,! ,ACCUMULATION ( ,CAPITAL3 ,AN ,ANTI-,CRITIQUE 

,PEOPLE 3 

,AU?OR 3 ,ROSA ,LUXEMBURG 

,SECTIONS 7,T,O,C7 3 
     

O ,*APT] #a 3 ,! ,QUE/IONS ,AT ,ISSUE 

      #f1#c#f#c ,WORDS2 #d1#f#h#g ,*>ACT]S     

O ,*APT] #b 3 ,! ,CRITICS 

      #a#a1#b#d#g ,WORDS2 #g#d1#g#e ,*>ACT]S     

O ,*APT] #c 3 ,BAU]'S ,G5]AL ,CRITICISMS 

      #f1#i#b#h ,WORDS2 #d#d1#a#h ,*>ACT]S     

O ,*APT] #d 3 ,! ',NEW' ,POPULATION ,!ORY ( ,OTTO ,BAU] 

      #a1#i#g#a ,WORDS2 #g#d1#d#f ,*>ACT]S     

O ,*APT] #e 3 ,BAU]'S ',PRACTICAL' ,CONCLUSIONS 

      #a1#c#d#e ,WORDS2 #i1#i#a ,*>ACT]S     

O ,*APT] #f 3 ,IMP]IALISM 

      #d1#a#f#g ,WORDS2 #b#g1#a#h#a ,*>ACT]S 

,SECTIONS 7,CONT5T7 3 

O ,*APT] #a 3 ,! ,QUE/IONS ,AT ,ISSUE 

,FIR/ ,PUBLI%$3 #aiba - ,DIE ,AKKUMULATION DES ,KAPITALS OD] ,WAS DIE ,EPIGON5 AUS D] ,M>XS*5 ,!ORIE GEMA*T HAB54 ,E9E ,ANTIKRITIK 7,FRANKE1 ,LEIPZIG #a#i#b#a74 
,ORIG9ALLY WRITT53#a#i#a#e :ILE 9T]N$ 9 ! WOM5'S PRISON1 ,B>NIM/RASSE1 ,B]L94 
,S\RCE3 ,ROSA ,LUXEMBURG & ,NIKOLAI ,BUKH>93 ,IMP]IALISM & ! ,ACCUMULATION ( ,CAPITAL4 ,$IT$ ) AN ,9TRODUCTION BY ,K5NE? ,J4 ,T>BUCK4 7,ALL5 ,LANE ,! ,P5GU9 ,PRESS1 ,LONDON #a#i#g#b71 PP4#d#e-#a#e4 
,TRANSLAT$3 7FROM ! ,G]MAN7 BY ,RUDOLF ,WI*MANN4 
,TRANSCRIPTION_/,M>KUP3 ,/EVE ,PALM]4 
,COPYRI<T3 ,K5NE? ,J4 ,T>BUCK & ,RUDOLF ,WI*MANN #a#i#g#b4 
,NOTES3 ,NOTES BY ! $ITOR & TRANSLATOR APPE> .<?US.>4 ,M,I,A NOTES APPE> _<?US_>4 

,HAB5T SUA FATA LIBELLI - BOOKS HAVE !IR FATES4 ,:5 ,I WROTE MY ,ACCUMULATION A ?\<T DEPRESS$ ME FROM TIME TO TIME3 ALL FOLL[]S ( ,M>XI/ DOCTR9E W\LD DECL>E ?AT ! ?+S ,I WAS TRY+ TO %[ & C>EFULLY SUB/ANTIATE W]E SELF-EVID5T4 ,NOBODY W\LD VOICE A DIFF]5T OP9ION2 MY SOLUTION ( ! PROBLEM W\LD BE ! ONLY POSSIBLE ONE IMAG9ABLE4 ,IT TURN$ \T V]Y DIFF]5TLY3 A NUMB] ( CRITICS 9 ! ,SOCIAL ,DEMOCRATIC PRESS DECL>$ ?AT ! BOOK WAS TOTALLY MISGUID$ TO />T ) & ?AT SU* A PROBLEM CALL+ = SOLUTION DID NOT EXI/ AT ALL4 ,I HAD BECOME ! PITIFUL VICTIM ( A PURE MISUND]/&+4 ,!RE W]E EV5TS CONNECT$ ) ! PUBLICATION ( MY BOOK :I* MU/ BE CALL$ RA!R UNUSUAL4 ,! 'REVIEW' ( ! ,ACCUMULATION :I* APPE>$ 9 ,VORW>TS.<#a.> ( #af ,FEBRU>Y #aiac WAS /RIK+ 9 TONE & CONT5T EV5 TO ! LESS 9VOLV$ READ]2 & ALL ! MORE A/ONI%+ S9CE ! CRITICIZ$ BOOK IS PURELY !ORETICAL & /RICTLY OBJECTIVE1 & DIRECT$ AGA9/ NO LIV+ ,M>XI/4 ,NOT 5\<4 ,AGA9/ ?OSE :O HAD PUBLI%$ A POSITIVE REVIEW ( ! BOOK A HI<H&$ ACTION WAS TAK5 BY ! C5TRAL ORGAN4 ,A QUITE UNIQUE & SOMEH[ FUNNY EV5T - A PURELY !ORETICAL /UDY ON AN AB/RACT SCI5TIFIC PROBLEM WAS C5SUR$ BY ! 5TIRE /AFF ( A POLITICAL DAILY PAP] 7( :OM PROBABLY TWO AT ! MO/ MAY HAVE READ ! BOOK74 ,!Y DID ?IS BY D5Y+ TO M5 LIKE ,FRANZ ,MEHR+.<#b.> & ,J4 ,K>SKI.<#c.> ANY EXP]T KN[L$GE ( ECONOMICS1 BUT ALL[$ ONLY ?OSE :O PULL$ MY BOOK TO PIECES TO BE 'EXP]TS'4 ,SU* A FATE HAS HAPP5$ TO NO O!R P>TY PUBLICATION AS F> AS ,I KN[ & OV] ! DECADES ,SOCIAL ,DEMOCRATIC PUBLI%]S HAVE C]TA9LY NOT PRODUC$ ALL GOLD & PE>LS4 ,ALL !SE EV5TS CLE>LY 9DICATE ?AT !RE HAVE BE5 O!R PASSIONS T\*$ ON1 ONE WAY OR ANO!R1 ?AN 'PURE SCI5CE'4 ,BUT TO JUDGE ?AT PROP]LY ONE HAS FIR/ TO KN[ AT LEA/ ! MA9 PO9TS ( ! MAT]IAL 9 QUE/ION4 

,:AT IS ?IS SO VEHEM5TLY OPPOS$ BOOK AB\T8 

,TO ! READ+ PUBLIC SOME EXT]NAL ACCESSORIES LIKE FREQU5TLY US$ MA!MATICAL =MULAS SEEM TO BE A GREAT DET]R5T4 ,9 ! CRITICISM ( MY BOOK !SE =MULAS >E ESPECIALLY ! FOCUS4 ,SOME ( ! E/EEM$ CRITICS HAVE UND]TAK5 TO TEA* ME A LESSON BY CON/RUCT+ NEW & EV5 MORE COMPLICAT$ =MULAS4 ,! %E] SI<T ( !M BR+S QUIET HORROR TO ! ORD9>Y MORTAL4 ,WE %ALL SEE ?AT MY CRITICS' PREF]5CE = ! =MULAS IS NOT A MATT] ( *ANCE1 BUT L9K$ V]Y CLOSELY TO !IR PO9TS ( VIEW ON ! SUBJECT4 ,YET ! PROBLEM ( ACCUMULATION IS ITSELF PURELY ECONOMIC & SOCIAL2 IT DOES NOT HAVE ANY?+ TO DO ) MA!MATICAL =MULAS & ONE CAN DEMON/RATE & COMPREH5D IT )\T !M4 ,M>X USES CON/RUCT$ MA!MATICAL MODELS 9 ! SECTION ON REPRODUCTION ( ! GROSS SOCIAL CAPITAL 9 HIS ,CAPITAL1 SO DID ,QUESNAY1 ! F\ND] ( ! PHYSIOCRATIC S*OOL ( ECONOMICS.<#d.> AS AN EXACT SCI5CE A HUNDR$ YE>S BE=E4 ,BUT ?AT WAS SIMPLY TO HELP 9 EXPLA9+ & CL>IFY+ !IR !ORIES4 ,IT ALSO ASSI/$ ,M>X AS WELL AS ,QUESNAY TO ILLU/RATE ?AT ! ECONOMIC PROCESSES ( B\RGEOIS SOCIETY >E AS MU* DET]M9$ BY /RICT LAWS AS ! PROCESSES ( PHYSICAL NATURE1 9 SPITE ( SUP]FICIAL CONFUSION & ! APP>5T RULE ( 9DIVIDUAL CAPRICE4 ,MY WRIT+S >E P>TLY BAS$ ON ,M>X1 P>TLY CRITICAL ( HIM - ESPECIALLY :]E HE DOES NOT GO ANY FUR!R 9TO ! QUE/ION ( ACCUMULATION ?AN TO DEVISE A FEW MODELS & SUGGE/ AN ANALYSIS4 ,?IS IS :]E MY CRITIQUE BEG9S1 & SO ,I MU/ NATURALLY USE ,M>X'S =MULAS ) ,M>X'S MODELS4 ,I C\LD NOT >BITR>ILY OMIT !M & ,I WANT$ ESPECIALLY TO %[ ! 9SUFFICI5CY ( HIS L9E ( >GUM5T4 

,LET US N[ TRY TO UND]/& ! PROBLEM 9 ITS SIMPLE/ =M3 ! CAPITALI/ =M ( PRODUCTION IS GOV]N$ BY ! PR(IT MOTIVE4 ,PRODUCTION ONLY MAKES S5SE TO ! CAPITALI/ IF IT FILLS HIS POCKETS ) 'PURE 9COME'1 I4E4 ) PR(IT ?AT REMA9S AFT] ALL HIS 9VE/M5TS2 BUT ! BASIC LAW ( CAPITALI/ PRODUCTION IS NOT ONLY PR(IT 9 ! S5SE ( GLITT]+ BULLION1 BUT CON/ANTLY GR[+ PR(IT4 ,?IS IS :]E IT DIFF]S FROM ANY O!R ECONOMIC SY/EM BAS$ ON EXPLOITATION4 ,= ?IS PURPOSE ! CAPITALI/ - AGA9 9 CONTRA/ TO O!R HI/ORICAL TYPES ( EXPLOIT]S - USES ! FRUITS ( EXPLOITATION NOT EXCLUSIVELY1 & NOT EV5 PRIM>ILY1 = P]SONAL LUXURY1 BUT MORE & MORE TO 9CREASE EXPLOITATION ITSELF4 ,! L>GE/ P>T ( ! PR(ITS GA9$ IS PUT BACK 9TO CAPITAL & US$ TO EXP& PRODUCTION4 ,! CAPITAL ?US M\NTS UP OR1 AS ,M>X CALLS IT1 'ACCUMULATES'4 

,AS ! PRECONDITION AS WELL AS ! CONSEQU5CE ( ACCUMULATION1 CAPITALI/ PRODUCTION WID5S PROGRESSIVELY4 ,TO DO ?IS1 ! GOODWILL ( ! CAPITALI/ IS NOT SUFFICI5T4 ,! PROCESS IS TI$ TO OBJECTIVE SOCIAL CONDITIONS :I* CAN BE SUMM$ UP AS FOLL[S4 ,PRIM>ILY1 !RE MU/ BE A SUFFICI5T LABOR =CE4 ,HI/ORICALLY1 ONCE CAPITALI/ PRODUCTION IS FUNCTION+ & FAIRLY CONSOLIDAT$1 CAPITAL 5SURES ?IS ?R\< ITS [N ME*ANISMS3 

BY JU/ 5ABL+ ! WORK] TO SUPPORT HIMSELF = FUR!R EXPLOITATION & = REPRODUCTION2 

BY =M+ A CON/ANTLY AVAILABLE RES]VE >MY ( ! 9DU/RIAL PROLET>IAT BY ! PROLET>IANIZATION ( ! MIDDLE CLASS AS WELL AS BY FAC+ ! WORK] ) ! COMPETITION ( MA*9ES4 

,AFT] ?IS CONDITION IS FULFILL$1 I4E4 ! PROLET>IAT IS SECURELY AVAILABLE = EXPLOITATION & ! ME*ANISMS OR EXPLOITATION ITSELF >E GOV]N$ BY ! WAGE SY/EM1 A NEW BASIC CONDITION ( CAPITAL ACCUMULATION EM]GES - ! POSSIBILITY ( SELL+ ! GOODS PRODUC$ BY ! WORK]S TO RECOV]1 9 MONEY1 ! CAPITALI/'S ORIG9AL EXP5SES AS WELL AS ! SURPLUS VALUE /OL5 FROM ! LABOR =CES4 ',! FIR/ CONDITION ( ACCUMULATION IS ?AT ! CAPITALI/ MU/ HAVE CONTRIV$ TO SELL HIS COMMODITIES1 & TO RECONV]T 9TO CAPITAL ! GREAT] P>T ( ! MONEY SO RECEIV$4'.<#e.> ,A /EADILY 9CREAS+ POSSIBILITY ( SELL+ ! COMMODITIES IS 9DISP5SABLE 9 ORD] TO KEEP ! ACCUMULATION A CONT9U\S PROCESS4 ,CAPITAL ITSELF 7AS WE SEE7 CREATES ! BASIC CONDITION = EXPLOITATION4 ,! FIR/ VOLUME ( ,M>X'S ,CAPITAL ANALYZ$ & DESCRIB$ ?IS PROCESS 9 DETAIL4 ,BUT :AT AB\T ! OPPORTUNITIES ( REALIZ+ ! FRUITS ( ?IS EXPLOITATION2 :AT AB\T ! M>KET8 ,:AT DO !Y DEP5D ON8 ,CAN CAPITAL ITSELF1 OR ITS PRODUCTION ME*ANISMS1 EXP& ITS M>KET ACCORD+ TO ITS NE$S1 9 ! SAME WAY ?AT IT ADJU/S ! NUMB] ( WORK]S ACCORD+ TO ITS DEM&8 ,NOT AT ALL4 ,H]E CAPITAL DEP5DS ON SOCIAL CONDITIONS4 ,CAPITALI/ PRODUCTION HAS ?IS 9 COMMON ) ALL O!R HI/ORICAL =MS ( PRODUCTION1 9 SPITE ( FUNDAM5TAL DIFF]5CES BETWE5 !M4 ,OBJECTIVELY IT HAS TO FULFILL ! MAT]IAL NE$S ( SOCIETY1 AL?\< SUBJECTIVELY ONLY ! PR(IT MOTIVE MATT]S4 ,?IS SUBJECTIVE AIM CAN ONLY BE REA*$ SO LONG AS CAPITAL FULFILLS ITS OBJECTIVE TASK4 ,! GOODS CAN BE SOLD & ! 9COM+ PR(IT TURN$ 9TO MONEY ONLY IF !SE GOODS SATISFY ! REQUIREM5TS ( SOCIETY4 ,SO ! CONT9U\S EXPANSION ( CAPITALI/ PRODUCTION1 I4E4 ! CONT9U\S ACCUMULATION ( CAPITAL1 IS L9K$ TO ! EQUALLY CONT9U\S GR[? ( SOCIAL REQUIREM5TS4 ,BUT :AT >E ! REQUIREM5TS ( SOCIETY8 ,CAN !Y SOMEH[ BE MORE CLOSELY DEF9$1 MEASUR$1 OR MU/ WE DEP5D ONLY ON ?IS VAGUE T]M8 ,9 FACT1 !Y SEEM 9TANGIBLE IF ONE SURVEYS !-SURFACE ( DAY-TO-DAY ECONOMIC LIFE FROM ! /&PO9T ( ! 9DIVIDUAL CAPITALI/4 ,A CAPITALI/ PRODUCES & SELLS MA*9ES4 ,HIS CU/OM]S >E O!R CAPITALI/S1 :O BUY HIS MA*9ES TO PRODUCE MORE GOODS4 ,! ONE CAN SELL MORE ( HIS GOODS AS ! O!RS EXP& !IR PRODUCTION4 ,HE CAN ACCUMULATE FA/] IF O!RS ACCUMULATE FA/] 9 !IR BRAN*ES ( PRODUCTION4 ,?IS W\LD BE ! 'REQUIREM5TS ( SOCIETY' ON :I* \R CAPITALI/ IS DEP5D5T3 ! NE$ ( O!R CAPITALI/S IS ! PRECONDITION = ! EXPANSION ( PRODUCTION4 ,ANO!R CAPITALI/ PRODUCES & SELLS ! MEANS ( SUBSI/5CE TO ! WORK]S4 ,! MORE WORK]S >E EMPLOY$ BY O!R CAPITALI/S 7& BY HIMSELF71 ! MORE GOODS HE CAN SELL & ! MORE CAPITAL HE CAN ACCUMULATE4 ,BUT H[ CAN ! 'O!RS' EXP& !IR PLANTS 8 ,OBVI\SLY ?R\< ! O!R CAPITALI/2 = EXAMPLE1 ! PRODUC]S ( MA*9ES1 OR MEANS ( SUBSI/5CE1 BUY+ !IR GOODS 9 9CREAS+ MEASURE4 

,SO ! SOCIAL REQUIREM5T1 ON :I* ! ACCUMULATION ( CAPITAL DEP5DS1 SEEMS AT A CLOS] LOOK TO BE ! ACCUMULATION ( CAPITAL ITSELF4 

,! MORE CAPITAL ACCUMULATES1 ! MORE IT ACCUMULATES2 IT IS ALL R$UC$ TO ?IS BLATANT TAUTOLOGY1 A DIZZY CIRCLE4 ,ONE CANNOT MAKE \T :]E IT BEG9S1 OR :]E ! IMPELL+ =CE IS4 ,WE >E TURN+ R\ND 9 CIRCLES & ! PROBLEM ELUDES \R GRASP4 ,BUT IT DOES SO ONLY = AS LONG AS WE APPROA* IT FROM ?IS SUP]FICIAL VIEWPO9T1 OR EXAM9E IT FROM ! POPUL> PLAT=M ( VULG> ECONOMICS1 9DIVIDUAL CAPITAL4 

,! PATT]N IMM$IATELY TAKES %APE IF WE APPROA* IT FROM ! /&PO9T ( TOTAL CAPITAL1 ONCE WE SEE ! PROCESS ( CAPITALI/ PRODUCTION AS A :OLE4 ,?IS IS ! ONLY RELEVANT & RI<T WAY4 ,IT IS ! /&PO9T ,M>X DEVELOPS SY/EMATICALLY = ! FIR/ TIME 9 ! SECOND VOLUME ( ,CAPITAL1 & ON :I* HE BASES HIS :OLE !ORY4 

,! SELF-SUFFICI5T EXI/5CE ( ! 9DIVIDUAL CAPITAL IS 9DE$ ONLY AN EXT]NAL =M1 ! SURFACE ( ECONOMIC LIFE1 :I* ONLY ! VULG> ECONOMI/S USE AS !IR SOLE S\RCE ( KN[L$GE4 ,B5EA? ?AT SURFACE & ?R\< ALL CONTRADICTION ( COMPETITION !RE REMA9S ! FACT ?AT ALL 9DIVIDUAL CAPITALS 9 SOCIETY =M A :OLE4 ,!N EXI/5CE & MOVEM5T >E GOV]N$ BY COMMON SOCIAL LAWS :I*1 ) ! UNPLANN$ NATURE & AN>*Y ( ! PRES5T SY/EM1 ONLY WORK BEH9D ! BACK ( ! 9DIVIDUAL CAPITALI/4 ,:5 ONE LOOKS AT CAPITALI/ PRODUCTION AS A :OLE1 !N SOCIAL REQUIREM5TS BECOME A MEASURABLE QUANTITY :I* CAN BE DIVID$ 9TO SECTIONS4 

,LET US IMAG9E ?AT ALL GOODS PRODUC$ 9 CAPITALI/ SOCIETY W]E /ACK$ UP 9 A BIG PILE AT SOME PLACE1 TO BE US$ BY SOCIETY AS A :OLE41 ,WE WILL !N SEE H[ ?IS MASS ( GOODS1 IS NATURALLY DIVID$ 9TO SEV]AL BIG PORTIONS ( DIFF]5T K9DS & DE/9ATIONS4 

,ALWAYS1 9 ANY =M ( SOCIETY1 PRODUCTION HAS TO PROVIDE TWO ?+S4 ,FIR/ IT HAS TO FE$ SOCIETY1 CLO! IT & SATISFY CULTURAL NE$S ?R\< MAT]IAL GOODS1 I4E4 IT MU/ PRODUCE ! MEANS ( SUBSI/5CE 9 ! WIDE/ S5SE ( ! WORD = ALL CLASSES & AGES4 ,SECONDLY1 EA* =M ( PRODUCTION MU/ REPLACE US$ UP RAW MAT]IALS1 TOOLS1 FACTORIES & SO ON TO ALL[ ! CONT9U$ EXI/5CE ( SOCIETY & ! PROVISION ( WORK4 ,)\T ! SATISFACTION ( !SE TWO MAJOR REQUIREM5TS ( ANY HUMAN SOCIETY1 CULTURAL DEVELOPM5T & PROGRESS W\LD BE IMPOSSIBLE4 ,EV5 CAPITALI/ PRODUCTION ) ALL ITS AN>*Y1 & )\T 9JUR+ ! PR(IT MOTIVE1 MU/ MEET !SE DEM&S4 ,ACCORD+LY WE WILL F9D 9 ?IS AGGREGATE ( CAPITALI/ COMMODITIES PRODUC$1 A L>GE PROPORTION = REPLAC+ ! MEANS ( PRODUCTION US$ UP 9 ! YE> BE=E4 ,!SE >E ! RAW MAT]IALS1 MA*9]Y1 BUILD+S1 ETC4 7:AT ,M>X CALLS CON/ANT CAPITAL7 :I* V>I\S CAPITALI/S MU/ PRODUCE = EA* O!R & !N EX*ANGE1 SO ?AT PRODUCTION CAN BE KEPT UP 9 ALL BRAN*ES4 ,ACCORD+ TO \R ASSUMPTION SO F>1 IT IS CAPITALI/ BUS9ESS ?AT PROVIDES ALL ! NECESS>Y MEANS = ! WORK PROCESS4 ,! EX*ANGE ( COMMODITIES ON ! M>KET IS AN 9T]NAL OR FAMILY MATT] BETWE5 CAPITALI/S4 ,! REQUIR$ MONEY = ?IS PROCESS1 ( C\RSE1 COMES \T ( ! CAPITALI/S' POCKETS - AS EV]Y EMPLOY] MU/ LAY \T ! MONEY CAPITAL 9 ADVANCE - & RETURNS 9TO ! POCKETS ( ! CAPITALI/ CLASS AFT] ! EX*ANGE ON ! M>KET HAS TAK5 PLACE4 

,AS WE ONLY ASSUME ! REPLACEM5T ( ! MEANS ( PRODUCTION TO ITS =M] EXT5T1 ! SAME AM\NT ( MONEY WILL SUFFICE TO KEEP ?IS P]IODIC PROCESS GO+ & LET ! MONEY RETURN 9TO ! CAPITALI/S' POCKETS = A P]IOD ( RE/4 ,A SECOND L>GE DEP>TM5T ( COMMODITIES MU/ CONTA9 MEANS ( SUBSI/5CE = ! POPULATION1 AS 9 EV]Y SOCIETY4 ,BUT H[ IS ! POPULATION /RUCTUR$ 9 CAPITALI/ SOCIETY1 & H[ DOES-IT GET ITS MEANS ( SUBSI/5CE8 

,TWO BASIC /RUCTURES >E *>ACT]I/IC ( ! CAPITALI/ MODE ( PRODUCTION4 ,FIR/LY1 A G5]AL EX*ANGE ( GOODS1 I4E4 NOBODY RECEIVES ANY?+ FROM ! SOCIAL /OCK ( COMMODITIES )\T ! MEANS ( PUR*ASE - MONEY4 ,SECONDLY1 ! CAPITALI/ WAGE SY/EM1 I4E4 ! MAJORITY ( ! WORK+ POPULATION1 MU/ EX*ANGE ITS LABOR P[] ) CAPITAL TO ACQUIRE MEANS ( PUR*ASE1 :ILE ! PROP]TI$ CLASS RECEIVES ITS MEANS ( SUBSI/5CE ONLY BY EXPLOIT+ ?IS RELATION%IP4 ,?US CAPITALI/ PRODUCTION PRESUPPOSES TWO GREAT CLASSES3 CAPITALI/S & WORK]S1 :O DIFF] 5TIRELY 9 !IR ACQUISITION ( MEANS ( SUBSI/5CE4 ,! WORK]S MU/ BE F$ TO MA9TA9 !IR LABOR P[] = FUR!R EXPLOITATION1 H[EV] LITTLE !IR 9DIVIDUAL FATES CONC]N ! CAPITALI/4 ,FROM ! TOTAL QUANTITY ( COMMODITIES PRODUC$ BY ! WORK]S1 A C]TA9 %>E IS ASSIGN$ TO !M BY ! CAPITALI/S1 9 DIRECT PROPORTION TO !IR USEFULNESS 9 PRODUCTION4 ,! WORK]S RECEIVE WAGES 9 MONEY =M TO PUR*ASE !SE GOODS4 ,BY MEANS ( EX*ANGE ! WORK+ CLASS ?US RECEIVES A C]TA9 SUM ( MONEY EV]Y YE>4 ,) ?IS !Y BUY !IR PROVISIONS FROM ! SOCIAL /OCK ( COMMODITIES1 :I* >E1 ( C\RSE1 ! PROP]TY ( ! CAPITALI/2 !SE PROVISIONS >E ALLOTT$ TO !M ACCORD+ TO !IR CULTURAL LEVEL & ! /AGE ( ! CLASS /RUGGLE4 ,! MONEY ?AT 9ITIATES ?IS SECOND BIG EX*ANGE AGA9 COMES \T ( ! CAPITALI/S' POCKETS4 ,EV]Y CAPITALI/ MU/ ADVANCE ! NECESS>Y MONEY CAPITAL TO PUR*ASE HIS LABOR =CE - :AT ,M>X CALLS 'V>IABLE CAPITAL' - 9 ORD] TO KEEP HIS 5T]PRISE GO+4 ,BUT ?IS MONEY RETURNS1 D[N TO ! LA/ P5NY1 9TO ! POCKETS ( ! CAPITALI/S AS A CLASS1 AFT] ! WORK] HAS B\<T HIS MEANS ( SUBSI/5CE 7& EV]Y WORK] MU/ DO SO TO MA9TA9 HIMSELF & HIS FAMILY7 - S9CE IT IS ! CAPITALI/S :O SELL MEANS ( SUBSI/5CE TO ! WORK]S AS COMMODITIES4 ,BUT :AT AB\T !IR [N CONSUMPTION8 ,! MEANS ( SUBSI/5CE ALREADY BELONG TO ! CAPITALI/S 9 ! =M ( ! COMMODITY /OCK BE=E EX*ANGE1 BY VIRTUE ( CAPITALI/ RELATIONS1 ACCORD+ TO :I* ALL COMMODITIES - EXCEPT = LABOR-P[] - COME 9TO ?IS WORLD AS ! PROP]TY ( ! CAPITALI/4 ,( C\RSE1 PRECISELY BECAUSE !Y >E COMMODITIES1 ! 'BETT]' CLASS ( PROVISIONS COME 9TO BE+ AS ! PROP]TY ( MANY 9DIVIDUAL PRIVATE CAPITALI/S4 ,!RE=E1 AS ) CON/ANT CAPITAL1 A G5]AL EX*ANGE MU/ TAKE PLACE BETWE5 CAPITALI/S BE=E !Y CAN 5JOY !IR [N MEANS ( SUBSI/5CE4 ,?IS EX*ANGE1 TOO1 MU/ BE CONDUCT$ ) MONEY1 & ! CAPITALI/ HIMSELF HAS BR\<T ! NECESS>Y AM\NT 9TO CIRCULATION4 ,ONCE AGA91 AS ) ! R5EWAL (1 CON/ANT CAPITAL1 ?IS IS AN 9T]NAL1 FAMILY >RANGEM5T ( ! EMPLOY+ CLASS4 ,ONCE MORE1 ?IS MONEY-RETURNS :5CE IT BEGAN - 9TO ! POCKETS ( ! CAPITALI/S AS A CLASS4 

,! SAME ME*ANISM ( CAPITALI/ EXPLOITATION :I* REGULATES ! WAGE SY/EM 5SURES ?AT ! NECESS>Y AM\NT ( GOODS & LUXURIES IS PRODUC$ = ! CAPITALI/S4 ,IF ! WORK]S ONLY PRODUC$ AS MU* AS !Y ACTUALLY NE$$1 !N FROM ! /&PO9T ( CAPITAL IT W\LD BE PO9TLESS TO EMPLOY !M4 ,IT BEG9S TO MAKE S5SE :5 ! WORK] PROVIDES 5\< TO MA9TA9 HIS EMPLOY]1 OV] & ABOVE :AT HE NE$S = HIMSELF - I4E4 HIS WAGE3 :5 HE PRODUCES :AT ,M>X CALLS SURPLUS VALUE4 ,& ?IS SURPLUS VALUE HAS TO PROVIDE1 AMONG O!R ?+S1 ! PROVISIONS & LUXURIES REQUIR$ BY ! CAPITALI/S1 AS BY ANY O!R EXPLOIT]S 9 ! C\RSE ( HI/ORY4 ,ALL ?AT IS LEFT = ! CAPITALI/S TO DO IS TO GO TO ! FRI<TFUL BO!R ( MUTUAL EX*ANGE & TO OBTA9 ! NECESS>Y MONEY-MEANS1 9 ORD] TO MA9TA9 ! H>D & SP>TAN EXI/5CE ( !IR CLASS & 5SURE ITS NATURAL REPRODUCTION4 

,SO F> WE HAVE DEALT ) TWO BIG PORTIONS ( ! AGGREGATE QUANTITY ( COMMODITIES 9 SOCIETY3 MEANS ( PRODUCTION TO REPEAT ! WORK PROCESS & MEANS ( SUBSI/5CE TO MA9TA9 ! POPULATION1 I4E4 ! WORK+ CLASS & ! CAPITALI/S4 

,( C\RSE1 :AT WE HAVE DESCRIB$ C\LD EASILY SEEM TO BE A CREATION ( FANCY4 ,:AT LIV+ CAPITALI/ KN[S OR C>ES :AT & H[ MU* IS NECESS>Y TO REPLACE ! US$-UP GROSS CAPITAL & TO FE$ ! 5TIRE POPULATION8 ,IS IT NOT ! CASE ?AT EV]Y CAPITALI/ GOES BL9DLY ON PRODUC+1 COMPET+ ) O!RS1 & H>DLY SEES :AT IS HAPP5+ 9 FRONT ( HIS NOSE8 ,BUT !RE MU/ OBVI\SLY BE 9VISIBLE RULES :I* SOMEH[ WORK 9 ALL ?IS *AOS ( COMPETITION & AN>*Y1 O!RWISE CAPITALI/ SOCIETY W\LD HAVE BE5 9 RU9S LONG AGO4 ,& IT IS ! :OLE PURPOSE ( POLITICAL ECONOMY AS A SCI5CE 7& P>TICUL>LY ( ,M>X'S ECONOMIC /UDIES7 TO TRACE !SE HIDD5 LAWS :I* ORGANIZE ! :OLE ( SOCIETY 9 ! MID/ ( ! CONFUSION ( PRIVATE 5T]PRISE4 ,WE HAVE N[ TO TRACE !SE OBJECTIVE 9VISIBLE RULES ( CAPITALI/ ACCUMULATION - ! AMASS+ ( CAPITAL ?R\< PROGRESSIVE EXT5SION ( PRODUCTION4 ,! LAWS :I* WE EXP\ND H]E >E NOT AU?ORITATIVE = ! CONSCI\S ACTIONS ( 9DIVIDUAL CAPITALS2 9DE$1 NO G5]AL 9/ITUTION EXI/S 9 SOCIETY ?AT W\LD CONSCI\SLY CON/RUCT & OP]ATE !SE LAWS ,CONSEQU5TLY1 PRODUCTION TODAY IS LIKE A LUR*+ DRUNK>D1 FULFILL+ ITS TASKS ?R\< ALL !SE GLUTS & DE>?S1 PRICE 9/ABILITY & CRISES4 ,BUT PRICE 9/ABILITY & CRISES HAVE ONLY ONE FUNCTION 9 SOCIETY3 TO 9TEGRATE *AOTIC PRIVATE PRODUCTION 9TO ITS BROAD G5]AL CONTEXT1 )\T :I* IT W\LD SOON DIS9TEGRATE4 ,LET US H]E TRY TO SKET*1 ) ,M>X1 ! RELATION BETWE5 TOTAL CAPITALI/ PRODUCTION & SOCIAL NE$S4 ,WE WILL OMIT ! SPECIFIC CAPITALI/ ME?ODS ( PRICE FLUCTUATION & CRISES1 & CONC5TRATE ON ! BASICS4 

,!RE MU/ BE MORE ?AN ?OSE TWO BIG PORTIONS ( ! SOCIAL /OCK ( COMMODITIES :I* WE HAVE DEALT ) SO F>4 ,IF ! EXPLOITATION ( ! WORK]S W]E ONLY TO P]MIT A LUXURI\S LIFE = ! EXPLOIT]S1 WE W\LD HAVE A K9D ( MOD]NIZ$ SLAVE SY/EM ( M$IEVAL FEUDALISM1 BUT NOT ! MOD]N RULE ( CAPITAL4 ,ITS AIM & GOAL 9 LIFE IS PR(IT 9 ! =M ( MONEY & ACCUMULATION ( MONEY CAPITAL4 ,SO ! ACTUAL HI/ORICAL PURPOSE ( PRODUCTION ONLY BEG9S :5 EXPLOITATION AIMS BEYOND ?AT4 ,! SURPLUS VALUE MU/ NOT ONLY ALL[ ! CAPITALI/ CLASS A LIV+ 'BEFITT+ !IR RANK'1 BUT MU/ ALSO CONTA9 A P>T DE/9$ = ACCUMULATION4 ,?IS ACTUAL PURPOSE IS SO IMPORTANT ?AT WORK]S >E ONLY EMPLOY$ IF !Y PRODUCE ?IS PR(IT & IF !RE IS ! EXPECTATION ?AT IT CAN BE ACCUMULAT$ 9 MONEY-=M4 

,9 \R ASSUM$ TOTAL /OCK ( COMMODITIES 9 CAPITALI/ SOCIETY WE MU/ ACCORD+LY F9D A ?IRD PORTION1 :I* IS DE/9$ NEI!R = ! R5EWAL ( US$ MEANS ( PRODUCTION NOR = ! MA9T5ANCE ( WORK]S & CAPITALI/S4 ,IT WILL BE A PORTION ( COMMODITIES :I* CONTA9S ?AT 9VALUABLE P>T ( ! SURPLUS VALUE ?AT =MS CAPITAL'S REAL PURPOSE ( EXI/5CE3 ! PR(IT DE/9$ = CAPITALIZATION & ACCUMULATION4 ,:AT SORT ( COMMODITIES >E !Y1 & :O 9 SOCIETY NE$S !M8 

,H]E WE HAVE COME TO ! NUCLEUS ( ! PROBLEM ( ACCUMULATION1 & WE MU/ 9VE/IGATE ALL ATTEMPTS AT SOLUTION4 ,C\LD IT REALLY BE ! WORK]S :O CONSUME ! LATT] PORTION ( ! SOCIAL /OCK ( COMMODITIES8 ,BUT ! WORK]S HAVE NO MEANS BEYOND ! WAGES COV]+ B>E NECESSITIES :I* !Y RECEIVE FROM !IR EMPLOY]S4 ,BEYOND ?AT !RE IS NO POSSIBLE *ANCE ( !IR BE+ CONSUM]S ( CAPITALI/ COMMODITIES1 H[EV] MANY UNSATISFI$ NE$S !Y MAY HAVE4 ,IT IS ALSO 9 ! 9T]E/ ( ! CAPITALI/ CLASS TO MAKE ?IS PORTION ( ! GROSS SOCIAL PRODUCT & MEANS ( PUR*ASE AS SC>CE AS POSSIBLE4 ,ACCORD+ TO ! /&PO9T ( ! CAPITALI/S AS A CLASS - IT IS IMPORTANT TO SEE ?IS /&PO9T 9 OPPOSITION TO ! AB/RUSE IDEAS ( ! 9DIVIDUAL CAPITALI/ - WORK]S >E NOT1 LIKE O!RS1 CU/OM]S = !IR COMMODITIES1 BUT SIMPLY ! LABOR =CE1 :OSE MA9T5ANCE \T ( P>T ( ITS [N PRODUCE IS AN UN=TUNATE NECESSITY1 R$UC$ TO ! M9IMUM SOCIETY ALL[S4 

,C\LD ! CAPITALI/S !MSELVES P]HAPS BE ! CU/OM]S = ?AT LATT] PORTION ( COMMODITIES BY EXT5D+ !IR [N PRIVATE CONSUMPTION8 ,?AT MI<T BE POSSIBLE1 AL?\<4 !RE IS 5\< = ! RUL+ CLASS 9 ANY CASE1 EV5 ) ITS LUXURI\S :IMS4 ,BUT IF ! CAPITALI/S !MSELVES W]E TO SP5D ! TOTAL SURPLUS VALUE LIKE WAT] !RE W\LD BE NO ACCUMULATION4 ,?AT W\LD MEAN1 FROM ! /&PO9T ( CAPITAL1 A FANTA/IC RELAPSE 9TO A SORT ( MOD]NIZ$ SLAVE ECONOMY1 OR FEUDALISM4 ,( C\RSE1 ?IS IS CONCEIVABLE & EV5 PRACTIC$ OCCASIONALLY 9 REV]SE3 WE C\LD DISC]N CAPITALI/ ACCUMULATION ) =MS ( SLAV]Y & S]FDOM UP UNTIL ! SIXTIES ( ! LA/ C5TURY 9 ! ,UNIT$ ,/ATES1 /ILL TODAY 9 ,RUMANIA & V>I\S OV]SEAS COLONIES4 ,BUT ! O!R WAY1 MOD]N EXPLOITATION ) A FREE WAGE SY/EM FOLL[$ BY ANCI5T OR FEUDAL SQU&]+ ( ! SURPLUS VALUE1 NEGLECT+ ACCUMULATION1 ?IS DEADLY S9 AGA9/ ! SPIRITUS SANCTUS ( CAPITAL IS UN?9KABLE4 ,AGA91 ! /&PO9T ( TOTAL CAPITAL DIFF]S BASICALLY FROM ?AT ( ! 9DIVIDUAL EMPLOY]4 ,= ! 9DIVIDUAL1 ! LUXURY ( 'HI< SOCIETY' IS A DESIRABLE EXPANSION ( SALES1 I4E4 A SPL5DID OPPORTUNITY = ACCUMULATION4 ,= ALL CAPITALI/S AS A CLASS1 ! TOTAL CONSUMPTION ( ! SURPLUS VALUE AS LUXURY IS %E] LUNACY1 ECONOMIC SUICIDE1 = IT IS ! DE/RUCTION ( ACCUMULATION AT ITS ROOTS4 

,:O !N C\LD BE ! BUY] & CONSUM] ( ?AT PORTION ( COMMODITIES :OSE SALE IS ONLY ! BEG9N+ ( ACCUMULATION8 ,SO F> AS WE HAVE SE51 IT CAN BE NEI!R ! WORK]S NOR ! CAPITALI/S4 

,BUT >E !RE NOT ALL SORTS ( /RATA 9 SOCIETY LIKE CIVIL S]VANTS1 MILIT>Y1 CL]ICS1 ACADEMICS & >TI/S :I* CAN NEI!R BE C\NT$ AMONG ! WORK]S NOR ! EMPLOY]S8 ,MU/ NOT ALL !SE CATEGORIES ( ! POPULATION SATISFY !IR NE$S1 & C\LD !Y NOT BE ! WANT$ PUR*AS]S ( ! SURPLUS COMMODITIES8 ,ONCE MORE3 YES1 !Y C\LD = ! 9DIVIDUAL CAPITALI/6 ,IT IS DIFF]5T AGA9 IF WE TAKE ! EMPLOY]S AS A CLASS1 IF WE CONSID] GROSS SOCIAL CAPITAL4 ,9 CAPITALI/ SOCIETY ALL ?OSE /RATA >E ECONOMICALLY ONLY ! HANG]S-ON ( ! CAPITALI/ CLASS4 ,IF WE ASK :]E ! CIVIL S]VANTS1 CL]ICS1 (FIC]S1 >TI/S1 ETC41 RECEIVE !IR MEANS ( PUR*ASE1 WE SEE ?AT IT IS P>TLY MA9TA9$ \T ( ! POCKETS ( ! CAPITALI/S1 P>TLY \T ( ! WAGES ( LABOR 7VIA ! 9DIRECT TAX SY/EM74 ,ECONOMICALLY !SE GR\PS CANNOT BE A SPECIAL CLASS ( CONSUM]S1 AS !Y DO NOT HAVE ANY 9DEP5D5T S\RCES ( PUR*AS+ P[]1 BUT >E 9CLUD$ AS P>ASITES 9 ! CONSUMPTION ( ! TWO MAJOR CLASSES1 WORK]S & CAPITALI/S4 

,SO WE /ILL DO NOT SEE ANY CU/OM]S = ! LATT] PORTION ( COMMODITIES1 :O C\LD 9ITIATE ! PROCESS ( ACCUMULATION4 

,9 ! 5D1 ! SOLUTION ( ! PROBLEM IS QUITE SIMPLE4 ,P]HAPS WE >E ACT+ LIKE ! RID] :O IS DESP]ATELY LOOK+ = ! NAG HE IS SITT+ ON4 ,P]HAPS ! CAPITALI/S >E MUTUAL CU/OM]S = ! REMA9D] ( ! COMMODITIES - NOT TO USE !M C>ELESSLY1 BUT TO USE !M = ! EXT5SION ( PRODUCTION1 = ACCUMULATION4 ,!N :AT ELSE IS ACCUMULATION BUT EXT5SION ( CAPITALI/ PRODUCTION8 ,?OSE GOODS :I* FULFILL ?IS PURPOSE MU/ NOT CONSI/ ( LUXURI\S >TICLES = ! PRIVATE CONSUMPTION ( ! CAPITALI/S1 BUT MU/ BE COMPOS$ ( V>I\S MEANS ( PRODUCTION 7NEW CON/ANT CAPITAL7 & PROVISIONS = ! WORK]S .<V>IABLE CAPITAL.>4 

,ALL RI<T1 BUT SU* A SOLUTION ONLY PU%ES ! PROBLEM FROM ?IS MOM5T TO ! NEXT4 ,AFT] WE HAVE ASSUM$ ?AT ACCUMULATION HAS />T$ & ?AT ! 9CREAS$ PRODUCTION ?R[S AN EV5 BIGG] AM\NT ( COMMODITIES ON TO ! M>KET ! FOLL[+ YE>1 ! SAME QUE/ION >ISES AGA93 :]E DO WE !N F9D ! CONSUM]S = ?IS EV5 GREAT] AM\NT ( COMMODITIES8 ,WILL WE ANSW]3 WELL1 ?IS GR[+ AM\NT ( GOODS WILL AGA9 BE EX*ANG$ AMONG ! CAPITALI/S TO EXT5D PRODUCTION AGA91 & SO =?1 YE> AFT] YE>8 ,!N WE HAVE ! R\NDAB\T ?AT REVOLVES >\ND ITSELF 9 EMPTY SPACE4 ,?AT IS NOT CAPITALI/ ACCUMULATION1 I4E4 ! AMASS+ ( MONEY CAPITAL1 BUT ITS CONTR>Y3 PRODUC+ COMMODITIES = ! SAKE ( IT2 FROM ! /&PO9T ( CAPITAL AN UTT] ABSURDITY4 ,IF ! CAPITALI/S AS A CLASS >E ! ONLY CU/OM]S = ! TOTAL AM\NT ( COMMODITIES1 AP>T FROM ! %>E !Y HAVE TO P>T ) TO MA9TA9 ! WORK]S - IF !Y MU/ ALWAYS BUY ! COMMODITIES ) !IR [N MONEY1 & REALIZE ! SURPLUS VALUE1 !N AMASS+ PR(IT1 ACCUMULATION = ! CAPITALI/ CLASS1 CANNOT POSSIBLY TAKE PLACE4 

,!Y MU/ F9D MANY O!R BUY]S :O RECEIVE !IR MEANS ( PUR*ASE FROM AN 9DEP5D5T S\RCE1 & DO NOT GET IT \T ( ! POCKET ( ! CAPITALI/ LIKE ! LABOR]S OR ! COLLABORATORS ( CAPITAL1 ! GOV]NM5T (FICIALS1 (FIC]S1 CL]GY & LIB]AL PR(ESSIONS4 ,!Y HAVE TO BE CONSUM]S :O RECEIVE !IR MEANS ( PUR*ASE ON ! BASIS ( COMMODITY EX*ANGE1 I4E4 ALSO PRODUCTION ( GOODS1 BUT TAK+ PLACE \TSIDE ( CAPITALI/ COMMODITY PRODUCTION4 ,!Y MU/ BE PRODUC]S1 :OSE MEANS ( PRODUCTION >E NOT TO BE SE5 AS CAPITAL1 & :O BELONG TO NEI!R ( ! TWO CLASSES - CAPITALI/S OR WORK]S - BUT :O /ILL HAVE A NE$1 ONE WAY OR ANO!R1 = CAPITALI/ COMMODITIES4 

,BUT :]E >E ?OSE BUY]S8 ,AP>T FROM ! CAPITALI/S ) !IR 5T\RAGE ( HANG]S-ON1 !RE >E NO O!R CLASSES OR /RATA 9 SOCIETY TODAY4 

,H]E WE GET D[N TO ! HE>T ( ! PROBLEM4 ,M>X1 9 ! SECOND VOLUME ( ,CAPITAL1 AS 9 ! FIR/1 PRESUPPOSES ?AT CAPITALI/ PRODUCTION IS ! SOLE & EXCLUSIVE MODE ( PRODUCTION4 ,HE SAYS 9 ! FIR/ VOLUME 

,H]E WE TAKE NO ACC\NT ( EXPORT TRADE1 BY MEANS ( :I* A NATION CAN *ANGE >TICLES ( LUXURY EI!R 9TO MEANS ( PRODUCTION OR MEANS ( SUBSI/5CE1 & VICE V]SA4 ,9 ORD] TO EXAM9E ! OBJECT ( \R 9VE/IGATION 9 ITS 9TEGRITY1 FREE FROM ALL DI/URB+ SUBSIDI>Y CIRCUM/ANCES1 WE MU/ TREAT ! :OLE WORLD AS ONE NATION1 & ASSUME ?AT CAPITALI/ PRODUCTION IS EV]Y:]E E/ABLI%$ & HAS POSSESS$ ITSELF ( EV]Y BRAN* ( 9DU/RY4.<#f.> 

,& 9 ! SECOND VOLUME3 

',AP>T FROM ?IS CLASS1 ACCORD+ TO \R ASSUMPTION - ! G5]AL & EXCLUSIVE DOM9ATION ( CAPITALI/ PRODUCTION - !RE IS NO O!R CLASS AT ALL EXCEPT ! WORK+ CLASS4'.<#g.> 

,UND] ?IS CONDITION1 !RE >E ONLY CAPITALI/S CUM HANG]S-ON & WORK]S 9 SOCIETY2 O!R CLASSES1 O!R PRODUC]S & CONSUM]S >E NO:]E TO BE F\ND4 ,9 ?AT CASE1 CAPITALI/ PRODUCTION IS FAC$ ) ! 9SOLUBLE QUE/ION :I* ,I TRI$ TO PO9T \T ABOVE4 

,Y\ CAN TWI/ & TURN IT AS Y\ WI%1 BUT SO LONG AS WE RETA9 ! ASSUMPTION ?AT !RE >E NO O!R CLASSES BUT CAPITALI/S & WORK]S1 !N !RE IS NO WAY ?AT ! CAPITALI/S AS A CLASS CAN GET RID ( ! SURPLUS GOODS 9 ORD] TO *ANGE ! SURPLUS VALUE 9TO MONEY1 & ?US ACCUMULATE CAPITAL4 

,BUT ,M>X'S ASSUMPTION IS ONLY A !ORETICAL PREMISE 9 ORD] TO SIMPLIFY 9VE/IGATION4 ,9 REALITY1 CAPITALI/ PRODUCTION IS NOT ! SOLE & COMPLETELY DOM9ANT =M ( PRODUCTION1 AS EV]YONE KN[S1 & AS ,M>X HIMSELF /RESSES 9 ,CAPITAL4 ,9 REALITY1 !RE >E 9 ALL CAPITALI/ C\NTRIES1 EV5 9 ?OSE ) ! MO/ DEVELOP$ L>GE-SCALE 9DU/RY1 NUM]\S >TISAN & PEASANT 5T]PRISES :I* >E 5GAG$ 9 SIMPLE COMMODITY PRODUCTION4 ,9 REALITY1 ALONGSIDE ! OLD CAPITALI/ C\NTRIES !RE >E /ILL ?OSE EV5 9 ,EUROPE :]E PEASANT & >TISAN PRODUCTION IS /ILL /RONGLY PR$OM9ANT1 LIKE ,RUSSIA1 ! ,BALKANS1 ,SC&9AVIA & ,SPA94 ,& F9ALLY1 !RE >E HUGE CONT95TS BESIDES CAPITALI/ ,EUROPE & ,NOR? ,AM]ICA1 :]E CAPITALI/ PRODUCTION HAS ONLY SCATT]$ ROOTS1 & AP>T FROM ?AT ! PEOPLE ( !SE CONT95TS HAVE ALL SORTS ( ECONOMIC SY/EMS1 FROM ! PRIMITIVE ,COMMUNI/ TO ! FEUDAL1 PEASANTRY & >TISAN4 ,NOT ONLY DO ALL !SE SOCIAL & PRODUCTIVE =MS CO-EXI/1 & CO-EXI/ LOCALLY ) CAPITALISM1 BUT !RE IS A LIVELY 9T]C\RSE ( A SPECIFIC K9D4 ,CAPITALI/ PRODUCTION AS PROP] MASS PRODUCTION DEP5DS ON CONSUM]S FROM PEASANT & >TISAN /RATA 9 ! OLD C\NTRIES1 & CONSUM]S FROM ALL C\NTRIES2 BUT = TE*NICAL REASONS1 IT CANNOT EXI/ )\T ! PRODUCTS ( !SE /RATA & C\NTRIES4 ,SO !RE MU/ DEVELOP RI<T FROM ! />T AN EX*ANGE RELATION%IP BETWE5 CAPITALI/ PRODUCTION & ! NON-CAPITALI/ MILIEU1 :]E CAPITAL NOT ONLY F9DS ! POSSIBILITY ( REALIZ+ SURPLUS VALUE 9 H>D CA% = FUR!R CAPITALIZATION1 BUT ALSO RECEIVES V>I\S COMMODITIES TO EXT5D PRODUCTION1 & F9ALLY W9S NEW PROLET>IANIZ$ LABOR =CES BY DIS9TEGRAT+ ! NON-CAPITALI/ =MS ( PRODUCTION4 

,?IS IS ONLY ! B>E ECONOMIC CONT5T ( ! RELATION%IP4 ,ITS CONCRETE DESIGN 9 REALITY =MS ! HI/ORIC PROCESS ( ! DEVELOPM5T ( CAPITALISM ON ! WORLD /AGE 9 ALL ITS COLORFUL & MOV+ V>IETY4 

,FIR/1 ! EX*ANGE RELATION ( CAPITAL ) ITS NON-CAPITALI/ 5VIRONM5T CONFRONTS ! DIFFICULTIES ( A B>T] ECONOMY1 SECURE SOCIAL RELATIONS & ! LIMIT$ DEM& ( PATRI>*AL PEASANT ECONOMY & >TISAN PRODUCTION4 ,H]E CAPITAL USES 'H]OIC MEANS'1 ! AX ( POLITICAL VIOL5CE4 ,ITS FIR/ ACT 9 ,EUROPE IS ! REVOLUTION>Y CONQUE/ ( ! FEUDAL B>T] ECONOMY4 ,OV]SEAS1 IT BEG9S ) ! SUBJUGATION & DE/RUCTION ( TRADITIONAL COMMUNITIES1 ! WORLD HI/ORICAL ACT ( ! BIR? ( CAPITAL1 S9CE !N ! CON/ANT EPIPH5OM5ON ( ACCUMULATION4 ,?R\< DE/RUCTION ( ! PRIMITIVE B>T] RELATIONS 9 !SE C\NTRIES1 ,EUROPEAN CAPITAL OP5S ! DOORS TO COMMODITY EX*ANGE & PRODUCTION1 TRANS=MS ! POPULATION 9TO CU/OM]S ( CAPITALI/ COMMODITIES & HA/5S ITS [N ACCUMULATION BY MAK+ MASS RAIDS ON !IR NATURAL RES\RCES & ACCUMULAT$ TREASURES4 ,S9CE ! BEG9N+ ( ! N9ETE5? C5TURY1 ACCUMULAT$ CAPITAL FROM ,EUROPE HAS BE5 EXPORT$ ALONG !SE L9ES TO NON-CAPITALI/ C\NTRIES 9 O!R P>TS ( ! WORLD1 :]E IT F9DS NEW CU/OM]S & ?US NEW OPPORTUNITIES = ACCUMULATION ON ! RU9S ( ! NATIVE =MS ( PRODUCTION4 

,?US CAPITALISM EXP&S BECAUSE ( ITS MUTUAL RELATION%IP ) NON-CAPITALI/ SOCIAL /RATA & C\NTRIES1 ACCUMULAT+ AT !IR EXP5SE & AT ! SAME TIME PU%+ !M ASIDE TO TAKE !IR PLACE4 ,! MORE CAPITALI/ C\NTRIES P>TICIPATE 9 ?IS HUNT+ = ACCUMULATION >EAS1 ! R>] ! NON-CAPITALI/ PLACES /ILL OP5 TO ! EXPANSION ( CAPITAL BECOME & ! T\<] ! COMPETITION2 ITS RAIDS TURN 9TO A *A9 ( ECONOMIC & POLITICAL CATA/ROPHES3 WORLD CRISES1 W>S1 REVOLUTION4 

