,SECTION #a1 ,*APT] #c ,! ,PROBLEM ( ,REPRODUCTION3 ,A ,CRITICISM ( ,SMI?'S ,ANALYSIS ,PEOPLE 3 ,AU?OR 3 ,ROSA ,LUXEMBURG ,TEXT 3 ,L,E,T US RECAPITULATE ! CONCLUSIONS TO :I* ,SMI?'S ANALYSIS HAS BR\T ( :I* 5T]S 9TO ITS NET REV5UE4 ,?IS FIX$ CAPITAL CONSI/S 9 '! MAT]IALS NECESS>Y = SUPPORT+ !IR USEFUL MA*9ES & 9/RUM5TS ( TRADE' & '! PRODUCE ( LABOR NECESS>Y = FA%ION+ ?OSE MAT]IALS 9TO ! PROP] =M'47#a7 ,BY S+L+ \T ! PRODUCTION ( SU* FIX$ CAPITAL AS ( A SPECIAL K9D1 & EXPLICITLY CONTRA/+ IT ) ! PRODUCTION ( CONSUM] GOODS1 ,SMI? 9 EFFECT TRANS=M$ FIX$ CAPITAL 9TO :AT ,M>X CALLS 'CON/ANT CAPITAL' - ?AT P>T ( CAPITAL :I* CONSI/S ( ALL MAT]IAL MEANS ( PRODUCTION1 AS OPPOS$ TO LABOR P[]4 ,!RE IS A CIRCULAT+ CAPITAL ( SOCIETY4 ,AFT] ELIM9AT+ ! P>T ( FIX$1 OR CON/ANT1 CAPITAL1 !RE REMA9S ONLY ! CATEGORY ( CONSUM] GOODS2 !SE >E NOT CAPITAL = SOCIETY BUT NET REV5UE1 A FUND ( CONSUMPTION4 ,CAPITAL & NET REV5UE ( AN 9DIVIDUAL DO NOT /RICTLY CORRESPOND ) CAPITAL & NET REV5UE ( SOCIETY4 ,:AT IS NO?+ BUT FIX$1 OR CON/ANT CAPITAL = SOCIETY AS A :OLE CANNOT BE CAPITAL = ! 9DIVIDUAL2 IT MU/ BE REV5UE1 TOO1 A FUND ( CONSUMPTION1 COMPRIS+ AS IT DOES ?OSE P>TS ( FIX$ CAPITAL :I* REPRES5T ! WORK]S' WAGES & ! CAPITALI/S' PR(ITS4 ,ON ! O!R H&1 ! CIRCULAT+ CAPITAL ( ! 9DIVIDUALS CANNOT BE CAPITAL = SOCIETY BUT MU/ BE REV5UE1 ESPECIALLY 9 SO F> AS IT TAKES ! =M ( PROVISIONS4 ,AS REG>DS ! VALUE ( ! TOTAL ANNUAL SOCIAL PRODUCT1 NO TRACE ( CAPITAL REMA9S4 ,IT CAN BE RESOLV$ COMPLETELY 9TO ! ?REE K9DS ( 9COME3 WAGES1 PR(ITS ( CAPITAL1 & R5TS4 ,IF WE TRI$ FROM ?IS HAPHAZ>D COLLECTION ( ODD IDEAS TO BUILD UP A PICTURE ( ! ANNUAL REPRODUCTION ( TOTAL SOCIAL CAPITAL1 & ( ITS ME*ANISM1 WE %\LD SOON DESPAIR ( \R TASK4 ,9DE$1 ALL !SE OBS]VATIONS LEAVE US 9F9ITELY REMOTE FROM ! SOLUTION ( ! PROBLEM H[ SOCIAL CAPITAL IS ANNUALLY R5EW$1 H[ EV]YBODY'S CONSUMPTION IS 5SUR$ BY HIS 9COME1 :ILE ! 9DIVIDUALS CAN NEV]!LESS ADH]E TO !IR [N PO9TS ( VIEW ON CAPITAL & 9COME4 ,YET IF WE WI% TO APPRECIATE FULLY ,M>X'S CONTRIBUTION TO ! ELUCIDATION ( ?IS PROBLEM1 WE MU/ BE FULLY AW>E ( ALL ?IS CONFUSION ( IDEAS1 ! MASS ( CONFLICT+ PO9TS ( VIEW4 ,LET US BEG9 ) ,ADAM ,SMI?'S LA/ !SIS :I* ALONE W\LD SUFFICE TO WRECK ! TREATM5T ( ! PROBLEM ( REPRODUCTION 9 CLASSICAL ECONOMICS4 ,SMI?'S BASIC PR9CIPLE IS ?AT ! TOTAL PRODUCE ( SOCIETY1 :5 WE CONSID] ITS VALUE1 RESOLVES ITSELF COMPLETELY 9TO WAGES1 PR(ITS & R5TS3 ?IS CONCEPTION IS DEEPLY ROOT$ 9 HIS SCI5TIFIC !ORY ?AT VALUE IS NO?+ BUT ! PRODUCT ( LABOR4 ,ALL LABOR P]=M$1 H[EV]1 IS WAGE LABOR4 ,?IS ID5TIFICATION ( HUMAN LABOR ) CAPITALI/ WAGE LABOR IS 9DE$ ! CLASSICAL ELEM5T 9 ,SMI?'S DOCTR9E4 ,! VALUE ( ! AGGREGATE PRODUCT ( SOCIETY COMPRISES BO? ! RECOMP5SE = WAGES ADVANC$ & A SURPLUS FROM UNPAID LABOR APPE>+ AS PR(IT = ! CAPITALI/ & R5T = ! L&[N]4 ,:AT HOLDS GOOD = ! 9DIVIDUAL COMMODITY MU/ HOLD GOOD EQUALLY = ! AGGREGATE ( COMMODITIES4 ,! :OLE MASS ( COMMODITIES PRODUC$ BY SOCIETY - TAK5 AS A QUANTITY ( VALUE - IS NO?