,SECTION #c1 ,*APT] #be 
,! ,HI/ORICAL ,CONDITIONS ( ,ACCUMULATION3 ,CONTRADICTIONS ,)9 ! ,DIAGRAM ( ,5L>G$ ,REPRODUCTION 

,PEOPLE 3 

,AU?OR 3 ,ROSA ,LUXEMBURG 

,TEXT 3 

,9 ! FIR/ SECTION1 WE ASC]TA9$ ?AT ,M>X'S DIAGRAM ( ACCUMULATION DOES NOT SOLVE ! QUE/ION ( :O IS TO B5EFIT 9 ! 5D BY 5L>G$ REPRODUCTION4 ,IF WE TAKE ! DIAGRAM LIT]ALLY AS IT IS SET \T AT ! 5D ( VOLUME II1 IT APPE>S ?AT CAPITALI/ PRODUCTION W\LD ITSELF REALIZE ITS 5TIRE SURPLUS VALUE1 & ?AT IT W\LD USE ! CAPITALIZ$ SURPLUS VALUE EXCLUSIVELY = ITS [N NE$S4 ,?IS IMPRESSION IS CONFIRM$ BY ,M>X'S ANALYSIS ( ! DIAGRAM :]E HE ATTEMPTS TO R$UCE ! CIRCULATION )9 ! DIAGRAM ALTOGE!R TO T]MS ( MONEY1 ?AT IS TO SAY TO ! EFFECTIVE DEM& ( CAPITALI/S & WORK]S - AN ATTEMPT :I* 9 ! 5D LEADS HIM TO 9TRODUCE ! 'PRODUC] ( MONEY' AS A DEUS EX MA*9A4 ,9 ADDITION1 !RE IS ?AT MO/ IMPORTANT PASSAGE 9 ,CAPITAL1 VOLUME I1 :I* MU/ BE 9T]PRET$ TO MEAN ! SAME4 

',! ANNUAL PRODUCTION MU/ 9 ! FIR/ PLACE FURNI% ALL ?OSE OBJECTS 7USE-VALUES7 FROM :I* ! MAT]IAL COMPON5TS ( CAPITAL1 US$ UP 9 ! C\RSE ( ! YE>1 HAVE TO BE REPLAC$4 ,D$UCT+ !SE !RE REMA9S ! NET OR SURPLUS-PRODUCT1 9 :I* ! SURPLUS-VALUE LIES4 ,& ( :AT DOES ?IS SURPLUS VALUE CONSI/8 ,ONLY ( ?+S DE/9$ TO SATISFY ! WANTS & DESIRES ( ! CAPITALI/ CLASS1 ?+S :I*1 CONSEQU5TLY1 5T] 9TO ! CONSUMPTION FUND ( ! CAPITALI/S8 ,W]E ?AT ! CASE1 ! CUP ( SURPLUS-VALUE W\LD BE DRA9$ TO ! V]Y DREGS1 & NO?+ BUT SIMPLE REPRODUCTION W\LD EV] TAKE PLACE4 

',TO ACCUMULATE IT IS NECESS>Y TO CONV]T A PORTION ( ! SURPLUS-PRODUCT 9TO CAPITAL4 ,BUT WE CANNOT1 EXCEPT BY A MIRACLE1 CONV]T 9TO CAPITAL ANY?+ BUT SU* >TICLES AS CAN BE EMPLOY$ 9 ! LABOR-PROCESS 7I4E4 MEANS ( PRODUCTION71 & SU* FUR!R >TICLES AS >E SUITABLE = ! SU/5ANCE ( ! LABOR] 7I4E4 MEANS ( SUBSI/5CE74 ,CONSEQU5TLY1 A P>T ( ! ANNUAL SURPLUS-LABOR MU/ HAVE BE5 APPLI$ TO ! PRODUCTION ( ADDITIONAL MEANS ( PRODUCTION & SUBSI/5CE1 OV] & ABOVE ! QUANTITY ( !SE ?+S REQUIR$ TO REPLACE ! CAPITAL ADVANC$4 ,9 ONE WORD1 SURPLUS-VALUE IS CONV]TIBLE 9TO CAPITAL SOLELY BECAUSE ! SURPLUS-PRODUCT1 :OSE VALUE IT IS1 ALREADY COMPRISES ! MAT]IAL ELEM5TS ( NEW CAPITAL4'7#a7 

,! FOLL[+ CONDITIONS ( ACCUMULATION >E H]E LAID D[N3 

,! SURPLUS VALUE TO BE CAPITALIZ$ FIR/ COMES 9TO BE+ 9 ! NATURAL =M ( CAPITAL 7AS ADDITIONAL MEANS ( PRODUCTION & ADDITIONAL MEANS ( SUBSI/5CE = ! WORK]S74 

,! EXPANSION ( CAPITALI/ PRODUCTION IS A*IEV$ EXCLUSIVELY BY MEANS ( CAPITALI/ PRODUCTS1 I4E4 ITS [N MEANS ( PRODUCTION & SUBSI/5CE4 

,! LIMITS ( ?IS EXPANSION >E EA* TIME DET]M9$ 9 ADVANCE BY ! AM\NT ( SURPLUS VALUE :I* IS TO BE CAPITALIZ$ 9 ANY GIV5 CASE2 !Y CANNOT BE EXT5D$1 S9CE !Y DEP5D ON ! AM\NT ( ! MEANS ( PRODUCTION & SUBSI/5CE :I* MAKE UP ! SURPLUS PRODUCT2 NEI!R CAN !Y BE R$UC$1 S9CE A P>T ( ! SURPLUS VALUE C\LD NOT !N BE EMPLOY$ 9 ITS NATURAL =M4 ,DEVIATIONS 9 EI!R DIRECTION 7ABOVE & BEL[7 MAY GIVE RISE TO P]IODICAL FLUCTUATIONS & CRISES - 9 ?IS CONTEXT1 H[EV]1 !SE MAY BE IGNOR$1 BECAUSE 9 G5]AL ! SURPLUS PRODUCT TO BE CAPITALIZ$ MU/ BE EQUAL TO ACTUAL ACCUMULATION2 

,S9CE CAPITALI/ PRODUCTION BUYS UP ITS 5TIRE SURPLUS PRODUCT1 !RE IS NO LIMIT TO ! ACCUMULATION ( CAPITAL4 

,M>X'S DIAGRAM ( 5L>G$ REPRODUCTION ADH]ES TO !SE CONDITIONS4 ,ACCUMULATION H]E TAKES ITS C\RSE1 BUT IT IS NOT 9 ! LEA/ 9DICAT$ :O IS TO B5EFIT BY IT1 :O >E ! NEW CONSUM]S = :OSE SAKE PRODUCTION IS EV] MORE 5L>G$4 ,! DIAGRAM ASSUMES1 SAY1 ! FOLL[+ C\RSE ( EV5TS3 ! COAL 9DU/RY IS EXP&$ 9 ORD] TO EXP& ! IRON 9DU/RY 9 ORD] TO EXP& ! MA*9E 9DU/RY 9 ORD] TO EXP& ! PRODUCTION ( CONSUM] GOODS4 ,?IS LA/1 9 TURN1 IS EXP&$ TO MA9TA9 BO? ITS [N WORK]S & ! GR[+ >MY ( COAL1 IRON & MA*9E OP]ATIVES4 ,& SO ON AD 9F9ITUM4 ,WE >E RUNN+ 9 CIRCLES1 QUITE 9 ACCORDANCE ) ! !ORY ( ,TUGAN ,B>ANOVSKI4 ,CONSID]$ 9 ISOLATION1 ,M>X'S DIAGRAM DOES 9DE$ P]MIT ( SU* AN 9T]PRETATION S9CE HE HIMSELF EXPLICITLY /ATES TIME & AGA9 ?AT HE AIMS AT PRES5T+ ! PROCESS ( ACCUMULATION ( ! AGGREGATE CAPITAL 9 A SOCIETY CONSI/+ SOLELY ( CAPITALI/S & WORK]S4 ,PASSAGES TO ?IS EFFECT CAN BE F\ND 9 EV]Y VOLUME ( ,CAPITAL4 

,9 VOLUME I1 9 ! V]Y *APT] ON ,! ,CONV]SION ( ,SURPLUS-,VALUE 9TO ,CAPITAL1 HE SAYS3 

',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/RY4'7#b7 

,9 VOLUME II1 ! ASSUMPTION REPEAT$LY RETURNS2 ?US 9 *APT] #ag ON ,! ,CIRCULATION ( ,SURPLUS-,VALUE3 

',N[1 !RE >E ONLY TWO PO9TS ( DEP>TURE3 ,! CAPITALI/ & ! LABOR]4 ,ALL ?IRD CLASSES ( P]SONS MU/ EI!R RECEIVE MONEY = !IR S]VICES FROM !SE TWO CLASSES1 OR1 TO ! EXT5T ?AT !Y RECEIVE IT )\T ANY EQUIVAL5T S]VICES1 !Y >E JO9T [N]S ( ! SURPLUS-VALUE 9 ! =M ( R5T1 9T]E/1 ETC4 444 ,! CAPITALI/ CLASS1 !N1 REMA9S ! SOLE PO9T ( DEP>TURE ( ! CIRCULATION ( MONEY4'7#c7 