,BUT BY ?IS PROCESS CAPITAL PREP>ES ITS [N DE/RUCTION 9 TWO WAYS4 ,AS IT APPROA*ES ! PO9T :]E HUMANITY ONLY CONSI/S ( CAPITALI/S & PROLET>IANS1 FUR!R ACCUMULATION WILL BECOME IMPOSSIBLE4 ,AT ! SAME TIME1 ! ABSOLUTE & UNDIVID$ RULE ( CAPITAL AGGRAVATES CLASS /RUGGLE ?R\<\T ! WORLD & ! 9T]NATIONAL ECONOMIC & POLITICAL AN>*Y TO SU* AN EXT5T ?AT1 LONG BE=E ! LA/ CONSEQU5CES ( ECONOMIC DEVELOPM5T1 IT MU/ LEAD TO ! REBELLION ( ! 9T]NATIONAL PROLET>IAT AGA9/ ! EXI/5CE ( ! RULE ( CAPITAL4 

,?IS1 9 BRIEF1 IS MY CONCEPTION ( ! PROBLEM & ITS SOLUTION4 ,AT FIR/ GLANCE IT MAY APPE> TO BE A PURELY !ORETICAL EX]CISE4 ,& YET ! PRACTICAL MEAN+ ( ! PROBLEM IS AT H& - ! CONNECTION ) ! MO/ \T/&+ FACT ( \R TIME3 IMP]IALISM4 ,! TYPICAL EXT]NAL PH5OM5A ( IMP]IALISM3 COMPETITION AMONG CAPITALI/ C\NTRIES TO W9 COLONIES & SPH]ES ( 9T]E/1 OPPORTUNITIES = 9VE/M5T1 ! 9T]NATIONAL LOAN SY/EM1 MILIT>ISM1 T>IFF B>RI]S1 ! DOM9ANT ROLE ( F9ANCE CAPITAL & TRU/S 9 WORLD POLITICS1 >E ALL WELL KN[N4 ,ITS CONNECTION ) ! F9AL PHASE ( CAPITALISM1 ITS IMPORTANCE = ACCUMULATION1 >E SO BLATANTLY OP5 ?AT IT IS CLE>LY ACKN[L$G$ BY ITS SUPPORT]S AS WELL AS ITS 5EMIES4 ,BUT ,SOCIAL ,DEMOCRACY REFUSES TO BE SATISFI$ ) ?IS EMPIRICAL KN[L$GE4 ,IT MU/ SE>* = ! PRECISE ECONOMIC RULES BEH9D APPE>ANCES1 TO F9D ! ACTUAL ROOTS ( ?IS L>GE & COLORFUL COMPLEX ( IMP]IALI/ PH5OM5A4 ,AS ALWAYS 9 !SE CASES1 ONLY PRECISE !ORETICAL KN[L$GE ( ! PROBLEM AT ITS ROOTS CAN PROVIDE \R PRACTICAL /RUGGLE AGA9/ IMP]IALISM ) SECURITY1 AIM & =CE - ESS5TIAL = ! POLITICS ( ! PROLET>IAT4 ,BE=E ,M>X'S ,CAPITAL APPE>$1 ! FACT ?AT !RE WAS EXPLOITATION1 SURPLUS LABOR & PR(ITS1 WAS WELL KN[N4 ,BUT ONLY ! PRECISE !ORY ( SURPLUS VALUE1 ! WAGE LAWS & ! 9DU/RIAL RES]VE >MY1 AS ,M>X BASES !M 9 HIS !ORY ( VALUE1 HAVE GIV5 A /RONG F\NDATION = ! PRACTICAL CLASS /RUGGLE1 ON :I* ! ,G]MAN &1 9 ITS FOOT/EPS1 ! 9T]NATIONAL LABOR MOVEM5T DEVELOP$ UNTIL ! ,WORLD ,W> .<,FIR/ ,WORLD ,W>.>4 ,?AT !ORY ALONE IS NOT 5\<2 ?AT ONE CAN SOMETIMES CONNECT ! BE/ !ORY ) ! WOR/ PRACTICE IS %[N BY ! PRES5T COLLAPSE ( ,G]MAN ,SOCIAL ,DEMOCRACY4 ,?IS COLLAPSE DID NOT OCCUR AS A RESULT ( ,M>XI/ !ORY1 BUT 9 SPITE ( IT1 & IT CAN ONLY BE OV]?R[N BY BR++ ! PRACTICE ( ! LABOR MOVEM5T 9TO H>MONY ) ITS !ORY4 ,9 ! CLASS /RUGGLE AS A :OLE1 AS 9 EA* IMPORTANT P>T ( IT1 WE CAN ONLY GA9 A SECURE F\NDATION = \R POSITION FROM ,M>X'S !ORY1 FROM ! BURI$ TREASURES F\ND 9 HIS FUNDAM5TAL WORKS4 

,!RE IS NO D\BT ?AT ! EXPLANATION = ! ECONOMIC ROOTS ( IMP]IALISM MU/ BE D$UC$ FROM ! LAWS ( CAPITAL ACCUMULATION1 S9CE1 ACCORD+ TO COMMON EMPIRICAL KN[L$GE1 IMP]IALISM AS A :OLE IS NO?+ BUT A SPECIFIC ME?OD ( ACCUMULATION4 ,BUT H[ IS ?AT POSSIBLE1 IF ONE DOES NOT QUE/ION ,M>X'S ASSUMPTIONS 9 ! SECOND VOLUME ( ,CAPITAL :I* >E CON/RUCT$ = A SOCIETY 9 :I* CAPITALI/ PRODUCTION IS ! ONLY =M1 :]E ! 5TIRE POPULATION CONSI/S SOLELY ( CAPITALI/S & WAGE LABOR]S8 

,H[EV] ONE DEF9ES ! 9N] ECONOMIC ME*ANISMS ( IMP]IALISM1 ONE ?+ IS OBVI\S & COMMON KN[L$GE3 ! EXPANSION ( ! RULE ( CAPITAL FROM ! OLD CAPITALI/ C\NTRIES TO NEW >EAS1 & ! ECONOMIC & POLITICAL COMPETITION ( ?OSE C\NTRIES = ! NEW P>TS ( ! WORLD4 ,BUT ,M>X ASSUMES1 AS WE HAVE SE5 9 ! SECOND VOLUME ( ,CAPITAL1 ?AT ! :OLE WORLD IS ONE CAPITALI/ NATION1 ?AT ALL O!R =MS ( ECONOMY & SOCIETY HAVE ALREADY DISAPPE>$4 ,H[ CAN ONE EXPLA9 IMP]IALISM 9 A SOCIETY :]E !RE IS NO LONG] ANY SPACE = IT8 

,IT WAS AT ?IS PO9T ?AT ,I BELIEV$ ,I HAD TO />T MY CRITIQUE4 ,! !ORETICAL ASSUMPTION ( A SOCIETY ( CAPITALI/S & WORK]S ONLY - :I* IS LEGITIMATE = C]TA9 AIMS ( 9VE/IGATION 7AS 9 ! FIR/ VOLUME ( ,CAPITAL1 ! ANALYSIS ( 9DIVIDUAL CAPITAL & ITS PRACTICE ( EXPLOITATIONS 9 ! FACTORY7 NO LONG] SEEMS ADEQUATE :5 WE DEAL ) ! ACCUMULATION ( GROSS SOCIAL CAPITAL4 ,AS ?IS REPRES5TS ! REAL HI/ORICAL PROCESS ( CAPITALI/ DEVELOPM5T1 IT SEEMS IMPOSSIBLE TO ME TO UND]/& IT IF ONE AB/RACTS IT FROM ALL CONDITIONS ( HI/ORICAL REALITY4 ,CAPITAL ACCUMULATION AS ! HI/ORICAL PROCESS DEVELOPS 9 AN 5VIRONM5T ( V>I\S PRE-CAPITALI/ =MATIONS1 9 A CON/ANT POLITICAL /RUGGLE & 9 RECIPROCAL ECONOMIC RELATIONS4 ,H[ CAN ONE CAPTURE ?IS PROCESS 9 A BLOODLESS !ORETICAL FICTION1 :I* DECL>ES ?IS :OLE CONTEXT1 ! /RUGGLE & ! RELATIONS1 TO BE NON-EXI/5T8 

,H]E ESPECIALLY IT SEEMS NECESS>Y1 9 ! SPIRIT ( ,M>XI/ !ORY1 TO AB&ON ! PREMISE ( ! FIR/ VOLUME1 & TO C>RY \T ! 9QUIRY 9TO ACCUMULATION AS A TOTAL PROCESS1 9VOLV+ ! METABOLISM ( CAPITAL & ITS HI/ORICAL 5VIRONM5T4 ,IF ONE DOES ?IS1 !N ! EXPLANATION ( ! PROCESS FOLL[S FREELY FROM ,M>X'S1 BASIC !ORIES1 & IS CONSI/5T ) ! O!R PORTIONS ( HIS MAJOR WORKS ON ECONOMICS4 

,M>X HIMSELF ONLY POS$ ! QUE/ION ( ! ACCUMULATION ( GROSS CAPITAL1 BUT HIS ANSW] W5T NO FUR!R4 ,AS A BASIS = HIS ANALYSIS1 HE FIR/ SELECT$ ?AT PURE CAPITALI/ SOCIETY2 BUT NOT ONLY DID HE NOT TAKE ?IS ANALYSIS TO ITS CONCLUSION1 HE ALSO BROKE (F AT JU/ ?IS C5TRAL QUE/ION4 ,9 ORD] TO ILLU/RATE HIS CONCEPTION HE CON/RUCT$ SOME MA!MATICAL MODELS1 BUT H>DLY HAD HE />T$ ON !IR SIGNIFICANCE = PRACTICAL SOCIAL POSSIBILITIES & !IR V]IFICATION FROM ?IS /&PO9T :5 SICKNESS & DEA? =C$ HIM TO /OP WRIT+4 ,IT WAS CLE>LY LEFT TO HIS PUPILS TO SOLVE ?IS PROBLEM 7LIKE MANY O!RS71 & MY ,ACCUMULATION WAS 9T5D$ AS AN ATTEMPT 9 ?IS DIRECTION4 

,! SOLUTION ,I PROPOS$ MI<T HAVE BE5 JUDG$ AS CORRECT OR 9CORRECT2 IT C\LD HAVE BE5 CRITICIZ$1 CONTE/$1 SUPPLEM5T$2 OR ANO!R SOLUTION C\LD HAVE BE5 PRODUC$4 ,NONE ( ?IS HAPP5$4 ,:AT FOLL[$ WAS QUITE UNEXPECT$3 ! 'EXP]TS' EXPLA9$ ?AT !RE WAS NO PROBLEM TO BE SOLV$6 ,M>X'S ILLU/RATIONS 9 ! SECOND VOLUME ( ,CAPITAL W]E A SUFFICI5T & EXHAU/IVE EXPLANATION ( ACCUMULATION2 ! MODELS !RE PROV$ QUITE CONCLUSIVELY ?AT CAPITAL C\LD GR[ EXCELL5TLY1 & PRODUCTION C\LD EXP&1 IF !RE WAS NO O!R MODE ( PRODUCTION 9 ! WORLD ?AN ! CAPITALI/ ONE2 IT WAS ITS [N M>KET1 & ONLY MY COMPLETE 9ABILITY TO UND]/& ! ,A,B,C ( ,M>X'S MODELS C\LD P]SUADE ME TO SEE A PROBLEM H]E4 

,FOOTNOTES 

.<#a.> .<,VORW>TS WAS ! C5TRAL DAILY NEWSPAP] ( ! ,SOCIAL ,DEMOCRATIC ,P>TY ( ,G]MANY1 ,S,P,D1 PUBLI%$ 9 ,B]L94.> 

.<#b.> .<,FRANZ ,MEHR+ 7#a#h#d#f-#a#i#a#i74 ,BIOGRAPH] ( ,K>L ,M>X & CLOSE COLLABORATOR ( ,ROSA ,LUXEMBURG 9 H] ANTI-W> PROPAG&A1 #a#i#a#d-#a#h4 ,JO9$ ! ,S,P,D AT ! AGE ( =TY-SIX & WAS A BRILLIANT CONTRIBUTOR TO ITS NEWSPAP]S & J\RNALS4 ,) ,LUXEMBURG & ,LIEBKNE*T1 HE HELP$ TO F\ND ! ,SP>TAKUS ,LEAGUE 9 #aiai :I* WAS ! IMM$IATE =]UNN] ( ! ,K,P,D 7,COMMUNI/ ,P>TY ( ,G]MANY74.> 

.<#c.> .<,J4 ,K>SKI1 PSEUDONYM = ,JULIAN ,M>*LEWSKI4 ,HE WAS ONE ( ! LEAD]S ( ! ,S,D,K,P 7,SOCIAL ,DEMOCRACY ( ! ,K+DOM ( ,POL&74 ,K>SKI WORK$ = MANY YE>S 9 ,G]MANY AS AN ,S,P,D J\RNALI/4 ,9 #aiai HE W5T TO ,RUSSIA & BECAME AN ACTIVE MEMB] ( ! ,BOL%EVIK P>TY4 ,DI$ 9 #a#i#b#e4.> 

.<#d.> .<,PHYSIOCRATS4 ,EI<TE5?-C5TURY S*OOL ( ECONOMI/S4 ,! MA9 /R& 9 !IR !ORIES WAS ?AT ONLY AGRICULTURAL LABOR WAS PRODUCTIVE4 ,= ELABORATION & CRITICISM SEE ,K>L ,M>X1 ,!ORIES ( ,SURPLUS ,VALUE1 PT4#a 7,MOSC[74.> 

.<#e.> ,K>L ,M>X1 ,CAPITAL 7,=EIGN ,LANGUAGE ,PUBLI%+ ,H\SE1 ,MOSC[ #a#i#f#e71 ,VOL4,I1 P4#e#f#d4 

.<#f.>,CAPITAL1 ,VOL4,I1 P4#e#h#a1 FOOTNOTE #a4 

.<#g.>IBID41 ,VOL4,I,I1 P4#c#d#h4 

O ,*APT] #b 3 ,! ,CRITICS 

,JU/ CONSID]3 IT IS A FACT ?AT ! CONTROV]SIES 9 POLITICAL ECONOMY OV] ! PROBLEM ( ACCUMULATION & ! POSSIBILITY ( ! REALIZATION ( SURPLUS VALUE HAVE GONE ON = A C5TURY2 9 ! TW5TIES1 9 ,SISMONDI'S DISPUTES ) ,SAY1 ,RIC>DO & ,MAC,CULLO*1.<#a.> 9 ! EI<TIES & N9ETIES BETWE5 ! ,RUSSIAN ',POPULI/S'.<#b.> & ,M>XI/S4 ,! MO/ DI/+UI%$ POLITICAL ECONOMI/S 9 ,FRANCE1 ,5GL&1 ,G]MANY & ,RUSSIA AIR$ ! QUE/ION REPEAT$LY1 BO? BE=E & AFT] ! APPE>ANCE ( ,M>X'S ,CAPITAL4 ,:]EV]1 UND] ! IMPACT ( %>P SOCIAL CRITICISM1 ACTIVE 9TELLECTUAL LIFE PULSAT$ ?R\< POLITICAL ECONOMY1 ! PROBLEM LEFT NO PEACE = ! RESE>*]S4 ,IT IS A FACT ?AT ! SECOND VOLUME ( ,CAPITAL IS NOT REALLY A COMPLETE WORK1 LIKE ! FIR/1 BUT ONLY A TORSO1 A LOOSE COLLECTION ( MORE OR LESS F9I%$ FRAGM5TS & DRAFTS SU* AS A RESE>*] WRITES D[N = HIS [N UND]/&+1 ! ELABORATION ( :I* WAS REPEAT$LY HELD BACK & 9T]RUPT$ BY ILLNESS4 ,9 P>TICUL>1 ! ANALYSIS ( ! ACCUMULATION ( GROSS CAPITAL1 ) :I* WE >E DEAL+ H]E1 CAME (F WOR/1 BE+ ! LA/ *APT] ( ! MANUSCRIPT3 \T ( A VOLUME ( #ebc PAGES IT ACC\NTS = A SCANTY ?IRTY-FIVE PAGES & BREAKS (F 9 MID-FL[4 

,IT IS A FACT ?AT ?IS LA/ SECTION ( ! VOLUME1 AS ,5GELS TE/IFIES1 SEEM$ TO ,M>X HIMSELF TO BE '9 URG5T NE$ ( REVISION' & REMA9S1 ACCORD+ TO ! SAME TE/IMONY1 'ONLY A PRELIM9>Y TREATM5T ( ! SUBJECT'4 ,AS ,M>X1 9 ! PROCESS ( HIS ANALYSIS1 DEALT AGA9 & AGA9 ) ! PROBLEM ( ! REALIZATION ( SURPLUS VALUE1 HIS D\BTS APPE>$ 9 EV] DIFF]5T =MS1 & ?US HE C]TA9LY BORE WITNESS HIMSELF TO ! DIFFICULTY ( ! PROBLEM4 

,IT IS A FACT ?AT !RE >E BLATANT CONTRADICTIONS BETWE5 ! PREMISES ( ! %ORT FRAGM5T AT ! 5D ( ! SECOND VOLUME1 :]E ,M>X DEALS ) ACCUMULATION1 & ! ILLU/RATIONS ( ! ?IRD VOLUME1 :]E HE DESCRIBES ! 'TOTAL MOVEM5T ( CAPITAL'4 ,! SAME IS TRUE ( MANY IMPORTANT LAWS 9 ! FIR/ VOLUME1 :I* ,I REF] TO 9 DETAIL 9 MY BOOK4 

,IT IS A FACT ?AT1 S9CE ITS FIR/ APPE>ANCE ON ! /AGE ( HI/ORY1 CAPITALI/ PRODUCTION HAS DEMON/RAT$ ITS 5ORM\S ATTRACTION T[>DS NON-CAPITALI/ C\NTRIES4 ,IT RUNS LIKE A R$ ?READ ?R\<\T ITS DEVELOPM5T1 GR[S EV] MORE IMPORTANT UNTIL1 9 ! LA/ TW5TY-FIVE YE>S1 9 ! EPO* ( IMP]IALISM1 IT APPE>S DIRECTLY AS ! DET]M9+ & DOM9ANT FACTOR 9 SOCIAL LIFE4 

,IT IS A FACT ?AT EV]YONE KN[S ?AT !RE NEV] HAS BE51 NOR DOES !RE EXI/ AT PRES5T1 A C\NTRY ) EXCLUSIVELY CAPITALI/ PRODUCTION1 :]E !RE >E ONLY CAPITALI/S & WAGE-E>N]S4 ,! SOCIETY = :I* ! PREMISES ( ! SECOND VOLUME ( ,CAPITAL W]E DESIGN$ DOES NOT EXI/ ANY:]E 9 CONCRETE REALITY4 

,&1 DESPITE ALL ?IS1 ! (FICIAL 'EXP]TS' ( ,M>XISM EXPLA9 ?AT !RE IS NO PROBLEM ( ACCUMULATION1 ?AT EV]Y?+ HAS ALREADY BE5 SOLV$ ONCE & = ALL BY ,M>X6 ,!Y HAVE NEV] BE5 DI/URB$ BY ! REM>KABLE PRECONDITION ( ACCUMULATION 9 ! SECOND VOLUME1 !Y EV5 FAIL$ TO NOTICE IT AS ANY?+ PECULI>6 ,& N[ ?AT ! SITUATION HAS BE5 PO9T$ \T TO !M !Y F9D ?IS V]Y /RANG5ESS QUITE 9 ORD]4 ,!Y CL+ DOGG$LY TO ?IS IDEA & VIOL5TLY ATTACK ANYONE :O ?9KS HE SEES A PROBLEM :]E (FICIAL ,M>XISM HAS BE5 NO?+ BUT SELF-SATISFI$ = DECADES6 

,?IS IS SU* A BLATANT CASE ( EPIGONISM' ?AT IT CAN ONLY BE COMP>$ ) AN ANECDOTAL EV5T FROM ! REALMS ( PETTIFOGG+ ACADEMICS3 ! WELL-KN[N /ORY ( ! SO-CALL$ ',BLATTV]SETZUNG' ( ,KANT'S ,PROLEGOM5A4 

,= A C5TURY1 ! PHILOSOPHICAL WORLD >GU$ PASSIONATELY AB\T ! V>I\S PROBLEMS ( ,KANTIAN !ORY1 & AB\T ! ,PROLEGOM5A 9 P>TICUL>2 ! MEAN+ ( ,KANT'S !ORY GAVE RISE TO :OLE S*OOLS :I* F\<T BITT]LY AMONG !MSELVES4 ,BUT !N ,PR(ESSOR ,VAIH+].<#c.> CLE>$ UP ONE ( ! MO/ OBSCURE ( !SE PROBLEMS 9 ! SIMPLE/ POSSIBLE WAY - BY PO9T+ \T ?AT A P>T ( P>AGRAPH #d ( ! ,PROLEGOM5A1 :I* IS 9 FACT COMPLETELY UNRELAT$ TO ! RE/ ( ! *APT]1 BELONG$ 9 P>AGRAPH #b3 IT HAD JU/ BE5 DETA*$ BY A PR9T+ ]ROR 9 ! ORIG9AL $ITION & BE5 PUT 9 ! WRONG PLACE4 ,& ANYONE :O N[ READS ! TEXT /RAI<T=W>DLY CAN IMM$IATELY SEE ?IS4 ,BUT NOT ! CLIQUI% ACADEMICS :O = A C5TURY HAD BE5 CON/RUCT+ PR(\ND !ORIES UPON A PR9T+ ]ROR4 ,& !RE ACTUALLY WAS A P$ANTIC ACADEMIC1 A PR(ESSOR 9 ,BONN1 :O DEMON/RAT$ 9 F\R 9DIGNANT >TICLES 9 ! ,PHILOSOPHIS*E ,MONAT%EFTE ?AT ! 'ALLEG$ 0,BLATTV]SETZUNG0' DID NOT EXI/1 ?AT IT WAS PRECISELY ?IS PR9T+ ]ROR :I* EXPRESS$ ! SOLE CORRECT & UNADULT]AT$ ,KANT1 & ?AT :OEV] D>$ TO LOCATE A PR9T+ ]ROR !RE HAD NOT UND]/OOD ! SMALLE/ GRA9 ( ,KANT'S PHILOSOPHY4 

,?IS IS ! SORT ( WAY 9 :I* ! 'EXP]TS' N[ CL+ ON TO ! PREMISES ( ! SECOND VOLUME ( ,M>X'S ,CAPITAL & ! MA!MATICAL MODELS :I* >E BUILT UPON IT4 ,! MA9 D\BT ( MY CRITIQUE IS DIRECT$ T[>DS ! FACT ?AT1 ON ! QUE/ION ( ACCUMULATION1 MA!MATICAL MODELS CAN PROVE ABSOLUTELY NO?+1 S9CE !IR HI/ORICAL PREMISE IS UNT5ABLE4 ,! REPLY IS3 BUT ! MODELS WORK \T EXACTLY1 SO ! PROBLEM ( ACCUMULATION IS SOLV$ - IT SIMPLY DOESN'T EXI/4 

,H]E IS AN EXAMPLE ( ! OR?ODOX CULT ( =MULAS4 

,9 ,NEUE ,ZEIT ,OTTO ,BAU].<#d.> EMB>KS ON AN 9VE/IGATION ( ! QUE/ION ,I POS$ - H[ IS SURPLUS VALUE REALIZ$ - 9 ! FOLL[+ FA%ION4 ,HE CON/RUCTS F\R L>GE TABLES ( FIGURES 9 :I* ,ROMAN LETT]S ALONE1 SU* AS ,M>X US$ = ! ABBREVIAT$ ANNOTATION ( V>IABLE & CON/ANT CAPITAL1 >E NOT 5\<4 ,BAU] ADDS ON A FEW ,GREEK LETT]S4 ,?IS MAKES HIS TABLES LOOK EV5 MORE 9TIMIDAT+ ?AN ALL ! MODELS 9 ,M>X'S ,CAPITAL4 ,) ?IS CONTRAPTION HE !N TRIES TO %[ H[ ! CAPITALI/S1 AFT] R5EW+ ! US$ CAPITAL1 DISPOSE ( ! EXCESS COMMODITIES :I* CONTA9 ! SURPLUS VALUE :I* IS TO BE TURN$ 9TO CAPITAL = !M3 ',& FUR!RMORE 7AFT] REPLAC+ ! OLD MEANS ( PRODUCTION71 ! CAPITALI/S WANT TO USE ! SURPLUS VALUE ACCUMULAT$ 9 ! FIR/ YE> TO 5L>GE EXI/+ OP]ATIONS OR E/ABLI% NEW ONES4 ,IF 9 ! NEXT YE> !Y WANT TO USE CAPITAL :I* HAS GR[N BY #a#b1#e !Y MU/ BUILD NEW WORK%OPS1 BUY NEW MA*9ES & 9CREASE !IR SUPPLY ( RAW MAT]IALS1 ETC41 ETC41 ?IS YE>4'.<#e.> 

,?US ! PROBLEM IS SAID TO BE SOLV$4 ,IF '! CAPITALI/S WANT' TO EXP& PRODUCTION1 !N ( C\RSE !Y NE$ MORE MEANS ( PRODUCTION ?AN BE=E & SO ACT MUTUALLY AS !IR [N CONSUM]S4 ,AT ! SAME TIME1 !Y NE$ MORE WORK]S & MORE PROVISIONS = !SE WORK]S1 :I* !Y MAKE !MSELVES ANYWAY4 ,?IS DEALS ) ! 5TIRE SURPLUS ( MEANS ( PRODUCTION & PROVISIONS1 & ACCUMULATION CAN BEG94 ,AS ONE CAN SEE1 EV]Y?+ DEP5DS ON :E!R ! CAPITALI/S 'WANT' TO UND]TAKE AN EXPANSION ( PRODUCTION4 ,& :Y NOT8 ,WELL1 ( C\RSE1 '!Y WANT TO'4 ',CONSEQU5TLY1 ! 5TIRE PRODUCTIVE VALUE ( BO? SPH]ES1 ?US ALSO ! 5TIRE SURPLUS VALUE1 IS REALIZ$1' ,BAU] EXPLA9S TRIUMPHANTLY1 & FROM ?IS HE CONCLUDES3 

',SIMIL>LY1 ,TABLE ,I,V CLE>LY %[S ?AT ! TOTAL PRODUCTIVE VALUE ( BO? SPH]ES IS DISPOS$ ( )\T ANY TR\BLE & ! TOTAL SURPLUS VALUE IS REALIZ$1 NOT ONLY 9 ! FIR/ YE>1 BUT 9 EA* SUBSEQU5T YE>4 ,COMRADE ,LUXEMBURG IS ?US 9CORRECT 9 H] ASSUMPTION ?AT ! ACCUMULAT$ P>T ( SURPLUS VALUE CANNOT BE REALIZ$4'.<#f.> 

,BAU] HAS SIMPLY NOT NOTIC$ ?AT HE DID NOT NE$ NE>LY SU* LONG & DETAIL$ CALCULATIONS ) F\R TABLES1 ) WIDE1 L5G?Y1 OVAL-BRACKET$ & F\R-/ORI$ =MULAS TO REA* ?IS BRILLIANT CONCLUSION4 ,! CONCLUSION :I* ,BAU] HAS REA*$ DOES NOT EV5 FOLL[ FROM HIS TABLES2 HE SIMPLY TAKES IT AS GIV54 ,BAU] SIMPLY ASSUMES :AT WAS TO BE PROV5 - ?AT IS ALL HIS :OLE 'PRO(' CONSI/S (4 

,IF ! CAPITALI/S WANT TO 5L>GE PRODUCTION BY AS MU* AS !Y POSSESS 9 SURPLUS CAPITAL1 !N ALL !Y HAVE TO DO IS PUT ?IS SURPLUS CAPITAL 9TO !IR [N PRODUCTION 7PROVID+1 ( C\RSE1 ?AT !Y PRODUCE ABSOLUTELY ALL ! NECESS>Y MEANS ( PRODUCTION & PROVISIONS !MSELVES67 - !N !Y >E LEFT ) NO UNSALEABLE COMMODITY SURPLUS4 ,CAN ANY?+ BE MORE SIMPLE1 & >E ANY NONS5SICAL =MULAS ) ,ROMAN & ,GREEK LETT]S NE$$ ACTUALLY TO 'PROVE' SOME?+ SO OBVI\S8 

,BUT !N ! QUE/ION >OSE AS TO :E!R ! CAPITALI/S1 :O ( C\RSE ALWAYS 'WANT' TO ACCUMULATE1 CAN ALSO DO SO1 ?AT IS1 :E!R !Y CAN F9D A CONT9UALLY EXP&+ M>KET = EXP&$ PRODUCTION1 & :]E SU* A M>KET IS TO BE F\ND8 ,& ! ANSW] TO ?AT CANNOT COME FROM ANY >I?METICAL OP]ATIONS ) FICTITI\S NUMB]S ON ! PAP]1 BUT ONLY FROM AN ANALYSIS ( ! SOCIO-ECONOMIC RELATIONS ( PRODUCTION4 

,IF ONE ASKS ! 'EXP]TS'3 ',YES1 ALL WELL & GOOD1 ! CAPITALI/S 0WANT0 TO EXP& PRODUCTION1 BUT !N :O >E !Y GO+ TO SELL !IR 9CREAS$ AM\NT ( COMMODITIES TO8' !Y ANSW]3 ',! CAPITALI/S WILL ALWAYS CONSUME ?IS 9CREAS+ AM\NT ( COMMODITIES !MSELVES1 BECAUSE !Y ALWAYS 0WANT0 TO EXP& PRODUCTION4' 

',& ! MODELS %[ :O BUYS ! PRODUCTS1' ! ,VORW>TS REVIEW]1 ,G4 ,ECK/E91 EXPLA9S4.<#g.> 

,TO BE BRIEF3 EA* YE> ! CAPITALI/S EXP& BY EXACTLY AS MU* AS !Y HAVE 'SAV$ UP' 9 SURPLUS VALUE2 !Y >E !IR [N CONSUM]S & ?US ! M>KET DOES NOT BO!R !M4 ,?IS ASSUMPTION IS ! />T+-PO9T ( ! :OLE 'PRO('4 ,BUT A MA!MATICAL =MULATION IS BO? UNNECESS>Y = ?IS ASSUMPTION & COMPLETELY 9CAPABLE ( PROV+ IT4 ,! NAIVE IDEA ?AT MA!MATICAL =MULAS C\LD PROVE ! MA9 PO9T H]E - ! ECONOMIC POSSIBILITY ( SU* AN ACCUMULATION - IS ! AMUS+ QUID PRO QUO ( ! 'EXP]T' CU/ODIANS ( ,M>XISM4 ,9 ITSELF IT IS 5\< TO MAKE ,M>X TURN 9 HIS GRAVE4 

,M>X HIMSELF NEV] DREAM$ ( PRES5T+ HIS [N MA!MATICAL MODELS AS ANY SORT ( PRO( ?AT ACCUMULATION WAS 9 FACT POSSIBLE 9 A SOCIETY CONSI/+ SOLELY ( CAPITALI/S & WORK]S4 ,M>X 9VE/IGAT$ ! 9T]NAL ME*ANISM ( CAPITALI/ ACCUMULATION & E/ABLI%$ C]TA9 ECONOMIC LAWS ON :I* ! PROCESS IS BAS$4 ,HE />T$ R\<LY LIKE ?IS3 IF ! ACCUMULATION ( GROSS CAPITAL1 ?AT IS1 9 ! 5TIRE CLASS ( CAPITALI/S1 IS TO TAKE PLACE1 !N C]TA9 QUITE EXACT QUANTITATIVE RELATIONS MU/ EXI/ BETWE5 ! TWO L>GE DEP>TM5TS ( SOCIAL PRODUCTION3 ! PRODUCTION ( MEANS ( PRODUCTION & ! PRODUCTION ( MEANS ( CONSUMPTION4 ,PROGRESSIVE EXPANSION ( PRODUCTION &2 AT ! SAME TIME1 PROGRESSIVE ACCUMULATION ( CAPITAL - :I* IS ! OBJECT ( IT ALL - CAN ONLY PROCE$ UNH9D]$ IF SU* RELATIONS >E MA9TA9$ SO ?AT ! ONE L>GE DEP>TM5T ( PRODUCTION CONT9U\SLY WORKS H&-9-H& ) ! O!R4 ,M>X SKET*$ A MA!MATICAL EXAMPLE1 A MODEL ) IMAG9>Y NUMB]S1 TO ILLU/RATE HIS ?\<TS CLE>LY & EXACTLY1 & HE USES IT TO %[ ?AT IF ACCUMULATION IS TO PROCE$1 !N ! 9DIVIDUAL PO9TS 9 ! MODEL 7CON/ANT CAPITAL1 V>IABLE CAPITAL1 SURPLUS VALUE7 MU/ BEHAVE 9 SU* & SU* A WAY TO EA* O!R4 

,CLE>LY1 = ,M>X1 MA!MATICAL MODELS >E EXAMPLES1 ILLU/RATIONS ( HIS ECONOMIC ?\<TS1 JU/ AS ,QUESNAY'S ,TABLEAU ECONOMIQUE.<#h.> WAS = HIS !ORY1 OR AS ! MAPS FROM V>I\S AGES >E ILLU/RATIONS ( :AT W]E !N DOM9ANT A/RONOMICAL & GEOGRAPHICAL CONCEPTS4 ,:E!R ! LAWS ( ACCUMULATION :I* ,M>X CON/RUCT$1 OR MORE EXACTLY 9DICAT$ SKET*ILY1 >E CORRECT OR NOT CAN OBVI\SLY BE PROV$ ONLY BY ECONOMIC ANALYSIS1 COMP>ISON ) O!R LAWS SET UP BY ,M>X1 CONSID]ATION ( V>I\S CONSEQU5CES TO :I* !Y LEAD1 EXAM9ATION ( ! PREMISES FROM :I* !Y PROCE$1 & SO ON4 ,BUT :AT IS ONE TO ?9K ( ',M>XI/S' :O REJECT ANY SU* CRITICISM AS LUNACY1 S9CE ! CORRECTNESS ( ! LAWS IS PROV5 BY ! MA!MATICAL MODELS6 ,I D\BT :E!R ACCUMULATION C\LD PROCE$ 9 A SOCIETY COMPOS$ SOLELY ( CAPITALI/S & WORK]S1 SU* AS ! ONE ON :I* ,M>X'S MODELS >E BAS$1 & ,I BELIEVE ?AT ! DEVELOPM5T ( CAPITALI/ PRODUCTION CANNOT 9 G5]AL BE FITT$ 9TO A S*EMATIC RELATION BETWE5 PURE CAPITALI/ CONC]NS AT ALL4 ,! ANSW] ( ! 'EXP]TS' IS3 ,BUT IT'S C]TA9LY POSSIBLE6 ,?AT IS DEMON/RAT$ BRILLIANTLY 'BY ,TABLE ,I,V'1 '& ! MODELS %[ 444' - I4E4 ! FACT ?AT A R[ ( NUMB]S ON A PIECE ( PAP] ?\<T UP = ! PURPOSE ( ILLU/RATION CAN BE ADD$ & SUBTRACT$ AT WILL6 

,9 OLD5 TIMES PEOPLE BELIEV$ 9 ! EXI/5CE ( ALL K9DS ( FABUL\S CREATURES3 DW>FS1 PEOPLE ) ONE EYE1 ) ONE >M & LEG1 & SO ON4 ,DOES ANYBODY BELIEVE ?AT SU* CREATURES EV] REALLY EXI/$8 ,BUT WE SEE !M DRAWN 9 PRECISELY ON ! OLD MAPS4 ,IS ?AT NOT PRO( ?AT ?OSE CONCEPTIONS ( ! ANCI5TS CORRESPOND$ EXACTLY ) REALITY8 

,BUT LET US TAKE A DULL EXAMPLE4 

,A CO/+ IS PRODUC$ = ! PLANN$ CON/RUCTION ( A RAILWAY FROM T[N ,X TO T[N ,Y2 PRECISE CALCULATIONS >E MADE AS TO H[ L>GE ! ANNUAL PASS5G] & GOODS TRAFFIC HAS TO BE SO ?AT1 AP>T FROM DEPRECIATION1 RUNN+ OP]ATIONAL CO/S & ! NORMAL 'RES]VES'1 A 'REASONABLE' DIVID5D CAN BE DI/RIBUT$1 %ALL WE SAY FIR/ #e P] C5T1 !N #h P] C5T4 ,NATURALLY1 ! C5TRAL QUE/ION = ! F\ND]S ( ! RAILWAY COMPANY IS :E!R !Y CAN EXPECT ! PASS5G] & GOODS TRAFFIC ON ! PROPOS$ /RET* :I* W\LD 5SURE ! PR(ITABILITY CALCULAT$ 9 ! CO/+4 ,CLE>LY1 ! ANSW] TO ?IS CAN ONLY COME FROM PRECISE & BASIC FACTS AB\T ! PREVI\S TRAFFIC ON ! /RET*1 ITS IMPORTANCE = COMM]CE & 9DU/RY1 ! POPULATION GR[? ( ! ADJAC5T T[NS & VILLAGES & O!R FACTS CONC]N+ ECONOMIC & SOCIAL RELATIONS4 ,N[1 :AT W\LD ONE SAY TO A MAN :O EXCLAIM$3 ,Y\ ASK1 :]E WILL ! PR(IT ( ! L9E COME FROM8 ,I BEG Y\R P>DON1 BUT ?AT IS D[N 9 BLACK & :ITE 9 ! CO/+4 ,Y\ CAN READ !RE ?AT IT COMES FROM ! PASS5G] & GOODS TRAFFIC1 & ?AT ! TAK+S FROM ?IS WILL PROVIDE FIR/ = A #e P] C5T1 !N = AN #h P] C5T DIVID5D4 ,IF Y\ CAN'T SEE ?AT1 G5TLEM51 !N Y\ HAVE SIMPLY COMPLETELY MISUND]/OOD ! NATURE1 AIM & SIGNIFICANCE ( ! CO/+4.<#i.> 

,9 SOB] CIRCLES ONE W\LD PROBABLY 9DICATE1 ) A %RUG ( ONE'S %\LD]S T[>DS ! KN[-ALL1 ?AT HE BELONG$ 9 ! LUNATIC ASYLUM OR ! NURS]Y4 ,BUT AMONG ! (FICIAL CU/ODIANS ( ,M>XISM SU* KN[-ALLS =M ! 'SUPREME C\RT' ( 'EXP]TS' :O GIVE REPORTS ON :E!R O!R PEOPLE HAVE UND]/OOD OR MISUND]/OOD ! 'NATURE1 AIM & SIGNIFICANCE ( ,M>X'S MODELS'6 

,:AT1 !N1 IS ! ESS5CE ( ! >GUM5T :I* ! MODELS ALLEG$LY 'PROVE'8 ,MY OBJECTION WAS ?AT1 = ACCUMULATION TO TAKE PLACE1 IT MU/ BE POSSIBLE TO SELL COMMODITIES 9 9CREAS+ QUANTITY 9 ORD] TO CONV]T ! PR(IT 9H]5T 9 !M 9TO MONEY4 ,ONLY !N IS IT POSSIBLE TO CONT9UE EXP&+ PRODUCTION1 !RE=E TO CONT9UE ACCUMULATION4 ,:]E DO ! CAPITALI/S AS AN 5TIRE CLASS F9D ?IS M>KET8 ,MY CRITICS ANSW] ?AT !Y =M !IR [N M>KET4 ,AS !Y CONT9UALLY EXP& !IR [N OP]ATIONS 7OR />T NEW ONES71 !Y !MSELVES NE$ MORE & MORE MEANS ( PRODUCTION = !IR FACTORIES & PROVISIONS = !IR WORK]S4 ,CAPITALI/ PRODUCTION IS ITS [N M>KET1 ?US ! LATT] GR[S AUTOMATICALLY ) ! GR[? ( PRODUCTION4 ,BUT FROM ! /&PO9T ( CAPITAL ! MA9 QUE/ION IS3 CAN CAPITALI/ PR(IT BE OBTA9$ OR ACCUMULAT$ 9 ?IS WAY8 ,ONLY !N C\LD !RE BE ANY TALK ( CAPITAL ACCUMULATION4 

,LET US TAKE ANO!R SIMPLE EXAMPLE3 CAPITALI/ ,A PRODUCES COAL1 CAPITALI/ ,B MANUFACTURES MA*9ES1 CAPITALI/ ,C MAKES FOOD4 ,LET US IMAG9E ?AT !SE ?REE CAPITALI/S =M ! 5TIRETY ( CAPITALI/ EMPLOY]S4 ,IF ,B MAKES MORE & MORE MA*9ES1 ,A CAN SELL HIM MORE & MORE COAL & ?US CAN BUY MORE & MORE MA*9ES FROM HIM1 :I* HE USES = M9+4 ,BO? NE$ MORE & MORE WORK]S1 & !SE NE$ MORE & MORE PROVISIONS1 SO ,C TOO F9DS AN EV] GREAT] M>KET & ?US HE 9 TURN BECOMES AN EV] L>G] CONSUM] ( BO? COAL & MA*9ES4 ,! :OLE ?+ REVOLVES 9 EV] HI<] CIRCLES - AS LONG AS WE >E W&]+ AB\T 9 ?9 AIR4 ,BUT LET US EXAM9E ! SUBJECT MORE CONCRETELY4 

,TO ACCUMULATE CAPITAL DOES NOT MEAN TO PRODUCE HI<] & HI<] M\NTA9S ( COMMODITIES1 BUT TO CONV]T MORE & MORE COMMODITIES 9TO MONEY CAPITAL4 ,BETWE5 ! ACCUMULATION ( SURPLUS VALUE !RE ALWAYS LIES A DECISIVE LEAP1 ! SALTO MORTALE ( COMMODITY PRODUCTION1 AS ,M>X CALLS IT3 SELL+ = MONEY4 ,IS ?IS P]HAPS ONLY VALID = ! 9DIVIDUAL CAPITALI/1 BUT NOT = ! 5TIRE CLASS1 = SOCIETY AS A :OLE8 ,DEF9ITELY NOT4 ,= 9 ! SOCIAL OBS]VATION ( PH5OM5A '444 WE MU/ NOT1' SAYS ,M>X1 'LAPSE 9TO ! MANN] COPI$ BY ,PR\DHON.<#a.> FROM B\RGEOIS ECONOMY & LOOK UPON ?IS MATT] AS ?\< A SOCIETY ) A CAPITALI/ MODE ( PRODUCTION1 IF VIEW$ 5 BLOC1 AS A TOTALITY1 W\LD LOSE ?IS ITS SPECIFIC HI/ORICAL & ECONOMIC *>ACT]4 ,NO1 ON ! CONTR>Y4 ,WE HAVE1 9 ?AT CASE1 TO DEAL ) ! AGGREGATE CAPITALI/4'.<#a#a.> 

,N[1 ! ACCUMULATION ( PR(IT AS MONEY PR(IT IS JU/ SU* A SPECIFIC & QUITE ESS5TIAL *>ACT]I/IC ( CAPITALI/ PRODUCTION1 & IS AS VALID = ! CLASS AS IT IS = ! 9DIVIDUAL EMPLOY]4 ,M>X HIMSELF ALSO EMPHASIZES1 PRECISELY ) ! OBS]VATION ( ! ACCUMULATION ( GROSS CAPITAL1 '444 ! =MATION ( NEW MONEY CAPITAL :I* ACCOMPANIES ACTUAL ACCUMULATION & NECESSITATES IT UND] CAPITALI/ PRODUCTION 444'.<#a#b.> ,& 9 ! PROCESS ( HIS 9VE/IGATION HE RETURNS AGA9 & AGA9 TO ! QUE/ION3 H[ IS IT POSSIBLE = ! CLASS ( CAPITALI/S TO ACCUMULATE MONEY CAPITAL8 

,LET US N[ EXAM9E ! 9TELLIG5T CONCEPTION ( ! 'EXP]TS' FROM ?IS PO9T ( VIEW4 ,CAPITALI/ ,A SELLS HIS COMMODITIES TO ,B1 & SO RECEIVES SURPLUS VALUE 9 MONEY FROM ,B4 ,! LATT] SELLS HIS COMMODITIES TO ,A & RECEIVES ! MONEY BACK FROM ,A1 :I* CONV]TS HIS SURPLUS VALUE 9TO MONEY4 ,BO? SELL !IR COMMODITIES TO ,C & SO ALSO RECEIVE A SUM ( MONEY = !IR SURPLUS VALUE FROM ! SAME ,C4 ,BUT :]E DOES ! LATT] GET HIS MONEY FROM8 ,FROM ,A & ,B4 ,ACCORD+ TO \R PREMISE !RE >E NO O!R S\RCES = ! REALIZATION ( SURPLUS VALUE1 I4E4 NO O!R COMMODITY CONSUM]S4 ,BUT CAN NEW MONEY CAPITAL BE =M$ 9 ?IS WAY TO 5RI* ,A1 ,B & ,C8 ,LET US = A MOM5T ASSUME ?AT ) ALL ?REE ! QUANTITY ( COMMODITIES = EX*ANGE GR[S1 PRODUCTION EXP&S UN9T]RUPT$1 & !RE=E1 ! AM\NTS ( SURPLUS VALUE EXPRESS$ 9 COMMODITIES CAN GR[4 ,EXPLOITATION IS COMPLETE1 ! POSSIBILITY ( 5RI*M5T1 ( ACCUMULATION1 HAS COME4 ,BUT EX*ANGE1 ! REALIZATION ( ! 9CREAS$ SURPLUS VALUE 9 9CREAS$ NEW MONEY CAPITAL1 HAS TO TAKE PLACE 9 ORD] = POSSIBILITY TO BECOME REALITY4 ,NOTICE ?AT WE DO NOT ASK H]E1 AS ,M>X (T5 DOES 9 ! SECOND VOLUME ( ,CAPITAL3 :]E DOES ! MONEY = ! CIRCULATION ( SURPLUS VALUE COME FROM8 TO ANSW] F9ALLY3 FROM ! GOLD-M9]4 ,WE ASK RA!R3 H[ DOES NEW MONEY CAPITAL COME 9TO ! POCKETS ( ! CAPITALI/S1 S9CE 7AP>T FROM ! WORK]S7 !Y >E ! ONLY ONES :O CAN CONSUME EA* O!R'S COMMODITIES8 ,H]E MONEY CAPITAL W&]S CONT9U\SLY \T ( ONE POCKET 9TO ! O!R4 

,BUT WAIT3 P]HAPS SU* QUE/IONS >E PUTT+ US ON QUITE ! WRONG TRACK4 ,P]HAPS PR(IT ACCUMULATION DOES TAKE PLACE 9 ?IS CEASELESS W&]+ FROM ONE CAPITALI/'S POCKET 9TO ! O!R1 9 ! SUCCESSIVE REALIZATION ( PRIVATE PR(ITS1 :]E ! AGGREGATE AM\NT ( MONEY CAPITAL DOES NOT EV5 HAVE TO GR[1 BECAUSE SU* A ?+ AS ! 'AGGREGATE PR(IT' ( ALL CAPITALI/S DOES NOT EXI/ \TSIDE ( OBSCURE !ORY8 

,BUT - OH DE> - SU* AN ASSUMPTION W\LD SIMPLY LEAD US TO ?R[ ! ?IRD VOLUME ( ,M>X'S ,CAPITAL 9TO ! FIRE4 ,= ! DOCTR9E ( AV]AGE PR(IT1 ONE ( ! MO/ IMPORTANT DISCOV]IES ( ,M>X'S ECONOMIC !ORY1 IS C5TRAL TO ITS >GUM5T4 ,?IS ALONE GIVES CONCRETE MEAN+ TO ! !ORY ( VALUE 9 ! FIR/ VOLUME - ON :I* >E BAS$ BO? ! !ORY ( SURPLUS VALUE & ! SECOND VOLUME1 SO !SE W\LD ALSO HAVE TO F9D !IR WAY 9TO ! FIRE4 ,M>X'S ECONOMIC !ORY /&S & FALLS ) ! CONCEPT ( GROSS SOCIAL CAPITAL AS A CONCRETE AM\NT1 :I* F9DS ITS TANGIBLE EXPRESSION 9 AGGREGATE CAPITALI/ PR(IT & ITS DI/RIBUTION1 & :OSE 9VISIBLE MOVEM5T 9ITIATES ALL VISIBLE MOVEM5TS ( 9DIVIDUAL SUMS ( CAPITAL4 ,GROSS CAPITALI/ PR(IT IS1 9 FACT1 A MU* MORE MAT]IAL ECONOMIC AM\NT ?AN1 = 9/ANCE1 ! TOTAL SUM ( PAID WAGES AT ANY GIV5 TIME4 ,= ! LATT] APPE>S AS A /ATI/ICAL NUMB] ONLY AFT] RETROSPECTIVE ADDITION OV] A P]IOD ( TIME1 :IL/ AGGREGATE PR(IT1 ON ! O!R H&1 EXPRESSES ITSELF 9 ! ECONOMIC ME*ANISM AS A :OLE1 S9CE COMPETITION & PRICE FLUCTUATION >E ALWAYS DI/RIBUT+ IT AMONG 9DIVIDUAL SUMS ( CAPITAL AS AV]AGE PR(IT OR AS EXTRA PR(IT4 

,SO ! PROBLEM REMA9S3 GROSS SOCIAL CAPITAL CONT9UALLY REALIZES AN AGGREGATE PR(IT 9 MONEY-=M1 :I* MU/ CONT9UALLY GR[ = GROSS ACCUMULATION TO TAKE PLACE4 ,N[1 H[ CAN ! AM\NT GR[ IF ITS COMPON5T P>TS >E ALWAYS CIRCULAT+ FROM ONE POCKET TO ANO!R8 

,IT W\LD APPE> ?AT - AS WE HAVE ASSUM$ UP UNTIL N[ - AT LEA/ ! AGGREGATE AM\NT ( COMMODITIES :I* CONTA9 ! PR(IT CAN GR[ 9 ?IS WAY1 & ! ONLY DIFFICULTY LIES 9 SUPPLY+ ! MONEY1 :I* IS P]HAPS ONLY A TE*NICAL QUE/ION ( MONEY CIRCULATION4 ,BUT ONLY APP>5TLY1 SUP]FICIALLY4 ,! AGGREGATE AM\NT ( COMMODITIES WILL NOT 9CREASE1 EXPANSION ( PRODUCTION CANNOT TAKE PLACE1 BECAUSE 9 CAPITALI/ PRODUCTION ! ESS5TIAL PRECONDITION = ?IS IS CONV]SION 9TO MONEY1 ! UNIV]SAL REALIZATION ( PR(IT4 ,! SALE ( 9CREAS+ AM\NTS ( COMMODITIES1 & ! REALIZATION ( PR(IT1 FROM ,A TO ,B1 ,B TO ,C & ,C BACK AGA9 TO ,A & ,B CAN ONLY TAKE PLACE IF AT LEA/ ONE ( !M CAN 9 ! 5D F9D A M>KET \TSIDE ! CLOS$ CIRCLE4 ,IF ?IS DOES NOT HAPP5 ! R\NDAB\T WILL GR9D TO A HALT AFT] ONLY A FEW TURNS4 

,ON ! BASIS ( ?IS ONE CAN APPRECIATE ! PR(UNDITY ( MY 'EXP]T' CRITICS :5 !Y EXCLAIM3 

,:5 ,COMRADE ,LUXEMBURG CONT9UES3 ,WE >E CLE>LY GO+ R\ND 9 CIRCLES4 ,FROM ! PO9T ( VIEW ( ! CAPITALI/S IT IS ABSURD TO PRODUCE MORE MEANS ( CONSUMPTION JU/ TO MA9TA9 MORE WORK]S1 & TO PRODUCE MORE MEANS ( PRODUCTION JU/ TO GIVE ?IS 9CREAS$ LABOR =CE SOME?+ TO DO6 - IT IS DIFFICULT TO FA?OM ! RELEVANCE ( !SE WORDS TO ,M>X'S MODELS4 ,! OBJECT ( CAPITALI/ PRODUCTION IS PR(IT3 ?IS COMES TO ! CAPITALI/S FROM ! PROCESS DESCRIB$1 & IS !RE=E NOT ! LEA/ BIT ABSURD FROM ! CAPITALI/ PO9T ( VIEW2 ON ! CONTR>Y1 FROM ?IS PO9T ( VIEW IT IS ! V]Y EMBODIM5T ( REASON1 I4E4 ( ! /RIV+ AFT] PR(IT4.<#a#c.> 

,9 PO9T ( FACT1 IT IS 'DIFFICULT TO FA?OM' :I* IS GREAT] H]E1 ! NAIVELY ADMITT$ COMPLETE 9CAPABILITY ( GO+ DEEPLY 9TO ! BASIC ,M>XI/ !ORY ( GROSS SOCIAL CAPITAL AS OPPOS$ TO 9DIVIDUAL CAPITAL1 OR ! COMPLETE LACK ( COMPREH5SION ( ! QUE/ION ,I POS$4 ,I SAY3 PRODUCTION TO AN EV] GREAT] EXT5T = PRODUCTION'S SAKE IS1 FROM ! CAPITALI/ PO9T ( VIEW1 ABSURD1 BECAUSE 9 ?IS WAY - ACCORD+ TO ! PREMISE :I* ! 'EXP]TS' CL+ TO - IT IS IMPOSSIBLE = ! 5TIRE CLASS ( CAPITALI/S TO REALIZE PR(IT1 & !RE=E TO ACCUMULATE4 ,! ANSW] IS3 ,BUT ?AT IS BY NO MEANS ABSURD1 BECAUSE ?AT IS ! WAY PR(IT IS ACCUMULAT$6 ,& H[ DO Y\ KN[ ?AT1 OH EXP]TS8 ,N[1 IT IS %[N 444 9 ! MA!MATICAL MODELS ?AT PR(IT IS 9 FACT ACCUMULAT$4 ,9 ?OSE MODELS1 9TO :I* WE HAVE >BITR>ILY WRITT5 R[S & R[S ( NUMB]S1 ) :I* MA!MATICAL OP]ATIONS RUN FAULTLESSLY1 & 9 :I* MONEY CAPITAL IS 5TIRELY NEGLECT$4 

