CapitalCapital, Chapter 12:, Chapter 12:

The ConceptThe Concept

OfOf

Relative Surplus ValueRelative Surplus Value

Response to CrisisResponse to Crisis

The success of the working class in The success of the working class in reducing the working day causes a crisis reducing the working day causes a crisis for businessfor business

Ceteris ParibusCeteris Paribus, less work time = less , less work time = less surplus value, lower profit rates.surplus value, lower profit rates.

I.e., a defeat of absolute surplus value I.e., a defeat of absolute surplus value strategystrategy

Two possible responses:Two possible responses:– Lower wages to reduce value of LPLower wages to reduce value of LP– Lower value of means of subsistenceLower value of means of subsistence

Lower Wages?Lower Wages?

Lowering wages will reduce value of labor Lowering wages will reduce value of labor power and costs to business, thus raising power and costs to business, thus raising surplus value/profitssurplus value/profits

But: reduction below subsistence means But: reduction below subsistence means failure to reproduce LP, death, crisis in failure to reproduce LP, death, crisis in labor forcelabor force

This happens, but Marx assumes awayThis happens, but Marx assumes away

Lower Value of MSLower Value of MS

If value of MS is reduced, an equal If value of MS is reduced, an equal reduction in wages reduces the value of reduction in wages reduces the value of LP and raises S raised, with NO reduction LP and raises S raised, with NO reduction of real value of wages.of real value of wages.

How to do this?How to do this?– Temp: cheap corn importsTemp: cheap corn imports– Long term: Raise productivity in production of Long term: Raise productivity in production of

MSMS

New StrategyNew Strategy

From longer work to more productivity!From longer work to more productivity! More output for same labor time input More output for same labor time input

gives lower per unit valuegives lower per unit value When productivity rises in MS industry, V When productivity rises in MS industry, V

falls and S rises, S/V rises.falls and S rises, S/V rises. Indirect effects from other industriesIndirect effects from other industries Shift from "formal" subsumption of labor Shift from "formal" subsumption of labor

to capital to "real" subsumption (read "6th to capital to "real" subsumption (read "6th Chapter", I.e., appendix to Vol I.Chapter", I.e., appendix to Vol I.

Simple ExampleSimple Example

Agriculture, output = bushels of wheatAgriculture, output = bushels of wheat Time 1: assume s/v = 1/1, output = 100b = Time 1: assume s/v = 1/1, output = 100b =

50b (for V) + 50b (for S)50b (for V) + 50b (for S) Time 2: assume productivity doubles but Time 2: assume productivity doubles but

work time remains the same, so value the work time remains the same, so value the samesame

Time 2: output = 200b = 50b(V) + 150b(S)Time 2: output = 200b = 50b(V) + 150b(S) The value of V has been halved, but real The value of V has been halved, but real

wage remains the same, share of S wage remains the same, share of S increasedincreased

Micro levelMicro level

For the firm, raising productivity cuts For the firm, raising productivity cuts costscosts

In neoclassical theory reduced costs In neoclassical theory reduced costs increases profits, shifts MC/supply curve increases profits, shifts MC/supply curve down and rightdown and right

So, increased productivity shifts surplus So, increased productivity shifts surplus value from other firms to this firmvalue from other firms to this firm

As new techniques circulate via As new techniques circulate via competition and supply grows, price falls, competition and supply grows, price falls, profits return to normal.profits return to normal.

Macro levelMacro level

As improvement in productivity circulate As improvement in productivity circulate and become general, value of MS falls for and become general, value of MS falls for all workers so value of LP fallsall workers so value of LP falls

General fall in LP raises S for capital and General fall in LP raises S for capital and raises S/V as well, as seen previouslyraises S/V as well, as seen previously

Productivity DealsProductivity Deals

So, to the degree that capital is able to capture So, to the degree that capital is able to capture the fruits of productivity grow for itself its share the fruits of productivity grow for itself its share of value and relative power growsof value and relative power grows

But productivity fruits can be shared between the But productivity fruits can be shared between the classes via "productivity deals"classes via "productivity deals"

E.g., Keynesianism: wage growth linked to E.g., Keynesianism: wage growth linked to productivity growth in contracts (micro level) and productivity growth in contracts (micro level) and government policy (macro level)government policy (macro level)

Wage struggles became motor of growth & fruits Wage struggles became motor of growth & fruits

of growth sharedof growth shared

Competition?Competition?

