From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Sun Mar 11 2007 - 15:24:36 EDT
--- Jerry Levy <Gerald_A_Levy@MSN.COM> wrote: > Hi Ajit: > > Proposition #2 stated: > > > > In a previous post I said that the subject was > capitalism and > > that there are two *classes* in the abstract > model of that > > subject that I will be presenting. Yet, the > concept of class > > presupposes certain ideas which it is now time to > make explicit: > > > > Define the *total product* as the total amount of > goods and > > services produced in an economy in a certain > period of time. > > > > Define the *necessary product* as that portion of > the total > > product which is needed to maintain the inputs in > the labor > > process -- means of production and the direct > producers > > -- at their current level or in their current > condition for the > > next round of production. Thus, the necessary > product > > equals the consumption of the producers at their > customary > > standard of living plus the depreciation of means > of production > > plus the replacement of other [non-labor] > materials used up. > > > > The *surplus product* is what remains out of the > total product > > after the necessary product has been deleted. In > other words, > > > > The total product = 1 + 2 +3 > > > > where 1 = replacement of means of production used; > > > > 2 = necessary consumption > > > > 3 = surplus product > > > > Thus, 1 + 2 = necessary product; and > > 2 + 3 = net product > > > > 1 + 2 + 3 are all a consequence of a production > process and hence > > requires the expenditure of *labor time* by the > direct producers. > > This labor time is expended by producers using > means of production > > and hence involves both direct and indirect labor > time. > > > > *Note that in the above there was no mention of > value, commodities, > > wage-labor, capital, capitalists, or markets. > Hence, other modes of > > production could be thought of in terms of the > above concepts.* > > > > Consider two other such modes of production: > slavery and feudalism. > > > > In a simple slave society in which there are only > two classes -- slaves > > (the direct producers) and slaveowners -- the > total, net, and surplus > > products are created by slaves who utilize means > of production which > > are themselves produced by slaves who utilized > means of production. > > > > Hence, it is crystal clear that in such a slave > society the wealth of the > > slaveowners is created by the labor of slaves. > > > > In an abstract feudal society where there are two > classes -- serfs (the > > direct producers) and lords -- the total, net, and > surplus products > > are created entirely by the serfs (the direct > producers). Like > > slaveowners, the lords live off of the surplus > product created by the > > direct producers. I.e. the surplus product is > expropriated by the lords. > > > > It is just as clear here also that the wealth of > the feudal lords > > (recalling the assumption of a closed economy and > hence an inability to > > expropriate wealth from other societies) was > created by the labor of > > serfs. > > > In our model of capitalism, since there are only > two classes -- the working > class (the direct producers, which sells labor > power to capitalists in > exchange for a wage) and the capitalist class (which > owns and controls the > entire means of production, directs the labor > process, and has legal title > to the commodities produced by wage-labor) it > follows that: > > > o the commodities which compose 1 + 2 + 3 are all > a consequence of a > capitalist production process which requires the > expenditure of labor > time by wage-workers. > > > o wage-workers use the money (gold) that they > receive from capitalists for > the sale of the commodity labor power to > purchase the commodities > which they need to sustain themselves at their > customary standard of > living. > > > o After the total commodity product has been sold > and wages have > been deducted (2) and there has also been a > deduction of the amount > of money required for the replacement of the > means of production > used up (1), then any money left over is the > *monetary equivalent of > the surplus product* (3). > > > It is crystal clear, therefore, that just as the > wealth of the feudal lords > was created by the labor of serfs and the wealth of > the slaveowners was > created by the labor of slaves so too it should be > clear that the wealth of > capitalists is created by the labor of wage-workers. > However, what needs > to be explained more is how this process occurs. __________________________ How is it crystal clear that "the wealth of capitalists is created by the labor of wage-workers"? First of all, you haven't even defined what you mean by *wealth of the capitalists*. All we have here is that you have the *money value of surplus product* (since implicitly you already know the prices) and the knowledge that all the things were produced by using a lot of machines and things and labor. That's all. __________________________ > > The question being posed therefore is NOT what is > the source of > delta M in the formula > > M - C - M' > > (where M' equals M plus delta M) > > > but rather HOW is the surplus product produced > under capitalism? ____________________ But you have already explained that the total product is produced by the use of machines, raw materials and labor. You assume that prices of the goods produced are known, so you multiply the gross outputs of all the goods produced with their prices and arrive at the *money measure* of the gross output. From which you subtract the *money measure* of raw materials and depreciation of machines plus the money value of commodities purchased by the workers out of their given money wages. What is left is the *surplus product* (so the surplus product was taken for granted in conceiveing the total output) and if you multiply them with their known prices and add them up, you get *money measure* of the surplus product. So what is the meaning of your question? Your turn. Cheers, ajit sinha ____________________________________________________________________________________ Be a PS3 game guru. Get your game face on with the latest PS3 news and previews at Yahoo! Games. http://videogames.yahoo.com/platform?platform=120121
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