- •Lecture 1. The subject and the method of Political Economy
- •The economic activity as a condition of existence and society development. The labour-process and its elementary factors.
- •Instruments of labour.
- •The productive forces and productive relations: their unity and interdependency.
- •Economic laws and their objective character.
- •The subject and functions of Political Economy.
- •The method of Political Economy.
- •Lecture 2. Commodity production
- •Commodity and its factors: use-value and value. Exchange value.
- •The magnitude of commodity value.
- •Commodity and its factors: use-value and value. Exchange value.
- •The magnitude of commodity value.
- •Lecture 3. Commodity and Money
- •The form of value and its historical development.
- •The appearance of money. The essence and functions of money
- •The Fetishism of Commodities.
- •The form of value and its historical development.
- •Elementary or Accidental Form of Value.
- •X commodity a is worth y commodity b.
- •20 Yards of linen are worth 1 coat.
- •Total or Expanded Form of Value.
- •The General Form of Value
- •1. The altered character of the form of value
- •The Money-Form
- •The appearance of money. The essence and functions of money
- •The measure of Values
- •The medium of Circulation
- •Commodity — Money — Commodity.
- •The mean of hoarding
- •The means of Payment
- •Universal Money
- •The Fetishism of Commodities.
- •Lecture 4. Labour-Process and process of producing surplus-value.
- •Transformation of money into capital.
- •Labour-power as a commodity.
- •Labour-Process and process of producing surplus-value.
- •The Transformation of money into capital.
- •The labour-power as a commodity.
- •The Labour-Process and the Process of Producing Surplus-Value.
- •Lecture 5. Capital and Labour-Power
- •The essence of the capital. Constant Capital and Variable Capital
- •The Rate and the Mass of Surplus-Value
- •Modes of surplus-value production
- •Working-day I. Working-day II. Working-day III.
- •The relative surplus-value.
- •The absolute surplus-value.
- •In what follows the chief combinations alone are considered.
- •The stages of labour division in condition of capitalism
- •Simple capitalist co-operation
- •Division of Labour and Manufacture
- •Machinery and Modern Industry
- •Lecture 6. Wages
- •The essence of wages
- •The main forms and systems of wages
- •National Differences of Wages
- •The essence of wages
- •The main forms and systems of wages
- •2.1. Time-Wages
- •Daily value of labour-power/working-day of a given number of hours’
- •Piece-Wages as transformed condition of Time-Wages
- •Daily value of labour-power/the working day of a given number of hours
- •National Differences of Wages
- •Lecture 7. The accumulation of capital
- •The substance and types of reproduction. Simple Reproduction.
- •Capitalist production on a progressively increasing scale.
- •The substance and factors which determine the magnitude of accumulation.
- •Technical, value and organic composition of capital and tendencies of their dynamics.
- •Forms of accumulation. Centralization and concentration of capital.
- •The accumulation of capital and the employment. Unemployment and its forms.
- •Lecture 8. The circuit of capital
- •The circuit of capital and its stages.
- •The Circuit of Money Capital
- •I. First Stage. M — c
- •II. Second Stage. Function of Productive Capital
- •III. Third Stage. C' — m'
- •IV. The Circuit as a Whole
- •The Circuit of Productive Capital
- •The Circuit of Commodity-Capital
- •Three Formulas of the Circuit
- •The Time of Circulation
- •The Costs of Circulation
- •The Time of Purchase and Sale
- •Costs of Storage
- •Costs of Transportation
- •Lecture 9. Turnover of capital
- •The Turnover Time and the Number of Turnovers
- •Fixed Capital and Circulating Capital
- •The Aggregate Turnover of Advanced Capital. Cycles of Turnover
- •The Turnover of Variable Capital. The Annual Rate and mass of Surplus-Value.
- •(Capital turned over annually) / (capital advanced)
- •(Quantity of surplus-value produced during the year) / (variable capital advanced)
- •(Real rate of surplus-value × variable capital advanced × n) / (variable capital advanced)
- •(Quantity of s produced in one turnover period) / (variable capital employed in one turnover period)
- •Lecture 10. The Reproduction and Circulation of the Aggregate Social Capital
- •2. The Two Departments of Social Production
- •In each department the capital consists of two parts:
- •The exchange of the Aggregate Social Commodity in the case of simple reproduction.