Competition key mechanism in circulation of Competition key mechanism in circulation of productivity raising technological changeproductivity raising technological change

But what is competition?But what is competition? Usual view: intercapitalist rivalry, each seeks Usual view: intercapitalist rivalry, each seeks

"competitive advantage" to gain bigger share of "competitive advantage" to gain bigger share of S, working class irrelevant, victimsS, working class irrelevant, victims

Alternative view: success in competition function Alternative view: success in competition function of class relationsof class relations

Competition & Class StruggleCompetition & Class Struggle

Competition via lower costs function of controlCompetition via lower costs function of control– Control can mean ability to lower wages or other Control can mean ability to lower wages or other

benefitsbenefits– Control can mean ability to induce cooperation and Control can mean ability to induce cooperation and

creativity and innovationcreativity and innovation

Competition via product differentiationCompetition via product differentiation– Ability to produce competitive new products function of Ability to produce competitive new products function of

ability to induce or harness creativity among designers ability to induce or harness creativity among designers (e.g., Jill in Jack & Jill sitcom)(e.g., Jill in Jack & Jill sitcom)

Winner = capitalist with best "control" of workersWinner = capitalist with best "control" of workers

Productivity & WorkProductivity & Work

Note: fruits of productivity can be taken Note: fruits of productivity can be taken either in the form of higher wages/profits either in the form of higher wages/profits OR in the form of less work OR bothOR in the form of less work OR both

Doubling productivity could double real Doubling productivity could double real wagewage

Doubling productivity could halve work Doubling productivity could halve work time with same real wagetime with same real wage

Doubling productivity could increase real Doubling productivity could increase real wage by 50% and cut work by 25%, etc.wage by 50% and cut work by 25%, etc.

CapitalCapital, Chapter 13:, Chapter 13: CapitalCapital, Chapter 13:, Chapter 13:

Co-operationCo-operation

Co-operationCo-operationCo-operationCo-operation

Co-operation predates capitalismCo-operation predates capitalism– tribal hunting, collective farming, fishing, tradetribal hunting, collective farming, fishing, trade– Egyptian pyramids, Gothic cathedrals, castlesEgyptian pyramids, Gothic cathedrals, castles

Comes with many workers collaboratingComes with many workers collaborating– either in same processeither in same process– or, in different but connected processesor, in different but connected processes

Co-operation creates a “social force”Co-operation creates a “social force”– a “new power”a “new power”– realizes the “capabilities of their species”realizes the “capabilities of their species”

Sources of “New Productive Sources of “New Productive Power”Power”

Sources of “New Productive Sources of “New Productive Power”Power”

makes workers more efficientmakes workers more efficient extends sphere of action over a greater spaceextends sphere of action over a greater space contracts and concentrates field of productioncontracts and concentrates field of production excites rivalry between individualsexcites rivalry between individuals creates continuity and manysidednesscreates continuity and manysidedness economizes means of production by common economizes means of production by common

useuse timeliness (e.g., harvests)timeliness (e.g., harvests)

Co-operation & “Authority”Co-operation & “Authority”Co-operation & “Authority”Co-operation & “Authority”

large numbers must be co-ordinated to large numbers must be co-ordinated to “secure harmonious co-operation”“secure harmonious co-operation”

co-ordination can = domination = co-ordination can = domination = “authority”“authority”– e.g., capitalism where relations are antagonistice.g., capitalism where relations are antagonistic

co-ordination can ≠ dominationco-ordination can ≠ domination– e.g., where workers choose their own co-e.g., where workers choose their own co-

ordinators to help them achieve collective goalsordinators to help them achieve collective goals

Co-operation and Class Co-operation and Class StruggleStruggle

Co-operation and Class Co-operation and Class StruggleStruggle

In capitalism co-ordinationIn capitalism co-ordination– not just for efficiencynot just for efficiency– but for control, minimize costs, maximize profitsbut for control, minimize costs, maximize profits

