saying: "The happiness of this class (the consumers), composed of all the others, constitutes the general well-being, the state of prosperity of a country." Only he should have added that the happiness of the class of producers, which also is composed of all the others, equally constitutes the general well-being, the state of prosperity of a country. So, when he says: "The fortune of each consumer is perpetually at war with all that he buys," he should have added again: "The fortune of each producer is incessantly attacked by all that he sells." In the absence of a clear expression of this reciprocity, most economical phenomena become unintelligible; and I will soon show how, in consequence of this grave omission, most economists in writing their books have talked wildly about the balance of trade.
I have just said that society produces first the least costly, and consequently most necessary, things. Now, is it true that cheapness of products is always a correlative of their necessity, and vise versa; so that these two words, necessity and cheapness, like the following ones, costliness and superfluity, are synonymes?
If each product of labor, taken alone, would suffice for the existence of man, the synonymy in question would not be doubtful; all products having the same qualities, those would be most advantageously produced, and therefore the most necessary, which cost the least. But the parallel between the utility and price of products is not characterized by this theoretical precision: either through the foresight of Nature or from some other cause, the balance between needs and productive power is more than a theory, -- it is a fact, of which daily practice, as well as social progress, gives evidence.
Imagine ourselves living in the day after the birth of man at the beginning of civilization: is it not true that the industries originally the simplest, those which required the least preparation and expense, were the following: gathering, pasturage, hunting, and fishing, which were followed long afterwards by agriculture? Since then, these four primitive industries have been perfected, and moreover appropriated: a double circumstance which does not change the meaning of the facts, but, on the contrary, makes it more manifest. In fact, property has always attached itself by preference to objects of the most immediate utility, to made values, if I may so speak; so that the scale of values might be fixed by the progress of appropriation.
In his work on the "Liberty of Labor" M. Dunoyer has positively accepted this principle by distinguishing four great classes of industry, which he arranges according to the order of their development, -- that is, from the least labor-cost to the greatest. These are extractive industry, -- including all the semi-barbarous functions mentioned above, -- commercial industry, manufacturing, industry, agricultural industry. And it is for a profound reason that the learned author placed agriculture last in the list. For, despite its great antiquity, it is certain that this industry has not kept pace with the others, and the succession of human affairs is not decided by their origin, but by their entire development. It may be that agricultural industry was born before the others, and it may be that all were contemporary; but that will be deemed of the latest date which shall be perfected last.
Thus the very nature of things, as well as his own wants, indicates to the laborer the order in which he should effect the production of the values that make up his well-being. Our law of proportionality, then, is at once physical and logical, objective and subjective; it has the highest degree of certainty. Let us pursue the application.
Of all the products of labor, none perhaps has cost longer and more patient efforts than the calendar. Nevertheless, there is none the enjoyment of which can now be procured more cheaply, and which, consequently, by our own definitions, has become more necessary. How, then, shall we explain this change? Why has the calendar, so useless to the early hordes, who only needed the alternation of night and day, as of winter and summer, become at last so indispensable, so unexpensive, so perfect? For, by a marvelous harmony, in social economy all these adjectives are interconvertible. How account, in short, by our law of proportion, for the variability of the value of the calendar?
In order that the labor necessary to the production of the calendar might be performed, might be possible, man had to find means of gaining time from his early occupations and from those which immediately followed them. In other words, these industries had to become more productive, or less costly, than they were at the beginning: which amounts to saying that it was necessary first to solve the problem of the production of the calendar from the extractive industries themselves.
Suppose, then, that suddenly, by a fortunate combination of efforts, by the division of labor, by the use of some machine, by better management of the natural resources, -- in short, by his industry, -- Prometheus finds a way of producing in one day as much of a certain object as he formerly produced in ten: what will follow? The product will change its position in the table of the elements of wealth; its power of affinity for other products, so to speak, being increased, its relative value will be proportionately diminished, and, instead of being quoted at one hundred, it will thereafter be quoted only at ten. But this value will still and always be none the less accurately determined, and it will still be labor alone which will fix the degree of its importance. Thus value varies, and the law of value is unchangeable: further, if value is susceptible of variation, it is because it is governed by a law whose principle is essentially inconstant, -- namely, labor measured by time.
The same reasoning applies to the production of the calendar as to that of all possible values. I do not need to explain how -- civilization (that is, the social fact of the increase of life) multiplying our tasks, rendering our moments more and more precious, and obliging us to keep a perpetual and detailed record of our whole life -- the calendar has become to all one of the most necessary things. We know, moreover, that this wonderful discovery has given rise, as its natural complement, to one of our most valuable industries, the manufacture of clocks and watches.
At this point there very naturally arises an objection, the only one that can be offered against the theory of the proportionality of values.
Say and the economists who have succeeded him have observed that, labor being itself an object of valuation, a species of merchandise indeed like any other, to take it as the principal and efficient cause of value is to reason in a vicious circle. Therefore, they conclude, it is necessary to fall back on scarcity and opinion.
These economists, if they will allow me to say it, herein have shown themselves wonderfully careless. Labor is said to have value, not as merchandise itself, but in view of the values supposed to be contained in it potentially. The value of labor is a figurative expression, an anticipation of effect from cause.
