Theories of Surplus Value, Part II, Chapter 16 - Part 18

Marx then turns to an analysis of the new scenarios introduced earlier in this chapter. 

The market value per ton rises to £2.50, as an additional type of land Ib is introduced. With a capital of £100, it produces only 43.636 tons. The composition of the capital is £54.545 c + £45.455 v. The value of its product is £109.09. Because, the market value per ton has increased, so that wages increase, the £45.455 of wages is only enough to employ 18.18 workers. The profit is £9.09, giving a rate of profit of 9.09%. The rate of surplus value is 20%. 

Marx says, 

“Since the organic composition of the capitals in III, II, I is the same as in Ib and they must pay the same wages, they too can employ only 18 2/11 men with £100, these men produce a total value of £54 6/11, and therefore a surplus-value of 20 per cent and a rate of profit of 9 1/11 per cent as in Ib. The total value of the product here, as in Ib, is £109 1/11.” (p 447) 

However, as seen previously, because the total output produced by these different capitals, differs considerably, as a result of varying fertility of the land, the individual value per ton varies significantly from one type of land to another. The output of land III is 68.18 tons. But, sold at its market value of £2.50 per ton, that amounts to £170.455, rather than its individual value of £109.09. That means it produces a surplus profit of £61.364. The differential value per ton, for II, is £2.50 - £1.60 = £0.90. 

The following tables summarise the position for the capitals employed on these different types of land.

[Class]	Capital £	[Number of] tons	ATV [Actual total value] £	TMV [Total market-value] £	MV [Market-value per ton] £	IV [Individual value per ton] £	DV [Differential value per ton] £
III	100	68.18	109.09	[£170.45]	2.50	1.600	[£0.900].
II	100	59.09	109.09	[£147.73]	2.50	1.846	[£0.654]
I	100	54.55	109.09	[£136.36]	2.50	2.000	[£0.500]
Ib	100	43.63	109.09	[£109.09]	2.50	2.500	0

Composition of capital	Number of workers	[Rate of] surplus-value %	Rate of profit %	Wages [in] tons	Profit [in] tons	Rent £	Rent [in] tons
54.54 c+45.46 v	18.18	20	9.09	18.18	3.63	[£61.36]	24.55
54.54 c+45.46 v	18.18	20	9.09	18.18	3.63	[£38.63]	15.46
54.54 c+45.46 v	18.18	20	9.09	18.18	3.63	[£27.27]	10.91
54.54 c+45.46 v	18.18	20	9.09	18.18	3.63	0	0

Marx finally turns to the situation described by Ricardo, where productivity falls so low that wages rise to a level whereby all of the surplus value is consumed, and profit and the rate of profit fall to zero. In this case, the market value per ton rises to £3. If 20 workers were employed consuming 20 tons, wages would have to equal £60, which means the organic composition of capital would then be £60 c: £60 v, or 1:1. If we scale this back to a capital of £100, we then have £50 c + £50 v. At the new higher level of wages, the £50 is only enough to employ 16.66 workers. 

If 20 workers produce £60 of new value, 16.66 workers produce £50 of new value, only equal to the value of their labour-power, so surplus value disappears. The total value of the output is £100, and with an individual price per ton of £3 that gives output of 33.33 tons on this new land Ia. But, on land type III, the individual value per ton is £1.60. Its output is then 62.5 tons x £1.60 = £100. But, again, it sells this output not at its individual value, but at the market value of £3 per ton (62.5 x £3 = £187.50). The differential value for land III is then £3 - £1.60 = £1.40 per ton = £87.50 (62.50 tons x £1.40 per ton). So, it produces a differential rent of £87.50 

Similar calculations apply to the other land types. The situation is summarised in the following tables. 

