,SECTION #a1 ,*APT] #b 
,! ,PROBLEM ( ,REPRODUCTION3 ,QUESNAY'S & ,ADAM ,SMI?'S ,ANALYSES ( ! ,PROCESS ( ,REPRODUCTION 

,PEOPLE 3 

,AU?OR 3 ,ROSA ,LUXEMBURG 

,TEXT 3 

,SO F> WE HAVE TAK5 ACC\NT ONLY ( ! 9DIVIDUAL CAPITALI/ 9 \R SURVEY ( REPRODUCTION2 HE IS ITS TYPICAL REPRES5TATIVE1 ITS AG5T1 = REPRODUCTION IS 9DE$ BR\<T AB\T 5TIRELY BY 9DIVIDUAL CAPITALI/ 5T]PRISES4 ,?IS APPROA* HAS ALREADY %[N US ?AT ! PROBLEM 9VOLVES DIFFICULTIES 5\<4 ,YET !SE DIFFICULTIES 9CREASE TO AN EXTRAORD9>Y DEGREE & BECOME EV5 MORE COMPLICAT$1 :5 WE TURN \R ATT5TION FROM ! 9DIVIDUAL CAPITALI/ TO ! TOTALITY ( CAPITALI/S4 

,A SUP]FICIAL GLANCE SUFFICES TO %[ ?AT CAPITALI/ REPRODUCTION AS A SOCIAL :OLE MU/ NOT BE REG>D$ SIMPLY AS A ME*ANICAL SUMMATION ( ALL ! SEP>ATE PROCESSES ( 9DIVIDUAL CAPITALI/ REPRODUCTION4 ,WE HAVE SE51 = 9/ANCE1 ?AT ONE ( ! FUNDAM5TAL CONDITIONS = 5L>G$ REPRODUCTION BY AN 9DIVIDUAL CAPITALI/ IS A CORRESPOND+ 9CREASE ( HIS OPPORTUNITIES TO SELL ON ! COMMODITY M>KET4 ,BUT ! 9DIVIDUAL CAPITALI/ MAY NOT ALWAYS EXP& BECAUSE ( AN ABSOLUTE 9CREASE 9 ! ABSORPTIVE CAPACITY ( ! M>KET1 BUT ALSO AS A RESULT ( ! COMPETITIVE /RUGGLE1 AT ! CO/ ( O!R 9DIVIDUAL CAPITALI/S4 ,?US ONE CAPITALI/ MAY W9 :AT ANO!R OR MANY O!RS :O HAVE BE5 %\LD]$ FROM ! M>KET MU/ WRITE (F AS A LOSS4 ,?IS PROCESS WILL 5ABLE ONE CAPITALI/ TO 9CREASE HIS REPRODUCTION BY ! AM\NT ?AT IT COMPELS O!RS BY LOSSES TO RE/RICT !IR [N4 ,ONE CAPITALI/ WILL BE ABLE TO 5GAGE 9 5L>G$ REPRODUCTION BECAUSE O!RS CANNOT EV5 A*IEVE SIMPLE REPRODUCTION4 ,9 ! SAME WAY1 ONE CAPITALI/ MAY 5L>GE HIS REPRODUCTION BY US+ LABOR P[] & MEANS ( PRODUCTION :I* ANO!R'S BANKRUPTCY1 ?AT IS HIS P>TIAL OR COMPLETE RETIREM5T FROM REPRODUCTION1 HAS SET FREE4 

,!SE COMMONPLACES PROVE ?AT REPRODUCTION ( ! SOCIAL CAPITAL AS A :OLE IS NOT ! SAME AS ! REPRODUCTION ( ! 9DIVIDUAL CAPITALI/ RAIS$ TO ! N? DEGREE4 ,!Y %[ ?AT ! REPRODUCTIVE ACTIVITIES ( 9DIVIDUAL CAPITALI/S CEASELESSLY CUT ACROSS ONE ANO!R & TO A GREAT] OR SMALL] DEGREE MAY CANCEL EA* O!R \T4 

,!RE=E WE MU/ CL>IFY \R CONCEPT ( REPRODUCTION ( CAPITAL AS A :OLE1 BE=E WE EXAM9E ! LAWS & ME*ANISMS ( CAPITALI/ TOTAL REPRODUCTION4 ,WE MU/ RAISE ! QUE/ION :E!R IT IS EV5 POSSIBLE TO D$UCE ANY?+ LIKE TOTAL REPRODUCTION FROM ! DISORD]LY JUMBLE ( 9DIVIDUAL CAPITALS 9 CON/ANT MOTION1 *ANG+ FROM MOM5T TO MOM5T ACCORD+ TO UNCONTROLLABLE & 9CALCULABLE LAWS1 P>TLY RUNN+ A P>ALLEL C\RSE1 & P>TLY 9T]SECT+ & CANCEL+ EA* O!R \T4 ,CAN ONE ACTUALLY TALK ( TOTAL SOCIAL CAPITAL ( SOCIETY AS AN 5TITY1 & IF SO1 :AT IS ! REAL MEAN+ ( ?IS CONCEPT8 ,?AT IS ! FIR/ QUE/ION A SCI5TIFIC EXAM9ATION ( ! LAWS ( REPRODUCTION HAS TO CONSID]4 ,AT ! DAWN ( ECONOMIC !ORY & B\RGEOIS ECONOMICS1 ,QUESNAY1 ! FA!R ( ! ,PHYSIOCRATS1 APPROA*$ ! PROBLEM ) CLASSICAL FE>LESSNESS & SIMPLICITY & TOOK IT = GRANT$ ?AT TOTAL CAPITAL EXI/S AS A REAL & ACTIVE 5TITY4 ,9 HIS FAM\S ,TABLEAU ,ECONOMIQUE1 SO 9TRICATE ?AT NO ONE BE=E ,M>X C\LD UND]/& IT1 ,QUESNAY DEMON/RAT$ ! PHASES ( ! REPRODUCTION ( AGGREGATE CAPITAL ) A FEW FIGURES1 AT ! SAME TIME TAK+ 9TO ACC\NT ?AT IT MU/ ALSO BE CONSID]$ FROM ! ASPECT ( COMMODITY EX*ANGE1 ?AT IS AS A PROCESS ( CIRCULATION47#a7 

,SOCIETY AS ,QUESNAY SEES IT CONSI/S ( ?REE CLASSES3 ! PRODUCTIVE CLASS ( AGRICULTURI/S2 ! /]ILE CLASS CONTA9+ ALL ?OSE :O >E ACTIVE \TSIDE ! SPH]E ( AGRICULTURE - 9DU/RY1 COMM]CE1 & ! LIB]AL PR(ESSIONS2 & LA/LY ! CLASS ( L&[N]S1 9CLUD+ ! ,SOV]EIGN & ! COLLECTORS ( TI!S4 ,! NATIONAL AGGREGATE PRODUCT MAT]IALIZES 9 ! H&S ( ! PRODUCTIVE CLASS AS AN AGGREGATE ( PROVISIONS & RAW MAT]IALS TO ! VALUE ( SOME #e1 MILLION LIVRES4 ,( ?IS SUM1 #b1 MILLIONS REPRES5T ! ANNUAL WORK+ CAPITAL ( AGRICULTURE1 #a1 MILLIONS REPRES5T ! ANNUAL WE> & TE> ( FIX$ CAPITAL1 & #b1 MILLIONS >E ! NET REV5UE ACCRU+ TO ! L&[N]S4 ,AP>T FROM ?IS TOTAL PRODUCE1 ! AGRICULTURI/S1 H]E CONCEIV$ QUITE 9 CAPITALI/ T]MS AS T5ANT F>M]S1 HAVE #b1 MILLION LIVRES CA% 9 H&4 ,CIRCULATION N[ TAKES PLACE 9 SU* A WAY ?AT ! T5ANT CLASS PAY ! L&[N]S #b1 MILLIONS CA% AS R5T 7AS ! CO/ ( ! PREVI\S P]IOD ( PRODUCTION74 ,= ?IS MONEY ! L&[N+ CLASS BUY PROVISIONS FROM ! T5ANTS = #a1 MILLIONS & 9DU/RIAL PRODUCTS FROM ! /]ILE CLASS = ! REMA9+ #a1 MILLIONS4 ,! T5ANTS 9 !IR TURN BUY 9DU/RIAL PRODUCTS = ! #a1 MILLIONS H&$ BACK TO !M1 :]EUPON ! /]ILE CLASS BUY AGRICULTURAL PRODUCTS = ! #b1 MILLIONS !Y HAVE 9 H&3 = #a1 MILLIONS RAW MAT]IALS ETC41 TO REPLACE !IR ANNUAL WORK+ CAPITAL1 & PROVISIONS = ! REMA9+ #a1 MILLIONS4 ,?US ! MONEY HAS 9 ! 5D RETURN$ TO ITS />T+ PO9T1 ! T5ANT CLASS2 ! PRODUCT IS DI/RIBUT$ AMONG ALL CLASSES SO ?AT CONSUMPTION IS 5SUR$ = EV]YONE2 AT ! SAME TIME ! MEANS ( PRODUCTION ( ! /]ILE AS WELL AS ( ! PRODUCTIVE CLASS HAVE BE5 R5EW$ & ! L&[N+ CLASS HAS RECEIV$ ITS REV5UE4 ,! PR]EQUISITES ( REPRODUCTION >E ALL PRES5T1 ! CONDITIONS ( CIRCULATION HAVE ALL BE5 FULFILL$1 & REPRODUCTION CAN />T AGA9 ON ITS REGUL> C\RSE47#b7 