Gathering of workers and oversight gives Gathering of workers and oversight gives more controlmore control

But, it also results in collective and greater But, it also results in collective and greater resistance and struggle, e.g., unionsresistance and struggle, e.g., unions

Thus comment in Chap 32 about Thus comment in Chap 32 about “gravediggers”“gravediggers”

Capitalist AuthorityCapitalist AuthorityCapitalist AuthorityCapitalist Authority

Capitalist PLAN organization of labor to Capitalist PLAN organization of labor to insure control of workers, their reduction insure control of workers, their reduction from working class to mere labor force.from working class to mere labor force.

Plan and control are “despotic”Plan and control are “despotic”– sometimes by controling every gestrure, e.g., sometimes by controling every gestrure, e.g.,

TaylorismTaylorism

– sometimes by controling framework within sometimes by controling framework within which workers have some leawaywhich workers have some leaway

Despotism requries managers, foremen, Despotism requries managers, foremen, overseers separate from workersoverseers separate from workers

Workers under CapitalismWorkers under CapitalismWorkers under CapitalismWorkers under Capitalism Gathered together by capital, enclosure herds Gathered together by capital, enclosure herds

them into factoriesthem into factories– older forms of co-operation destroyed or taken older forms of co-operation destroyed or taken

overover Control seeks to keep them as units of capitalControl seeks to keep them as units of capital The “productive power of co-operation” appears The “productive power of co-operation” appears

as a “power of capital”, rather than that of laboras a “power of capital”, rather than that of labor But that “power” can survive death of capital, just But that “power” can survive death of capital, just

as it survived death of earlier formsas it survived death of earlier forms Marx was no pastoralist but saw transcendenceMarx was no pastoralist but saw transcendence

CapitalCapital, Chapter 14:, Chapter 14:CapitalCapital, Chapter 14:, Chapter 14:

Manufacturing Manufacturing

and the and the

Division of LaborDivision of Labor

““Manu”- facturingManu”- facturing““Manu”- facturingManu”- facturing

particular sort of co-operationparticular sort of co-operation large number of workerslarge number of workers workers’ hands (“manu-”) using tools to workers’ hands (“manu-”) using tools to

make (“facturing”) thingsmake (“facturing”) things Period: mid-16th to last of 18th CenturyPeriod: mid-16th to last of 18th Century

Collective WorkerCollective WorkerCollective WorkerCollective Worker

With a complex division of labor each worker only With a complex division of labor each worker only makes a element of the final productmakes a element of the final product

So, final product is product of ALL the workers, So, final product is product of ALL the workers, working togetherworking together

Thus, the “collective” workerThus, the “collective” worker Collective worker = component element of Collective worker = component element of

“working class” = of class composition“working class” = of class composition Hierarchy: of skills, of values of labor power, of Hierarchy: of skills, of values of labor power, of

wages, of perks. Divided to conquerwages, of perks. Divided to conquer

Dual OriginDual OriginDual OriginDual Origin

bringing together:bringing together:– large numbers of different kinds of skilled large numbers of different kinds of skilled

workersworkers– large numbers of same kind of skilled workerslarge numbers of same kind of skilled workers

Skilled workers = handicraft artisans with Skilled workers = handicraft artisans with knowledge of whole processesknowledge of whole processes

Manufacturing decomposes skills & Manufacturing decomposes skills & organizes a new division of labor, organizes a new division of labor, increases specializationincreases specialization

Specialized WorkersSpecialized WorkersSpecialized WorkersSpecialized Workers

one-sided work one-sided work productivityproductivity repetition repetition reduced gaps, reduced gaps,productivityproductivity specialized workers use specialized tools, specialized workers use specialized tools,

often simplified, which prepares way for often simplified, which prepares way for mechanizationmechanization

narrowing, repetition fi cripplingnarrowing, repetition fi crippling– recognized by Adam Smith in recognized by Adam Smith in Wealth of Wealth of