[Class]	Capital £	[Number of] tons	ATV [Actual total value] £	TMV [Total market-value] £	MV [Market-value per ton] £	IV [Individual value per ton] £	DV [Differential value per ton] £
III	100	62.50	100	187.50	3.00	1.60	1.40
II	100	54.17	100	162.50	3.00	1.85	1.15
I	100	50.00	100	150.00	3.00	2.00	1.00
Ib	100	40.00	100	120.00	3.00	2.50	0.50
Ia	100	33.33	100	100.00	3.00	3.00	0

Composition of capital	Number of workers	Rate of surplus-value %	Rate of profit %	Wages in tons	Rent £	Rent in tons
50 c + 50 v	16.66	0	0	16.66	87.50	29.17
50 c + 50 v	16.66	0	0	16.66	62.50	20.85
50 c + 50 v	16.66	0	0	16.66	50.00	16.66
50 c + 50 v	16.66	0	0	16.66	20.00	6.66
50 c + 50 v	16.66	0	0	16.66	0	0

Marx then sets out all five scenarios in table form.

[Class]	Capital £	[Number of] tons	Actual total value £	Total market-value £	Market value per ton £	Individual value per ton £	Differential value per ton £	Composition of capital	Number of workers	Rate of surplus-value %	Profit £	Profit in tons	Wages in tons	Money rent £	Rent in tons
A. Only the best class, III, is cultivated. Non-existence of rent. Only the most fertile land or mine is cultivated.
III	100	81.52	130.43	130.43	1.60	1.60	0	65.20 c + 34.80 v	21.74	87.50	30.43	19.02	21.74	0	0
B. Second class, II, is added. Rent comes into existence on land(mine) III
III	100	77.38	123.81	142.86	1.85	1.60	[0.246]	61.90 c + 38.10 v	20.63	62.50	23.81	12.90	20.63	19.05	10.32
I	100	67.06	123.81	123.81	1..85	1.85	0	61.90 c + 38.10 v	20.63	62.50	23.81	12.90	20.63	0	0
Total	200	144.44	247.62	266.67					41.26		47.62	25.80	41.26	19.05	10.32
C. Third class, I , is added. Rent comes into existence on land (mine) II
III	100	75.00	120.00	150.00	2.00	1.60	[£0.40]	60 c + 40 v	20.00	50.00	20.00	10.00	20.00	30.00	15.00
II	100	65.00	120.00	130.00	2.00	1.85	[£0.15]	60 c + 40 v	20.00	50.00	20.00	10.00	20.00	10.00	5.00
I	100	60.00	120.00	120.00	2.00	2.00	0	60 c + 40 v	20.00	50.00	20.00	10.00	20.00	0	0
Total	300	200.00	360.00	400.00					60.00		60.00	30.00	60.00	40.00	20.00
D. Fourth class, Ib, is added. Rent comes into existence on land (mine) I
III	100	68.18	109.09	[£170.46]	2.50	1.60	[£0.90]	54.55 c + 45.45 v	18.18	20.00	9.09	3.64	18.18	[£61.36]	24.55
II	100	59.09	109.09	[£147.73]	2.50	1.85	[£0.65]	54.55 c + 45.45 v	18.18	20.00	9.09	3.64	18.18	[£38.64]	15.46
I	100	54.55	109.09	[£136.36]	2.50	2.00	[£0.50]	54.55 c + 45.45 v	18.18	20.00	9.09	3.64	18.18	[£27.27]	10.91
Ib	100	43.64	109.09	[£109.09]	2.50	2.50	0	54.55 c + 45.45 v	18.18	20.00	9.09	3.64	18.18	0	0
Total	400	225.46	436.36	[£563.64]					72.73		36.36	14.55	72.73
E. Fifth class, Ib, is added. Surplus-value and profit disappear altogether.
III	100	62.50	100.00	187.50	3.00	1.60	1.40	50 c+50 v	16.66	0	0	0	16.66	87.50	29.17
II	100	54.17	100.00	162.50	3.00	1.85	1.15	50 c+50 v	16.66	0	0	0	16.66	62.50	20.83
I	100	50.00	100.00	150.00	3.00	2.00	1.00	50 c+50 v	16.66	0	0	0	16.66	50.00	16.66
Ib	100	40.00	100.00	120.00	3.00	2.50	0.50	50 c+50 v	16.66	0	0	0	16.66	20.00	6.66
Ia	100	33.33	100.00	100.00	3.00	3.00	0	50 c+50 v	16.66	0	0	0	16.66	0	0
Total	500	240.00	500.00	720.00					83.33				83.33	220.00	73.33

Back To Part 17

Forward To Part 19