,WE %ALL SEE LAT] 9 ! C\RSE ( \R 9VE/IGATION ?AT ?IS EXPOSITION1 ?\< %[+ FLA%ES ( G5IUS1 REMA9S DEFICI5T & PRIMITIVE4 ,9 ANY CASE1 WE MU/ /RESS H]E ?AT ,QUESNAY1 ON ! ?RE%OLD ( SCI5TIFIC ECONOMICS1 HAD NOT ! SLI<TE/ D\BT AS TO ! POSSIBILITY ( DEMON/RAT+ TOTAL SOCIAL CAPITAL & ITS REPRODUCTION4 ,ADAM ,SMI?1 ON ! O!R H&1 :ILE GIV+ A MORE PR(\ND ANALYSIS ( ! RELATIONS ( CAPITAL1 LAID \T :AT SEEMS LIKE A MAZE :5 COMP>$ ) ! CLE> & SWEEP+ \TL9ES ( ! ,PHYSIOCRAT CONCEPTION4 ,BY HIS WRONG ANALYSIS ( PRICES1 ,SMI? UPSET ! :OLE F\NDATION ( ! SCI5TIFIC DEMON/RATION ( ! CAPITALI/ PROCESS AS A :OLE4 ,?IS WRONG ANALYSIS ( PRICES RUL$ B\RGEOIS ECONOMICS = A LONG TIME2 IT IS ! !ORY :I* MA9TA9S ?AT1 AL?\< ! VALUE ( A COMMODITY REPRES5TS ! AM\NT ( LABOR SP5T 9 ITS PRODUCTION1 YET ! PRICE CONSI/S ( ?REE ELEM5TS ONLY3 ! WAGE ( LABOR1 ! PR(IT ( CAPITAL1 & ! R5T4 

,AS ?IS OBVI\SLY MU/ ALSO APPLY TO ! AGGREGATE ( COMMODITIES1 ! NATIONAL PRODUCT1 WE >E FAC$ ) ! />TL+ DISCOV]Y ?AT1 AL?\< ! VALUE ( ! AGGREGATE ( COMMODITIES MANUFACTUR$ BY CAPITALI/ ME?ODS REPRES5TS ALL PAID WAGES TOGE!R ) ! PR(ITS ( CAPITAL & ! R5TS1 ?AT IS ! AGGREGATE SURPLUS VALUE1 & CONSEQU5TLY CAN REPLACE !SE1 !RE IS NO COMPON5T ( VALUE :I* CORRESPONDS TO ! CON/ANT CAPITAL US$ 9 PRODUCTION4 ,ACCORD+ TO ,SMI?1 V "4 S IS ! =MULA EXPRESS+ ! VALUE ( ! CAPITALI/ PRODUCT AS A :OLE4 ,DEMON/RAT+ HIS VIEW ) ! EXAMPLE ( CORN1 ,SMI? SAYS AS FOLL[S3 

',!SE ?REE P>TS 7WAGES1 PR(IT1 & R5T7 SEEM EI!R IMM$IATELY OR ULTIMATELY TO MAKE UP ! :OLE PRICE ( CORN4 ,A F\R? P>T1 IT MAY P]HAPS BE ?\<T1 IS NECESS>Y = REPLAC+ ! /OCK ( ! F>M]1 OR = COMP5SAT+ ! WE> & TE> ( HIS LABOR+ CATTLE1 & O!R 9/RUM5TS ( HUSB&RY4 ,BUT IT MU/ BE CONSID]$ ?AT ! PRICE ( ANY 9/RUM5T ( HUSB&RY1 SU* AS A LABOR+ HORSE1 IS ITSELF MADE UP ( ! SAME ?REE P>TS3 ! R5T ( ! L& UPON :I* HE IS RE>$1 ! LABOR ( T5D+ & RE>+ HIM1 & ! PR(ITS ( ! F>M] :O ADVANCES BO? ! R5T ( ?IS L& & ! WAGES ( ?IS LABOR4 ,?\< ! PRICE ( ! CORN1 !RE=E1 MAY PAY ! PRICE AS WELL AS ! MA9T5ANCE ( ! HORSE1 ! :OLE PRICE /ILL RESOLVES ITSELF EI!R IMM$IATELY OR ULTIMATELY 9TO ! SAME ?REE P>TS ( R5T1 ( LABOR & PR(IT4'7#c7 

,S5D+ US 9 ?IS MANN] FROM 'PILL> TO PO/'1 AS ,M>X HAS PUT IT1 ,SMI? AGA9 & AGA9 RESOLV$ CON/ANT CAPITAL 9TO V "4 S4 ,H[EV]1 HE HAD OCCASIONAL D\BTS & FROM TIME TO TIME RELAPS$ 9TO ! CONTR>Y OP9ION4 ,HE SAYS 9 ! SECOND BOOK3 

',IT HAS BE5 %[N 9 ! FIR/ ,BOOK1 ?AT ! PRICE ( ! GREAT] P>T ( COMMODITIES RESOLVES ITSELF 9TO ?REE P>TS1 ( :I* ONE PAYS ! WAGES ( ! LABOR1 ANO!R ! PR(ITS ( ! /OCK1 & A ?IRD ! R5T ( ! L& :I* HAD BE5 EMPLOY$ 9 PRODUC+ & BR++ !M TO M>KET 444 ,S9CE ?IS IS ! CASE 444 ) REG>D TO EV]Y P>TICUL> COMMODITY1 TAK5 SEP>ATELY2 IT MU/ BE SO ) REG>D TO ALL ! COMMODITIES :I* COMPOSE ! :OLE ANNUAL PRODUCE ( ! L& & LABOR ( EV]Y C\NTRY1 TAK5 COMPLEXLY4 ,! :OLE PRICE OR EX*ANGEABLE VALUE ( ?AT ANNUAL PRODUCE MU/ RESOLVE ITSELF 9TO ! SAME ?REE P>TS1 & BE P>CEL$ \T AMONG ! DIFF]5T 9HABITANTS ( ! C\NTRY1 EI!R AS ! WAGES ( !IR LABOR1 ! PR(ITS ( !IR /OCK1 OR ! R5T ( !IR L&4'7#d7 

,H]E ,SMI? HESITATES & IMM$IATELY BEL[1 EXPLA9S2 ',BUT ?\< ! :OLE VALUE ( ! ANNUAL PRODUCE ( ! L& & LABOR ( EV]Y C\NTRY IS ?US DIVID$ AMONG & CON/ITUTES A REV5UE TO ITS DIFF]5T 9HABITANTS1 YET AS 9 ! R5T ( A PRIVATE E/ATE WE DI/+UI% BETWE5 ! GROSS R5T & ! NEAT R5T1 SO MAY WE LIKEWISE 9 ! REV5UE ( ALL ! 9HABITANTS ( A GREAT C\NTRY4 