+ BUT A PRODUCT ( LABOR1 ( PAID AS WELL AS UNPAID LABOR1 & ?US IT IS ALSO TO BE COMPLETELY RESOLV$ 9TO WAGES1 PR(ITS1 & R5TS4 ,IT IS ( C\RSE TRUE ?AT RAW MAT]IALS1 9/RUM5TS1 & ! LIKE1 MU/ BE TAK5 9TO CONSID]ATION 9 CONNECTION ) ALL LABOR4 ,YET IS IT NOT TRUE ALSO ?AT !SE RAW MAT]IALS & 9/RUM5TS 9 !IR TURN >E EQUALLY PRODUCTS ( LABOR :I* AGA9 MAY HAVE BE5 PAID OR UNPAID8 ,WE MAY GO BACK AS F> AS WE *OOSE1 WE MAY TWI/ & TURN ! PROBLEM AS MU* AS WE LIKE1 YET WE %ALL F9D NO ELEM5T 9 ! VALUE ( ANY COMMODITY - & !RE=E NONE 9 ! PRICE - :I* CANNOT BE RESOLV$ PURELY 9 T]MS ( HUMAN LABOR4 ,WE CAN DI/+UI%1 H[EV]1 TWO P>TS 9 ALL LABOR3 ONE P>T REPAYS ! WAGES & ! O!R ACCRUES TO ! CAPITALI/ & L&LORD4 ,!RE SEEMS NO?+ LEFT BUT WAGES & PR(ITS - & YET1 !RE IS CAPITAL1 9DIVIDUAL & SOCIAL CAPITAL4 ,H[ CAN WE OV]COME ?IS BLATANT CONTRADICTION8 ,! FACT ?AT ,M>X HIMSELF /UBBORNLY PURSU$ ?IS MATT] = A LONG TIME )\T GETT+ ANY:]E AT FIR/ AS WITNESS HIS ,!ORIES ( ! ,SURPLUS ,VALUE17#b7 PROVES ?AT ?IS !ORETICAL PROBLEM IS 9DE$ EXTREMELY H>D TO SOLVE4 ,YET ! SOLUTION HE EV5TUALLY HIT ON WAS /RIK+LY SUCCESSFUL1 & IT IS BAS$ UPON HIS !ORY ( VALUE4 ,ADAM ,SMI? WAS P]FECTLY RII\S CLASSES [N+ ! MEANS ( PRODUCTION4 ,:AT HE =GOT1 H[EV]1 OR RA!R OV]LOOK$1 IS ! FACT ?AT1 AP>T FROM BE+ ABLE TO CREATE NEW VALUE1 LABOR CAN ALSO TRANSF] TO ! NEW COMMODITIES ! OLD VALUES 9CORPORAT$ 9 ! MEANS ( PRODUCTION EMPLOY$4 ,A BAK]'S WORK+ DAY ( T5 H\RS IS1 FROM ! CAPITALI/ PO9T ( VIEW1 DIVID$ 9TO PAID & UNPAID H\RS1 9TO V "4 S4 ,BUT ! COMMODITY PRODUC$ 9 !SE T5 H\RS WILL REPRES5T A GREAT] VALUE ?AN ?AT ( T5 H\RS' LABOR1 = IT WILL ALSO CONTA9 ! VALUE ( ! FL\R1 ( ! OV5 :I* IS US$1 ( ! PREMISES1 ( ! FUEL & SO ON1 9 %ORT ! VALUE ( ALL ! MEANS ( PRODUCTION NECESS>Y = BAK+4 ,UND] ONE CONDITION ALONE C\LD ! VALUE ( ANY ONE COMMODITY BE /RICTLY EQUAL TO V "4 S2 IF A MAN W]E TO WORK 9 MID-AIR1 )\T RAW MAT]IALS2 )\T TOOL'S OR WORK%OP4 ,BUT S9CE ALL WORK ON MAT]IALS 7MAT]IAL LABOR7 PRESUPPOSES MEANS ( PRODUCTION ( SOME SORT :I* !MSELVES RESULT FROM PREC$+ LABOR1 ! VALUE ( ?IS PA/ LABOR IS ( NECESSITY TRANSF]R$ TO ! NEW PRODUCT4 ,! PROCESS 9 QUE/ION DOES NOT ONLY TAKE PLACE 9 CAPITALI/ PRODUCTION2 IT IS ! G5]AL F\NDATION ( HUMAN LABOR1 QUITE 9DEP5D5T ( ! HI/ORICAL =M ( SOCIETY4 ,! H&L+ ( MAN-MADE TOOLS IS A FUNDAM5TAL *>ACT]I/IC ( HUMAN CIVILIZATION4 ,! CONCEPT ( PA/ LABOR :I* PREC$ES ALL NEW LABOR & PREP>ES ITS BASIS1 EXPRESSES ! NEXUS BETWE5 MAN & NATURE EVOLV$ 9 ! HI/ORY ( CIVILIZATION4 ,?IS IS ! ET]NAL *A9 ( CLOSELY 9T]WOV5 LABOR+ EF=TS ( HUMAN SOCIETY1 ! BEG9N+S ( :I* >E LO/ 9 ! GRAY DAWN ( ! SOCIALIZATION ( MANK9D1 & ! T]M9ATION ( :I* W\LD IMPLY ! 5D ( ! :OLE ( CIVILIZ$ MANK9D4 ,!RE=E WE HAVE TO PICTURE ALL HUMAN LABOR AS P]=M$ ) ! HELP ( TOOLS :I* !MSELVES >E ALREADY PRODUCTS ( ANTEC$5T LABOR4 ,EV]Y NEW PRODUCT ?US CONTA9S NOT ONLY ! NEW LABOR :]EBY IT IS GIV5 ITS F9AL =M1 BUT ALSO PA/ LABOR :I* HAD SUPPLI$ ! MAT]IALS = IT1 ! 