,FUR!R1 9 ! SAME *APT] ,ON ! ,CIRCULATION ( ,MONEY 9 ,P>TICUL> UND] ,ASSUMPTION ( ,ACCUMULATION3 

',BUT ! DIFFICULTY >ISES :5 WE ASSUME1 NOT A P>TIAL1 BUT A G5]AL ACCUMULATION ( MONEY-CAPITAL ON ! P>T ( ! CAPITALI/ CLASS4 ,AP>T FROM ?IS CLASS1 !RE IS1 ACCORD+ TO \R ASSUMPTION - ! G5]AL & EXCLUSIVE DOM9ATION ( CAPITALI/ PRODUCTION - NO O!R CLASS BUT ! WORK+ CLASS4'7#d7 

,& AGA9 9 *APT] #b3 

'444 !RE >E ONLY TWO CLASSES 9 ?IS CASE1 ! WORK+ CLASS DISPOS+ ( !IR LABOR-P[]1 & ! CAPITALI/ CLASS [N+ ! SOCIAL MEANS ( PRODUCTION & ! MONEY4'7#e7 

,9 VOLUME III1 ,M>X SAYS QUITE EXPLICITLY1 :5 DEMON/RAT+ ! PROCESS ( CAPITALI/ PRODUCTION AS A :OLE3 

',LET US SUPPOSE ?AT ! :OLE SOCIETY IS COMPOS$ ONLY ( 9DU/RIAL CAPITALI/S & WAGE WORK]S4 ,LET US FUR!RMORE MAKE EXCEPTIONS ( FLUCTUATIONS ( PRICES :I* PREV5T L>GE PORTIONS ( ! TOTAL CAPITAL FROM REPRODUC+ !MSELVES UND] AV]AGE CONDITIONS & :I*1 [+ TO ! G5]AL 9T]RELATIONS ( ! 5TIRE PROCESS ( REPRODUCTION1 SU* AS >E DEVELOP$ P>TICUL>LY BY CR$IT1 MU/ ALWAYS CALL =? G5]AL /OPPAGES ( A TRANSI5T NATURE4 ,LET US ALSO MAKE AB/RACTION ( ! BOGUS TRANSACTIONS & SPECULATIONS1 :I* ! CR$IT SY/EM FAVORS4 ,9 ?AT CASE1 A CRISIS C\LD BE EXPLA9$ ONLY BY A DISPROPORTION ( PRODUCTION 9 V>I\S BRAN*ES1 & BY A DISPROPORTION ( ! CONSUMPTION ( ! CAPITALI/S & ! ACCUMULATION ( !IR CAPITALS4 ,BUT AS MATT]S /&1 ! REPRODUCTION ( ! CAPITALS 9VE/$ 9 PRODUCTION DEP5DS L>GELY UPON ! CONSUM+ P[] ( ! NON-PRODUC+ CLASSES2 :ILE ! CONSUM+ P[] ( ! LABOR]S IS H&ICAPP$ P>TLY BY ! LAWS ( WAGES1 P>TLY BY ! FACT ?AT IT CAN BE EX]T$ ONLY SO LONG AS ! LABOR]S CAN BE EMPLOY$ AT A PR(IT = ! CAPITALI/ CLASS4'7#f7 

,?IS LA/ QUOTATION REF]S TO ! QUE/ION ( CRISES ) :I* WE >E NOT H]E CONC]N$4 ,IT CAN LEAVE NO D\BT1 H[EV]1 ?AT ! MOVEM5T ( ! TOTAL CAPITAL1 'AS MATT]S /&'1 DEP5DS 9 ,M>X'S VIEW ON ?REE CATEGORIES ( CONSUM]S ONLY ! CAPITALI/S1 ! WORK]S & ! 'NONPRODUCTIVE CLASSES'1 I4E4 ! HANG]S-ON ( ! CAPITALI/ CLASS 7K+1 P>SON1 PR(ESSOR1 PRO/ITUTE1 M]C5>Y71 ( :OM HE QUITE RI<TLY DISPOSES 9 VOLUME II AS ! M]E REPRES5TATIVES ( A D]IVATIVE PUR*AS+ P[]1 & ?US ! P>ASITIC JO9T CONSUM]S ( ! SURPLUS VALUE OR ( ! WAGE ( LABOR4 

,F9ALLY1 9 ,!ORIES ( ,SURPLUS ,VALUE17#g7 ,M>X =MULATES HIS G5]AL PRESUPPOSITIONS ) REG>D TO ACCUMULATION AS FOLL[S3 

',H]E WE HAVE ONLY TO CONSID] ! =MS ?R\< :I* CAPITAL PASSES DUR+ ! V>I\S /AGES ( ITS DEVELOPM5T4 ,?US WE DO NOT SET \T ! ACTUAL CONDITIONS ( ! REAL PROCESS ( PRODUCTION1 BUT ALWAYS ASSUME ?AT ! COMMODITY IS SOLD = :AT IT IS WOR?4 ,WE IGNORE ! COMPETITION ( CAPITALI/S & ! CR$IT SY/EM2 WE ALSO LEAVE \T ( ACC\NT ! ACTUAL CON/ITUTION ( SOCIETY :I* NEV] CONSI/S EXCLUSIVELY ( ! CLASSES ( WORK]S & 9DU/RIAL CAPITALI/S1 & :]E !RE IS ACCORD+LY NO /RICT DIVISION BETWE5 PRODUC]S & CONSUM]S4 ,! FIR/ CATEGORY 7( CONSUM]S1 :OSE REV5UES >E P>TLY ( A SECOND>Y1 NOT A PRIMITIVE NATURE1 D]IV$ FROM PR(ITS & ! WAGE ( LABOR7 IS MU* WID] ?AN ! SECOND CATEGORY 7( PRODUC]S74 ,!RE=E ! MANN] 9 :I* IT SP5DS ITS 9COME1 & ! EXT5T ( SU* 9COME1 EFFECTS V]Y L>GE MODIFICATIONS 9 ! ECONOMIC H\SEHOLD1 & ESPECIALLY SO 9 ! PROCESS ( CIRCULATION & REPRODUCTION ( CAPITAL4' 

,SPEAK+ ( ! 'ACTUAL CON/ITUTION ( SOCIETY'1 ,M>X H]E ALSO CONSID]S M]ELY ! P>ASITIC JO9T CONSUM]S ( SURPLUS VALUE & ( ! WAGE ( LABOR1 I4E4 ONLY ! HANG]S-ON ( ! PR9CIPAL CATEGORIES ( CAPITALI/ PRODUCTION4 

,!RE CAN BE NO D\BT1 !RE=E1 ?AT ,M>X WANT$ TO DEMON/RATE ! PROCESS ( ACCUMULATION 9 A SOCIETY CONSI/+ EXCLUSIVELY ( WORK]S & CAPITALI/S1 UND] ! UNIV]SAL & EXCLUSIVE DOM9ATION ( ! CAPITALI/ MODE ( PRODUCTION4 ,ON ?IS ASSUMPTION1 H[EV]1 HIS DIAGRAM DOES NOT P]MIT ( ANY O!R 9T]PRETATION ?AN ?AT ( PRODUCTION = PRODUCTION'S SAKE4 

,LET US RECALL ! SECOND EXAMPLE ( ,M>X'S DIAGRAM ( 5L>G$ REPRODUCTION3 

  