',! GROSS R5T ( A PRIVATE E/ATE COMPREH5DS :ATEV] IS PAID BY ! F>M]2 ! NEAT R5T1 :AT REMA9S FREE TO ! L&LORD AFT] D$UCT+ ! EXP5SE ( MANAGEM5T1 ( REPAIRS1 & ALL O!R NECESS>Y *>GES2 OR :AT )\T HURT+ HIS E/ATE1 HE CAN AF=D TO PLACE 9 HIS /OCK RES]V$ = IMM$IATE CONSUMPTION1 OR TO SP5D UPON HIS TABLE1 EQUIPAGE1 ! ORNAM5TS ( HIS H\SE & FURNITURE1 HIS PRIVATE 5JOYM5TS & AMUSEM5TS4 ,HIS REAL WEAL? IS 9 PROPORTION1 NOT TO HIS GROSS1 BUT TO HIS NET R5T4 

',! GROSS REV5UE ( ALL ! 9HABITANTS ( A GREAT C\NTRY COMPREH5DS ! :OLE ANNUAL PRODUCE ( !IR L& & LABOR2 ! NEAT REV5UE1 :AT REMA9S FREE TO !M1 AFT] D$UCT+ ! EXP5SE ( MA9TA9+1 FIR/ !IR FIX$1 &1 SECONDLY1 !IR CIRCULAT+ CAPITAL1 OR :AT1 )\T 5CROA*+ UPON !IR CAPITAL1 !Y CAN PLACE 9 !IR /OCK RES]V$ = IMM$IATE CONSUMPTION1 OR SP5D UPON !IR SUBSI/5CE1 CONV5I5CES1 & AMUSEM5TS4 ,!IR REAL WEAL? TOO IS 9 PROPORTION1 NOT TO !IR GROSS1 BUT TO !IR NEAT REV5UE4'7#e7 

,H]E ,SMI? 9TRODUCES A PORTION ( VALUE :I* CORRESPONDS TO CON/ANT CAPITAL1 ONLY TO ELIM9ATE IT ! V]Y NEXT MOM5T BY RESOLV+ IT 9TO WAGES1 PR(ITS1 & R5TS4 ,& 9 ! 5D1 ! MATT] RE/S ) ?IS EXPLANATION3 

',AS ! MA*9ES & 9/RUM5TS ( TRADE1 ETC :I* COMPOSE ! FIX$ CAPITAL EI!R ( AN 9DIVIDUAL OR ( A SOCIETY1 MAKE NO P>T EI!R ( ! GROSS OR ! NEAT REV5UE ( EI!R1 SO MONEY1 BY MEANS ( :I* ! :OLE REV5UE ( ! SOCIETY IS REGUL>LY DI/RIBUT$ AMONG ALL ITS DIFF]5T MEMB]S1 MAKES ITSELF NO P>T ( ?AT REV5UE4'7#f7 

,CON/ANT CAPITAL1 ! FIX$ CAPITAL ( ,ADAM ,SMI?1 IS ?US PUT ON ! SAME LEVEL AS MONEY & DOES NOT 5T] 9TO ! TOTAL PRODUCE ( SOCIETY1 ITS GROSS REV5UE4 ,IT DOES NOT EXI/ )9 ?IS TOTAL PRODUCT AS AN ELEM5T ( VALUE4 

,Y\ CANNOT GET BLOOD \T ( A /ONE1 & SO CIRCULATION1 ! MUTUAL EX*ANGE ( ! TOTAL PRODUCT CON/ITUT$ 9 ?IS MANN]1 CAN ONLY LEAD TO REALIZATION ( ! WAGES 7V7 & ( ! SURPLUS VALUE 7S74 ,H[EV]1 AS IT CANNOT BY ANY MEANS REPLACE ! CON/ANT CAPITAL1 CONT9U$ REPRODUCTION EVID5TLY MU/ BECOME IMPOSSIBLE4 ,SMI? 9DE$ KNEW QUITE WELL1 & DID NOT DREAM ( D5Y+1 ?AT EV]Y 9DIVIDUAL CAPITALI/ REQUIRES CON/ANT CAPITAL 9 ADDITION TO HIS WAGES FUND1 HIS V>IABLE CAPITAL1 9 ORD] TO RUN HIS 5T]PRISE4 ,YET ! ABOVE ANALYSIS ( COMMODITY PRICES1 :5 IT COMES TO TAKE NOTE ( CAPITALI/ PRODUCTION AS A :OLE1 ALL[S CON/ANT CAPITAL TO DISAPPE> )\T A TRACE 9 A PUZZL+ WAY4 ,?US ! PROBLEM ( ! REPRODUCTION ( CAPITAL IS COMPLETELY MUDDL$ UP4 ,IT IS PLA9 ?AT IF ! MO/ ELEM5T>Y PREMISE ( ! PROBLEM1 ! DEMON/RATION ( SOCIAL CAPITAL AS A :OLE1 W]E ON ! ROCKS1 ! :OLE ANALYSIS WAS B\ND TO FAIL4 ,RIC>DO1 ,SAY1 ,SISMONDI & O!RS TOOK UP ?IS ]RONE\S !ORY ( ,ADAM ,SMI?1 & !Y ALL /UMBL$ 9 !IR OBS]VATIONS ON ! PROBLEM ( REPRODUCTION OV] ?IS MO/ ELEM5T>Y DIFFICULTY3 ! DEMON/RATION ( SOCIAL CAPITAL4 

,ANO!R DIFFICULTY IS MIX$ UP ) ! =EGO+ FROM ! V]Y \TSET ( SCI5TIFIC ANALYSIS4 ,:AT IS ! NATURE ( ! TOTAL CAPITAL ( A SOCIETY8 ,AS REG>DS ! 9DIVIDUAL PRODUC]1 ! POSITION IS CLE>3 HIS CAPITAL CONSI/S ( ! EXP5SES ( HIS 5T]PRISE4 ,ASSUM+ CAPITALI/ ME?ODS ( PRODUCTION1 ! VALUE ( HIS PRODUCT YIELDS HIM A SURPLUS OV] & ABOVE HIS EXP5SES1 ?AT SURPLUS VALUE :I* DOES NOT REPLACE HIS CAPITAL BUT CON/ITUTE HIS NET 9COME1 :I* HE CAN CONSUME COMPLETELY )\T 5CROA*+ UPON HIS CAPITAL & :I* IS ?US HIS FUND ( CONSUMPTION4 ,IT IS TRUE ?AT ! CAPITALI/ MAY SAVE P>T ( ?IS NET 9COME1 NOT CONSUM+ IT HIMSELF BUT ADD+ IT TO HIS CAPITAL4 ,BUT ?AT IS ANO!R MATT]1 A NEW /EP1 ! =MATION ( A NEW CAPITAL :I* AGA9 MU/ BE REPLAC$ BY SUBSEQU5T REPRODUCTION & MU/ AGA9 YIELD HIM A SURPLUS4 ,9 ANY CASE1 ! CAPITAL ( AN 9DIVIDUAL ALWAYS CONSI/S ( :AT HE REQUIRES = PRODUCTION1 TOGE!R ) HIS ADVANCES ON ! RUNN+ ( HIS 5T]PRISE1 & HIS 9COME IS :AT HE HIMSELF ACTUALLY CONSUMES OR MAY CONSUME1 HIS FUND ( CONSUMPTION4 ,IF WE ASK A CAPITALI/3 ',:AT >E ! WAGES Y\ PAY Y\R WORK]S8' HIS ANSW] WILL BE3 ',!Y >E OBVI\SLY P>T ( MY WORK+ CAPITAL4' ,BUT IF WE ASK3 ',:AT >E !SE WAGES = ! WORK]S :O HAVE RECEIV$ !M8' - IT IS IMPOSSIBLE ?AT HE %\LD DESCRIBE !M AS CAPITAL1 = WAGES RECEIV$ >E NOT CAPITAL = ! WORK]S BUT 9COME1 !IR FUND ( CONSUMPTION4 