- •I. Production of Means of Production:
- •II. Production of Articles of Consumption:
- •The exchange of the Aggregate Social Commodity in the case of Reproduction on an Expanded Scale.
- •Schematic Presentation of Accumulation
- •Lecture 11. Cost-Price and Profit
- •Cost-Price and profit
- •The Rate of Profit
- •Factors which determine the rate of profit.
- •Formation of a General Rate of Profit and Transformation of the Values of Commodities into Prices of Production
- •The Law of the Tendency of the Rate of Profit to Fall
- •Counteracting Influences
- •Lecture 12. Commercial Capital and Commercial Profit
- •Commercial Capital as the isolated part of industrial capital.
- •Commercial profit and mechanism of its formation.
- •Commercial Capital as the isolated part of industrial capital.
- •Commercial profit and mechanism of its formation.
- •Lecture 13. Money Capital and the interest
- •Interest-Bearing Capital
- •The interest.
- •Division of Profit. Rate of Interest. Natural Rate of Interest.
- •The Credit
- •The Role of Credit in Capitalist Production
- •II. Reduction of the costs of circulation.
- •III. Formation of stock companies. Thereby:
- •Lecture 14. Agrarian relations in the case of capitalist economics
- •Economic relations in agriculture.
- •The essence of capitalist ground-rent. Ground-rent and rent.
- •Monopoly in land ownership. The origin of Differential Rent. Differential Rent I
- •1) Fertility.
- •2) The location of the land.
- •Differential Rent II
- •Absolute Ground-Rent and monopolistic Ground-Rent – their unity and differences.
- •Price of Land
- •I. The price of land may rise without the rent rising, namely:
- •II. The price of land may rise, because the rent increases.
- •Lecture 15. National income
- •The essence of national income. The Trinity Formula
- •Production of Gross domestic product and National income.
- •Distribution Relations and Production Relations
- •The essence of national income. The Trinity Formula
- •2. Production of Gross domestic product and National income.
- •Distribution Relations and Production Relations
-
Formation of a General Rate of Profit and Transformation of the Values of Commodities into Prices of Production
The organic composition of capital depends at any given time on two circumstances: first, on the technical relation of labour power employed to the mass of the means of production employed; secondly, on the price of these means of production.
Let us take five different spheres of production, and let the capital in each have a different organic composition as follows:
Capitals |
Rate of Surplus-Value |
Surplus-Value |
Value of Product |
Rate of Profit |
I. 80c + 20v |
100% |
20 |
120 |
20% |
II. 70c + 30v |
100% |
30 |
130 |
30% |
III. 60c + 40v |
100% |
40 |
140 |
40% |
IV. 85c + 15v |
100% |
15 |
115 |
15% |
V. 95c + 5v |
100% |
5 |
105 |
5% |
Here, in different spheres of production with the same degree of exploitation, we find considerably different rates of profit corresponding to the different organic composition of these capitals.
The sum total of the capitals invested in these five spheres of production = 500; the sum total of the surplus-value produced by them = 110; the aggregate value of the commodities produced by them = 610. If we consider the 500 as a single capital, and capitals I to V merely as its component parts (as, say, different departments of a cotton mill, which has different ratios of constant to variable capital in its carding, preparatory spinning, spinning, and weaving shops, and in which the average ratio for the factory as a whole has still to be calculated), the mean composition of this capital of 500 would = 390c + 110v, or, in per cent, = 78c + 22v. Should each of the capitals of 100 be regarded as 1/5 of the total capital, its composition would equal this average of 78c + 22v; for every 100 there would be an average surplus-value of 22; thus, the average rate of profit would = 22%, and, finally, the price of every fifth of the total product produced by the 500 would = 122. The product of each fifth of the advanced total capital would then have to be sold at 122.