9/RUM5TS ( LABOR & SO =?4 ,9 ! PRODUCTION ( VALUE1 ?AT IS COMMODITY PRODUCTION 9TO :I* CAPITALI/ PRODUCTION ALSO 5T]S1 ?IS PH5OM5ON IS NOT SUSP5D$1 IT ONLY RECEIVES A P>TICUL> EXPRESSION4 ,H]E ! LABOR :I* PRODUCES COMMODITIES ASSUMES A TW(OLD *>ACT]I/IC3 IT IS ON ! ONE H& USEFUL CONCRETE LABOR ( SOME K9D OR O!R1 CREAT+ ! USEFUL OBJECT1 ! VALUE-9-USE4 ,ON ! O!R H&1 IT IS AB/RACT1 G5]AL1 SOCIALLY NECESS>Y LABOR & AS SU* CREATES VALUE4 ,9 ITS FIR/ ASPECT IT DOES :AT LABOR HAS ALWAYS DONE3 IT TRANSF]S TO ! NEW PRODUCT PA/ LABOR1 9CORPORAT$ 9 ! MEANS ( PRODUCTION EMPLOY$1 ) ?IS DI/9CTION ONLY1 ?AT ?IS PA/ LABOR1 TOO1 N[ APPE>S AS VALUE1 AS OLD VALUE4 ,9 ITS SECOND ASPECT1 LABOR CREATES NEW VALUE :I*1 9 CAPITALI/ T]MS1 CAN BE R$UC$ TO PAID & UNPAID LABOR1 TO V "4 S4 ,?US ! VALUE ( EV]Y COMMODITY MU/ CONTA9 OLD VALUE :I* HAS BE5 TRANSF]R$ BY LABOR QUA USEFUL CONCRETE LABOR FROM ! MEANS ( PRODUCTION TO ! COMMODITY1 AS WELL AS ! NEW VALUE1 CREAT$ BY ! SAME LABOR QUA SOCIALLY NECESS>Y LABOR M]ELY AS ?IS LABOR IS EXP5D$ H\R BY H\R4 ,?IS DI/9CTION WAS BEYOND ,SMI?3 HE DID NOT DIFF]5TIATE ! TW(OLD *>ACT] ( VALUE-CREAT+ LABOR4 ,M>X ONCE CLAIM$ TO HAVE DISCOV]$ ! ULTIMATE S\RCE ( ,SMI?'S /RANGE DOGMA - ?AT ! AGGREGATE ( PRODUC$ VALUES CAN BE COMPLETELY RESOLV$ 9TO V "4 S - 9 HIS FUNDAM5TALLY ]RONE\S !ORY ( VALUE47#c7 ,FAILURE TO DIFF]5TIATE BETWE5 ! TWO ASPECTS ( COMMODITY-PRODUC+ LABOR AS CONCRETE & USEFUL LABOR ON ! ONE H&1 & AB/RACT & SOCIALLY NECESS>Y LABOR ON ! O!R1 9DE$ =MS ONE ( ! MO/ IMPORTANT *>ACT]I/ICS ( ! !ORY ( VALUE AS CONCEIV$ NOT ONLY BY ,SMI? BUT BY ALL MEMB]S ( ! CLASSICAL S*OOL4 ,DISREG>D+ ALL SOCIAL CONSEQU5CES1 CLASSICAL ECONOMICS RECOGNIZ$ ?AT HUMAN LABOR ALONE IS ! FACTOR :I* CREATES VALUE1 & IT WORK$ \T ?IS !ORY TO ?AT DEGREE ( CL>ITY :I* WE MEET 9 ,RIC>DO'S =MULATION4 ,!RE IS A FUNDAM5TAL DI/9CTION1 H[EV]1 BETWE5 ,M>X'S !ORY ( VALUE & ,RIC>DO'S1 A DI/9CTION :I* HAS BE5 MISUND]/OOD NOT ONLY BY B\RGEOIS ECONOMI/S BUT ALSO 9 MO/ CASES BY ! POPUL>IZ]S ( ,M>X'S DOCTR9E3 ,RIC>DO1 CONCEIV+ AS HE DID1 ( B\RGEOIS ECONOMY 9 T]MS ( NATURAL LAW1 BELIEV$ ALSO ?AT ! CREATION ( VALUE1 TOO1 IS A NATURAL PROP]TY ( HUMAN LABOR1 ( ! SPECIFIC & CONCRETE LABOR ( ! 9DIVIDUAL HUMAN BE+4 ,?IS VIEW IS EV5 MORE BLATANTLY REVEAL$ 9 ! WRIT+S ( ,ADAM ,SMI? :O = 9/ANCE DECL>ES :AT HE CALLS ! 'PROP5SITY TO EX*ANGE' TO BE A QUALITY PECULI> TO HUMAN NATURE1 HAV+ LOOK$ = IT 9 VA9 9 ANIMALS1 P>TICUL>LY 9 DOGS4 ,& AL?\< HE D\BT$ ! EXI/5CE ( ! PROP5SITY TO EX*ANGE 9 ANIMALS1 ,SMI? ATTRIBUT$ TO ANIMAL AS WELL AS HUMAN LABOR ! FACILITY ( CREAT+ VALUE1 ESPECIALLY :5 HE OCCASIONALLY RELAPSES 9TO ! ,PHYSIOCRAT DOCTR9E3 ',NO EQUAL CAPITAL PUTS 9TO MOTION A GREAT] QUANTITY ( PRODUCTIVE LABOR ?AN ?AT ( ! F>M]4 ,NOT ANY ( HIS LABOR+ S]VANTS1 BUT HIS LABOR+ CATTLE1 >E PRODUCTIVE LABOR]S 444'7#d7 ',! LABOR]S & LABOR+ CATTLE1 !