,H]E ACCUMULATION CONT9UES YE> AFT] YE> )\T 9T]RUPTION1 ! CAPITALI/S 9 EA* CASE CONSUM+ HALF ( ! SURPLUS VALUE !Y HAVE GA9$ & CAPITALIZ+ ! O!R HALF4 ,9 ! PROCESS ( CAPITALIZATION1 ! SAME TE*NICAL F\NDATION1 ?AT IS TO SAY ! SAME ORGANIC COMPOSITION OR DIVISION 9TO CON/ANT & V>IABLE CAPITAL & ALSO ! SAME RATE ( EXPLOITATION 7ALWAYS AM\NT+ TO #a P] C5T7 IS CONSECUTIVELY MA9TA9$ = ! ADDITIONAL CAPITAL AS IT WAS = ! ORIG9AL CAPITAL4 ,9 ACCORDANCE ) ,M>X'S ASSUMPTION 9 VOLUME I ( ,CAPITAL1 ! CAPITALIZ$ P>T ( ! SURPLUS VALUE FIR/ COMES 9TO BE+ AS ADDITIONAL MEANS ( PRODUCTION & AS MEANS ( SUBSI/5CE = ! WORK]S1 BO? S]V+ ! PURPOSE ( AN EV] EXP&+ PRODUCTION 9 ! TWO DEP>TM5TS4 ,IT CANNOT BE DISCOV]$ FROM ! ASSUMPTIONS ( ,M>X'S DIAGRAM = :OSE SAKE PRODUCTION IS PROGRESSIVELY EXP&$4 ,ADMITT$LY1 PRODUCTION & CONSUMPTION 9CREASE SIMULTANE\SLY 9 A SOCIETY4 ,! CONSUMPTION ( ! CAPITALI/S 9CREASES 79 T]MS ( VALUE1 9 ! FIR/ YE> IT AM\NTS TO #e "4 #a#a#b1 9 ! SECOND YE> TO #$b "4 #a#e#h1 9 ! ?IRD YE> TO #ehf "4 #a#g#a1 & 9 ! F\R? YE> TO #fce "4 #a#h#e72 ! CONSUMPTION ( ! WORK]S 9CREASES AS WELL2 ! V>IABLE CAPITAL 9CREAS+ YE> AFT] YE> 9 BO? DEP>TM5TS PRECISELY 9DICATES ?IS GR[? 9 T]MS ( VALUE4 ,& YET1 ! GR[+ CONSUMPTION ( ! CAPITALI/S CAN C]TA9LY NOT BE REG>D$ AS ! ULTIMATE PURPOSE ( ACCUMULATION2 ON ! CONTR>Y1 !RE IS NO ACCUMULATION 9ASMU* AS ?IS CONSUMPTION TAKES PLACE & 9CREASES2 P]SONAL CONSUMPTION ( ! CAPITALI/S MU/ BE REG>D$ AS SIMPLE REPRODUCTION4 ,RA!R1 ! QUE/ION IS3 IF1 & 9 SO F> AS1 ! CAPITALI/S DO NOT !MSELVES CONSUME !IR PRODUCTS BUT 'PRACTICE AB/95CE'1 I4E4 ACCUMULATE1 = :OSE SAKE DO !Y PRODUCE8 ,EV5 LESS CAN ! MA9T5ANCE ( AN EV] L>G] >MY ( WORK]S BE ! ULTIMATE PURPOSE ( CONT9U\S ACCUMULATION ( CAPITAL4 ,FROM ! CAPITALI/'S PO9T ( VIEW1 ! CONSUMPTION ( ! WORK]S IS A CONSEQU5CE ( ACCUMULATION1 IT IS NEV] ITS OBJECT OR ITS CONDITION1 UNLESS ! PR9CIPLES 7F\NDATIONS7 ( CAPITALI/ PRODUCTION >E TO BE TURN$ UPSIDE D[N4 ,& 9 ANY CASE1 ! WORK]S CAN ONLY CONSUME ?AT P>T ( ! PRODUCT :I* CORRESPONDS TO ! V>IABLE CAPITAL1 NOT A JOT MORE4 ,:O1 !N1 REALIZES ! P]MAN5TLY 9CREAS+ SURPLUS VALUE8 ,! DIAGRAM ANSW]S3 ! CAPITALI/S !MSELVES & !Y ALONE4 - ,& :AT DO !Y DO ) ?IS 9CREAS+ SURPLUS VALUE8 - ,! DIAGRAM REPLIES3 ,!Y USE IT = AN EV] GREAT] EXPANSION ( !IR PRODUCTION4 ,!SE CAPITALI/S >E ?US FANATICAL SUPPORT]S ( AN EXPANSION ( PRODUCTION = PRODUCTION'S SAKE4 ,!Y SEE TO IT ?AT EV] MORE MA*9ES >E BUILT = ! SAKE ( BUILD+ - ) !IR HELP - EV] MORE NEW MA*9ES4 ,YET ! UP%OT ( ALL ?IS IS NOT ACCUMULATION ( CAPITAL BUT AN 9CREAS+ PRODUCTION ( PRODUC] GOODS TO NO PURPOSE :ATEV]4 ,9DE$1 ONE MU/ BE AS RECKLESS AS ,TUGAN ,B>ANOVSKI1 & REJOICE AS MU* 9 P>ADOXICAL /ATEM5TS1 TO ASSUME ?AT ?IS UNTIR+ M]RY-GO-R\ND 9 ?9 AIR C\LD BE A FAI?FUL REFLECTION 9 !ORY ( CAPITALI/ REALITY1 A TRUE D$UCTION FROM ,M>X'S DOCTR9E47#h7 

,BESIDES ! ANALYSIS ( 5L>G$ REPRODUCTION R\<$ \T 9 ,CAPITAL1 VOLUME II1 ! :OLE ( ,M>X'S WORK1 VOLUME II 9 P>TICUL>1 CONTA9S A MO/ ELABORATE & LUCID EXPOSITION ( HIS G5]AL VIEWS REG>D+ ! TYPICAL C\RSE ( CAPITALI/ ACCUMULATION4 ,IF WE ONCE FULLY UND]/& ?IS 9T]PRETATION1 ! DEFICI5CIES ( ! DIAGRAM AT ! 5D ( VOLUME II >E IMM$IATELY EVID5T4 

,IF WE EXAM9E CRITICALLY ! DIAGRAM ( 5L>G$ REPRODUCTION 9 ! LI<T ( ,M>X'S !ORY1 WE F9D V>I\S CONTRADICTIONS BETWE5 ! TWO4 

,TO BEG9 )1 ! DIAGRAM COMPLETELY DISREG>DS ! 9CREAS+ PRODUCTIVITY ( LABOR4 ,= IT ASSUMES ?AT ! COMPOSITION ( CAPITAL IS ! SAME 9 EV]Y YE>1 ?AT IS TO SAY1 ! TE*NICAL BASIS ( ! PRODUCTIVE PROCESS IS NOT AFFECT$ BY ACCUMULATION4 ,?IS PROC$URE W\LD BE QUITE P]MISSIBLE 9 ITSELF 9 ORD] TO SIMPLIFY ! ANALYSIS1 BUT :5 WE COME TO EXAM9E ! CONCRETE CONDITIONS = ! REALIZATION ( ! AGGREGATE PRODUCT1 & = REPRODUCTION1 !N AT LEA/ WE MU/ TAKE 9TO ACC\NT1 & MAKE ALL[ANCE =1 *ANGES 9 TE*NIQUE :I* >E B\ND UP ) ! PROCESS ( CAPITAL ACCUMULATION4 ,YET IF WE ALL[ = IMPROV$ PRODUCTIVITY ( LABOR1 ! MAT]IAL AGGREGATE ( ! SOCIAL PRODUCT - BO? PRODUC] & CONSUM] GOODS - WILL 9 CONSEQU5CE %[ A MU* MORE RAPID 9CREASE 9 VOLUME ?AN IS SET =? 9 ! DIAGRAM4 ,?IS 9CREASE 9 ! AGGREGATE ( USE-VALUES1 MOREOV]1 9DICATES ALSO A *ANGE 9 ! VALUE RELATION%IPS4 ,AS ,M>X >GUES SO CONV9C+LY1 BAS+ HIS :OLE !ORY ON ?IS AXIOM1 ! PROGRESSIVE DEVELOPM5T ( LABOR PRODUCTIVITY REACTS ON BO? ! COMPOSITION ( ACCUMULAT+ CAPITAL & ! RATE ( SURPLUS VALUE SO ?AT !Y CANNOT REMA9 CON/ANT UND] CONDITIONS ( 9CREAS+ ACCUMULATION ( CAPITAL1 AS WAS ASSUM$ BY ! DIAGRAM4 ,RA!R1 IF ACCUMULATION CONT9UES1 C1 ! CON/ANT CAPITAL ( BO? DEP>TM5TS1 MU/ 9CREASE NOT ONLY ABSOLUTELY BUT ALSO RELATIVELY TO V"4C OR ! TOTAL NEW VALUE 7! SOCIAL ASPECT ( LABOR PRODUCTIVITY72 AT ! SAME TIMES CON/ANT CAPITAL & SIMIL>LY ! SURPLUS VALUE MU/ 9CREASE RELATIVELY TO ! V>IABLE CAPITAL - 9 %ORT1 ! RATE ( SURPLUS VALUE1 I4E4 ! RATIO BETWE5 SURPLUS VALUE & V>IABLE CAPITAL1 MU/ SIMIL>LY 9CREASE 7! CAPITALI/ ASPECT ( LABOR PRODUCTIVITY74 ,!SE *ANGES NE$ NOT1 ( C\RSE1 OCCUR ANNUALLY1 JU/ AS ! T]MS ( FIR/1 SECOND & ?IRD YE> 9 ,M>X'S DIAGRAM DO NOT NECESS>ILY REF] TO CAL5D> YE>S BUT MAY /& = ANY GIV5 P]IOD4 ,F9ALLY1 WE MAY *OOSE TO ASSUME ?AT !SE ALT]ATIONS1 BO? 9 ! COMPOSITION ( CAPITAL & 9 ! RATE ( SURPLUS VALUE1 TAKE PLACE EI!R 9 ! FIR/1 ?IRD1 FIF?1 SEV5? YE>1 ETC41 OR 9 ! SECOND1 SIX? & N9? YE>1 ETC4 ,! IMPORTANT ?+ IS ONLY ?AT !Y >E ALL[$ = SOME:]E & TAK5 9TO ACC\NT AS P]IODICAL PH5OM5A4 ,IF ! DIAGRAM IS AM5D$ ACCORD+LY1 ! RESULT ( ?IS ME?OD ( ACCUMULATION WILL BE AN 9CREAS+ ANNUAL SURPLUS 9 ! CONSUM] AT ! EXP5SE ( PRODUC] GOODS4 ,IT IS TRUE ?AT ,TUGAN ,B>ANOVSKI CONQU]S ALL DIFFICULTIES ON PAP]3 HE SIMPLY CON/RUCTS A DIAGRAM ) DIFF]5T PROPORTIONS :]E YE> BY YE> ! V>IABLE CAPITAL DECREASES BY #be P] C5T4 ,& S9CE ?IS >I?METICAL EX]CISE IS SUCCESSFUL 5\< ON PAP]1 ,TUGAN TRIUMPHANTLY CLAIMS TO HAVE 'PROV$' ?AT ACCUMULATION RUNS SMOO?LY LIKE CLOCKWORK1 EV5 IF ! ABSOLUTE VOLUME ( CONSUMPTION DECREASES4 ,EV5 HE MU/ ADMIT 9 ! 5D1 H[EV]1 ?AT HIS ASSUMPTION ( SU* AN ABSOLUTE DECREASE ( ! V>IABLE CAPITAL IS 9 /RIK+ CONTRA/ TO REALITY4 ,V>IABLE CAPITAL IS 9 PO9T ( FACT A GR[+ QUANTITY 9 ALL CAPITALI/ C\NTRIES2 ONLY 9 RELATION TO ! EV5 MORE RAPID GR[? ( CON/ANT CAPITAL CAN IT BE SAID TO DECREASE4 ,ON ! BASIS ( :AT IS ACTUALLY HAPP5+1 NAMELY A GREAT] YE>LY 9CREASE ( CON/ANT CAPITAL AS AGA9/ ?AT ( V>IABLE CAPITAL1 AS WELL AS A GR[+ RATE ( SURPLUS VALUE1 DISCREPANCIES MU/ >ISE BETWE5 ! MAT]IAL COMPOSITION ( ! SOCIAL PRODUCT & ! COMPOSITION ( CAPITAL 9 T]MS ( VALUE4 ,IF1 9/EAD ( ! UN*ANG+ PROPORTION ( #e TO #a BETWE5 CON/ANT & V>IABLE CAPITAL1 PROPOS$ BY ,M>X'S DIAGRAM1 WE ASSUME = 9/ANCE ?AT ?IS 9CREASE ( CAPITAL IS ACCOMPANI$ BY A PROGRESSIVE READJU/M5T ( ITS COMPOSITION1 ! PROPORTION BETWE5 CON/ANT & V>IABLE 9 ! SECOND YE> BE+ #f TO #a1 9 ! ?IRD YE> #g TO #a1 & 9 ! F\R? YE> #h TO #a - IF WE FUR!R ASSUME ?AT ! RATE ( SURPLUS VALUE ALSO 9CREASES PROGRESSIVELY 9 ACCORDANCE ) ! HI<] PRODUCTIVITY ( LABOR SO ?AT1 9 EA* CASE1 WE HAVE ! SAME AM\NTS AS ?OSE ( ! DIAGRAM1 AL?\<1 BECAUSE ( ! RELATIVELY DECREAS+ V>IABLE CAPITAL1 ! RATE ( SURPLUS VALUE DOES NOT REMA9 CON/ANT AT ! ORIG9AL #a P] C5T - & IF F9ALLY WE ASSUME ?AT ONE-HALF ( ! APPROPRIAT$ SURPLUS VALUE IS CAPITALIZ$ 9 EA* CASE 7EXCEPT+ ,DEP>TM5T ,I,I :]E CAPITALIZATION EXCE$S #e P] C5T1 #ahd \T ( #bhe BE+ CAPITALIZ$ DUR+ ! FIR/ YE>71 ! RESULT WILL BE AS FOLL[S3 

