,*APT] #d ,! ',NEW' ,POPULATION ,!ORY ( ,OTTO ,BAU] ,PEOPLE 3 ,AU?OR 3 ,ROSA ,LUXEMBURG ,TEXT 3 ',EV]Y SOCIETY :I* GR[S MU/ EXP& ITS PRODUCTIVE APP>ATUS EV]Y YE>4 ,?IS WILL BE A NECESSITY = ! FUTURE SOCIALI/ SOCIETY AS MU* AS IT IS = ! PRES5T CAPITALI/ SOCIETY1 OR AS IT WAS = ! SIMPLE COMMODITY-PRODUCTION & PEASANT ECONOMY ( ! PA/1 :I* PRODUC$ = ITS [N NE$4'.<#a.> ,H]E1 9 A NUT%ELL1 IS ,BAU]'S SOLUTION TO ! PROBLEM ( ACCUMULATION4 ,9 ORD] TO ACCUMULATE1 CAPITAL NE$S A /EADILY 9CREAS+ \TLET TO MAKE ! REALIZATION ( SURPLUS VALUE POSSIBLE4 ,:]E DOES ! \TLET COME FROM8 ,BAU] ANSW]S3 ! POPULATION 9 CAPITALI/ SOCIETY GR[S1 LIKE ?AT 9 ANY O!R SOCIETY1 ?US 9CREAS+ ! DEM& = COMMODITIES & GIV+ ! F\NDATION = ACCUMULATION 9 G5]AL4 ',9 CAPITALI/ SOCIETY !RE IS A NE$ = CAPITAL ACCUMULATION TO ADJU/ TO POPULATION GR[?4'.<#b.> ,FROM ?IS C5TRAL PO9T ,BAU] D$UCES ! *>ACT]I/IC MOVEM5TS ( CAPITAL & ITS =MS4 ,FIR/ IS ! /ATE ( EQUILIBRIUM BETWE5 PRODUCTION & POPULATION1 I4E4 ! M$IAN >\ND :I* ! FLUCTUATIONS TAKE PLACE4 ,BAU] ASSUMES1 = ! SAKE ( ILLU/RATION1 ?AT ! POPULATION GR[S BY #e P] C5T ANNUALLY4 ',V>IABLE CAPITAL MU/ GR[ BY #e P] C5T IF ! EQUILIBRIUM IS TO BE MA9TA9$4' ,TE*NOLOGICAL PROGRESS 9CREASES CON/ANT CAPITAL 7DEAD MEANS ( PRODUCTION7 AT ! EXP5SE ( V>IABLE CAPITAL 7WAGES = ! LABOR =CE74 ,TO /RESS ?AT FACT1 ,BAU] ASSUMES ?AT IT GR[S TWICE AS FA/1 I4E4 BY #a P] C5T YE>LY4 ,ON ?IS BASIS HE CON/RUCTS ONE ( HIS '9CONTE/ABLE' TABLES1 :I* WE ALREADY KN[ AB\T & :I* N[ ONLY 9T]E/ US = !IR ECONOMIC CONT5T4 ,9 !SE TABLES ,BAU] 5TIRELY DISREG>DS ! TOTAL SOCIAL PRODUCT4 ,HE REA*ES ! CONCLUSION41 ',! EXPANSION ( ! FIELD ( PRODUCTION1 :I* IS A PRECONDITION ( ACCUMULATION1 IS PROVID$ BY POPULATION GR[?4'.<#c.> ,! VITAL PO9T ( ?IS '/ATE ( EQUILIBRIUM' :I* ALL[S UNDI/URB$ ACCUMULATION IS CONDITIONAL ON V>IABLE CAPITAL GR[+ AT ! SAME RATE AS ! POPULATION4 ,LET US TAKE A %ORT LOOK AT ,BAU]'S BASIC LAW ( ACCUMULATION4 ,9 HIS EXAMPLE1 POPULATION GR[S AT ! RATE ( #e P] C5T P] ANNUM1 & SO V>IABLE CAPITAL MU/ ALSO GR[ BY #e P] C5T4 ,:AT DOES ?IS MEAN8 ',V>IABLE CAPITAL' IS AN AM\NT ( VALUE1 ! SUM ( WAGES PAID TO ! WORK]S1 EXPRESS$ 9 A C]TA9 AM\NT ( MONEY4 ,?IS CAN REPRES5T DIFF]5T TOTALS ( GOODS4 ,9 G5]AL1 ASSUM+ TE*NOLOGICAL PROGRESS & 9CREAS+ PRODUCTIVITY1 A RELATIVELY DECREAS+ SUM ( V>IABLE CAPITAL CORRESPONDS