With 80c + 20v and a rate of surplus-value = 100%, the total value of commodities produced by capital I = 100 would be 80c + 20v + 20s = 120, provided the entire constant capital went into the annual product. Now, this may under certain circumstances be the case in some spheres of production. But hardly in cases where the proportion of c : v = 4 : 1. We must, therefore, remember in comparing the values produced by each 100 of the different capitals, that they will differ in accordance with the different composition of c as to its fixed and circulating parts, and that, in turn, the fixed portions of each of the different capitals depreciate slowly or rapidly as the case may be, thus transferring unequal quantities of their value to the product in equal periods of time. But this is immaterial to the rate of profit. No matter whether the 80c give up a value of 80, or 50, or 5, to the annual product, and the annual product consequently = 80c + 20v + 20s = 120, or 50c + 20v + 20s = 90, or 5v + 20v + 20s = 45; in all these cases the redundancy of the product's value over its cost-price = 20, and in calculating the rate of profit these 20 are related to the capital of 100 in all of them. The rate of profit of capital I, therefore, is 20% in every case. To make this still plainer, we let different portions of constant capital go into the value of the product of the same five capitals in the following table:
Capitals |
Rate of Surplus Value |
Surplus-Value |
Rate of Profit |
Used up c |
Value of commodities |
Cost- Price |
|
I. 80c + 20v |
100% |
20 |
20% |
50 |
90 |
70 |
|
II. 70c + 30v |
100% |
30 |
30% |
51 |
111 |
81 |
|
III. 60c + 40v |
100% |
40 |
40% |
51 |
131 |
91 |
|
IV. 85c + 15v |
100% |
15 |
15% |
40 |
70 |
55 |
|
V. 95c + 5v |
100% |
5 |
5% |
10 |
20 |
15 |
|
390c + 110v |
— |
110 |
110% |
— |
— |
— |
Total |
78c + 22v |
— |
22 |
22% |
— |
— |
— |
Average |
If we now again consider capitals I to V as a single total capital, we shall see that, in this case as well, the composition of the sums of these five capitals = 500 = 390c + 110v, so that we get the same average composition = 78c + 22v, and, similarly, the average surplus-value remains 22. If we divide this surplus-value uniformly among capitals I to V, we get the following commodity-prices:
Capitals |
Surplus-Value |
Value of Product |
Cost-Price |
Price of Commodities |
Rate of Profit |
Deviation of Price from Value |
I. 80c + 20v |
20 |
90 |
70 |
92 |
22% |
+2 |
II. 70c + 30v |
30 |
111 |
81 |
103 |
22% |
-8 |
III. 60c + 40v |
40 |
131 |
91 |
113 |
22% |
-18 |
IV. 85c + 15v |
15 |
70 |
55 |
77 |
22% |
+7 |
V. 95c + 5v |
5 |
20 |
15 |
37 |
22% |
+17 |
Taken together, the commodities are sold at 2 + 7 + 17 = 26 above, and 8 + 18 = 26 below their value, so that the deviations of price from value balance out one another through the uniform distribution of surplus-value, or through addition of the average profit of 22 per 100 units of advanced capital to the respective cost-prices of the commodities I to V. One portion of the commodities is sold above its value in the same proportion in which the other is sold below it. And it is only the sale of the commodities at such prices that enables the rate of profit for capitals I to V to be uniformly 22%, regardless of their different organic composition. The prices which obtain as the average of the various rates of profit in the different spheres of production added tithe cost-prices of the different spheres of production, constitute the prices of production. They have as their prerequisite the existence of a general rate of profit, and this, again, presupposes that the rates of profit in every individual sphere of production taken by itself have previously been reduced to just as many average rates. These particular rates of profit = s/c in every sphere of production, and must be deduced out of the values of the commodities. Without such deduction the general rate of profit (and consequently the price of production of commodities) remains a vague and senseless conception. Hence, the price of production of a commodity is equal to its cost-price plus the profit, allotted to it in per cent, in accordance with the general rate of profit, or, in other words, to its cost-price plus the average profit.
The general rate of profit is, therefore, determined by two factors:
1) The organic composition of the capitals in the different spheres of production, and thus, the different rates of profit in the individual spheres.
2) The distribution of the total social capital in these different spheres, and thus, the relative magnitude of the capital invested in each particular sphere at the specific rate of profit prevailing in it; i. e., the relative share of the total social capital absorbed by each individual sphere of production.