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 !M1 TOGE!R ) ITS [N]'S PR(ITS1 BUT ( A MU* GREAT] VALUE3 ,OV] & ABOVE ! CAPITAL ( ! F>M] & ALL ITS PR(ITS1 !Y REGUL>LY OCCASION ! REPRODUCTION ( ! R5T ( ! L&LORD407#e7 ,SMI?'S BELIEF ?AT ! CREATION ( VALUE IS A DIRECT PHYSIOLOGICAL PROP]TY ( LABOR1 A MANIFE/ATION ( ! ANIMAL ORGANISM 9 MAN1 F9DS ITS MO/ VIVID EXPRESSION H]E4 ,JU/ AS ! SPID] PRODUCES ITS WEB FROM ITS [N BODY1 SO LABOR+ MAN PRODUCES VALUE - LABOR+ MAN PURE & SIMPLE1 EV]Y MAN :O PRODUCES USEFUL OBJECTS - BECAUSE LABOR+ MAN IS BY BIR? A PRODUC] ( COMMODITIES2 9 ! SAME WAY HUMAN SOCIETY IS F\ND$ BY NATURE ON ! EX*ANGE ( COMMODITIES1 & A COMMODITY ECONOMY IS ! NORMAL =M ( HUMAN ECONOMY4 ,IT WAS LEFT TO ,M>X TO RECOGNIZE ?AT A GIV5 VALUE COV]S A DEF9ITE SOCIAL RELATION%IP :I* DEVELOPS UND] DEF9ITE HI/ORICAL CONDITIONS4 ,?US HE CAME TO DISCRIM9ATE BETWE5 ! TWO ASPECTS ( COMMODITY-PRODUC+ LABOR3 CONCRETE 9DIVIDUAL LABOR & SOCIALLY NECESS>Y LABOR4 ,:5 ?IS DI/9CTION IS MADE1 ! SOLUTION ( ! MONEY PROBLEM BECOMES CLE> ALSO1 AS ?\< A SPOTLIX HAD TO E/ABLI% A DYNAMIC DI/9CTION 9 ! C\RSE ( HI/ORY BETWE5 ! COMMODITY PRODUC] & ! LABOR+ MAN1 9 ORD] TO DI/+UI% ! TW9 ASPECTS ( LABOR :I* APPE> /ATIC 9 B\RGEOIS ECONOMY4 ,HE HAD TO DISCOV] ?AT ! PRODUCTION ( COMMODITIES IS A DEF9ITE HI/ORICAL =M ( SOCIAL PRODUCTION BE=E HE C\LD DECIPH] ! HI]OGLYPHICS ( CAPITALI/ ECONOMY4 ,9 A WORD1 ,M>X HAD TO APPROA* ! PROBLEM ) ME?ODS ( D$UCTION DIAMETRICALLY OPPOS$ TO ?OSE ( ! CLASSICAL S*OOL1 HE HAD 9 HIS APPROA* TO R5\NCE ! LATT]'S FAI? 9 ! HUMAN & NORMAL ELEM5T 9 B\RGEOIS PRODUCTION & TO RECOGNIZE !IR HI/ORICAL TRANSI5CE3 HE HAD TO REV]SE ! METAPHYSICAL D$UCTIONS ( ! CLASSICS 9TO !IR OPPOSITE1 ! DIALECTICAL4 ,ON ?IS %[+ ,SMI? C\LD NOT POSSIBLY HAVE >RIV$ AT A CLE> DI/9CTION BETWE5 ! TWO ASPECTS ( VALUE-CREAT+ LABOR1 :I* ON ! ONE H& TRANSF]S ! OLD VALUE 9CORPORAT$ 9 ! MEANS ( PRODUCTION TO ! NEW PRODUCT1 & ON ! O!R H& CREATES NEW VALUE AT ! SAME TIME4 ,MOREOV]1 !RE SEEMS TO BE YET ANO!R S\RCE ( HIS DOGMA ?AT TOTAL VALUE CAN BE COMPLETELY RESOLV$ 9TO V "4 S4 ,WE %\LD BE WRONG TO ASSUME ?AT ,SMI? LO/ SIX COMPLA9S1 FROM PILL> TO PO/1 9 ORD] TO %[ ! COMPLETE DIVISIBILITY ( ! AGGREGATE VALUE 9TO V "4 S - ,SMI? PROVES HIMSELF WELL AW>E ( ! PO9T4 ,:AT IS /RANGE 9 ?IS CONNECTION IS ?AT HE AGA9 & AGA9 RESOLVES ! OLD VALUE ( ! MEANS ( PRODUCTION1 TOO1 9TO V "4 S1 SO AS F9ALLY TO COV] ! :OLE VALUE CONTA9$ 9 ! COMMODITY4 ',9 ! PRICE ( CORN1 = EXAMPLE1 ONE P>T PAYS ! R5T ( ! L&LORD1 ANO!R PAYS ! WAGES ( MA9T5ANCE ( ! LABOR]S & LABOR+ CATTLE EMPLOY$ 9 PRODUC+ IT1 & ! ?IRD PAYS ! PR(IT ( ! F>M]4 ,!SE ?REE P>TS 7WAGES1 PR(IT1 & R5T7 SEEM EI!R IMM$IATELY OR ULTIMATELY TO MAKE UP ! :OLE PRICE ( CORN4 ,A F\R? P>T1 IT MAY P]HAPS BE ?\Y = REPLAC+ ! /OCK ( ! F>M]1 OR = COMP5SAT+ ! WE> & TE> ( HIS LABOR+ CATTLE & O!R 9/RUM5TS ( HUSB&RY4 ,BUT IT MU/ BE CONSID]$ ?