It is a fiction by the same title as the productivity of capital. Labor produces, capital has value: and when, by a sort of ellipsis, we say the value of labor, we make an enjambment which is not at all contrary to the rules of language, but which theorists ought to guard against mistaking for a reality. Labor, like liberty, love, ambition, genius, is a thing vague and indeterminate in its nature, but qualitatively defined by its object, -- that is, it becomes a reality through its product. When, therefore, we say: This man's labor is worth five francs per day, it is as if we should say: The daily product of this man's labor is worth five francs.
Now, the effect of labor is continually to eliminate scarcity and opinion as constitutive elements of value, and, by necessary consequence, to transform natural or indefinite utilities (appropriated or not) into measurable or social utilities: whence it follows that labor is at once a war declared upon the parsimony of Nature and a permanent conspiracy against property.
According to this analysis, value, considered from the point of view of the association which producers, by division of labor and by exchange, naturally form among themselves, is the proportional relation of the products which constitute wealth, and what we call the value of any special product is a formula which expresses, in terms of money, the proportion of this product to the general wealth. -- Utility is the basis of value; labor fixes the relation; the price is the expression which, barring the fluctuations that we shall have to consider, indicates this relation.
Such is the center around which useful and exchangeable value oscillate, the point where they are finally swallowed up and disappear: such is the absolute, unchangeable law which regulates economic disturbances and the freaks of industry and commerce, and governs progress. Every effort of thinking and laboring humanity, every individual and social speculation, as an integrant part of collective wealth, obeys this law. It was the destiny of political economy, by successively positing all its contradictory terms, to make this law known; the object of social economy, which I ask permission for a moment to distinguish from political economy, although at bottom there is no difference between them, will be to spread and apply it universally.
The theory of the measure or proportionality of values is, let it be noticed, the theory of equality itself. Indeed, just as in society, where we have seen that there is a complete identity between producer and consumer, the revenue paid to an idler is like value cast into the flames of Etna, so the laborer who receives excessive wages is like a gleaner to whom should be given a loaf of bread for gathering a stalk of grain: and all that the economists have qualified as unproductive consumption is in reality simply a violation of the law of proportionality.
We shall see in the sequence how, from these simple data, the social genius gradually deduces the still obscure system of organization of labor, distribution of wages, valuation of products, and universal solidarity. For social order is established upon the basis of inexorable justice, not at all upon the paradisical sentiments of fraternity, self-sacrifice, and love, to the exercise of which so many honorable socialists are endeavoring now to stimulate the people. It is in vain that, following Jesus Christ, they preach the necessity, and set the example, of sacrifice; selfishness is stronger, and only the law of severity, economic fatality, is capable of mastering it. Humanitarian enthusiasm may produce shocks favorable to the progress of civilization; but these crises of sentiment, like the oscillations of value, must always result only in a firmer and more absolute establishment of justice. Nature, or Divinity, we distrust in our hearts: she has never believed in the love of man for his fellow; and all that science reveals to us of the ways of Providence in the progress of society -- I say it to the shame of the human conscience, but our hypocrisy must be made aware of it -- shows a profound misanthropy on the part of God. God helps us, not from motives of goodness, but because order is his essence; God promotes the welfare of the world, not because he deems it worthy, but because the religion of his supreme intelligence lays the obligation upon him: and while the vulgar give him the sweet name Father, it is impossible for the historian, for the political economist, to believe that he either loves or esteems us.
Let us imitate this sublime indifference, this stoical ataraxia, of God; and, since the precept of charity always has failed to promote social welfare, let us look to pure reason for the conditions of harmony and virtue.
Value, conceived as the proportionality of products, otherwise called CONSTITUTED VALUE, necessarily implies in an equal degree utility and venality, indivisibly and harmoniously united. It implies utility, for, without this condition, the product would be destitute of that affinity which renders it exchangeable, and consequently makes it an element of wealth; it implies venality, since, if the product was not acceptable in the market at any hour and at a known price, it would be only a non-value, it would be nothing.
But, in constituted value, all these properties acquire a broader, more regular, truer significance than before. Thus, utility is no longer that inert capacity, so to speak, which things possess of serving for our enjoyments and in our researches; venality is no longer the exaggeration of a blind fancy or an unprincipled opinion; finally, variability has ceased to explain itself by a disingenuous discussion between supply and demand: all that has disappeared to give place to a positive, normal, and, under all possible circumstances, determinable idea. By the constitution of values each product, if it is allowable to establish such an analogy, becomes like the nourishment which, discovered by the alimentary instinct, then prepared by the digestive organs, enters into the general circulation, where it is converted, according to certain proportions, into flesh, bone, liquid, etc., and gives to the body life, strength, and beauty.