,LET US N[ TAKE ANO!R EXAMPLE4 ,A MANUFACTUR] ( MA*9]Y PRODUCES MA*9ES 9 HIS FACTORY4 ,! ANNUAL \TPUT IS A C]TA9 NUMB] ( MA*9ES4 ,9 ITS VALUE1 H[EV]1 ?IS ANNUAL \TPUT CONTA9S ! CAPITAL ADVANC$ BY ! MANUFACTUR] AS WELL AS ! NET 9COME ?AT HAS BE5 E>N$4 ,P>T ( ! MANUFACTUR$ MA*9ES ?US REPRES5T 9COME = ! MANUFACTUR] & >E DE/9$ TO REALIZE ?IS 9COME 9 ! PROCESS ( CIRCULATION & EX*ANGE4 ,BUT ! P]SON :O BUYS !SE MA*9ES FROM ! MANUFACTUR] DOES NOT BUY !M AS 9COME BUT 9 ORD] TO USE !M AS A MEANS ( PRODUCTION2 = HIM !Y >E CAPITAL4 

,!SE EXAMPLES MAKE IT SEEM PLAUSIBLE ?AT AN OBJECT :I* IS CAPITAL = ONE P]SON MAY BE 9COME = ANO!R & VICE V]SA4 ,H[ CAN IT BE POSSIBLE UND] !SE CIRCUM/ANCES TO CON/RUCT ANY?+ 9 ! NATURE ( A TOTAL CAPITAL ( SOCIETY8 ,9DE$ ALMO/ EV]Y SCI5TIFIC ECONOMI/ UP TO ! TIME ( ,M>X CONCLUD$ ?AT !RE IS NO SOCIAL CAPITAL47#g7 ,SMI? WAS /ILL D\BTFUL1 UNDECID$1 VACILLAT+ AB\T ?IS QUE/ION2 SO WAS ,RIC>DO4 ,BUT ALREADY ,SAY DECL>$ CATEGORICALLY3 

',IT IS 9 ?IS WAY ?AT ! TOTAL VALUE ( PRODUCTS IS DI/RIBUT$ AMONG ! MEMB]S ( ! COMMUNITY2 ,I SAY1 ! TOTAL VALUE BECAUSE SU* P>T ( ! :OLE VALUE PRODUC$1 AS DOES NOT GO TO ONE ( ! CONSUM+ PRODUC]S1 IS RECEIV$ BY ! RE/4 ,! CLO?I] BUYS WOOL ( ! F>M]1 PAYS HIS WORKM5 9 EV]Y DEP>TM5T1 & SELLS ! CLO?1 ! RESULT ( !IR UNIT$ EX]TION1 AT A PRICE ?AT REIMBURSES ALL HIS ADVANCES1 & AF=DS HIMSELF A PR(IT4 ,HE NEV] RECKONS AS PR(IT1 OR AS ! REV5UE ( HIS [N 9DU/RY1 ANY?+ MORE ?AN ! NET SURPLUS1 AFT] D$UCT+ ALL *>GES & \TGO+S2 BUT ?OSE \TGO+S >E M]ELY AN ADVANCE ( !IR RESPECTIVE REV5UES TO ! PREVI\S PRODUC]S1 :I* >E REFUND$ BY ! GROSS VALUE ( ! CLO?4 ,! PRICE PAID TO ! F>M] = HIS WOOL IS ! COMP\ND ( ! SEV]AL REV5UES ( ! CULTIVATOR1 ! %EPH]D & ! L&LORD4 ,AL?\< ! F>M] RECKONS AS NET PRODUCE ONLY ! SURPLUS REMA9+ AFT] PAYM5T ( HIS L&LORD & HIS S]VANTS 9 HUSB&RY1 YET TO !M !SE PAYM5TS >E ITEMS ( REV5UE - R5T TO ! ONE & WAGES TO ! O!R - TO ! ONE1 ! REV5UE ( ! L&1 TO ! O!R1 ! REV5UE ( HIS 9DU/RY4 ,! AGGREGATE ( ALL !SE IS DEFRAY$ \T ( ! VALUE ( ! CLO?1 ! :OLE ( :I* =MS ! REV5UE ( SOME ONE OR O!R1 & IS 5TIRELY ABSORB$ 9 ?AT WAY4 - ,:5CE IT APPE>S ?AT ! T]M NET PRODUCE APPLIES ONLY TO ! 9DIVIDUAL REV5UE ( EA* SEP>ATE PRODUC] OR ADV5TUR] 9 9DU/RY1 BUT ?AT ! AGGREGATE ( 9DIVIDUAL REV5UE1 ! TOTAL REV5UE ( ! COMMUNITY1 IS EQUAL TO ! GROSS PRODUCE ( ITS L&1 CAPITAL & 9DU/RY1 :I* 5TIRELY SUBV]TS ! SY/EM ( ! ECONOMI/S ( ! LA/ C5TURY1 :O CONSID]$ NO?+ BUT ! NET PRODUCE ( ! L& AS F>M+ REV5UE1 & !RE=E CONCLUD$1 ?AT ?IS NET PRODUCE WAS ALL ?AT ! COMMUNITY HAD TO CONSUME2 9/EAD ( CLOS+ ) ! OBVI\S 9F]5CE1 ?AT ! :OLE ( :AT HAD BE5 CREAT$1 MAY ALSO BE CONSUM$ BY MANK9D4'7#h7 

,SAY PROVES HIS !ORY 9 HIS [N PECULI> FA%ION4 ,:]EAS ,ADAM ,SMI? TRI$ TO GIVE A PRO( BY REF]R+ EA* PRIVATE CAPITAL UNIT TO ITS PLACE ( PRODUCTION 9 ORD] TO RESOLVE IT 9TO A M]E PRODUCT ( LABOR1 BUT CONCEIV$ ( EV]Y PRODUCT ( LABOR 9 /RICTLY CAPITALI/ T]MS AS A SUM ( PAID & UNPAID LABOR1 AS V "4 S1 & ?US CAME TO RESOLVE ! TOTAL PRODUCT ( SOCIETY 9TO V "4 S2 ,SAY1 ( C\RSE1 IS COCKSURE 5\< TO 'CORRECT' !SE CLASSICAL ]RORS BY 9FLAT+ !M 9TO COMMON VULG>ITIES4 ,HIS >GUM5T IS BAS$ UPON ! FACT ?AT ! 5TREPR5EUR AT EV]Y /AGE ( PRODUCTION PAYS O!R PEOPLE1 ! REPRES5TATIVES ( PREVI\S /AGES ( PRODUCTION1 = ! MEANS ( PRODUCTION :I* >E CAPITAL = HIM1 & ?AT !SE PEOPLE 9 !IR TURN PUT P>T ( ?IS PAYM5T 9TO !IR [N POCKETS AS !IR 9COME & P>TLY USE IT TO REC\P !MSELVES = EXP5SES ADVANC$ 9 ORD] TO PROVIDE YET ANO!R SET ( PEOPLE ) AN 9COME4 ,SAY CONV]TS ,ADAM ,SMI?'S 5DLESS *A9 ( LABOR PROCESSES 9TO AN EQUALLY UN5D+ *A9 ( MUTUAL ADVANCES ON 9COME & !IR REPAYM5T FROM ! PROCE$S ( SALES4 ,! WORK] APPE>S H]E AS ! ABSOLUTE EQUAL ( ! 5TREPR5EUR4 ,HE HAS HIS 9COME ADVANC$ 9 ! =M ( WAGES1 PAY+ = IT 9 TURN BY ! LABOR HE P]=MS4 ,?US ! F9AL VALUE ( ! AGGREGATE SOCIAL PRODUCT APPE>S AS ! SUM ( A L>GE NUMB] ( ADVANC$ 9COMES & IS SP5T 9 ! PROCESS ( EX*ANGE ON REPAYM5T ( ALL !SE ADVANCES4 ,IT IS *>ACT]I/IC ( ,SAY'S SUP]FICIALITY ?AT HE ILLU/RATES ! SOCIAL CONNECTIONS ( CAPITALI/ REPRODUCTION BY ! EXAMPLE ( WAT* MANUFACTURE - A BRAN* ( PRODUCTION :I* AT ?AT TIME & P>TLY EV5 TO-DAY IS PURE 'MANUFACTURE' :]E EV]Y WORK] IS ALSO AN 5TREPR5EUR ON A SMALL SCALE & ! PROCESS ( PRODUCTION ( SURPLUS VALUE IS MASK$ BY A S]IES ( SUCCESSIVE ACTS ( EX*ANGE TYPICAL ( SIMPLE COMMODITY PRODUCTION4 