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 ( LABOR1 & PR(IT4'7#f7 ,APP>5TLY ,SMI?'S CONFUSION >OSE FROM ! FOLL[+ PREMISES3 FIR/1 ?AT ALL LABOR IS P]=M$ ) ! HELP ( MEANS ( PRODUCTION ( SOME K9D OR O!R - YET :AT >E !SE MEANS ( PRODUCTION ASSOCIAT$ ) ANY GIV5 LABOR 7SU* AS RAW MAT]IALS & TOOLS7 IF NOT ! PRODUCT ( PREVI\S LABOR8 ,FL\R IS A MEANS ( PRODUCTION TO :I* ! BAK] ADDS NEW LABOR4 ,YET FL\R IS ! RESULT ( ! MILL]'S1 WORK1 & 9 HIS H&S IT WAS NOT A MEANS ( PRODUCTION BUT ! V]Y PRODUCT1 9 ! SAME WAY AS NO ! BREAD & PA/RIES >E ! PRODUCT ( ! BAK]4 ,?IS PRODUCT1 FL\R1 AGA9 PRESUPPOSES GRA9 AS A MEANS ( PRODUCTION1 >ID IF WE GO ONE /EP FUR!R BACK ?IS CORN IS NOT A MEANS ( PRODUCTION 9 ! H&S ( ! F>M] BUT ! PRODUCT4 ,IT IS IMPOSSIBLE TO F9D ANY MEANS ( PRODUCTION 9 :I* VALUE IS EMBODI$1 )\T IT BE+ ITSELF ! PRODUCT ( SOME PREVI\S LABOR4 ,SECONDLY1 SPEAK+ 9 T]MS ( CAPITALISM1 IT FOLL[S FUR!R ?AT ALL CAPITAL :I* HAS BE5 COMPLETELY US$ UP 9 ! MANUFACTURE ( ANY COMMODITY1 CAN 9 ! 5D BE RESOLV$ 9TO A C]TA9 QUANTITY ( P]=M$ LABOR4 ,?IRDLY1 ! TOTAL VALUE ( ! COMMODITY1 9CLUD+ ALL CAPITAL ADVANCES1 CAN READILY BE RESOLV$ 9 ?IS MANN] 9TO A C]TA9 QUANTITY ( LABOR4 ,:AT IS TRUE = EV]Y COMMODITY1 MU/ GO ALSO = ! AGGREGATE ( COMMODITIES PRODUC$ BY A SOCIETY 9 ! C\RSE ( A YE>2 ITS AGGREGATE VALUE CAN SIMIL>LY BE RESOLV$ 9TO A QUANTITY ( P]=M$ LABOR4 ,F\R?LY1 ALL LABOR P]=M$ UND] CAPITALI/ CONDITIONS IS 4 DIVID$ 9TO TWO P>TS3 PAID LABOR :I* RE/ORES ! WAGES ADVANC$1 & UNPAID LABOR :I* CREATES PR(IT & R5T1 OR SURPLUS VALUE4 ,ALL LABOR C>RI$ \T UND] CAPITALI/ CONDITIONS ?US CORRESPONDS TO \R =MULA V "4 S47#g7 ,ALL ! >GUM5TS \TL9$ ABOVE >E P]FECTLY CORRECT & UNASSAILABLE4 ,SMI? H&L$ !M 9 A MANN] :I* PROVES HIS SCI5TIFIC ANALYSIS CONSI/5T & UNDEVIAT+1 & HIS CONCEPTIONS ( VALUE & SURPLUS VALUE A DI/9CT ADVANCE ON ! ,PHYSIOCRAT APPROA*4 ,ONLY OCCASIONALLY1 9 HIS ?IRD !SIS1 HE W5T A/RAY 9 HIS F9AL CONCLUSION1 SAY+ ?AT ! AGGREGATE VALUE ( ! ANNUALLY PRODUC$ AGGREGATE ( COMMODITIES CAN BE RESOLV$ 9TO ! LABOR ( ?AT V]Y YE>1 AL?\< HE HIMSELF HAD BE5 ACUTE 5\< TO ADMIT ELSE:]E ?AT ! VALUE ( ! COMMODITIES A NATION PRODUCES 9 ! C\RSE ( ONE YE> NECESS>ILY 9CLUDES ! LABOR ( =M] YE>S AS WELL1 ?AT IS ! LABOR EMBODI$ 9 ! MEANS ( PRODUCTION :I* HAVE BE5 H&$ D[N4 ,BUT EV5 IF ! F\R /ATEM5TS 5UM]AT$ >E P]FECTLY CORRECT 9 !MSELVES1 ! CONCLUSION ,SMI? DRAWS FROM !M - ?AT ! TOTAL VALUE ( EV]Y COMMODITY1 & EQUALLY ( ! ANNUAL AGGREGATE ( COMMODITIES 9 A SOCIETY1 CAN BE RESOLV$ 5TIRELY 9TO V "4 S - IS ABSOLUTELY WRONG4 ,HE HAS ! RIIABLE CAPITAL1 & SECONDLY1 TO CREATE SURPLUS VALUE = ! CAPITALI/4 ,WAGE LABOR FULFILLS ?IS FUNCTION :IL/ IT IS EMPLOY$ BY ! CAPITALI/S1 9 VIRTUE ( ! FACT ?AT ! VALUE ( ! COMMODITIES IS REALIZ$ 9 CA%4 ,! CAPITALI/ TAKES BACK ! V>IABLE CAPITAL HE HAD ADVANC$ 9 =M ( WAGES1 & HE POCKETS ! SURPLUS VALUE AS WELL4 V "4 S !RE=E EXPRESSES ! RELATION BETWE5 WAGE LABOR & CAPITALI/1 A RELATION%IP ?AT IS T]M9AT$ 9 EV]Y 9/ANCE AS SOON AS ! PROCESS ( COMMODITY PRODUCTION IS F9I%$4 ,ONCE ! COMMODITY IS SOLD1 & ! RELATION V "4 S IS REALIZ$ = ! CAPITALI/ 9 CA%1 ! :OLE RELATION%IP IS WIP$ \T & LEAVES NO TRACES ON ! COMMODITY4 ,IF WE EXAM9E ! COMMODITY & ITS VALUE1 WE CANNOT ASC]TA9 :E!R IT HAS BE5 PRODUC$ BY PAID OR BY UNPAID LABOR1 NOR 9 :AT