NationsNations– recognized by Marx in recognized by Marx in CapitalCapital – Jack London’s bottle worker (p.22 in SG III)Jack London’s bottle worker (p.22 in SG III)

2 Forms of Manufacturing2 Forms of Manufacturing2 Forms of Manufacturing2 Forms of Manufacturing

1. Parts made separately then assembled,1. Parts made separately then assembled,– e.g., watches, automobiles, computerse.g., watches, automobiles, computers

2. Production through a series of 2. Production through a series of sequential operationssequential operations– e.g., steel products, pencils, papere.g., steel products, pencils, paper

Division of LaborDivision of LaborDivision of LaborDivision of Labor

Division of Labor in detail, in factory, school (I)Division of Labor in detail, in factory, school (I)– despotism of capital, details planneddespotism of capital, details planned

Division of labor in particular, academy (P)Division of labor in particular, academy (P)– e.g., among industriese.g., among industries

Division of labor in general (U)Division of labor in general (U)– e.g., agriculture vs manufacturing, rural vs e.g., agriculture vs manufacturing, rural vs

urbanurban– waged vs unwaged, waged vs unwaged,

Division of labor on all levels are interelated, or Division of labor on all levels are interelated, or mediated as in syllogism (see chaps 1, 3)mediated as in syllogism (see chaps 1, 3)

Despotism vs AnarchyDespotism vs AnarchyDespotism vs AnarchyDespotism vs Anarchy

Despotism in factory: capitalist planningDespotism in factory: capitalist planning Anarchy of market: no planning, direction of Anarchy of market: no planning, direction of

development chaotic, costly through crisesdevelopment chaotic, costly through crises

ButBut Working class political recomposition implies not Working class political recomposition implies not

only changes in K plans, but expansion to new only changes in K plans, but expansion to new levelslevels

Anarchy of market reduced through oligopoly, Anarchy of market reduced through oligopoly, monopoly, state regulationmonopoly, state regulation

Planning can reach national, international levelsPlanning can reach national, international levels

ResistanceResistanceResistanceResistance

The negative effects of specialized laborThe negative effects of specialized labor The emergence of collective worker or The emergence of collective worker or

recompositionrecomposition The defense of skill by handicraft workers The defense of skill by handicraft workers

gathered togethergathered together All contribute to resistance within manufactureAll contribute to resistance within manufacture Leads to introduction of machinery to Leads to introduction of machinery to

decompose worker resistance via greater/new decompose worker resistance via greater/new div. of labordiv. of labor

CapitalCapital, Chapter 15: , Chapter 15: CapitalCapital, Chapter 15: , Chapter 15:

Machinery & Modern IndustryMachinery & Modern Industry

Section 1: Dev. of MachinerySection 1: Dev. of MachinerySection 1: Dev. of MachinerySection 1: Dev. of Machinery

Development of MachineryDevelopment of MachineryDevelopment of MachineryDevelopment of Machinery

Conversion of tools into machinesConversion of tools into machines Machine ≠ complex tool driven by humansMachine ≠ complex tool driven by humans Machine = motor mechanism + transmitting Machine = motor mechanism + transmitting

mechanism + tool or working mechanismmechanism + tool or working mechanism Machine = mechanism that performs work Machine = mechanism that performs work

previously done by workerpreviously done by worker MachinesMachinescomplex system of machinerycomplex system of machinery

Complex System of MachineryComplex System of MachineryComplex System of MachineryComplex System of Machinery

connected series of processes carried out by connected series of processes carried out by complementary machinescomplementary machines

co-operation of workers replaced by co-co-operation of workers replaced by co-operation of machinesoperation of machines

automatic system, automatonautomatic system, automaton machines required to produce machinesmachines required to produce machines humans moved from center to margins of humans moved from center to margins of

production processproduction process

Displacement of LaborDisplacement of LaborDisplacement of LaborDisplacement of Labor

GrundrisseGrundrisse: “Labor no longer appears so : “Labor no longer appears so much to be included within the production much to be included within the production process; rather , the human being comes to process; rather , the human being comes to relate more as watchman and regulator . . . relate more as watchman and regulator . . . He steps to the side of the production He steps to the side of the production process instead of being its chief actor. “process instead of being its chief actor. “