TO A CON/ANT AM\NT ( MEANS ( CONSUMPTION4 ,IF POPULATION GR[S BY #e P] C5T ANNUALLY1 V>IABLE CAPITAL HAS ONLY TO GR[ BY1 LET US SAY1 #d #c_/#d 1 #d #a_/#b 1 #d #a_/#d 1 #d P] C5T1 ETC41 TO PROVIDE AN EQUAL /&>D ( LIV+4 ,& ,BAU] DOES 9DE$ ASSUME G5]AL TE*NOLOGICAL PROGRESS2 TO EXPRESS ?AT1 HE PRESUPPOSES A GR[? ( CON/ANT CAPITAL :I* IS TWICE AS FA/4 ,GIV5 ?IS ASSUMPTION1 AN 9CREASE ( V>IABLE CAPITAL P>ALLEL ) ! GR[? ( POPULATION IS CONCEIVABLE ONLY 9 ONE SITUATION3 IF1 9 SPITE ( RAPID TE*NOLOGICAL PROGRESS 9 ALL BRAN*ES ( PRODUCTION - 9CREAS+ PRODUCTIVITY ( LABOR - PRICES REMA9 UN*ANG$4 ,BUT ?AT W\LD NOT ONLY BE !ORETICALLY ! FUN]AL ( ,M>X'S !ORY ( VALUE1 BUT ALSO1 9 PRACTICE1 9COMPREH5SIBLE FROM ! CAPITALI/ PO9T ( VIEW3 S9CE ! L[]+ ( PRICES IS A WEAPON 9 ! COMPETITION /RUGGLE1 A /IMULANT = 9DIVIDUAL CAPITAL TO BECOME A PIONE] ( TE*NOLOGICAL PROGRESS4 ,BUT WAIT6 ,MU/ WE ?9K ?AT MONEY-WAGES REMA9 UN*ANG$ 9 SPITE ( 9CREAS+ PRODUCTIVITY & *EAP5+ ( PROVISIONS1 AS ! WORK]S' /&>D ( LIV+ RISES ) ?IS PROGRESSION8 ,! SOCIAL RISE ( ! WORK+ CLASS IS TAK5 9TO ACC\NT 9 ?IS4 ,BUT IF ! RISE 9 ! WORK]S' /&>D ( LIV+ IS SO /RONG ?AT V>IABLE CAPITAL 7SUM ( MONEY-WAGES7 MU/ GR[ YE> AFT] YE> 9 EXACTLY ! SAME PROPORTION AS ! WORK+ POPULATION1 !N ?IS MEANS ?AT ALL ! TE*NOLOGICAL PROGRESS IS = ! B5EFIT ( ! WORK]S ALONE4 ,! CAPITALI/S C\LD NEI!R 9CREASE !IR /&>D ( LIV+ NOR ! RATE ( SURPLUS VALUE4 ,AS WE KN[1 ,BAU] DOES ASSUME A CON/ANT RATE ( SURPLUS VALUE4 ,HE CLAIMS ?AT HE ONLY ASSUMES IT '= ! SAKE ( SIMPLICITY' 444 'TO BEG9 )'1 TO HELP US 9TELLECTUAL DIMWITS GRASP ! RUNG ( HIS !ORY4 ,BUT 9 REALITY ?IS ASSUMPTION IS ! ECONOMIC F\NDATION ( ,BAU]'S !ORY1 AS WE CAN N[ SEE1 & ! 5TIRE '/ATE ( EQUILIBRIUM' IS DEP5D5T ON IT4 ,BAU] ADMITS ?IS QUITE EXPLICITLY HIMSELF3 ,\R MODEL 7TABLE ,I,V7 PRESUPPOSES ?AT 7#a7 ! WORK+ POPULATION GR[S BY #e P] C5T EA* YE>1 7#b7 V>IABLE CAPITAL GR[S AT ! SAME RATE AS ! WORK+ CLASS1 7#c7 CON/ANT CAPITAL 7I4E4 ! CO/ ( DEAD MEANS ( PRODUCTION7 GR[S FA/] ?AN V>IABLE CAPITAL TO ! DEGREE REQUIR$ BY TE*NOLOGICAL PROGRESS3 UND] !SE CONDITIONS IT IS NOT A/ONI%+ ?AT !RE >E NO DIFFICULTIES 9 ! REALIZATION ( SURPLUS VALUE4.<#d.