  

,IF ?IS W]E A TRUE PICTURE ( ! ACCUMULATIVE PROCESS1 ! MEANS ( PRODUCTION 7CON/ANT CAPITAL7 W\LD %[ A DEFICIT ( #af 9 ! SECOND YE>1 ( #de 9 ! ?IRD YE> & ( #hh 9 ! F\R? YE>2 SIMIL>LY1 ! MEANS ( SUBSI/5CE W\LD %[ A SURPLUS ( #af 9 ! SECOND YE>1 ( #de 9 ! ?IRD YE> & ( #hh 9 ! F\R? YE>4 

,?IS NEGATIVE BALANCE = ! MEANS ( PRODUCTION MAY BE ONLY IMAG9>Y 9 P>T4 ,! 9CREAS+ PRODUCTIVITY ( LABOR 5SURES ?AT ! MEANS ( PRODUCTION GR[ FA/] 9 BULK ?AN 9 VALUE1 9 O!R WORDS3 MEANS ( PRODUCTION BECOME *EAP]4 ,AS IT IS USE VALUE1 I4E4 ! MAT]IAL ELEM5TS ( CAPITAL1 :I* IS RELEVANT = TE*NICAL IMPROVEM5TS ( PRODUCTION1 WE MAY ASSUME ?AT ! QUANTITY ( MEANS ( PRODUCTION1 9 SPITE ( !IR L[] VALUE1 WILL SUFFICE = PROGRESSIVE ACCUMULATION UP TO A C]TA9 PO9T4 ,?IS PH5OM5ON AMONG O!RS ALSO *ECKS ! ACTUAL DECL9E ( ! RATE ( PR(IT & MODIFIES IT TO A M]E T5D5CY1 ?\< \R EXAMPLE %[S ?AT ! DECL9E ( ! PR(IT RATE W\LD NOT ONLY BE RET>D$ BUT RA!R COMPLETELY >RE/$4 ,ON ! O!R H&1 ! SAME FACT 9DICATES A MU* L>G] SURPLUS ( UNSALEABLE MEANS ( SUBSI/5CE ?AN IS SUGGE/$ BY ! AM\NT ( ?IS SURPLUS 9 T]MS ( VALUE4 ,9 ?AT CASE1 WE %\LD HAVE TO COMPEL ! CAPITALI/S ( ,DEP>TM5T ,I,I TO CONSUME ?IS SURPLUS !MSELVES1 :I* ,M>X MAKES !M DO ON O!R OCCASIONS2 9 :I* CASE1 & 9 SO F> AS ?OSE CAPITALI/S >E CONC]N$1 !RE W\LD AGA9 BE NO ACCUMULATION BUT RA!R SIMPLE REPRODUCTION4 ,ALT]NATIVELY1 WE %\LD HAVE TO PRON\NCE ?IS :OLE SURPLUS UNSALEABLE4 

,YET W\LD IT NOT BE V]Y EASY TO MAKE GOOD ?IS LOSS 9 MEANS ( PRODUCTION :I* RESULTS FROM \R EXAMPLE8 ,WE NE$ ONLY ASSUME ?AT ! CAPITALI/S ( ,DEP>TM5T ,I CAPITALIZE !IR SURPLUS VALUE TO A GREAT] EXT5T4 ,9DE$1 !RE IS NO VALID REASON TO SUPPOSE1 AS ,M>X DID1 ?AT ! CAPITALI/S 9 EA* CASE ADD ONLY HALF !IR SURPLUS VALUE TO !IR CAPITAL4 ,ADVANCES 9 LABOR PRODUCTIVITY MAY WELL LEAD TO PROGRESSIVELY 9CREAS+ CAPITALIZATION ( SURPLUS VALUE4 ,?IS ASSUMPTION IS ! MORE P]MISSIBLE 9 ?AT ! *EAP5+ ( CONSUM] GOODS = ! CAPITALI/ CLASS1 TOO1 IS ONE ( ! CONSEQU5CES ( TE*NOLOGICAL PROGRESS4 ,! RELATIVE DECREASE 9 ! VALUE ( CONSUMABLE 9COME 7AS COMP>$ ) ! CAPITALIZ$ P>T7 MAY !N P]MIT ( ! SAME OR EV5 A HI<] /&>D ( LIV+ = ?IS CLASS4 ,WE MI<T = 9/ANCE MAKE GOAD ! DEFICIT 9 PRODUC] GOODS BY TRANSF]R+ A CORRESPOND+ P>T ( SURPLUS VALUE ,I TO ! CON/ANT CAPITAL ( ?IS DEP>TM5T1 A P>T :I* W\LD O!RWISE BE CONSUM$1 S9CE ?IS SURPLUS VALUE1 LIKE ALL O!R PRODUCTS ( ! DEP>TM5T1 ORIG9ALLY TAKES ! =M ( PRODUC] GOODS2 #a#a#d_/#g W\LD !N BE TRANSF]R$ 9 ! SECOND YE>1 #cd 9 ! ?IRD YE> & #ff 9 ! F\R? YE>47#i7 ,! SOLUTION ( ONE DIFFICULTY1 H[EV]1 ONLY ADDS TO ANO!R4 ,IT GOES )\T SAY+ ?AT IF ! CAPITALI/S ( ,DEP>TM5T ,I RELATIVELY RE/RICT !IR CONSUMPTION = PURPOSES ( ACCUMULATION1 !RE WILL BE A PROPORTIONATELY GREAT] UNSALEABLE RESIDUE ( CONSUM] GOODS 9 ,DEP>TM5T ,I,I2 & ?US IT BECOMES MORE & MORE IMPOSSIBLE TO 5L>GE ! CON/ANT CAPITAL EV5 ON ITS PREVI\S TE*NOLOGICAL BASIS4 ,IF ! CAPITALI/S 9 ,DEP>TM5T ,I RELATIVELY RE/RICT !IR CONSUMPTION1 ! CAPITALI/S ( ,DEP>TM5T ,I,I MU/ RELATIVELY EXP& !IR P]SONAL CONSUMPTION 9 PROPORTION4 ,! ASSUMPTION ( ACCEL]AT$ ACCUMULATION 9 ,DEP>TM5T ,I W\LD !N HAVE TO BE SUPPLEM5T$ BY ?AT ( RET>D$ ACCUMULATION 9 ,DEP>TM5T ,I,I1 TE*NICAL PROGRESS 9 ONE DEP>TM5T BY REGRESSION 9 ! O!R4 

