value, price and profit summary

The tendency is thus – with continuous unemployment and less skilled labour – for average wages to decline and for, in Marx’s view here, the value of labour to be depressed “more and more to its minimum limit”.

Labour Power, What factors determined the share of the surplus product going to the landowning class and to the government? What is the meaning of “socially necessary”? Values may remain unchanged but prices alter because of a change in the value of money. (The physical units to which we refer might, for example, be thousands of tons in the case of iron and of corn and kilograms in the case of gold. 22. Do you see any problems arising for the capitalist in terms of realisation of this profit? what an electrician working for a big building firm would get paid)? Subscribe for instant access to all articles since 1960, Buy the print issue (with instant online access) for £8, Terry Eagleton, ‘Ideology and Literary Form’.

The value of a commodity is determined by the amount of labour incorporated in it (but see 8). Why don't the workers get a share of the profits?

1. 5.

Net output therefore consists of 48 units of gold and eight units of corn. In each industry the production process uses only labour and iron as inputs; the amount of iron used per unit of labour varies between the industries, but whichever industry iron is used in it is completely used up in one year.

42. 1. 44. Table of Contents | Wages and Profits (Chapters XII-XIV). ( Log Out /  On the one hand they depended on the existing conditions of production, both technical and social, which defined the relations between inputs and outputs in the productive process. The value of a Commodity (Chapter VI).

Questions for discussion: How would people live without wages?

25. Workers ought still to resist these downward economic pressures but realise that they are only fighting effects. The final row shows the physical inputs and outputs for the economy as a whole. Introduction The Struggle between Capital and Labour, and its Results. Supposing the productivity of labour was doubled, i.e., workers produced twice as much product in the same time, simply by improved techniques, and the value of money remaining constant, the prices of all commodities halved: (b) A change in money prices caused by a change in the value of money. 7.

Production and Wages. 35.

3.

2. Atvarious stages of the business cycle all prices, including wages, rise and fall. Constant and Variable Capital,

Over the last 15 years or so, academic economics has generated a considerable discussion of questions which bear directly on Marx’s treatment of the relations between wages, profits, values and prices: relations which are clearly of importance for Marxist analyses of many issues in political economy.footnote1 The purpose of this article is to set out, by means of a simple numerical example, some of the conclusions which can now be drawn concerning Marx’s analysis of the connection between values, prices and profits.

Intensity of labour should not be confused with productivity though, in the short run at least, an increase in intensity is also an increase in productivity. If his employer does overwork him he is in effect reducing that worker’s standard of living by paying him less than the value of his labour power. 17.

6.

27. 3. Why is it that landlords, capitaists, traders, and everyone trades at a profit, but the worker only gets enough to live on, in this system of wage-labour? His argument was both strengthened and simplified by the assumption that commodities exchange at value. What can Marx mean by “Abolition of the Wages System”? Labour, 30. footnote2 (On the basis of these conclusions we shall then make a number of points concerning the ‘law of the tendency of the rate of profit to fall’, but the latter is not the main focus of our attention.).

Capital,

Term: 20. Total family income may increase due to wives and children working, but the workers’ relative social position still declines if the rise in total wages was less than the extra surplus labour extracted from the whole family.

This work, as … It is generally accepted that workers are working longer and longer hours over recent decades.

and what is the effect on prices of introducing new methods of production which allow the same product to be produced with less labour? Marxists Internet Archive. If productivity rises then more commodities are produced in the same time so that the value (and price) of each individual commodity falls. Market price, however, oscillates about the natural price so that inthe long run commodities exchange at their values (but see 14).

But how could be worth any more than eight hours wages for the given trade (e.g. What factors contribute to increasing the time for which a worker is working solely for the benefit of the employer? 6. These value quantities, however, were determined by two different things which Marx assumed to be given, in a given capitalist economy at a given point in time. 40. Free trade and Protectionism. This is only what it is broken down into. Socialism.

Departments of Capital, How much labour is incorporated in a commodity is measured by the time taken to produce it, skilled labour being reduced to units of average or simple labour.

Unequal wages reflect unequal values of different kinds of labour power. (c) The amount of commodities consumed by a worker, or his standard of living. 18. Value, Price and Profit. Trade Unions, Working Day, Exchange-value, 4.

4. They ought also to fight for the abolition of the wages system. Value and productivity are inversely related. We shall turn to the value quantity representation of the economy below but, for reasons which will emerge later, we start by describing the economy in physical terms.

2.