PROPORTION !SE HAVE CONTRIBUT$4 ,ONLY ONE FACT IS BEYOND D\BT3 ! COMMODITY CONTA9S A C]TA9 QUANTITY ( SOCIALLY NECESS>Y LABOR :I* IS EXPRESS$ 9 ITS EX*ANGE4 ,IT IS COMPLETELY IMMAT]IAL = ! ACT ( EX*ANGE AS WELL AS = ! USE ( ! COMMODITY :E!R ! LABOR :I* PRODUC$ IT C\LD BE RESOLV$ 9TO V "4 S OR NOT4 ,9 ! ACT ( EX*ANGE ALL ?AT MATT]S IS ?AT ! COMMODITY REPRES5TS VALUE1 & ONLY ITS CONCRETE QUALITIES1 ITS USEFULNESS1 >E RELEVANT TO ! USE WE MAKE ( IT4 ,?US ! =MULA V "4 S ONLY EXPRESSES1 AS IT W]E1 ! 9TIMATE RELATION%IP BETWE5 CAPITAL & LABOR1 ! SOCIAL FUNCTION ( WAGE LABOR1 & 9 ! ACTUAL PRODUCT ?IS IS COMPLETELY WIP$ \T4 ,IT IS DIFF]5T ) ! CON/ANT CAPITAL :I* HAS BE5 ADVANC$ & 9VE/$ 9 MEANS ( PRODUCTION1 BECAUSE EV]Y ACTIVITY ( LABOR REQUIRES C]TA9 RAW MAT]IALS1 TOOLS1 & BUILD+S4 ,! CAPITALI/ *>ACT] ( ?IS /ATE ( AFFAIRS IS EXPRESS$ BY ! FACT ?AT !SE MEANS ( PRODUCTION APPE> AS CAPITAL1 AS C1 AS ! PROP]TY ( A P]SON O!R ?AN ! LABOR]1 DIVORC$ FROM LABOR1 ! PROP]TY ( ?OSE :O1 !MSELVES DO NOT1 WORK4 ,SECONDLY1 ! CON/ANT CAPITAL C1 A M]E ADVANCE LAID \T = ! PURPOSE ( CREAT+ SURPLUS VALUE1 APPE>S H]E ONLY AS ! F\NDATION ( V "4 S4 ,YET ! CONCEPT ( CON/ANT CAPITAL 9VOLVES MORE ?AN ?IS3 IT EXPRESSES ! FUNCTION ( ! MEANS ( PRODUCTION 9 ! PROCESS ( HUMAN LABOR1 QUITE 9DEP5D5TLY ( ALL ITS HI/ORICAL OR SOCIAL =MS4 ,EV]YBODY MU/ HAVE RAW MAT]IALS & WORK+ TOOLS1 ! MEANS ( PRODUCTION1 BE IT ! ,S\? ,SEA ,ISL&] = MAK+ HIS FAMILY CANOE1 ! COMMUNI/ PEASANT COMMUNITY 9 ,9DIA = ! CULTIVATION ( !IR COMMUNAL L&1 ! ,EGYPTIAN FELLAH = TILL+ HIS VILLAGE L&S OR = BUILD+ ,PH>AOH'S PYRAMIDS1 ! ,GREEK SLAVE 9 ! SMALL WORK%OPS ( ,A!NS1 ! FEUDAL S]F1 ! MA/] CRAFTSMAN ( ! M$IEVAL GUILD1 OR ! MOD]N WAGE LABOR]4 ,!Y ALL REQUIRE MEANS ( PRODUCTION :I*1 HAV+ RESULT$ FROM HUMAN LABOR1 EXPRESS ! L9K BETWE5 HUMAN LABOR & NATURAL MATT]1 & CON/ITUTE ! ET]NAL & UNIV]SAL PR]EQUISITES ( ! HUMAN PROCESS ( PRODUCTION 9 ! =MULA C "4 V "4 S /&S = A C]TA9 FUNCTION ( ! MEANS ( PRODUCTION :I* IS NOT WIP$ \T 9 ! SUCCESSION ( ! LABOR PROCESS4 ,:]EAS IT IS COMPLETELY IMMAT]IAL1 = BO? ! EX*ANGE & ! ACTUAL USE MADE ( A COMMODITY1 :E!R IT HAS BE5 PRODUC$ BY PAID OR BY UNPAID LABOR1 BY WAGE LABOR1 SLAVE LABOR1 =C$ LABOR OR ANY O!R K9D ( LABOR2 ON ! O!R H&1 IT IS ( DECISIVE IMPORTANCE1 AS = US+ IT1 :E!R ! COMMODITY IS ITSELF A MEANS ( PRODUCTION OR A CONSUM] GOOD4 ,:E!R PAID OR UNPAID LABOR HAS BE5 EMPLOY$ 9 ! PRODUCTION ( A MA*9E1 MATT]S TO ! MA*9]Y MANUFACTUR] & TO HIS WORK]S1 BUT ONLY TO !M2 = SOCIETY1 :5 IT ACQUIRES ?IS MA*9E BY AN ACT ( EX*ANGE1 ONLY ! QUALITY ( ?IS MA*9E AS A MEANS ( PRODUCTION1 ONLY ITS FUNCTION 9 ! PROCESS ( PRODUCTION IS ( IMPORTANCE4 ,JU/ AS EV]Y PRODUC+ SOCIETY1 S9CE TIME IMMEMORIAL1 HAS HAD TO GIVE DUE REG>D TO ! IMPORTANT FUNCTION ( ! MEANS ( PRODUCTION BY >RANG+1 9 EA* P]IOD ( PRODUCTION1 = ! MANUFACTURE ( ! MEANS ( PRODUCTION REQUISITE = ! NEXT P]IOD1 SO CAPITALI/ SOCIETY1 TOO1 CANNOT A*IEVE ITS ANNUAL PRODUCTION ( VALUE TO ACCORD ) ! =MULA V "4 S - :I* 