,CLE>LY1 ALL CRITICISM MU/ HOPELESSLY %ATT] ITSELF AGA9/ !SE /URDY 'EXP]TS'1 BECAUSE ! EXP]TS SIMPLY LOOK FROM ! PO9T ( VIEW ( ! 9DIVIDUAL CAPITALI/S1 :I* IS TO SOME DEGREE SUFFICI5T = ! ANALYSIS ( EXPLOITATION1 I4E4 ( ! PROCESS ( PRODUCTION1 & ?US TO UND]/& ! FIR/ VOLUME ( ,CAPITAL1 BUT IS TOTALLY 9SUFFICI5T :]E ! CIRCULATION & REPRODUCTION ( CAPITAL >E CONC]N$4 ,! SECOND & ?IRD VOLUMES ( ,M>X'S ,CAPITAL1 :I* >E ILLUM9$ BY ! BASIC CONCEPT ( GROSS SOCIAL CAPITAL1 >E = !M DEAD CAPITAL1 9 :I* !Y HAVE LE>N$ LETT]S1 =MULAS1 'MODELS'1 BUT HAVE MISS$ ! ESS5CE4 ,M>X HIMSELF WAS C]TA9LY NO 'EXP]T'4 ,= HE WAS NOT CONT5T ) ! >I?METICAL 'PROCESS' ( HIS MODELS2 AGA9 & AGA91 HE ASK$3 H[ IS IT POSSIBLE = G5]AL ACCUMULATION TO TAKE PLACE1 = NEW MONEY CAPITAL TO BE =M$ 9 ! CLASS ( CAPITALI/S8 ,IT HAS ALWAYS BE5 ! PRIVILEGE ( ! 'EPIGONES' TO TAKE F]TILE HYPO!SES1 TURN !M 9TO RIGID DOGMA1 & BE SMUGLY SATISFI$1 :]E A PIONE]+ M9D WAS FILL$ ) CREATIVE D\BT4 

,! 'EXP]TS'1 PO9T ( VIEW1 H[EV]1 LEADS TO A /R+ ( 9TRIGU+ CONSEQU5CES1 :I* !Y HAVE OBVI\SLY NOT TAK5 ! TR\BLE TO ?9K OV]4 

,FIR/ CONSEQU5CE3 IF CAPITALI/ PRODUCTION CAN ACT LIMITLESSLY AS ITS [N CONSUM]1 I4E4 PRODUCTION & M>KET >E ID5TICAL1 IT BECOMES TOTALLY IMPOSSIBLE TO EXPLA9 ! P]IODIC APPE>ANCE ( CRISES4 ,IF PRODUCTION CAN1 'AS ! MODELS %['1 ACCUMULATE AT WILL BY US+ ITS [N GR[? = NEW EXPANSION1 IT IS PUZZL+ H[ & :Y CIRCUM/ANCES CAN >ISE :]E CAPITALI/ PRODUCTION CANNOT F9D A SUFFICI5T M>KET = ITS COMMODITIES4 ,ACCORD+ TO ! =MULA ( ! EXP]TS1 ALL IT HAS TO DO IS SWALL[ UP ! COMMODITY SURPLUS ITSELF1 & PUT IT 9TO PRODUCTION 7P>TLY AS MEANS ( PRODUCTION1 P>TLY AS PROVISION = ! WORK]S71 '9 EA* SUBSEQU5T YE>' AS ,OTTO ,BAU]'S ',TABLE ,I,V' %[S4 ,! 9DIGE/IBLE COMMODITIES W\LD !N BE CONV]T$ 9TO ! NEW BLESS+ ( ACCUMULATION & PR(IT-MAK+4 ,AT ALL EV5TS1 IT TURNS ! SPECIFIC ,M>XI/ CONCEPT ( CRISIS 9TO AN ABSURDITY1 ACCORD+ TO :I* CRISES COME FROM ! T5D5CY ( CAPITAL TO \TGR[ EA* GIV5 LIMIT TO ! M>KET 9 EV] %ORT] TIME4 ,= H[ C\LD PRODUCTION \TGR[ ! M>KET1 S9CE IT IS ITS [N M>KET1 ?US ! M>KET AUTOMATICALLY GR[S AS FA/ AS PRODUCTION8 ,9 O!R WORDS1 H[ C\LD CAPITALI/ PRODUCTION P]IODICALLY \TGR[ ITSELF8 ,IT C\LD DO IT AS EASILY AS SOMEONE CAN JUMP OV] HIS [N %AD[4 ,! CAPITALI/ CRISIS BECOMES AN 9EXPLICABLE PH5OM5ON4 ,OR !RE IS ONLY ONE EXPLANATION LEFT = IT3 ! CRISIS DOES NOT COME FROM ! 9CONGRUITY BETWE5 ! ABILITY ( CAPITALI/ PRODUCTION & ?AT ( ! M>KET TO EXP&1 BUT ONLY FROM ! DISPROPORTIONATE RELATIONS BETWE5 DIFF]5T BRAN*ES ( CAPITALI/ PRODUCTION4 ,9 !MSELVES1 !SE C\LD BE QUITE SUFFICI5T CONSUM]S = !MSELVES1 EXCEPT ?AT1 AS A RESULT ( AN>*Y1 SEV]AL ?+S >E NOT CORRECTLY PROPORTION$1 TOO MU* ( ONE1 TOO LITTLE ( ! O!R BE+ PRODUC$4 ,?IS W\LD MEAN REJECT+ ,M>X & F9ALLY 5D+ UP ) ! MAN :OM ,M>X RIDICUL$ SO ?OR\<LY1 ! PATRI>* ( VULG> ECONOMICS1 ( ! ,MAN*E/] !ORY & B\RGEOIS H>MONY1 ! 'WRET*$ MAN'1 ,SAY1 :O 9 #ahc PROP\ND$ ! DOGMA3 ,IT IS ABSURD TO SAY ?AT TOO MU* ( ALL COMMODITIES CAN BE PRODUC$1 !RE CAN ONLY BE P>TIAL CRISES1 BUT NO G5]AL ONES3 IF = ?IS REASON A C\NTRY HAS TOO MU* ( ONE K9D ( PRODUCT1 ?AT ONLY PROVES ?AT IT HAS PRODUC$ TOO LITTLE ( SOME O!R K9D4 

,SECOND CONSEQU5CE3 CAPITALI/ ACCUMULATION BECOMES 7OBJECTIVELY7 LIMITLESS ONCE CAPITALI/ PRODUCTION HAS BUILT A SUFFICI5T M>KET = ITSELF4 ,AS PRODUCTION WILL /ILL GR[1 I4E4 ! PRODUCTIVE =CES WILL DEVELOP )\T LIMIT1 EV5 :5 ALL MANK9D IS DIVID$ 9TO CAPITALI/S & PROLET>IANS1 AS !RE IS NO 5D TO ! ECONOMIC DEVELOPM5T ( CAPITALISM1 ! ONE SPECIFICALLY ,M>XI/ F\NDATION CRUMBLES4 ,ACCORD+ TO ,M>X1 ! REBELLION ( ! WORK]S1 ! CLASS /RUGGLE1 IS ONLY ! IDEOLOGICAL REFLECTION ( ! OBJECTIVE HI/ORICAL NECESSITY ( SOCIALISM1 RESULT+ FROM ! OBJECTIVE IMPOSSIBILITY ( CAPITALISM AT A C]TA9 ECONOMIC /AGE4 ,( C\RSE1 ?AT DOES NOT MEAN 7IT /ILL SEEMS NECESS>Y TO PO9T \T ?OSE BASICS ( ,M>XISM TO ! 'EXP]TS'7 ?AT ! HI/ORICAL PROCESS HAS TO BE1 OR EV5 C\LD BE1 EXHAU/$ TO ! V]Y LIMIT ( ?IS ECONOMIC IMPOSSIBILITY4 ,LONG BE=E ?IS1 ! OBJECTIVE T5D5CY ( CAPITALI/ DEVELOPM5T 9 ?IS DIRECTION IS SUFFICI5T TO PRODUCE SU* A SOCIAL & POLITICAL %>P5+ ( CONTRADICTIONS 9 SOCIETY ?AT !Y MU/ T]M9ATE4 ,BUT !SE SOCIAL & POLITICAL CONTRADICTIONS >E ESS5TIALLY ONLY A PRODUCT ( ! ECONOMIC 9DEF5SIBILITY ( CAPITALISM4 ,! SITUATION CONT9UES TO %>P5 AS ?IS BECOMES 9CREAS+LY OBVI\S4 ,IF WE ASSUME1 ) ! 'EXP]TS'1 ! ECONOMIC 9F9ITY ( CAPITALI/ ACCUMULATION1 !N ! VITAL F\NDATION ON :I* SOCIALISM RE/S WILL DISAPPE>4 ,WE !N TAKE REFUGE 9 ! MI/ ( PRE-,M>XI/ SY/EMS & S*OOLS :I* ATTEMPT$ TO D$UCE SOCIALISM SOLELY ON ! BASIS ( ! 9JU/ICE & EVILS ( TODAY'S WORLD & ! REVOLUTION>Y DET]M9ATION ( ! WORK+ CLASSES4.<#a#d.> 

,?IRD CONSEQU5CE3 :5 CAPITALI/ PRODUCTION BUILDS ITSELF A SUFFICI5T M>KET & P]MITS EXPANSION ( ! TOTAL ACCUMULAT$ VALUE1 !RE APPE>S ANO!R RIDDLE ( MOD]N DEVELOPM5T3 COMPETITION = ! MO/ DI/ANT M>KETS & CAPITAL EXPORTS1 ! MO/ DOM9ANT FEATURE ( MOD]N IMP]IALISM4 ,9DE$ 9COMPREH5SIBLE6 ,:Y ALL ?IS FUSS8 ,:Y CONQU] COLONIES1 :Y ! OPIUM W>S ( ! =TIES & SIXTIES1 :Y ! SQUABBLE = SWAMPS 9 ! ,CONGO1 = ,MESOPOTAMIAN DES]TS8 ,CAPITAL %\LD /AY AT HOME & E>N AN HONE/ LIV+4 ,KRUPP %\LD GO ALONG & PRODUCE = ,?YSS51 ,?YSS5 = ,KRUPP1 LET !M 9VE/ !IR CAPITAL 9 !IR [N 5T]PRISES & EXP& !M MUTUALLY1 & SO ON & SO ON4 ,! HI/ORICAL MOVEM5T ( CAPITAL1 & ) IT MOD]N IMP]IALISM1 BECOMES QUITE 9COMPREH5SIBLE4 

,BUT !RE IS /ILL ,PANNEKOEK'S 9VALUABLE /ATEM5T 9 ! ,BREM] ,BURG]ZEITUNG3 ! SE>* = NON-CAPITALI/ M>KETS IS 'A FACT1 BUT NOT A NECESSITY' - A REAL PE>L ( HI/ORICAL MAT]IALISM1 & HE IS DEAD RI<T6 ,ACCORD+ TO ! ASSUMPTION ( ! 'EXP]TS'1 SOCIALISM AS ! F9AL /AGE1 ) IMP]IALISM AS ITS PR$ECESSOR1 CEASES TO BE A HI/ORICAL NECESSITY4 ,! ONE BECOMES ! LAUDABLE DECISION ( ! WORK+ CLASS2 ! O!R IS SIMPLY A VICE ( ! B\RGEOISIE4 

,SO ! 'EXP]TS' >E FAC$ ) HAV+ TO *OOSE BETWE5 TWO ALT]NATIVES4 ,EI!R - AS !Y D$UCE FROM ,M>X'S MODELS - CAPITALI/ PRODUCTION IS ID5TICAL ) ITS M>KET1 & ! HI/ORICAL MAT]IALI/ EXPLANATION = IMP]IALISM DISAPPE>S1 OR CAPITAL ACCUMULATION CAN ONLY TAKE PLACE 9 SO F> AS CU/OM]S CAN BE F\ND BEYOND CAPITALI/S & WORK]S1 9 :I* CASE GR[+ SALES 9 NON-CAPITALI/ /RATA & C\NTRIES >E ! ESS5TIAL PRECONDITION = ACCUMULATION4 

,DESPITE MY ISOLATION ,I DO HAVE A TRULY NON-SUSPECT & ALSO V]Y 'EXP]T' CR[N WITNESS = ! ABOVE CONSEQU5CES4 

,9 #aib A BOOK WAS PUBLI%$ BY ! ,RUSSIAN ,M>XI/1 ,PR(ESSOR ,MI*AEL ,V4 ,TUGAN-,B>ANOVSKY1 ,! ,!ORY & ,HI/ORY ( ,CRISES 9 ,5GL&4 ,TUGAN REVIS$ ,M>X BY GRADUALLY REPLAC+ HIS !ORY ) ! CLI*$ WISDOMS ( B\RGEOIS VULG> ECONOMI/S4 ,AMONG O!R P>ADOXES1 HE CLAIMS ?AT CRISES >E M]ELY ! RESULT ( MALADJU/M5TS1 NOT ( ! ABILITY ( PRODUCTION TO EXP& FA/] ?AN ! ABILITY ( ! POPULATION TO CONSUME4 ,:AT WAS SO NOVEL & A/ONI%+ AB\T ?IS WISDOM 7:I* HE BORR[$ FROM ,SAY7 WAS ?AT HE US$ ,M>X'S MODELS ( SOCIAL REPRODUCTION 9 ! SECOND VOLUME ( ,CAPITAL TO PROVE IT6 

',IT IS ONLY POSSIBLE'1 SAYS ,TUGAN1 'TO EXP& SOCIAL PRODUCTION IF ! PRODUCTIVE =CES >E SUFFICI5TLY DEVELOP$4 ,?US1 DEM& MU/ ALSO UND]GO A SIMIL> EXPANSION 9 ! PROPORTIONAL DIVISION ( SOCIAL PRODUCTION1 S9CE UND] !SE CONDITIONS EV]Y NEWLY PRODUC$ COMMODITY REPRES5TS NEW PUR*AS+ P[] = ! ACQUISITION ( O!R COMMODITIES' 7P4#b#e7.<#a#dA.>4 

,! 'PRO(' = ?IS COMES FROM ,M>X'S MODELS1 :I* ,TUGAN HAS ONLY REPRODUC$ ) DIFF]5T FIGURES1 & :I* LEAD HIM TO CONCLUDE3 

',! OBJECT ( ! ABOVE MODELS IS TO PROVE SOME?+ :I* 9 ITSELF IS V]Y SIMPLE1 BUT IS FREQU5TLY OBJECT$ TO BE DUE TO AN 9SUFFICI5T UND]/&+ ( ! PROCESS ( ! REPRODUCTION ( SOCIAL CAPITAL1 TO PROVE 9 FACT ! BASIC !SIS ?AT SOCIAL PRODUCTION CREATES ITS [N M>KET4' 7,MY EMPHASIS - ,R4,L47 

,C>RI$ ALONG BY HIS PREF]5CE = P>ADOXES ,TUGAN-,B>ANOVSKY >RIVES AT ! CONCLUSION ?AT CAPITALI/ PRODUCTION IS '9 A C]TA9 S5SE' QUITE 9DEP5D5T ( HUMAN CONSUMPTION4 ,ANYWAY1 WE >E NOT 9T]E/$ H]E 9 ,TUGAN'S JOKES1 BUT ONLY 9 ! 'ACTUALLY V]Y SIMPLE BASIC PR9CIPLE' ON :I* HE CON/RUCTS ALL ?AT FOLL[S4 ,& !RE WE HAVE TO NOTE3 

,:AT MY 'EXP]T' CRITICS >E HOLD+ AGA9/ ME N[ WAS SAID BY ,TUGAN-,B>ANOVSKY1 WORD = WORD1 9 #a#i#b1 SPECIFICALLY 9 TWO TYPICAL ASS]TIONS3 7#a7 CAPITALI/ PRODUCTION BUILDS A M>KET = ITSELF ?R\< ITS [N EXPANSION1 SO ?AT ! SALES \TLET %\LD POSE NO DIFFICULTIES = ACCUMULATION 7AP>T FROM LACK ( PROP] PROPORTION72 7#b7 ! PRO( ?AT ?IS IS SO IS PROVID$ BY MA!MATICAL MODELS SU* AS ?OSE US$ BY ,M>X1 I4E4 EX]CISES 9 ADDITION & SUBTRACTION ON UNCOMPLA9+ PAP]4 ,?US SPOKE ,TUGAN-,B>ANOVSKY 9 #a#i#b4 ,!N ! MAN HAD A T\< TIME4 ,IMM$IATELY1 ,K>L ,KAUTSKY />T$ ON HIM 9 ,NEUE ,ZEIT2 HE M]CILESSLY CRITICIZ$ ! ABSURDITIES ( ! ,RUSSIAN REVISIONI/1 9CLUD+ ! ABOVE-M5TION$ 'BASIC PR9CIPLE'4 

,IF ?AT W]E TRUE 7WROTE ,KAUTSKY71 ! GREAT] ITS CAPITAL WEAL? IS1 ! FA/] ,5GL&'S 9DU/RY W\LD HAVE TO GR[4 ,BUT 9/EAD1 IT IS COM+ TO A /&/ILL1 CAPITAL IS EMIGRAT+ TO ,RUSSIA1 ,S\? ,AFRICA1 ,*9A1 ,JAPAN & SO ON4 ,?IS PH5OM5ON IS EXPLA9$ BY \R !ORY1 ACCORD+ TO :I* UND]-CONSUMPTION IS ! ULTIMATE CAUSE ( CRISES2 IT IS 9COMPREH5SIBLE FROM ,TUGAN-,B>ANOVSKY'S PO9T ( VIEW4.<#a#e.> 

,N[1 :AT IS ! !ORY ?AT ,KAUTSKY OPPOSES TO ,TUGAN'S8 ,H]E IT IS1 9 ,KAUTSKY'S [N WORDS3 

,AL?\< CAPITALI/S 9CREASE !IR WEAL? & ! NUMB] ( EXPLOIT$ WORK]S GR[S1 !Y CANNOT !MSELVES =M A SUFFICI5T M>KET = CAPITALI/-PRODUC$ COMMODITIES1 AS ACCUMULATION ( CAPITAL & PRODUCTIVITY GR[ EV5 FA/]4 ,!Y MU/ F9D A M>KET 9 ?OSE /RATA & NATIONS :I* >E /ILL NON-CAPITALI/4 ,!Y F9D ?IS M>KET1 & EXP& IT1 BUT /ILL NOT FA/ 5\<1 S9CE ?IS ADDITIONAL M>KET H>DLY HAS ! FLEXIBILITY & ABILITY TO EXP& ( ! CAPITALI/ PROCESS ( PRODUCTION4 ,ONCE CAPITALI/ PRODUCTION HAS DEVELOP$ L>GE-SCALE 9DU/RY1 AS WAS ALREADY ! CASE 9 ,5GL& 9 ! N9ETE5? C5TURY1 IT HAS ! POSSIBILITY ( EXP&+ BY SU* LEAPS & B\NDS ?AT IT SOON OV]TAKES ANY EXPANSION ( ! M>KET4 ,?US1 ANY PROSP]ITY :I* RESULTS FROM A SUB/ANTIAL EXPANSION 9 ! M>KET IS DOOM$ FROM ! BEG9N+ TO A %ORT LIFE1 & WILL NECESS>ILY 5D 9 A CRISIS4 

,?IS1 9 %ORT1 IS ! !ORY ( CRISES :I*1 AS F> AS WE CAN SEE1 IS G5]ALLY ACCEPT$ BY 'OR?ODOX' ,M>XI/S & :I* WAS SET UP BY ,M>X4.<#a#f.> 

,LET US =GET ?AT ,KAUTSKY CALLS ?IS !ORY BY ! DUBI\S NAME ( AN EXPLANATION ( CRISES CAUS$ 'BY UND]-CONSUMPTION'4 ,M>X RIDICULES ?IS 9 ! SECOND VOLUME ( ,CAPITAL 7P4#d#a74 

,LET US =GET ?AT ,KAUTSKY SEES ONLY ! PROBLEM ( CRISES1 )\T NOTIC+ ?AT CAPITALI/ PRODUCTION POSES A PROBLEM AP>T FROM UPS & D[NS 9 ! /ATE ( BUS9ESS4 

,F9ALLY1 LET US =GET ?AT ,KAUTSKY'S EXPLANATION - ?AT ! CONSUMPTION ( CAPITALI/S & WORK]S DOES NOT GR[ 'FA/ 5\<' = ACCUMULATION1 :I* !RE=E NE$S AN 'ADDITIONAL M>KET' - IS RA!R VAGUE & MAKES NO ATTEMPT TO UND]/& ! PROBLEM ( ACCUMULATION 9 ITS EXACT T]MS4 

,WE >E ONLY 9T]E/$ 9 :AT ,KAUTSKY %[S 9 BLACK & :ITE AS HIS [N & ! COMMONLY ACCEPT$ OP9ION AMONG 'OR?ODOX ,M>XI/S'3 

,?AT CAPITALI/S & WORK]S ALONE DO NOT REPRES5T A SUFFICI5T M>KET = ACCUMULATION4 

,?AT CAPITALI/ ACCUMULATION NE$S AN ADDITIONAL M>KET 9 NON-CAPITALI/ /RATA & NATIONS4 

,SO F> ONE ?+ IS C]TA93 9 #a#i#b1 :5 ATTACK+ ,TUGAN-,B>ANOVSKY1 ,KAUTSKY REFUT$ ! SAME ASS]TIONS :I* ! 'EXP]TS' USE TO OPPOSE MY ,ACCUMULATION1 & ! 'EXP]TS' ATTACK AS A HORRIBLE DEVIATION FROM ! TRUE FAI? ! SAME ASS]TIONS1 ONLY ?IS TIME DEAL+ ) ! PROBLEM ( ACCUMULATION 9 AN EXACT MANN]1 :I* ,KAUTSKY US$ 9 OPPOSITION TO ! REVISIONI/ ,TUGAN-,B>ANOVSKY AS ! !ORY ( CRISES 'G5]ALLY ACCEPT$' BY OR?ODOX ,M>XI/S4 

,& H[ DOES ,KAUTSKY PROVE ! UNT5ABILITY ( HIS OPPON5T'S !SIS8 ,JU/ BY US+ ,M>X'S MODELS8 ,KAUTSKY %[S ,TUGAN ?AT1 EV5 :5 PROP]LY US$1 !SE MODELS DO NOT PROVE HIS !SIS BUT1 ON ! CONTR>Y1 PROVE ! !ORY ( CRISES AS CAUS$ BY 'UND]CONSUMPTION 

,! WORLD %AKES TO ITS V]Y F\NDATIONS4 ,HAS ! SUPREME EXP]T 'UND]/OOD' ! 'NATURE1 AIM & SIGNIFICANCE ( ,M>X'S MODELS' EV5 LESS ?AN ,TUGAN8 444 

,BUT ,KAUTSKY DRAWS SOME 9T]E/+ CONCLUSIONS FROM ,TUGAN-,B>ANOVSKY'S ASS]TION4 ,?AT ?IS ASS]TION /RAI<T=W>DLY CONTRADICTS ,M>X'S !ORY ( CRISES1 ?AT IT MAKES ! EXPORT ( CAPITAL TO NON-CAPITALI/ C\NTRIES AN 9EXPLICABLE PH5OM5ON1 WE HAVE ALREADY SE54 ,& N[ ! G5]AL T5D5CY ( ?IS POSITION3 

,:AT PRACTICAL IMPORTANCE 444 DO \R !ORETICAL DIFF]5CES HAVE8 7ASKS ,KAUTSKY7 ,:E!R CRISES >E CAUS$ BY UN/ABLE PROPORTIONS 9 SOCIAL PRODUCTION OR BY UND]-CONSUMPTION - IS ?AT ANY?+ MORE ?AN AN ACADEMIC QUE/ION8 

,?AT IS :AT MANY 'PRACTICAL' M5 MI<T ?9K4 ,BUT 9 FACT ! QUE/ION IS ( GREAT PRACTICAL IMPORTANCE1 ESPECIALLY = TACTICAL DIFF]5CES :I* >E BE+ DISCUSS$ 9 \R P>TY4 ,IT IS NO M]E ACCID5T ?AT REVISIONISM ATTACKS ,M>X'S !ORY ( CRISES ) P>TICUL> VIGOR4 

,& ,KAUTSKY DEMON/RATES EXPLICITLY ?AT ,TUGAN-,B>ANOVSKY'S !ORY ( CRISES BASICALLY LEADS TO AN ALLEG$ 'MOD]ATION ( CLASS CONTRADICTIONS'4 ,?AT MEANS IT IS 9 ! TRADITION ( ! !ORY ?AT BELIEVES 9 ! '*ANGE ( SOCIAL DEMOCRACY FROM A P>TY ( PROLET>IAN CLASS /RUGGLE 9TO A DEMOCRATIC P>TY ON ! LEFT W+ ( A DEMOCRATIC P>TY ( SOCIALI/ RE=M'4.<#a#g.> 

,?IS IS H[ ! SUPREME EXP]T SLEW ! H]ETIC ,TUGAN-,B>ANOVSKY F\RTE5 YE>S AGO ON ?IRTY-SIX PR9T$ PAGES ( ,NEUE ,ZEIT1 F9ALLY WALK+ AWAY ) HIS VICTIM'S SCALP 9 HIS BELT4 

,& N[ ,I MU/ /& BY & WAT* ! 'EXP]T' PUPILS ( ?IS MA/] DAMN MY ANALYSIS ( ACCUMULATION ) ! SAME 'BASIC PR9CIPLE' ?AT CO/ ! ,RUSSIAN REVISIONI/ HIS LIFE 9 ! HUNT+ GR\NDS ( ,NEUE ,ZEIT6 ,IT IS NOT QUITE CLE> :AT HAPP5S 9 ?IS ADV5TURE TO ! '!ORY ( CRISES :I*1 AS F> AS WE CAN SEE1 IS G5]ALLY ACCEPT$ BY OR?ODOX ,M>XI/S'4 

,BUT SOME?+ EV5 MORE ORIG9AL HAPP5$4 ,AFT] MY ,ACCUMULATION HAD BE5 DE/ROY$ ) ,TUGAN-,B>ANOVSKY'S WEAPONS 9 ,VORW>TS1 ! ,BREM] ,BURG]ZEITUNG1 ,DRESD5] ,VOLKSZEITUNG & ! ,FRANKFURT] ,VOLKS/IMME1 ,OTTO ,BAU]'S CRITIQUE APPE>$ 9 ,NEUE ,ZEIT4 ,?IS EXP]T ALSO BELIEV$ 9 ! MAGICAL P[] ( MA!MATICAL =MULAS TO PROVE QUE/IONS ( SOCIAL REPRODUCTION1 AS WE HAVE SE54 ,BUT HE IS /ILL NOT COMPLETELY SATISFI$ ) ,M>X'S MODELS4 ,HE F9DS !M 'NOT 9CONTE/ABLE'1 '>BITR>Y & NOT )\T CONTRADICTIONS'1 :I* HE EXPLA9S BY ! FACT ?AT ,5GELS 'F\ND ?IS P>T UNF9I%$' 9 HIS MA/]'S NOTEBOOKS6 ,HE !RE=E GOES TO ALL ! TR\BLE ( CON/RUCT+ HIS [N =MULAS3 ',?AT IS :Y WE HAVE CON/RUCT$ MODELS :I*1 ONCE ONE ACCEPTS ! ASSUMPTIONS1 >E NOT >BITR>Y4' ,ONLY ) ?IS NEW MODEL DOES ,BAU] BELIEVE HE HAS F\ND 'AN 9CONTE/ABLE BASIS ON :I* TO APPROA* ! PROBLEMS POS$ BY ,COMRADE ,LUXEMBURG'4.<#a#h.> ,BUT ABOVE ALL1 ,BAU] HAS UND]/OOD ?AT CAPITALI/ PRODUCTION CANNOT FLOAT >\ND 9 ?9 AIR 'UNDI/URB$'4 ,HE !RE=E LOOKS = SOME OBJECTIVE SOCIAL BASIS = CAPITAL ACCUMULATION1 :I* HE F9ALLY F9DS 9 ! GR[? ( ! POPULATION4 

,& H]E BEG9S ! MO/ ABSURD BIT4 ,! UNANIM\S JUDGM5T ( ! 'EXP]TS'1 ) ! CORPORATE BLESS+ ( ! $ITORIAL /AFF ( ,VORW>TS1 DECL>ES MY BOOK TO BE >RANT NONS5SE1 TOTAL MISUND]/&+1 ! PROBLEM ( ACCUMULATION SIMPLY DOES NOT EXI/1 ,M>X ALREADY SOLV$ IT1 ! MODELS GIVE A SUFFICI5T ANSW]4 ,BAU] IS N[ =C$ TO PLACE HIS MODELS ON A SLI<TLY MORE MAT]IAL BASIS ?AN ! SIMPLE RULES ( ADDITION & SUBTRACTION3 HE TAKES ACC\NT ( A C]TA9 SOCIAL PH5OM5ON - POPULATION GR[?2 IT IS ON ! BASIS ( ?IS ?AT HE CON/RUCTS HIS TABLES4 ,! EXPANSION ( CAPITALI/ PRODUCTION1 AS HIS MODELS >E SUPPOS$ TO DEMON/RATE1 IS NOT AN AUTONOM\S MOVEM5T ( CAPITAL >\ND ITS [N AXIS1 BUT FOLL[S ! CORRESPOND+ GR[? ( ! POPULATION3 

,ACCUMULATION PRESUPPOSES EXPANSION ( ! RANGE ( PRODUCTION1 & ?IS EXP&S ?R\< POPULATION GR[? 444 ,9 CAPITALI/ PRODUCTION !RE IS A T5D5CY = CAPITAL ACCUMULATION TO ADJU/ TO ! GR[? ( POPULATION 444 ,! T5D5CY = ACCUMULATION TO ADJU/ TO ! POPULATION GR[? DET]M9ES ! 9T]NATIONAL RELATIONS .<( CAPITAL - ,TRANS4.> 444 ,:5 ! CAPITALI/ WORLD ECONOMY IS SE5 AS A :OLE1 ! T5D5CY 9 ! 9DU/RIAL CYCLE TO ADJU/ ACCUMULATION TO ! POPULATION GR[? BECOMES VISIBLE 444 ,! P]IODIC RETURN ( PROSP]ITY & ( ! CRISIS ( DEPRESSION IS ! EMPIRICAL EXPRESSION ( ! FACT ?AT ! ME*ANISM ( CAPITALISM ACTS TO CANCEL OV]ACCUMULATION & UND]ACCUMULATION & CONT9UALLY READJU/S ACCUMULATION TO ! POPULATION GR[?4.<#a#i.> 

,LAT] WE WILL TAKE A CLOS] LOOK AT ,BAU]'S POPULATION !ORY4 ,BUT ONE ?+ IS C]TA93 ! !ORY ACTUALLY REPRES5TS SOME?+ QUITE NEW4 ,= ! O!R 'EXP]TS'1 ALL QUE/IONS AB\T ! SOCIAL & ECONOMIC F\NDATION ( ACCUMULATION SEEM$ PURE NONS5SE1 '9DE$ DIFFICULT TO DISCOV]'4 ,BAU]1 ON ! O!R H&1 CON/RUCTS A :OLE !ORY TO ANSW] ?IS QUE/ION4 

,YET ,BAU]'S !ORY IS NOT ONLY A NOVELTY TO ! O!R CRITICS ( MY BOOK2 IT MAKES ITS V]Y FIR/ APPE>ANCE 9 ! :OLE ( ,M>XI/ LIT]ATURE4 ,NEI!R 9 ! ?REE VOLUMES ( ,M>X'S ,CAPITAL NOR 9 ,!ORIES ( ,SURPLUS ,VALUE OR 9 ,M>X'S O!R WRIT+S DO WE F9D A TRACE ( ,BAU]'S POPULATION !ORY AS ! BASIC PR9CIPLE ( ACCUMULATION4 

,LET US TAKE ANO!R LOOK AT ! WAY 9 :I* ,K>L ,KAUTSKY ANN\NCES & REVIEWS ! SECOND VOLUME ( ,CAPITAL 9 ,NEUE ,ZEIT4 ,9 ! DETAIL$ CONT5TS ( ACCUMULATION 9 ! SECOND VOLUME ,KAUTSKY DEALS V]Y ?OR\<LY ) ! FIR/ P>AGRAPHS ON CIRCULATION1 %[+ ALL ! =MULAS & CYPH]S AS ,M>X USES !M4 ,HE !N D$ICATES ?REE :OLE PAGES \T ( A TOTAL ( TW5TY TO ! MO/ IMPORTANT & ORIG9AL P>T ( ! VOLUME1 ! ,REPRODUCTION & ,CIRCULATION ( ,AGGREGATE ,SOCIAL ,CAPITAL4 ,9 !SE ?REE PAGES HE DEALS EXCLUSIVELY - )1 ( C\RSE1 COMPLETE REPRODUCTION ( ! UNAVOIDABLE =MULAS - ) ! 9TRODUCTORY FICTION ( SIMPLE REPRODUCTION'1 I4E4 CAPITALI/ PRODUCTION )\T PR(IT1 :I* ,M>X HIMSELF ONLY TAKES AS A !ORETICAL />T+ PO9T FROM :I* TO APPROA* ! ACTUAL PROBLEM1 ! ACCUMULATION ( ! AGGREGATE CAPITAL4 ,KAUTSKY SETTLES ?IS LATT] PROBLEM 9 LIT]ALLY TWO L9ES3 ',ACCUMULATION ( SURPLUS VALUE1 ! EXPANSION ( ! PRODUCTIVE PROCESS1 BR+S FUR!R COMPLICATIONS4' ,FULL /OP4 ,NOT ANO!R WORD AT ! TIME1 JU/ AFT] ! PUBLICATION ( ! SECOND VOLUME1 & NOT ANO!R WORD 9 ! ?IRTY YE>S S9CE !N4 ,?US NOT ONLY DO WE F9D NO TRACE ( ,BAU]'S POPULATION !ORY1 ,KAUTSKY ALSO COMPLETELY FAIL$ TO NOTICE ! :OLE SECTION ON ACCUMULATION4 

,HE DOES NOT NOTICE ANY SPECIAL PROBLEM 7LIKE ,BAU] CREAT+ AN 'UNOBJECTIONABLE PR9CIPLE' = ITS SOLUTION71 NOR ! FACT ?AT ,M>X /OPS 9 ! MID/ ( HIS [N 9VE/IGATION )\T AN ANSW] TO ! QUE/ION HE POS$ HIMSELF SEV]AL TIMES4 

,ONCE AGA9 79 ! PREVI\SLY M5TION$ S]IES AGA9/ ,TUGAN-,B>ANOVSKY7 ,KAUTSKY TALKS AB\T ! SECOND VOLUME ( ,CAPITAL4 ,H]E HE =MULATES ! CRISIS !ORY1 'COMMONLY ACCEPT$ BY OR?ODOX ,M>XI/S'1 ( :I* ! C5TRAL PO9T IS ?AT CONSUMPTION BY CAPITALI/S & WORK]S IS 9SUFFICI5T AS A BASIS = ACCUMULATION1 & ?AT AN ADDITIONAL M>KET IS NECESS>Y 9 ! 'PRE-CAPITALI/ PRODUC+ /RATA & NATIONS'4 ,KAUTSKY DOES NOT SEEM TO BE AW>E ?AT ?IS 'COMMONLY ACCEPT$' !ORY ( CRISES NEI!R FITS ,TUGAN-,B>ANOVSKY'S P>ADOXES NOR HIS [N MODEL ( ,M>XI/ ACCUMULATION ) ITS G5]AL PRECONDITIONS4 ,?IS IS BECAUSE ! PREMISE 9 ,M>X'S ANALYSIS 9 ! SECOND VOLUME IS A SOCIETY ( CAPITALI/S & WORK]S ONLY4 ,! MODELS >E TO %[ 9 DETAIL AS ECONOMIC LAW1 H[ ?OSE TWO 9SUFFICI5T CONSUM] CLASSES MAKE ACCUMULATION POSSIBLE YE> AFT] YE> M]ELY BY CONSUM+4 ,KAUTSKY DOES NOT EV5 GIVE US ! SLI<TE/ H9T ( A POPULATION !ORY SU* AS ?AT US$ BY ,BAU] AS ! TRUE PR9CIPLE ( ,M>X'S MODEL ( ACCUMULATION4 

,LET US LOOK AT ,HILF]D+'S ,F9ANCE ,CAPITAL4.<#b.> ,9 ,*APT] ,X,V,I1 AFT] AN 9TRODUCTION 9 :I* HE PRAISES ,M>X'S ILLU/RATION ( ! CONDITIONS ( REPRODUCTION ( GROSS CAPITAL AS ! MO/ BRILLIANT EF=T 9 ?IS 'A/ONI%+ WORK' - & 9DE$ HE IS CORRECT - HE COPIES WORD = WORD ON F\RTE5 PAGES ! RELEVANT PAGES 9 ,M>X1 9CLUD+ ( C\RSE ! MA!MATICAL MODELS4 ,H]E HE MOANS ?AT !SE MODELS HAVE BE5 NEGLECT$ & ONLY ATTRACT$ SOME ATT5TION ?ANKS TO ,TUGAN-,B>ANOVSKY4 ,& :AT DOES ,HILF]D+ HIMSELF NOTICE 9 ! :OLE BRILLIANT EF=T8 ,H]E >E HIS CONCLUSIONS3 

,M>X'S MODELS %[ 

?AT 9 CAPITALI/ PRODUCTION REPRODUCTION CAN TAKE PLACE ON A SIMPLE AS WELL AS AN EXT5D$ SCALE1 IF ONLY !SE RELATIONS CAN BE KEPT /ABLE4 ,ON ! O!R H& EV5 SIMPLE REPRODUCTION CAN PRODUCE CRISES IF ! PROPORTIONS >E UPSET2 = 9/ANCE ?AT BETWE5 US$-UP CAPITAL & CAPITAL ?AT MU/ BE 9VE/$4 ,IT DOES NOT NECESS>ILY FOLL[ ?AT ! CAUSE ( ! CRISIS LIES 9 ! UND]-CONSUMPTION ( ! MASSES1 :I* IS 9H]5T 9 CAPITALI/ PRODUCTION4 

,NEI!R DOES ! POSSIBILITY ( G5]AL OV]-PRODUCTION FOLL[ FROM ! MODELS3 RA!R ONE CAN %[ ?AT ANY EXPANSION ( PRODUCTION IS POSSIBLE :I* TAKES PLACE )9 ! LIMITS ( ! EXI/+ PRODUCTIVE =CES4.<#b#a.> 

,?AT IS ALL4 ,HILF]D+1 TOO1 SEES ,M>X'S ANALYSIS ( ACCUMULATION AS ONLY A GUIDE = ! SOLUTION ( ! CRISIS PROBLEM4 ,! MA!MATICAL MODELS %[ ! PROPORTION :I*1 IF IT IS FOLL[$1 ALL[S UNDI/URB$ ACCUMULATION4 ,FROM ?IS ,HILF]D+ DRAWS !SE CONCLUSIONS3 

,CRISES ONLY DEVELOP FROM DISPROPORTIONALITY4 ,9 ?IS HE S9KS ! 'COMMONLY ACCEPT$ !ORY ( CRISIS' 9TO ! DEEP SEA & HE TAKES OV] ,TUGAN-,B>ANOVSKY'S !ORY1 CONDEMN$ BY ,KAUTSKY AS REVISIONI/ H]ESY4 ,FOLL[+ ?IS1 HE CONCLUDES ) ! !ORY ( ?IS 'WRET*$ MAN'1 ,SAY3 G5]AL OV]-PRODUCTION IS IMPOSSIBLE4 

,AP>T FROM CRISES AS P]IODIC 9T]F]5CES DUE TO ! LACK ( PROPORTIONALITY CAPITAL ACCUMULATION 79 A SOCIETY ( ONLY CAPITALI/S & WORK]S7 CAN EXP& AS F> AS ! ACTUAL PRODUCTIVE =CES ALL[1 9 :I* HE AGA9 COPIES ,TUGAN WORD = WORD4 

,AP>T FROM CRISES1 A PROBLEM ( ACCUMULATION DOES NOT EXI/ = ,HILF]D+ S9CE ! MODELS %[ ?AT 'ANY EXPANSION' IS LIMITLESSLY POSSIBLE1 I4E4 ?AT PRODUCTION & SALES GR[ SIMULTANE\SLY4 ,AGA91 NO TRACE ( ,BAU]'S 'GR[? ( POPULATION' !ORY & NO IDEA ?AT SU* A !ORY WAS NECESS>Y4 

,F9ALLY1 EV5 = ,BAU] HIMSELF HIS PRES5T !ORY WAS A NEW DISCOV]Y4 ,ONLY 9 #a#i#d1 AFT] ! >GUM5TS BETWE5 ,KAUTSKY & ,TUGAN-,B>ANOVSKY1 DOES HE ESPECIALLY DEAL ) ! !ORY ( CRISES 9 ! LI<T ( ,M>X'S !ORY4 ,9 TWO >TICLES 9 ,NEUE ,ZEIT HE HIMSELF EXPLA9S ?AT = ! FIR/ TIME HE WANTS TO GIVE A COH]5T ELABORATION ( ?IS !ORY4 ,BUT HE ATTRIBUTES ! CRISES MA9LY TO ! SPECIAL =M ( CIRCULATION1 ! 'FIX$ CAPITAL'1 MAK+ USE ( A PHRASE 9 ! SECOND VOLUME ( ,CAPITAL1 :I* TRIES TO EXPLA9 ! T5-YE> CYCLE ( MOD]N 9DU/RY4 ,NOT ONCE DOES ,BAU] M5TION ! BASIC IMPORTANCE ( ! RELATION BETWE5 ! EXPANSION ( PRODUCTION & ! GR[? ( POPULATION4 ,BAU]'S :OLE !ORY1 ! 'T5D5CY TO ADJU/ TO ! GR[? ( POPULATION' :I* N[ EXPLA9S ! CRISES & ! BOOMS1 ! ACCUMULATION & ! 9T]NATIONAL MOVEM5T ( CAPITAL FROM C\NTRY TO C\NTRY1 & F9ALLY EV5 IMP]IALISM3 ?IS SUP]NATURAL LAW1 :I* MOVES ! :OLE ME*ANISM ( CAPITALISM & 'RULES IT AUTOMATICALLY' EXI/$ = NEI!R ,BAU] NOR ! RE/ ( ! WORLD4 ,N[1 9 ANSW] TO MY BOOK1 IT HAS BECOME ! BASIC !ORY1 ! ONLY !ORY1 TO PUT ,M>X'S MODELS ON AN '9CONTE/ABLE F\NDATION'4 ,SUDD5LY & CASUALLY ?IS BASIS APPE>S1 9 ORD] TO SOLVE ! PROBLEM :I* ALLEG$LY DID NOT EXI/ AT ALL4 

,:AT %ALL WE ?9K AB\T ALL ! O!R 'EXP]TS'8 ,LET US SUMM>IZE :AT HAS BE5 SAID3 

,ACCORD+ TO ,ECK/E9 & ,HILF]D+ 7& ,PANNEKOEK AS WELL7 A PROBLEM ( CAPITAL ACCUMULATION DOES NOT EXI/4 ,EV]Y?+1 NE$LESS TO SAY1 IS AS CLE> AS ,M>X'S =MULAS DEMON/RATE4 ,IT IS ONLY BECAUSE ,I AM TOTALLY 9CAPABLE ( UND]/&+ ! =MULAS ?AT ,I AM CRITICAL ( !M4 ,ACCORD+ TO ,BAU]1 ! FIGURES US$ BY ,M>X >E '>BITR>ILY *OS5 & NOT FREE ( CONTRADICTIONS'4 ,ONLY HE1 ,BAU]1 HAS F\ND AN 'ADEQUATE ILLU/RATION = ,M>X'S ?\<TS' & PUT UP A 'MODEL FREE FROM >BITR>9ESS'4 

,ACCORD+ TO ,ECK/E9 & ! $ITORIAL /AFF ( ,VORW>TS1 MY BOOK HAS TO BE 'REJECT$' AS TOTALLY WOR?LESS4 ,ACCORD+ TO ! LITTLE 'EXP]T' ( ! ,FRANKFURT] ,VOLKS/IMME 7#a ,FEBRU>Y #a#i#a#c7 IT IS EV5 HI<LY DAMAG+4 ,ACCORD+ TO ,BAU] !RE 'IS /ILL A VALID K]NEL HIDD5 9 ! WRONG EXPLANATION'3 IT PO9TS \T ! LIMIT ( ACCUMULATION ( CAPITAL 7,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#d1 P4#h#g#c _<P4#a#h_>74 

,ACCORD+ TO ,ECK/E9 & ,VORW>TS1 MY BOOK HAS NOT ! SLI<TE/ ?+ TO DO ) IMP]IALISM2 'AS ?+S /& ! BOOK HAS SO LITTLE TO DO ) ! NEW PH5OM5A ( TODAY'S PULSAT+ ECONOMIC LIFE1 ?AT IT C\LD HAVE BE5 WRITT5 JU/ AS WELL TW5TY OR MORE YE>S AGO'4 ,ACCORD+ TO ,BAU]1 MY RESE>* DISCOV]S 9 FACT 'NOT ! SOLE 444 BUT ONLY ONE ROOT ( IMP]IALISM' 7IBID41 P4#h#g#d _<P4#a#i_>7 :I* = A LITTLE P]SON LIKE ME IS QUITE A NICE A*IEVEM5T4 

,ACCORD+ TO ,ECK/E91 ,M>X'S MODELS %[ '! ACTUAL EXT5T ( SOCIAL NE$S'2 !Y %[ '! POSSIBILITY ( EQUILIBRIUM' FROM :I* CAPITALI/ REALITY IS DI/ANT S9CE IT IS GOV]N$ BY /RIV+ = PR(IT1 RESULT+ 9 CRISES4 ,E>LY 9 ! NEXT P>AGRAPH '! ILLU/RATION CORRESPONDS TO ,M>X'S MODEL1 BUT ALSO TO REALITY'1 BECAUSE ! MODEL DEMON/RATES PRECISELY 'H[ ?IS PR(IT IS REALIZ$ = ! CAPITALI/'4.<#b#b.> 

 ,ACCORD+ TO ,PANNEKOEK1 !RE IS NO /ATE ( EQUILIBRIUM1 BUT ONLY 'EMPTY BLUE SKY'2 '! EXT5T ( PRODUCTION CAN BE COMP>$ TO A WEI<TLESS ?+ FLOAT+ AT ANY LEVEL'4 ',= ! EXT5T ( PRODUCTION IS 9 NO /ATE ( EQUILIBRIUM TO BE DRAWN BACK :5 IT DEVIATES4' ,! 9DU/RIAL CYCLE IS NOT A FLUCTUATION >\ND AN AV]AGE1 :I* IS DEF9$ BY SOME DEM&4'.<#b#c.> 

,ACCORD+ TO ,BAU]1 ,M>X'S MODELS - HE HAV+ F9ALLY F\ND !IR TRUE MEAN+ - MEAN NO?+ BUT ! MOVEM5T ( CAPITALI/ PRODUCTION 9 ADJU/M5T TO POPULATION GR[?4 

,ECK/E9 & ,HILF]D+ BELIEVE 9 ! OBJECTIVE ECONOMIC POSSIBILITY ( LIMITLESS ACCUMULATION2 '! MODELS %[ :O BUYS ! PRODUCTS' 7,ECK/E974 ,PANNEKOEK'S 'WEI<TLESS ?+' CAN ALL ! MORE 'FLOAT AT ANY LEVEL'1 AS HE SAYS HIMSELF4 ,ACCORD+ TO ,HILF]D+1 'ANY EXPANSION ( PRODUCTION IS POSSIBLE ?AT TAKES PLACE )9 ! LIMIT ( ! EXI/+ PRODUCTIVE =CES' BECAUSE1 AS ! MODELS %[1 '! \TLET GR[S AUTOMATICALLY ) PRODUCTION'4 ,ACCORD+ TO ,BAU]1 'ONLY ! APOLOGI/S = CAPITALISM CAN TALK ( ! 5DLESSNESS ( ACCUMULATION' & ASS]T ?AT ') ! PRODUCTION ! CONSUMPTION P[] GR[S AUTOMATICALLY'4.<#b#d.> 

,H[ DOES IT /& N[8 ,:AT DO ! G5TLEM5 ( ! JURY MEAN8 ,WAS !RE A PROBLEM ( ACCUMULATION ) ,M>X :I* NONE ( US HAD NOTIC$ UNTIL N[1 OR IS ! PROBLEM /ILL 7EV5 AFT] ITS LATE/ SOLUTION BY ,BAU]7 ! PRODUCT ( MY 'TOTAL 9ABILITY TO WORK ) ,M>X'S MODELS'1 AS ! ,VORW>TS REVIEW] SAID8 ,>E ,M>X'S MODELS ! ULTIMATE TRU?1 9FALLIBLE DOGMA OR >E !Y '>BITR>Y & NOT FREE FROM CONTRADICTIONS'8 ,DOES ! PROBLEM ,I DEALT ) DELVE TO ! ROOTS ( IMP]IALISM1 OR HAS IT NOT ! 'SLI<TE/ ?+ TO DO ) ! PH5OM5A ( TODAY'S PULSAT+ ECONOMIC LIFE'8 ,& :AT DO ?OSE 7AS ,ECK/E9 CALLS !M7 'N[ FAM\S' MODELS ( ,M>X F9ALLY ILLU/RATE - ONLY A !ORETICAL /ATE ( EQUILIBRIUM ( PRODUCTION1 OR A PICTURE ( REALITY1 A PRO( ( ! POSSIBILITY ( 'EXPANSION'1 OR A PRO( ( ITS IMPOSSIBILITY 9 ! FACE ( UND]-CONSUMPTION1 OR AN ADJU/M5T ( PRODUCTION TO POPULATION GR[?1 OR ,PANNEKOEK'S 'WEI<TLESS' *ILDR5'S BALLOON1 OR SOME?+ ELSE ALTOGE!R1 P]HAPS A CAMEL OR A WEASEL8 ,IT IS AB\T TIME ! 'EXP]TS' />T$ MAK+ UP !IR M9DS4 

,MEAN:ILE LET US LOOK AT A BEAUTIFUL PICTURE ( CL>ITY1 H>MONY & P]FECTION ( (FICIAL ,M>XISM 9 RELATION TO ! FUNDAM5TAL SECTION ( ! SECOND VOLUME ( ,CAPITAL4 ,A FITT+ REPLY TO ! >ROGANCE ( !SE G5TLEM5 :O ATTACK$ MY BOOK SO VICI\SLY4.<#b#e.> 

,S9CE ,OTTO ,BAU] HAS RELIEV$ ME ( ! BO!R ( >GU+ ) ! O!R 'EXP]TS'1 ,I CAN N[ TURN TO ,BAU] HIMSELF4 

,FOOTNOTES 

.<#a.>4 .<,SISMONDI1 ,SAY1 ,RIC>DO & ,MAC,CULLO*1 ECONOMI/S ( ! E>LY N9ETE5? C5TURY4 ,= EXPOSITION & CRITICISMS ( !IR RESPECTIVE IDEAS SEE ,M>X1 ,CAPITAL1 ,VOLS4 ,I1 ,I,I1 & ,I,I,I1 ALSO ,!ORIES ( ,SURPLUS ,VALUE4 ,= A CONCISE ACC\NT SEE ,]IC ,ROLL1 ,A ,HI/ORY ( ,ECONOMIC ,?\<T 7,FAB] @& ,FAB]1 ,LONDON #a#i#f#b74 ,SEE ALSO ,ROSA ,LUXEMBURG1 ,! ,ACCUMULATION ( ,CAPITAL4.> 

.<#b.> .<,POPULI/S OR ,N>ODNIKS4 ,A GR\P FROM ! ,RUSSIAN 9TELLIG5TSIA :O1 9 ! #a#h#gS1 W]E ACTIVE 9 ATTEMPT+ TO >\SE ! PEASANTS AGA9/ ! ,CZ>4 ,?IS REVOLUTION>Y ACTIVITY WAS KN[N AS 'GO+ TO ! PEOPLE'4 ,IT WAS L>GELY A FAILURE1 & ! MO/ DET]M9$ ELEM5TS ( ! MOVEM5T !N RESORT$ TO ACTS ( T]RORISM4 ,!Y ASSASS9AT$ ,CZ> ,ALEX&] ,I,I ON #a ,M>* #a#h#h#a4 ,!REAFT] ! MOVEM5T DECL9$4.> 

.<#c.> .<,HANS ,VAIH+] 7#a#h#e#d-#a#i#c#c74 ,G]MAN PHILOSOPH] ( ! 'AS IF'4 ,F\ND$ ! J\RNAL ,KANT-,/UDI54 ,MA9 WORK3 ,! ,PHILOSOPHY ( ',AS ,IF'1 ,5GLI% TRANSLATION ,C4,K4 ,OGD5 7,NEW ,YORK #a#i#b#d74 ,SEE ALSO ,W4 ,DEL ,NEGRO1 ,HANS ,VAIH+]'S ,PHILOSOPHIS*ES ,W]K MIT BESOND]] ,B]UCKSI*TIGUNG SE9] ,KANT=S*UNG1 9 ,KANT-,/UDI5 7#a#i#c#d71 PP4#c#a#f-#b#g4.> 