II. ( Log Out /  Realisation of Value. Change ), You are commenting using your Facebook account. 3. Term:

(a) because what power they have is often not used properly; (b) because they are only dealing with effects anyway. Contract Labour, Term:

How would you respond to this version of Weston's argument in terms of inflation? The rate of profit can be expressed in two ways: Marx uses the term “rate of profit” here to mean the latter. Questions for discussion:

15.

Proletariat, 1.

Questions for discussion: 19. He has to share it with the landlord (rent) and the banker (interest).

How would you explain the high or low cost of various commodities in terms of the socially necessary labour time required for their production? The final row, being merely the sum of the first three rows, shows that, in the economy as a whole, 80 units of labour are being performed and 56 units of iron are being used up, while 56 units of iron, 48 units of gold and eight units of corn are being produced.

Value, Price and Profit is a case in point.

Assuming wages adjusted themselves in this way, what would be the effect on the rate of surplus value? The source of Profit (Chapters VII- XI). (b) The greater the productivity of the labour employed in producing a commodity the smaller its value, and vice versa. 1. 34. 2. Distribution and Exchange. It was found among Marx’s papers after Engels’ death and published by Marx’s daughter, Eleanor Aveling. Marx refers to Weston's argument that the total portion of the national product accruing to wages must remain constant. To say that profit arises from selling commodities above their values is absurd since, on average, what you gained as a seller you would lose asa buyer . Thus in nearly every case the wage struggle follows on from rather than precedes some other economic change.

1.

1.

How do these ideas answer the questions Marx was raising in the first few chapters, refuting Weston's assertion that wages were fixed?

Slave Society, How is it possible for anyone to make a profit is everything is sold at its value? In it, Karl Marx presents the basic concepts of what is today usually known as the Labour Theory of Value. (d) A change in labour market conditions in the course of the business cycle. In an unregulated labour market, with no trade unions, what would you expect to happen to wages?

When a worker sells the use of his labour power he expects it to be used properly and that his employer will not make him work too hard or too long. Should workers' organisations campaign for lower taxes? Wages and Profits (Chapters XII-XIV). So: By selling this commodity at its value of l8s.

2. 3. Value of Labour, Profit is made by Selling a Commodity at its Value. We shall assume that the total real wage bill paid to the 80 units of labour consists of five units of corn, this corn wage bill being paid at the beginning of the year, as assumed by Marx.

Labour Theory of Value, What factors contribute to increasing the time for which a worker is working for herself, i.e., the necessary labour time? . Necessary and Surplus Labour Time.

Surely eight hours labour in the form of a service (e.g. He also calls this the “rate of exploitation”. Depending on supply and demand, the price at which a commodity actually sells (its market price) can vary from its natural price. 16. 1. What is the significance of the struggle over the length of the working week? New York: International Co., Inc, 1969; Written: between end of May and June 27, 1865; First published: 1898; Edited: by Eleanor Marx Aveling; HTML Mark-up: Mike Ballard, 1995; Proofed: and corrected by Brandon Poole, 2009. Term:

These can all vary independently of each other. In Capital Volume One Marx set out his theory of value and exploitation and showed, through his concept of the value of labour power, how ‘freedom’ of exchange is quite compatible with exploitation and the existence of surplus value.

Should workers' organisations campaign for lower taxes? Since different people’s labour power can differ in quality due to training, the demand for equal wages is absurd. (a) The more time needed to produce a commodity the greater its value and vice versa.

How is the value of a service determined?

48. Economics Index

In June 1865, Marx gave twolectures which included many of the theoretical propositions to be publishedtwo years later in Capital, Volume 1.These lectures were given in London in English butnot published in Marx's lifetime.In April of 1897, the text was found amonghis papers by his daughter Eleanor Marx Aveling.She felt that it offered an easily accessible summary of Marx'stheory which would "make a very popular pamphlet" (letter toKarl Kautsky), and edited it for publication.However, she died shortly bef… 4.

Taxation,

Preliminary. 11.

Trade union activities are thus primarily defensive or, as Marx puts it, “the reactions of labour against the previous action of capital”. The money commodity (gold, for instance) is a special commodity in which the values of all other commodities can be expressed. Note that in Capital he calls this the “rate of surplus-value” and gives of “rate of profit” a different meaning to here . 37. By what line of argument does Marx prove that a rise in wages will bring about an increase in the mass of commodities which the workers will be able to purchase with their now increased wages? ( Log Out /  Shouldn't I have access to this article via my library? (d) The ratio of paid to unpaid labour, or relative wages.

The question will turn up at our Congress. Show Details. Rent, Term: 1. 1. 1. 5. If their value increased, then a wage increase would merely restore the position and allow the workers to consume the same amount. 3.

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