Fall In the Value Of The Variable Capital (7)
The
value of the variable capital might also fall relatively as a result
of the working day being increased either extensively or intensively.
Absolute
surplus value, as was seen in Capital I, can be achieved by
either extending the working day, or making it more intensive. If
five hours are required to produce the worker's means of subsistence,
then in a ten hour day, they will produce five hours of surplus value, whereas in a twelve hour day they will produce seven hours of
surplus value. But, if the intensity of labour can be increased, for
example by improving techniques that reduce the amount of time a
worker has to spend unproductively, moving from task to task, then
the same amount of labour can be undertaken in a smaller amount of
time. The same thing applies if a machine is speeded up, so that the
worker has to work faster, or, for example, if a postman is given less
time to complete their round, so they have to walk faster. On this
basis, twelve hours of labour may be compressed into just ten hours.
It counts as twelve hours unless this new intensity becomes normal.
This
increase in intensity of labour is not the same as a rise in
productivity, arising from the introduction of some new machine,
though the two often go together. A new machine may require the
worker to actually work less intensively or exert less effort than
previously, whilst raising their productivity, precisely because the
machine itself takes over some of the manual functions that the
worker had to perform. On the other hand, a new machine with 36
spindles, that replaces four machines with nine spindles, although it
still requires only one worker to mind one machine, requires that
worker to mind 36 spindles whereas before they only minded nine.
Some
means of extracting additional absolute surplus value imply
increasing the constant capital relative to the variable capital, and
thereby creating a tendency for the rate of profit to fall. If a
worker has to work faster, they process a greater quantity of
material and so the value of constant capital rises relative to the
variable capital. However, by the same token, they produce more
surplus value, and the rise in the rate of surplus value more than
counteracts the tendency for the rate of profit to fall induced by
the higher organic composition of capital.
Suppose:
c
1000 + v 1000 + s 1000. s' = 100%. r' = 50%.
The
working day rises from 8 hours to 16 hours, so the worker processes
twice as much material, and creates twice as much new value.
c
2000 + v 1000 + s 3000. s' = 300%, r' = 100%.
So,
despite the fact that c doubles, relative to v, the rate of profit
doubles as s' trebles. The decisive relation is not c/v in
determining what happens to the rate of profit, but c to the new
value created by labour, i.e. v+s. In other words, the determining
relation is c/v+s. So, the organic composition could rise, but the
rate of profit can also rise if the new value created by labour rises
more. But, even if the new value created by labour only rises by the
same proportion as c, the rate of profit will rise if s rises
relative to v. Constant capital may rise in proportion to v, if v
falls due to a wage cut, or if the value of labour-power falls, yet
the quantity of new value produced by labour remains the same, or may
even rise. Alternatively, v may remain constant, but fall relative
to c, because, as in this case, the working day is extended or made
more intensive. But, c/v+s would remain constant, whilst s/c+v
rises.
Suppose
the initial position is different, so that the rate of surplus value
is lower or higher.
c
1000 + v 1800 + s 200. s' = 11.11%, r' = 7.14%
c
2000 + v 1800 + s 2200. s' = 122.22%, r' = 57.89%
So,
the rate of profit rises by 710.78%
Whereas,
c
1000 + v 200 + s 1800. s' = 900%, r' = 150%
c
2000 + v 200 + s 3800. s' = 1900%, r' = 172.73
So,
the rate of profit rises by 15.15%. The rate of profit rises more
than 40 times as much, therefore, in conditions where the rate of
surplus value is low, compared to where the rate of surplus value was
already high.
Suppose,
there are different organic compositions of capital.
c
100 + v 1000 + s 1000. s' = 100%, r' = 90.91%
c
200 + v 1000 + s 3000. s' = 300%, r' = 250%
The
rate of profit rises by 175%
With
a much higher composition.
c
10,000 + v 1,000 + s 1,000. s' = 100%, r' = 9.1%
c
20,000 + v 1,000 + s 3,000. s' = 300%, r' = 14.29%
The
rate of profit rises by 57.03%
Finally,
where the rate of profit is already high, and where the organic
composition is already high, we have.
c
10,000 + v 200 + s 1800. s' = 900%, r' = 17.65%
c
20,000 + v 200 + s 3800. s' = 1900%, r' = 18.81%
The
rate of profit rises by 6.57%.
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