,?US ,SAY GIVES AN EXTREMELY CRUDE EXPRESSION TO ! CONFUSION 9AUGURAT$ BY ,ADAM ,SMI?4 ,! AGGREGATE ( ANNUAL SOCIAL PRODUCE CAN BE COMPLETELY RESOLV$ AS REG>DS ITS VALUE 9TO A SEQU5CE ( V>I\S 9COMES4 ,!RE=E IT IS COMPLETELY CONSUM$ EV]Y YE>4 ,IT REMA9S AN 5IGMA H[ PRODUCTION CAN BE TAK5 UP AGA9 )\T CAPITAL & MEANS ( PRODUCTION1 & CAPITALI/ REPRODUCTION APPE>S TO BE AN 9SOLUBLE PROBLEM4 

,IF WE COMP>E ! V>Y+ APPROA*ES TO ! PROBLEM FROM ! TIME ( ! ,PHYSIOCRATS TO ?AT ( ,ADAM ,SMI?1 WE CANNOT FAIL TO RECOGNIZE P>TIAL PROGRESS AS WELL AS P>TIAL REGRESSION4 ,! MA9 *>ACT]I/IC ( ! ECONOMIC CONCEPTION ( ! ,PHYSIOCRATS WAS !IR ASSUMPTION ?AT AGRICULTURE ALONE CREATES A SURPLUS1 ?AT IS SURPLUS VALUE1 & ?AT AGRICULTURAL LABOR IS ! ONLY K9D ( LABOR :I* IS PRODUCTIVE 9 ! CAPITALI/ S5SE ( ! T]M4 ,CONSEQU5TLY WE SEE 9 ! ,TABLEAU ,ECONOMIQUE ?AT ! UNPRODUCTIVE CLASS ( 9DU/RIAL WORK]S CREATES VALUE ONLY TO ! EXT5T ( ! SAME #b1 MILLION LIVRES :I* IT CONSUMES AS RAW MAT]IALS & FOOD/UFFS4 ,CONSEQU5TLY1 TOO1 9 ! PROCESS ( EX*ANGE1 ! TOTAL ( MANUFACTUR$ PRODUCTS IS DIVID$ 9TO TWO P>TS1 ONE ( :I* GOES TO ! T5ANT CLASS & ! O!R TO ! L&[N+ CLASS1 :ILE ! MANUFACTUR+ CLASS DOES NOT CONSUME ITS [N PRODUCTS4 ,?US 9 ! VALUE ( ITS COMMODITIES1 ! MANUFACTUR+ CLASS REPRODUCES1 /RICTLY SPEAK+1 ONLY ?AT CIRCULAT+ CAPITAL :I* HAS BE5 CONSUM$1 & NO 9COME IS CREAT$ = ! CLASS ( 5TREPR5EURS4 ,! ONLY 9COME ( SOCIETY ?AT COMES 9TO CIRCULATION 9 EXCESS ( ALL CAPITAL ADVANCES1 IS CREAT$ 9 AGRICULTURE & IS CONSUM$ BY ! L&[N+ CLASS 9 ! =M ( R5TS2 :ILE EV5 ! T5ANT CLASS DO NO MORE ?AN REPLACE !IR CAPITAL3 TO WIT1 #a1 MILLION LIVRES 9T]E/ FROM ! FIX$ CAPITAL & #b1 MILLION CIRCULAT+ CAPITAL1 TWO-?IRDS BE+ RAW MAT]IALS & FOOD/UFFS1 & ONE-?IRD 9DU/RIAL PRODUCTS4 ,FUR!R IT IS /RIK+ ?AT IT IS 9 AGRICULTURE ALONE ?AT ,QUESNAY ASSUMES ! EXI/5CE ( FIX$ CAPITAL :I* HE CALLS AVANCES PRIMITIVES AS DI/9CT FROM AVANCES ANNUELLES4 ,9DU/RY1 AS HE SEES IT1 APP>5TLY WORKS )\T ANY FIX$ CAPITAL1 ONLY ) CIRCULAT+ CAPITAL TURN$ OV] EA* YE>1 & CONSEQU5TLY DOES NOT CREATE 9 ITS ANNUAL \TPUT ( COMMODITIES ANY ELEM5T ( VALUE = MAK+ GOOD ! WE> & TE> ( FIX$ CAPITAL 7SU* AS PREMISES1 TOOLS1 & SO ON747#i7 

,9 CONTRA/ ) ?IS OBVI\S DEFECT1 ! ,5GLI% CLASSICAL S*OOL %[S A DECISIVE ADVANCE ABOVE ALL 9 PROCLAIM+ EV]Y K9D ( LABOR AS PRODUCTIVE1 ?US REVEAL+ ! CREATION ( SURPLUS VALUE 9 MANUFACTURE AS WELL AS 9 AGRICULTURE4 ,WE SAY3 ! ,5GLI% CLASSICAL S*OOL1 BECAUSE ON ?IS PO9T ,ADAM ,SMI? HIMSELF OCCASIONALLY RELAPSES QUIETLY 9TO ! ,PHYSIOCRAT PO9T ( VIEW4 ,IT IS ONLY ,RIC>DO :O DEVELOPS ! !ORY ( ! VALUE ( LABOR AS HI<LY & LOGICALLY AS IT C\LD ADVANCE )9 ! LIMITS ( ! B\RGEOIS APPROA*4 ,! CONSEQU5CE IS ?AT WE MU/ ASSUME ALL CAPITAL 9VE/M5T TO PRODUCE ANNUAL SURPLUS VALUE1 9 ! MANUFACTUR+ P>T ( SOCIAL PRODUCTION AS A :OLE NO LESS ?AN 9 AGRICULTURE47#a7 

,ON ! O!R H&1 ! DISCOV]Y ( ! PRODUCTIVE1 VALUE-CREAT+ PROP]TY ( EV]Y K9D ( LABOR1 ALIKE 9 AGRICULTURE & 9 MANUFACTURE1 SUGGE/$ TO ,SMI? ?AT AGRICULTURAL LABOR1 TOO1 MU/ PRODUCE1 AP>T FROM ! R5T = ! L&[N+ CLASS1 A SURPLUS = ! T5ANT CLASS OV] & ABOVE ! TOTAL ( !IR CAPITAL EXP5SES4 ,?US1 9 ADDITION TO ! REPLACEM5T ( CAPITAL1 AN ANNUAL 9COME ( ! T5ANT CLASS COMES 9TO BE+4 7#a#a7 

,LA/LY1 BY A SY/EMATIC ELABORATION ( ! CONCEPTS ( AVANCES PRIMITIVES & AVANCES ANNUELLES 9TRODUC$ BY ,QUESNAY1 :I* HE CALLS FIX$ & CIRCULAT+ CAPITAL1 ,SMI? HAS MADE CLE>1 AMONG O!R ?+S1 ?AT ! MANUFACTUR+ SIDE ( SOCIAL PRODUCTION REQUIRES A FIX$ AS WELL AS A CIRCULAT+ CAPITAL4 ,?US HE WAS WELL ON ! WAY TO RE/OR+ TO ORD] ! CONCEPTS ( CAPITAL & REV5UE ( SOCIETY1 & TO DESCRIB+ !M 9 PRECISE T]MS4 ,! FOLL[+ EXPOSITION REPRES5TS ! HI<E/ LEVEL ( CL>ITY :I* HE A*IEV$ 9 ?IS RESPECT3 