Extension of AnalysisExtension of AnalysisExtension of AnalysisExtension of Analysis

Marx’s focus is on factoryMarx’s focus is on factory He extends this analysis to communication He extends this analysis to communication

and transport which complemented increased and transport which complemented increased factory production: “river steamers, railways, factory production: “river steamers, railways, ocean steamers and telegraphs”ocean steamers and telegraphs”

WE need to analyze introduction of machines WE need to analyze introduction of machines more broadly into all of social life, into the more broadly into all of social life, into the sphere of reproduction as well as that of sphere of reproduction as well as that of productionproduction

Machines in ReproductionMachines in ReproductionMachines in ReproductionMachines in Reproduction

Mechanical transportation organizes Mechanical transportation organizes reproduction, e.g., bedroom communities vs work reproduction, e.g., bedroom communities vs work places places commuting and urban structure commuting and urban structure

Machines in houseworkMachines in housework– sought to reduce work, e.g., washing machinessought to reduce work, e.g., washing machines– increased demand for cleanliness can mean increased demand for cleanliness can mean

NO reduction, even an increaseNO reduction, even an increase

Machines in schoolworkMachines in schoolwork– from pencils thru sliderules to from pencils thru sliderules to

computers,computers,workwork

Section 2Section 2Value TransferredValue Transferred

Section 2Section 2Value TransferredValue Transferred

““Transfer of Value”Transfer of Value”““Transfer of Value”Transfer of Value”

Same basic message as Chapter 8’s Same basic message as Chapter 8’s discussion of constant capitaldiscussion of constant capital

Remember: “gradual transfer” means little by Remember: “gradual transfer” means little by little the work that produced the machine little the work that produced the machine turns out to also contribute to the final product turns out to also contribute to the final product produced by the machine.produced by the machine.

Cost CalculationCost CalculationCost CalculationCost Calculation

Value of machines must be less than value of Value of machines must be less than value of displaced labor per unit of production for displaced labor per unit of production for surplus value to be raisedsurplus value to be raised

Or, introduction of machinery requires Or, introduction of machinery requires reduction in costs such that profits will be reduction in costs such that profits will be increasedincreased

So, Marx’s analysis of the impact of relative So, Marx’s analysis of the impact of relative costs is reproduced years later in costs is reproduced years later in neoclassical theory of factor substitution.neoclassical theory of factor substitution.

Factor SubstitutionFactor SubstitutionFactor SubstitutionFactor Substitution

Qk

QL

WAGE QL, Qk

O

Tech Tech = f(class struggle) = f(class struggle)Tech Tech = f(class struggle) = f(class struggle)

So, this can be read dynamically as a theory of So, this can be read dynamically as a theory of how capital responds to working class struggle how capital responds to working class struggle that reduces the working day or raises wages, that reduces the working day or raises wages, (anything that raises the cost of labor) by (anything that raises the cost of labor) by substituting machines for workers.substituting machines for workers.

Thus, weak working class Thus, weak working class low incentive for low incentive for technological change; strong working class technological change; strong working class greater incentive for technological change. greater incentive for technological change.

So, reduction of absolute surplus value So, reduction of absolute surplus value mach.mach.

Section 3:Section 3:Section 3:Section 3:

Immediate Effects on WorkerImmediate Effects on Worker

Immediate Effects IImmediate Effects IImmediate Effects IImmediate Effects I

Machinery reduces need for brute strengthMachinery reduces need for brute strength::– easier to use women and childreneasier to use women and children– whole family enters the factorywhole family enters the factory– reduces time for reproduction: cooking, infant carereduces time for reproduction: cooking, infant care– male labor devalorized, “family wages”male labor devalorized, “family wages”

This undermines family & its reproductionThis undermines family & its reproduction Undermines children’s healthUndermines children’s health

– physically (thru work, neglect)physically (thru work, neglect)– psychologically & intellectually (neglect, no psychologically & intellectually (neglect, no

schooling)schooling)