.<#d.> .<,OTTO ,BAU] 7#a#h#h#a-#a#i#c#h74 ,BORN 9 ,VI5NA4 ,9 #aig BECAME ,SECRET>Y TO ! ,P>LIAM5T>Y ,GR\P ( ! ,AU/RO-,HUNG>IAN ,SOCIAL ,DEMOCRATIC ,P>TY4 ,BECAME ONE ( ! P>TY'S LEAD+ !ORI/S AFT] ! PUBLICATION ( ,! ,QUE/ION ( ,NATIONALITIES & ,AU/RIAN ,SOCIAL ,DEMOCRACY1 & WAS A FREQU5T CONTRIBUTOR TO ,D] ,KAMPF1 ! !ORETICAL J\RNAL ( ! ,AU/RIAN ,S,D,P4 ,S]V$ AS A CONSCRIPT 9 ! ,AU/RO-,HUNG>IAN >MY AFT] ,AUGU/ #a#i#a#d4 ,WAS CAPTUR$ 9 ! AUTUMN ( #aiad BY ! ,RUSSIANS & SP5T ! RE/ ( ! W> AS A PRISON] UNTIL HE WAS REPATRIAT$ 9 ,AUGU/ #a#i#a#g4 ,:IL/ 9 ,RUSSIA HE LE>N$ TO SPEAK ,RUSSIAN4 ,HE WAS SYMPA!TIC TO ! ,M>TOV-,9T]NATIONALI/ W+ ( ! ,M5%EVIKS BUT WAS A CRITICAL SUPPORT] ( ! ,BOL%EVIK REVOLUTION 9 #a#i#a#g4 ,AFT] ! FALL ( ! ,HAPSBURG MON>*Y ,BAU] S]V$ AS A ,=EIGN ,SECRET>Y 9 ! ,SOCIAL ,DEMOCRATIC GOV]NM5T4 ,9 ! #a#i#bS HE ATTEMPT$ TO BRIDGE ! GULF BETWE5 ,SOCIAL ,DEMOCRACY & ! NEW ,COMMUNI/ ,P>TIES1 SEEK+ TO RE-UNITE ! WORK]S' P>TIES NATIONALLY & 9T]NATIONALLY4 ,BE=E #aiad ,BAU] WAS ALSO A FREQU5T CONTRIBUTOR TO ,NEUE ,ZEIT 7SEE NEXT NOTE7 & 9FLU5C$ ! ,G]MAN P>TY1 P>TICUL>LY ON ! NATIONAL QUE/ION4.> 

.<#e.>,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#d1 P4#h#f#c4 .<,NEUE ,ZEIT WAS ! C5TRAL !ORETICAL J\RNAL ( ! ,G]MAN ,SOCIAL ,DEMOCRATIC ,P>TY 7,S,P,D74 ,$IT$ BY ,K>L ,KAUTSKY4.> _<,5GLI% TRANSLATION3 ,OTTO ,BAU]'S ,ACCUMULATION ( ,CAPITAL1 ,HI/ORY ( ,POLITICAL ,ECONOMY1 #a#i#h#f1 #a#h3#a1 PP4#h#g-#a#a - P4#i#g4_> 

.<#f.>IBID41 P4 #h#h#f4 _<,TABLE #g 9 ! ,5GLI% TRANSLATION1 P4#a4_> 

.<#g.>,VORW>TS1 #af ,FEBRU>Y #a#i#a#c4 ,LIKEWISE ,A4 ,PANNEKOEK .<SEE BEL[.> 9 ! ,BREM] ,BURG]ZEITUNG ( #ai ,JANU>Y #a#i#a#c3 ',! MODEL ITSELF GIVES ! ANSW] V]Y SIMPLY1 = ALL PRODUCTS F9D !IR M>KET !RE 7I4E4 ON ! PAP] ( ! ,BREM] ,BURG]ZEITUNG74 ,! CAPITALI/S & ! WORK]S !MSELVES >E ! CONSUM]S 444 ,!RE IS1 !RE=E1 ABSOLUTELY NO PROBLEM TO BE SOLV$4' 

.<,GU/AV ,ECK/E94 ,AU/RIAN4 ,CONTRIBUT$ TO ,D] ,KAMPF & ,NEUE ,ZEIT4 ,AU?OR ( A BOOK ON ! FAMILY1 BE+ A SOCIOLOGICAL /UDY MA9LY BAS$ ON ,JAPANESE FAMILY1 TRADITIONS & LAW4 ,?IS WAS PUBLI%$ 9 ,M>X-,/UDI5 & ,ECK/E9 WAS CONSID]$ TO BE ONE ( ! F\ND]S ( ! ,AU/RO-,M>XI/ S*OOL 7SEE NOTE #b#f4.> 

.<,DR ,ANTON ,PANNEKOEK4 ,DUT* A/RONOM]4 ,LECTUR$ AT ! ,C5TRAL ,P>TY ,S*OOL ( ! ,S,P,D BE=E #aiad UNTIL ! ,PRUSSIAN POLICE ?REAT5$ TO DEPORT HIM4 ,AFT] ?IS1 HE BECAME ACTIVE 9 ,BREM5 AS A P>T ( ! ,BREM5 ,S,P,D LEFT4 ,WAS ACTIVE 9 ,DUT* ,COMMUNI/ AFFAIRS AFT] #a#i#a#h1 AGA9 SUPPORT+ ! ,DUT* ,COMMUNI/ LEFT4 ,WAS AN 5?USIA/IC SUPPORT] ( WORK]S' CONTROL ( PRODUCTION & ( WORK]S' C\NCILS AS A =M ( GOV]NM5T4.> 

.<#h.> .<,TABLEAU ECONOMIQUE1 US$ BY ,QUESNAY TO ILLU/RATE HIS VIEWS ON ! DIVISION ( SOCIETY 9TO ECONOMIC CLASSES4 ,!SE W]E ! PRODUCTIVE CLASS :I* CONSI/$ ( ALL ?OSE 5GAG$ 9 AGRICULTURE1 ! CLASS :I* LIV$ FROM ! SURPLUS1 L&LORDS1 ! ,*UR*1 ETC4 & ! /]ILE CLASS :I* CONSI/$ ( ALL ?OSE 5GAG$ 9 MANUFACTUR+ 9DU/RY4 ,= A FULL EXPOSITION ) DIAGRAMS SEE ,PAUL ,M4 ,SWEEZY1 ,! ,!ORY ( ,CAPITALI/ ,DEVELOPM5T4.> 

.<#i.> ',& ! MODELS %[ :O BUYS ! PRODUCTS'3 ',COMRADE ,LUXEMBURG HAS SIMPLY BASICALLY MISUND]/OOD ! NATURE1 AIM & SIGNIFICANCE ( ,M>X'S MODELS4' ,ECK/E91 ,VORW>TS1 #af ,FEBRU>Y #a#i#a#c1 SUPPLEM5T4 

.<#a.> .<,PR\DHON 7#a#h#i-#f#d74 ,FR5* SOCIALI/1 MA9LY REMEMB]$ TODAY BECAUSE ( ,M>X'S POLEMIC AGA9/ HIM1 ,! ,POV]TY ( ,PHILOSOPHY4 ,AL?\< HE DI$ RELATIVELY Y\NG ,PR\DHON WAS A PROLIFIC WRIT]4 ,= BIBLIOGRAPHY SEE ,H5RI DE ,LUBAC1 ,S4,J41 ,! ,UN-,M>XIAN ,SOCIALI/1 ,%E$ @& ,W>D1 ,LONDON #a#i#d#h4.> 

.<#a#a.>,CAPITAL1 ,VOL4,I,I1 P4#d#c#c4 

.<#a#b.>,IBID1 P4#e#g4 

.<#a#c.> ,ECK/E91 ,VORW>TS1 #af ,FEBRU>Y #a#i#a#c1 SUPPLEM5T4 

.<#a#d.> ,OR ELSE WE >E LEFT ) ! SOME:AT OBLIQUE COM=T PROVID$ BY A LITTLE 'EXP]T' FROM ! ,DRESD5] ,VOLKSZEITUNG :O1 AFT] ?OR\<LY DE/ROY+ MY BOOK1 EXPLA9S ?AT CAPITALISM WILL EV5TUALLY COLLAPSE 'BECAUSE ( ! FALL+ RATE ( PR(IT'4 ,ONE IS NOT TOO SURE EXACTLY H[ ! DE> MAN 5VISAGES ?IS - :E!R ! CAPITALI/ CLASS WILL AT A C]TA9 PO9T COMMIT SUICIDE 9 DESPAIR AT ! L[ RATE ( PR(IT1 OR :E!R IT WILL SOMEH[ DECL>E ?AT BUS9ESS IS SO BAD ?AT IT IS SIMPLY NOT WOR? ! TR\BLE1 :]EUPON IT WILL H& ! KEY OV] TO ! PROLET>IAT8 ,H[EV] ?AT MAY BE ?IS COM=T IS UN=TUNATELY DISPELL$ BY A S+LE S5T5CE BY ,M>X1 NAMELY ! /ATEM5T ?AT 'L>GE CAPITALS WILL COMP5SATE = ! FALL 9 ! RATE ( PR(IT BY MASS PRODUCTION'4 ,?US !RE IS /ILL SOME TIME TO PASS BE=E CAPITALISM COLLAPSES BECAUSE ( ! FALL+ RATE ( PR(IT1 R\<LY UNTIL ! SUN BURNS \T4 

.<#a#dA.> _<,MI*AEL VON ,TUGAN-,B>AN[SKY1 ,*APT] #a4 ,! ,FUNDAM5TAL ,CAUSES ( ,CRISES 9 ! ,CAPITALI/ ,ECONOMY1 ,TR4 ,ALEJ&RO ,RAMOS-,M>T9EZ1 ,VALUE1 ,CAPITALI/ ,DYNAMICS & ,MONEY1 #a#h1 P4#g#a4_>4 

.<#a#e.>,NEUE ,ZEIT1 #a#i#b1 ,NO4#e 7#c#a71 P4#a#d4 

.<#a#f.>,NEUE ,ZEIT1 ,NO4#c 7#b#i71 P4#h4 7,MY EMPHASIS1 - ,R4,L47 

.<#a#g.>,NEUE ,ZEIT1 ,NO4#e 7#c#a71 P4#a#d#a4 

.<#a#h.>,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#c1 P4#h#c#h4 _<PP4#i#f-#i#g_> 

.<#a#i.>,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#d1 PP4#h#g#a-#c4 7,ALL EMPHASIS BY ,BAU]47 _<PP4#a#d-#a#g_> 

.<#b.> .<,RUDOLF ,HILF]D+ 7#a#h#g#g-#a#i#d#d74 ,AU/RIAN4 ,ONE ( ! $ITORS ( ,M>X-,/UDI54 ,LEFT ,VI5NA 9 #aig TO GO TO ,B]L9 :]E HE WAS GIV5 ! PO/ ( LEAD]-WRIT] ON ,VORW>TS4 ,HIS MA9 CONTRIBUTION TO ,M>XI/ !ORY WAS ,DAS ,F9ANZKAPITAL1 PUBLI%$ 9 #a#i#a4 ,?IS WAS ONE ( ! FIR/ ,M>XI/ 9T]PRETATIONS ( ! GR[? ( MONOPOLY & IMP]IALISM4 ,9 #aiad HE WAS P>T ( ! M9ORITY 9 ! ,S,P,D :I* WAS AGA9/ ! VOT+ = W> CR$ITS 9 ! ,REI*/AG BY ! ,S,P,D P>LIAM5T>Y GR\P4 ,HE LAT] BECAME A LEAD] ( ! ,U,S,P,D 7,9DEP5D5T ,SOCIAL ,DEMOCRATIC ,P>TY7 =M$ 9 #a#i#a#g4 ,?IS P>TY WAS OPPOS$ TO ! W> & ,LUXEMBURG1 ,LIEBKNE*T & ,MEHR+ TOOK !IR FOLL[]S 9TO ?IS UNTIL ! CREATION ( ! ,SP>TAKUSBUND4 ,9 #a#i#a#h1 ) ! CREATION ( ! ,REPUBLIC1 ,HILF]D+ BECAME A ,G]MAN CITIZ54 ,9 #aibb HE L$ ! REMNANTS ( ! ,U,S,P,D BACK 9TO ! ,S,P,D4 ,! MAJORITY ( ! ,9DEP5D5TS HAD VOT$ TO JO9 ! ,?IRD ,9T]NATIONAL 9 #aib & HAD FUZ$ ) ! ,K,P,D 7,SP>TAKUSBUND74 ,HILF]D+ BECAME ,F9ANCE ,M9I/] 9 ! ,SOCIAL ,DEMOCRATIC GOV]NM5TS ( #aibc & #a#i#b#h4.> 

.<#b#a.> ,HILF]D+1 ,F9ANCE ,CAPITAL1 P4#c#a#h4 _<,5GLI% TRANSLATION3 P4#b#e#f_> 

.<#b#b.>,VORW>TS1 #af ,FEBRU>Y #a#i#a#c1 SUPPLEM5T4 

.<#b#c.>,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#b1 ,!ORETIS*ES ZUR ,URSA*E D] ,KRIS51 PP4#g#h#c1 #g#i#b4 

.<#b#d.>,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#d1 P4#h#g#c4 _<P4#a#h4_> 

.<#b#e.> ,! REVIEW] ( ,VORW>TS1 ,ECK/E91 ( ALL MY CRITICS1 HAS UND]/OOD LEA/ :AT IT IS ALL AB\T4 ,HE BELONGS TO ! CATEGORY ( J\RNALI/S :O CAME UP ) ! GR[? ( ! WORK+-CLASS PRESS4 ,HE CAN WRITE ANY?+ AB\T ANY?+3 ,JAPANESE FAMILY LAWS1 MOD]N BIOLOGY1 ! HI/ORY ( SOCIALISM1 E?NOGRAPHY1 CULTURE1 ECONOMICS1 TACTICAL PROBLEMS - :ATEV] IS NE$$ AT ! TIME4 ,!SE UNIV]SAL WRIT]S MOVE AB\T 9 EV]Y SECTOR ( KN[L$GE ) SU* SCRUPUL\S SAFETY ?AT !Y >E ! 5VY ( ANY S]I\S SCI5TI/4 ,:]E !Y HAVE NO UND]/&+ ( ! MATT]1 !Y REPLACE IT BY BECOM+ IMPUD5T & T\<4 ,H]E >E TWO EXAMPLES3 

',LET US RECOGNIZE H]E & N['1 SAYS ,ECK/E9 AT ONE PO9T 9 HIS REVIEW1 '?AT ! AU?OR HAS MISUND]/OOD ! MEAN+ & PURPOSE ( ,M>X'S ANALYSIS1 & ?IS RECOGNITION IS CONFIRM$ BY ! REMA9D] ( H] BOOK4 ,ABOVE ALL1 %E IS COMPLETELY 9CAPABLE ( UND]/&+ ! TE*NIQUE ( !SE MODELS4 ,?IS IS ALREADY QUITE CLE> ON P4#a ( H] BOOK4' 

,!RE ,I AM DEAL+ ) ! FACT ?AT 9 HIS MODELS ,M>X 9CLUDES ! PRODUCTION ( MONEY 9 ! DEP>TM5T ( MEANS ( PRODUCTION4 ,I CRITICIZE ?IS 9 MY BOOK & ATTEMPT TO DEMON/RATE ?AT1 S9CE 9 ITSELF MONEY IS NOT A MEANS ( PRODUCTION1 ?IS CONFUSION MU/ 9EVITABLY RESULT 9 GREAT DIFFICULTIES = A PRECISE TREATM5T ( ! SUBJECT4 ,ECK/E9 C>RIES ON IMPUD5TLY3 

',COMRADE ,LUXEMBURG OBJECTS ?AT ,M>X 9CORPORATES ! PRODUCTION ( MONEY-MAT]IALS1 I4E4 GOLD & SILV]1 9 R[ ,I & CALCULATES IT ) ! PRODUCTION ( MEANS ( PRODUCTION4 ,?AT IS SUPPOS$ TO BE 9CORRECT4 ,= ?IS REASON %E ADDS A ?IRD R[ TO ?OSE CON/RUCT$ BY ,M>X1 :I* IS SUPPOS$ TO REPRES5T ! PRODUCTION ( MONEY-MAT]IALS4' 

,& N[ HE IS BITT]LY DISAPPO9T$6 

',9 ! MODEL CON/RUCT$ BY ,COMRADE ,LUXEMBURG ! DIFFICULTY IS 444 NOT ONLY V]Y GREAT1 IT IS 9SUP]ABLE 444 ,%E H]SELF DOES NOT MAKE ! SLI<TE/ EF=T TO PORTRAY !SE 0ORGANIC TANGLES04 ,! V]Y ATTEMPT W\LD HAVE %[N H] ?AT H] MODEL IS NOT FEASIBLE'1 & SO ON4 

,BUT ! 'MODEL CON/RUCT$ BY ,COMRADE ,LUXEMBURG' ON P4#a WAS NOT 'CON/RUCT$' BY ME AT ALL - BUT BY ,M>X6 ,I SIMPLY WROTE D[N ! FIGURES GIV5 9 ,CAPITAL1 ,VOL4,I,I1 P4#d#g1 9 ORD] TO %[ ?AT1 ACCORD+ TO ,M>X1 IT IS IMPOSSIBLE TO 9CORPORATE ! PRODUCTION ( MONEY1 AS ,I EXPLA9$ EXPLICITLY 9 ! FOLL[+3 

',BESIDES1 A M]E GLANCE AT ,M>X'S MODEL ( REPRODUCTION DEMON/RATES :AT 9CONSI/5CIES MU/ FOLL[ FROM CONFUS+ MEANS ( EX*ANGE ) MEANS ( PRODUCTION4' 

,& ALONG COMES ,ECK/E9 TO BLAME ME = ,M>X'S MODEL1 :I* ,I CRITICIZE1 & TO SCOLD ME BECAUSE ( ?IS MODEL1 LIKE A /UPID HUSSY1 = HAV+ COMPLETELY FAIL$ TO UND]/& '! TE*NIQUE ( !SE MODELS'4 

,ANO!R EXAMPLE3 ON P4#e#a ( ,CAPITAL1 ,VOL4 ,I,I1 ,M>X CON/RUCTS HIS FIR/ ACCUMULATION MODEL1 9 :I* HE ALL[S ! CAPITALI/S ( ! FIR/ DEP>TM5T ALWAYS TO CAPITALIZE #e P] C5T ( !IR SURPLUS VALUE1 BUT LETS IT HAPP5 ANY OLD WAY 9 ! O!R DEP>TM5T1 ) NO VISIBLE RULES1 PURELY ACCORD+ TO ! NE$ ( ! FIR/ DEP>TM5T4 ,I ATTEMPT TO CRITICIZE ?IS ASSUMPTION AS AN >BITR>Y ONE4 ,!N ALONG COMES ,ECK/E9 ) ! FOLL[+ EFFUSION3 

',! MI/AKE LIES 9 ! V]Y WAY %E HAS MADE H] CALCULATIONS1 & ?IS %[S ?AT %E HAS NOT GRASP$ ! ESS5CE ( ,M>X'S MODELS4 ,%E ?9KS ?AT !SE >E BAS$ ON ! REQUIREM5T ( AN EQUAL RATE ( ACCUMULATION1 I4E4 %E ASSUMES ?AT ACCUMULATION ALWAYS PROCE$S EQUALLY 9 BO? MA9 DEP>TM5TS ( SOCIAL PRODUCTION4 ,BUT ?IS ASSUMPTION IS QUITE >BITR>Y & CONTRADICTS ! FACTS 444 ,9 REALITY !RE IS NO SU* G5]AL RATE ( ACCUMULATION & IT W\LD BE A !ORETICAL NONS5SE4' 

,!RE9 RESIDES ! 'SC>CELY COMPREH5SIBLE ]ROR ( ! AU?OR1 :I* %[S ?AT %E IS COMPLETELY PUZZL$ BY ! ESS5CE ( ,M>X'S MODELS'4 ,! REAL LAW ( EQUAL RATE ( PR(IT /&S '9 COMPLETE CONTRADICTION TO ! FICTITI\S LAW ( EQUAL ACCUMULATION' & SO ON ) ?AT MEATY ?OR\<NESS1 SALT$ & PEPP]$1 ) :I* ,ECK/E9 5SURES MY DE/RUCTION4 ,IF 9DE$ 444 !N 9DE$4 ,BUT FIVE PAGES LAT] .<?REE PAGES 9 ! ,F,L,P,H $ITION.> ,M>X GIVES A SECOND EXAMPLE ( HIS ACCUMULATION MODEL1 ! REAL & FUNDAM5TAL MODEL1 :I* HE !N USES EXCLUSIVELY TILL ! 5D1 :IL/ ! FIR/ ONE WAS M]ELY AN ATTEMPT1 A PRELIM9>Y SKET*4 ,& ,M>X CONT9UALLY ASSUMES ! EQUAL RATE ( ACCUMULATION1 '! FICTITI\S LAW'1 9 BO? DEP>TM5TS 9 ?IS SECOND & DEF9ITIVE EXAMPLE6 ,! '!ORETICAL NONS5SE'1 9 'COMPLETE CONTRADICTION TO ! REAL LAW ( EQUAL RATE ( PR(IT' - !SE CAPITAL (F5SES & CAPITAL CRIMES CAN BE F\ND 9 !IR 5TIRETY ON P4#e#a#c ( ,CAPITAL1 ,VOL4,I,I1 & ,M>X IS UNREP5TANT RI<T UP TO ! LA/ L9E ( ! VOLUME4 ,?US ! EFFUSION GOES ALL OV] ! UN=TUNATE ,M>X1 :O WAS OBVI\SLY 'COMPLETELY PUZZL$' BY ! 'ESS5CE' ( HIS [N MODELS4 ,AT LEA/ HE DOES NOT HAVE TO %>E ?IS H>D LUCK ) ME ALONE2 ,BAU]1 TOO1 TAKES HIS FAIR %>E ( IT1 S9CE 9 HIS [N '9CONTE/ABLE' MODELS HE SIMIL>LY /AT$ HIS EXPLICIT ASSUMPTION '?AT ! RATE ( ACCUMULATION IS EQUAL 9 BO? SPH]ES ( PRODUCTION' 7,NEUE ,ZEIT1 OP4 CIT41 P4#h#c#h _<P4#i#f_>74 ,& TO ?9K ?AT ONE IS TREAT$ TO SU* 9SOL5CES BY A FELL[ :O HAS NOT EV5 READ ,M>X'S ,CAPITAL PROP]LY6 ,IT IS *>ACT]I/IC ( ! DOM9ATION ( ! TWO C5TRAL ORGANS ( ,SOCIAL ,DEMOCRACY BY ! ',AU/RO-,M>XI/'.<#b#f.> S*OOL ( EPIGONES ?AT SU* A 'REVIEW' C\LD EV5 APPE> 9 ,VORW>TS4 ,IF ,GOD GRANTS ?AT ,I AM ALIVE TO SEE ! SECOND $ITION ( MY BOOK ,I %ALL NOT BE ROBB$ ( ! OPPORTUNITY TO SAVE ?IS PE>L = PO/]ITY BY PR9T+ IT 9 FULL 9 AN APP5DIX6 

.<#b#f.> .<,AU/RO-,M>XI/ S*OOL4 ,?IS WAS A COLLECTIVE T]M US$ TO D5OTE ,FRI$RI* ,ADL]1 ,RUDOLF ,HILF]D+1 ,OTTO ,BAU]1 ,MAX ,ADL]1 ,GU/AV ,ECK/E91 ,K>L ,R5N] ET AL4 ,?IS WAS NOT AN HOMOG5E\S S*OOL ( ?\<T BUT RA!R A COLLECTION ( 9DIVIDUALS :O ATTEMPT$ TO APPLY ,M>XISM TO A NUMB] ( P>TICUL> PROBLEMS :I* !Y CONSID]$ TO HAVE DEVELOP$ S9CE ,M>X HAD DI$1 OR HAD NOT BE5 DEALT ) BY HIM4 ,!IR IDEAS W]E SET \T 9 A S]IES ( BOOKS UND] ! G5]AL TITLE ( ,M>X-,/UDI5 7,M>X ,/UDIES71 & 9 ! J\RNAL ,D] ,KAMPF1 F\ND$ 9 #aig BY ,OTTO ,BAU]1 ,K>L ,R5N] & ,ADOLF ,BRAUN4.> 

O ,*APT] #c 3 ,BAU]'S ,G5]AL ,CRITICISMS 

,NATURALLY ,I %ALL NOT LET MYSELF BE DRAWN 9TO A DISCUSSION ( ,BAU]'S TABULAT$ CALCULATIONS4 ,HIS POSITION & HIS CRITIQUE ( MY BOOK DEP5D MA9LY ON ! !ORY ( POPULATION :I* HE C\NT]POSES TO MY IDEAS AS ! BASIS ( ACCUMULATION1 & :I* 9 ITSELF REALLY HAS NO?+ TO DO ) ANY MA!MATICAL MODELS4 ,IT IS ?IS !ORY :I* WE MU/ 9VE/IGATE4 ,H[EV]1 WE MU/ FIR/ GET ACQUA9T$ ) ! WAYS & MEANS1 ) ! ME?OD1 9 :I* ,BAU] P]=MS HIS TABULAT$ MANIPULATIONS4 ,EV5 IF !Y >E ABSOLUTELY WOR?LESS :5 IT COMES TO SOLV+ ! PURELY SOCIAL & ECONOMIC PROBLEMS ( ACCUMULATION1 !Y >E /ILL V]Y *>ACT]I/IC ( ,BAU] HIMSELF1 & ( ! CONSCI\SNESS ) :I* HE APPROA*ES A SOLUTION TO ! PROBLEM4 ,?IS PROC$URE CAN BE ILLU/RAT$ ) A FEW V]Y SIMPLE EXAMPLES :I* MAY EV5 BE JUDG$ BY COMMON MORTALS :O >E USUALLY HORRIFI$ BY M9D BOGGL+ TABLES & CABALI/IC SIGNS4 

,?REE EXAMPLES >E SUFFICI5T4 

,ON P4#h#c#f _<P4#i#d_> ( ,NEUE ,ZEIT.<#a.> ,BAU] DEMON/RATES H[ ! ACCUMULATION ( SOCIAL CAPITAL TAKES PLACE4 ,HE ASSUMES 7LIKE ,M>X7 ! TWO L>GE DEP>TM5TS ( PRODUCTION 7,I1 PRODUCTION ( MEANS ( PRODUCTION2 ,I,I1 PRODUCTION ( MEANS ( CONSUMPTION74 ,! FIR/ DEP>TM5T BEG9S ) #a#b1 AS CON/ANT & #e1 AS V>IABLE CAPITAL 7:I* CAN REPRES5T ?\S&S OR MILLIONS ( M>KS1 9 %ORT MONEY VALUE74 ,9 ! SECOND DEP>TM5T HE ASSUMES A CON/ANT CAPITAL ( #h1 & A V>IABLE CAPITAL ( #e14 ,! FIGURES >E1 ( C\RSE1 >BITR>Y1 BUT !IR RELATIONS TO EA* O!R >E IMPORTANT1 = !Y EXPRESS C]TA9 ECONOMIC ASSUMPTIONS FROM :I* ,BAU] PROCE$S4 ,?US ! CON/ANT CAPITAL 9 BO? DEP>TM5TS IS GREAT] ?AN ! V>IABLE1 :I* EXPRESSES ! /AGE ( TE*NICAL PROGRESS4 ,?IS PR$OM9ANCE ( CON/ANT CAPITAL OV] V>IABLE IS GREAT] 9 ! FIR/ DEP>TM5T ?AN 9 ! SECOND1 AS TE*NOLOGY USUALLY PROGRESSES AT A FA/] RATE 9 ! FIR/ DEP>TM5T4 ,F9ALLY1 9 ACCORDANCE ) ?IS1 ! TOTAL CAPITAL ( ! FIR/ DEP>TM5T IS L>G] ?AN ?AT ( ! SECOND4 ,!SE >E ALL ,BAU]'S [N ASSUMPTIONS &1 S9CE !Y AGREE ) ,M>X'S1 !Y >E QUITE LAUDABLE4 ,SO F> SO GOOD4 

,N[ = ACCUMULATION4 ,?IS BEG9S ) ,BAU] 9CREAS+ BO? CON/ANT CAPITALS BY #a1 & BO? V>IABLE CAPITALS BY #b1#e4.<#b.> ,BUT HE ?US IMM$IATELY AB&ONS HIS ECONOMIC PREMISES4 ,= 7#a7 ! SMALL] CAPITAL ( ! SECOND DEP>TM5T CANNOT POSSIBLY GR[ BY ! SAME AM\NT AS ! L>G] CAPITAL ( ! FIR/ DEP>TM5T1 S9CE ?IS W\LD UPSET !IR MUTUAL RELATIONS1 :I* >E DET]M9$ BY TE*NOLOGICAL PROGRESS2 7#b7 ! ADDITIONAL CAPITALS CANNOT POSSIBLY BE DI/RIBUT$ 9 ! SAME WAY 9 BO? DEP>TM5TS BETWE5 CON/ANT & V>IABLE CAPITAL1 S9CE ! ORIG9AL CAPITALS W]E NOT DI/RIBUT$ 9 ! SAME PROPORTION4 ,ONCE AGA91 ,BAU] IS DE/ROY+ ! TE*NICAL BASIS :I* HE HIMSELF ASSUM$4 

,SO ,BAU] BEG9S BY >BITR>ILY DE/ROY+ HIS [N PREMISES ) ! FIR/ /EP HE TAKES4 ,:Y IS ?AT8 ,SIMPLY = ! SAKE ( >I?METICAL RESULTS1 TO OBTA9 A SMOO? CALCULATION BY ADDITION & SUBTRACTION :I* W\LD O!RWISE HAVE BE5 IMPOSSIBLE4 

,AFT] EXP&+ PRODUCTION 9 ?IS WAY ,BAU] TRIES TO %[ US H[ ! SECOND ACT ( ACCUMULATION OP]ATES1 ?IS SALTO MORTALE1 ! REALIZATION ( SURPLUS VALUE4 ,HE IS TRY+ TO DEMON/RATE ! EX*ANGE ( ! 9CREAS$ AM\NT ( GOODS 9 SU* A WAY ?AT WE REA* A FUR!R /EP ( ACCUMULATION1 I4E4 ANO!R EXPANSION ( PRODUCTION4 ,?IS HAPP5S ON P4#h#f#c4 

,WE >E H]E CONC]N$ ) ! EX*ANGE ( ! TWO PILES ( COMMODITIES :I* >E ! RESULT ( ! FIR/ YE>'S PRODUCTION3 #b#b1 MEANS ( PRODUCTION & #a#h1 MEANS ( CONSUMPTION4 ,AT FIR/ IT PROCE$S AS USUAL3 EA* DEP>TM5T USES ! BIGGE/ PORTION ( ITS COMMODITIES - P>TLY DIRECTLY1 P>TLY ?R\< EX*ANGE - TO R5EW ! OLD1 US$-UP CAPITAL1 & ALSO TO PROVIDE = ! CAPITALI/S' [N CONSUMPTION4 ,SO F> EV]Y?+ IS 9 ORD]2 SO F>1 ( C\RSE1 ,BAU] IS FOLL[+ 9 ,M>X'S FOOT/EPS4 ,BUT N[ ! SITUATION BECOMES DELICATE3 EXPANSION ( PRODUCTION = ! NEXT YE>1 ACCUMULATION4 ,?IS PROC$URE IS 9TRODUC$ ) ! WELL-KN[N QUOTATION3 ',MOREOV]1 ! CAPITALI/S WANT TO USE ! SURPLUS VALUE ACCUMULAT$ 9 ! FIR/ YE> TO EXP& EXI/+ OP]ATIONS & F\ND NEW ONES4' _<P4#i#g_> ,IT IS NO LONG] \R TASK TO CONC]N \RSELVES ) ! QUE/ION WE DEALT ) E>LI] ON3 :E!R ! 'WILL' ( ! CAPITALI/S IS SUFFICI5T4 ,WE AGREE H]E ) ,BAU] ?AT 'A MAN'S WILL' CAN GO A LONG WAY1 & >E CONC]N$ ONLY ) ! MANIPULATION :I* PUTS ! 9DEP5D5T WILL ( ! CAPITALI/ TO WORK4 

,! CAPITALI/S 9 ,BAU]'S FIR/ DEP>TM5T 'WANT' TO RE9VE/ #a#b1#e ( !IR SURPLUS VALUE4 ,:Y SO MU*8 ,BECAUSE ,BAU] NE$S ?IS FIGURE = HIS CALCULATIONS TO WORK \T4 ,WELL1 WE WILL SUBMIT )\T COMPLA9+ TO ,BAU]'S PLAN1 & WE WILL ONLY ALL[ \RSELVES ONE ?+3 TO /ICK TO HIS [N FREELY *OS5 ASSUMPTIONS4 ,TO CONT9UE1 ! CAPITALI/S 9 ! FIR/ DEP>TM5T HAVE DECID$ TO 9VE/ #a#b1#e ( !IR SURPLUS VALUE 9 PRODUCTION4 ,!Y HAVE ALREADY PUT #a1 ( !IR COMMODITIES 9TO !IR [N CON/ANT CAPITAL1 & PASS$ ON A FUR!R #b1#e TO ! O!R DEP>TM5T TO PUR*ASE PROVISIONS = ! ADDITIONAL WORK]S 9 !IR EXP&$ FACTORIES1 & N[ A SITUATION >ISES :]E !Y /ILL HAVE #d1#f#f#f LEFT OV] FROM ! TOTAL /OCK ( GOODS4 ,!Y HAVE ALREADY CONSUM$1 EX*ANG$ !IR OLD US$-UP CAPITAL1 9VE/$ NEW CAPITAL = EXPANSION1 & N[ !Y /ILL HAVE ?IS EMB>RASS+ REMA9D]4 ,:AT CAN !Y DO ) ! #d1#f#f#f LEFT OV]8 

,( C\RSE1 LET US NOT =GET ?AT ! CAPITALI/S 'WANT' TO ACCUMULATE 9 ! SECOND DEP>TM5T AS WELL AS 9 ! FIR/3 ,!SE CAPITALI/S 9 ! SECOND DEP>TM5T ALSO PROPOSE TO 9VE/ #a#b1#e1 AL?\< AS WE HAVE SE5 !Y [N A MU* SMALL] CAPITAL1 & !Y EV5 WANT TO DI/RIBUTE !M 9 ! SAME WAY - !IR VANITY TO IMITATE !IR RI*] COLLEAGUES EV5 MAKES !M NEGLECT TE*NICAL FACTORS4 ,H[EV] ?AT MAY BE1 9 ORD] = ?IS EXPANSION TO TAKE PLACE !Y NE$ AN ADDITIONAL PORTION ( MEANS ( PRODUCTION FROM ! FIR/ DEP>TM5T2 C\LD ?IS BE AN OPPORTUNITY TO GET RID ( ! UNCONSUMABLE REMA9D] FROM ?AT DEP>TM5T8 ,NO1 ?AT HAS ALREADY BE5 TAK5 C>E (1 IT HAS ALREADY HAPP5$4 ,! EXPANSION ( ,DEPT ,I,I HAS ALREADY PROCE$$ 'ACCORD+ TO PLAN'1 NAMELY ACCORD+ TO ! PLAN 9V5T$ BY ,BAU] HIMSELF4 ,!RE IS NOT EV5 ROOM !RE = ONE MORE NAIL4 ,& YET1 AFT] ALL ?IS1 !RE IS /ILL A REMA9D] ( #d1#f#f#f 9 ! FIR/ DEP>TM5T4 ,:AT >E WE TO DO ) ?IS8 ',:]E DO !Y F9D !IR \TLET8' ,BAU] ASKS4 ,& N[ ! FOLL[+ HAPP5S3 

,! CAPITALI/S 9 ! CONSUM] GOODS 9DU/RIES TRANSF] A P>T ( ! SURPLUS VALUE ACCUMULAT$ DUR+ ! FIR/ YE> TO ! MEANS ( PRODUCTION 9DU/RIES3 EI!R !Y !MSELVES F\ND FACTORIES TO PRODUCE MEANS ( PRODUCTION1 OR !Y TRANSF] P>T ( !IR ACCUMULAT$ SURPLUS VALUE VIA BANKS TO ! CAPITALI/S 9 ! MEANS ( PRODUCTION 9DU/RIES = !IR USE1 OR !Y BUY %>ES 9 COMPANIES :I* MANUFACTURE MEANS ( PRODUCTION 444 ,?US1 ! MEANS ( PRODUCTION 9DU/RY SELLS COMMODITIES WOR? #d1#f#f#f TO ?AT CAPITAL :I* HAS BE5 ACCUMULAT$ 9 ! CONSUM] GOODS 9DU/RY1 BUT IS TO BE 9VE/$ 9 ! MEANS ( PRODUCTION 9DU/RY4 ,!RE=E1 AP>T FROM MEANS ( PRODUCTION WOR? #h#e1#c#c#d 7:I* FULLY COV]S !IR [N DEM&71 ! CONSUM] GOODS 9DU/RY BUYS MEANS ( PRODUCTION WOR? #d1#f#f#f1 :I* >E MEANT TO PRODUCE MEANS ( PRODUCTION4.<#c.> 

,SO ?AT IS ! SOLUTION3 ! FIR/ DEP>TM5T SELLS ! 9DIGE/IBLE REMA9D] ( #d1#f#f#f TO ! SECOND DEP>TM5T1 :I* DOES NOT MAKE USE ( IT = ITSELF1 BUT 'TRANSF]S' IT 444 BACK TO ! FIR/ DEP>TM5T :]E IT IS US$ TO FUR!R EXP& CON/ANT CAPITAL ,I4 

,ONCE AGA91 WE DO NOT HAVE TO GO 9TO ! ECONOMIC FACT ( ,BAU]'S 'TRANSF]S' ( SURPLUS VALUE FROM ,DEPT ,I TO ,DEPT ,I,I4 ,AT ?IS PO9T WE >E BL9DLY FOLL[+ ,BAU] ?R\< ?ICK & ?92 WE JU/ WANT TO NOTICE :E!R HIS [N FREELY *OS5 OP]ATIONS >E TAK+ PLACE FAIRLY & CLEANLY1 :E!R HE IS ABID+ BY HIS [N ASSUMPTIONS4 

,CAPITALI/S ,I 'SELL' !IR COMMODITY-REMA9D] ( #d1#f#f#f TO CAPITALI/S ,I,I :O 'BUY' IT BY TRANSF]R+ 'P>T ( !IR ACCUMULAT$ SURPLUS VALUE' TO ,DEPT ,I4 ,BUT WAIT A M9UTE6 ,:AT DO !Y 'BUY' IT )8 ,:]E IS ! 'P>T ( ! SURPLUS VALUE' :I* PAYS = ! PUR*ASE8 ,!RE IS NO TRACE ( IT 9 ,BAU]'S TABLES6 ,! 5TIRE AM\NT ( COMMODITIES 9 ,DEPT ,I,I HAS ALREADY BE5 US$ = ! CONSUMPTION ( ! CAPITALI/ CLASS ( BO? DEP>TM5TS AS WELL AS = ! R5EWAL & 5L>GEM5T ( V>IABLE CAPITAL 7SEE ,BAU]'S [N CALCULATIONS ON P4#h#f#e71 AT LEA/ EXCEPT A REMA9D] ( #a1#a#f#g4 ,?IS #a1#a#f#g 9 CONSUM] GOODS IS ALL ?AT IS LEFT1 OV] FROM ! SURPLUS VALUE ( ! SECOND DEP>TM5T4 ,& N[ ,BAU] USES ?IS #a1#a#f#g1 NOT AS A SORT ( D[N PAYM5T ON ! #d1#f#f#f 9 MEANS ( PRODUCTION1 BUT AS V>IABLE CAPITAL = ! ADDITIONAL WORK]S1 :O W]E NE$$ = ! ALLEG$LY 'B\<T' #d1#f#f#f 9 MEANS ( PRODUCTION4 ,:I*EV] WAY Y\ LOOK AT ! ?+1 ! ',CAPITALI/S ,I,I HAVE US$ UP ALL !IR SURPLUS VALUE2 !Y TURN \T !IR POCKETS & CANNOT F9D A P5NY TO BUY ! /OR$ #d1#f#f#f 9 MEANS ( PRODUCTION4 

,ON ! O!R H&1 IF ?IS PUR*ASE HAD REALLY TAK5 PLACE WE W\LD HAVE TO F9D ! #d1#f#f#f WOR? ( EX*ANGE CONSUM] GOODS 9 ,DEPT ,I4 ,BUT :]E >E !Y & :AT DOES ,DEPT ,I DO ) !M8 ,NOT A WORD AB\T ?IS FROM ,BAU]4 ,! MY/ICAL #d1#f#f#f 9 CONSUM] GOODS :I* W\LD HAVE TO BE EX*ANG$ AT ! 'PUR*ASE' HAVE DISAPPE>$ )\T A TRACE4 ,OR %\LD WE IMAG9E ! PROCE$+S AS FOLL[S3 P]HAPS ! CAPITALI/S 9 ,DEPT ,I,I POSSESS SOME SP>E CAPITAL :I* DOES NOT APPE> 9 ! TABLE2 P]HAPS !Y HAVE SOME DEPOSITS 9 ! ,BANK ( ,G]MANY1 & DRAW #d1#f#f#f 9 MONEY TO BUY ?OSE MEANS ( PRODUCTION8 ,P>DON ME6 ,IT W\LD BE AN 9SULT TO ,M>X'S MODELS IF ,BAU] HAD ?\<T ( ?AT1 IF HE HAD CON/RUCT$ HIS TABLES AS ILLU/RATIONS ( 'AGGREGATE SOCIAL CAPITAL' ) ONE EYE ON SECRET DRAW]S CONTA9+ CAPITAL RES]VES :I* HE CAN DRAW ON IF HIS TABLES DON'T MAKE ANY S5SE4 ,AGGREGATE SOCIAL CAPITAL IS AGGREGATE SOCIAL CAPITAL6 ,!RE CAN BE NO MESS+ AB\T ) ?AT4 ,EV]Y?+ HAS TO BE %[N HONE/LY1 EV5 ! BANK DEPOSITS1 & ! 5TIRE CIRCULATION HAS TO TAKE PLACE )9 ! FRAMEWORK ( ! MODEL1 OR ELSE ! MODEL IS NOT WOR? ! PAP] IT IS WRITT5 ON6 

,! FACT REMA9S ?AT ! MANIPULATIONS ( ,BAU]'S CAPITALI/S >E %E] SW9DLES4 ,!SE G5TLEM5 PRET5D TO BE BUY+ & SELL+ #d1#f#f#f 9 MEANS ( PRODUCTION1 BUT 9 REALITY !RE >E NO MEANS ) :I* TO BUY !M4 ,:5 CAPITALI/S ,I GIVE ! REMA9D] ( !IR COMMODITIES TO CAPITALI/S ,I,I IT IS A LOVELY BIR?DAY PRES5T4 ,&1 9 ORD] NOT TO ACT %ABBILY1 CAPITALI/S ,I,I REPLY TO ?IS NOBLE GE/URE ) EQUAL HI<-M9D$NESS2 !Y GIVE ! PRES5T /RAI<T BACK TO !IR COLLEAGUES & EV5 G5]\SLY ADD !IR [N REMA9D] ( CONSUM] GOODS WOR? #a1#a#f#g 7!Y W\LD NOT KN[ :AT TO DO ) IT1 ANYWAY74 ,!RE Y\ >E1 FOLKS1 TAKE IT1 ,GOD BLESS Y\1 !RE Y\ HAVE ! V>IABLE CAPITAL TO SET Y\R SUP]FLU\S MA*9ES 9 MOTION4 ,?US1 AS ! LA/ ACT ( ACCUMULATION 9 ,DEPT ,I 7AFT] IT HAS BE5 5D$ 'ACCORD+ TO PLAN' 9 ,BAU]'S VIEW7 WE /ILL HAVE A NEW CON/ANT CAPITAL ( #d1#f#f#f & A V>IABLE CAPITAL ( #a1#a#f#g4 ,& ,BAU] ADDS1 TURN+ T[>DS HIS AUDI5CE ) A T5D] SMILE3 VOILA 4 

,9 ?IS WAY ! TOTAL PRODUCTIVE VALUE ( BO? SPH]ES1 ?US ALSO ! 5TIRE SURPLUS VALUE1 IS REALIZ$ 444 SIMIL>LY1 TABLE ,I,V CLE>LY %[S ?AT ! TOTAL PRODUCTIVE VALUE ( BO? SPH]ES1 9CLUD+ ! TOTAL SURPLUS VALUE1 IS REALIZ$ )\T DI/URBANCE NOT ONLY 9 ! FIR/ YE>1 BUT 9 EA* SUBSEQU5T YE> TOO4 ,COMRADE ,LUXEMBURG'S ASSUMPTION ?AT ! ACCUMULAT$ P>T ( SURPLUS VALUE CANNOT BE REALIZ$ IS !RE=E 9CORRECT4.<#d.> 

,! RESULT IS V]Y NICE1 BUT ! EXCITEM5T IS SOME:AT MODIFI$ BY ! MANIPULATIONS ?AT BR\<T IT 9TO BE+4 ,TO PUT IT PLA9LY3 AFT] ! EX*ANGE BETWE5 ! TWO DEP>TM5TS HAS TAK5 PLACE 9 ORD] TO R5EW & EXP& ! CAPITAL1 AN 9DIGE/IBLE REMA9D] ( MEANS ( PRODUCTION WOR? #d1#f#f#f IS LEFT 9 ,DEPT ,I1 & A SIMIL> REMA9D] ( CONSUM] GOODS WOR? #a1#a#f#g IS LEFT 9 ,DEPT ,I,I4 ,:AT >E WE TO DO ) BO? ( !M8 ,FIR/ EX*ANGE !M1 AT LEA/ UP TO ! SMALL] SUM8 ,BUT !RE W\LD /ILL BE A TOTALLY USELESS REMA9D] 9 ,DEPT ,I2 WE W\LD ONLY HAVE *ANG$ ! NUMB]S1 BUT NOT ! EMB>RASSM5T4 ,SECONDLY1 :AT ECONOMIC PURPOSE & MEAN+ C\LD ?IS EX*ANGE HAVE8 ,:AT IS ,DEPT ,I TO DO ) ! CONSUM] GOODS IT HAS PUR*AS$ 9 ?IS WAY = ITS ADDITIONAL WORK]S1 AS IT W\LD NOT HAVE 5\< MEANS ( PRODUCTION TO OCCUPY !SE WORK]S8 ,SIMIL>LY :AT IS ,DEPT ,I,I TO DO ) ! MEANS ( PRODUCTION IT HAS B\<T1 S9CE 9 ?IS EX*ANGE IT GAVE AWAY ! CONSUM] GOODS IT W\LD NE$ = ITS ADDITIONAL WORK]S8 ,EX*ANGE IS !RE=E IMPOSSIBLE1 ! TWO REMA9D]S 9 ! MODEL >E UNSALEABLE4 

,BAU] USES ! FOLL[+ TRICKS TO GET HIMSELF \T ( ?IS MESS4 ,FIR/LY1 HE FABRICATES ! 'SALE' ( ! UNSALEABLE REMA9D] ( COMMODITIES FROM ,DEPT ,I TO ,DEPT ,I,I1 )\T A S+LE WORD AB\T H[ ! LATT] PAYS = IT4 ,SECONDLY1 AFT] ! FABRICAT$ 'SALE'1 HE LETS CAPITALI/S ,I,I DO SOME?+ EV5 MORE ORIG9AL3 ) ! NEWLY ACQUIR$ MEANS ( PRODUCTION !Y WALK \T ( !IR [N DEP>TM5T 9TO ! O!R & 9VE/ !M !RE AS CAPITAL2 & ?IRDLY1 !Y TAKE ) !M !IR [N UNSALEABLE CONSUM] GOODS1 LIKEWISE TO 9VE/ !M 9 ! O!R DEP>TM5T AS V>IABLE CAPITAL4 

,ONE WOND]S :Y ,BAU] ?\<T UP ?IS ORIG9AL TRANSACTION 9/EAD ( SIMPLY LEAV+ ! SURPLUS MEANS ( PRODUCTION 9 ! FIR/ DEP>TM5T & LETT+ IT BE US$ !RE = EXPANSION1 :I* IS :AT F9ALLY HAPP5S ACCORD+ TO HIS TRICKS3 ,H[EV]1 ,BAU] W\LD !N FALL \T ( ! FRY+ PAN 9TO ! FIRE2 ?AT IS1 HE W\LD HAVE TO EXPLA9 H[ ! NECESS>Y V>IABLE CAPITAL 9 ! %APE ( #a1#a#f#g CONSUM] COMMODITIES CAN BE /E]$ FROM ! SECOND DEP>TM5T OV] TO ! FIR/4 ,S9CE ?IS IS JU/ NOT FEASIBLE & IT IS ABSOLUTELY IMPOSSIBLE TO USE UP EV]Y S+LE PRODUCT ?R\< EX*ANGE1 ,BAU] MAKES UP HIS CONFUS$ CONTRAPTION :I* MAKES ONE'S EYES SWIM1 9 ORD] TO PUT TOGE!R !SE UNSALEABLE REMA9S ( ! COMMODITIES 9 ! FIR/ DEP>TM5T AS ! F9AL ACT ( ACCUMULATION4 

,IT IS C]TA9LY A BOLD IDEA4 ,M>X WAS ! FIR/ 9 ! HI/ORY ( POLITICAL ECONOMY TO MAKE ! DI/9CTION BETWE5 ! TWO DEP>TM5TS ( SOCIAL PRODUCTION & DESCRIBE IT S*EMATICALLY4 ,?IS IS A FUNDAM5TAL CONCEPT :I* PUT ! :OLE PROBLEM ( SOCIAL REPRODUCTION ON A NEW BASIS & MADE IT POSSIBLE TO 9VE/IGATE ACCURATELY = ! FIR/ TIME4 

,M>X'S DI/9CTION & HIS MODEL1 H[EV]1 ASSUME ?AT ONLY EX*ANGE RELATIONS EXI/ BETWE5 ! TWO DEP>TM5TS1 :I* IS PRECISELY ! BASIC =M ( CAPITALI/ OR COMMODITY-PRODUC+ ECONOMY4 ,:5 WORK+ ) HIS MODEL1 TOO1 ,M>X KEEPS /RICTLY TO ?IS BASIC CONDITION1 JU/ AS HE /ICKS TO ALL HIS ASSUMPTIONS ) REL5TLESS CONSI/5CY4 ,BAU] COMES ALONG & CASUALLY HURLS ,M>X'S 5TIRE ANALYSIS TO ! GR\ND BY 'TRANSF]R+' ! COMMODITIES BACKW>DS & =W>DS FROM ONE DEP>TM5T TO ! O!R )\T EX*ANGE1 & FLY+ AB\T 9 ! RIGOR\S MODEL LIKE A WILD GOOSE 9 ! SKY1 TO USE A ,POLI% PROV]B4 

,BAU] APPEALS TO ! FACT ?AT1 ) TE*NOLOGICAL PROGRESS1 ! PRODUCTION ( MEANS ( PRODUCTION WILL GR[ AT ! EXP5SE ( ! CONSUM] GOODS PRODUCTION1 & ! CAPITALI/S 9 ! LATT] DEP>TM5T WILL ?US CON/ANTLY PLACE A PORTION ( !IR SURPLUS VALUE 9 ! =M] DEP>TM5T 9 SOME =M OR O!R 7?R\< BANKS1 %>E-HOLD+ OR F\ND+ NEW 5T]PRISES74 ,ALL ?IS IS EXCELL5T4 ,H[EV]1 ! 'TRANSF]' ( ACCUMULAT$ SURPLUS VALUE FROM ONE BRAN* (1 PRODUCTION TO ANO!R CAN ONLY OCCUR 9 ! =M ( MONEY CAPITAL1 ?AT =M ( CAPITAL :I* DOES NOT DIFF]5TIATE & IS ABSOLUTE1 & IS !RE=E ESS5TIAL = SOCIAL FLUCTUATION1 TO 9ITIATE ! DISPLACEM5TS ( SOCIAL COMMODITY PRODUCTION4 ,A LOAD ( UNSALEABLE WAX C&LES CANNOT BUY %>ES 9 COPP] M9ES1 NOR CAN A W>EH\SE FULL ( UNM>KETABLE RUBB] %OES SET UP A NEW MA*9E FACTORY4 ,! PO9T WAS TO %[ H[ G5]AL EX*ANGE CONV]TS CAPITALI/ COMMODITIES 9TO MONEY CAPITAL1 :I* ALONE 5ABLES ! FLUCTUATION FROM ONE BRAN* ( PRODUCTION TO ! O!R4 ,?US1 :5 EX*ANGE IS NO LONG] POSSIBLE1 IT IS PURE ESCAPISM SIMPLY TO 'TRANSF]' ! UNM>KETABLE PRODUCTS 9TO ANO!R DEP>TM5T ( PRODUCTION )\T EX*ANGE4 

,EQUALLY AMAZ+ IS ,BAU]'S IDEA ( LETT+ ONE DEP>TM5T ( SOCIAL PRODUCTION P>TICIPATE 9 ! O!R4 ,M>X'S DEP>TM5TS DO NOT MEAN REGI/]S ( EMPLOY]S' NAMES1 BUT OBJECTIVE ECONOMIC CATEGORIES4 ,IF A CAPITALI/ FROM ,DEPT ,I,I WANTS TO 'SET UP' & ACCUMULATE 9 ,DEPT ,I ) P>T ( HIS MONEY CAPITAL1 ?AT DOES NOT MEAN ?AT ! DEP>TM5T ( CONSUM] COMMODITIES IS PRODUC+ 9 ! DEP>TM5T ( MEANS ( PRODUCTION1 :I* IS AN ECONOMIC ABSURDITY1 BUT ?AT ONE & ! SAME P]SON IS ACT+ SIMULTANE\SLY AS AN EMPLOY] 9 EA* ( ! TWO DEP>TM5TS4 ,?US 9 ECONOMIC T]MS WE >E DEAL+ ) TWO CAPITALS1 ONE ( :I* PRODUCES MEANS ( PRODUCTION1 ! O!R CONSUM] GOODS4 ,= ! ANALYSIS ( ! CONDITIONS ( SOCIAL REPRODUCTION1 ! FACT ?AT BO? SUMS ( CAPITAL BELONG TO ONE & ! SAME P]SON1 & ?AT ! SURPLUS VALUE FROM !M BO? JO9 EA* O!R 9 ONE POCKET1 IS OBJECTIVELY IMMAT]IAL4 ,?US EX*ANGE REMA9S ! SOLE CONNECTION BETWE5 ! TWO DEP>TM5TS4 ,O!RWISE1 IF ONE MIXES ! TWO 9TO A %APELESS MA%1 AS ,BAU] DOES1 ,M>X'S RIGOR\S CON/RUCTION1 ! RESULT ( A HUNDR$ YE>S ( /RUGGLE = CL>ITY 9 POLITICAL ECONOMY1 DIS9TEGRATES2 ! ANALYSIS ( ! PROCESS ( REPRODUCTION BREAKS UP 9TO ! *AOS :]E ,SAY & SIMIL> 9TELLECTS W&]$ BOLDLY AB\T 9 '?9 AIR'4 