',?\< ! :OLE ANNUAL PRODUCE ( ! L& & LABOR ( EV]Y C\NTRY IS1 NO D\BT1 ULTIMATELY DE/9$ = SUPPLY+ ! CONSUMPTION ( ITS 9HABITANTS & = PROCUR+ A REV5UE TO !M1 YET :5 IT FIR/ COMES EI!R FROM ! GR\ND OR FROM ! H&S ( ! PRODUCTIVE LABOR]1 IT NATURALLY DIVIDES ITSELF 9TO TWO P>TS4 ,ONE ( !M1 & FREQU5TLY ! L>GE/1 IS1 9 ! FIR/ PLACE1 DE/9$ = REPLAC+ A CAPITAL1 OR = R5EW+ ! PROVISIONS1 MAT]IALS1 & F9I%$ WORK1 :I* HAD BE5 )DRAWN FROM A CAPITAL2 ! O!R = CON/ITUT+ A REV5UE EI!R TO ! [N] ( ?IS CAPITAL1 AS ! PR(IT ( HIS /OCK1 OR TO SOME O!R P]SON2 AS ! R5T ( HIS L&4'7#a#b7 

',! GROSS REV5UE ( ALL ! 9HABITANTS ( A GREAT C\NTRY COMPREH5DS ! :OLE ANNUAL PRODUCE ( !IR L& & LABOR2 ! NEAT REV5UE1 :AT REMA9S FREE TO !M AFT] D$UCT+ ! EXP5SE ( MA9TA9+1 FIR/1 !IR FIX$1 & SECONDLY1 !IR CIRCULAT+ CAPITAL2 OR :AT1 )\T 5CROA*+ UPON !IR CAPITAL1 !Y CAN PLACE 9 !IR /OCK RES]V$ = IMM$IATE CONSUMPTION1 OR SP5D UPON !IR SUBSI/5CE1 CONV5I5CES1 & AMUSEM5TS4 ,!IR REAL WEAL? TOO IS 9 PROPORTION1 NOT TO !IR GROSS1 BUT TO !IR NEAT REV5UE4'7#a#c7 

,! CONCEPTS ( TOTAL CAPITAL & 9COME APPE> H]E 9 A MORE COMPREH5SIVE & /RICT] =M ?AN 9 ! ,TABLEAU ,ECONOMIQUE4 ,! ONE-SID$ CONNECTION ( SOCIAL 9COME ) AGRICULTURE IS SEV]$ & SOCIAL 9COME BECOMES A BROAD] CONCEPT2 & A BROAD] CONCEPT ( CAPITAL 9 ITS TWO =MS1 FIX$ & CIRCULAT+ CAPITAL1 IS MADE ! BASIS ( SOCIAL PRODUCTION AS A :OLE4 ,9/EAD ( ! MISLEAD+ DIFF]5TIATION ( PRODUCTION 9TO TWO DEP>TM5TS1 AGRICULTURE & 9DU/RY1 O!R CATEGORIES ( REAL IMPORTANCE >E H]E BR\<T TO ! =E3 ! DI/9CTION BETWE5 CAPITAL & 9COME & ! DI/9CTION1 FUR!R1 BETWE5 FIX$ & CIRCULAT+ CAPITAL4 

,N[ ,SMI? PROCE$S TO A FUR!R ANALYSIS ( ! MUTUAL RELATIONS ( !SE CATEGORIES & ( H[ !Y *ANGE 9 ! C\RSE ( ! SOCIAL PROCESS1 9 PRODUCTION & CIRCULATION - 9 ! REPRODUCTIVE PROCESS ( SOCIETY4 ,HE EMPHASIZES H]E A RADICAL DI/9CTION BETWE5 FIX$ & CIRCULAT+ CAPITAL FROM ! PO9T ( VIEW ( ! SOCIETY3 

',! :OLE EXP5SE ( MA9TA9+ ! FIX$ CAPITAL MU/ EVID5TLY BE EXCLUD$ FROM ! NEAT REV5UE ( ! SOCIETY4 ,NEI!R ! MAT]IALS NECESS>Y = SUPPORT+ !IR USEFUL MA*9ES & 9/RUM5TS ( TRADE1 !IR PR(ITABLE BUILD+S1 ETC41 NOR ! PRODUCE ( ! LABOR NECESS>Y = FA%ION+ ?OSE MAT]IALS 9TO ! PROP] =M1 CAN EV] MAKE ANY P>T ( IT4 ,! PRICE ( ?AT LABOR MAY 9DE$ MAKE A P>T ( IT1 AS ! WORKM5 SO EMPLOY$ MAY PLACE ! :OLE VALUE ( !IR WAGES 9 !IR /OCK RES]V$ = IMM$IATE CONSUMPTION4 ,BUT 9 O!R SORTS ( LABOR1 BO? ! PRICE & ! PRODUCE GO TO ?IS /OCK1 ! PRICE TO ?AT ( ! WORKM51 ! PRODUCE TO ?AT ( O!R PEOPLE :OSE SUBSI/5CE1 CONV5I5CE & AMUSEM5TS >E AUGM5T$ BY ! LABOR ( ?OSE WORKM54'7#a#d7 

,H]E ,SMI? COMES UP AGA9/ ! IMPORTANT DI/9CTION BETWE5 WORK]S :O PRODUCE MEANS ( PRODUCTION & ?OSE :O PRODUCE CONSUM] GOODS4 ,) REG>D TO ! =M] HE REM>KS ?AT !Y CREATE ! VALUE - DE/9$ TO REPLACE !IR WAGES & TO S]VE AS !IR 9COME - 9 ! =M ( MEANS ( PRODUCTION SU* AS RAW MAT]IALS & 9/RUM5TS :I* 9 !IR NATURAL =M CANNOT BE CONSUM$4 ,) REG>D TO ! LATT] CATEGORY ( WORK]S1 ,SMI? OBS]VES ?AT CONV]SELY ! TOTAL PRODUCT1 OR BETT] ?AT P>T ( VALUE CONTA9$ 9 IT :I* REPLACES ! WAGES1 ! 9COME ( ! WORK]S TOGE!R ) ITS O!R REMA9+ VALUE1 APPE>S H]E 9 ! =M ( CONSUM] GOODS4 7,! REAL MEAN+ LAT5T 9 ?IS CONCLUSION1 ?\< ,SMI? DOES NOT SAY SO EXPLICITLY1 IS ?AT ! P>T ( ! PRODUCT :I* REPRES5TS ! FIX$ CAPITAL EMPLOY$ 9 ITS PRODUCTION APPE>S LIKEWISE 9 ?IS =M47 ,9 ! FUR!R C\RSE ( \R 9VE/IGATION WE %ALL SEE H[ CLOSE ,SMI? HAS H]E COME TO ! VANTAGE PO9T FROM :I* ,M>X TACKL$ ! PROBLEM4 ,! G5]AL CONCLUSION1 H[EV]1 MA9TA9$ BY ,SMI? )\T ANY FUR!R EXAM9ATION ( ! FUNDAM5TAL QUE/ION1 IS ?AT1 9 ANY CASE1 :ATEV] IS DE/9$ = ! PRES]VATION & R5EWAL ( ! FIX$ CAPITAL ( SOCIETY CANNOT BE ADD$ TO SOCIETY'S NET 9COME4 

,! POSITION IS DIFF]5T ) REG>D TO CIRCULAT+ CAPITAL4 

',BUT ?\< ! :OLE EXP5SES ( MA9TA9+ ! FIX$ CAPITAL IS ?US NECESS>ILY EXCLUD$ FROM ! NEAT REV5UE ( ! SOCIETY1 IT IS NOT ! SAME CASE ) ?AT ( MA9TA9+ ! CIRCULAT+ CAPITAL4 ,( ! F\R P>TS ( :I* ?IS LATT] CAPITAL IS COMPOS$1 MONEY1 PROVISIONS1 MAT]IALS & F9I%$ WORK1 ! ?REE LA/1 IT HAS ALREADY BE5 OBS]V$1 >E REGUL>LY )DRAWN FROM IT & PLAC$ EI!R 9 ! FIX$ CAPITAL ( ! SOCIETY1 OR 9 !IR /OCK RES]V$ = IMM$IATE CONSUMPTION4 ,:ATEV] PORTION ( ?OSE CONSUMABLE GOODS IS NOT EMPLOY$ 9 MA9TA9+ ! =M]1 GOES ALL TO ! LATT]1 & MAKES A P>T ( ! NEAT REV5UE ( ! SOCIETY1 BESIDES :AT IS NECESS>Y = MA9TA9+ ! FIX$ CAPITAL4'7#a#e7 

