Marx then discusses the situation where it is not the labour process itself which extends the production time, but the need for the product to undergo natural processes such as wine that must ferment, and stand in the wine cellar.
“It is obvious that in this case quite irrespective of what the ratio of variable to constant capital may have been, the effect is the same as if more constant and less variable capital had been laid out. The surplus labour, as well as the total amount of labour employed during a definite period of time, is smaller. If the rate of profit is the same, this is due to equalisation, not to the amount of surplus-value produced in this sphere. More capital must be advanced beforehand to maintain the reproduction process—the continuity of production. And for this very reason the surplus-value declines in proportion to the capital advanced.” (p 392)
As seen previously, this confused Ricardo, who failed to distinguish between the exchange value of commodities, and their price of production. The attempt to reconcile this contradiction, and to explain why commodities whose production time was extended, had a higher “value” despite containing no more labour, by Ricardo's followers, ultimately led to the dissolution of the Ricardian School itself.
Marx distinguishes the above situation from that where the production process itself is interrupted. In other words, if we take crop production, labour is expended preparing the soil, and planting seed. Then the labour process is interrupted, as the crops grow, and then labour is expended once more to harvest the crop.
“If in such cases, the interval is reduced by chemical discoveries, the productivity of labour rises, the surplus-value is increased and materialised labour has to be advanced for a shorter period of time. In all these cases, the surplus-value is smaller and the capital outlay larger.” (p 392)
In all these examples, the rate of turnover is determined by the circulating capital, not the fixed capital, because it is only the consumed circulating capital that must be reproduced, so that production can be continuous. In the process, the wear and tear of the fixed capital is also reproduced, and is thereby accumulated, so as to reproduce the fixed capital itself, when it is actually worn out. But, the annual rate of profit is calculated on the total advanced capital, including the full value of the fixed capital.
Marx then turns to the determination of the turnover of the capital, as a consequence of the circulation time, as opposed to the production time.
“The same thing happens if the rate of turnover of the circulating capital is lower than the average because of distant markets, In this case, too, the capital outlay is greater, the surplus-value smaller and its proportion to the capital advanced is also smaller.} [In the latter case [the capital] is retained longer in the circulation sphere, in the former case, in the production sphere.]” (p 392)
No comments:
Post a Comment