From: Nicola Taylor (nmtayl@YAHOO.COM.AU)
Date: Mon Nov 27 2006 - 21:37:56 EST
--------------------------------- Goecmen wrote: "The aim of capitalism is to produce as many wage labourers as possible and put them on employment to exploit." Martin replied: "The aim of the capitalist entrepreneur, I believe, is accumulation of capital. Through this tendency, more areas of human society has historically been subsumed in a wagelabour relation over time. Ricardo was one who made the accumulation of capital modus very explicit in his Principles. I don't see that the ratio of wage labourers-population is really as important though". SHORT RESPONSE: I agree with Martin that the individual entrepreneur is concerned only with capital accumulation - or from his/her perspective, making money returns that exceed costs. I also agree with Martin that the capitalist's concern is rational in that 'money profit' is necessary for the successful reproduction of the firm in a capitalist system. Now, to see how capitalist rationality fosters a reserve army of the unemployed one could consider, for example, the Nike Corporation. Desperate workers in Indonesia consitute a huge reserve army of the unemployed, from whom Nike can pick and choose wage labourers. In Indonesia, those 'lucky' enough to get a job are willing to work very long hours in appalling conditions for very low wages. Nike workers, however, are not the buyers of the product, which is primarily sold in high-wage countries (where employment is also relatively higher). Further, in high-wage countries the Nike corporation uses advertising techniques to increase demand (hence prices) for their products. These efforts to keep wages low and prices high have a further effect in that Nike shares may be seen by speculators as a worthwhile punt. The result is that Nike successfully reproduces (and partially finances) itself. For the individual capitalist/corporation, then, wage labour is merely a means to an overriding end (capital accumulation). If we accept this end as rational *in so far* as it is necessary for capitalist reproduction, then the incomplete subsumption of labour under a wage system is also rational *to the extent* that it assists firms to increase monetary returns and reproduce themselves. Nicky Send instant messages to your online friends http://au.messenger.yahoo.com
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