,WE SEE ?AT ,SMI? H]E SIMPLY 9CLUDES 9 ?IS CATEGORY ( CIRCULAT+ CAPITAL EV]Y?+ BUT ! FIX$ CAPITAL ALREADY EMPLOY$1 ?AT IS TO SAY1 FOOD/UFFS & RAW MAT]IALS & 9 P>T COMMODITIES :I*1 ACCORD+ TO !IR NATURAL =M1 BELONG TO ! REPLACEM5T ( FIX$ CAPITAL4 ,?US HE HAS MADE ! CONCEPT ( CIRCULAT+ CAPITAL VAGUE & AMBIGU\S4 ,BUT A FUR!R & MO/ IMPORTANT DI/9CTION CROPS UP & CUTS RI<T ?R\< ?IS CONCEPTION3 

',! CIRCULAT+ CAPITAL ( A SOCIETY IS 9 ?IS RESPECT DIFF]5T FROM ?AT ( AN 9DIVIDUAL4 ,?AT ( AN 9DIVIDUAL IS TOTALLY EXCLUD$ FROM MAK+ ANY P>T ( HIS NEAT REV5UE1 :I* MU/ CONSI/ ALTOGE!R 9 HIS PR(ITS4 ',BUT ?\< ! CIRCULAT+ CAPITAL ( EV]Y 9DIVIDUAL MAKES A P>T ( ?AT ( ! SOCIETY TO :I* HE BELONGS1 IT IS NOT UPON ?AT ACC\NT TOTALLY EXCLUD$ FROM MAK+ A P>T LIKEWISE ( !IR NEAT REV5UES4'7#a#f7 

,9 ! FOLL[+ ILLU/RATION ,SMI? EXP\NDS :AT HE MEANS3 

',?\< ! :OLE GOODS 9 A M]*ANT'S %OP MU/ BY NO MEANS BE PLAC$ 9 HIS [N /OCK RES]V$ = IMM$IATE CONSUMPTION1 !Y MAY 9 ?AT ( O!R PEOPLE1 :O1 FROM A REV5UE D]IV$ FROM O!R FUNDS1 MAY REGUL>LY REPLACE !IR VALUE TO HIM1 TOGE!R ) ITS PR(ITS1 )\T OCCASION+ ANY DIM9UTION EI!R ( HIS CAPITAL OR !IRS4'7#a#g7 

,H]E ,SMI? HAS E/ABLI%$ FUNDAM5TAL CATEGORIES ) REG>D TO ! REPRODUCTION & MOVEM5T ( CIRCULAT+ SOCIAL CAPITAL4 ,FIX$ & CIRCULAT+ CAPITAL1 PRIVATE & SOCIAL CAPITAL1 PRIVATE & SOCIAL REV5UE1 MEANS ( PRODUCTION & CONSUM] GOODS1 >E M>K$ PUT AS COMPREH5SIVE CATEGORIES1 & !IR REAL1 OBJECTIVE 9T]RELATION IS P>TLY 9DICAT$ & P>TLY DR[N$ 9 ! SUBJECTIVE & !ORETICAL CONTRADICTIONS ( ,SMI?'S ANALYSIS4 ,! CONCISE1 /RICT1 & CLASSICALLY CLE> S*EME ( ! ,PHYSIOCRAT !ORY IS DISSOLV$ H]E 9TO A DISORD]LY JUMBLE ( CONCEPTS & RELATIONS :I* AT FIR/ GLANCE APPE>S AN ABSOLUTE *AOS4 ,BUT WE MAY ALREADY P]CEIVE NEW CONNECTIONS )9 ! SOCIAL PROCESS ( REPRODUCTION1 UND]/OOD BY ,SMI? 9 A DEEP]1 WORE MOD]N & VITAL WAY ?AN WAS )9 ,QUESNAY'S GRASP1 ?\<1 LIKE ,MI*ELANGELO'S SLAVE 9 ! UNHEWN BLOCK ( M>BLE1 !Y >E /ILL 9*OATE4 

,?IS IS ! ONLY ILLU/RATION ,SMI? GIVES ( ?IS PROBLEM4 ,BUT AT ! SAME TIME HE ATTACKS IT FROM ANO!R ANGLE - BY AN ANALYSIS ( VALUE4 ,?IS V]Y SAME !ORY :I* REPRES5TS AN ADVANCE BEYOND ! ,PHYSIOCRATS - ! !ORY ?AT IT IS AN ESS5TIAL QUALITY ( ALL LABOR TO CREATE VALUE2 ! /RICTLY CAPITALI/ DI/9CTION BETWE5 PAID LABOR REPLAC+ WAGES1 & UNPAID LABOR CREAT+ SURPLUS VALUE2 &1 F9ALLY1 ! /RICT DIVISION ( SURPLUS VALUE 9TO ITS TWO MA9 CATEGORIES1 ( PR(IT & R5T ALL ?IS PROGRESS FROM ! ANALYSIS ( ! ,PHYSIOCRATS LEADS ,SMI? TO ! /RANGE PROPOSITION ?AT ! PRICE ( EV]Y COMMODITY CONSI/S ( WAGES1 PLUS PR(ITS1 PLUS R5T1 OR1 9 ,M>X'S %ORT-H&1 ( V "4 S4 ,9 CONSEQU5CE1 ! COMMODITIES ANNUALLY PRODUC$ BY SOCIETY AS A :OLE CAN BE RESOLV$ COMPLETELY1 AS TO VALUE1 9TO ! TWO COMPON5TS3 WAGES & SURPLUS VALUE4 ,H]E ! CATEGORY ( CAPITAL HAS DISAPPE>$ ALL ( A SUDD52 SOCIETY PRODUCES NO?+ BUT 9COME1 NO?+ BUT CONSUM] GOODS1 :I* IT ALSO CONSUMES COMPLETELY4 ,REPRODUCTION )\T CAPITAL BECOMES A P>ADOX1 & ! TREATM5T ( ! PROBLEM AS A :OLE HAS TAK5 AN IMM5SE BACKW>D /EP AGA9/ ?AT ( ! ,PHYSIOCRATS4 

,! FOLL[]S ( ,ADAM ,SMI? HAVE TACKL$ ?IS TW(OLD !ORY FROM PRECISELY ! WRONG APPROA*4 ,BE=E ,M>X NOBODY CONC]N$ HIMSELF ) ! IMPORTANT BEG9N+S ( AN EXACT EXPOSITION ( ! PROBLEM 9 ,SMI?'S SECOND BOOK1 :ILE MO/ ( HIS FOLL[]S JEAL\SLY PRES]V$ ,SMI?'S RADICALLY WRONG ANALYSIS ( PRICES1 ACCEPT+ IT1 LIKE ,RIC>DO1 )\T QUE/ION1 OR ELSE1 LIKE ,SAY1 ELABORAT+ IT 9TO A TRITE DOCTR9E4 ,:]E ,SMI? RAIS$ FRUITFUL D\BTS & /IMULAT+ CONTRADICTIONS1 ,SAY FLAUNT$ ! OP9IONAT$ PRESUMPTION ( A COMMONPLACE M9D4 ,SMI?'S OBS]VATION ?AT ! CAPITAL ( ONE P]SON MAY BE ! REV5UE ( ANO!R 9DUC$ ,SAY TO PROCLAIM EV]Y DI/9CTION BETWE5 CAPITAL & 9COME ON ! SOCIAL SCALE TO BE ABSURD4 ,! ABSURDITY1 H[EV]1 ?AT 9COME %\LD COMPLETELY ABSORB ! TOTAL VALUE ( ANNUAL PRODUCTION :I* IS ?US CONSUM$ COMPLETELY1 ASSUMES 9 ,SAY'S TREATM5T ! *>ACT] ( AN ABSOLUTELY VALID DOGMA4 ,IF SOCIETY ANNUALLY CONSUMES ITS [N TOTAL PRODUCT COMPLETELY1 SOCIAL REPRODUCTION )\T ANY MEANS ( PRODUCTION :ATEV] MU/ BECOME AN ANNUAL REPETITION ( ! ,MIRACLE ( ! ,CREATION4 