Now, what change does the idea of value undergo when we rise from the contradictory notions of useful value and exchangeable value to that of constituted value or absolute value? There is, so to speak, a joining together, a reciprocal penetration, in which the two elementary concepts, grasping each other like the hooked atoms of Epicurus, absorb one another and disappear, leaving in their place a compound possessed, but in a superior degree, of all their positive properties, and divested of all their negative properties. A value really such -- like money, first-class business paper, government annuities, shares in a well-established enterprise -- can neither be increased without reason nor lost in exchange: it is governed only by the natural law of the addition of special industries and the increase of products. Further, such a value is not the result of a compromise, -- that is, of eclecticism, juste-milieu, or mixture; it is the product of a complete fusion, a product entirely new and distinct from its components, just as water, the product of the combination of hydrogen and oxygen, is a separate body, totally distinct from its elements.
The resolution of two antithetical ideas in a third of a superior order is what the school calls synthesis. It alone gives the positive and complete idea, which is obtained, as we have seen, by the successive affirmation or negation -- for both amount to the same thing -- of two diametrically opposite concepts. Whence we deduce this corollary, of the first importance in practice as well as in theory: wherever, in the spheres of morality, history, or political economy, analysis has established the antinomy of an idea, we may affirm on a priori grounds that this antinomy conceals a higher idea, which sooner or later will make its appearance.
I am sorry to have to insist at so great length on ideas familiar to all young college graduates: but I owed these details to certain economists, who, apropos of my critique of property, have heaped dilemmas on dilemmas to prove that, if I was not a proprietor, I necessarily must be a communist; all because they did not understand thesis, antithesis, and synthesis.
The synthetic idea of value, as the fundamental condition of social order and progress, was dimly seen by Adam Smith, when, to use the words of M. Blanqui, "he showed that labor is the universal and invariable measure of values, and proved that everything has its natural price, toward which it continually gravitates amid the fluctuations of the market, occasioned by accidental circumstances foreign to the venal value of the thing."
But this idea of value was wholly intuitive with Adam Smith, and society does not change its habits upon the strength of intuitions; it decides only upon the authority of facts. The antinomy had to be expressed in a plainer and clearer manner: J. B. Say was its principal interpreter. But, in spite of the imaginative efforts and fearful subtlety of this economist, Smith's definition controls him without his knowledge, and is manifest throughout his arguments.
"To put a value on an article," says Say, "is to declare that it should be estimated equally with some other designated article. . . . . . The value of everything is vague and arbitrary until it is RECOGNIZED. . . . . ." There is, therefore, a method of recognizing the value of things, -- that is, of determining it; and, as this recognition or determination results from the comparison of things with each other, there is, further, a common feature, a principle, by means of which we are able to declare that one thing is worth more or less than, or as much as, another.
Say first said: "The measure of value is the value of an other product." Afterwards, having seen that this phrase was but a tautology, he modified it thus: "The measure of value is the quantity of another product," which is quite as unintelligible. Moreover, this writer, generally so clear and decided, embarrasses himself with vain distinctions: "We may appreciate the value of things; we cannot measure it, -- that is, compare it with an invariable and known standard, for no such standard exists. We can do nothing but estimate the value of things by comparing them." At other times he distinguishes between real values and relative values: "The former are those whose value changes with the cost of production; the latter are those whose value changes relatively to the value of other kinds of merchandise."
Singular prepossession of a man of genius, who does not see that to compare, to appraise, to appreciate, is to MEASURE; that every measure, being only a comparison, indicates for that very reason a true relation, provided the comparison is accurate; that, consequently, value, or real measure, and value, or relative measure, are perfectly identical; and that the difficulty is reduced, not to the discovery of a standard of measure, since all quantities may serve each other in that capacity, but to the determination of a point of comparison. In geometry the point of comparison is extent, and the unit of measure is now the division of the circle into three hundred and sixty parts, now the circumference of the terrestrial globe, now the average dimension of the human arm, hand, thumb, or foot. In economic science, we have said after Adam Smith, the point of view from which all values are compared is labor; as for the unit of measure, that adopted in France is the FRANC. It is incredible that so many sensible men should struggle for forty years against an idea so simple. But no: The comparison of values is effected with out a point of comparison between them, and without a unit of measure, -- such is the proposition which the economists of the nineteenth century, rather than accept the revolutionary idea of equality, have resolved to maintain against all comers. What will posterity say?
I shall presently show, by striking examples, that the idea of the measure or proportion of values, theoretically necessary, is constantly realized in everyday life.
From : Anarchy Archives
Father of Anarcho-Mutualism
: ...he turned his talents instead to the printer's trade, a profession which gave birth to many anarchists, but the first to call himself an anarchist was Proudhon. By mid-century, Proudhon was the leading left intellectual in France or for that matter, all of Europe, far surpassing Marx's notoriety or Bakunin's. Proudhon... (From: Dana Ward Bio.)
• "Revolutions are the successive manifestation of justice in human history. — It is for this reason that all revolutions have their origins in a previous revolution." (From: "Toast to the Revolution," by Pierre-Joseph Proudh....)
• "What is your flag? Association! And your motto? Equality before fortune! Where are you taking us? To Brotherhood!" (From: "Toast to the Revolution," by Pierre-Joseph Proudh....)
• "The revolution, in that epoch, without abandoning its first given, took another name, which was already celebrated. It called itself philosophy." (From: "Toast to the Revolution," by Pierre-Joseph Proudh....)
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