Immediate Effects IIImmediate Effects IIImmediate Effects IIImmediate Effects II

Machinery prolongs working dayMachinery prolongs working day– work organized around machinery, cheaper to work organized around machinery, cheaper to

keep it running 24hrs a daykeep it running 24hrs a day– pitting women & children against men pitting women & children against men

decomposes class, increases capital’s power to decomposes class, increases capital’s power to impose 24hr work dayimpose 24hr work day

Paradox: most powerful instrument for Paradox: most powerful instrument for reducing work, increases it insteadreducing work, increases it instead

Forget DreamsForget DreamsForget DreamsForget Dreams

p. 532: “‘If’, dreamed Aristotle, the greatest p. 532: “‘If’, dreamed Aristotle, the greatest thinker of antiquity, ‘if every tool, when thinker of antiquity, ‘if every tool, when summoned, or even by intelligent anticipation, summoned, or even by intelligent anticipation, could do the work that befits it, just as the could do the work that befits it, just as the creations of Daedalus moved of themselves, creations of Daedalus moved of themselves, or the tripods of Hephaestus went of their or the tripods of Hephaestus went of their own accord to their sacred work, if the own accord to their sacred work, if the weavers shuttles were to weave of weavers shuttles were to weave of themselves, then there would be no need themselves, then there would be no need either of apprentices for the master either of apprentices for the master craftsmen, or of slaves for the lords”craftsmen, or of slaves for the lords”

Immediate Effects IIIImmediate Effects IIIImmediate Effects IIIImmediate Effects III

Machinery intensifies laborMachinery intensifies labor– rhythm of machines determine rhythm of laborrhythm of machines determine rhythm of labor– rhythm of machines constant rhythm of machines constant “filling up pores in “filling up pores in

the working day” the working day” – “ “heightened tension of labor power” -- “Speed-up”heightened tension of labor power” -- “Speed-up”

Speed-up is achieved by:Speed-up is achieved by:– running machines faster, e.g., assembly linerunning machines faster, e.g., assembly line– having workers tend more than one machine,e.g., having workers tend more than one machine,e.g.,

girls who fixed broken threads in textile industrygirls who fixed broken threads in textile industry

Speed-up in SchoolSpeed-up in SchoolSpeed-up in SchoolSpeed-up in School

Engineering last year: increased minimum # Engineering last year: increased minimum # hours per semesterhours per semester

Move to tax extra hours, move students Move to tax extra hours, move students through and out as fast as possible.through and out as fast as possible.

Lip-service to “education”, job training to the Lip-service to “education”, job training to the forefore

Advisors always recommend speediest track Advisors always recommend speediest track through the program, don’t “waste time” on through the program, don’t “waste time” on other stuffother stuff

Machines in ReproductionMachines in ReproductionMachines in ReproductionMachines in Reproduction

Television, arcade computer gamesTelevision, arcade computer games– said to inculcate passivity, thoughtlessnesssaid to inculcate passivity, thoughtlessness– typical critical theory critique: society of the typical critical theory critique: society of the

spectaclespectacle– song “Machines” in study guidesong “Machines” in study guide

But:” theory of reception” suggests intended But:” theory of reception” suggests intended consumption not always actual consumption, consumption not always actual consumption, critical consumptioncritical consumption

Also Also intelligent computer games, programming, intelligent computer games, programming, creativity by those who take over technologycreativity by those who take over technology

Intensity & LTV - IIntensity & LTV - IIntensity & LTV - IIntensity & LTV - I

With intensity now variable, we must consider With intensity now variable, we must consider consequences for the labor theory of valueconsequences for the labor theory of value

Apparent contradiction: before, an hour of labor = Apparent contradiction: before, an hour of labor = an hour of labor, now: ≠an hour of labor, now: ≠

Increased intensity means more value “produced” Increased intensity means more value “produced” in an hour, not just more product/productivityin an hour, not just more product/productivity

Results: we must differentiate sources of increase Results: we must differentiate sources of increase in productivity, more efficiency vs more intensityin productivity, more efficiency vs more intensity