,!SE RESULTS >E NOT DUE TO M]E *ANCE4 ,! ADJU/M5TS WE HAVE TRI$ \T ON ,M>X'S DIAGRAM >E M]ELY MEANT TO ILLU/RATE ?AT TE*NICAL PROGRESS1 AS HE HIMSELF ADMITS1 MU/ BE ACCOMPANI$ BY A RELATIVE GR[? ( CON/ANT AS AGA9/ V>IABLE CAPITAL4 ,H5CE ! NECESSITY = A CONT9U\S REVISION ( ! RATIO 9 :I* CAPITALIZ$ SURPLUS VALUE %\LD BE ALLOTT$ TO C & V RESPECTIVELY4 ,9 ,M>X'S DIAGRAM1 H[EV]1 ! CAPITALI/S >E 9 NO POSITION TO MAKE !SE ALLOCATIONS AT WILL1 S9CE ! MAT]IAL =M ( !IR SURPLUS VALUE PR$ET]M9ES ! =MS ( CAPITALIZATION4 ,S9CE1 ACCORD+ TO ,M>X'S ASSUMPTION1 ALL EXPANSION ( PRODUCTION PROCE$S EXCLUSIVELY BY MEANS ( ITS [N1 CAPITALI/ICALLY PRODUC$ MEANS ( PRODUCTION & SUBSI/5CE1 - S9CE !RE >E H]E NO O!R PLACES & =MS ( PRODUCTION & EQUALLY NO O!R CONSUM]S ?AN ! TWO DEP>TM5TS ) !IR CAPITALI/S & WORK]S1 - & S9CE1 ON ! O!R H&1 ! SMOO? WORK+ ( ! ACCUMULATIVE PROCESS DEP5DS ON ?AT CIRCULATION %\LD :OLLY ABSORB ! AGGREGATE PRODUCT ( BO? DEP>TM5TS1 ! TE*NOLOGICAL %APE ( 5L>G$ REPRODUCTION IS 9 CONSEQU5CE /RICTLY PRESCRIB$ BY ! MAT]IAL =M ( ! SURPLUS PRODUCT4 ,9 O!R WORDS3 ACCORD+ TO ,M>X'S DIAGRAM1 ! TE*NICAL ORGANIZATION ( EXP&$ PRODUCTION CAN & MU/ BE SU* AS TO MAKE USE ( ! AGGREGATE SURPLUS VALUE PRODUC$ 9 ,DEP>TM5TS ,I & ,I,I4 ,9 ?IS CONNECTION WE MU/ BE> 9 M9D ALSO ?AT BO? DEP>TM5TS CAN OBTA9 !IR RESPECTIVE ELEM5TS ( PRODUCTION ONLY BY MEANS ( MUTUAL EX*ANGE4 ,?US ! ALLOCATION TO CON/ANT OR V>IABLE CAPITAL ( ! SURPLUS VALUE E>M>K$ = CAPITALIZATION1 AS WELL AS ! ALLOTM5T ( ! ADDITIONAL MEANS ( PRODUCTION & SUBSI/5CE 7= ! WORK]S7 TO ,DEP>TM5TS ,I & ,I,I IS GIV5 9 ADVANCE & DET]M9$ BY ! RELATIONS BETWE5 ! TWO DEP>TM5TS ( ! DIAGRAM - BO? 9 MAT]IAL & 9 T]MS ( VALUE4 ,!SE RELATIONS !MSELVES1 H[EV]1 REFLECT A QUITE DET]M9ATE TE*NICAL ORGANIZATION ( PRODUCTION4 ,?IS IMPLIES ?AT1 ON ! ASSUMPTIONS ( ,M>X'S DIAGRAM1 ! TE*NIQUES ( PRODUCTION GIV5 9 EA* CASE PR$ET]M9E ! TE*NIQUES ( ! SUBSEQU5T P]IODS ( 5L>G$ REPRODUCTION1 IF ACCUMULATION CONT9UES4 ,ASSUM+1 ?AT IS TO SAY1 9 ACCORDANCE ) ,M>X'S DIAGRAM1 ?AT ! EXPANSION ( CAPITALI/ PRODUCTION IS ALWAYS P]=M$ BY MEANS ( ! SURPLUS VALUE ORIG9ALLY PRODUC$ 9 =M ( CAPITAL1 & FUR!R - OR RA!R1 CONV]SELY - ?AT ACCUMULATION 9 ONE DEP>TM5T IS /RICTLY DEP5D5T ON ACCUMULATION 9 ! O!R1 !N NO *ANGE 9 ! TE*NICAL ORGANIZATION ( PRODUCTION CAN BE POSSIBLE 9 SO F> AS ! RELATION ( C TO V IS CONC]N$4 

,WE MAY PUT \R PO9T 9 YET ANO!R WAY3 IT IS CLE> ?AT A QUICK] GR[? ( CON/ANT AS COMP>$ ) V>IABLE CAPITAL1 I4E4 ! PROGRESSIVE METAMORPHOSIS ( ! ORGANIC COMPOSITION ( CAPITAL1 MU/ TAKE ! MAT]IAL =M ( FA/] EXPANSION ( PRODUCTION 9 ,DEP>TM5T ,I AS AGA9/ PRODUCTION 9 ,DEP>TM5T ,I,I4 ,YET ,M>X'S DIAGRAM1 :]E /RICT CON=MITY ( ! TWO DEP>TM5TS IS AXIOMATIC1 PRECLUDES ANY SU* FLUCTUATIONS 9 ! RATE ( ACCUMULATION 9 EI!R DEP>TM5T4 ,IT IS QUITE LEGITIMATE TO SUPPOSE ?AT UND] ! TE*NICAL CONDITIONS ( PROGRESSIVE ACCUMULATION1 SOCIETY W\LD 9VE/ EV] 9CREAS+ PORTIONS ( ! SURPLUS VALUE E>M>K$ = ACCUMULATION 9 ,DEP>TM5T ,I RA!R ?AN 9 ,DEP>TM5T ,I,I4 ,BO? DEP>TM5TS BE+ ONLY BRAN*ES ( ! SAME SOCIAL PRODUCTION - SUPPLEM5T>Y 5T]PRISES1 IF Y\ LIKE1 ( ! 'AGGREGATE CAPITALI/' - SU* A PROGRESSIVE TRANSF]1 = TE*NICAL REASONS1 FROM ONE DEP>TM5T TO ! O!R ( A P>T ( ! ACCUMULAT$ SURPLUS VALUE W\LD BE :OLLY FEASIBLE1 ESPECIALLY AS IT CORRESPONDS TO ! ACTUAL PRACTICE ( CAPITAL4 ,YET ?IS ASSUMPTION IS POSSIBLE ONLY SO LONG AS WE 5VISAGE ! SURPLUS VALUE E>M>K$ = CAPITALIZATION PURELY 9 T]MS ( VALUE4 ,! DIAGRAM1 H[EV]1 IMPLIES ?AT ?IS P>T ( ! SURPLUS VALUE APPE>S 9 A DEF9ITE MAT]IAL =M :I* PRESCRIBES ITS CAPITALIZATION4 ,?US ! SURPLUS VALUE ( ,DEP>TM5T ,I,I EXI/S AS MEANS ( SUBSI/5CE1 & S9CE IT IS AS SU* TO BE ONLY REALIZ$ BY ,DEP>TM5T ,I1 ?IS 9T5D$1 TRANSF] ( P>T ( ! CAPITALIZ$ SURPLUS VALUE FROM ,DEP>TM5T ,I,I TO ,DEP>TM5T ,I IS RUL$ \T1 FIR/ BECAUSE ! MAT]IAL =M ( ?IS SURPLUS VALUE IS OBVI\SLY USELESS TO ,DEP>TM5T ,I1 & SECONDLY BECAUSE ( ! RELATIONS ( EX*ANGE BETWE5 ! TWO DEP>TM5TS :I* W\LD 9 TURN NECESSITATE AN EQUIVAL5T TRANSF] ( ! PRODUCTS ( ,DEP>TM5T ,I 9TO ,DEP>TM5T ,I,I4 ,IT IS !RE=E D[NRI<T IMPOSSIBLE TO A*IEVE A FA/] EXPANSION ( ,DEP>TM5T ,I AS AGA9/ ,DEP>TM5T ,I,I )9 ! LIMITS ( ,M>X'S DIAGRAM4 