9DICATES ! EXPLOITATION ( WAGE LABOR - UNLESS !RE EXI/S1 AS ! RESULT ( ! PREC$+ P]IOD1 ! QUANTITY ( MEANS ( PRODUCTION NECESS>Y TO MAKE UP ! CON/ANT CAPITAL4 ,?IS SPECIFIC CONNECTION ( EA* PA/ P]IOD ( PRODUCTION ) ! P]IOD FOLL[+ =MS ! UNIV]SAL & ET]NAL F\NDATION ( ! SOCIAL PROCESS ( REPRODUCTION & CONSI/S 9 ! FACT ?AT 9 EV]Y P]IOD P>TS ( ! PRODUCE >E DE/9$ TO BECAME ! MEANS ( PRODUCTION = ! SUCCE$+ P]IOD3 BUT ?IS RELATION REMA9$ HIDD5 FROM ,SMI?'S SIE APPLI$2 HE WAS ONLY CONC]N$ ) !M 9 SO F> AS !Y >E LIKE ANY O!R COMMODITY1 !MSELVES ! PRODUCT ( WAGE LABOR ?AT HAS BE5 EMPLOY$ 9 A CAPITALI/ MANN]4 ,! SPECIFICALLY CAPITALI/ FUNCTION ( WAGE LABOR 9 ! PRODUCTIVE PROCESS COMPLETELY OBSCUR$ = HIM ! ET]NAL & UNIV]SAL FUNCTION ( ! MEANS ( PRODUCTION )9 ! LABOR PROCESS4 ,HIS N>R[ B\RGEOIS APPROA* OV]LOOK$ COMPLETELY ! G5]AL RELATIONS BETWE5 MAN & NATURE UND]NEA? ! SPECIFIC SOCIAL RELATIONS BETWE5 CAPITAL & WAGE LABOR4 ,H]E1 IT SEEMS1 IS ! REAL S\RCE ( ,ADAM ,SMI?'S /RANGE DOGMA1 ?AT ! TOTAL VALUE ( ! ANNUAL SOCIAL PRODUCT CAN BE RESOLV$ 9TO V "4 S4 ,HE OV]LOOK$ ! FACT ?AT C AS ! FIR/ L9K 9 ! =MULA C "4 V "4 S IS ! ESS5TIAL EXPRESSION ( ! G5]AL SOCIAL F\NDATION ( EXPLOITATION ( WAGE LABOR BY CAPITAL4 ,WE CONCLUDE ?AT ! VALUE ( EV]Y COMMODITY MU/ BE EXPRESS$ BY ! =MULA C "4 V "4 S4 ,! QUE/ION N[ >ISES H[ F> ?IS =MULA APPLIES TO ! AGGREGATE ( COMMODITIES )9 A SOCIETY4 ,LET US TURN TO ! D\BTS EXPRESS$ BY ,SMI? ON ?IS PO9T1 ! /ATEM5T ?AT AN 9DIVIDUAL'S FIX$ & CIRCULAT+ CAPITAL & HIS REV5UE DO NOT /RICTLY CORRESPOND TO ! SAME CATEGORIES FROM ! PO9T ( VIEW ( SOCIETY4 7,CF4 ABOVE1 P4#f#d1 NO4#c47 ,:AT IS CIRCULAT+ CAPITAL = ONE P]SON IS NOT CAPITAL = ANO!R1 BUT REV5UE1 AS = 9/ANCE CAPITAL ADVANCES = WAGES4 ,?IS /ATEM5T IS BAS$ UPON AN ]ROR4 ,IF ! CAPITALI/ PAYS WAGES TO ! WORK]S1 HE DOES NOT AB&ON HIS V>IABLE CAPITAL & LET IT /RAY 9TO ! WORK]S' H&S1 TO BECOME !IR 9COME4 ,HE ONLY EX*ANGES ! VALUE-=M ( HIS V>IABLE CAPITAL AGA9/ ITS NATURAL =M1 LABOR P[]4 ,! V>IABLE CAPITAL REMA9S ALWAYS 9 ! H& ( ! CAPITALI/1 FIR/ AS MONEY1 & !N AS LABOR P[]1 TO REV]T TO HIM LAT] TOGE!R ) ! SURPLUS VALUE AS ! CA% PROCE$S FROM ! COMMODITIES4 ,! WORK]1 ON ! O!R H&1 NEV] GA9S POSSESSION ( ! V>IABLE CAPITAL4 ,HIS LABOR P[] IS NEV] CAPITAL TO HIM1 BUT IT IS HIS ONLY ASSET2 ! P[] TO WORK IS ! ONLY ?+ HE POSSESSES4 ,AGA91 IF HE HAS SOLD IT & TAK5 A MONEY WAGE1 ?IS WAGE IS = HIM NOT CAPITAL BUT ! PRICE ( HIS COMMODITY :I* HE HAS SOLD4 ,F9ALLY1 ! FACT ?AT ! WORK] BUYS PROVISIONS ) ! WAGES HE HAS RECEIV$1 HAS NO MORE CONNECTION ) ! FUNCTION ?IS MONEY ONCE FULFILL$ AS V>IABLE CAPITAL 9 ! H&S ( ! CAPITALI/1 ?AN HAS ! PRIVATE USE A V5DOR ( A COMMODITY CAN MAKE ( ! MONEY HE HAS OBTA9$ BY A SALE4 ,IT IS NOT ! CAPITALI/'S V>IABLE CAPITAL :I* BECOMES ! WORK]S' 9COME1 BUT ! PRICE ( ! WORK]'S COMMODITY LABOR P[] :I* HE HAS SOLD1 :ILE ! V>IABLE CAPITAL1 N[ AS EV]1 REMA9S 9 ! H&S ( ! CAPITALI/ & FULFILLS ITS SPECIFIC FUNCTION4 ,EQUALLY ]RONE\S IS ! CONCEPTION ?AT ! 