,NOTA B5E1 AT FIR/ ,BAU] HIMSELF PROCE$S FROM ?IS PREMISE4 ,= EXAMPLE1 RI<T AT ! BEG9N+ :5 HE IS CON/RUCT+ HIS TABLES HE SAYS3 ',?US ! VALUE ( ! PRODUCTS ( ! CONSUM] GOODS 9DU/RY MU/ AM\NT TO #a#h#h1 9 ! SECOND YE>1 = ! CONSUM] GOODS CAN ONLY BE EX*ANG$ = !SE AM\NTS ( VALUE4'.<#e.> ,SIMIL>LY1 AFT] HIS TABLES >E COMPLETE & ACCUMULATION CAN PROCE$1 HE ASKS3 ',:O BUYS !SE COMMODITIES8'.<#f.> ,?US ,BAU] HIMSELF MAKES ! CONDITION ?AT HE WILL ACCOMPLI% ACCUMULATION BY RAIS+ ! TOTAL SOCIAL AM\NT ( COMMODITIES4 ,&1 F9ALLY1 AFT] V>I\S EX*ANGES1 HE /ILL HAS SOME COMMODITIES LEFT 9 BO? DEP>TM5TS :I* CANNOT BE EX*ANG$4 ,HE !N GETS HIMSELF \T ( TR\BLE BY MAK+ BO? DEP>TM5TS GIVE PRES5TS TO EA* O!R & BY LETT+ ONE DEP>TM5T P>TICIPATE 9 ! O!R'S PRODUCTION4 ,?US1 AT ! V]Y PO9T ( DEP>TURE ( HIS TABLES1 ,BAU] GIVES UP HIS [N PREMISE & ! FUNDAM5TAL PREMISE ( ,M>X'S MODEL4 

,& N[ A ?IRD EXAMPLE4 

,AS IS WELL KN[N1 ,M>X DEVELOPS HIS MODELS = ! ILLU/RATION ( ACCUMULATION ON ! ASSUMPTION ?AT CON/ANT CAPITAL IS 9 A FIX$ RELATION TO V>IABLE CAPITAL1 & ?AT ! RATE ( SURPLUS VALUE IS EQUALLY FIX$ :5 CAPITAL IS ALSO GR[+ PROGRESSIVELY4 ,9 MY BOOK ,I EXPLA91 AMONG O!R ?+S1 ?AT IT IS ?IS ASSUMPTION :I* CANNOT BE RECONCIL$ ) REAL LIFE1 & ?AT FACILITATES ! SMOO? PROCESS ( ACCUMULATION 9 ,M>X'S MODELS4 ,! M]E CONSID]ATION ( TE*NOLOGICAL PROGRESS1 I4E4 ( ! GRADUAL ALT]ATION ( ! RELATION BETWE5 CON/ANT & V>IABLE CAPITAL1 & ! 9CREASE 9 ! RATE ( SURPLUS VALUE1 W\LD1 ,I SAID1 POSE 9SUP]ABLE PROBLEMS = ! EXPLANATION ( ACCUMULATION 9 ,M>X'S MODELS2 IT W\LD %[ ?AT ACCUMULATION SIMPLY CANNOT BE CONF9$ TO ! MUTUAL RELATIONS ( PURELY CAPITALI/ 9DU/RY4 

,N[ ,OTTO ,BAU]1 UNLIKE ,M>X1 TAKES GOOD NOTE ( TE*NOLOGICAL PROGRESS 9 HIS TABLES1 & 9CORPORATES IT 9TO HIS CALCULATIONS 9 ! MO/ EXPLICIT WAY1 SO ?AT HE LETS CON/ANT CAPITAL GR[ TWICE AS FA/ AS V>IABLE CAPITAL FROM YE> TO YE>4 ,9DE$1 AS HE EXP\NDS HIS !ORY FUR!R HE ASSIGNS A DET]M9+ ROLE TO TE*NOLOGICAL PROGRESS 9 ! V>IATION 9 ! /ATE ( BUS9ESS4 ,BUT :AT DO WE SEE OV] ! PAGE8 ,9 ! SAME BREA? ,BAU] ASSUMES A FIX$ & CON/ANT RATE ( SURPLUS VALUE 'TO SIMPLIFY ! 9VE/IGATION'4.<#g.> 

,NOTA B5E1 SCI5TIFIC ANALYSIS CAN IGNORE ! CONDITIONS ( REALITY OR COMB9E !M AT WILL TO SIMPLIFY ! SUBJECT1 AS ! OCCASION DEM&S4 ,! MA!MATICIAN MAY L[] OR RAISE HIS EQUATION AS HE WI%ES4 ,A PHYSICI/ MAY PLAN EXP]IM5TS 9 A VACUUM TO EXPLA9 ! RELATIVE SPE$ ( FALL ( BODIES4 ,SIMIL>LY1 ! POLITICAL ECONOMI/ MAY LEAVE \T CONCRETE CONDITIONS ( ECONOMIC LIFE = C]TA9 PURPOSES ( 9VE/IGATION4 ,9 ! :OLE ( ! FIR/ VOLUME ( ,CAPITAL ,M>X PROCE$S FROM ! ASSUMPTION ?AT 7#a7 ALL COMMODITIES >E SOLD AT !IR VALUE1 & 7#b7 ?AT WAGES CORRESPOND TO ! FULL VALUE ( LABOR1 AN ASSUMPTION :I*1 AS EV]YONE KN[S1 CONTRADICTS PRACTICE AT EV]Y /EP4 ,M>X USES ?IS PROC$URE TO %[ H[ CAPITALI/ EXPLOITATION IS ACCOMPLI%$ EV5 UND] ! MO/ FAVORABLE CONDITIONS = ! WORK]S4 ,HIS ANALYSIS DOES NOT CEASE TO BE SCI5TIFICALLY ACCURATE BECAUSE ( ?IS2 ON ! CONTR>Y1 IT IS PRECISELY 9 ?IS WAY ?AT HE GIVES US AN UN%AKABLE F\NDATION = ! EXACT E/IMATION ( DAILY PRACTICE & ITS EXCEPTIONS4 

,BUT :AT W\LD ONE SAY TO A MA!MATICIAN :O W\LD MULTIPLY ONE HALF ( HIS EQUATION BY TWO & LEAVE ! O!R HALF UN*ANG$ OR DIVID$ BY TWO8 ,:AT IS ONE TO ?9K ( A PHYSICI/ :O W\LD COMP>E ! RELATIVE SPE$ ( FALL ( V>I\S BODIES1 ONE 9 AN ATMOSPH]E & ! O!R 9 A VACUUM8 ,?IS IS H[ ,BAU] BEHAVES4 ,( C\RSE1 9 ALL HIS MODELS ( REPRODUCTION ,M>X ASSUMES A P]MAN5TLY FIX$ RATE ( SURPLUS VALUE1 & ONE CAN HOLD ?AT ?IS V]Y ASSUMPTION IS NOT LEGITIMATE = ! 9VE/IGATION ( ! PROBLEM ( ACCUMULATION4 ,M>X1 H[EV]1 DID /ICK RIGOR\SLY TO HIS ASSUMPTION1 & )9 ! LIMITS ( ?AT ASSUMPTION3 HE IGNOR$ TE*NOLOGICAL PROGRESS 9 EV]Y CASE4 

,BAU] TREATS ! SUBJECT QUITE DIFF]5TLY3 LIKE ,M>X HE ASSUMES A FIX$ RATE ( SURPLUS VALUE2 BUT UNLIKE ,M>X HE SIMULTANE\SLY ASSUMES /RONG & CONT9U\S TE*NOLOGICAL PROGRESS6 ,HE BR+S TE*NOLOGICAL PROGRESS 9TO HIS CALCULATIONS1 BUT ?IS BY NO MEANS RAISES ! LEVEL ( EXPLOITATION - TWO CONDITIONS :I* COMPLETELY CONTRADICT & NEUTRALIZE ONE ANO!R4 ,HE !N G5]\SLY LEAVES US TO TE/ ALL HIS CALCULATIONS ON ! ASSUMPTION ( AN 9CREAS+ RATE ( SURPLUS VALUE1 :I* HE HAD AT FIR/ 'NEGLECT$'1 ASSUR+ US ?AT EV]Y?+ W\LD !N PROCE$ TO ! SATISFACTION ( ALL4 ,IT IS A PITY ?AT ,BAU] DID NOT CONSID] IT WOR? HIS TR\BLE TO GO ON TO COMPLETE ?IS LITTLE DETAIL HIMSELF1 9/EAD ( BREAK+ (F HIS +5I\S CALCULATIONS1 JU/ LIKE ! O!R CALCULATION EXP]TS1 & TAK+ LEAVE ( US BECAUSE ( URG5T DELAYS AT ! V]Y PO9T :]E HIS PRO( %\LD HAVE BEGUN4.<#h.> 

,?IS AT LEA/ W\LD BE ! ONLY WAY 9 :I* AN >I?METICAL 'PRO(' C\LD HAVE BE5 PROVID$ = ,BAU]'S ASS]TION4 ,:AT HE HAS N[ PROVID$ IS NO LONG] AN AID = SCI5TIFIC ANALYSIS1 BUT QUACK]Y1 :I* EXPLA9S NO?+ & CAN PROVE NO?+4 

,UP TILL N[ ,I HAVE /ILL NOT T\*$ UPON ! ECONOMIC CONT5T ( ,BAU]'S TABLES4 ,I HAVE ONLY1 ) A FEW EXAMPLES1 ATTEMPT$ TO DEMON/RATE ! ME?ODS US$ BY ,BAU]1 & ! WAY 9 :I* HE KEEPS TO HIS [N CONDITIONS4 ,I DID NOT GO 9TO HIS H&L+ ( ! TABLES 9 SU* DETAIL 9 ORD] TO CELEBRATE *EAP VICTORIES OV] ! CLUMS9ESS ( HIS S*EMATIC OP]ATIONS4 ,MANY ( HIS PITFALLS CAN EASILY BE AVOID$ BY SOME:AT MORE +5I\SLY CON/RUCT$ TABLES - ,TUGAN-,B>ANOVSKY1 = EXAMPLE1 IS A PA/-MA/] AT ?IS - NOT ?AT ?IS W\LD PROVE MU* MORE AB\T ! QUE/ION4 ,! PO9T1 H[EV]1 IS H[ ,BAU] USES ,M>X'S MODELS2 IT IS A FACT ?AT ! CONFUSION :I* ,BAU] 5G5D]S 9 HIS TABLES BETRAYS ALL TOO CLE>LY JU/ H[ MU* HE C\LD DO ) ,M>X'S TABLES4 

,BAU]'S CO-EXP]T1 ,ECK/E91 CAN SLATE HIM AS MU* AS HE LIKES = HIS 'BASIC MISUND]/&+ ( ,M>X'S MODELS' & HIS COMPLETE '9ABILITY' TO WORK ') ,M>X'S MODELS'4 ,IT IS NOT BECAUSE ,I WANT$ TO JUDGE ,BAU] SO H>%LY1 LIKE HIS ,AU/RO-,M>XI/ COLLEAGUE1 ?AT ,I AM NOT CONT5T ) EMPHASIZ+ !SE FEW TE/S1 BUT BECAUSE ,BAU] EXPLA9S NAIVELY3 

,ROSA ,LUXEMBURG IS CONT5T TO PO9T \T ! CAPRICI\SNESS ( ,M>X'S MODELS - WE PROPOSE TO ATTEMPT TO LOOK AT ,M>X'S ?\<T PROCESS 9 A REASONABLE MANN] & TO CONDUCT \R 9VE/IGATION ) A MODEL FRE$ FROM CAPRICE4 ,?IS IS :Y WE HAVE ]ECT$ TABLES H]E :I* >E NO LONG] CAPRICI\S1 & :OSE MEASUREM5TS NECESS>ILY FOLL[ FROM EA* O!R1 PROVID$ ONE FIR/ PRESUPPOSES ! ASSUMPTION4.<#i.> 

,N[1 ,BAU] WILL EXCUSE MY WANT+ TO /AY ) ! UNCORRECT$ ,M>X & HIS 'CAPRICI\SNESS' AFT] ! TE/S ,I HAVE MADE4 ,WE WILL /ILL HAVE ! OPPORTUNITY AT ! 5D TO SEE :AT DIFF]5CE !RE IS BETWE5 ! MI/AKES ( A ,M>X & ! BLUND]S ( HIS 'EXP]T' EPIGONES4 

,BAU]1 H[EV]1 IS NOT CONT5T TO GIVE ME 9/RUCTION1 BUT - ?OR\< MAN ?AT HE IS - HE ALSO SEES FIT TO EXPLA9 MY MI/AKE4 ,HE HAS DISCOV]$ ! BASIS ( MY ]ROR3 ',COMRADE ,LUXEMBURG IS ?US 9CORRECT 9 H] ASSUMPTION ?AT ! ACCUMULAT$ P>T ( SURPLUS VALUE CANNOT BE REALIZ$1' HE WRITES1 AFT] HIS TABLES HAVE WORK$ \T ')\T REMA9D]' ?R\< ! ABOVE MANIPULATIONS4 ',H[ CAN ,COMRADE ,LUXEMBURG HAVE COME TO ?IS 9CORRECT ASSUMPTION8' ,& N[ FOLL[S ! AMAZ+ EXPLANATION3 

,WE HAVE ASSUM$ ?AT 9 ! FIR/ YE> ! CAPITALI/S BUY ! MEANS ( PRODUCTION :I* WILL BE SET 9 MOTION BY ! 9CREAS$ LABOR =CE 9 ! SECOND YE>1 & ?AT 9 ! FIR/ YE> ! CAPITALI/S BUY ! CONSUM] GOODS :I* !Y SELL TO ! 9CREAS$ LABOR =CE 9 ! SECOND YE>4 ,IF WE DID NOT ASSUME ?IS1 IT W\LD 9 FACT BE IMPOSSIBLE TO REALIZE ?IS YE> ! SURPLUS VALUE :I* WAS PRODUC$ 9 ! FIR/ YE>4 

,& YET AGA93 

,ROSA ,LUXEMBURG BELIEVES ?AT ! ACCUMULAT$ P>T ( SURPLUS VALUE CANNOT BE REALIZ$4 ,9DE$1 IT CANNOT BE REALIZ$ 9 ! FIR/ YE> IF ! MAT]IAL ELEM5TS ( ! ADDITIONAL PRODUCTIVE CAPITAL WILL NOT BE B\<T UNTIL ! SECOND YE>4.<#a.> 

,?AT IS ! HE>T ( ! MATT]4 ,I WAS NOT AW>E ?AT1 IF ONE WANT$ TO OP5 A FACTORY & PUT IT 9TO PRODUCTION 9 #a#i#a#f1 ONE HAD TO CON/RUCT ! NECESS>Y BUILD+S1 BUY ! MA*9ES & MAT]IALS & GET ! PROVISIONS 9 /OCK = ! WORK]S :O >E TO BE EMPLOY$ - 9 #a#i#a#e4 ,I WAS UND] ! IMPRESSION ?AT ONE F\NDS A BUS9ESS 5T]PRISE FIR/ & !N BUYS ! BUILD+ SITE = IT1 ?AT ONE EMPLOYS WORK]S FIR/ & !N PLANTS ! RYE :I* WILL BE BAK$ 9TO BREAD = !M6 ,IT IS1 9 FACT1 LUDICR\S - = ! V]Y REASON ?AT SU* DISCLOSURES >E S]V$ UP 9 ! SCI5TIFIC ORGAN ( ,M>XISM4 

,SO ,OTTO ,BAU] REALLY BELIEVES ?AT ,M>X'S =MULAS HAVE SOME?+ TO DO ) 'YE>S'1 & ! GOOD S\L TOILS ?R\< TWO SIDES ( PR9T TO PO9T ?IS \T TO ME 9 SIMPLE LANGUAGE ) ! HELP ( ?REE-/ORI$ =MULAS & ,ROMAN & ,GREEK LETT]S4 ,BUT ,M>X'S MODELS ( CAPITAL ACCUMULATION HAVE ABSOLUTELY NO?+ TO DO ) CAL5D> YE>S4 ,M>X WAS DEAL+ ) ! ECONOMIC METAMORPHOSES ( PRODUCTS & !IR CONNECTION 9 A CAPITALI/ ECONOMY2 HE WAS DEAL+ ) ! FACT ?AT1 9 ! CAPITALI/ WORLD1 ! SEQU5CE ( ! ECONOMIC PROCESSES IS3 PRODUCTION - EX*ANGE - CONSUMPTION - PRODUCTION AGA9 - EX*ANGE - CONSUMPTION1 & SO ON 9 AN 5DLESS *A94 ,BECAUSE EX*ANGE IS ! UNAVOIDABLE TRANSITIONAL PHASE ( ALL PRODUCTS & ! SOLE L9K BETWE5 PRODUC]S1 :5 ! COMMODITIES >E REALIZ$ IS 9 ! FIR/ 9/ANCE IRRELEVANT = PR(IT-MAK+ & ACCUMULATION2 ! FOLL[+ TWO FACTS1 H[EV]1 >E RELEVANT3 

,! TOTAL CAPITALI/1 LIKE EA* 9DIVIDUAL CAPITALI/1 CANNOT PLAN TO 5L>GE PRODUCTION UNTIL HE HAS EX*ANG$ HIS QUANTITY ( COMMODITIES2 & 

,! TOTAL CAPITALI/1 LIKE EA* 9DIVIDUAL CAPITALI/1 CANNOT PLAN TO 5L>GE PRODUCTION IF !RE IS NO 9DICATION ( AN 5L>G$ M>KET4 

,:]E !N DOES ! 5TIRE CLASS ( CAPITALI/S F9D ! GR[+ M>KET :I* IS ! BASIS = !IR ACCUMULATION8 ,?IS WAS ! QUE/ION4 ,& ,BAU] F9ALLY PROVIDES ! FOLL[+ DETAIL$ ELUCIDATION3 

,9 REALITY ! ACCUMULAT$ SURPLUS VALUE IS ALSO REALIZ$ 9 CAPITALI/ SOCIETY4 ,AT ALL EV5TS1 ! REALIZATION IS ACCOMPLI%$ /EP BY /EP1 GRADUALLY4 ,?US1 = 9/ANCE1 ! PROVISIONS :I* WILL BE US$ 9 ! SECOND YE> TO FE$ ! EXTRA NUMB] ( WORK]S >E NORMALLY PRODUC$ 9 ! FIR/ YE> & SOLD TO :OLESALE CAPITAL2 ?US1 P>T ( ! SURPLUS VALUE :I* LIES 9 !SE PROVISIONS WILL ALREADY BE REALIZ$ 9 ! FIR/ YE>4 ,! REALIZATION ( ! O!R P>T ( ! SURPLUS VALUE W\LD !N RESULT FROM ! :OLESAL] SELL+ !SE PROVISIONS TO ! RETAIL]1 :O SELLS !M TO ! WORK]S - ?US F> \R MODEL IS A FAI?FUL REPRES5TATION ( REALITY4.<#a#a.> 

,AT LEA/ ,BAU] GIVES US A TANGIBLE EXAMPLE H]E ( H[ HE IMAG9ES SURPLUS VALUE IS REALIZ$4 ,:E!R IT BE 9 ! FIR/ OR ! SECOND YE>1 ?IS TAKES PLACE BY ! MANUFACTUR] SELL+ ! PROVISIONS TO ! :OLESAL]1 HE TO ! RETAIL]1 & F9ALLY ! SMALL %OPKEEP] SELL+ !M TO ! EXTRA LABOR =CE4 ,?US IT IS ! WORK]S :O1 9 ! LA/ ANALYSIS1 REALIZE ! CAPITALI/'S SURPLUS VALUE = HIM1 :O HELP IT TO TURN 9TO H>D CA%4 ',?US F>' ,BAU]'S MODEL IS A FAI?FUL REPRES5TATION ( ! RANGE ( VISION ( ! 9DIVIDUAL CAPITALI/ & HIS !ORETICAL ,SAN*O ,PANZA1 ! B\RGEOIS VULG> ECONOMI/4 

,( C\RSE1 AS F> AS ! 9DIVIDUAL CAPITALI/ IS CONC]N$1 ,F]D IS AS GOOD A CONSUM] ( HIS COMMODITIES AS ,JOE1 WORK]S >E AS GOOD AS ANO!R CAPITALI/1 NATIONALS >E AS GOOD AS =EIGN]S & F>M]S >E AS GOOD AS >TISANS4 ,TO :OMEV] HE SELLS HIS COMMODITIES1 ! 9DIVIDUAL CAPITALI/ POCKETS HIS PR(IT & ! EMPLOY]S 9 ! BRAN* ( PROVISIONS :O SELL !IR COMMODITIES TO ! WORK]S RAKE 9 AS GOOD A PR(IT AS ! EMPLOY]S 9 ! BRAN* ( LUXURY GOODS DO BY SELL+ (F !IR TOP QUALITY W>ES1 LACE1 GOLD >TICLES & DIAMONDS TO ! FAIR WOMANHOOD ( ! 'TOP T5 ?\S&'4 ,BUT IF ,BAU]1 )\T NOTIC+ IT 9 ! LEA/1 TRANSF]S ?IS TRITE EMPIRICISM AS REG>DS EV]Y 9DIVIDUAL EMPLOY]1 OV] TO CAPITAL AS A :OLE1 IF HE CANNOT DIFF]5TIATE ! CONDITIONS ( SOCIAL REPRODUCTION FROM ! CONDITIONS ( REPRODUCTION ( 9DIVIDUAL CAPITAL - WELL !N1 :Y ON E>? DID ,M>X WRITE ! SECOND VOLUME ( ,CAPITAL8 ,= ! V]Y HE>T ( ,M>X'S !ORY ( REPRODUCTION1 ! DECISIVE A*IEVEM5T ( ! 'AMAZ+ WORK'1 AS ,BAU]'S COLLEAGUE1 ,HILF]D+1 CALLS IT1 LIES 9 ! FACT ?AT ,M>X HAD F9ALLY EXTRACT$ \T ( ! *AOS ( CONTRADICTIONS & FUMBL+ ATTEMPTS ( ,QUESNAY1 ,ADAM ,SMI? & !IR POOR IMITATORS :O FOLL[$ !M1 = ! FIR/ TIME & ) CLASSICAL CL>ITY1 ! FUNDAM5TAL DI/9CTION BETWE5 ! TWO CATEGORIES3 9DIVIDUAL CAPITAL & AGGREGATE SOCIAL CAPITAL & !IR MOVEM5TS6 ,LET US EXAM9E ,BAU]'S IDEAS FROM ?IS PO9T ( VIEW 9 ! SIMPLE/ POSSIBLE WAY4 

,:5CE DO ! WORK]S GET ! MONEY ) :I* !Y >E TO BUY ! PROVISIONS & ?US REALIZE ! CAPITALI/'S SURPLUS VALUE8 ,! 9DIVIDUAL CAPITALI/ DOES NOT GIVE A T9K]'S DAMN :]E HIS 'CU/OM]'S' MAMMON COMES FROM1 AS LONG AS HE HAS SOME - IT CAN BE GIV51 /OL5 OR E>N$ BY PRO/ITUTION4 ,= ! 5TIRE CLASS ( CAPITALI/S1 H[EV]1 !RE REMA9S ! UN%AKABLE FACT ?AT ! WORK]S RECEIVE ! MEANS TO SATISFY !IR NE$S FROM ! CAPITALI/S !MSELVES 9 EX*ANGE = LABOR - 9 ! =M ( WAGES4 ,AS ,I HAVE EXPLA9$ ABOVE1 !Y RECEIVE !SE 9 TWO DIFF]5T =MS1 ACCORD+ TO ! CONDITIONS ( MOD]N COMMODITY PRODUCTION3 FIR/ AS MONEY1 !N AS COMMODITY1 9 :I* WAY ! MONEY ALWAYS RETURNS TO ITS PO9T ( DEP>TURE1 ! POCKET ( ! CAPITALI/ CLASS4 ,?IS CIRCULATION ( V>IABLE CAPITAL COMPLETELY EXHAU/S ! PUR*AS+ P[] ( ! WORK]S & !IR CONTACT BY WAY ( EX*ANGE ) ! CAPITALI/4 ,?US1 IF PROVISIONS >E ALLOTT$ TO ! WORK]S1 ?AT DOES NOT MEAN1 SPEAK+ 9 SOCIAL T]MS1 ?AT CAPITAL IS REALIZ+ SURPLUS VALUE1 BUT ?AT IT IS DELIV]+ V>IABLE CAPITAL 9 COMMODITIES 7MAT]IAL WAGES71 ?US RETRIEV+ ITS [N CAPITAL FROM ! PREVI\S P]IOD 9 AN EQUAL AM\NT ( MONEY CAPITAL4 ,?US1 ACCORD+ TO ,BAU]'S =MULA1 ! SO-CALL$ REALIZATION ( SURPLUS VALUE CONSI/S 9 ! CAPITALI/S REPEAT$LY EX*ANG+ A PORTION ( NEW CAPITAL 9 COMMODITY =M AGA9/ AN EQUAL PORTION ( CAPITAL 9 MONEY =M :I* ALREADY BELONG$ TO !M6 ,9 REALITY1 ! CLASS ( CAPITALI/S DOES 9DE$ C>RY \T ?IS TRANSACTION1 S9CE !Y MU/ B[ TO ! SAD NECESSITY ( GIV+ !IR LABOR =CE A PORTION ( ! TOTAL PRODUCT AS MEANS ( SUBSI/5CE1 SO ?AT !Y CAN PRODUCE NEW SURPLUS VALUE 9 COMMODITY =M4 ,BUT ! CAPITALI/ CLASS NEV] IMAG9ES ?AT IT IS 'REALIZ+' ITS PREVI\S SURPLUS VALUE ?R\< ?IS PROCESS4 ,?IS WAS RES]V$ = ,BAU] TO DISCOV]4.<#a#b.> 

,AT ALL EV5TS1 ,BAU] HIMSELF DIMLY SUSPECTS ?AT ! CONV]SION ( SURPLUS VALUE 9TO V>IABLE CAPITAL REPRES5TS ANY?+ BUT 'REALIZATION ( SURPLUS VALUE'4 ,= 9/ANCE1 HE DOES NOT SAY A WORD AB\T IT AS LONG AS HE IS DEAL+ ) ! R5EWAL ( V>IABLE CAPITAL )9 ! OLD FRAMEWORK4 ,?AT CLEV] TRICK DOES NOT />T UNTIL ! 'ADDITIONAL WORK]S' APPE>4 ,WORK]S :O HAVE ALREADY BE5 EMPLOY$ BY CAPITAL = YE>S SIMPLY RECEIVE WAGES - FIR/ AS MONEY1 !N AS PROVISIONS - & PRODUCE SURPLUS VALUE 9 RETURN4 ,H[EV]1 WORK]S :O HAVE BE5 TAK5 ON REC5TLY ) ! EXPANSION ( OP]ATIONS ACCOMPLI% EV5 MORE2 !Y 'REALIZE' ! CAPITALI/S' SURPLUS VALUE BY US+ ! MONEY WAGE !Y RECEIVE FROM ! CAPITALI/S TO BUY PROVISIONS FROM !SE SAME CAPITALI/S6 ,WORK]S 9 G5]AL ONLY REALIZE !IR [N COMMODITY - LABOR P[] - = !MSELVES & DO 5\< = CAPITAL :5 !Y PRODUCE SURPLUS VALUE4 ,BUT ! SO-CALL$ 'ADDITIONAL' WORK]S >E SUPPOS$ TO ACCOMPLI% A D\BLE MIRACLE = CAPITAL3 

!Y PRODUCE SURPLUS VALUE 9 COMMODITIES1 & 

!Y ACTUALLY REALIZE ?IS SURPLUS VALUE 9 MONEY4 

,WE HAVE F9ALLY >RIV$ AT ! BASIC CONCEPTS ( ! PROCESS ( REPRODUCTION1 JU/ 9SIDE ! FRONT DOOR ( ! SECOND VOLUME ( ,CAPITAL1 & N[ IT BECOMES V]Y CLE> ?AT ,BAU] IS NOT ONLY CALL$ UPON TO EXPLA9 ,M>X'S SECOND VOLUME1 BUT ALSO TO 'FREE' IT FROM CONTRADICTIONS & '>BITR>9ESS' & TO 'EXPRESS ,M>X'S ?\<TS 9 A REASONABLE WAY'4 

,BAU] CR[NS ! G5]AL SECTION ( HIS CRITIQUE ( MY BOOK ) ! FOLL[+ PASSAGE3 

,COMRADE ,LUXEMBURG BELIEVES ?AT ! COMMODITIES :I* CONTA9 78 "4 87 7= COMMON MORTALS3 ! COMMODITIES CONTA9+ ! SURPLUS VALUE DE/9$ = CAPITALIZATION - ,R4,L47 MU/ BE SOLD \TSIDE ! CAPITALI/ WORLD TO MAKE ! REALIZATION ( !IR SURPLUS VALUE POSSIBLE4 ,:AT SORTS ( COMMODITIES >E !Y8 ,!Y >E ?OSE MEANS ( PRODUCTION CAPITALI/S NE$ TO EXP& !IR PRODUCTIVE APP>ATUS & ?OSE COMMODITIES NE$$ TO FE$ ! ADDITIONAL WORK]S4 

,A/ONI%$ AT MY OBTUS5ESS1 ,BAU] EXCLAIMS3 

,IF ?OSE COMMODITIES W]E ?R[N \T ( ! CAPITALI/ WORLD !RE W\LD BE NO PRODUCTION ON AN EXP&$ SCALE POSSIBLE DUR+ ! FOLL[+ YE>4 ,NEI!R ! MEANS ( PRODUCTION NECESS>Y = ! EXPANSION ( ! PRODUCTIVE APP>ATUS NOR ! NECESS>Y PROVISIONS TO FE$ ! 9CREAS$ LABOR =CE CAN BE SUPPLI$4 ,! ELIM9ATION ( ?IS P>T ( ! SURPLUS VALUE FROM ! CAPITALI/ M>KET W\LD NOT MAKE ACCUMULATION POSSIBLE1 AS ,ROSA ,LUXEMBURG ?9KS1 BUT RA!R MAKE ANY ACCUMULATION IMPOSSIBLE4.<#a#c.> 

,AGA91 HE /ATES CATEGORICALLY AT ! 5D ( HIS >TICLE3 

',! P>T ( ! SURPLUS PRODUCT :I* CONTA9S ACCUMULAT$ SURPLUS VALUE CANNOT BE SOLD TO ! PEASANTS & PETIT-B\RGEOISIE 9 ! COLONIES AS IT IS NE$$ 9 ! CAPITALI/ C\NTRY ITSELF TO EXP& PRODUCTION4'.<#a#d.> 

,GOOD ,GOD1 >E !RE WORDS = SU* ?9K+1 = SU* CRITICISM6 ,WE >E BACK AGA9 9 ! REALM ( ECONOMIC 9NOC5CE ON ! LEVEL ( ! GOOD OLD VON ,KIR*MANN.<#a#e.> OR ! HONORABLE ,RUSSIAN >*-CONFUSIONI/ ,WORONZ[4.<#a#f.> ,BAU] S]I\SLY BELIEVES ?AT CAPITALI/ COMMODITIES DISAPPE> ALTOGE!R IF !Y >E '?R[N AWAY' TO NON-CAPITALI/ /RATA OR C\NTRIES1 AS IF !Y W]E TOSS$ 9TO ! SEA4 ,HE DID NOT NOTICE ONE FACT :I* EV]Y *ILD KN[S !SE DAYS1 ?AT1 IF COMMODITIES >E EXPORT$1 !Y DO NOT GET LO/1 BUT >E EX*ANG$4 ,USUALLY O!R COMMODITIES >E B\<T FROM !SE NON-CAPITALI/ C\NTRIES & /RATA1 :I* SUPPLY ! CAPITALI/ ECONOMY ) MEANS ( PRODUCTION & CONSUMPTION6 ,HE GR&LY CALLS :AT IS EV]YDAY REALITY 9 ! HI/ORY ( CAPITALISM1 IGNORANCE ON MY SIDE1 &1 :AT IS MORE1 HI<LY 9JURI\S TO CAPITALISM6 

,?IS IS 9DE$ A/ONI%+4 ,FROM ! #a#h#bS TO ! #a#h#fS ,5GLI% CAPITALISM '?REW AWAY' COAL & IRON TO ! !N NON-CAPITALI/ ,NOR? & ,S\? ,AM]ICA2 & IT DID NOT P]I% BUT GREW & DEVELOP$ ROSY *EEKS4 ,G]MAN CAPITALISM EAG]LY EXPORTS MA*9ES1 IRON1 LOCOMOTIVES & TEXTILES TO ,TURKEY1 & DOES NOT COLLAPSE4 ,RA!R1 IT IS PREP>$ TO SET ! WORLD ON FIRE TO MONOPOLIZE ?IS TRADE TO AN EV5 GREAT] EXT5T4 ,9 ORD] TO OP5 UP OPPORTUNITIES TO '?R[ AWAY' CAPITALI/ COMMODITIES TO NON-CAPITALI/ ,*9A1 ,FRANCE & ,5GL& CONDUCT$ BLOODY W>S = ?REE DECADES 9 ,EA/ ,ASIA3 ! UNIT$ CAPITAL ( ,EUROPE UND]TOOK AN 9T]NATIONAL CRUSADE AGA9/ ,*9A AT ! TURN ( ! C5TURY4 ,TRADE1 EX*ANGE ) PEASANTS & >TISANS - NON-CAPITALI/ PRODUC]S 9 ,EUROPE - IS ONE ( ! MO/ COMMON PH5OM5A 9 EV]Y C\NTRY TODAY1 & AT ! SAME TIME1 AS EV]YONE KN[S1 ! UNAVOIDABLE PRECONDITION = ! EXI/5CE ( CAPITALI/ 9DU/RY4 ,& !RE IS ,OTTO ,BAU] SUDD5LY DECL>+3 IF CAPITALI/S W]E TO '?R[ AWAY' 9TO ! NON-CAPITALI/ WORLD ! COMMODITIES :I* !Y & !IR WORK]S DO NOT CONSUME !MSELVES1 ACCUMULATION W\LD BECOME IMPOSSIBLE6 ,AS IF CAPITALI/ DEVELOPM5T W\LD BE HI/ORICALLY POSSIBLE IF CAPITAL W]E DEP5D5T SOLELY ON SELF-PRODUC$ MEANS ( PRODUCTION & CONSUMPTION4 

,?IS IS H[ ONE CAN GET 5TANGL$ 9 ONE'S EAG]NESS = !ORETICAL /UPIDITY6 ,BUT IT IS *>ACT]I/IC1 = ?IS 5TIRE 'EXP]T' EPIGON-T5D5CY ( ,M>XISM 9 !ORY & PRACTICE - & WE WILL F9D ?IS AMPLY CONFIRM$ LAT] ON - ?AT !Y LOSE ALL S5SE ( REALITY BY BURY+ !MSELVES 9 AN AB/RACT 'MODEL'2 ! MORE BOLDLY !Y W&] >\ND ) A /ICK 9 ! MI/ ( !ORY1 ! MORE MIS]ABLY !Y /UMBLE OV] ! GL>+LY OBVI\S FACTS ( REAL LIFE4 

,WE HAVE N[ DEALT ) ,BAU]'S PRELIM9>Y PO9TS2 WE >E FAMILI> ) HIS ME?ODS & PROC$URES4 ,WE /ILL HAVE ! MA9 ?+3 HIS POPULATION !ORY4 

,FOOTNOTES 

.<#a.> #a#i#a#c1 ,NO4#b#c4 _<,5GLI% TRANSLATION3 ,OTTO ,BAU]'S ,ACCUMULATION ( ,CAPITAL1 ,HI/ORY ( ,POLITICAL ,ECONOMY1 #a#i#h#f1 #a#h3#a1 PP4#h#g-#a#a4_> 

.<#b.>LOC4 CIT4 _<P4#i#e_> 

.<#c.>IBID41 ,NO4#b#d1 P4#h#f#c4 _<P4#i#h_> 

.<#d.>IBID41 PP4#h#f#e-#f4 _<PP4#a-#a#a_> 

.<#e.>OP4 CIT41 ,NO4#b#c1 P4#h#c#g4 _<P4#i#e_> 

.<#f.>OP4 CIT41 ,NO4#b#d1 P4#h#f#c4 _<P4#i#h_> 

.<#g.>OP4 CIT41 ,NO4#b#c1 P4#h#c#e4 _<P4#i#c_> 

.<#h.> ,PANNEKOEK1 ALSO1 AFT] CALCULAT+ HIS TABLES ) QUICKLY GR[+ CAPITAL BUT ) A CON/ANT RATE ( SURPLUS VALUE1 SAYS3 ',AS ABOVE1 A GRADUAL ALT]ATION 9 ! RATE ( EXPLOITATION COMES 9TO CONSID]ATION TOO' 7,BREM] ,BURG]ZEITUNG1 #bi ,JANU>Y #a#i#a#c74 ,BUT HE TOO LEAVES ?AT DIFFICULTY TO ! READ]4 

.<#i.>OP4 CIT41 ,NO4#b#c1 P4#h#c#b4 _<P4#i#f_> 

.<#a.>OP4 CIT41 ,NO4#b#d1 P4#h#f#f4 _<PP4#a-#a#a_> 

.<#a#a.>OP4 CIT41 ,NO4#b#d1 P4#h#f#h4 _<PP4#a#c-#d_> 

.<#a#b.> ,A LITTLE 'EXP]T' 9 ! ,DRESD5] ,VOLKSZEITUNG 7( #bb ,JANU>Y #a#i#a#c7 HAS SOLV$ ! PROBLEM ( ACCUMULATION 9 A REM>KABLE WAY4 ',EA* EXTRA ,M>K'1 HE TELLS US1 ':I* ! WORK] RECEIVES CREATES A NEW CAPITAL 9VE/M5T ( T5 ,M>KS OR MORE1 ?US ! WORK]S' /RUGGLE 444 CREATES A M>KET = SURPLUS VALUE & MAKES CAPITAL ACCUMULATION 9 !IR [N C\NTRY POSSIBLE4' ,:AT A CLEV] LITTLE BOY6 ,! NEXT TIME ONE SU* 'EXP]T' HAS ! BRILLIANT IDEA ( SIMPLY WRIT+ 'COCKADOODL$OO' 9 ! MIDDLE ( AN ECONOMIC OBS]VATION1 HE CAN BE DEAD C]TA9 ?AT ?AT TOO WILL BE PR9T$ UN*ECK$ AS A LEAD >TICLE 9 ! ,SOCIAL ,DEMOCRATIC ORGAN4 ,IT SEEMS ?AT ! E/EEM$ $ITORS1 AT LEA/ ?OSE ( !M ) AN ACADEMIC $UCATION1 :O HAVE !IR H&S FULL ) UPTURN+ ! :OLE WORLD HI/ORY 9 P>LIAM5T>Y WAIT+ ROOMS & CORRIDORS1 HAVE = A LONG TIME CONSID]$ IT A WA/E ( TIME ACTUALLY TO GET D[N TO READ+ !ORETICAL BOOKS !MSELVES 9 ORD] TO =M SOME K9D ( OP9ION AB\T PROBLEMS :I* EM]GE4 ,IT IS MU* EASI] TO PASS ?AT SORT ( ?+ ON TO ! NE>E/ SCRIBBL] :O COLLATES ECONOMIC REVIEWS \T ( ,5GLI%1 ,AM]ICAN & O!R /ATI/ICAL PUBLICATIONS4 

"700@>.<#a#c.>IBID41 P4#h#f#c4 7,ALL EMPHASIS BY ,BAU]47 _<P4#a#c_> 

.<#a#d.>IBID41 P4#h#g#c4 _<P4#a#h_> 

.<#a#e.> .<,JULIUS ,H]MAN VON ,KIR*MANN 7#a#h#b-#h#d71 ,G]MAN LAWY]1 PHILOSOPH] & POLITICIAN4 ,= TREATM5T ( HIS IDEAS SEE ,M>X1 ,!ORIES ( ,SURPLUS ,VALUE1 ,PT4,I,I 7,PROGRESS ,PUBLI%]S1 ,MOSC[ #a#i#f#h2 ,LAWR5CE @& ,WI%>T1 ,LONDON #a#i#f#i74 ,ALSO ,LUXEMBURG1 OP4 CIT4.> 

.<#a#f.> .<,V4,P4 ,WORONZ[ 7,VORONTSOV7 7#a#h#d#g-#a#i#a#h74 ,!ORETICIAN ( ,N>ODNISM4 ,SEE ,G4,V4 ,PLEKHANOV1 ,! ,DEVELOPM5T ( ! ,MONI/ ,VIEW ( ,HI/ORY 7,=EIGN ,LANGUAGE ,PUBLI%+ ,H\SE1 ,MOSC[ #a#i#e#f74 ,ALSO ,LUXEMBURG1 OP4 CIT4 

O ,*APT] #d 3 ,! ',NEW' ,POPULATION ,!ORY ( ,OTTO ,BAU] 

',EV]Y SOCIETY :I* GR[S MU/ EXP& ITS PRODUCTIVE APP>ATUS EV]Y YE>4 ,?IS WILL BE A NECESSITY = ! FUTURE SOCIALI/ SOCIETY AS MU* AS IT IS = ! PRES5T CAPITALI/ SOCIETY1 OR AS IT WAS = ! SIMPLE COMMODITY-PRODUCTION & PEASANT ECONOMY ( ! PA/1 :I* PRODUC$ = ITS [N NE$4'.<#a.> 

,H]E1 9 A NUT%ELL1 IS ,BAU]'S SOLUTION TO ! PROBLEM ( ACCUMULATION4 ,9 ORD] TO ACCUMULATE1 CAPITAL NE$S A /EADILY 9CREAS+ \TLET TO MAKE ! REALIZATION ( SURPLUS VALUE POSSIBLE4 ,:]E DOES ! \TLET COME FROM8 ,BAU] ANSW]S3 ! POPULATION 9 CAPITALI/ SOCIETY GR[S1 LIKE ?AT 9 ANY O!R SOCIETY1 ?US 9CREAS+ ! DEM& = COMMODITIES & GIV+ ! F\NDATION = ACCUMULATION 9 G5]AL4 ',9 CAPITALI/ SOCIETY !RE IS A NE$ = CAPITAL ACCUMULATION TO ADJU/ TO POPULATION GR[?4'.<#b.> ,FROM ?IS C5TRAL PO9T ,BAU] D$UCES ! *>ACT]I/IC MOVEM5TS ( CAPITAL & ITS =MS4 

,FIR/ IS ! /ATE ( EQUILIBRIUM BETWE5 PRODUCTION & POPULATION1 I4E4 ! M$IAN >\ND :I* ! FLUCTUATIONS TAKE PLACE4 

,BAU] ASSUMES1 = ! SAKE ( ILLU/RATION1 ?AT ! POPULATION GR[S BY #e P] C5T ANNUALLY4 

',V>IABLE CAPITAL MU/ GR[ BY #e P] C5T IF ! EQUILIBRIUM IS TO BE MA9TA9$4' ,TE*NOLOGICAL PROGRESS 9CREASES CON/ANT CAPITAL 7DEAD MEANS ( PRODUCTION7 AT ! EXP5SE ( V>IABLE CAPITAL 7WAGES = ! LABOR =CE74 ,TO /RESS ?AT FACT1 ,BAU] ASSUMES ?AT IT GR[S TWICE AS FA/1 I4E4 BY #a P] C5T YE>LY4 ,ON ?IS BASIS HE CON/RUCTS ONE ( HIS '9CONTE/ABLE' TABLES1 :I* WE ALREADY KN[ AB\T & :I* N[ ONLY 9T]E/ US = !IR ECONOMIC CONT5T4 ,9 !SE TABLES ,BAU] 5TIRELY DISREG>DS ! TOTAL SOCIAL PRODUCT4 ,HE REA*ES ! CONCLUSION41 ',! EXPANSION ( ! FIELD ( PRODUCTION1 :I* IS A PRECONDITION ( ACCUMULATION1 IS PROVID$ BY POPULATION GR[?4'.<#c.> 

,! VITAL PO9T ( ?IS '/ATE ( EQUILIBRIUM' :I* ALL[S UNDI/URB$ ACCUMULATION IS CONDITIONAL ON V>IABLE CAPITAL GR[+ AT ! SAME RATE AS ! POPULATION4 ,LET US TAKE A %ORT LOOK AT ,BAU]'S BASIC LAW ( ACCUMULATION4 

,9 HIS EXAMPLE1 POPULATION GR[S AT ! RATE ( #e P] C5T P] ANNUM1 & SO V>IABLE CAPITAL MU/ ALSO GR[ BY #e P] C5T4 ,:AT DOES ?IS MEAN8 ',V>IABLE CAPITAL' IS AN AM\NT ( VALUE1 ! SUM ( WAGES PAID TO ! WORK]S1 EXPRESS$ 9 A C]TA9 AM\NT ( MONEY4 ,?IS CAN REPRES5T DIFF]5T TOTALS ( GOODS4 ,9 G5]AL1 ASSUM+ TE*NOLOGICAL PROGRESS & 9CREAS+ PRODUCTIVITY1 A RELATIVELY DECREAS+ SUM ( V>IABLE CAPITAL CORRESPONDS TO A CON/ANT AM\NT ( MEANS ( CONSUMPTION4 ,IF POPULATION GR[S BY #e P] C5T ANNUALLY1 V>IABLE CAPITAL HAS ONLY TO GR[ BY1 LET US SAY1 #d #c_/#d 1 #d #a_/#b 1 #d #a_/#d 1 #d P] C5T1 ETC41 TO PROVIDE AN EQUAL /&>D ( LIV+4 ,& ,BAU] DOES 9DE$ ASSUME G5]AL TE*NOLOGICAL PROGRESS2 TO EXPRESS ?AT1 HE PRESUPPOSES A GR[? ( CON/ANT CAPITAL :I* IS TWICE AS FA/4 ,GIV5 ?IS ASSUMPTION1 AN 9CREASE ( V>IABLE CAPITAL P>ALLEL ) ! GR[? ( POPULATION IS CONCEIVABLE ONLY 9 ONE SITUATION3 IF1 9 SPITE ( RAPID TE*NOLOGICAL PROGRESS 9 ALL BRAN*ES ( PRODUCTION - 9CREAS+ PRODUCTIVITY ( LABOR - PRICES REMA9 UN*ANG$4 ,BUT ?AT W\LD NOT ONLY BE !ORETICALLY ! FUN]AL ( ,M>X'S !ORY ( VALUE1 BUT ALSO1 9 PRACTICE1 9COMPREH5SIBLE FROM ! CAPITALI/ PO9T ( VIEW3 S9CE ! L[]+ ( PRICES IS A WEAPON 9 ! COMPETITION /RUGGLE1 A /IMULANT = 9DIVIDUAL CAPITAL TO BECOME A PIONE] ( TE*NOLOGICAL PROGRESS4 

,BUT WAIT6 ,MU/ WE ?9K ?AT MONEY-WAGES REMA9 UN*ANG$ 9 SPITE ( 9CREAS+ PRODUCTIVITY & *EAP5+ ( PROVISIONS1 AS ! WORK]S' /&>D ( LIV+ RISES ) ?IS PROGRESSION8 ,! SOCIAL RISE ( ! WORK+ CLASS IS TAK5 9TO ACC\NT 9 ?IS4 ,BUT IF ! RISE 9 ! WORK]S' /&>D ( LIV+ IS SO /RONG ?AT V>IABLE CAPITAL 7SUM ( MONEY-WAGES7 MU/ GR[ YE> AFT] YE> 9 EXACTLY ! SAME PROPORTION AS ! WORK+ POPULATION1 !N ?IS MEANS ?AT ALL ! TE*NOLOGICAL PROGRESS IS = ! B5EFIT ( ! WORK]S ALONE4 ,! CAPITALI/S C\LD NEI!R 9CREASE !IR /&>D ( LIV+ NOR ! RATE ( SURPLUS VALUE4 ,AS WE KN[1 ,BAU] DOES ASSUME A CON/ANT RATE ( SURPLUS VALUE4 ,HE CLAIMS ?AT HE ONLY ASSUMES IT '= ! SAKE ( SIMPLICITY' 444 'TO BEG9 )'1 TO HELP US 9TELLECTUAL DIMWITS GRASP ! RUNG ( HIS !ORY4 ,BUT 9 REALITY ?IS ASSUMPTION IS ! ECONOMIC F\NDATION ( ,BAU]'S !ORY1 AS WE CAN N[ SEE1 & ! 5TIRE '/ATE ( EQUILIBRIUM' IS DEP5D5T ON IT4 ,BAU] ADMITS ?IS QUITE EXPLICITLY HIMSELF3 

,\R MODEL 7TABLE ,I,V7 PRESUPPOSES ?AT 7#a7 ! WORK+ POPULATION GR[S BY #e P] C5T EA* YE>1 7#b7 V>IABLE CAPITAL GR[S AT ! SAME RATE AS ! WORK+ CLASS1 7#c7 CON/ANT CAPITAL 7I4E4 ! CO/ ( DEAD MEANS ( PRODUCTION7 GR[S FA/] ?AN V>IABLE CAPITAL TO ! DEGREE REQUIR$ BY TE*NOLOGICAL PROGRESS3 UND] !SE CONDITIONS IT IS NOT A/ONI%+ ?AT !RE >E NO DIFFICULTIES 9 ! REALIZATION ( SURPLUS VALUE4.<#d.> 

,YES1 BUT !SE CONDITIONS !MSELVES >E QUITE 'A/ONI%+'4 ,= AS LONG AS WE >E NOT W&]+ >\ND 9 ?9 AIR BUT /&+ ON ! SURFACE ( ?IS CAPITALI/ E>?1 :AT 9C5TIVE DO ! CAPITALI/S HAVE TO MAKE USE ( TE*NOLOGICAL PROGRESS & TO 9VE/ EV] L>G] SUMS 9 CON/ANT CAPITAL IF ! :OLE B5EFIT IS ONLY = ! WORK+ CLASS8 ,ACCORD+ TO ,M>X1 ! CREATION ( 'RELATIVE SURPLUS VALUE'1 ! 9CREASE 9 ! RATE ( EXPLOITATION ?R\< ! *EAP5+ ( ! LABOR =CE1 IS ! ONLY OBJECTIVE REASON = ! CAPITALI/ CLASS AS A :OLE TO PROMOTE TE*NOLOGICAL PROGRESS2 IT IS ! REAL OBJECTIVE RESULT ( ! COMPETITION ( 9DIVIDUAL CAPITALS1 AIM+ UNCONSCI\SLY = EXTRA PR(IT4 ,BAU]'S A/ONI%+ ASSUMPTION IS A PURE ECONOMIC IMPOSSIBILITY AS LONG AS CAPITALISM EXI/S4 ,IF WE PROCE$ ) HIM1 ASSUM+ TE*NOLOGICAL PROGRESS1 I4E4 A RISE 9 ! PRODUCTIVITY ( LABOR1 IT CLE>LY FOLL[S ?AT V>IABLE CAPITAL1 ! SUM ( WAGES1 CANNOT POSSIBLY GR[ 'AT ! SAME RATE' AS ! POPULATION4 ,IF POPULATION GR[S AT A CON/ANT RATE1 V>IABLE CAPITAL CAN GR[ ONLY AT A /EADILY DECREAS+ RATE1 ,LET US SAY AT #d#e_/#f1 #d#d_/#e1 #d #c_/#d 1 #d #a_/#b  P] C5T1 ETC4 ,& 9 REV]SE3 TO MAKE V>IABLE CAPITAL GR[ ) ! REGUL>ITY ( #e P] C5T P] ANNUM1 ! POPULATION W\LD HAVE TO GR[ AT AN 9CREAS+ RATE - LET US SAY #e #a_/#d 1 #e #a_/#b 1 #e #c_/#d 1 #f P] C5T1 ETC4 

,BAU]'S LAW ( 'EQUILIBRIUM' COLLAPSES LIKE A H\SE ( C>DS4 ,HIS !ORY ( 'EQUILIBRIUM' IS CON/RUCT$ ON ! DILEMMA ( TWO ECONOMIC ABSURDITIES1 BO? CONTRADICT+ ! ESS5CE ( CAPITALISM & ! PURPOSE ( ACCUMULATION - EI!R TE*NOLOGICAL PROGRESS DOES NOT L[] COMMODITY PRICES AT ALL1 OR ! L[] PRICES >E ONLY = ! B5EFIT1 NOT ( ACCUMULATION1 BUT ( ! WORK]S6 

,LET US TAKE A LOOK AT REALITY4 ,BAU]'S ASSUMPTION ( A #e P] C5T GR[? RATE 9 ! POPULATION IS1 ( C\RSE1 ONLY !ORETICAL4 ,HE C\LD JU/ AS WELL HAVE *OS5 #b OR #a P] C5T4 ,BUT REAL POPULATION GR[? IS BY NO MEANS IMMAT]IAL1 S9CE1 ACCORD+ TO ,BAU]1 CAPITALI/ DEVELOPM5T MU/ ADJU/ TO IT4 ,ON ?IS BASIC PR9CIPLE RE/S HIS 5TIRE !ORY ( ACCUMULATION4 ,& :AT IS ! REAL POPULATION GR[?1 = 9/ANCE1 9 ,G]MANY8 