Intensity & LTV - IIIntensity & LTV - IIIntensity & LTV - IIIntensity & LTV - II

Contradiction? No, change in intensity forces us Contradiction? No, change in intensity forces us to see that “time” was a convenient measure of to see that “time” was a convenient measure of “life”“life”

Speed-up means life energy sucked up (vampire Speed-up means life energy sucked up (vampire like) more quickly, a working day of the same like) more quickly, a working day of the same length is more exhausting, less life energy left length is more exhausting, less life energy left overover

Emphasizes basic thrust of theory: that Emphasizes basic thrust of theory: that capitalism involves subordination of life to work, capitalism involves subordination of life to work, not just life time but all of its dimensionsnot just life time but all of its dimensions

Intensity & LTV - IIIIntensity & LTV - IIIIntensity & LTV - IIIIntensity & LTV - III

Question: Does increases in intensity means Question: Does increases in intensity means more absolute surplus value (more work) or more absolute surplus value (more work) or more relative surplus value (smaller % of V)?more relative surplus value (smaller % of V)?

Answer: bothAnswer: both– assuming V remains constant, S increasesassuming V remains constant, S increases– assuming V remains constant, S/V increasesassuming V remains constant, S/V increases

Section 4: The FactorySection 4: The FactorySection 4: The FactorySection 4: The Factory

Factory = incarceration of laborFactory = incarceration of labor– akin to jails, hospitals, asylums, schoolsakin to jails, hospitals, asylums, schools– strikes, walkouts, teach-ins akin to jailbreaksstrikes, walkouts, teach-ins akin to jailbreaks

Factory: from “formal subordination of labor to Factory: from “formal subordination of labor to capital” to “real subordination of labor to capital”capital” to “real subordination of labor to capital”– Factory is site of reorganization of labor via Factory is site of reorganization of labor via

machinery, deskilling, decompositionmachinery, deskilling, decomposition– deskilling replaces skill differences and hierarchy deskilling replaces skill differences and hierarchy

with those of sex, wage, race, etc., e.g., with those of sex, wage, race, etc., e.g., The Jungle The Jungle

Section 5: Struggle between Section 5: Struggle between Workers & Machines - IWorkers & Machines - I

Section 5: Struggle between Section 5: Struggle between Workers & Machines - IWorkers & Machines - I

Individual and collective resistanceIndividual and collective resistance– machine breaking (Luddites in early 1800s, machine breaking (Luddites in early 1800s,

ShirleyShirley))– sabotage (wooden shoe in gears)sabotage (wooden shoe in gears)– wildcat actions, union actionswildcat actions, union actions

Increased efforts to reduce length of workIncreased efforts to reduce length of work ““Decomposition” not just competition btwn K’s Decomposition” not just competition btwn K’s

as Brontë & many Marxists portrayas Brontë & many Marxists portray

Capitalist in Capitalist in ShirleyShirleyCapitalist in Capitalist in ShirleyShirley

p. 155-7 “What will you do? . . . burn down my p. 155-7 “What will you do? . . . burn down my mill, destroy its contents and shoot me? What mill, destroy its contents and shoot me? What then? . . . Another and better gig-mill would rise then? . . . Another and better gig-mill would rise on the ruins of this, and perhaps a more on the ruins of this, and perhaps a more enterprising owner come in my place. . . . If I enterprising owner come in my place. . . . If I stopped by the way an instant, while others are stopped by the way an instant, while others are rushing on, I should be trodden down. If I did as rushing on, I should be trodden down. If I did as you wish me to do, I should be bankrupt in a you wish me to do, I should be bankrupt in a month; and would my bankruptcy put bread into month; and would my bankruptcy put bread into your hungry children’s mouths? . . .”your hungry children’s mouths? . . .”

Struggle between Workers & Struggle between Workers & Machines - IIMachines - II

Struggle between Workers & Struggle between Workers & Machines - IIMachines - II

““Decomposition” reorganizes labor, breaks Decomposition” reorganizes labor, breaks power. Most militant workers are fired, power. Most militant workers are fired, weaker made to work more, faster, harder. weaker made to work more, faster, harder. But ....But ....