9COME ( ! CAPITALI/ 7! SURPLUS VALUE7 :I* IS HIDD5 9 MA*9ES - 9 \R EXAMPLE ( A MA*9]Y MANUFACTUR] - :I* HAS NOT AS YET BE5 REALIZ$1 IS FIX$ CAPITAL = ANO!R P]SON1 ! BUY] ( ! MA*9ES4 ,IT IS NOT ! MA*9ES1 OR P>TS ( !M1 :I* =M ! 9COME ( ! MA*9]Y MANUFACTUR]1 BUT ! SURPLUS VALUE ?AT IS HIDD5 9 !M - ! UNPAID LABOR ( HIS WAGE LABOR]S4 ,AFT] ! MA*9E HAS BE5 SOLD1 ?IS 9COME SIMPLY REMA9S AS BE=E 9 ! H& ( ! MA*9]Y MANUFACTUR]2 IT HAS ONLY *ANG$ ITS \TW>D %APE3 IT HAS BE5 *ANG$ FROM ! 'MA*9E-=M' 9TO ! 'MONEY-=M'4 ,CONV]SELY1 ! BUY] ( ?IS MA*9E HAS NOT1 BY ITS PUR*ASE1 NEWLY OBTA9$ POSSESSION ( HIS FIX$ CAPITAL1 = HE HAD ?IS FIX$ CAPITAL 9 H& EV5 BE=E ! PUR*ASE1 9 ! =M ( A C]TA9 AM\NT ( CA%4 ,BY BUY+ ?IS MA*9E1 HE HAS ONLY GIV5 TO HIS CAPITAL ! ADEQUATE MAT]IAL =M = IT TO BECOME PRODUCTIVE4 ,! 9COME1 OR SURPLUS VALUE1 REMA9S 9 ! H&S ( ! MA*9]Y MANUFACTUR] BE=E & AFT] ! SALE ( ! MA*9E1 & ! FIX$ CAPITAL REMA9S 9 ! H&S ( ! O!R P]SON1 ! CAPITALI/ BUY] ( ! MA*9E1 JU/ AS ! V>IABLE CAPITAL 9 ! FIR/ EXAMPLE ALWAYS REMA9$ 9 ! H&S ( ! CAPITALI/ & ! 9COME 9 ! H&S ( ! WORK]4 ,SMI? & HIS FOLL[]S HAVE CAUS$ CONFUSION BECAUSE1 9 !IR 9VE/IGATION ( CAPITALI/ EX*ANGE1 !Y MIX$ UP ! USE-=M ( ! COMMODITIES ) !IR RELATIONS ( VALUE4 ,FUR!R1 !Y DID NOT DI/+UI% ! 9DIVIDUAL CIRCULATIONS ( CAPITALS & COMMODITIES :I* >E EV] 9T]LAC+4 ,ONE & ! SAME ACT ( EX*ANGE CAN BE CIRCULATION ( CAPITAL1 :5 SE5 FROM ONE ASPECT1 & AT ! SAME TIME SIMPLE COMMODITY EX*ANGE = ! PURPOSE ( CONSUMPTION4 ,! FALLACY ?AT :ATEV] IS CAPITAL = ONE P]SON MU/ BE 9COME = ANO!R1 & VICE V]SA1 MU/ BE TRANSLAT$ ?US 9TO ! CORRECT /ATEM5T ?AT :AT IS CIRCULATION ( CAPITAL = ONE P]SON1 MAY BE SIMPLE COMMODITY EX*ANGE = ANO!R1 & VICE V]SA4 ,?IS ONLY EXPRESSES ! CAPACITY ( CAPITAL TO UND]GO TRANS=MATIONS ( ITS *>ACT]1 & ! 9T]CONNECTIONS ( V>I\S SPH]ES ( 9T]E/ 9 ! SOCIAL PROCESS ( EX*ANGE4 ,! %>PLY \TL9$ EXI/5CE ( CAPITAL 9 CONTRA/ ) 9COME /ILL /&S 9 BO? ITS CLE>LY DEF9$ =MS ( CON/ANT & V>IABLE CAPITAL4 ,EV5 SO1 ,SMI? COMES V]Y CLOSE TO ! TRU? :5 HE /ATES ?AT CAPITAL & 9COME ( ! 9DIVIDUAL >E NOT /RICTLY ID5TICAL ) ! SAME CATEGORIES FROM ! PO9T ( VIEW ( ! COMMUNITY4 ,ONLY A FEW FUR!R CONNECT+ L9KS >E LACK+ = A CLE> REVELATION ( ! TRUE RELATION%IP4 ,FOOTNOTES 7#a7,AN ,9QUIRY 9TO ! ,NATURE & ,CAUSES ( ! ,WEAL? ( ,NATIONS1 VOL4I1 P4#a#i 7#b7,!ORI5 UB] D5 ,MEHRW]T 7,/UTTG>T1 #a#i#e71 VOL4I1 PP4#a#g#i-#b#e#b 7#c7,CAPITAL1 VOL4 II1 P4 #dce 7#d7 ,SMI?1 OP4 CIT41 VOL4II1 P4#a#d#h4 7#e7,IBID41 P4#a#d#i4 7#f7,OP4 CIT41 VOL4#a1 PP4#h#f-#g4 7#g7 ,9 ?IS CONNECTION1 WE HAVE DISREG>D$ ! CONTR>Y CONCEPTION :I* ALSO RUNS ?R\< ! WORK ( ,SMI?4 ,ACCORD+ TO ?AT1 ! PRICE ( ! COMMODITY CANNOT BE RESOLV$ 9TO V "4 S1 ?\< ! VALUE ( COMMODITIES CONSI/S 9 V "4 S4 ,?IS DI/9CTION1 H[EV]1 IS MORE IMPORTANT ) REG>D TO ,SMI?'S !ORY ( VALUE ?AN 9 ! PRES5T CONTEXT :]E WE >E MA9LY 9T]E/$ 9 HIS =MULA V "4 S ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #f1 #bba 3 ,SECTION #a1 ,*APT] #c -- ,ADD$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/