,H[EV] WE MAY REG>D ! TE*NOLOGICAL ALT]ATIONS ( ! MODE ( PRODUCTION 9 ! C\RSE ( ACCUMULATION1 !Y CANNOT BE ACCOMPLI%$ )\T UPSETT+ ! FUNDAM5TAL RELATIONS ( ,M>X'S DIAGRAM4 

,& FUR!R3 ACCORD+ TO ,M>X'S DIAGRAM1 ! CAPITALIZ$ SURPLUS VALUE IS 9 EA* CASE IMM$IATELY & COMPLETELY ABSORB$ BY ! PRODUCTIVE PROCESS ( ! FOLL[+ P]IOD1 =1 AP>T FROM ! PORTION E>M>K$ = CONSUMPTION1 IT HAS A NATURAL =M :I* ALL[S ( ONLY ONE P>TICUL> K9D ( EMPLOYM5T4 ,! DIAGRAM PRECLUDES ! CA%+ & HO>D+ ( SURPLUS VALUE 9 MONET>Y =M1 AS CAPITAL WAIT+ TO BE 9VE/$4 ,! FREE MONET>Y =MS ( PRIVATE CAPITAL1 9 ,M>X'S VIEW1 >E FIR/ ! MONEY DEPOSIT$ GRADUALLY AGA9/ ! WE> & TE> ( ! FIX$ CAPITAL1 = ITS EV5TUAL R5EWAL2 & SECONDLY ?OSE AM\NTS ( MONEY :I* REPRES5T REALIZ$ SURPLUS VALUE BUT >E /ILL TOO SMALL = 9VE/M5T4 ,FROM ! PO9T ( VIEW ( ! AGGREGATE CAPITAL1 BO? !SE S\RCES ( FREE MONEY CAPITAL >E NEGLIGIBLE4 ,= IF WE ASSUME ?AT EV5 A PORTION ( ! SOCIAL SURPLUS VALUE IS REALIZ$ 9 MONET>Y =M = PURPOSES ( FUTURE 9VE/M5T1 !N AT ONCE ! QUE/ION >ISES3 :O HAS B\<T ! MAT]IAL ITEMS ( ?IS SURPLUS VALUE1 & :O HAS PROVID$ ! MONEY8 ,IF ! ANSW] IS3 O!R CAPITALI/S1 ( C\RSE1 - !N1 SEE+ ?AT ! CAPITALI/ CLASS IS REPRES5T$ 9 ! DIAGRAM BY ! TWO DEP>TM5TS1 ?IS PORTION ( ! SURPLUS VALUE MU/ ALSO BE REG>D$ AS 9VE/$ DE FACTO1 AS EMPLOY$ 9 ! PRODUCTIVE PROCESS4 ,& SO WE >E BACK AT IMM$IATE & COMPLETE 9VE/M5T ( ! SURPLUS VALUE4 

,OR DOES ! FREEZ+ ( ONE P>T ( ! SURPLUS VALUE 9 MONET>Y =M 9 ! H&S ( C]TA9 CAPITALI/S MEAN ?AT O!R CAPITALI/S WILL BE LEFT ) A CORRESPOND+ P>T ( ?AT SURPLUS PRODUCT 9 ITS MAT]IAL =M8 DOES ! HO>D+ ( REALIZ$ SURPLUS VALUE BY SOME IMPLY ?AT O!RS >E NO LONG] ABLE TO REALIZE !IR SURPLUS VALUE1 S9CE ! CAPITALI/S >E ! ONLY BUY]S ( SURPLUS VALUE8 ,?IS W\LD MEAN1 H[EV]1 ?AT ! SMOO? C\RSE ( REPRODUCTION & SIMIL>LY ( ACCUMULATION AS DESCRIB$ 9 ! DIAGRAM W\LD BE 9T]RUPT$4 ,! RESULT W\LD BE A CRISIS1 DUE NOT TO OV]-PRODUCTION BUT TO A M]E 9T5TION TO ACCUMULATE1 ! K9D ( CRISIS 5VISAG$ BY ,SISMONDI4 

,9 ONE PASSAGE ( HIS ,!ORIES17#a7 ,M>X EXPLA9S 9 SO MANY WORDS ?AT HE 'IS NOT AT ALL CONC]N$ 9 ?IS CONNECTION ) AN ACCUMULATION ( CAPITAL GREAT] ?AN CAN BE US$ 9 ! PRODUCTIVE PROCESS & MI<T LIE IDLE 9 ! BANKS 9 MONET>Y =M1 ) ! CONSEQU5CE ( L5D+ ABROAD'4 ,M>X REF]S !SE PH5OM5A TO ! SECTION ON COMPETITION4 ,YET IT IS IMPORTANT TO E/ABLI% ?AT HIS DIAGRAM V]ITABLY PRECLUDES ! =MATION ( SU* ADDITIONAL CAPITAL4 ,COMPETITION1 H[EV] WIDE WE MAY MAKE ! CONCEPT1 OBVI\SLY CANNOT CREATE VALUES1 NOR CAN IT CREATE CAPITALS :I* >E NOT !MSELVES ! RESULT ( ! REPRODUCTIVE PROCESS4 

,! DIAGRAM ?US PRECLUDES ! EXPANSION ( PRODUCTION BY LEAPS & B\NDS4 ,IT ONLY ALL[S ( A GRADUAL EXPANSION :I* KEEPS /RICTLY 9 /EP ) ! =MATION ( ! SURPLUS VALUE & IS BAS$ UPON ! ID5TITY BETWE5 REALIZATION & CAPITALIZATION ( ! SURPLUS VALUE4 

,= ! SAME REASON1 ! DIAGRAM PRESUMES AN ACCUMULATION :I* AFFECTS BO? DEP>TM5TS EQUALLY & !RE=E ALL BRAN*ES ( CAPITALI/ PRODUCTION4 ,IT PRECLUDES EXPANSION ( ! DEM& BY LEAPS & B\NDS JU/ AS MU* AS IT PREV5TS A ONE SID$ OR PRECOCI\S DEVELOPM5T ( 9DIVIDUAL BRAN*ES ( CAPITALI/ PRODUCTION4 

,?US ! DIAGRAM ASSUMES A MOVEM5T ( ! AGGREGATE CAPITAL :I* FLIES 9 ! FACE ( ! ACTUAL C\RSE ( CAPITALI/ DEVELOPM5T4 ,AT FIR/ SI<T1 TWO FACTS >E TYPICAL = ! HI/ORY ( ! CAPITALI/ MODE ( PRODUCTION3 ON ! ONE H& ! P]IODICAL EXPANSION ( ! :OLE FIELD ( PRODUCTION BY LEAPS & B\NDS1 & ON ! O!R AN EXTREMELY UNEQUAL DEVELOPM5T ( ! DIFF]5T BRAN*ES ( PRODUCTION4 ,! HI/ORY ( ! ,5GLI% COTTON 9DU/RY FROM ! FIR/ QU>T] ( ! EI<TE5? TO ! SEV5TIES ( ! N9ETE5? C5TURY1 ! MO/ *>ACT]I/IC *APT] 9 ! HI/ORY ( ! CAPITALI/ MODE ( PRODUCTION APPE>S QUITE 9EXPLICABLE FROM ! PO9T ( VIEW ( ,M>X'S DIAGRAM4 

,F9ALLY1 ! DIAGRAM CONTRADICTS ! CONCEPTION ( ! CAPITALI/ TOTAL PROCESS & ITS C\RSE AS LAID D[N BY ,M>X 9 ,CAPITAL1 VOLUME III4 ,?IS CONCEPTION IS BAS$ ON ! 9H]5T CONTRADICTION BETWE5 ! UNLIMIT$ EXPANSIVE CAPACITY ( ! PRODUCTIVE =CES & ! LIMIT$ EXPANSIVE CAPACITY ( SOCIAL CONSUMPTION UND] CONDITIONS ( CAPITALI/ DI/RIBUTION4 ,LET US SEE H[ ,M>X DESCRIBES ?IS CONTRADICTION 9 DETAIL 9 *APT] #ae ON ,UNRAVEL+ ! ,9T]NAL ,CONTRADICTIONS ( ! ,LAW 7( ! DECL9+ PR(IT RATE73 