,GR[? P] ANNUM1 ACCORD+ TO (FICIAL /ATI/ICS1 WAS 4#i#f P] C5T BETWE5 #ahaf & #a#h#f#d1 & #a4#i P] C5T BETWE5 #ahfd & #a#i#a4 ,?US1 9 REALITY1 ! RATE ROSE 9 ALMO/ A C5TURY FROM 4#i#f TO #a4#i P] C5T - A RISE ( 4#a#c P] C5T4 ,IF WE LOOK AT ! P]IOD ( L>GE-SCALE CAPITALI/ DEVELOPM5T 9 ,G]MANY1 ! ANNUAL 9CREASE FROM #ahga TO #ahh WAS #a4#h P] C5T2 4#h#i P] C5T FROM #ahh TO #a#h#i2 #a4#c#a P] C5T FROM #ahi TO #a#i2 & #a4#d#a P] C5T FROM #ai TO #a#i#a4 ,H]E1 TOO1 !RE IS AN 9CREASE ( A ?IRD )9 =TY YE>S4 ,H[ DOES ?AT CORRESPOND TO ! RATE ( GR[? ( ,G]MAN CAPITALISM DUR+ ! LA/ QU>T] ( ! C5TURY8 

,IF WE LOOK AT O!R CAPITALI/ C\NTRIES WE SEE EV5 BETT] EXAMPLES4 ,ACCORD+ TO ! LATE/ C5SUS FIGURES ! ANNUAL POPULATION GR[? IS3 

  
P] C5T 
,AU/RO-,HUNG>Y 
4#h#g 
,EUROPEAN ,RUSSIA 
#a4#c#g 
,ITALY 
4#f#c 
,RUMANIA 
#a4#e 
,S]BIA 
#a4#f 
,BELGIUM 
#a4#c 
,NE!RL&S 
#a4#c#h 
,5GL&1 ,SCOTL& & ,IREL& 
4#h#g 
,U,S,A 
#a4#i 
,FRANCE 
4#a#h 

,ONE SEES ?AT ! ABSOLUTE FIGURE ( POPULATION GR[?1 AS WELL AS ! COMP>ISON ( DIFF]5T C\NTRIES1 GIVES WOND]FUL FIGURES = ! /&PO9T ( ! ALLEG$ BASIS ( CAPITAL ACCUMULATION4 ,TO F9D ,BAU]'S HYPO!TICAL #e P] C5T1 JU/ = FUN1 WE W\LD HAVE TO EMIGRATE TO W>M] CLIMATES1 SOME:]E LIKE ,NIG]IA OR ! ,SUNDA >*IPELAGO4 ,9DE$1 ! ANNUAL 9CREASE ( POPULATION 9 ! FOLL[+ C\NTRIES IS3 

  
P] C5T 
,URUGUAY 
#c4#g#g 
,BRITI% ,MALAYA 
#d4#a#h 
,S\? ,NIG]IA 
#e4#e#e 
,NOR? ,BORNEO 
#f4#c#f 
,HONG ,KONG 
#g4#h#d 

,:AT A PITY ?AT ?OSE 9VIT+ LUXURI\S PA/URES ONLY EXI/ :]E !RE IS AS YET NO CAPITALI/ PRODUCTION1 & !SE P]SPECTIVES %R9K TO A B>R5 FIELD AS SOON AS WE COME CLOS] TO ! FAMILY SEATS ( CAPITALISM6 

,LET US TAKE A CLOS] LOOK AT ! MATT]4 ,BAU] SAYS ?AT CAPITAL ACCUMULATION IS DEP5D5T ON POPULATION GR[?4 ,:AT AB\T ,FRANCE1 = 9/ANCE8 ,!RE POPULATION GR[? HAS /EADILY DECREAS$2 IT IS N[ ONLY 4#a#h P] C5T4 ,! POPULATION GR[? IS SL[LY COM+ TO A /&/ILL1 P]HAPS EV5 AN ABSOLUTE DECREASE IS AHEAD4 ,9 SPITE ( ?AT1 CAPITAL 9 ,FRANCE HAPPILY C>RIES ON ACCUMULAT+3 SO WELL1 ?AT ,FRANCE CAN PROVIDE ! :OLE WORLD ) ITS CAPITAL RES]VES4 ,9 ,S]BIA POPULATION 9CREASES TWICE AS FA/ AS 9 ,5GL&2 BUT1 AS IS WELL KN[N1 CAPITAL ACCUMULATION IS MU* /RONG] 9 ,5GL& ?AN 9 ,S]BIA4 ,H[ DOES ?AT MAKE S5SE8 

,! ANSW] TO !SE D\BTS ONLY PO9TS \T \R [N OBTUS5ESS3 ,BAU]'S !ORY IS NOT RELAT$ TO 9DIVIDUAL C\NTRIES & !IR POPULATIONS4 ,IT LOOKS AT POPULATION 9 G5]AL4 ,! GR[? ( MANK9D 9 G5]AL IS IMPORTANT4 ,EXCELL5T4 ,BUT !N !RE >E EV5 /RANG] RIDDLES4 

,IT IS OBVI\S ?AT ! ANNUAL 9CREASE ( 'MANK9D' IS RELEVANT = CAPITALISM ONLY TO ! EXT5T ?AT MANK9D CONSUMES CAPITALI/ COMMODITIES4 ,!RE IS NO D\BT ?AT ! 5C\RAG+ GR[? ( POPULATION 9 ,NOR? ,BORNEO OR ,S\? ,NIG]IA IS ( LITTLE RELEVANCE TO ! ACCUMULATION ( CAPITAL 9 ! NE> FUTURE4 ,IS ! 9CREASE 9 ! NUMB] ( CU/OM]S = CAPITALISM SOMEH[ CONNECT$ TO ! NATURAL GR[? ( POPULATION8 ,ONE ?+ IS CLE>3 IF CAPITAL W]E TO WAIT = ! 9CREASE ( ITS CONSUM]S ?R\< NATURAL REPRODUCTION1 IT W\LD /ILL BE1 AT BE/1 9 ! SWADDL+ CLO!S ( ITS MANUFACTUR+ P]IOD4 ,9 FACT1 CAPITAL DOES NOT DREAM ( WAIT+4 ,RA!R1 IT USES O!R ABBREVIAT$ ME?ODS TO EXP& ! BASIS ( ACCUMULATION4 ,MAK+ USE ( ALL POLITICAL MEANS IT ATTACKS 7#a7 B>T] ECONOMY1 7#b7 SIMPLE COMMODITY-PRODUC+ ECONOMY4 ,GRADUALLY DE/ROY+ BO?1 IT F9DS MORE & MORE CONSUM]S 9 ALL P>TS ( ! WORLD4 ,BUT !SE ME?ODS 9T]F]E DRA/ICALLY ) POPULATION GR[? 9 ! RELEVANT C\NTRIES & PEOPLES4 

,! NUMB] ( CONSUM]S CAN GR[ :ILE ! POPULATION DECREASES4 ,9 FACT1 ! CAPITALI/ ME?OD ( PRODUC+ A WORLD M>KET GOES H&-9-H& ) DECIMATION & EV5 EXT]M9ATION ( :OLE TRIBES4 ,?IS PROCESS1 /ILL GO+ ON1 HAS ACCOMPANI$ CAPITALI/ DEVELOPM5T S9CE ! DISCOV]Y ( ,AM]ICA3 ! ,SPANI% 9 ,MEXICO & ,P]U 9 ! SIXTE5? C5TURY1 ! ,5GLI% 9 ,NOR? ,AM]ICA 9 ! SEV5TE5?1 9 ,AU/RALIA 9 ! EI<TE5? C5TURY1 ,DUT* 9 ! ,MALAY ,>*IPELAGO1 ,FR5* 9 ,NOR? ,AFRICA1 ,5GLI% 9 ,9DIA 9 ! N9ETE5? C5TURY1 ,G]MANS 9 ,S\? ,WE/ ,AFRICA 9 ! TW5TIE? C5TURY4 ,! W>S ( ,EUROPEAN CAPITAL TO 'OP5 UP' ,*9A HAVE ALSO L$ TO P]IODIC MASS SLAU<T] ( ! ,*9ESE POPULATION1 ?US UNAVOIDABLY SL[+ D[N !IR NATURAL GR[?4 

,AT ! SAME TIME AS ! EXPANSION ( ! BASE ( ACCUMULATION 9 NON-CAPITALI/ C\NTRIES IS L9K$ ) ! P>TIAL EXT]M9ATION ( ! POPULATIONS1 IT IS ACCOMPANI$ BY DIFF]5T V>IATIONS 9 ! POPULATION /RUCTURE 9 ?OSE C\NTRIES :]E CAPITALI/ PRODUCTION IS ALREADY ROOT$4 

,9 ! TWO CON/ITU5TS ( ! LATT] 7BIR? RATE & DEA? RATE7 WE SEE TWO OPPOS$ MOVEM5TS 9 ALL CAPITALI/ C\NTRIES4 ,! BIR? RATE IS G5]ALLY DECREAS+4 ,?US !SE W]E ! FIGURES = ! BIR? RATE 9 ,G]MANY P] #a1 9HABITANTS3 #a#h#g#a-#h1 #d4#g2 #a#h#h#a-#i1 #c#h4#b2 #a#h#i#a-#a#i1 #c#g4#c2 #a#i#a-#a1 #c#c4#i2 #a#i#a#a1 #b#i4#e2 #a#i#a#b1 #b#i4#a4 ,! SAME T5D5CY IS CLE> :5 ONE COMP>ES ! HI<LY DEVELOP$ C\NTRIES ) ! UND]DEVELOP$ ONES4 ,P] #a1 9 ,G]MANY !RE W]E BORN3 7#a#i#a#a-#a#b7 #b#h4#c2 9 ,5GL&1 #b#c4#h2 9 ,FRANCE1 #a#i42 9 ,PORTUGAL1 #c#i4#e2 9 ,BOSNIA & ,H]ZEGOV9A1 #d4#c2 9 ,BULG>IA1 #d4#f2 9 ,RUMANIA1 #d#c4#d2 9 ,RUSSIA1 #d#f4#h4 ,ALL /ATI/ICIANS1 SOCIOLOGI/S & DOCTORS ATTRIBUTE ?IS PH5OM5ON TO ! EFFECTS ( BIG CITY LIFE1 FACTORIES1 9SECURITY ( EXI/5CE1 CULTURAL IMPROVEM5TS1 ETC4 - 9 %ORT TO ! EFFECTS ( CAPITALI/ CULTURE4 

,AT ! SAME TIME1 MOD]N DEVELOPM5TS 9 SCI5CE & TE*NOLOGY & CULTURAL IMPROVEM5TS SUCCESSFULLY COMBAT ! DEA? RATE4 ,?US 9 ,G]MANY P] #a1 9HABITANTS1 P] ANNUM1 !RE DI$3 #a#h#g#a-#h1 #b#h4#h2 #a#h#h#a-#i1 #b#f4#e2 #a#h#i#a-#a#i1 #b#c4#e2 #a#i#a-#a1 #a#i4#g2 #a#i#a#a1 #a#h4#b2 #a#i#a#b1 #a#f4#d4 ,COMP>+ HI<LY DEVELOP$ ) BACKW>D C\NTRIES ! SAME PICTURE APPE>S3 DEA?S P] #a1 9HABITANTS 7#a#i#a#a-#a#b7 9 ,FRANCE1 #a#g4#e2 9 ,G]MANY1 #a#e4#f2 9 ,BELGIUM1 #a#d4#h2 ,5GL&1 #a#c4#c2 ,RUSSIA1 #b#i4#h2 ,BOSNIA & ,H]ZEGOV9A1 #b#f4#a2 ,RUMANIA1 #b#b4#i2 ,PORTUGAL1 #b#b4#e2 ,BULG>IA1 #b#a4#h4 ,DEP5D+ ON :I* ( ! TWO FACTORS BECOMES /RONG]1 POPULATION GR[S EI!R FA/] OR SL[]4 ,BUT1 9 ANY CASE1 IT IS ! DEVELOPM5T ( CAPITALISM ) ITS ECONOMIC1 SOCIAL1 PHYSICAL & 9TELLECTUAL EPIPH5OM5A1 IT IS CAPITAL ACCUMULATION1 :I* 9FLU5CES ! GR[? ( POPULATION & NOT ! O!R WAY R\ND4 ,9 G5]AL1 ! 9FLU5CE ( CAPITALI/ DEVELOPM5T LEADS1 SOON] OR LAT]1 TO A SL[+ D[N ( ! POPULATION GR[?4 ,! EXAMPLES ( ,HONG ,KONG & ,BORNEO1 CONTRA/$ ) ,G]MANY & ,5GL&1 & ( ,S]BIA & ,RUMANIA ) ,FRANCE & ,ITALY1 >E EXPLICIT 5\<4 

,AFT] ALL ?IS1 ! CONCLUSION IS AT H&4 ,BAU]'S !ORY /&S ! ACTUAL RELATION%IP ON ITS HEAD4 ,BY SUBORD9AT+ ! ACCUMULATION ( CAPITAL TO POPULATION GR[? HE NEGATES ! COMMONLY KN[N FACT ?AT CAPITAL %APES POPULATION3 AT ONE PO9T IT EXT]M9ATES IT 5 MASSE1 SOON IT SPE$S UP GR[?1 SOON IT SL[S IT D[N - ) ! G5]AL RESULT3 ! FA/] ! ACCUMULATION ! SL[] ?LE GR[? ( POPULATION4 

,A NICE QUID PRO QUO ?IS = AN HI/ORICAL MAT]IALI/1 =GETT+ TO LOOK AT REALITY & TO ASK HIMSELF3 YES1 CAPITAL ACCUMULATION IS DEP5D5T ON POPULATION GR[?1 BUT :AT DOES POPULATION GR[? ITSELF DEP5D ON8 

,FRI$RI* ,ALB]T ,LANGE.<#e.> SAID 9 HIS ,HI/ORY ( ,MAT]IALISM3 

,WE /ILL HAVE !SE DAYS SO-CALL$ PHILOSOPH]S 9 ,G]MANY1 :O WRITE1 9 A SORT ( METAPHYSICAL CLUMS9ESS1 GREAT TREATISES ON ! ORIG9S ( IDEAS - P]HAPS EV5 CLAIM+ ACCURATE OBS]VATION BY MEANS ( ! 9N] S5SE - )\T EV5 CONSID]+ ! FACT ?AT !RE >E NURS]IES1 P]HAPS EV5 9 !IR [N HOMES1 :]E ONE CAN OBS]VE ! SYMPTOMS ( ! ORIG9 ( IDEAS ) ONE'S [N EYES & E>S4 

,I DO NOT KN[ :E!R !RE >E /ILL SU* 'PHILOSOPH]S' 9 ,G]MANY TODAY4 ,BUT ! SPECIES ( 'METAPHYSICAL CLUMS9ESS' :I* TRIES TO SOLVE SOCIAL PROBLEMS ?R\< EXACT S*EMATIC CALCULATIONS BY US+ ! '9N] S5SE' & =GETT+ EYES & E>S1 ! WORLD & ! NURS]Y1 SEEMS TO HAVE F\ND ! COMPET5T 'HEIRS ( CLASSICAL ,G]MAN PHILOSOPHY' AMONG ! 'EXP]TS' ( (FICIAL ,M>XISM4 

,BUT ?+S GET EV5 MORE BEAUTIFUL4 ,UP TILL N[ WE HAVE BE5 CONSID]+ ! ECONOMIC CONDITIONS ( POPULATION GR[? BECAUSE ,BAU] APPE>S TO BE BAS+ HIS !ORY ( ACCUMULATION ON ?IS4 ,9 REALITY1 HIS !ORY HAS A DIFF]5T BASIS4 ,:5 HE TALKS AB\T 'POPULATION' & 'POPULATION GR[?' HE REALLY REF]S TO ! CLASS ( WAGE-WORK]S 9 CAPITALI/ SOCIETY1 & TO ?IS ALONE4 

,! FOLL[+ QUOTATIONS >E SUFFICI5T TO PROVE ?IS3 ',WE ASSUME ?AT ! POPULATION GR[S BY #e P] C5T EA* YE>4 ,IF ! BALANCE 7BETWE5 PRODUCTION & SOCIAL REQUIREM5TS7 IS TO BE MA9TA9$1 !N ! V>IABLE CAPITAL 7I4E4 ! AM\NT ( WAGES PAID7 MU/ ALSO GR[ BY #e P] C5T EA* YE>4'.<#f.> 

,IF ! CONSUMPTION BY ! POPULATION1 ON :I* PRODUCTION IS CALCULAT$1 IS EQUAL TO ! V>IABLE CAPITAL1 I4E4 ! AM\NT ( WAGES PAID1 !N ?IS 'POPULATION' CAN ONLY REF] TO ! WORK]S4 ,BUT ,BAU] HIMSELF =MULATES ?IS QUITE EXPLICITLY3 ',! ACQUISITION ( PROVISIONS = POPULATION GR[? IS EXPRESS$ ?R\< ! 9CREASE 9 V>IABLE CAPITAL4'.<#g.> ,HE /ATES ?IS EV5 MORE CATEGORICALLY 9 ! FOLL[+ PASSAGE1 :I* ,I HAVE ALREADY CIT$3 

,\R MODEL ASSUMES1 7#a7 ?AT ! WORK+ POPULATION GR[S BY #e P] C5T YE>LY1 7#b7 V>IABLE CAPITAL GR[S AT ! SAME RATE AS ! WORK+ CLASS1 7#c7 CON/ANT CAPITAL 7I4E4 ! CO/ ( DEAD MEANS ( PRODUCTION7 GR[S FA/] ?AN V>IABLE CAPITAL TO ! DEGREE REQUIR$ BY TE*NOLOGICAL PROGRESS4 ,UND] !SE CONDITIONS IT IS NOT A/ONI%+ ?AT !RE >E DIFFICULTIES 9 ! REALIZATION ( SURPLUS VALUE4.<#h.> 

,NOTA B5E1 ACCORD+ TO ,BAU]'S ASSUMPTION !RE >E ONLY TWO CLASSES 9 SOCIETY3 WORK]S & CAPITALI/S4 ',= 9 A SOCIETY'1 HE SAYS A FEW L9ES LAT]1 ':I* CONSI/S SOLELY ( CAPITALI/S & WORK]S1 !RE IS NO 9COME = ! UNEMPLOY$ PROLET>IAN O!R ?AN E>N$ 9COME1'.<#i.> ETC4 ,?IS ASSUMPTION IS BY NO MEANS 9CID5TAL2 ON ! CONTR>Y1 IT IS HI<LY IMPORTANT = ,BAU]'S ATTITUDE TO ! PROBLEM3 = HIS TASK1 LIKE ?AT ( ! O!R 'EXP]TS'1 IS TO DISPROVE ME BY %[+ ?AT1 ACCORD+ TO ! 'MODEL'1 CAPITAL ACCUMULATION IS POSSIBLE & CAN PROCE$ SMOO?LY EV5 9 A SOCIETY ) EXCLUSIVELY CAPITALI/ PRODUCTION1 CONSI/+ SOLELY ( CAPITALI/S & WORK]S4 ,?US !RE >E ONLY TWO SOCIAL CLASSES 9 ,BAU]'S !ORY3 CAPITALI/S & PROLET>IANS4 ,BUT ! GR[? ( CAPITAL ACCUMULATION IS RELAT$ ONLY TO ! CLASS ( PROLET>IANS4 ,FIR/ ,BAU] R$UCES ! POPULATION SIMPLY TO WORK]S & CAPITALI/S 7) HIS EXPLICIT ASSUMPTION71 !N HE SIL5TLY R$UCES IT 7) HIS OP]ATIONS7 TO WORK]S4 ,!SE >E ! 'POPULATION' TO :OSE NE$S CAPITAL ADAPTS4 ,?US1 :5 ,BAU] TAKES AN ANNUAL 'POPULATION GR[?' ( #e P] C5T AS A BASIS = HIS S*EMATIC EXPOSITION1 ?IS MEANS ?AT ONLY ! POPULATION ( WORK]S GR[S ANNUALLY BY #e P] C5T4 ,OR P]HAPS WE %\LD SEE ?IS 9CREASE 9 ! PROLET>IAN CLASS AS ONLY A P>T ( ! NORMAL REGUL> 9CREASE ( #e P] C5T ANNUALLY 9 ! TOTAL POPULATION8 ,BUT ?AT W\LD BE AN 5TIRELY NEW DISCOV]Y1 & PR(ESSIONAL /ATI/ICIANS HAVE LONG S9CE PROV$ ?AT 9 PRES5T-DAY SOCIETY EA* CLASS FOLL[S ITS [N POPULATION LAWS4 

,BAU] IS NOT1 9 PO9T ( FACT1 ?9K+ ( A REGUL> 9CREASE 9 ! TOTAL POPULATION4 ,AT ANY RATE1 ?IS IS NOT VALID = HIS CAPITALI/S :OSE ANNUAL GR[? RATE1 AS CAN BE EASILY PROV51 IS NO?+ LIKE #e P] C5T4 

,ON P4#h#c#e ,BAU] GIVES ! FOLL[+ FIGURES = ! CONSUMPTION /OCK 9 ! F\R CONSECUTIVE YE>S3 #g#e12 #g#g1#g#e2 #h1#e#c#i2 & #h#c1#c#g#d4 ,IF ,BAU] ASSUMES ?AT ! WORK]S' WAGES RISE ) !SE NUMB]S1 !N WE >E JU/IFI$ 9 ASSUM+ ?AT ! CAPITALI/S' /&>D ( LIV+ IS AT LEA/ F>+ NO WORSE ?AN ! WORK]S'2 & ?AT !IR 9COME = CONSUMPTION IS KEEP+ PACE ) !IR GR[?4 ,IF ?AT IS SO1 ! FOLL[+ FIGURES1 FOLL[ 9 ,BAU]'S MODEL FROM ! CAPITALI/S' CONSUMPTION1 = ! RESULT+ ANNUAL 9CREASE 9 ! CAPITALI/ CLASS 9 ! CORRESPOND+ F\R YE>S2 #e P] C5T 9 ! SECOND YE>2 #c4#f P] C5T 9 ! ?IRD2 #c4#e P] C5T 9 ! F\R?4 ,IF ?AT W]E TO CONT9UE1 ,BAU]'S CAPITALI/S W\LD SOON />T TO DIE \T1 :I* W\LD SOLVE ! PROBLEM ( ACCUMULATION 9 ! MO/ PECULI> WAY4 ,BUT WE >E NOT CONC]N$ H]E ) ! 9DIVIDUAL FATES ( ,BAU]'S CAPITALI/S2 ! PO9T H]E IS TO E/ABLI% ?AT ,BAU] ALWAYS MEANS GR[? ( ! WORK+ CLASS :5 HE TALKS AB\T POPULATION GR[? AS ! BASIS ( ACCUMULATION4 

,BAU] F9ALLY SPELLS IT \T HIMSELF1 BY EXPLA9+ ON P4#h#f#i3 

',IT 7! RATE ( ACCUMULATION7 MU/ CONT9UE TO 9CREASE 9 ?IS WAY UNTIL ! EQUILIBRIUM BETWE5 ! GR[? ( V>IABLE CAPITAL & POPULATION GR[? HAS BE5 RE/OR$4' 

,) EQUAL CL>ITY HE LAYS D[N ! G5]AL RULE ONCE AGA9 ON P4#h#g#a3 

,9 CAPITALI/ SOCIETY ! ACCUMULATION ( CAPITAL T5DS TO ADJU/ TO POPULATION GR[?4 ,?IS ADJU/M5T IS COMPLETE AS SOON AS V>IABLE CAPITAL 7I4E4 ! AM\NT ( WAGES7 9CREASES AT ! SAME RATE AS ! POPULATION ( WORK]S1 BUT CON/ANT CAPITAL GR[S FA/]1 AT A RATE REQUIR$ BY ! DEVELOPM5T ( ! PRODUCTIVE =CES4 

,BAU] PUTS IT AT ITS SIMPLE/ AT ! 5D ( HIS >TICLE1 :]E HE SUMM>IZES ! MA9 PO9TS3 

,TO BEG9 ) 79 AN ISOLAT$ CAPITALI/ SOCIETY1 LIKE ?AT ON :I* HIS MODEL IS BAS$7 ACCUMULATION IS LIMIT$ BY ! 9CREASE ( ! WORK+ POPULATION4 ,S9CE - ) A GIV5 ORGANIC COMPOSITION ( CAPITAL - ! AM\NT ( ACCUMULATION IS DET]M9$ BY ! 9CREASE 9 ! NUMB] ( AVAILABLE WORK]S1 ETC4.<#a.> 

,?US ! :OLE ?+ IS BRILLIANTLY CLE>3 UND] ! PRETEXT ( ! ADJU/M5T ( CAPITAL ACCUMULATION TO POPULATION GR[?1 ,BAU] MAKES CAPITAL DEP5D SOLELY ON ! WORK+ CLASS & ITS NATURAL GR[?4 ,WE SAY NATURAL GR[? EXPRESSLY BECAUSE 9 ,BAU]'S SOCIETY1 :I* KN[S NO MIDDLE CLASSES BUT ONLY CAPITALI/S & PROLET>IANS1 ! PROLET>IAT IS B>R$ FROM RECRUIT+ FROM ! PETTY-B\RGEOIS & PEASANT /RATA & CAN ?US ONLY 9CREASE BY NATURAL REPRODUCTION4 ,BAU] MAKES ?IS V]Y ADJU/M5T TO PROLET>IAN POPULATION 9TO ! PIVOT ( ! CAPITALI/ BUS9ESS CYCLE4 ,WE MU/ EXAM9E HIS !ORY FROM ?IS PO9T4 

,WE HAVE SE5 ?AT ! EQUILIBRIUM BETWE5 SOCIAL PRODUCTION & CONSUMPTION IS REA*$ :5 V>IABLE CAPITAL1 I4E4 ?AT P>T ( CAPITAL :I* IS SET ASIDE = WAGES1 GR[S AS FA/ AS ! POPULATION4 ,H[EV]1 ! ME*ANICS ( CAPITALI/ PRODUCTION >E CONT9UALLY TRY+ TO UPSET ?IS EQUILIBRIUM1 FIR/ D[NW>D - TO 'UND]-ACCUMULATION' - !N UPW>DS - TO 'OV]-ACCUMULATION'4 ,LET US />T BY CONSID]+ ! FIR/ MOVEM5T ( ! SW+4 

,IF ! FIR/ 'RATE ( ACCUMULATION' IS TOO WEAK1 SAYS ,BAU]1 I4E4 IF ! CAPITALI/S DO NOT PUT ASIDE 5\< NEW CAPITAL TO BE US$ 9 PRODUCTION1 ! GR[? ( CON/ANT CAPITAL LAGS BEH9D ?AT ( ! NUMB] LOOK+ = WORK4 ',WE CAN CALL ! /ATE :I* !N APPE>S ! /ATE ( UND]-ACCUMULATION4'.<#a#a.> ,BAU] !N DESCRIBES ?IS /ATE 9 MORE DETAIL4 ,! FIR/ EFFECT ( UND]-ACCUMULATION IS ! =MATION ( AN 9DU/RIAL RES]VE >MY4 ,A SECTION ( ! 9CREAS$ POPULATION IS \T ( WORK4 ,! UNEMPLOY$ PROLET>IANS EX]T PRESSURE ON ! WAGES ( ! EMPLOY$1 WAGES S9K1 ! RATE ( SURPLUS VALUE RISES4 

,= 9 A SOCIETY CONSI/+ SOLELY ( CAPITALI/S & WORK]S !RE IS NO O!R 9COME = ! UNEMPLOY$ PROLET>IANS BUT WAGE 9COME2 WAGES MU/ S9K & ! RATE ( SURPLUS VALUE MU/ RISE UNTIL ! 5TIRE WORK+ CLASS F9DS WORK DESPITE ! RELATIVELY R$UC$ V>IABLE CAPITAL4 ,! *ANGE :I* OCCURS BECAUSE ( ?IS 9 ! DI/RIBUTION ( ! PRODUCT IS BR\<T AB\T BY ! FACT ?AT1 ) ! 9CREAS+ ORGANIC COMPOSITION ( CAPITAL1 :I* EXPRESSES TE*NOLOGICAL PROGRESS1 ! VALUE ( ! LABOR =CE HAS FALL5 & ?US CREAT$ RELATIVE SURPLUS VALUE4 

,?IS GR[? ( SURPLUS VALUE PROVIDES FRE% FUNDS = ! CAPITALI/S TO EMPLOY 9 R5EW$ & /RONG] ACCUMULATION1 :I* RESULTS 9 A MORE 5]GETIC DEM& = LABOR3 ',?US1 ! AM\NT ( SURPLUS VALUE :I* WILL BE US$ TO 5L>GE V>IABLE CAPITAL GR[S TOO4' ,IT WILL CONT9UE TO GR[ LIKE ?IS 'UNTIL ! EQUILIBRIUM BETWE5 ! GR[? ( V>IABLE CAPITAL & POPULATION GR[? HAS BE5 RE/OR$'4.<#a#b.> ,9 ?IS WAY WE >E L$ \T ( UND]-ACCUMULATION & BACK TO EQUILIBRIUM4 ,WE HAVE DESCRIB$ H]E ONE HALF ( ! P5DULUM MOVEM5T ( CAPITAL2 LET US TAKE A LITTLE MORE TIME OV] ?IS1 ! FIR/ ACT ( ! P]=MANCE4 

,! /ATE ( EQUILIBRIUM MEANS - LET US REM9D \RSELVES ONCE AGA9 - ?AT ! DEM& = LABOR & ! GR[? ( ! PROLET>IAN POPULATION BALANCE EA* O!R2 ?US ! 5TIRE WORK+ CLASS F9DS EMPLOYM5T = ITS NATURAL 9CREASE4 ,PRODUCTION IS !N ?R[N \T ( ?IS EQUILIBRIUM1 ! DEM& = WORK LAGS BEH9D ! GR[? ( ! PROLET>IAT4 ,:AT ?R[S IT \T ( EQUILIBRIUM8 ,:AT MAKES ! P5DULUM MOVE PA/ ! C5T]-PO9T ( BALANCE = ! FIR/ TIME8 ,M]E MORTALS F9D IT SOME:AT DIFFICULT TO DISCOV] ?IS FROM ,BAU]'S LE>N$ GIBB]I%4 ,=TUNATELY1 HE COMES TO \R AID ) SOME:AT CLE>] LANGUAGE ON ! NEXT PAGE1 :]E HE SAYS3 ',! PROGRESS T[>DS ! HI<] ORGANIC COMPOSITION ( CAPITAL ALWAYS BR+S AB\T UND]ACCUMULATION4'.<#a#c.> 

,AT LEA/ ?AT IS CLE> & TO ! PO9T4 ,TE*NOLOGICAL PROGRESS1 :I* SUPPLANTS LIV+ LABOR P[] BY MA*9ES &1 !RE=E1 P]IODICALLY SL[S D[N ! DEM& = WORK]S1 CREATES AN 9DU/RIAL RES]VE >MY1 L[]S WAGES2 9 %ORT1 IT BR+S AB\T A /ATE ( 'UND]-ACCUMULATION'4 

,LET US CONFRONT ,BAU] ) ,M>X4 

,9 A /ATE ( UND]-ACCUMULATION1 SAYS ,BAU]1 '! VALUE ( LABOR FALLS'1 & 9 ?IS WAY 'RELATIVE SURPLUS VALUE' IS =M$1 S]V+ AS A NEW FUND = ACCUMULATION4 ,IF ! USE ( MA*9ES MAKES A PORTION ( ! 9CREAS$ POPULATION UNEMPLOY$' & 'WAGES FALL' UND] ! PRESSURE ( !SE UNEMPLOY$1 ?AT /ILL DOES NOT MEAN ?AT '! VALUE ( LABOR' S9KS2 IT DOES MEAN ?AT ! PRICE ( ! COMMODITY LABOR 7! MONEY-WAGE7 FALLS BEL[ ITS VALUE 7I4E4 BEL[ ! /&>D ( LIV+ PREVI\SLY ATTA9$ BY ! WORK]S7 AS A RESULT ( EXCESS SUPPLY4 ,ACCORD+ TO ,M>X1 H[EV]1 RELATIVE SURPLUS VALUE DOES NOT DEVELOP ?R\< WAGES FALL+ BEL[ ! VALUE ( LABOR BECAUSE ( A DECREAS$ DEM& = WORK]S2 ON ! CONTR>Y - & ,M>X REPEATS ?IS TIME & TIME AGA9 9 ! FIR/ VOLUME ( ,CAPITAL - IT DEVELOPS UND] ! EXPLICIT CONDITION ?AT ! PRICE ( LABOR1 I4E4 ! WAGE1 IS EQUAL TO ITS VALUE2 9 O!R WORDS1 ?AT DEM& & SUPPLY ( LABOR >E 9 EQUILIBRIUM4 ,ACCORD+ TO ,M>X1 IT >ISES UND] ?IS CONDITION AS A RESULT ( A *EAP5+ 9 ! CO/ ( MA9TA9+ LABOR1 I4E4 AS A RESULT ( ! V]Y FACTOR :I* ,BAU] OMITT$ :5 HE EXPLA9$1 AS WE HAVE SE51 ?AT IT WAS ESS5TIAL TO AN 'EQUILIBRIUM' ?AT 'V>IABLE CAPITAL GR[S AS FA/ AS ! WORK+ POPULATION'4 ,TO PUT IT SIMPLY3 UND] ! PRETEXT ( 'RELATIVE SURPLUS VALUE' ,BAU] 9 FACT SIMPLY D]IVES ! =MATION ( NEW CAPITAL1 ) :I* HE 9T5DS TO PROVIDE = FUTURE ACCUMULATION1 FROM ! DEPRESSION ( WAGES :I* IS =C$ ON ! WORK]S BY A D[NW>D SW+ 9 ! CAPITALI/ P5DULUM4 

,:AT SORT ( A REM>KABLE ECONOMIC LAW = ! MOVEM5T ( WAGES IS IT1 ?AT !Y MU/ 'CONT9UALLY FALL' 'UNTIL ! 5TIRE WORK+ CLASS IS EMPLOY$'8 ,WE >E N[ EXP]I5C+ A CURI\S PH5OM5ON3 ?AT ! L[] ! WAGES FALL ! HI<] ! LEVEL ( EMPLOYM5T RISES4 ,:5 WAGES REA* !IR L[E/ PO9T ! 5TIRE RES]VE >MY WILL BE ABSORB$6 ,9 REAL LIFE ! NORMAL C\RSE ( EV5TS IS QUITE ! OPPOSITE2 A FALL 9 WAGES CORRESPONDS ) GR[+ UNEMPLOYM5T1 A RISE ) 9CREAS+ EMPLOYM5T4 ,! 9DU/RIAL RES]VE >MY IS USUALLY AT ITS L>GE/ :5 WAGES REA* !IR L[E/ LEVEL1 & IT IS MORE OR LESS ABSORB$ :5 WAGES REA* !IR HI<E/ LEVEL4 

,BUT !RE >E MORE /RANGE ?+S TO COME 9 ,BAU]'S MODEL4 

,CAPITALI/ PRODUCTION LIFTS ITSELF \T ( ! VALLEY ( DEA? ( UND]-ACCUMULATION ) A ME?OD :I* IS AS SIMPLE AS IT IS ABRUPT3 :5 WAGES >E L[E/1 ! CAPITALI/ CAN PUT ASIDE NEW E>N+S 7:AT ,BAU]1 SLI<TLY MISUND]/&+ ! FIR/ VOLUME ( ,CAPITAL1 CALLS 'RELATIVE SURPLUS VALUE'74 ,!Y !N PROVIDE A NEW FUND = 9VE/M5TS1 TO EXP& PRODUCTION & RAISE ! DEM& = LABOR4 ,AGA91 WE >E NOT ON DRY L&1 BUT ADRIFT 9 ,BAU]'S 'SOCIETY'4 ,!SE DAYS1 CAPITAL W\LD HAVE TO SCRAPE UP ALL ITS LITTLE SAV+S FROM A G5]AL L[]+ ( WAGES BE=E IT D>$ TO />T NEW 9VE/M5TS & 5T]PRISES6 ,IT MU/ WAIT = WAGES TO S9K TO !IR L[E/ LEVEL 9 ORD] TO GET NEW 9VE/M5T CAPITAL TO EXP& PRODUCTION6 ,9 ,BAU]'S DREAML& SPECULATIONS CAPITALISM HAS REA*$ ! ULTIMATE LEVEL ( ITS DEVELOPM5T4 ,ALL 9T]M$IATE /RATA HAVE BE5 ABSORB$1 ONLY CAPITALI/S & PROLET>IANS >E LEFT4 ,NONE!LESS1 9 ?IS SOCIETY !RE >E NO CAPITAL RES]VES2 IT /ILL LIVES FROM H& TO M\?1 AS 9 ! 'GOOD OLD DAYS ( ,DR ,AIK9' 9 SIXTE5?-C5TURY ,5GL&4 ,9 ?AT SOCIETY !RE >E OBVI\SLY AS YET NO BANKS1 :I* H]E ON E>? />T$ ACCUMULAT+ HUGE CAPITAL RES]VES LONG AGO1 JU/ WAIT+ = OPPORTUNITIES TO 9VE/ AT ALL WAGE LEVELS4 ,! FEV]I% ACCUMULATION ON ?IS HI<E/ LEVEL N[ TAK+ PLACE 9 ALL BELLIG]5T & NEUTRAL C\NTRIES BR+S ! BITT] H>VE/ ( WORLD W> 9TO !IR B>NS ( EASY PR(IT4 ,?IS IS ! MO/ DRAMATIC SATIRE ON ! ANEMIC CAPITAL ( ,BAU]'S FANTASY1 :I* RELIES ON A P]IODIC G5]AL DEPRESSION ( ! LABOR =CE TO ITS L[E/ LEVEL 9 ORD] TO PLUCK UP C\RAGE = ITS ADV5TUR\S ACCUMULATION4 ,BAU] REPEATS HIMSELF :5 DESCRIB+ ! 'RE/ORATION ( EQUILIBRIUM'3 

,UND] ! PRESSURE ( ! 9DU/RIAL RES]VE >MY1 ! RATE ( SURPLUS VALUE1 & ) IT ! RATE ( SOCIAL ACCUMULATION1 WILL RISE UNTIL IT IS L>GE 5\< TO 9CREASE V>IABLE CAPITAL AT ! SAME RATE AS ! WORK+ POPULATION1 9 SPITE ( 9CREAS+ ORGANIC COMPOSITION4 ,AS SOON AS ?AT PO9T IS REA*$1 ! 9DU/RIAL RES]VE >MY IS ABSORB$ 7NOTA B5E3 = ! SECOND TIME1 IT WAS ABSORB$ ONCE BE=E1 :5 WAGES W]E AT !IR L[E/1 I4E4 9 ! MO/ SEV]E 'UND]-ACCUMULATION'1 - ,R4,L47 & ! EQUILIBRIUM BETWE5 ACCUMULATION & POPULATION GR[? IS RE/OR$4.<#a#d.> 

,! SECOND SW+ ( ! P5DULUM N[ FOLL[S ?IS RE/OR$ '/ATE ( EQUILIBRIUM' - UPW>DS1 TO 'OV]-ACCUMULATION'4 ,BAU] DESCRIBES ?IS PROCESS V]Y SIMPLY3 

',IF ! RATE ( SOCIAL ACCUMULATION RISES 7DUE TO CONSCI\S PRESSURE ON WAGES61 - ,R4,L47 ! PO9T WILL BE REA*$ :]E V>IABLE CAPITAL IS GR[+ FA/] ?AN ! POPULATION4 ,WE CALL ?IS /ATE ! /ATE ( OV]-ACCUMULATION4' 

,?AT IS ALL2 ,BAU] TELLS US NO MORE ?AN ?AT AB\T 'OV]-ACCUMULATION'4 ,ALL WE DISCOV] IS ?AT ! RATE ( ACCUMULATION 7I4E4 =MATION ( CAPITAL SUITABLE = 9VE/M5T7 'F9ALLY' 9CREASES TO ! PO9T :]E ! DEM& = LABOR IS GREAT] ?AN ! SUPPLY4 ,BUT :Y MU/ IT 'F9ALLY' REA* ?IS PO9T8 ,DOES IT FOLL[ A PHYSICAL LAW ( 9]TIA BECAUSE IT IS ALREADY 9 ! PROCESS ( RIS+8 ,LET US 5VISAGE :AT 9ITIAT$ ?IS RISE6 ,WAGES FELL UND] ! PRESSURE ( UNEMPLOYM5T1 RESULT+ 9 ! GR[? ( DISPOSABLE 787 CAPITAL4 ,?IS GR[? CAN ONLY CONT9UE UNTIL ALL WORK]S RETURN TO EMPLOYM5T1 & 9 ,BAU]'S /RANGE SOCIETY ?IS HAPP5S :5 WAGES >E AT !IR L[E/ PO9T4 ,BUT ONCE ! 5TIRE WORK+ POPULATION IS EMPLOY$1 WAGES /OP FALL+ EV5 9 ?IS /RANGE SOCIETY &1 AS 9 REAL LIFE1 !Y ACTUALLY />T TO RISE AGA94 ,& AS SOON AS !Y BEG9 TO RISE ! RATE ( 'ACCUMULATION' :I* - ACCORD+ TO ,BAU] - CAN ONLY GR[ FROM ?AT S\RCE1 MU/ /OP 9CREAS+4 ,H[1 !N1 CAN IT CONT9UE TO GR[ T[>DS ! 'F9AL' /AGE ( 'OV]-ACCUMULATION' ONCE ALL ! WORK]S >E EMPLOY$8 ,9 VA9 DO WE WAIT = AN ANSW]4 

,! ORIG9 ( OV]-ACCUMULATION REMA9S HIDD5 FROM US1 & SO DOES ! LA/ ACT ( ! P]=MANCE3 ! PROCESS BY :I* OV]-ACCUMULATION IS OV]COME & ! /ATE ( EQUILIBRIUM RE/OR$4 

',IF ! RATE ( ACCUMULATION IS TOO HI< 7( C\RSE3 9 RELATION TO ! LABOR =CE & ITS GR[? - ,R4,L47 !N ! RES]VE >MY IS SOON ABSORB$1 WAGES RISE1 ! RATE ( SURPLUS VALUE S9KS4' ,?IS RESULTS 9 AN EV5 MORE RAPID FALL 9 ! RATE ( PR(IT ?AN W\LD O!RWISE BE ! RESULT ( 9CREAS+ ORGANIC COMPOSITION ( CAPITAL4 ,?IS GIVES RISE TO 'A DISA/R\S CRISIS1 L>GE-SCALE UNEMPLOYM5T ( CAPITAL1 MASS DE/RUCTION ( VALUES & A SUDD5 SLUMP 9 ! RATE ( PR(IT'1 & ONCE AGA9 WE FALL BACK 9TO 'UND]-ACCUMULATION'1 S9CE ACCUMULATION DROPS & '! GR[? ( V>IABLE CAPITAL AGA9 FALLS BEH9D ! POPULATION GR[?'4.<#a#e.> 

,BUT :Y ON E>? DOES ! 'DISA/R\S CRISIS' OCCUR AT ! HEI<T ( OV]-ACCUMULATION8 ,= ,BAU]1 OV]-ACCUMULATION MEANS ONLY ?AT V>IABLE CAPITAL 9CREASES FA/] ?AN ! POPULATION4 ,MORE SIMPLY3 ! DEM& = LABOR IS GREAT] ?AN ! SUPPLY4 ,& ?AT CAUSES A CRISIS 9 9DU/RY & COMM]CE8 ,BAU] AVOIDS EXPLANATION1 BR++ A QUOTATION BY ,HILF]D+ TO HIS AID3 ! CRISIS OCCURS ':5 ! PREVI\SLY DESCRIB$ T5D5CIES ( A FALL+ RATE ( PR(IT GR[ /RONG] ?AN ! T5D5CIES :I* HAVE CAUS$ 9CREASES 9 PRICES & PR(ITS BECAUSE ( RIS+ DEM&'4 ,?IS QUOTATION ( ,HILF]D+'S EXPLA9S NO?+ AS F> AS ,BAU] IS CONC]N$1 S9CE IT IS NOT AN EXPLANATION1 BUT A COMPLICAT$ DESCRIPTION ( ! CRISIS - & IT BREAKS 9TO ,BAU]'S SPECULATIONS LIKE A FOX 9TO A *ICK5 RUN4 

,BAU] NEV] M5TIONS A RIS+ OR FALL+ 'DEM&' = COMMODITIES :I* MI<T CAUSE '9CREASES 9 PRICES & PR(ITS'4 ,BAU] ONLY SEES ! 9T]ACTION ( TWO FIGURES3 V>IABLE CAPITAL & ! PROLET>IAT1 I4E4 'POPULATION'4 ,HE NEV] M5TIONS DEM& = COMMODITIES OR M>KETS & !IR PROBLEMS4 ,OV]-ACCUMULATION IS NO?+ BUT A SURPLUS ( V>IABLE CAPITAL 7I4E4 DEM& = WORK]S7 9 RELATION TO ITS NATURAL GR[?4 ,?IS IS ! ONLY 'DEM&' ,BAU] DEALS )4 ,& ?AT %\LD CAUSE A 'DISA/R\S CRISIS'8 ,?IS TRICK WE WANT TO SEE6 

,C]TA9LY ALSO1 ON \R PLA9 E>? ! \TBREAK ( A CRISIS FOLL[S A SITUATION :]E DEM& = LABOR IS V]Y /RONG1 & WAGES RISE4 ,BUT 9 REALITY ?IS PH5OM5ON IS NOT ! CAUSE ( ! CRISIS1 BUT ONLY ITS '/ORMY PETREL'1 AS ,M>X CALLS IT 9 ! SECOND VOLUME ( ,CAPITAL2 IT IS A M]E SUBSIDI>Y FACTOR TO CIRCUM/ANCE1 ! RELATION%IP BETWE5 PRODUCTION & ! M>KET4 

,9 :ATEV] WAY ONE 'TRIES TO EXPLA9 P]IODIC CRISES !ORETICALLY1 9 REALITY !Y OBVI\SLY /EM FROM DISPROPORTIONS BETWE5 PRODUCTION1 I4E4 ! SUPPLY ( COMMODITIES1 & M>KET1 I4E4 DEM& = COMMODITIES4 ,! QUE/ION ( M>KETS DOES NOT EV5 EXI/ = ,BAU]3 HIS P]IODIC CRISES /EM FROM MALADJU/M5T BETWE5 DEM& = LABOR =CE1 & ! NATURAL MULTIPLICATION ( ! WORK+ CLASS4 ,BECAUSE WORK]S DO NOT REPRODUCE AS RAPIDLY AS ! 9CREAS+ DEM& ( CAPITAL REQUIRES1 A 'DISA/R\S CRISIS' OCCURS4 ,! P]IODIC LACK ( LABOR IS ! SOLE CAUSE ( ECONOMIC CRISES - ?AT1 9DE$1 IS ONE ( ! MO/ A/ONI%+ DISCOV]IES ( ,NATIONALOKONOMIE1.<#a#f.> NOT M]ELY S9CE ,M>X BUT S9CE ,WILLIAM ,PETTY4.<#a#g.> 

,N[ WE HAVE SE5 CAPITAL 9 ALL ITS PHASES1 & ,BAU] PROCE$S TO MAKE ?IS CONCLUSION ( H>MONY3 

',CAPITALI/ PRODUCTION C>RIES 9 ITSELF ! ME*ANISM TO BR+ UP ! RET>D$ RATE ( ACCUMULATION TO ! LEVEL ( POPULATION GR[?' 7I4E4 GR[? ( ! WORK+ POPULATION74 

,& AGA9 HE /RESSES3 

,LOOK+ AT ! CAPITALI/ WORLD ECONOMY AS A :OLE1 ! T5D5CY ( ACCUMULATION TO ADJU/ ) ! GR[? ( POPULATION APPE>S AS A CYCLE4 ,PROSP]ITY IS OV]-ACCUMULATION1 IT DE/ROYS ITSELF 9 ! CRISIS4 ,! FOLL[+ DEPRESSION IS A TIME ( UND]-ACCUMULATION2 IT RE/ORES ITSELF1 AS DEPRESSION ITSELF CREATES ! CONDITIONS = A RETURN TO PROSP]ITY4 ,! P]IODIC RETURN TO PROSP]ITY1 CRISIS & DEPRESSION IS ! EMPIRICAL EXPRESSION ( ! FACT ?AT ! CAPITALI/ MODE ( PRODUCTION AUTOMATICALLY OV]COMES OV]- & UND]-ACCUMULATION1 & ACCUMULATION ( CAPITAL IS AGA9 & AGA9 ADJU/$ TO ! GR[? ( POPULATION4.<#a#h.> 

,!RE CAN NO LONG] BE ANY MI/AKE4 ,BAU]'S 'ME*ANISM' RE/S SIMPLY ON ! FOLL[+3 AT ! C5T] ( CAPITALI/ WORLD ECONOMY IS ! WORK+ CLASS4 ,ECONOMIC LIFE REVOLVES >\ND ! AXIS ( ! WORK+ POPULATION & ITS NATURAL GR[?4 ,AT ONE PO9T V>IABLE CAPITAL IS TOO SMALL TO EMPLOY ALL PROLET>IANS1 & SO IT 9ITIATES GR[? ?R\< L[] WAGES4 ,AT ANO!R TIME CAPITAL IS OV]-EXT5D$ & CANNOT F9D SUFFICI5T LABOR2 IT DE/ROYS ITSELF 9 A CRISIS4 ,9 EA* CASE ! 5TIRE MOVEM5T ( PRODUCTION IS A CON/ANT EF=T TO ADJU/ TO ! NUMB] ( WORK]S & !IR NATURAL REPRODUCTION4 

,?AT IS ! QU9TESS5CE ( ,BAU]'S 'ME*ANISM'1 HIS COMPLICAT$ MA!MATICAL TRICKS & EXPLANATIONS4 

,! READ]1 WELL-READ 9 ,M>XISM1 MAY ALREADY GUESS :AT ,COP]NICAN EF=T HIDES BEH9D ,BAU]'S !ORY ( ACCUMULATION4 ,BUT BE=E WE CAN FULLY APPRECIATE ?IS EF=T1 WE MU/ SEE H[ ,BAU] CAN EASILY EXPLA9 ANY FEATURE ( CAPITALI/ WORLD ECONOMY3 

,! T5D5CY ( ADJU/M5T ( ACCUMULATION TO 9CREASES 9 POPULATION1 CONTROLS 9T]NATIONAL RELATIONS4 ,C\NTRIES ) A CON/ANT OV]-ACCUMULATION 9VE/ A L>GE & GR[+ P>T ( !IR ANNUAL SURPLUS VALUE 9 =EIGN L&S4 ,EXAMPLE3 ,FRANCE & ,5GL&4 7,G]MANY TOO1 ,I HOPE - ,R4,L47 ,L&S ) CON/ANT UND]-ACCUMULATION DRAW CAPITAL FROM =EIGN C\NTRIES & PROVIDE !M ) LABOR4 ,EXAMPLE3 ! AGR>IAN C\NTRIES ( ,EA/]N ,EUROPE4.<#a#i.> 

,H[ WELL IT ALL WORKS1 CLE> & TO ! PO9T4 ,ONE CAN ALMO/ SEE ! SMIL+ SATISFACTION ) :I* ,BAU]1 ) ! HELP ( HIS NEWLY WON PR9CIPLE1 SOLVES1 LIKE A *ILDR5'S GAME1 ! MO/ 5TANGL$ PROBLEMS4 ,LET US 5T] 9TO ?IS GAME BY T\*+ ON A FEW PO9TS4 

,!RE >E C\NTRIES ') CON/ANT OV]-ACCUMULATION' & C\NTRIES ') CON/ANT UND]-ACCUMULATION'4 ,BUT :AT IS OV]-ACCUMULATION8 ,:AT IS UND]-ACCUMULATION8 ,! ANSW] FOLL[S ON ! NEXT PAGE3 'PROSP]ITY IS OV]-ACCUMULATION1 UND]-ACCUMULATION IS DEPRESSION'4 ,!RE=E !RE >E C\NTRIES ) CON/ANT PROSP]ITY3 ,5GL&1 ,FRANCE1 ,G]MANY2 & /ATES ) CON/ANT DEPRESSION1 ! AGR>IAN C\NTRIES ( ,EA/]N ,EUROPE4 ,IS IT NOT WOND]FUL8 ,SECOND TRY3 :AT IS ! CAUSE ( UND]-ACCUMULATION8 ,! ANSW] IS ON ! PREVI\S PAGE3 ',! PROGRESS T[>DS HI<] ORGANIC COMPOSITION 7SIMPLE3 TE*NOLOGICAL PROGRESS7 LEADS TO UND]-ACCUMULATION'4 ,C\NTRIES ) CON/ANT UND]-ACCUMULATION !RE=E MU/ BE ! TE*NOLOGICALLY MO/ ADVANC$-! AGR>IAN C\NTRIES ( ,EA/]N ,EUROPE4 ,C\NTRIES ) CON/ANT OV]-ACCUMULATION MU/ BE ! C\NTRIES ) ! SL[E/ & WEAKE/ PROGRESS3 ,5GL&1 ,FRANCE & ,G]MANY4 ,WOND]FUL1 IS IT NOT8 

,! CR[N+ PO9T ( ALL SEEMS TO BE ,NOR? ,AM]ICA4 ,IT HAS1 AT ! SAME TIME1 'CON/ANT OV]-ACCUMULATION' & 'CON/ANT UND]-ACCUMULATION'1 5]GETIC TE*NOLOGICAL PROGRESS & SL[E/ PROGRESS1 CON/ANT PROSP]ITY & CON/ANT DEPRESSION4 ,IT DRAWS -:AT A MIRACLE - CAPITAL & LABOR =CE1 SIMULTANE\SLY & ALL ! TIME1 FROM O!R C\NTRIES 444 