,9 ?IS /ATE ! PROBLEM ( REPRODUCTION REMA9$ UP TO ! TIME ( ,K>L ,M>X4 

,FOOTNOTES 

7#a7 ',QUESNAY'S ,TABLEAU ,ECONOMIQUE %[S 444 H[ ! RESULT ( NATIONAL PRODUCTION 9 A C]TA9 YE>1 AM\NT+ TO SOME DEF9ITE VALUE1 IS DI/RIBUT$ BY MEANS ( ! CIRCULATION 9 SU* A WAY1 ?AT 444 REPRODUCTION CAN TAKE PLACE 444 ,! 9NUM]ABLE 9DIVIDUAL ACTS ( CIRCULATION >E AT ONCE VIEW$ 9 !IR *>ACT]I/IC SOCIAL MASS MOVEM5T - ! CIRCULATION BETWE5 GREAT SOCIAL CLASSES DI/+UI%$ BY !IR ECONOMIC FUNCTION' 7,CAPITAL1 ,VOL4#b1 P4#d#a#d74 

7#b7 ,CF4 ,ANALYZE DU ,TABLEAU ,ECONOMIQUE1 9 ,J\RNAL DE L',AGRICULTURE1 DU ,COMM]CE ET DES ,F9ANCES1 BY ,DUPONT 7#a#g#f#f71 PP4 #c#eFF4 9 ,ONCK5'S $ITION ( ,O,EUVRES DE ,F4 ,QUESNAY4 ,QUESNAY REM>KS EXPLICITLY ?AT CIRCULATION AS HE DESCRIBES IT IS BAS$ UPON TWO CONDITIONS3 UNHAMP]$ TRADE1 & A SY/EM ( TAXATION APPLY+ ONLY TO R5T3 ',YET !SE FACTS HAVE 9DISP5SABLE CONDITIONS2 ?AT ! FRE$OM ( COMM]CE SU/A9S ! SALE ( PRODUCTS AT A GOOD PRICE1 & MOREOV]1 ?AT ! F>M] NE$ NOT PAY ANY O!R DIRECT OR 9DIRECT *>GES BUT ?IS 9COME1 P>T ( :I*1 SAY TWO SEV5?S1 MU/ =M ! REV5UE ( ! ,SOV]EIGN' 7OP4 CIT41 P4#c#a#a74 

7#c7 ,ADAM ,SMI?1 ,AN ,9QUIRY 9TO ! ,NATURE & ,CAUSES ( ! ,WEAL? ( ,NATIONS 7$4 ,MC,CULLO*1 ,$9BUR<-,LONDON #a#h#b#h71 VOL4I1 PP4#h#f-#h4 

7#d7,OP4 CIT41 VOL4II1 PP4#a#g-#a#h4 

7#e7,IBID41 PP4#a#h-#a#i4 

7#f7,IBID41 P4#b#c4 

7#g7 ,AS TO ! CONCEPT ( 'NATIONAL CAPITAL' SPECIFIC TO ,RODB]TUS1 SEE BEL[1 *#a#f4HTM4 

7#h7 ,J4,B4 ,SAY1 ,A ,TREATISE ON ,POLITICAL ,ECONOMY 7TRANSL4 BY ,C4,R4 ,PR9SEP1 VOL4II1 ,LONDON #a#h#b#a71 PP4#g#e-#g4 

7#i7 ,ATT5TION MU/ BE DRAWN TO ! FACT ?AT ,MIRABEAU 9 HIS ,EXPLICATIONS ON ! ,TABLEAU ,ECONOMIQUE EXPLICITLY M5TIONS ! FIX$ CAPITAL ( ! UNPRODUCTIVE CLASS3 ',! PRIM>Y ADVANCES ( ?IS CLASS1 = ! E/ABLI%M5T ( MANUFACTURES1 = 9/RUM5TS1 MA*9ES1 MILLS1 SMI?IES 7IRONWORKS7 & O!R FACTORIES 444 7AM\NT TO7 #b1 MILLION LIVRES' 7,TABLEAU ,ECONOMIQUE AVEC SES ,EXPLICATIONS1 #a#g#f1 P4#h#b74 ,9 HIS CONFUS+ SKET* ( ! ,TABLEAU ITSELF1 ,MIRABEAU1 TOO1 FAILS TO TAKE ?IS FIX$ CAPITAL ( ! /]ILE CLASS 9TO ACC\NT4 

7#a7 ,SMI? ACCORD+LY >RIVES AT ?IS G5]AL =MULATION3 ',! VALUE :I* ! WORKM5 ADD TO ! MAT]IALS1 !RE=E1 RESOLVES ITSELF 9 ?IS CASE 9TO TWO P>TS1 ( :I* ! ONE PAYS !IR WAGES1 ! O!R ! PR(ITS ( !IR EMPLOY] UPON ! :OLE /OCK ( MAT]IALS & WAGES :I* HE ADVANC$' 7OP4 CIT41 VOL4I1 P4#h74 ,FUR!R1 9 ,BOOK ,I,I1 *AP4#h1 ON 9DU/RIAL LABOR 9 P>TICUL>3 ',! LABOR ( A MANUFACTUR] ADDS G5]ALLY TO ! VALUE ( ! MAT]IALS :I* HE WORKS UPON1 ?AT ( HIS [N MA9T5ANCE & ( HIS MA/]'S PR(IT4 ,! LABOR ( A M5IAL S]VANT1 ON ! CONTR>Y1 ADDS TO ! VALUE ( NO?+4 ,?\< ! MANUFACTUR] HAS HIS WAGES ADVANC$ TO HIM BY HIS MA/]1 HE 9 REALITY CO/S HIM NO EXP5SE1 ! VALUE ( ?OSE WAGES BE+ G5]ALLY RE/OR$1 TOGE!R ) A PR(IT1 9 ! IMPROV$ VALUE ( ! SUBJECT UPON :I* HIS LABOR IS BE/[$' 7OP4 CIT41 VOL4II1 PP4#i#c-#d74 

7#a#a7 ',! LABOR]S 444 !RE=E1 EMPLOY$ 9 AGRICULTURE1 NOT ONLY OCCASION1 LIKE ! WORKM5 9 MANUFACTURES1 ! REPRODUCTION ( A VALUE EQUAL TO !IR [N CONSUMPTION1 OR TO ! CAPITAL :I* EMPLOYS !M2 TOGE!R ) ITS [N]'S PR(IT1 BUT ( A MU* GREAT] VALUE4 ,OV] & ABOVE1 ! CAPITAL ( ! F>M] & ALL ITS PR(ITS1 !Y REGUL>LY OCCASION ! REPRODUCTION ( ! R5T ( ! L&LORD' 7IBID41 P4#a#d#i74 

7#a#b7,IBID41 PP4#i#g-#h4 ,YET ALREADY 9 ! FOLL[+ S5T5CE ,SMI? CONV]TS CAPITAL COMPLETELY 9TO WAGES1 ?AT IS V>IABLE CAPITAL3 ',?AT P>T ( ! ANNUAL PRODUCE ( ! L& & LABOR ( ANY C\NTRY :I* REPLACES A CAPITAL1 NEV] IS IMM$IATELY EMPLOY$ TO MA9TA9 ANY BUT PRODUCTIVE H&S4 ,IT PAYS ! WAGES ( PRODUCTIVE LABOR ONLY4 ,?AT :I* IS IMM$IATELY DE/9$ = CON/ITUT+ A REV5UE1 EI!R AS PR(IT OR AS R5T1 MAY MA9TA9 9DIFF]5TLY EI!R PRODUCTIVE OR UNPRODUCTIVE H&S' 7IBID41 P4#i#h74 

7#a#c7,IBID41 P4#a#i4 

7#a#d7,IBID41 PP4#a#i-#b4 

7#a#d7,IBID41 PP4#b#a-#b#b4 

7#a#f7,IBID41 P4#b#b4 

7#a#g7,IBID4 

,FROM 3 ,M>XI/S4ORG4 

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