',! CREATION ( SURPLUS-VALUE1 ASSUM+ ! NECESS>Y MEANS ( PRODUCTION1 OR SUFFICI5T ACCUMULATION ( CAPITAL1 TO BE EXI/+1 F9DS NO O!R LIMIT BUT ! LABOR+ POPULATION1 :5 ! RATE ( SURPLUS-VALUE1 ?AT IS1 ! 9T5SITY ( EXPLOITATION1 IS GIV52 & NO O!R LIMIT BUT ! 9T5SITY ( EXPLOITATION1 :5 ! LABOR+ POPULATION IS GIV54 ,& ! CAPITALI/ PROCESS ( PRODUCTION CONSI/S ESS5TIALLY ( ! PRODUCTION ( SURPLUS-VALUE1 MAT]IALIZ$ 9 ! SURPLUS-PRODUCT1 :I* IS ?AT ALIQUOT PORTION ( ! PRODUC$ COMMODITIES1 9 :I* UNPAID LABOR IS MAT]IALIZ$4 ,IT MU/ NEV] BE =GOTT51 ?AT ! PRODUCTION ( ?IS SURPLUS-VALUE - & ! RE-CONV]SION ( A PORTION ( IT 9TO CAPITAL1 OR ACCUMULATION1 =MS AN 9DISP5SABLE P>T ( ?IS PRODUCTION ( SURPLUS-VALUE - IS ! IMM$IATE PURPOSE & ! COMPELL+ MOTIVE ( CAPITALI/ PRODUCTION4 ,IT WILL NOT DO TO REPRES5T CAPITALI/ PRODUCTION AS SOME?+ :I* IT IS NOT1 ?AT IS TO SAY1 AS A PRODUCTION HAV+ = ITS IMM$IATE PURPOSE ! CONSUMPTION ( GOODS1 OR ! PRODUCTION ( MEANS ( 5JOYM5T = ! CAPITALI/S4 7,&1 ( C\RSE1 EV5 LESS = ! WORK]4 - ,R4,L47 ,?IS W\LD BE OV]LOOK+ ! SPECIFIC *>ACT] ( CAPITALI/ PRODUCTION1 :I* REVEALS ITSELF 9 ITS 9N]MO/ ESS5CE4 ,! CREATION ( ?IS SURPLUS-VALUE IS ! OBJECT ( ! DIRECT PROCESS ( PRODUCTION1 & ?IS PROCESS HAS NO O!R LIMITS ?AN ?OSE M5TION$ ABOVE4 ,AS SOON AS ! AVAILABLE QUANTITY ( SURPLUS-VALUE HAS BE5 MAT]IALIZ$ 9 COMMODITIES1 SURPLUS VALUE HAS BE5 PRODUC$4 ,BUT ?IS PRODUCTION ( SURPLUS-VALUE IS BUT ! FIR/ ACT ( ! CAPITALI/ PROCESS ( PRODUCTION1 IT M]ELY T]M9ATES ! ACT ( DIRECT PRODUCTION4 ,CAPITAL HAS ABSORB$ SO MU* UNPAID LABOR4 ,) ! DEVELOPM5T ( ! PROCESS1 :I* EXPRESSES ITSELF ?R\< A FALL+ T5D5CY ( ! RATE ( PR(IT1 ! MASS ( SURPLUS-VALUE ?US PRODUC$ IS SWELL$ TO IMM5SE DIM5SIONS4 ,N[ COMES ! SECOND ACT ( ! PROCESS4 ,! 5TIRE MASS ( COMMODITIES1 ! TOTAL PRODUCT1 :I* CONTA9S A PORTION :I* IS TO REPRODUCE ! CON/ANT & V>IABLE CAPITAL AS WELL AS A PORTION REPRES5T+ SURPLUS-VALUE1 MU/ BE SOLD4 ,IF ?IS IS NOT DONE1 OR ONLY P>TLY ACCOMPLI%$1 OR ONLY AT PRICES :I* >E BEL[ ! PRICES ( PRODUCTION1 ! LABOR] HAS BE5 NONE ! LESS EXPLOIT$1 BUT HIS EXPLOITATION DOES NOT REALIZE AS MU* = ! CAPITALI/4 ,IT MAY YIELD NO SURPLUS-VALUE AT ALL = HIM1 OR ONLY REALIZE A PORTION ( ! PRODUC$ SURPLUS-VALUE1 OR IT MAY EV5 MEAN A P>TIAL OR COMPLETE LOSS ( HIS CAPITAL4 ,! CONDITIONS ( DIRECT EXPLOITATION & ?OSE ( ! REALIZATION ( SURPLUS-VALUE >E NOT ID5TICAL4 ,!Y >E SEP>AT$ LOGICALLY AS WELL AS BY TIME & SPACE4 ,! FIR/ >E ONLY LIMIT$ BY ! PRODUCTIVE P[] ( SOCIETY1 ! LA/ BY ! PROPORTIONAL RELATIONS ( ! V>I\S L9ES ( PRODUCTION & BY ! CONSUM+ P[] ( SOCIETY4 ,?IS LA/-NAM$ P[] IS NOT DET]M9$ EI!R BY ! ABSOLUTE PRODUCTIVE P[] OR BY ! ABSOLUTE CONSUM+ P[]1 BUT BY ! CONSUM+ P[] BAS$ ON ANTAGONI/IC CONDITIONS ( DI/RIBUTION1 :I* R$UCES ! CONSUMPTION ( ! GREAT MASS ( ! POPULATION TO A V>IABLE M9IMUM )9 MORE OR LESS N>R[ LIMITS4 ,! CONSUM+ P[] IS FUR!RMORE RE/RICT$ BY ! T5D5CY TO ACCUMULATE1 ! GRE$ = AN EXPANSION ( CAPITAL & A PRODUCTION ( SURPLUS VALUE ON AN 5L>G$ SCALE4 ,?IS IS A LAW ( CAPITALI/ PRODUCTION IMPOS$ BY 9CESSANT REVOLUTIONS 9 ! ME?ODS ( PRODUCTION !MSELVES1 ! RESULT+ DEPRECIATION ( EXI/+ CAPITAL1 ! G5]AL COMPETITIVE /RUGGLE & ! NECESSITY ( IMPROV+ ! PRODUCT & EXP&+ ! SCALE ( PRODUCTION1 = ! SAKE ( SELF-PRES]VATION & ON P5ALTY ( FAILURE4 ,! M>KET MU/1 !RE=E1 BE CONT9UALLY EXT5D$1 SO ?AT ITS 9T]RELATIONS & ! CONDITIONS REGULAT+ !M ASSUME MORE & MORE ! =M ( A NATURAL LAW 9DEP5D5T ( ! PRODUC]S & BECOME EV] MORE UNCONTROLLABLE4 ,?IS ET]NAL CONTRADICTION SEEKS TO BALANCE ITSELF BY AN EXPANSION ( ! \TLY+ FIELDS ( PRODUCTION4 ,BUT TO ! EXT5T ?AT ! PRODUCTIVE P[] DEVELOPS1 IT F9DS ITSELF AT V>IANCE ) ! N>R[ BASIS ON :I* ! CONDITIONS ( CONSUMPTION RE/4 ,ON ?IS SELF-CONTRADICTORY BASIS IT IS NO CONTRADICTION AT ALL ?AT !RE %\LD BE AN EXCESS ( CAPITAL SIMULTANE\SLY ) AN EXCESS ( POPULATION4 ,= :ILE A COMB9ATION ( !SE TWO W\LD 9DE$ 9CREASE ! MASS ( ! PRODUC$ SURPLUS-VALUE1 IT W\LD AT ! SAME TIME 9T5SIFY ! CONTRADICTION BETWE5 ! CONDITIONS UND] :I* ?IS SURPLUS-VALUE IS PRODUC$ & ?OSE UND] :I* IT IS REALIZ$4'7#a#a7 