  

,LET US CONFRONT ,BAU]'S 'ME*ANISM' ) ,M>X4 

,! QU9TESS5CE ( ,BAU]'S !ORY IS ! ADJU/M5T ( CAPITAL TO ! POPULATION & ITS GR[?4 ,OV]-ACCUMULATION MEANS = ,BAU] ?AT CAPITAL GR[S FA/] ?AN DOES ! PROLET>IAT2 UND]-ACCUMULATION - ?AT IT GR[S SL[]4 ,BUT :AT DO WE F9D 9 ,M>X8 ,BAU] 9CLUDES A P>AGRAPH FROM ! ?IRD VOLUME ( ,CAPITAL1 :]E ,M>X DEALS ) OV]-ACCUMULATION1 9 ORD] TO GIVE ! IMPRESSION ?AT HIS [N !ORY IS SIMPLY AN 'UNOBJECTIONABLE' 9T]PRETATION ( ,M>X3 

,AS SOON AS CAPITAL W\LD1 !RE=E1 HAVE GR[N 9 SU* A RATIO TO ! LABOR+ POPULATION ?AT NEI!R ! ABSOLUTE WORK+-TIME SUPPLI$ BY ?IS POPULATION1 NOR ! RELATIVE SURPLUS WORK+-TIME1 C\LD BE EXP&$ ANY FUR!R 7?IS LA/ W\LD NOT BE FEASIBLE AT ANY RATE 9 ! CASE :5 ! DEM& = LABOR W]E SO /RONG ?AT !RE W]E A T5D5CY = WAGES TO RISE72 AT A PO9T1 !RE=E :5 ! 9CREAS$ CAPITAL PRODUC$ JU/ AS MU*1 OR EV5 LESS1 SURPLUS VALUE ?AN IT DID BE=E ITS 9CREASE1 !RE W\LD BE ABSOLUTE OV]-PRODUCTION ( CAPITAL2 I4E4 ! 9CREAS$ CAPITAL ,C "4 8,C W\LD PRODUCE NO MORE1 OR EV5 LESS1 PR(IT ?AN CAPITAL ,C BE=E ITS EXPANSION BY 8,C4 ,9 BO? CASES !RE W\LD BE A /EEP & SUDD5 FALL 9 ! G5]AL RATE ( PR(IT1 BUT ?IS TIME DUE TO A *ANGE 9 ! COMPOSITION ( CAPITAL NOT CAUS$ BY ! DEVELOPM5T ( ! PRODUCTIVE =CES1 BUT RA!R BY A RISE 9 ! MONEY VALUE ( ! V>IABLE CAPITAL 7BECAUSE ( 9CREAS$ WAGES7 & ! CORRESPOND+ R$UCTION 9 ! PROPORTION ( SURPLUS LABOR TO NECESS>Y LABOR4.<#b.> 

,BAU] ADDS TO ?IS QUOTATION3 ',?IS PO9T IS ! ABSOLUTE LIMIT ( ACCUMULATION4 ,ONCE IT IS REA*$1 ! ADJU/M5T ( ACCUMULATION TO GR[? ( POPULATION BR+S AB\T A 0DISA/R\S CRISIS01' ETC4 ,HE ?US MAKES ! AV]AGE READ] ASSUME ?AT ,M>X'S & HIS [N !ORY >E BASICALLY ! SAME1 ONLY ,BAU] SAYS IT MORE CONCISELY1 US+ HIS [N WORDS4 

,IMM$IATELY BE=E ! PASSAGE QUOT$ BY ,BAU] ,M>X SAYS3 ',?IS PLE?ORA ( CAPITAL >ISES FROM ! SAME C\RSES AS ?OSE :I* CALL =? RELATIVE OV]-POPULATION1 & IS1 !RE=E1 A PH5OM5ON SUPPLEM5T+ ! LATT]1 AL?\< !Y /& AS OPPOSITE POLES - UNEMPLOY$ CAPITAL AT ONE POLE & UNEMPLOY$ WORK] POPULATION AT ! O!R4'.<#b#a.> ,M>X IS SAY+ QUITE ! OPPOSITE TO ,BAU]3 SURPLUS ( CAPITAL & SURPLUS ( WORK+ POPULATION BO? AT ! SAME TIME - RESULT FROM ! SAME1 ?IRD CIRCUM/ANCE4 ,9 ! SAME *APT] FROM :I* ,BAU] TOOK HIS QUOTATION ON PP4#b#d#f-#g1 ,M>X SAYS3 

,IT IS NO CONTRADICTION ?AT ?IS OV]-PRODUCTION ( CAPITAL IS ACCOMPANI$ BY MORE OR LESS CONSID]ABLE RELATIVE OV]-POPULATION4 ,! CIRCUM/ANCES :I* 9CREAS$ ! PRODUCTIV5ESS ( LABOR1 AUGM5T$ ! MASS ( PRODUC$ COMMODITIES1 EXP&$ M>KETS1 ACCEL]AT$ ACCUMULATION ( CAPITAL BO? 9 T]MS ( ITS MASS & ITS VALUE1 & L[]$ ! RATE ( PR(IT - !SE SAME CIRCUM/ANCES HAVE ALSO CREAT$1 & CONT9U\SLY CREATE1 A RELATIVE OV]-POPULATION1 AN OV]-POPULATION ( LABOR]S NOT EMPLOY$ BY ! SURPLUS-CAPITAL [+ TO ! L[ DEGREE ( EXPLOITATION AT :I* ALONE !Y C\LD BE EMPLOY$1 OR AT LEA/ [+ TO ! L[ RATE ( PR(IT :I* !Y W\LD YIELD AT ! GIV5 DEGREE ( EXPLOITATION4.<#b#b.> 

,ON ! SAME PAGE ,M>X SAYS F>!R ON 

,IF CAPITAL IS S5T ABROAD1 ?IS IS NOT DONE BECAUSE IT ABSOLUTELY C\LD NOT BE APPLI$ AT HOME1 BUT BECAUSE IT CAN BE EMPLOY$ AT A HI<] RATE ( PR(IT 9 A =EIGN C\NTRY4 ,BUT SU* CAPITAL IS ABSOLUTE EXCESS CAPITAL = ! EMPLOY$ LABOR+ POPULATION & = ! HOME C\NTRY 9 G5]AL4 ,IT EXI/S AS SU* ALONGSIDE ! RELATIVE OV]-POPULATION1 & ?IS IS AN ILLU/RATION ( H[ BO? ( !M EXI/ SIDE BY SIDE1 & MUTUALLY 9FLU5CE ONE ANO!R4.<#b#c.> 

,?AT IS CLE> 5\<4 ,& :AT IS ! TITLE ( ?IS *APT] ( ,M>X8 ,EXCESS ,CAPITAL & ,EXCESS ,POPULATION 7,CAPITAL1 ,VOL4,I,I,I1 P4#b#d#e74 

,& !RE ,BAU] HAS ! IDEA ( TAK+ A QUOTATION FROM ?AT *APT] & ADD+ ON A S5T5CE 9 ORD] TO GIVE ! IMPRESSION HE WAS SIMPLY ILLU/RAT+ ,M>X'S ?\<TS4 ,?IS *APT] HEAD+ ALONE IS /RONG 5\< TO MAKE ,BAU]'S $IFICE CRUMBLE4 ,BAU]'S 'OV]-ACCUMULATION' & ,M>X'S OV]-ACCUMULATION >E TWO QUITE DIFF]5T ECONOMIC T]MS1 9 FACT OPPOSITES4 

,BAU]'S OV]-ACCUMULATION IS ID5TICAL TO PROSP]ITY1 ! HI<E/ DEM& = LABOR1 ! ABSORPTION ( ! 9DU/RIAL RES]VE >MY4 ,M>X'S EXCESS CAPITAL IS EQUIVAL5T TO EXCESS ( WORK]S1 HI<E/ UNEMPLOYM5T2 OV]-ACCUMULATION MEANS CRISIS & DEPRESSION4 ,BAU] DECL>ES3 P]IODICALLY !RE IS TOO MU* CAPITAL1 BECAUSE !RE >E TOO MANY WORK]S4 ,M>X SAYS3 P]IODICALLY !RE IS TOO MU* CAPITAL & AS A RESULT ( ?AT TOO MANY WORK]S4 ,9 RELATION TO :AT IS !RE 'TOO MU*' ( BO?8 ,9 RELATION TO ! M>KET UND] 'NORMAL' CONDITIONS4 ,AS ! M>KET = CAPITALI/ COMMODITIES P]IODICALLY GR[S TOO SMALL1 CAPITAL MU/ REMA9 UNEMPLOY$ & CONSEQU5TLY P>T ( ! LABOR =CE AS WELL4 ,! CONNECTIONS ( ECONOMIC CAUSES & EFFECTS >E AS FOLL[S3 ! M>KET = CAPITALI/ GOODS IS ! />T+ PO9T AT ALL TIMES4 ,ON ?IS & ITS MOVEM5TS ! AM\NT ( V>IABLE CAPITAL DEP5DS4 ,& ON ?AT DEP5DS ! NUMB] ( UNEMPLOY$ WORK]S4 ,9 ! ?IRD VOLUME ( ,CAPITAL ,M>X CL>IFIES ?AT REPEAT$LY4 ,?US ON P4#b#d1 :]E HE DEALS ) ! '9T]NAL CONTRADICTIONS' ( CAPITALI/ PRODUCTION :I* ADJU/S ITSELF '?R\< EXPANSION ( ! \TLY+ FIELD ( PRODUCTION'4 ,BAU] ALSO CITES '! EXPANSION ( ! PRODUCTION FIELD' AS ESS5TIAL = ACCUMULATION1 & ADDS HIS IDEE FIXE3 ',! FIELD ( PRODUCTION IS EXP&$ BY ! GR[? ( POPULATION4'.<#b#d.> ,BUT ,M>X CLE>LY /ATES :AT HE CONSID]S TO BE 'EXPANSION ( ! \T] FIELD ( PRODUCTION'4 ,! 'M>KET MU/1 !RE=E1 BE CONT9UALLY EXP&$'4.<#b#e.> ,AGA9 ON P4#b#e1 AFT] DESCRIB+ ! CRISIS & ITS RECOV]Y3 ',& ?US ! CYCLE W\LD RUN ITS C\RSE ANEW4 ,P>T ( ! CAPITAL1 DEPRECIAT$ BY ITS FUNCTIONAL /AGNATION1 W\LD RECOV] ITS OLD VALUE4 ,= ! RE/ ! SAME VICI\S CIRCLE W\LD BE DESCRIB$ ONCE MORE UND] EXP&$ CONDITIONS ( PRODUCTION1 ) AN EXP&$ M>KET & 9CREAS$ PRODUCTIVE =CES4' 

,& AS WE SAW1 ON PP4#b#e-#e#a3 

,! CIRCUM/ANCES :I* 9CREAS$ ! PRODUCTIV5ESS ( LABOR1 AUGM5T$ ! MASS ( PRODUC$ COMMODITIES1 EXP&$ M>KETS1 ACCEL]AT$ ACCUMULATION ( CAPITAL BO? 9 T]MS ( ITS MASS & ITS VALUE & L[]$ ! RATE ( PR(IT - !SE SAME CIRCUM/ANCES HAVE ALSO CREAT$ & CONT9U\SLY CREATE1 A RELATIVE OV]-POPULATION1 AN OV]-POPULATION ( LABOR]S NOT EMPLOY$ BY ! SURPLUS-CAPITAL 444 

,IT IS CLE> ?AT 'EXPANSION ( ! \TLY+ FIELD ( PRODUCTION' MEANS ! M>KET & NOT ! GR[? ( ! WORK+ POPULATION4 ,! EXPANSION ( ! M>KET IS ACCOMPANI$ BY EXCESS ( WORK]S1 9CREASE ( ! >MY ( ! UNEMPLOY$1 %R9K+ ( ! PUR*AS+ P[] ( ! WORK+ CLASS4 

,AGA91 ON PP4#b#e#a-#b3 

,TO SAY ?AT !RE IS NO G5]AL OV]-PRODUCTION1 BUT RA!R A DISPROPORTION )9 ! V>I\S BRAN*ES ( PRODUCTION .<!N -.> ,IT FUR!RMORE AM\NTS TO DEM&+ ?AT C\NTRIES 9 :I* CAPITALI/ PRODUCTION IS NOT DEVELOP$1 %\LD CONSUME & PRODUCE AT A RATE :I* SUITS ! C\NTRIES ) CAPITALI/ PRODUCTION4 

,H]E ,M>X LIT]ALLY /ATES ?AT ! CRISIS DOES NOT RESULT FROM DISPROPORTIONALITY 9 DISPOSABLE CAPITAL & DISPOSABLE LABOR =CE1 BUT FROM ! DISPROPORTIONALITY ( EX*ANGE BETWE5 CAPITALI/ & NON-CAPITALI/ C\NTRIES4 ,HE EV5 CLAIMS ?IS EX*ANGE TO BE ! NATURAL BASIS = ACCUMULATION4 ,& A FEW L9ES FUR!R ON3 ',H[ C\LD !RE O!RWISE BE A %ORTAGE ( DEM& = ! V]Y COMMODITIES :I* ! MASS ( ! PEOPLE LACK1 & H[ W\LD IT BE POSSIBLE = ?IS DEM& TO BE S\<T ABROAD1 9 =EIGN M>KETS1 TO PAY ! LABOR]S AT HOME ! AV]AGE AM\NT ( NECESSITIES ( LIFE8' ,H]E HE /ATES V]Y CLE>LY ?AT ! RATE ( EMPLOYM5T 9 CAPITALI/ C\NTRIES DEP5DS ON ! POSSIBILITY ( F9D+ '=EIGN M>KETS' = CAPITALI/ COMMODITIES4 

,ALL ?IS SAYS 5\< AB\T ,BAU] US+ QUOTATIONS FROM ,VOL4,I,I,I4 ,BUT HE GOES ON TO QUOTE FROM ,!ORIES ( ,SURPLUS ,VALUE1 ,VOL4,I,I1 P4#d#g#g2 ',POPULATION 9CREASE APPE>S AS ! BASIS ( ACCUMULATION AS A CONT9U\S PROCESS4' ,C\LD ?AT BE ,BAU]'S !ORY 9 A NUT%ELL8 ,WELL1 AGA91 HE JU/ PICK$ A RAIS9 \T ( ! CAKE4 ,! :OLE PASSAGE READS RA!R DIFF]5TLY4 ,M>X 9VE/IGATES H]E ! CONDITIONS ( ! ,TRANS=MATION ( ,REV5UE 9TO ,CAPITAL1 I4E4 ! PRODUCTIVE 9VE/M5T ( SURPLUS VALUE4 ,HE EXPLA9S ?AT ! ADDITIONAL PORTION ( CAPITAL MU/ BE CONV]T$ 9TO ONE L>G] P>T ( CON/ANT CAPITAL & ONE SMALL] P>T ( V>IABLE CAPITAL4 

,TO BEG9 )1 A PORTION ( ! SURPLUS VALUE 7& ! CORRESPOND+ SURPLUS PRODUCT 9 ! =M ( MEANS ( SUBSI/5CE7 HAS TO BE TRANS=M$ 9TO V>IABLE CAPITAL1 ?AT IS TO SAY1 NEW LABOR HAS TO BE B\<T ) IT4 ,?IS IS ONLY POSSIBLE IF ! NUMB] ( LABOR]S GR[S OR IF ! LABOR TIME DUR+ :I* !Y WORK IS PROLONG$4.<#b#f.> 

,! LATT] HAPP5S :5 WORK]S :O >E ONLY EMPLOY$ = P>T ( ! TIME BECOME FULLY EMPLOY$1 OR :5 ! WORK+ DAY IS EXT5D$ BEYOND ITS NORMAL L5G?4 ,ALSO1 ADDITIONAL /RATA ( ! PROLET>IAT1 :O HAVE NOT YET WORK$ PRODUCTIVELY1 MAY BE REQUIR$3 WOM51 *ILDR51 PAUP]S4 

,F9ALLY 7SAYS ,M>X71 TOGE!R ) ! GR[? ( ! POPULATION 9 G5]AL1 ! LABOR+ POPULATION CAN GR[ ABSOLUTELY4 ,IF ACCUMULATION IS TO BE A /EADY CONT9U\S PROCESS1 !N ?IS ABSOLUTE GR[? 9 POPULATION - AL?\< IT MAY BE DECREAS+ 9 RELATION TO ! CAPITAL EMPLOY$ - IS A NECESS>Y CONDITION4.<#b#g.> 

,& N[ COMES ! LITTLE S5T5CE EXTRACT$ BY ,BAU]3 

',AN 9CREAS+ POPULATION APPE>S TO BE ! BASIS ( ACCUMULATION AS A CONT9U\S PROCESS4' 

,?IS IS :AT ,M>X SAYS ON ! V]Y SAME PAGE ( ,!ORIES ( ,SURPLUS ,VALUE AS ,BAU] BR+S ON TO ! FIELD AS A CLASSIC WITNESS = HIS 'ME*ANISM'4 ,IF !RE IS ANY?+ ! READ] MU/ IMM$IATELY GRASP FROM ?IS QUOTATION1 IT IS ?AT ,M>X'S REASON+ IS AS FOLL[S3 IF ACCUMULATION1 I4E4 EXPANSION ( PRODUCTION1 IS TO TAKE PLACE1 !N ADDITIONAL LABOR IS ALSO NE$$4 ,?US !RE CAN BE NO CON/ANT EXPANSION ( PRODUCTION )\T AN 9CREAS+ WORK+ POPULATION4 ,EV5 ! SIMPLE/ WORK] CAN UND]/& ?AT4 ,9 ?IS S5SE1 'AN 9CREAS+ POPULATION APPE>S TO BE ! BASIS ( ACCUMULATION'4 

,BUT ,BAU]'S QUE/ION WAS NOT :E!R AN 9CREASE 9 ! WORK+ POPULATION WAS NE$$ = ACCUMULATION 7NO ONE EV] D5I$ ?AT71 BUT :E!R IT IS A SUFFICI5T CONDITION4 ,M>X SAYS3 ACCUMULATION CANNOT TAKE PLACE )\T AN 9CREAS+ POPULATION4 ,BAU] *ANGES ?IS TO READ3 AN 9CREAS+ WORK+ POPULATION IS SUFFICI5T = ACCUMULATION TO TAKE PLACE4 ,H]E1 ,M>X PRESUPPOSES ACCUMULATION1 HE ASSUMES ! POSSIBILITY ( AN EASY M>KET2 :AT HE IS 9VE/IGAT+ >E ! =MS 9 :I* ACCUMULATION OCCURS1 & !RE HE F9DS ?AT ! 9CREAS+ LABOR =CE IS1 AMONG O!R ?+S1 NECESS>Y4 ,BAU] TAKES ! 9CREASE 9 ! NUMB] ( WORK]S AS A GIV5 FACTOR1 ON ACC\NT ( :I* & ACCORD+ TO :I* PRODUCTION EXP&S ) NO FUR!R CONC]N AB\T ! M>KET6 ,?IS IS ! SAME 9V]SION ( ,M>X'S ?\<T AS 9 ! CLASSIC QUOTATIONS FROM ! ?IRD VOLUME ( ,CAPITAL4 

,BUT P]HAPS WE >E READ+ TOO MU* 9TO ,M>X'S QUOTATION2 P]HAPS ,BAU] C\LD GIVE ,M>X'S WORDS HIS [N 9T]PRETATION1 OR %ALL WE SAY MIS9T]PRETATION8 ,& YET IT IS QUITE PUZZL+ H[ ANYBODY CAN MISUND]/& ,M>X ON ?IS PO9T1 PROVID+ !Y HAVE READ ! *APT] PROP]LY4 ,= A FEW PAGES F>!R ON HE >TICULATES HIS BASIC ?\<T & ! REAL PROBLEM ( HIS ANALYSIS 9 ! FOLL[+ CLE> WORDS3 

',! QUE/ION HAS N[ TO BE =MULAT$ ?US3 ASSUM+ G5]AL ACCUMULATION 7,M>X'S EMPHASIS71 9 O!R WORDS1 ASSUM+ ?AT CAPITAL IS ACCUMULAT$ TO SOME EXT5T 9 ALL BRAN*ES ( PRODUCTION - ?IS IS 9 FACT A CONDITION ( CAPITALI/ PRODUCTION 444 - :AT >E ! CONDITIONS ( ?IS G5]AL ACCUMULATION1 :AT DOES IT AM\NT TO8' 

,& HE ANSW]S3 ! CONDITIONS >E '?AT LABOR P[] WAS B\<T ) ONE P>T ( ! MONEY CAPITAL & MEANS ( PRODUCTION ) ! O!R'4.<#b#h.> 

,& AT ! SAME TIME1 TO CLE> UP ANY D\BT1 AS IF HE HAD A PREMONITION ( HIS 'EXP]T' PUPILS1 HE ADDS3 

,WE DISREG>D H]E ! CASE 9 :I* MORE CAPITAL IS ACCUMULAT$ ?AN CAN BE 9VE/$ 9 PRODUCTION1 & = EXAMPLE LIES FALL[ 9 ! =M ( MONEY AT ! BANK4 ,?IS RESULTS 9 LOANS ABROAD1 ETC41 9 %ORT SPECULATIVE 9VE/M5TS4 ,NOR DO WE CONSID] ! CASE 9 :I* IT IS IMPOSSIBLE TO SELL ! MASS ( COMMODITIES PRODUC$1 CRISES1 ETC4 ,?IS BELONGS TO ! SECTION ON COMPETITION4 ,H]E WE EXAM9E ONLY ! =MS ( CAPITAL 9 ! V>I\S PHASES ( ITS PROCESS1 ASSUM+ ?R\<\T ?AT ! COMMODITIES >E SOLD AT !IR VALUE4.<#b#i.> 

,?US1 ,M>X ASSUMES ! EXPANSION ( ! M>KET1 ! POSSIBILITY ( ACCUMULATION1 & ONLY 9VE/IGATES :AT FOLL[S FROM ?AT4 ,ONE RESULT IS ! EMPLOYM5T ( NEW WORK]S1 & = ?AT AN 9CREASE 9 ! WORK+ POPULATION IS NECESS>Y4 ,FROM ?IS ,BAU] D$UCES3 9 ORD] = ACCUMULATION TO TAKE PLACE1 IT SUFFICES ?AT ! WORK+ POPULATION GR[S1 9DE$ ACCUMULATION TAKES PLACE BECAUSE ! WORK+ POPULATION GR[S4 ,! OBJECTIVE PURPOSE & AIM ( ACCUMULATION & ITS 'ME*ANISM' IS TO ADJU/ TO ! GR[? 9 ! WORK+ POPULATION4 

,MAN HAS TO BREA! AIR AS A CONDITION ( HIS EXI/5CE4 ,CONCLUSION A LA ,BAU]3 MAN LIVES ON AIR1 HE LIVES 9 ORD] TO BREA! AIR1 HIS 5TIRE LIFE PROCESS IS NO?+ BUT ! 'AUTOMATIC' ADJU/M5T ( HIS BODILY ME*ANISM TO 9HALATION & EXHALATION4 ,SU* >E ! WOND]FUL RESULTS REA*$ BY RUNN+ AB\T ) ONE'S /ICK 9 ! AIR ( AB/RACT /UPIDITY6 

,BUT ! FUN 5DS H]E1 = ! MATT] IS ANY?+ BUT FUNNY4 ,HE IS NOT DEAL+ ) LITTLE ME & MY BOOK ANY MORE1 BUT ) ! ELEM5T>Y CONCEPTS ( ,M>X'S [N TEA*+4 ,WE CAN N[ LEAVE ! /EEP & MI/Y HEI<TS ( ! ?IRD VOLUME & ,!ORIES ( ,SURPLUS ,VALUE :I*1 ) A FEW EXCEPTIONS1 >E UN=TUNATELY H>DLY KN[N TO ! ,M>XI/ PUBLIC4 ,WE RETURN TO ! FIR/ VOLUME ( ,CAPITAL1 :I* HAS SO F> =M$ ! ACTUAL ECONOMIC BASIS ( SOCIAL DEMOCRACY4 ,H]E EV]Y READ] :O IS FAMILI> ) ! FIR/ VOLUME ( ,M>X'S MAGNUM OPUS CAN EASILY EXAM9E ,BAU]'S !ORY = HIMSELF3 HE NE$ ONLY OP5 ! TW5TY-FIF? *APT] TO READ ON P4#f#c#g3 

',= MOD]N 9DU/RY ) ITS DEC5NIAL CYCLES 444 ?AT W\LD 9DE$ BE A BEAUTIFUL LAW1 :I* PRET5DS TO MAKE ! ACTION ( CAPITAL DEP5D5T ON ! ABSOLUTE V>IATION ( ! POPULATION1 9/EAD ( REGULAT+ ! DEM& & SUPPLY ( LABOR BY ! ALT]NATE EXPANSION & CONTRACTION ( CAPITAL1'.<#c.> I4E4 ACCORD+ TO ITS REQUIREM5TS4 ,M>X MEANS ! OLD 'DOGMA' ( B\RGEOIS ECONOMY2 ! SO-CALL$ WAGE FUND4 ,IT TOOK ! AVAILABLE SOCIAL CAPITAL AS A QUITE SPECIFIC1 GIV5 AM\NT & MADE ! EMPLOY$ WORK]S DEP5D5T ON !IR NATURAL GR[?4 ,M>X POLEMICIZES AGA9/ ?IS 'DOGMA' 9 DETAIL1 & 9 ! PROCESS ACCID5TALLY DELIV]S ONE REBUKE AFT] ANO!R TO HIS 'EXP]T' PUPIL4 

,ON P4#f#d HE TEA*ES HIM3 

,! DEM& = LABOR IS NOT ID5TICAL ) 9CREASE ( CAPITAL1 NOR SUPPLY ( LABOR ) 9CREASE ( ! WORK+ CLASS4 ,IT IS NOT A CASE ( TWO 9DEP5D5T =CES WORK+ ON ONE ANO!R4 ,LES DES SONT PIPES4 ,CAPITAL WORKS ON BO? SIDES AT ! SAME TIME4 ,IF ITS ACCUMULATION1 ON ! ONE H&1 9CREASES ! DEM& = LABOR1 IT 9CREASES ON ! O!R ! SUPPLY ( LABOR]S BY ! 'SETT+ FREE' ( !M 444.<#c#a.> 

,9 ,BAU]'S 'ME*ANISM' ! 9DU/RIAL RES]VE >MY DEVELOPS AS A CONSEQU5CE ( RET>D$1 TOO SL[1 ACCUMULATION4 ,HE SAYS CATEGORICALLY3 ',! FIR/ EFFECT ( UND]-ACCUMULATION IS ! =MATION ( AN 9DU/RIAL RES]VE >MY4'.<#c#b.> ,! SMALL] ! CAPITAL ACCUMULATION1 ! L>G] ! RES]VE >MY4 ,?IS IS :AT ,BAU] SAYS4 ,F\R PAGES AFT] ! ABOVE-CIT$ QUOTATION ,M>X TEA*ES HIM3 

,! GREAT] ! SOCIAL WEAL?1 ! FUNCTION+ CAPITAL1 ! EXT5T & 5]GY ( ITS GR[?1 &1 !RE=E1 ! ABSOLUTE MASS ( ! PROLET>IAT & ! PRODUCTIV5ESS ( ITS LABOR1 ! GREAT] IS ! 9DU/RIAL RES]VE >MY4 ,! SAME CAUSES :I* DEVELOP ! EXPANSIVE P[] ( CAPITAL1 DEVELOP ALSO ! LABOR-P[] AT ITS DISPOSAL4.<#c#c.> 

,ON ! SAME PAGE ,M>X SAYS S>CA/ICALLY3 

',! FOLLY IS N[ PAT5T ( ! ECONOMIC WISDOM ?AT PREA*ES TO ! LABOR]S ! ACCOMMODATION ( !IR NUMB] TO ! REQUIREM5TS ( CAPITAL4 ,! ME*ANISM ( CAPITALI/ PRODUCTION & ACCUMULATION CON/ANTLY EFFECTS ?IS ADJU/M5T4'.<#c#d.> 

,:I* IS ! GREAT] 'FOLLY'3 ! OLD B\RGEOIS ONE1 :I* PREA*ES TO ! WORK]S TO ADJU/ !IR REPRODUCTION TO CAPITAL1 OR ! NEW ',AU/RO-,M>XI/' ONE1 :I* TELLS ! WORK]S ?AT CAPITAL ALWAYS ADJU/S TO !IR NUMB]S8 ,I BELIEVE ! LATT] IS WORSE4 ,! OLD 'FOLLY' WAS ONLY ! 9COMPREH5D+ SUBJECTIVE REFLECTION ( REAL RELATIONS1 :ILE ! NEW ONE TURNS REALITY UPSIDE D[N4 

,?R\<\T ! *APT] DEAL+ ) ! LABOR+ POPULATION & ITS GR[? ,M>X TALKS AB\T 'REQUIREM5TS' ( CAPITAL4 ,DEM& = LABOR1 WAGE LEVELS1 PROSP]ITY OR CRISIS ALL DEP5D ON !SE4 ,:AT >E !SE 'REQUIREM5TS' :I* ,M>X M5TIONS ALL ! TIME & ,BAU] NOT ONCE 9 HIS 5TIRE 'ME*ANISM'8 

,9 ! SAME *APT] ,M>X TALKS CONT9U\SLY AB\T CAPITAL'S 'SUDD5 EXPANSIONS'1 TO :I* HE ATTRIBUTES PRIM>Y IMPORTANCE 9 ! MOVEM5T ( CAPITAL ACCUMULATION AS WELL AS ?AT ( ! WORK+ POPULATION4 ,9DE$1 ! SUDD5 & LIMITLESS ABILITY TO EXP& IS1 ACCORD+ TO ,M>X1 A *>ACT]I/IC FEATURE ( MOD]N 9DU/RIAL DEVELOPM5T4 ,:AT >E WE TO UND]/& BY !SE 'SUDD5 EXPANSIONS' ( CAPITAL1 :I* W]E SO IMPORTANT = ,M>X & :I* ,BAU] DOES NOT EV5 M5TION8 

,M>X GIVES A CLE> ANSW] TO BO? QUE/IONS AT ! BEG9N+ ( ! SAME *APT] .<ON P4#f#a#c.>3 

'444 S9CE LA/LY1 UND] SPECIAL /IMULUS TO 5RI*M5T1 SU* AS ! OP5+ ( NEW M>KETS1 OR ( NEW SPH]ES = ! \TLAY ( CAPITAL 9 CONSEQU5CE ( NEWLY DEVELOP$ SOCIAL WANTS1 ETC41 ! SCALE ( ACCUMULATION MAY BE SUDD5LY EXT5D$ 444'.<#c#e.> 

,& AGA9 9 MORE DETAIL1 ON P4#f#c#b3 

,) ACCUMULATION1 & ! DEVELOPM5T ( ! PRODUCTIV5ESS ( LABOR ?AT ACCOMPANIES IT1 ! P[] ( SUDD5 EXPANSION ( CAPITAL GR[S ALSO2 IT GR[S1 NOT M]ELY BECAUSE ! ELA/ICITY ( ! CAPITAL ALREADY FUNCTION+ 9CREASES1 NOT M]ELY BECAUSE ! ABSOLUTE WEAL? ( SOCIETY EXP&S1 ( :I* CAPITAL ONLY =MS AN ELA/IC P>T1 NOT M]ELY BECAUSE CR$IT1 UND] EV]Y SPECIAL /IMULUS1 AT ONCE PLACES AN UNUSUAL P>T ( ?IS WEAL? AT ! DISPOSAL ( PRODUCTION 9 ! =M ( ADDITIONAL CAPITAL 444 ,! MASS ( SOCIAL WEAL?1 OV]FL[+ ) ! ADVANCE ( ACCUMULATION1 & TRANS=MABLE 9TO ADDITIONAL CAPITAL1 ?RU/S ITSELF FRANTICALLY 9TO OLD BRAN*ES ( PRODUCTION1 :OSE M>KET SUDD5LY EXP&S1 OR 9TO NEWLY =M$ BRAN*ES1 SU* AS RAILWAYS1 ETC41 ! NE$ = :I* GR[S \T ( ! DEVELOPM5T ( ! OLD ONES4 ,9 ALL SU* CASES1 !RE MU/ BE ! POSSIBILITY ( ?R[+ GREAT MASSES ( M5 SUDD5LY ON ! DECISIVE PO9TS )\T 9JURY TO ! SCALE ( PRODUCTION 9 O!R SPH]ES4 ,OV]-POPULATION SUPPLIES !SE MASSES4'.<#c#f.> 

,H]E ,M>X DOES NOT ONLY EXPLA9 H[ !SE SUDD5 EXPANSIONS ( CAPITAL TAKE PLACE - NAMELY1 AS A RESULT ( SUDD5 EXPANSION 9 ! M>KETS - BUT HE ALSO =MULATES ! SPECIAL FUNCTION ( ! 9DU/RIAL RES]VE >MY3 TO BE 'AVAILABLE' = ?OSE EXTRAORD9>Y SUDD5 EXPANSIONS ( CAPITAL4 ,H]E ,M>X SEES ! MO/ IMPORTANT1 ! ACTUAL FUNCTION ( ! 9DU/RIAL RES]VE >MY1 = :I* HE CALLS IT AN EXI/5TIAL CONDITION ( MOD]N CAPITALI/ PRODUCTION4 ,! =MATION ( 9DU/RIAL OV]-POPULATION IS '! LEV] ( CAPITALI/IC ACCUMULATION1 NAY1 A CONDITION ( EXI/5CE ( ! CAPITALI/ MODE ( PRODUCTION 444 ,! :OLE =M ( ! MOVEM5T ( MOD]N 9DU/RY DEP5DS1 !RE=E1 UPON ! CON/ANT TRANS=MATION ( A P>T ( ! LABOR+ POPULATION 9TO UNEMPLOY$ OR HALF-EMPLOY$ H&S4.<#c#g.> ,M>X =MULATES HIS OP9ION MO/ CLE>LY & CONCISELY ON P4#d#e3 

,SO SOON1 9 %ORT1 AS ! G5]AL CONDITIONS REQUISITE = PR\UCTION BY ! MOD]N 9DU/RIAL SY/EM HAVE BE5 E/ABLI%$1 ?IS MODE ( PRODUCTION ACQUIRES AN ELA/ICITY1 A CAPACITY = SUDD5 EXT5SION BY LEAPS & B\NDS ?AT F9DS NO H9DRANCE EXCEPT 9 ! SUPPLY ( RAW MAT]IAL & 9 ! DISPOSAL ( ! PRODUCE4.<#c#h.> 

,H[ DOES ,BAU] DEAL ) ALL ?IS8 ,!RE IS NO ROOM = SUDD5 EXPANSIONS ( CAPITAL 9 HIS 'ME*ANISM'1 ?US NO ROOM = ITS ELA/ICITY4 ,!RE >E TWO REASONS = ?IS3 FIR/LY1 AS PRODUCTION DEP5DS ONLY ON ! WORK+ POPULATION & ITS GR[?1 M>KETS >E ( NO IMPORTANCE4 ,! POPULATION1 GR[+ ?R\< NATURAL REPRODUCTION1 ( C\RSE %[S NO SUDD5 EXPANSION4 ,! WORK+ POPULATION P]IODICALLY CAUSES RAPID GR[? ( ! 9DU/RIAL RES]VE >MY1 BUT = ,BAU] ?AT HAPP5S 9 TIMES ( 'UND]-ACCUMULATION'1 ( ! SL[E/ 9CREASE1 ( ! %ORTAGE ( DISPOSABLE CAPITAL 9 RELATION TO ! WORK+ CLASS4 

,SECONDLY1 SUDD5 EXPANSION NOT ONLY MEANS SUDD5 EXPANSION ( M>KETS1 BUT ALSO ( ALREADY ACCUMULAT$ DISPOSABLE CAPITAL RES]VE1 ?AT RES]VE1 :I*1 AS ,M>X SAYS1 'CR$IT1 UND] EV]Y SPECIAL /IMULUS1 AT ONCE PLACES 444 AT ! DISPOSAL ( PRODUCTION 9 ! =M ( ADDITIONAL CAPITAL' 444 ,BAU] EXCLUDES ?AT POSSIBILITY3 9 HIS 'ME*ANISM' A RECOV]Y FROM ! PHASE ( 'UND]-ACCUMULATION' CAN ONLY OCCUR :5 ! PRESSURE FROM UNEMPLOYM5T ALL[S NEW ACCUMULATION BY DEPRESS+ WAGES6 

,AS ! SUDD5 EXPANSION ( CAPITAL REMA9S1 LIKE ! \TBREAK ( CRISES1 9EXPLICABLE FROM ,BAU]'S /&PO9T1 ! 9DU/RIAL RES]VE >MY HAS NO ACTUAL FUNCTION 9 IT4 ,IT APPE>S AS A PRODUCT ( TE*NOLOGICAL PROGRESS1 BUT HAS NO ROLE AP>T FROM ?AT M5TION$ BY ,M>X 9 HIS SECOND PLAN3 TO DEPRESS WAGES BY WEI<+ D[N ! EMPLOY$4 ,:AT MAKES IT1 ACCORD+ TO ,M>X1 AN 'EXI/5TIAL CONDITION'1 ! 'LEV]' ( CAPITALI/ PRODUCTION1 ,BAU] DOES NOT NOTICE4 ,! HUMOR\S PROCESS ( BE+ ABSORB$ ?REE TIMES 9 ! RUN ( AN 9DU/RIAL CYCLE PROVES ?AT ,BAU] DOES NOT KN[ :AT TO DO ) ! RES]VE >MY3 FIR/1 AT ! L[E/ PO9T ( 'UND]-ACCUMULATION'1 !N AT ! PEAK ( 'OV]-ACCUMULATION'1 & AGA9 AT ! /ATE ( EQUILIBRIUM4 

,!SE MIRACLES HAVE A SIMPLE REASON3 = ,BAU] ! MOVEM5T ( ! WORK+ POPULATION IS NOT CAUS$ BY CAPITAL & ITS REQUIREM5TS 7AS = ,M>X & 9 REALITY7 BUT VICE V]SA4 ,! 5TIRE MOVEM5T ( CAPITAL REVOLVES R\ND ! WORK+ POPULATION4 ,ACCORD+ TO ,BAU]1 CAPITAL ACTS LIKE ! H>E & ! H$GEHOG3 IT IS ALWAYS GASP+ = BREA? BEH9D ! WORK+ POPULATION1 SOMETIMES OV]TAK+ IT 9 ! MIDDLE1 AT O!RS FALL+ BEH9D IT1 & AT ! 5D ALWAYS HE>+3 ,HEY1 ,I GOT H]E BE=E Y\6 

,= ,M>X1 ! !ORY ?AT ! WORK+ POPULATION COMPLETELY ADJU/S TO CAPITAL & ITS M>KET PROSPECTS IS ! BASIC ?\<T ( ! 5TIRE LA/ SECTION ( ! FIR/ VOLUME4 ,9 =TY PAGES1 PP4 #f#i-#f#d#h1 HE C>EFULLY EXPLA9S ?IS IMPORTANT ECONOMIC DISCOV]Y4 ',?AT IS ! ABSOLUTE G5]AL LAW ( CAPITAL ACCUMULATION1' HE EMPHASIZES 9 CONCLUSION4 ,!N 'ILLU/RATIONS' FOLL[1 FILL+ ANO!R SIXTY-FIVE PAGES4 ,:AT DOES HE %[ FROM ! EXAMPLE ( ,5GL& AS ! TYPICAL & LEAD+ C\NTRY ( CAPITALI/ PRODUCTION8 - :ILE ! ANNUAL GR[? ( ! POPULATION 9 ,5GL& CON/ANTLY DECREAS$ FROM #a#h#a#a-#f#a1 ! WEAL?1 I4E4 CAPITALI/ ACCUMULATION1 EXP&$ BY LEAPS & B\NDS6 ,M>X PROVES ?AT ) 9NUM]ABLE & V>I$ /ATI/ICAL FACTS4 

,P]HAPS ,BAU] WILL 9T]JECT3 ,?IS HUGE 9CREASE ( N9ETE5?-C5TURY ,5GLI% 9DU/RY WAS1 ( C\RSE1 NOT CALCULAT$ = ! ,5GLI% POPULATION ALONE & MU/ NOT BE COMP>$ ) IT ALONE AS ! ECONOMIC BASIS4 ,NOTE ! ,5GLI% SALES TO ! ,NOR? ,AM]ICAN ,UNION1 ,C5TRAL & ,S\? ,AM]ICA2 NOTE ! P]IODIC CRISES 9 ,5GLI% 9DU/RY BETWE5 #ahbe & #a#h#f#g1 FOLL[+ ! EXPANSION ( M>KETS 9 ?OSE C\NTRIES6 ,BRILLIANT6 ,BUT IF ,BAU] KN[S ?AT1 !N HE KN[S EV]Y?+1 !N HE ALSO KN[S ?AT ?IS !ORY ( ! ADJU/M5T ( ACCUMULATION TO POPULATION GR[? IS NONS5SE1 !N HE KN[S :AT ,M>X WANT$ TO PROVE 9 ! FIR/ VOLUME ( ,CAPITAL1 ?AT ! WORK+ POPULATION ADJU/S TO ! ACCUMULATION ( CAPITAL & ITS *ANG+ REQUIREM5TS4 ,?IS IS ! CULM9AT+ PO9T ( ! FIR/ VOLUME ( ,CAPITAL4 ,M>X COMPILES ! SPIRIT ( HIS !ORY ( CAPITALI/ EXPLOITATION1 ! PRIM>Y RELATION BETWE5 CAPITAL & LABOR1 & ! SPECIAL 'LAW ( POPULATION' 9 ! CAPITALI/ P]IOD4 

,ALONG COMES ,BAU]1 :O TURNS ?IS :OLE $IFICE UPSIDE D[N & TELLS ! WORLD ?AT ! 5TIRE MOVEM5T ( CAPITAL RESULTS FROM ! T5D5CY TO ADJU/ TO ! 9CREASE ( ! WORK+ POPULATION6 ,9 T]MS ( CONT5T ,BAU]'S !ORY IS A SOAP BUBBLE4 

,CORRECT HIM BY ASSUM+ ) ,M>X A P]MAN5T =MATION ( ! 9DU/RIAL RES]VE >MY 7:OSE FUNCTION IT IS TO SATISFY ! DEM&S ( CAPITAL EV5 9 TIMES ( ! GREATE/ PROSP]ITY71 & HIS SPECIFIC 'OV]-ACCUMULATION' IS F9I%$4 

,CORRECT HIM BY ASSUM+ ) ,M>X A CON/ANT RELATIVE DECREASE ( V>IABLE CAPITAL 9 RELATION TO ! NUMB] ( WORK]S AS A RESULT ( TE*NOLOGICAL PROGRESS1 & HIS 'EQUILIBRIUM' IS F9I%$4 

,HIS !ORY VANI%ES 9TO ?9 AIR4 ,BUT MORE ?AN ! PRET5TI\SNESS ( ?IS CON/RUCTION IS ! BASIC IDEA BEH9D IT3 ! ALLEG$ T5D5CY ( CAPITAL TO ADJU/ ITS MOVEM5T TO ! WORK+ POPULATION4 ,?IS CA/S ! V]Y SPIRIT ( ,M>X'S !ORY TO ! W9D4 ,& TO ?9K ?AT ?IS P$ANTICALLY PUZZL$ \T SY/EM ( HAIR-RAIS+ NONS5SE C\LD BE PUBLI%$ 9 ! (FICIAL ORGAN ( ,M>XI/ !ORY6 ,EAG]LY FI<T+ = A GOOD CAUSE - AN 9SOL5T H]ETIC WAS TO BE BURNT - !Y DID NOT NOTICE ?AT !Y W]E ATTACK+ SOMEBODY BIGG]6 ,G5]AL CONTROL & PUBLIC CRITICISM KEEP WAT* OV] ! NATURAL SCI5TI/S4 ,ANYONE :O CLAIM$ TO GIVE ! EXACT CALCULATION = ! MOVEM5T ( ALL />S >\ND ! E>?1 9 ORD] TO EXPLA9 MOD]N A/RONOMIC SY/EMS1 W\LD NOT BE TAK5 S]I\SLY4 ,SU* AN IDEA W\LD NOT EV5 COME TO ! ATT5TION ( ! PUBLIC1 S9CE NO $ITOR ( A SCI5TIFIC J\RNAL W\LD LET SU* NONS5SE PASS4 ,UND] ! REGIME ( ! ',AU/RO-,M>XI/' DIADO*ES.<#c#i.> SU* ?+S CAN EASILY HAPP54 ,PRON\NC$ FROM ?AT RO/RUM1 ,BAU]'S !ORY ( ACCUMULATION IS NOT A COMMON ]ROR1 SU* AS CAN OCCUR 9 ! QUE/ = SCI5TIFIC KN[L$GE4 ,IT IS1 QUITE AP>T FROM ITS POSITION T[>DS MY BOOK1 A DISGRACE TO PRES5T (FICIAL ,M>XISM & A SC&AL = ,SOCIAL ,DEMOCRACY4 

,FOOTNOTES 

.<#a.>,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#c1 P4#h#c#d4 _<P4#i#b_> 

.<#b.>OP4 CIT41 ,NO4#b#d1 P4#h#g#a4 _<P4#a#f_> 

.<#c.>IBID41 P4#h#f#i4 _<P4#a#d_> 

.<#d.>OP4 CIT41 ,NO4#b#d1 P4#h#f#i4 _<P4#a#d_> 

.<#e.> .<,FRI$RI* ,ALB]T ,LANGE4 ,N9ETE5?-C5TURY AU?OR ( A ,HI/ORY ( ,MAT]IALISM4 ,SEE ,M>X'S LETT] TO ,DR ,KUGELMANN1 #bg ,JUNE #a#h#g4.> 

.<#f.>OP4 CIT41 ,NO4#b#c1 P4#h#c#e4 _<P4#i#b_> 

.<#g.>IBID41 P4 #h#c#d4 _<P4 #i#b_> 

.<#h.>OP4 CIT41 ,NO4#b#d1 P4#h#f#i4 _<P4#a#d_> 

.<#i.>LOC4 CIT4 _<P4#a#d_> 

.<#a.>LOC4 CIT41 P4#h#g#c4 _<P4#a#i_> 

.<#a#a.>IBID41 P4#h#f#i4 _<P4#a#d_> 

.<#a#b.>LOC4 CIT41 _<P4#a#d_> 

.<#a#c.>LOC4 CIT41 P4#h#g4 _<P4#a#e_> 

.<#a#d.>LOC4 CIT41 P4#h#g4 _<P4#a#e_> 

.<#a#e.>IBID41 P4#h#g#a4 _<P4#a#f_> 

.<#a#f.> .<,USUALLY TRANSLAT$ AS 'ECONOMICS'1 BUT ! ,G]MAN T]M HAS C]TA9 CONNOTATIONS :I* MAKE LIT]AL TRANSLATION IMPOSSIBLE - ,$4.> 

.<#a#g.> .<,WILLIAM ,PETTY 7#a#f#b#c-#h#g74 ,CALL$ BY ,M>X ! F\ND] ( POLITICAL ECONOMY4 ,BORN 9TO A POOR WEAV+ FAMILY 9 ,HAMP%IRE1 HE L$ A V]Y V>I$ C>E] AS SEAMAN1 HAWK]1 PHYSICIAN1 PR(ESSOR ( ANATOMY & MUSIC4 ,$UCAT$ P>TLY 9 ,FRANCE AT A ,JESUIT COLLEGE & AT ,OX=D4 ,WROTE NUM]\S WORKS ON POLITICAL ECONOMY1 E4G4 ,POLITICAL ,>I?METICK1 ,POLITICAL ,ANATOMY ( ,IREL&1 ,A ,TREATISE ( ,TAXES & ,CONTRIBUTIONS4.> 

.<#a#h.>IBID41 P4#h#g#b4 7,ALL EMPHASIS BY ,BAU]47 _<P4#h#g#b_> 

.<#a#i.>IBID41 P4#h#g#a4 _<P4#a#g_> 

.<#b.> ,M>X1 ,CAPITAL1 ,VOL4,I,I,I1 PP4#b#d#f-#g4 

.<#b#a.>IBID41 P4#b#d#f4 

.<#b#b.>IBID41 PP4#b#e-#e#a4 

.<#b#c.>IBID41 P4#b#e#a4 

.<#b#d.> ,BAU]1 OP4 CIT41 P4#h#g#b4 _<P4#a#g_> 

.<#b#e.> ,M>X1 OP4 CIT41 ,VOL4,I,I,I1 P4#b#d4 

.<#b#f.> ,M>X1 ,!ORIES ( ,SURPLUS ,VALUE1 ,VOL4,I,I1 P4#d#g#g4 

.<#b#g.>LOC4 CIT4 

.<#b#h.>IBID41 P4#d#h#c4 

.<#b#i.>IBID41 P4#d#h#d4 7,MY EMPHASIS - ,R4,L47 

.<#c.> ,MY EMPHASIS - ,R4,L4 

.<#c#a.> ,MY EMPHASIS - ,R4,L4 

.<#c#b.> ,BAU]1 OP4 CIT41 P4#h#f#i4 _<P4#a#d_> 

.<#c#c.> ,M>X1 OP4 CIT41 P4#f#d#d4 7,MY EMPHASIS - ,R4,L47 

.<#c#d.> ,MY EMPHASIS - ,R4,L4 

.<#c#e.> ,MY EMPHASIS - ,R4,L4 

.<#c#f.> ,MY EMPHASIS - ,R4,L4 

.<#c#g.>IBID41 P4#f#c#b-#c4 7,MY EMPHASIS - ,R4,L47 

.<#c#h.>IBID41 P4#d#e4 

.<#c#i.> .<SUCCESSORS4.> 

O ,*APT] #e 3 ,BAU]'S ',PRACTICAL' ,CONCLUSIONS 

,?IS IS ! LIMIT ( ,BAU]'S [N EXPLANATION ( CAPITAL ACCUMULATION4 ,:AT IS ITS PRACTICAL CONCLUSION8 ,BAU] EXPRESSES IT AS FOLL[S3 

,! RESULT ( \R 9VE/IGATION IS 7#a7 ?AT CAPITAL ACCUMULATION IS POSSIBLE EV5 9 ISOLAT$ CAPITALI/ SOCIETY1 PROVID$ ?AT IT DOES NOT EXT5D BEYOND A C]TA9 DEF9$ LIMIT 7I4E4 ! GR[? ( ! WORK+ POPULATION - ,R4,L472 & 7#b7 ?AT ! ME*ANISM ( CAPITALI/ PRODUCTION ITSELF AUTOMATICALLY BR+S IT BACK TO ?IS LIMIT4.<#a.> 

,IMM$IATELY AFT]W>DS1 ,BAU] SUMM>IZES ! QU9TESS5CE ( ! PRACTICAL APPLICATION ( HIS !ORY 9 A CONCLUD+ *APT]1 :]E WE READ3 

,COMRADE ,LUXEMBURG EXPLA9S IMP]IALISM 9 ! FOLL[+ WAY3 ! CONV]SION ( SURPLUS VALUE 9TO CAPITAL W\LD BE IMPOSSIBLE 9 AN ISOLAT$ CAPITALI/ SOCIETY4 ,?IS IS POSSIBLE ONLY IF ! CLASS ( CAPITALI/S EXP&S ITS M>KET CONT9U\SLY1 SO ?AT IT CAN SELL ?AT P>T ( ! SURPLUS VALUE :I* CONTA9S ! ACCUMULAT$ P>T ( SURPLUS VALUE 9 >EAS AS YET )\T CAPITALI/ PRODUCTION4 ,?IS IS ! OBJECT ( IMP]IALISM4 ,AS WE HAVE SE51 ?IS EXPLANATION IS 9CORRECT4 ,ACCUMULATION IS BO? POSSIBLE & NECESS>Y EV5 9 ISOLAT$ CAPITALI/ SOCIETY4.<#b.> 

,?US ,BAU]1 BY WAY ( A DIV]SION 9 ! =M ( A NEWLY DISCOV]$ 'POPULATION !ORY'1 CL+S LIKE ! O!R 'EXP]TS' TO HIS PRO( ?AT CAPITALI/ PRODUCTION & ACCUMULATION CAN ?RIVE EV5 UND] CONDITIONS :I* NO MORTAL BE+ HAS YET SET EYES UPON4 ,& HE ?9KS HE CAN USE ?IS AS A BASIS = AN APPROA* TO ! PROBLEM ( IMP]IALISM6 

,LET US MAKE ONE ?+ CLE>3 9 ! PROCESS ( APPE>+ TO DEF5D ,M>X'S IDEAS AS EXPRESS$ 9 ! SECOND VOLUME ( ,CAPITAL AGA9/ ME1 ,BAU] ONCE AGA9 ASCRIBES TO ,M>X A DISCOV]Y :I* RUNS DIRECTLY C\NT] TO ,M>X'S ASSUMPTION4 

,M>X WAS DEF9ITELY NOT DEAL+ ) AN 'ISOLAT$ CAPITALI/ SOCIETY' & ITS SIMULTANE\S COORD9ATE ASSUMPTION ( ! EXI/5CE ( O!R1 NON-CAPITALI/ SOCIETIES1 & ,I HAVE NEV] REF]R$ TO SU* A SOCIETY4 ,?IS TA/ELESS PICTURE APPE>$ = ! FIR/ TIME1 LIKE ,V5US FROM ! WAVES1 9 ,OTTO ,BAU]'S !ORETICAL IMAG9ATION4 ,LET US REM9D \RSELVES H[ ,M>X =MULAT$ HIS PREMISE4 ,9 ! FIR/ VOLUME ( ,CAPITAL HE EXPRESSLY /ATES HIS 9T5TION ( ASSUM+1 '9 ORD] TO EXAM9E ! OBJECT ( \R 9VE/IGATION 9 ITS 9TEGRITY1 FREE FROM ALL DI/URB+ SUBSIDI>Y CIRCUM/ANCES'1 ?AT '! :OLE WORLD 7IS7 ONE NATION'1 :I* =M$ AN ECONOMIC :OLE & '?AT CAPITALI/ PRODUCTION IS EV]Y:]E E/ABLI%$ & HAS POSSESS$ ITSELF ( EV]Y BRAN* ( 9DU/RY'4.<#c.> ,& 9 ! SECOND VOLUME HE /ATES EQUALLY EXPLICITLY ?AT HIS 9VE/IGATION ( ACCUMULATION IS BAS$ ON '! G5]AL & EXCLUSIVE DOM9ATION ( CAPITALI/ PRODUCTION'4.<#d.> 