““Decomposition” results in renewed “political Decomposition” results in renewed “political recomposition”recomposition”

The antagonism never abolished, only The antagonism never abolished, only reorganized and the struggle goes on, as reorganized and the struggle goes on, as endless as K itselfendless as K itself

Tendency of Tendency of Rate of Profit to Fall - IRate of Profit to Fall - I

Tendency of Tendency of Rate of Profit to Fall - IRate of Profit to Fall - I

Rate of profit: S/(C+V) --value measureRate of profit: S/(C+V) --value measure General rate of profit?General rate of profit?

– Yes, as a tendency, result of capital Yes, as a tendency, result of capital redistributing itselfredistributing itself

– from low profit sectors to high profit sectorsfrom low profit sectors to high profit sectors– entry and exit in neoclassical theory, entry and exit in neoclassical theory,

adjustment to long run equilibriumadjustment to long run equilibrium

So, what can we say about impact of increase So, what can we say about impact of increase of C on rate of profit?of C on rate of profit?

Tendency of Tendency of Rate of Profit to Fall - IIRate of Profit to Fall - II

Tendency of Tendency of Rate of Profit to Fall - IIRate of Profit to Fall - II

Analysis of relative surplus value shows Analysis of relative surplus value shows tendency to substitute machinery for labor tendency to substitute machinery for labor over timeover time

Three concepts:Three concepts:– technical composition of capital LP/MPtechnical composition of capital LP/MP– value composition of capital (C/V)value composition of capital (C/V)vv

changes with ANY change in C or Vchanges with ANY change in C or V

– organic composition of capital (C/V)organic composition of capital (C/V)oo

changes ONLY with change in LP/MPchanges ONLY with change in LP/MP

Tendency of Tendency of Rate of Profit to Fall - IIIRate of Profit to Fall - III

Tendency of Tendency of Rate of Profit to Fall - IIIRate of Profit to Fall - III

So, if (C/V)So, if (C/V)oo increases, then S/(C+V) will tend increases, then S/(C+V) will tend

to fallto fall Why?Why?

– as (C/V)as (C/V)oo increases, V goes toward zero increases, V goes toward zero

– so S(C+V) goes toward S/Cso S(C+V) goes toward S/C– but, no upper limit on Cbut, no upper limit on C– and there IS an upper limit on S, given by # and there IS an upper limit on S, given by #

workers and length/intensity of workworkers and length/intensity of work– So: S/C will tend to fallSo: S/C will tend to fall

Tendency of Tendency of Rate of Profit to Fall - IVRate of Profit to Fall - IV

Tendency of Tendency of Rate of Profit to Fall - IVRate of Profit to Fall - IV

Semantic content?Semantic content?– most have thought money rate of profit should fallmost have thought money rate of profit should fall– Sweezy: C may fall as productivity rises in sector Sweezy: C may fall as productivity rises in sector

producing MP, so direction of S/C is indeterminateproducing MP, so direction of S/C is indeterminate

– However, formally, increase in (C/V)However, formally, increase in (C/V)oo independent of independent of

change in value of C, moreover....change in value of C, moreover....– viewed socially, decrease of S/C means it as machinery viewed socially, decrease of S/C means it as machinery

is substituted for labor, it becomes harder and harder to is substituted for labor, it becomes harder and harder to extract labor from working classextract labor from working class

– Fundamental contradiction of capital, rel. surplus valueFundamental contradiction of capital, rel. surplus value

Fundamental ContradictionFundamental ContradictionFundamental ContradictionFundamental Contradiction

Tendency of business to substitute machinery Tendency of business to substitute machinery for labor, due to recalcitrance of labor results for labor, due to recalcitrance of labor results in undermining of basic structure of society: in undermining of basic structure of society: social control through imposition of worksocial control through imposition of work

Symptom/measure: rising chronic structural Symptom/measure: rising chronic structural unemploymentunemployment

E.g., late 50s as result of rapid mechanization E.g., late 50s as result of rapid mechanization in manufacturing, solved by rise of servicesin manufacturing, solved by rise of services

E.g., present: mechanization of servicesE.g., present: mechanization of services

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