,IF WE COMP>E ?IS DESCRIPTION ) ! DIAGRAM ( 5L>G$ REPRODUCTION1 ! TWO >E BY NO MEANS 9 CON=MITY4 ,ACCORD+ TO ! DIAGRAM1 !RE IS NO 9H]5T CONTRADICTION BETWE5 ! PRODUCTION ( ! SURPLUS VALUE & ITS REALIZATION1 RA!R1 ! TWO >E ID5TICAL4 ,! SURPLUS VALUE H]E FROM ! V]Y BEG9N+ COMES 9TO BE+ 9 A NATURAL =M EXCLUSIVELY DESIGN$ = ! REQUIREM5TS ( ACCUMULATION4 ,9 FACT IT LEAVES ! PLACE ( PRODUCTION 9 ! V]Y =M ( ADDITIONAL CAPITAL1 ?AT IS TO SAY IT IS CAPABLE ( REALIZATION 9 ! CAPITALI/ PROCESS ( ACCUMULATION4 ,! CAPITALI/S1 AS A CLASS1 SEE TO IT 9 ADVANCE ?AT ! SURPLUS VALUE !Y APPROPRIATE IS PRODUC$ 5TIRELY 9 ?AT MAT]IAL =M :I* WILL P]MIT & 5SURE ITS EMPLOYM5T = PURPOSES ( FUR!R ACCUMULATION4 ,REALIZATION & ACCUMULATION ( ! SURPLUS VALUE H]E >E BO? ASPECTS ( ! SAME PROCESS1 !Y >E LOGICALLY ID5TICAL4 ,!RE=E ACCORD+ TO ! PRES5TATION ( ! REPRODUCTIVE PROCESS 9 ! DIAGRAM1 SOCIETY'S CAPACITY TO CONSUME DOES NOT PUT A LIMIT TO PRODUCTION4 ,H]E PRODUCTION AUTOMATICALLY EXP&S YE> BY YE>1 AL?\< ! CAPACITY ( SOCIETY = CONSUMPTION HAS NOT GONE BEYOND ITS 'ANTAGONI/IC CONDITIONS ( DI/RIBUTION'4 ,?IS AUTOMATIC CONT9UATION ( EXPANSION1 ( ACCUMULATION1 TRULY IS ! 'LAW ( CAPITALI/ PRODUCTION 444 ON P5ALTY ( FAILURE'4 ,YET ACCORD+ TO ! ANALYSIS 9 VOLUME III1 '! M>KET MU/1 !RE=E1 BE CONT9UALLY EXT5D$'1 '! M>KET' OBVI\SLY TRANSC5D+ ! CONSUMPTION ( CAPITALI/S & WORK]S4 ,& IF ,TUGAN ,B>ANOVSKI 9T]PRETS ! FOLL[+ PASSAGE '?IS ET]NAL CONTRADICTION SEEKS TO BALANCE ITSELF BY AN EXPANSION ( ! \TLY+ FIELDS ( PRODUCTION' AS IF ,M>X HAD MEANT PRODUCTION ITSELF BY '\TLY+ FIELDS ( PRODUCTION'1 HE VIOLATES NOT ONLY ! SPIRIT ( ! LANGUAGE BUT ALSO ,M>X'S CLE> TRA9 ( ?\<T4 ,! '\TLY+ FIELDS ( PRODUCTION' >E CLE>LY & UNEQUIVOCALLY NOT PRODUCTION ITSELF BUT CONSUMPTION :I* 'MU/ BE CONT9UALLY EXT5D$'4 ,! FOLL[+ PASSAGE 9 ,!ORI5 UB] D5 ,MEHRW]T1 AMONG O!RS1 SUFFICI5TLY %[S ?AT ,M>X HAD ?IS 9 M9D & NO?+ ELSE3 

',RIC>DO !RE=E CONSI/5TLY D5IES ! NECESSITY = AN EXPANSION ( ! M>KET TO ACCOMPANY ! EXPANSION ( PRODUCTION & ! GR[? ( CAPITAL4 ,! 5TIRE CAPITAL EXI/+ )9 A C\NTRY CAN ALSO BE PR(ITABLY US$ 9 ?AT C\NTRY4 ,HE !RE=E >GUES AGA9/ ,ADAM ,SMI? :O HAD SET UP HIS 7,RIC>DO'S7 OP9ION ON ! ONE H& BUT ALSO CONTRADICT$ IT ) HIS USUAL SURE 9/9CT4'7#a#b7 

,9 YET ANO!R PASSAGE1 ,M>X CLE>LY %[S ?AT ,TUGAN ,B>ANOVSKI'S NOTION ( PRODUCTION = PRODUCTION'S SAKE IS :OLLY ALI5 TO HIM3 

',BESIDES1 WE HAVE SE5 9 VOLUME II P>T III ?AT A CONT9U\S CIRCULATION TAKES PLACE BETWE5 CON/ANT CAPITAL & CON/ANT CAPITAL 7EV5 )\T CONSID]+ ANY ACCEL]AT$ ACCUMULATION71 :I* IS 9 SO F> 9DEP5D5T ( 9DIVIDUAL CONSUMPTION1 AS IT NEV] 5T]S 9TO SU* CONSUMPTION1 BUT :I* IS NEV]!LESS DEF9ITELY LIMIT$ BY IT BECAUSE ! PRODUCTION ( CON/ANT CAPITAL NEV] TAKES PLACE = ITS [N SAKE1 BUT SOLELY BECAUSE MORE ( ?IS CAPITAL IS NE$$ 9 ?OSE SPH]ES ( PRODUCTION :OSE PRODUCTS PASS 9TO 9DIVIDUAL CONSUMPTION4'7#a#c7 

,ADMITT$LY1 9 ! DIAGRAM 9 VOLUME II1 ,TUGAN ,B>ANOVSKI'S SOLE SUPPORT1 M>KET & PRODUCTION CO9CIDE - !Y >E ONE & ! SAME4 ,EXPANSION ( ! M>KET H]E MEANS EXT5D$ PRODUCTION1 S9CE PRODUCTION IS SAID TO BE ITS [N EXCLUSIVE M>KET - ! CONSUMPTION ( ! WORK]S BE+ AN ELEM5T ( PRODUCTION1 I4E4 ! REPRODUCTION ( V>IABLE CAPITAL4 ,!RE=E ! LIMIT = BO? ! EXPANSION ( PRODUCTION & ! EXT5SION ( ! M>KET IS ONE & ! SAME3 IT IS GIV5 BY ! VOLUME ( ! SOCIAL CAPITAL1 OR ! /AGE ( ACCUMULATION ALREADY ATTA9$4 ,! GREAT] ! QUANTITY ( SURPLUS VALUE ?AT HAS BE5 EXTRACT$ 9 ! NATURAL =M ( CAPITAL1 ! MORE CAN BE ACCUMULAT$2 & ! GREAT] ! VOLUME ( ACCUMULATION1 ! MORE SURPLUS VALUE CAN BE 9VE/$ 9 ITS MAT]IAL =M ( CAPITAL1 I4E4 ! MORE CAN BE REALIZ$4 ,?US ! DIAGRAM DOES NOT ADMIT ! CONTRADICTION \TL9$ 9 ! ANALYSIS ( VOLUME III4 ,9 ! PROCESS DESCRIB$ BY ! DIAGRAM !RE IS NO NE$ = A CONT9UAL EXT5SION ( ! M>KET BEYOND ! CONSUMPTION ( CAPITALI/S & WORK]S1 NOR IS ! LIMIT$ SOCIAL CAPACITY = CONSUMPTION AN OB/ACLE TO ! SMOO? C\RSE ( PRODUCTION & ITS UNLIMIT$ CAPACITY = EXPANSION4 ,! DIAGRAM DOES 9DE$ P]MIT ( CRISES BUT ONLY BECAUSE ( A LACK ( PROPORTION )9 PRODUCTION1 BECAUSE ( A DEFECTIVE SOCIAL CONTROL OV] ! PRODUCTIVE PROCESS4 ,IT PRECLUDES1 H[EV]1 ! DEEP & FUNDAM5TAL ANTAGONISM BETWE5 ! CAPACITY TO CONSUME & ! CAPACITY TO PRODUCE 9 A CAPITALI/ SOCIETY1 A CONFLICT RESULT+ FROM ! V]Y ACCUMULATION ( CAPITAL :I* P]IODICALLY BUR/S \T 9 CRISES & SPURS CAPITAL ON TO A CONT9UAL EXT5SION ( ! M>KET4 

,FOOTNOTES 

7#a7,CAPITAL1 VOL4I1 PP4#e#i#c-#d4 

7#b7,IBID41 P4#e#i#d1 NOTE #a4 

7#c7,OP4 CIT41 VOL4II1 P4#c#h#d4 

7#d7,IBID41 PP4#d-#a4 

7#e7,IBID41 P4#d#h#h4 

7#f7,OP4 CIT41 VOL4III1 P4#e#f#h4 

7#g7,!ORI5 4441 VOL4II1 P>T #b1 ,! ,ACCUMULATION ( ,CAPITAL & ,CRISES1 P4#b#f#c4 

7#h7 ',IT IS NEV] ! ORIG9AL ?9K]S :O DRAW ! ABSURD CONCLUSIONS4 ,!Y LEAVE ?AT TO ! ,SAYS & ,MAC,CULLO*S' 7,CAPITAL1 VOL4II1 P4#d#e#a74 - ,& - WE MI<T ADD - TO ! ,TUGAN ,B>ANOVSKIS4 

7#i7 ,! FIGURES RESULT FROM ! DIFF]5CE BETWE5 ! AM\NTS ( CON/ANT CAPITAL 9 ,DEP>TM5T ,I UND] CONDITIONS ( TE*NICAL PROGRESS1 & UND] ,M>X'S /ABLE CONDITIONS4 

7#a7,!ORI5 UB] D5 ,MEHRW]T1 VOL4II1 P>T #b1 P4#b#e#b4 

7#a#a7,CAPITAL1 VOL4III1 PP4#b#h#eFF4 

7#a#b7,!ORI5 4441 VOL4II1 P>T #b1 P4#c#e4 

7#a#c7,CAPITAL1 VOL4III1 P4#c#i#e4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #f1 #bba 3 ,SECTION #c1 ,*APT] #be -- ,ADD$4 

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