,?AT IS V]Y EXPLICIT4 ,?US ,M>X DID NOT ASSUME ! *ILDI% FANTASY ( A CAPITALI/ SOCIETY ON ,ROB9SON ,CRUSOE'S ISL& :I* SECRETLY ?RIVES 'ISOLAT$' FROM CONT95TS ( NON-CAPITALI/ PEOPLES1 ( A SOCIETY 9 :I* CAPITALISM HAS DEVELOP$ TO ! HI<E/ POSSIBLE LEVEL 7S9CE ! POPULATION CONSI/S SOLELY ( CAPITALI/S & WORK]S71 :I* KN[S NO?+ ( EI!R >TISANS OR PEASANTRY & HAS ABSOLUTELY NO CONNECTION ) ! SURR\ND+ NON-CAPITALI/ WORLD4 ,M>X'S PREMISE IS NO FANTA/IC ABSURDITY1 IT IS A SCI5TIFIC FICTION4 ,9 FACT1 ,M>X PRESUPPOSES ! REAL T5D5CY ( CAPITALI/ SOCIETY4 ,HE ASSUMES ?AT ! /ATE ( TOTAL & UNIV]SAL RULE ( CAPITALISM HAS ALREADY BE5 REA*$1 ?AT HI<E/ DEVELOPM5T ( ! WORLD M>KET & WORLD ECONOMY :I* CAPITAL & EV]Y PRES5T ECONOMIC & POLITICAL DEVELOPM5T IS 9 FACT HEAD+ =4 ,?US1 ,M>X IS PLAC+ HIS 9VE/IGATION ON ! TRACKS ( ! REAL HI/ORICAL T5D5CY ( DEVELOPM5T1 :OSE F9AL GOAL HE TAKES AS ALREADY REA*$4 ,SCI5TIFICALLY SPEAK+1 ?IS ME?OD IS QUITE CORRECT &1 AS ,I HAVE %[N 9 MY BOOK1 COMPLETELY SUFFICI5T = ! 9VE/IGATION ( ! ACCUMULATION ( 9DIVIDUAL CAPITAL1 EV5 IF1 AS ,I BELIEVE1 IT BECOMES 9CORRECT & MISLEAD+ :5 APPLI$ TO ! MA9 PROBLEM3 ! ACCUMULATION ( AGGREGATE SOCIAL CAPITAL4 

,BAU]1 ON ! O!R H&1 PRODUCES ! GROTESQUE PICTURE ( AN 'ISOLAT$ CAPITALI/ ECONOMY' ) NO 9T]M$IATE /RATA1 NO >TISANS & NO PEASANTS1 :I* NEV] HAS EXI/$ & NEV] WILL1 & :I* HAS NO?+ TO DO ) REALITY & ! T5D5CY ( DEVELOPM5T2 A CREATION1 !RE=E1 :OSE +5I\S 'ME*ANISM' CONTRIBUTES AS LITTLE TO CL>IFY+ ! LAWS ( CAPITALI/ ACCUMULATION AS ,VAUCANSON'S.<#e.> FAM\S ME*ANICAL MODELS DID TO EXPLA9+ ! PHYSIOLOGY & PSY*E ( ! HUMAN ORGANISM4 ,UNTIL N[ ONLY B\RGEOIS ECONOMI/S EMPLOY$ ! NAIVE DEVICE ( AN 'ISOLAT$ ECONOMY'1 US+ ?IS PUPPET TO DEMON/RATE ! LAWS ( GLOBAL CAPITALI/ PRODUCTION4 ,NOBODY MOCK$ ! B\RGEOIS ',ROB9SONIANS' AS CRUELLY AS ,M>X4 ,& TO CAP IT ALL1 ,BAU]'S ,ROB9SONIAN ESCAPADES >E MEANT TO EXPLA9 ,M>X & PUT HIM ON AN 'OBJECTIVE BASIS'4 

,BUT ,BAU] HAS GOOD REASONS = HIS 'EXPLANATION'4 ,= IF1 LIKE ,M>X1 ONE ASSUMES ?AT ! 'G5]AL & EXCLUSIVE DOM9ATION ( CAPITALI/ PRODUCTION' HAS ALREADY BE5 UNIV]SALLY ATTA9$1 ONE EXCLUDES IMP]IALISM & NO EXPLANATION CAN BE F\ND = IT1 S9CE IT HAS ALREADY BE5 HI/ORICALLY OV]TAK51 KILL$ & BURI$ BY ! V]Y ASSUMPTION4 ,UND] ?IS ASSUMPTION ONE CAN AS LITTLE DESCRIBE ! PROCESS ( ! IMP]IALI/ PHASE AS1 = 9/ANCE1 ONE CAN PORTRAY ! COLLAPSE ( ! ,ROMAN ,EMPIRE UND] ! ASSUMPTION ( ! ALREADY EXI/+ G5]AL RULE ( FEUDALISM 9 ,EUROPE4 ,FAC$ ) ! TASK ( UNIT+ PRES5T-DAY IMP]IALISM ) ! !ORY ( ACCUMULATION AS SKET*$ 9 ! FRAGM5T 9 ! SECOND VOLUME ( ,CAPITAL1 ! 'EXP]T' EPIGONS %\LD HAVE OPT$ = ONE ( ! FOLL[+3 EI!R D5Y ?AT IMP]IALISM IS A HI/ORICAL NECESSITY OR1 AS ,I DO 9 MY BOOK1 REJECT ,M>X'S PREMISE AS MI/AK5 & 9VE/IGATE ! PROCESS ( ACCUMULATION UND] HI/ORICALLY GIV5 CONDITIONS3 AS CAPITALI/ DEVELOPM5T CONT9U\SLY 9T]ACT+ ) A NON-CAPITALI/ 5VIRONM5T4 ,A MAN LIKE ,ECK/E91 :O HAS UND]/OOD NO?+ AB\T ! MATT] 9 H&1 IS OBVI\SLY NOT FAC$ ) ! DIFFICULTY ( *OOS+ BETWE5 ! TWO ALT]NATIVES4 ,BUT ,OTTO ,BAU]1 :O EV5TUALLY SAW ! TRAP1 F9DS HIS SOLUTIONS1 AS A TYPICAL REPRES5TATIVE ( ! ',M>XI/ C5T]'1 9 A COMPROMISE3 CAPITALISM CAN 9DE$ ?RIVE ON ,ROB9SON ,CRUSOE'S ISL&1 BUT !RE IS /ILL A 'LIMIT' TO ITS ?RIV+ 9 ISOLATION1 & IT CAN ONLY OV]COME ?IS LIMIT BY TRAD+ ) ! NON-CAPITALI/ 5VIRONM5T4 ',!RE IS A K]NEL ( TRU? BEH9D ! FALSE EXPLANATION 7I4E4 M9E - ,R4,L471' HE ANN\NCES 9 CONCLUSION4 

',ACCUMULATION IS NOT IMPOSSIBLE 9 AN ISOLAT$ CAPITALI/ SOCIETY1 BUT IT IS PLAC$ )9 LIMITS4 ,IMP]IALISM 9 FACT S]VES TO EXP& !SE LIMITS4 - ,?IS URGE IS1 9 FACT1 ONE ( ! ROOTS ( IMP]IALISM1 BUT NOT ! ONLY ONE4'.<#f.> 

,?US ,BAU] HIMSELF DID NOT CONSID] HIS ,ROB9SONIAN NOTION ( AN 'ISOLAT$ CAPITALI/ ECONOMY' TO BE SUFFICI5T AS A SCI5TIFIC PREMISE1 I4E4 AS A S]I\S S+LE BASIS = 9VE/IGATION2 ON ! CONTR>Y1 HE CON/RUCT$ IT ) ONE EYE LOOK+ AHEAD TO ! O!R1 NON-CAPITALI/ C\NTRIES4 ,HE TREAT$ US TO A FULSOME DISS]TATION ON ! +5I\S 'ME*ANISM' ( A CAPITALI/ SOCIETY :I* C\LD EXI/ & PROSP] ALL ON ITS [N1 ALL ! TIME KEEP+ ! NON-CAPITALI/ 5VIRONM5T 9 RES]VE SO ?AT HE C\LD USE IT AT ! 5D TO DRAG HIMSELF \T :5 HE BECAME BOGG$ D[N ) HAV+ TO EXPLA9 IMP]IALISM 9 ,ROB9SON ,CRUSOE'S ISL&6 

,! C>EFUL READ] ( ! FOOTNOTES & OCCASIONAL CRITICAL REM>KS 9 ! FIR/ VOLUME ( ,CAPITAL1 :]E ,M>X DEALS ) ! !ORETICAL TRICK]Y ( ,SAY1 ,J4,S4 ,MILL1 ,C>EY1 ETC41 CAN PROBABLY IMAG9E ! PUNI%M5T :I* ,M>X W\LD HAVE MET$ \T TO ?AT SORT ( SCI5TIFIC ME?OD4 

,FOOTNOTES 

.<#a.>,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#d1 P4#h#g#c4 _<P4#a#h_> 

.<#b.>LOC4 CIT4 7,MY EMPHASIS - ,R4,L47 _<P4#a#h_> 

.<#c.> P4#e#h#a1 FOOTNOTE4 

.<#d.> P4#c#d#h4 7,MY EMPHASIS - ,R4,L47 

.<#e.> .<,JACQUES ,VAUCANSON 7#a#g#i-#h#b74 ,FR5* 9V5TOR4 ,9V5T$ ! FIR/ ME*ANICAL LOOM1 ALSO A ME*ANICAL 'HUMAN' FLUTE PLAY] & A ME*ANICAL DUCK ?AT SWAM1 QUACK$1 FLAPP$ ITS W+S & ATE FOOD1 & MANY O!R ME*ANICAL DEVICES4.> 

.<#f.>OP4 CIT41 PP4#h#g#c-#d4 _<P4#a#h-#a#i_> 

O ,*APT] #f 3 ,IMP]IALISM 

,H[EV] ?AT MAY BE1 WE HAVE AT LA/ >RIV$ AT IMP]IALISM4 ,! CONCLUD+ *APT] ( ,BAU]'S ESSAY IS 5TITL$ ,! ,EXPLANATION ( ,IMP]IALISM4 ,AFT] ?IS1 ! READ] MI<T WELL HOPE F9ALLY TO F9D ONE4 ,AFT] ,BAU] HAD EXPLA9$ ?AT ,I HAD ONLY UNCOV]$ ONE ROOT ( IMP]IALISM1 'BUT NOT ! ONLY ONE'1 ONE C\LD ONLY EXPECT ?AT1 FROM ! /&PO9T ( HIS !ORY1 HE HIMSELF W\LD LAY B>E ! O!R ROOTS4 ,UN=TUNATELY1 ?IS WAS NOT ! CASE4 ,TO ! 5D1 ,BAU] FAILS TO GIVE ONE S+LE 9DICATION ( ! O!R ROOTS1 HE KEEPS ! SECRET TO HIMSELF4 ,9 SPITE ( ! CONCLUD+ *APT]'S PROMIS+ TITLE & 9TRODUCTION WE >E /ILL LEFT ) ONLY ! ONE MIS]ABLE 'ROOT' ( IMP]IALISM1 :I* =MS ! 'K]NEL ( TRU?' 9 MY 9CORRECT EXPLANATION4 

,9 DO+ ?IS1 H[EV]1 ,BAU] HAS ALREADY CONC$$ TOO MU* TO ME1 9 ! %APE ( ! 'ONE ROOT' :I* HE K9DLY ACCEPTS AS TRUE'4 ,= H]E TOO IT IS A CASE ( EI!R_/OR1 & ! COMPROMISE :I* ,BAU] TRIES TO MAKE IS BASICALLY AS IMP]MAN5T & E!REAL AS MO/ COMPROMISES4 

,= IF HIS 'POPULATION GR[?' !ORY ( ACCUMULATION W]E CORRECT1 ! 'ROOT' W\LD BE COMPLETELY UNNECESS>Y1 S9CE !N IMP]IALISM W\LD SIMPLY BE IMPOSSIBLE4 

,LET US REM9D \RSELVES :AT ,BAU]'S 'ME*ANISM' CONSI/S (4 ,IT CONSI/S 9 ! FACT ?AT CAPITALI/ PRODUCTION AUTOMATICALLY READJU/S ITSELF TO ! GR[? ( ! WORK+ CLASS4 ,!N H[ CAN ONE SPEAK ( A 'LIMIT' TO ACCUMULATION8 ,CAPITAL NEI!R NE$S TO NOR CAN IT OV]/EP ?IS LIMIT'4 ,= IF PRODUCTION GR[S FA/] ?AN ! WORK+ CLASS - 9 ,BAU]'S 'OV]-ACCUMULATION' PHASE - IT COMP5SATES = ?IS BY LAGG+ BEH9D ! AVAILABLE WORK+ POPULATION AGA9 9 ! FOLL[+ PHASE ( 'UND]-ACCUMULATION'4 ,9 ?IS WAY !RE IS 9 G5]AL NO SURPLUS CAPITAL 9 ,BAU]'S 'ME*ANISM' :I* C\LD \TGR[ HIS 'LIMIT'4 ,YET = ! SAME REASON ?IS !ORY1 AS WE HAVE SE51 EXCLUDES ! =MATION ( RES]VE CAPITAL & ! ABILITY ( PRODUCTION TO EXP& SUDD5LY4 ,SURPLUS CAPITAL APPE>S AS ONLY A PASS+ PHASE :I* MU/ P]IODICALLY BE REPLAC$ BY ! OPPOSITE EXTREME1 CAPITAL %ORTAGE3 9 ,BAU]'S 'ME*ANISM' BO? PHASES REPLACE EA* O!R ) ! P$ANTIC REGUL>ITY ( NEW MOON & FULL MOON4 ,!RE >E NO MORE 'LIMITS' TO CAPITAL ACCUMULATION ?AN !RE IS A T5D5CY = !SE TO BE EXCE$$2 ,BAU] HIMSELF EXPLICITLY /ATES ?AT ACCUMULATION ALWAYS RETURNS TO ?IS LIMIT ( ITS [N ACCORD1 DUE TO ! 'ME*ANISM ( CAPITALI/ PRODUCTION ITSELF'4.<#a.> ,?US1 !RE IS NO CONFLICT BETWE5 CAPITAL'S ABILITY TO EXP& & AN ALLEG$ LIMITATION4 ,BAU] ONLY TAKES ! TR\BLE TO 9CLUDE !SE CONCEPTS 9 HIS 'ME*ANISM' SO ?AT HE CAN BUILD SOME SORT ( >TIFICIAL BRIDGE BETWE5 IT & IMP]IALISM4 ,! EXPLANATION :I* HE IS COMPELL$ TO GIVE ( IMP]IALISM FROM ! /&PO9T ( HIS !ORY %[S MO/ CLE>LY ?AT ?IS CON/RUCTION IS =C$4 

,S9CE1 ACCORD+ TO ,BAU]1 ! WORK+ CLASS IS ! AXIS >\ND :I* CAPITAL REVOLVES1 EXPANSION ( ! LIMITS TO ACCUMULATION COMES TO MEAN 9CREASE 9 ! POPULATION ( WORK]S6 ,?IS IS D[N 9 BLACK & :ITE 9 ,NEUE ,ZEIT4.<#b.> 

,ACCUMULATION IS AT FIR/ LIMIT$ BY ! GR[? ( ! WORK+ POPULATION4 ,IMP]IALISM 9CREASES ! NUMB] ( WORK]S :O >E =C$ TO SELL !IR LABOR P[] TO CAPITAL4 ,IT ACCOMPLI%ES ?IS BY DE/ROY+ ! OLD MODES ( PRODUCTION 9 COLONIAL >EAS & !REBY =C+ MILLIONS EI!R TO EMIGRATE TO CAPITALI/ >EAS OR TO S]VE ,EUROPEAN OR ,AM]ICAN CAPITAL 9 !IR NATIVE L&1 :]E ! CAPITAL HAS BE5 9VE/$4 ,S9CE ) A GIV5 ORGANIC COMPOSITION ( CAPITAL ! AM\NT ( ACCUMULATION IS DET]M9$ BY ! GR[? 9 ! AVAILABLE WORK+ POPULATION1 IMP]IALISM IS 9 FACT A MEANS TO 5L>GE ! LIMITS ( ACCUMULATION4 

,SO ?IS IS ! MA9 FUNCTION & ! MA9 CONC]N ( IMP]IALISM3 TO 9CREASE 'GREATLY' ! NUMB] ( WORK]S1 EI!R BY IMMIGRATION FROM ! COLONIES OR 9 !IR [N C\NTRY6 ,& ?IS1 DESPITE ! FACT ?AT ANYONE :O IS 9 FULL POSSESSION ( HIS S5SES IS AW>E1 ON ! CONTR>Y1 ( ! CONT9UAL PRES5CE ( A COMPLETE1 CONSOLIDAT$ 9DU/RIAL RES]VE >MY ( ! PROLET>IAT & UNEMPLOYM5T 9 ! HOME C\NTRIES ( IMP]IALI/ CAPITAL1 9 ! OLD CAPITALI/ C\NTRIES1 :IL/ 9 ! COLONIES CAPITAL IS ALWAYS COMPLA9+ AB\T LABOR %ORTAGE6 ,?US1 9 ITS URGE = NEW WAGE PROLET>IANS1 IMP]IALI/ CAPITAL ESCAPES FROM ?OSE C\NTRIES :]E RAPID TE*NOLOGICAL PROGRESS1 ! 5]GETIC PROCESS ( ! PROLET>IANIZATION ( ! 9T]M$IATE /RATA & ! DE/RUCTION ( ! PROLET>IAN FAMILY >E CONT9UALLY REPL5I%+ ! LABOR RES]VE2 IT PREF]S TO FL[ TO ! V]Y P>TS ( ! WORLD 9 :I* RIGID SOCIAL RELATIONS 9 TRADITIONAL =MS ( PROP]TY KEEP ! LABOR =CE 9 SU* /RONG %ACKLES ?AT IT TAKES DECADES ( ! CRU%+ IMPACT ( ! DOM9ATION ( CAPITAL TO PRODUCE1 AS ! F9AL RESULT ( ?IS DOM9ATION1 A SEMI-USABLE PROLET>IAT6 

,BAU] FANTASIZES AB\T A 'GIANT' /REAM ( WORK]S COM+ FROM ! COLONIES TO ! OLD C5T]S ( CAPITALI/ PRODUCTION1 :ILE ANYONE ) EYES CAN SEE ?AT1 ON ! CONTR>Y1 WORK]S EMIGRATE TO ! COLONIES1 ALONG ) ! EMIGRATION ( CAPITAL FROM ! OLD C5T]S TO ! COLONIES1 :I*1 AS ,M>X SAYS1 '9DE$ ONLY FOLL[S EMIGRAT+ CAPITAL'4 ,9DE$1 LOOK AT ! 'GIANT' /REAM ( PEOPLE FROM ,EUROPE SETTL+ 9 ,NOR? & ,S\? ,AM]ICA1 ,S\? ,AFRICA & ,AU/RALIA 9 ! N9ETE5? C5TURY4 ,LOOK AT ! DIFF]5T MODES ( 'MOD]ATE' SLAV]Y & =C$ LABOR ,EUROPEAN & ,NOR? ,AM]ICAN CAPITAL EMPLOYS TO SECURE ! NECESS>Y M9IMUM ( LABOR 9 ! ,AFRICAN COLONIES1 9 ! ,WE/ ,9DIES1 ,S\? ,AM]ICA & ! ,S\? ,SEAS4 

,ACCORD+ TO ,BAU]1 ,5GLI% CAPITAL F\<T LONG & BLOODY W>S ) ,*9A = HALF A C5TURY TO SECURE A 'GIANT' /REAM ( ,*9ESE COOLIES TO MEET ! DRA/IC LACK ( ,5GLI% WORK]S4 ,! SAME URG5T NE$ MU/ HAVE CAUS$ ! UNIT$ ,EUROPEAN CRUSADE AGA9/ ,*9A AT ! TURN ( ! C5TURY4 ,FR5* CAPITAL WAS OBVI\SLY MA9LY AFT] ! ,B]B]S 9 ,MOROCCO TO COMP5SATE = ITS DEFICIT ( ,FR5* PROLET>IANS4 ,NATURALLY1 ,AU/RIAN IMP]IALISM 9 ,S]BIA & ,ALBANIA WAS PRIM>ILY HUNT+ = FRE% LABOR4 ,G]MAN CAPITAL IS N[ SC\R+ ,ASIA ,M9OR & ,MESOPOTAMIA ) A TOR* = ,TURKI% 9DU/RIAL WORK]S1 ALL ! MORE AS !RE WAS SU* A %OCK+ LACK ( LABOR 9 ALL SECTORS 9 ,G]MANY BE=E ! ,WORLD ,W>6 ,CLE>LY1 ,OTTO ,BAU]1 'AS A MAN :O SPECULATES'1 HAS YET AGA9 =GOTT5 \R PLA9 E>?4 ,HE COLD-BLOOD$LY 9T]PRETS MOD]N IMP]IALISM AS CAPITALISM 9 SE>* ( NEW LABOR4 ,?IS IS MEANT TO BE ! NUCLEUS1 ! 9N]MO/ PR9CIPLE MOTIVAT+ IMP]IALISM4 ,ONLY AS A MATT] ( SECOND>Y IMPORTANCE DOES HE M5TION ! NE$ = OV]SEAS RAW MAT]IALS1 :I* HAS NO ECONOMIC CONNECTION ) HIS !ORY ( ACCUMULATION1 & COMES LIKE A BOLT FROM ! BLUE4 ,IF ACCUMULATION 9 ! SPECIFIC 'ISOLAT$ CAPITALI/ SOCIETY' CAN FL\RI% AS WELL AS ,BAU] %[S US1 !N IT MU/ HAVE AT H& ALL ! NECESS>Y NATURAL TREASURES & GIFTS FROM HEAV5 ON ! MIRACUL\S ISL& - QUITE DIFF]5T FROM ! MIS]ABLE CAPITALISM ( H>% REALITY1 :I* FROM ITS V]Y 9CEPTION HAS DEP5D$ = ITS EXI/5CE ON ! WORLD'S MEANS ( PRODUCTION4 ,& F9ALLY1 9 ! ?IRD PLACE1 ,BAU] QUITE CASUALLY M5TIONS 9 TWO S5T5CES ! ACQUISITION ( NEW M>KETS AS A M9OR MOTIVE = IMP]IALISM1 & ONLY AS ANO!R MEANS TO MITIGATE ! CRISES4 ,?IS1 ( C\RSE1 IS ANO!R 'NICE ?+ TO SAY'2 AS IS COMMONLY KN[N ON \R PLANET1 ANY CONSID]ABLE EXPANSION ( ! M>KET IS FOLL[$ BY AN 5ORM\S %>P5+ ( ! CRISES4 

,?IS IS ! 'EXPLANATION ( IMP]IALISM' ,OTTO ,BAU] F9ALLY GIVES3 ',9 \R OP9ION CAPITALISM IS POSSIBLE EV5 )\T EXPANSION4'.<#c.> ,?IS IS ! CULM9ATION ( HIS !ORY ( 'ISOLAT$' ACCUMULATION1 & WE >E LEFT ) ! CONSOL+ ASSURANCE ?AT ONE WAY OR ! O!R1 ') OR )\T EXPANSION CAPITALISM WILL BR+ AB\T ITS [N D[NFALL 444' 

,?AT IS HI/ORICAL MAT]IALI/ RESE>* ME?OD 9 'EXP]T' EXECUTION4 ,SO CAPITALISM IS ALSO CONCEIVABLE EV5 )\T EXPANSION4 ,9DE$1 = ,M>X ! URGE ( CAPITALISM TO EXP& SUDD5LY =MS A VITAL ELEM5T1 ! MO/ \T/&+ FEATURE ( MOD]N DEVELOPM5T2 9DE$1 EXPANSION HAS ACCOMPANI$ ! 5TIRE HI/ORY ( CAPITALISM & 9 ITS PRES5T1 F9AL1 IMP]IALI/ PHASE1 IT HAS ADOPT$ SU* AN UNBRIDL$ *>ACT] ?AT IT PUTS ! :OLE CIVILIZATION ( MANK9D 9 QUE/ION4 ,9DE$1 ?IS UNTAMABLE DRIVE ( CAPITAL TO EXP& HAS GRADUALLY CON/RUCT$ A WORLD M>KET1 CONNECT$ ! MOD]N WORLD ECONOMY & SO LAID ! HI/ORICAL BASIS = SOCIALISM4 ,9DE$1 ! PROLET>IAN ,9T]NATIONAL1 :I* IS TO MAKE AN 5D ( CAPITALISM1 IS ITSELF ONLY A PRODUCT ( ! GLOBAL EXPANSION ( CAPITAL4 ,BUT ALL ?IS IS QUITE UNNECESS>Y1 A DIFF]5T HI/ORICAL C\RSE IS CONCEIVABLE4 ,9DE$1 IS ANY?+ '9CONCEIVABLE' = A P[]FUL ?9K]8 ',9 \R OP9ION CAPITALISM IS CONCEIVABLE EV5 )\T EXPANSION4' ,9 \R OP9ION MOD]N DEVELOPM5T IS CONCEIVABLE EV5 )\T ! DISCOV]Y ( ,AM]ICA & ! CIRCUMNAVIGATION ( ,AFRICA4 ,IF ONE ?9KS AB\T IT = LONG 5\< ONE CAN EV5 CONCEIVE ( MAN'S HI/ORY )\T CAPITALISM4 ,F9ALLY1 ! SOL> SY/EM IS CONCEIVABLE )\T \R E>?4 ,G]MAN PHILOSOPHY IS P]HAPS CONCEIVABLE )\T ITS 'METAPHYSICAL CLUMS9ESS'4 ,ONLY ONE ?+ SEEMS TO US TO BE QUITE 9CONCEIVABLE3 ?AT AN (FICIAL ,M>XISM :I* ?9KS 9 ?IS WAY C\LD1 AS ! 9TELLECTUAL AVANT G>DE ( ! ,LABOR MOVEM5T 9 ! PHASE ( IMP]IALISM1 HAVE RESULT$ 9 SOME?+ O!R ?AN ! MIS]ABLE FIASCO ( ,SOCIAL ,DEMOCRACY :I* WE HAVE TO WITNESS TODAY 9 ! ,WORLD ,W>4 

,( C\RSE1 TACTICS & /RATEGY 9 ! PRACTICAL /RUGGLE >E NOT DIRECTLY DEP5D5T ON :E!R ONE CONSID]S ! SECOND VOLUME ( ,CAPITAL TO BE A F9I%$ WORK OR JU/ A FRAGM5T1 :E!R ONE BELIEVES 9 ! POSSIBILITY ( ACCUMULATION 9 AN 'ISOLAT$' CAPITALI/ SOCIETY OR NOT1 :E!R ONE 9T]PRETS ,M>X'S MODELS ( REPRODUCTION ONE WAY OR ! O!R4 ,?\S&S ( PROLET>IANS >E GOOD & BRAVE FI<T]S = ! AIMS ( SOCIALISM )\T KN[+ AB\T !SE !ORETICAL PROBLEMS 4 = ! REASONS ( A COMMON BASIC UND]/&+ ( ! CLASS /RUGGLE1 AN 9CORRUPTIBLE CLASS 9/9CT & ! REVOLUTION>Y TRADITIONS ( ! MOVEM5T4 ,BUT !RE IS ! CLOSE/ CONNECTION BETWE5 ! UND]/&+ & TREATM5T ( !ORETICAL PROBLEMS & ! PRACTICE ( POLITICAL P>TIES OV] LONG P]IODS4 ,9 ! DECADE BE=E ! ,WORLD ,W>1 ,G]MAN ,SOCIAL ,DEMOCRACY1 AS ! 9T]NATIONAL METROPOLIS ( PROLET>IAN 9TELLECTUAL LIFE1 DISPLAY$ TOTAL H>MONY 9 !ORETICAL AS WELL AS PRACTICAL >EAS2 9 BO? >EAS ! SAME 9DECISION & OSSIFICATION APPE>$1 & IT WAS ! SAME IMP]IALISM AS ! OV]:ELM+LY DOM9ANT MANIFE/ATION ( PUBLIC LIFE :I* DEFEAT$ ! !ORETICAL AS WELL AS ! POLITICAL G5]AL /AFF ( ,SOCIAL ,DEMOCRACY4 ,! PR\D MONOLI?IC $IFICE ( (FICIAL ,G]MAN ,SOCIAL ,DEMOCRACY WAS REVEAL$ AT ITS FIR/ HI/ORICAL TRIAL TO BE A ,POTEMK9 VILLAGE4.<#d.> ,SIMIL>LY1 ! APP>5T !ORETICAL 'EXP]T KN[L$GE' & 9FALLIBILITY ( (FICIAL ,M>XISM1 :I* BLESS$ EV]Y PRACTICE ( ! MOVEM5T1 TURN$ \T TO BE A GR&IOSE FACADE HID+ ITS 9N] 9SECURITY & 9ABILITY TO ACT BEH9D 9TOL]ANT & 9SOL5T DOGMATISM4 ,! SAD R\T9E MOV+ ALONG ! OLD TRACKS ( ! 'TRI$ & TE/$ TACTICS'1 I4E4 NO?+ BUT P>LIAM5T>IANISM1 CORRESPOND$ TO ! !ORETICAL EPIGONS :O CLUNG TO ! MA/]'S =MULA :IL/ R5\NC+ ! LIV+ SPIRIT ( HIS TEA*+S4 ,WE HAVE ALREADY NOT$ 9 PASS+ SOME PRO( ( ?IS ?\<TLESSNESS 9 ! 'SUPREME C\RT' ( 'EXP]TS'4 

,BUT ! CONNECTION ) PRACTICE IS 9 \R CASE EV5 MORE OBVI\S ?AN IT MAY SEEM AT FIR/ SI<T4 ,IT BASICALLY MEANS TWO DIFF]5T ME?ODS ( FI<T+ IMP]IALISM4 

,M>X'S ANALYSIS ( ACCUMULATION WAS DEVELOP$ AT A TIME :5 IMP]IALISM HAD NOT YET 5T]$ ON TO ! WORLD /AGE4 ,! F9AL & ABSOLUTE RULE ( CAPITAL OV] ! WORLD - ! PRECONDITION ON :I* ,M>X BASES HIS ANALYSIS - 5TAILS ! A PRIORI EXCLUSION ( ! PROCESS ( IMP]IALISM4 ,BUT - & H]E LIES ! DIFF]5CE BETWE5 ! ]RORS ( A ,M>X & ! CRASS BLUND]S ( HIS EPIGONS - 9 ?IS CASE EV5 ! ]ROR LEADS ON TO SOME?+ FRUITFUL4 ,! PROBLEM POS$ & LEFT UNANSW]$ 9 ! SECOND VOLUME ( ,CAPITAL - TO %[ H[ ACCUMULATION TAKES PLACE UND] ! EXCLUSIVE RULE ( CAPITALISM - IS 9SOLUBLE4 ,ACCUMULATION IS SIMPLY IMPOSSIBLE UND] !SE CONDITIONS4 ,?IS APP>5TLY RIGID !ORETICAL CONTRADICTION HAS ONLY TO BE TRANSLAT$ 9TO HI/ORICAL DIALECTICS1 9 ?AT IT CON=MS TO ! SPIRIT ( ! 5TIRE ,M>XI/ TEA*+ & WAY ( ?9K+1 & ! CONTRADICTION 9 ,M>X'S MODEL BECOMES ! LIV+ MIRROR ( ! GLOBAL C>E] ( CAPITALISM1 ( ITS =TUNE & FALL4 

,ACCUMULATION IS IMPOSSIBLE 9 AN EXCLUSIVELY CAPITALI/ 5VIRONM5T4 ,!RE=E1 WE F9D ?AT CAPITAL HAS BE5 DRIV5 S9CE ITS V]Y 9CEPTION TO EXP& 9TO NON-CAPITALI/ /RATA & NATIONS1 RU9 >TISANS & PEASANTRY1 PROLET>IANIZE ! 9T]M$IATE /RATA1 ! POLITICS ( COLONIALISM1 ! POLITICS ( 'OP5+-UP' & ! EXPORT ( CAPITAL4 ,! DEVELOPM5T ( CAPITALISM HAS BE5 POSSIBLE ONLY ?R\< CON/ANT EXPANSION 9TO NEW DOMA9S ( PRODUCTION & NEW C\NTRIES4 ,BUT ! GLOBAL DRIVE TO EXP& LEADS TO A COLLISION BETWE5 CAPITAL & PRE-CAPITALI/ =MS ( SOCIETY1 RESULT+ 9 VIOL5CE1 W>1 REVOLUTION3 9 BRIEF1 CATA/ROPHES FROM />T TO F9I%1 ! VITAL ELEM5T ( CAPITALISM4 

,CAPITAL ACCUMULATION PROGRESSES & EXP&S AT ! EXP5SE ( NON-CAPITALI/ /RATA & C\NTRIES1 SQUEEZ+ !M \T AT AN EV] FA/] RATE4 ,! G5]AL T5D5CY & F9AL RESULT ( ?IS PROCESS IS ! EXCLUSIVE WORLD RULE ( CAPITALI/ PRODUCTION4 ,ONCE ?IS IS REA*$1 ,M>X'S MODEL BECOMES VALID3 ACCUMULATION1 I4E4 FUR!R EXPANSION ( CAPITAL1 BECOMES IMPOSSIBLE4 ,CAPITALISM COMES TO A DEAD 5D1 IT CANNOT FUNCTION ANY MORE AS ! HI/ORICAL VEHICLE = ! UNFOLD+ ( ! PRODUCTIVE =CES1 IT REA*ES ITS OBJECTIVE ECONOMIC LIMIT4 ,! CONTRADICTION 9 ,M>X'S MODEL ( ACCUMULATION IS1 SE5 DIALECTICALLY1 ONLY ! LIV+ CONTRADICTION BETWE5 ! B\NDLESS EXPANSIONI/ DRIVE & ! LIMIT CAPITAL CREATES = ITSELF ?R\< PROGRESSIVE DE/RUCTION ( ALL O!R =MS ( PRODUCTION2 IT IS ! CONTRADICTION BETWE5 ! HUGE PRODUCTIVE =CES :I* IT AWAK5S ?R\<\T ! WORLD DUR+ ! PROCESS ( ACCUMULATION & ! N>R[ BASIS TO :I* IT IS CONF9$ BY ! LAWS ( ACCUMULATION4 ,M>X'S MODEL ( ACCUMULATION - :5 PROP]LY UND]/OOD - IS PRECISELY 9 ITS 9SOLUBILITY ! EXACT PROGNOSIS ( ! ECONOMICALLY UNAVOIDABLE D[NFALL ( CAPITALISM AS A RESULT ( ! IMP]IALI/ PROCESS ( EXPANSION :OSE SPECIFIC TASK IT IS TO REALIZE ,M>X'S ASSUMPTION3 ! G5]AL & UNDIVID$ RULE ( CAPITAL4 

,CAN ?IS EV] REALLY HAPP58 ,?AT IS1 ( C\RSE1 !ORETICAL FICTION1 PRECISELY BECAUSE CAPITAL ACCUMULATION IS NOT JU/ AN ECONOMIC BUT ALSO A POLITICAL PROCESS4 

,IMP]IALISM IS AS MU* A HI/ORICAL ME?OD = PROLONG+ CAPITAL'S EXI/5CE AS IT IS ! SURE/ WAY ( SETT+ AN OBJECTIVE LIMIT TO ITS EXI/5CE AS FA/ AS POSSIBLE4 ,?IS IS NOT TO SAY ?AT ! F9AL PO9T NE$ ACTUALLY BE ATTA9$4 ,! V]Y T5D5CY ( CAPITALI/ DEVELOPM5T T[>DS ?IS 5D IS EXPRESS$ 9 =MS :I* MAKE ! CONCLUD+ PHASE ( CAPITALISM A P]IOD ( CATA/ROPHES4.<#e.> 

,! MORE RU?LESSLY CAPITAL USES MILIT>ISM TO PUT AN 5D TO NON-CAPITALI/ /RATA 9 ! \TSIDE WORLD & AT HOME1 ! MORE IT DEPRESSES ! CONDITIONS ( EXI/5CE ( ALL WORK+ /RATA1 ! MORE ! DAY-TO-DAY HI/ORY ( CAPITAL ACCUMULATION ON ! WORLD /AGE *ANGES 9TO AN 5DLESS *A9 ( POLITICAL & SOCIAL CATA/ROPHES & CONVULSIONS2 !SE LATT]1 TOGE!R ) ! P]IODIC ECONOMIC CATA/ROPHES 9 ! %APE ( CRISES1 MAKE CONT9U$ ACCUMULATION IMPOSSIBLE & ! REBELLION ( ! 9T]NATIONAL WORK+ CLASS AGA9/ ! RULE ( CAPITAL NECESS>Y1 EV5 BE=E IT HAS ECONOMICALLY REA*$ ! LIMITS IT SET = ITSELF4.<#f.> 

,H]E1 AS ELSE:]E 9 HI/ORY1 !ORY IS P]=M+ ITS DUTY IF IT %[S US ! T5D5CY ( DEVELOPM5T1 ! LOGICAL CONCLUSION TO :I* IT IS OBJECTIVELY HEAD+4 ,!RE IS AS LITTLE *ANCE ( ?IS CONCLUSION BE+ REA*$ AS !RE WAS = ANY O!R PREVI\S P]IOD ( SOCIAL DEVELOPM5T TO UNFOLD ITSELF COMPLETELY4 ,! NE$ = IT TO BE REA*$ BECOMES LESS AS SOCIAL CONSCI\SNESS1 EMBODI$ ?IS TIME 9 ! SOCIALI/ PROLET>IAT1 BECOMES MORE 9VOLV$ AS AN ACTIVE FACTOR 9 ! BL9D GAME ( =CES4 ,9 ?IS CASE1 TOO1 A CORRECT CONCEPTION ( ,M>X'S !ORY (F]S ! MO/ FRUITFUL SUGGE/IONS & ! MO/ P[]FUL /IMULUS = ?IS CONSCI\SNESS4 

,MOD]N IMP]IALISM IS NOT ! PRELUDE TO ! EXPANSION ( CAPITAL1 AS 9 ,BAU]'S MODEL2 ON ! CONTR>Y1 IT IS ONLY ! LA/ *APT] ( ITS HI/ORICAL PROCESS ( EXPANSION3 IT IS ! P]IOD ( UNIV]SALLY %>P5$ WORLD COMPETITION BETWE5 ! CAPITALI/ /ATES = ! LA/ REMA9+ NON-CAPITALI/ >EAS ON E>?4 ,9 ?IS F9AL PHASE1 ECONOMIC & POLITICAL CATA/ROPHE IS JU/ AS MU* ! 9TR9SIC1 NORMAL MODE ( EXI/5CE = CAPITAL AS IT WAS 9 ! 'PRIMITIVE ACCUMULATION' ( ITS DEVELOPM5T PHASE4 ,! DISCOV]Y ( ,AM]ICA & ! SEA R\TE TO ,9DIA W]E NOT JU/ ,PROME!AN A*IEVEM5TS ( ! HUMAN M9D & CIVILIZATION BUT ALSO1 & 9SEP>ABLY1 A S]IES ( MASS MURD]S ( PRIMITIVE PEOPLES 9 ! ,NEW ,WORLD & L>GE-SCALE SLAVE TRAD+ ) ! PEOPLES ( ,AFRICA & ,ASIA4 ,SIMIL>LY1 ! ECONOMIC EXPANSION ( CAPITAL 9 ITS IMP]IALI/ F9AL PHASE IS 9SEP>ABLE FROM ! S]IES ( COLONIAL CONQUE/S & ,WORLD ,W>S :I* WE >E N[ EXP]I5C+4 ,:AT DI/+UI%ES IMP]IALISM AS ! LA/ /RUGGLE = CAPITALI/ WORLD DOM9ATION IS NOT SIMPLY ! REM>KABLE 5]GY & UNIV]SALITY ( EXPANSION BUT - & ?IS IS ! SPECIFIC SIGN ?AT ! CIRCLE ( DEVELOPM5T IS BEG9N+ TO CLOSE - ! RETURN ( ! DECISIVE /RUGGLE = EXPANSION FROM ?OSE >EAS :I* >E BE+ F\<T OV] BACK TO ITS HOME C\NTRIES4 ,9 ?IS WAY1 IMP]IALISM BR+S CATA/ROPHE AS A MODE ( EXI/5CE BACK FROM ! P]IPH]Y ( CAPITALI/ DEVELOPM5T TO ITS PO9T ( DEP>TURE4 ,! EXPANSION ( CAPITAL1 :I* = F\R C5TURIES HAD GIV5 ! EXI/5CE & CIVILIZATION ( ALL NON-CAPITALI/ PEOPLES 9 ,ASIA1 ,AFRICA1 ,AM]ICA & ,AU/RALIA OV] TO CEASELESS CONVULSIONS & G5]AL & COMPLETE DECL9E1 IS N[ PLUNG+ ! CIVILIZ$ PEOPLES ( ,EUROPE ITSELF 9TO A S]IES ( CATA/ROPHES :OSE F9AL RESULT CAN ONLY BE ! DECL9E ( CIVILIZATION OR ! TRANSITION TO ! SOCIALI/ MODE ( PRODUCTION4 ,SE5 9 ?IS LI<T1 ! POSITION ( ! PROLET>IAT ) REG>D TO IMP]IALISM LEADS TO A G5]AL CONFRONTATION ) ! RULE ( CAPITAL4 ,! SPECIFIC RULES ( ITS CONDUCT >E GIV5 BY ?AT HI/ORICAL ALT]NATIVE4 

,ACCORD+ TO (FICIAL 'EXP]T' ,M>XISM1 ! RULES >E QUITE DIFF]5T4 ,! BELIEF 9 ! POSSIBILITY ( ACCUMULATION 9 AN 'ISOLAT$ CAPITALI/ SOCIETY'1 ! BELIEF ?AT CAPITALISM IS CONCEIVABLE EV5 )\T EXPANSION1 IS ! !ORETICAL =MULA ( A QUITE DI/9CT TACTICAL T5D5CY4 ,! LOGICAL CONCLUSION ( ?IS IDEA IS TO LOOK ON ! PHASE ( IMP]IALISM NOT AS A HI/ORICAL NECESSITY1 AS ! DECISIVE CONFLICT = SOCIALISM1 BUT AS ! WICK$ 9V5TION ( A SMALL GR\P ( PEOPLE :O PR(IT FROM IT4 ,?IS LEADS TO CONV9C+ ! B\RGEOISIE ?AT1 EV5 FROM ! PO9T ( VIEW ( !IR CAPITALI/ 9T]E/S1 IMP]IALISM & MILIT>ISM >E H>MFUL1 ?US ISOLAT+ ! ALLEG$ SMALL GR\P ( B5EFICI>IES ( ?IS IMP]IALISM & =M+ A BLOC ( ! PROLET>IAT ) BROAD SECTIONS ( ! B\RGEOISIE 9 ORD] TO 'MOD]ATE' IMP]IALISM1 />VE IT \T BY 'P>TIAL DIS>MAM5T' & 'DRAW ITS CLAWS'6 ,JU/ AS LIB]ALISM 9 ! P]IOD ( ITS DECL9E APPEALS = A WELL-9=M$ AS AGA9/ AN ILL-9=M$ MON>*Y1 ! ',M>XI/ C5T]' APPEALS = ! B\RGEOISIE IT WILL $UCATE AS AGA9/ ! ILL-ADVIS$ ONE1 = 9T]NATIONAL DIS>MAM5T TREATIES AS AGA9/ ! DISA/] C\RSE ( IMP]IALISM1 = ! PEACEFUL F$]ATION ( DEMOCRATIC.- NATION /ATES AS AGA9/ ! /RUGGLE ( ! GREAT P[]S = >M$ WORLD DOM9ATION4 ,! F9AL CONFRONTATION BETWE5 PROLET>IAT & CAPITAL TO SETTLE !IR WORLD-HI/ORICAL CONTRADICTION IS CONV]T$ 9TO ! UTOPIA ( A HI/ORICAL COMPROMISE BETWE5 PROLET>IAT & B\RGEOISIE TO 'MOD]ATE' ! IMP]IALI/ CONTRADICTIONS BETWE5 CAPITALI/ /ATES4.<#g.> 

,OTTO ,BAU] CONCLUDES HIS CRITICISM ( MY BOOK ) ! FOLL[+ WORDS3 

,CAPITALISM WILL NOT COLLAPSE FROM ! ME*ANICAL IMPOSSIBILITY ( REALIZ+ SURPLUS VALUE4 ,IT WILL BE DEFEAT$ BY ! REBELLION TO :I* IT DRIVES ! MASSES4 ,NOT ONLY !N1 :5 ! LA/ PEASANT & ! LA/ PETTY-B\RGEOIS *ANGE 9TO WAGE-WORK]S1 ?US NO LONG] PROVID+ A SURPLUS M>KET1 WILL CAPITALISM DIS9TEGRATE3 IT WILL BE CUT D[N MU* E>LI] BY ! GR[+ REBELLION ( ! EV]-RIS+ WORK+ CLASS1 $UCAT$1 UNIT$ & ORGANIZ$ BY ! ME*ANISM ( ! CAPITALI/ MODE ( PRODUCTION ITSELF4 

,9 ORD] TO DIRECT ?IS ADVICE TO ME SPECIFICALLY1 ,BAU]1 A MA/] ( AB/RACTION1 HAD TO AB/RACT NOT ONLY FROM ! 5TIRE MEAN+ & DIRECTION ( MY CONCEPTION ( ACCUMULATION1 BUT ALSO FROM ! CLE> TEXT ( MY /ATEM5TS4 ,HIS [N BRAVE WORDS1 H[EV]1 CAN ONCE AGA9 ONLY BE CON/RU$ AS A TYPICAL AB/RACTION ( 'EXP]T' ,M>XISM1 I4E4 AS ! H>MLESS BUT %ORT-LIV$ FLICK]+ ( 'PURE ?\<T'4 ,?IS IS DEMON/RAT$ BY ! POSITION ( ?IS GR\P ( !ORETICIANS T[>DS ! \TBREAK ( ! ,WORLD ,W>4 ,! REBELLION ( ! EV]-RIS+1 $UCAT$ & ORGANIZ$ WORK+ CLASS SUDD5LY *ANG$ 9TO ! POLICY ( 'AB/5TION' ON EPO*-MAK+ DECISIONS ( WORLD HI/ORY & 'SIL5CE' UNTIL ! BELLS ( PEACE R+ \T4 ',! ROAD TO P[]'1 BRILLIANTLY ILLU/RAT$ D[N TO ! LA/ DETAIL 9 A P]IOD ( S]5E PEACE1 :5 !RE WAS /ILL NOT A S\ND 9 ! TREETOPS1.<#h.> *ANG$ C\RSE /RAI<T TO ! 'ROAD TO IMPOT5CE' AT ! FIR/ GU/ ( REALITY4 ,! EPIGONS :O HELD ! (FICIAL !ORETICAL LEAD]%IP ( ! ,LABOR MOVEM5T 9 ! LA/ DECADE BANKRUPT$ !MSELVES AT ! FIR/ \TBREAK ( ! WORLD CRISIS & H&$ LEAD]%IP OV] TO IMP]IALISM4 ,A CLE> UND]/&+ ( !SE CONNECTIONS IS ONE ( ! ESS5TIAL CONDITIONS = ! RECON/RUCTION ( A PROLET>IAN POLICY :I* W\LD MEASURE UP TO ITS HI/ORICAL TASKS 9 ! P]IOD ( IMP]IALISM4 

,ONCE AGA91 ! SELF-PITY+ WILL BEWAIL ! FACT ?AT ',M>XI/S >E >GU+ AMONG !MSELVES'1 ?AT TRI$ & TE/$ 'AU?ORITIES' >E BE+ CONTE/$4 ,BUT ,M>XISM IS NOT A DOZ5 PEOPLE :O ASCRIBE ! RI<T TO 'EXP]T KN[L$GE' TO EA* O!R & BE=E :OM ! MASS ( FAI?FUL ,MOSLEMS MU/ PRO/RATE !MSELVES 9 BL9D TRU/4 

,M>XISM IS A REVOLUTION>Y WORLD \TLOOK :I* MU/ ALWAYS /RIVE = NEW DISCOV]IES1 :I* COMPLETELY DESPISES RIGIDITY 9 ONCE-VALID !SES1 & :OSE LIV+ =CE IS BE/ PRES]V$ 9 ! 9TELLECTUAL CLA% ( SELF-CRITICISM & ! R\< & TUMBLE ( HI/ORY4 ,?US1 ,I AGREE ) ,LESS+1 :O WROTE TO ! Y\NG ,REIM>US3 

',BUT :AT CAN ONE DO6 ,LET EA* MAN SAY :AT HE ?9KS TO BE ! TRU?1 & LEAVE TRU? ITSELF TO ,GOD4' 

,FOOTNOTES 

.<#a.>,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#d1 P4#h#g#c4 _<P4#a#h_> 

.<#b.>LOC4 CIT4 _<P4#a#i_> 

.<#c.>LOC4 CIT41 P4#h#g#d4 _<P4#a#i_> 

.<#d.> .<,POTEMK9 VILLAGES4 ,GREGORY ,ALEX&ROVI* ,POTEMK9 7#a#g#b#d-#i#a71 ! MO/ \T/&+ P]SONALITY ( ! TIME ( ,CA!R9E ! ,GREAT1 & SAID TO HAVE BE5 ,CA!R9E'S LOV]1 WAS AU?ORIZ$ BY ! ,EMPRESS TO ORGANIZE ',NEW ,RUSSIA' 9 ! ,S\?4 ,HE BR\<T OLD PORTS UP TO DATE1 SET UP NEW VILLAGES & F\ND$ ,EKAT]9ISLAV 7,CA!R9E'S ,GLORY74 ,HIS CRITICS ALLEG$ ?AT HIS VILLAGES W]E C>DBO>D FRONTS1 BUILT TO DECEIVE ! ,EMPRESS :5 %E T\R$ ! >EA4.> 

.<#e.> ,LUXEMBURG1 ,! ,ACCUMULATION ( ,CAPITAL1 P4#d#b#e4 .<,SEE P4#d#d#f1 ,LONDON $N4.> 

.<#f.>IBID41 P4#d#d#e4 .<P4#d#f#f1 ,LONDON $N4.> 

.<#g.> ,ECK/E91 :O D5\NC$ ME = ! 'CATA/ROPHE !ORY' 9 HIS REVIEW 9 ,VORW>TS ( ,JANU>Y #aiac BY SIMPLY BORR[+ FROM ! VOCABUL>Y ( ,KOLB-,HE9E-,DAVID3 7',! PRACTICAL CONCLUSION :I* ,COMRADE ,LUXEMBURG CON/RUCTS ON ! !ORY ( NECESSITY ( NON-CAPITALI/ CONSUM]S1 ESPECIALLY ! CATA/ROPHE !ORY1 FALLS ) ! !ORETICAL ASSUMPTION'7 - IS D5\NC+ ME N[1 S9CE ! SWAMP !ORETICIANS HAVE TAK5 A 'LEFT' TURN1 = ! OPPOSITE CRIME ( AID+ & ABETT+ ! RI<T-W+ ,SOCIAL ,DEMOCRACY4 ,HE PO9TS \T EAG]LY ?AT ,L5S*1 ! SAME ,L5S* :O GRAVITAT$ TO ,KOLB-,HE9E-,DAVID 9 ! ,WORLD ,W>1 APPROV$ ( MY BOOK & REVIEW$ IT FAVORABLY 9 ! ,LEIPZIG] ,VOLKSZEITUNG4 ,IS ! CONNECTION NOT OBVI\S8 ,SUSPICI\S1 HI<LY SUSPICI\S6 ',= ?AT V]Y REASON' ,ECK/E9 HAD FELT HIMSELF OBLIG$ TO DE/ROY MY BOOK SO ?OR\<LY 9 ,VORW>TS4 ,BUT ! V]Y SAME ,L5S* APPROV$ ( ,M>X'S ,CAPITAL EV5 MORE - BE=E ! W>4 ,YES1 & A MAN CALL$ ,MAX ,GRUNWALD WAS = YE>S AN 5?USIA/IC 9T]PRET] ( ,M>X'S ,CAPITAL AT ! ,B]L9 ,WORK]S' ,$UCATION ,S*OOL4 ,IS ?AT NOT CONV9C+ PRO( ?AT ,M>X'S ,CAPITAL DIRECTLY LEADS ONE TO *E] = ,5GL&'S DE/RUCTION & WRITE BIR?DAY >TICLES = ,H9D5BURG8 ,BUT ?AT SORT ( BLUND] HAPP5S TO ,ECK/E91 RU9+ HIS 9T5TIONS4 ,AS IS WELL KN[N1 ALREADY ,BISM>CK COMPLA9$ (T5 AB\T ! BL9D EAG]NESS ( HIS J\RNALI/IC REPTILES4 

.<#h.> .<',9 ALL5 ,WIPFELN ,RUH' - QUOTATION FROM ,GOE! - ,TRANS4.> 

,*RONOLOGY 3 
,M>* #f1 #bba 3 ,! ,ACCUMULATION ( ,CAPITAL3 ,AN ,ANTI-,CRITIQUE -- ,ADD$4 
,JANU>Y #i1 #bbb 3 ,! ,ACCUMULATION ( ,CAPITAL3 ,AN ,ANTI-,CRITIQUE -- ,UPDAT$4 

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