> ,YES1 BUT !SE CONDITIONS !MSELVES >E QUITE 'A/ONI%+'4 ,= AS LONG AS WE >E NOT W&]+ >\ND 9 ?9 AIR BUT /&+ ON ! SURFACE ( ?IS CAPITALI/ E>?1 :AT 9C5TIVE DO ! CAPITALI/S HAVE TO MAKE USE ( TE*NOLOGICAL PROGRESS & TO 9VE/ EV] L>G] SUMS 9 CON/ANT CAPITAL IF ! :OLE B5EFIT IS ONLY = ! WORK+ CLASS8 ,ACCORD+ TO ,M>X1 ! CREATION ( 'RELATIVE SURPLUS VALUE'1 ! 9CREASE 9 ! RATE ( EXPLOITATION ?R\< ! *EAP5+ ( ! LABOR =CE1 IS ! ONLY OBJECTIVE REASON = ! CAPITALI/ CLASS AS A :OLE TO PROMOTE TE*NOLOGICAL PROGRESS2 IT IS ! REAL OBJECTIVE RESULT ( ! COMPETITION ( 9DIVIDUAL CAPITALS1 AIM+ UNCONSCI\SLY = EXTRA PR(IT4 ,BAU]'S A/ONI%+ ASSUMPTION IS A PURE ECONOMIC IMPOSSIBILITY AS LONG AS CAPITALISM EXI/S4 ,IF WE PROCE$ ) HIM1 ASSUM+ TE*NOLOGICAL PROGRESS1 I4E4 A RISE 9 ! PRODUCTIVITY ( LABOR1 IT CLE>LY FOLL[S ?AT V>IABLE CAPITAL1 ! SUM ( WAGES1 CANNOT POSSIBLY GR[ 'AT ! SAME RATE' AS ! POPULATION4 ,IF POPULATION GR[S AT A CON/ANT RATE1 V>IABLE CAPITAL CAN GR[ ONLY AT A /EADILY DECREAS+ RATE1 ,LET US SAY AT #d#e_/#f1 #d#d_/#e1 #d #c_/#d 1 #d #a_/#b P] C5T1 ETC4 ,& 9 REV]SE3 TO MAKE V>IABLE CAPITAL GR[ ) ! REGUL>ITY ( #e P] C5T P] ANNUM1 ! POPULATION W\LD HAVE TO GR[ AT AN 9CREAS+ RATE - LET US SAY #e #a_/#d 1 #e #a_/#b 1 #e #c_/#d 1 #f P] C5T1 ETC4 ,BAU]'S LAW ( 'EQUILIBRIUM' COLLAPSES LIKE A H\SE ( C>DS4 ,HIS !ORY ( 'EQUILIBRIUM' IS CON/RUCT$ ON ! DILEMMA ( TWO ECONOMIC ABSURDITIES1 BO? CONTRADICT+ ! ESS5CE ( CAPITALISM & ! PURPOSE ( ACCUMULATION - EI!R TE*NOLOGICAL PROGRESS DOES NOT L[] COMMODITY PRICES AT ALL1 OR ! L[] PRICES >E ONLY = ! B5EFIT1 NOT ( ACCUMULATION1 BUT ( ! WORK]S6 ,LET US TAKE A LOOK AT REALITY4 ,BAU]'S ASSUMPTION ( A #e P] C5T GR[? RATE 9 ! POPULATION IS1 ( C\RSE1 ONLY !ORETICAL4 ,HE C\LD JU/ AS WELL HAVE *OS5 #b OR #a P] C5T4 ,BUT REAL POPULATION GR[? IS BY NO MEANS IMMAT]IAL1 S9CE1 ACCORD+ TO ,BAU]1 CAPITALI/ DEVELOPM5T MU/ ADJU/ TO IT4 ,ON ?IS BASIC PR9CIPLE RE/S HIS 5TIRE !ORY ( ACCUMULATION4 ,& :AT IS ! REAL POPULATION GR[?1 = 9/ANCE1 9 ,G]MANY8 ,GR[? P] ANNUM1 ACCORD+ TO (FICIAL /ATI/ICS1 WAS 4#i#f P] C5T BETWE5 #ahaf & #a#h#f#d1 & #a4#i P] C5T BETWE5 #ahfd & #a#i#a4 ,?US1 9 REALITY1 ! RATE ROSE 9 ALMO/ A C5TURY FROM 4#i#f TO #a4#i P] C5T - A RISE ( 4#a#c P] C5T4 ,IF WE LOOK AT ! P]IOD ( L>GE-SCALE CAPITALI/ DEVELOPM5T 9 ,G]MANY1 ! ANNUAL 9CREASE FROM #ahga TO #ahh WAS #a4#h P] C5T2 4#h#i P] C5T FROM #ahh TO #a#h#i2 #a4#c#a P] C5T FROM #ahi TO #a#i2 & #a4#d#a P] C5T FROM #ai TO #a#i#a4 ,H]E1 TOO1 !RE IS AN 9CREASE ( A ?IRD )9 =TY YE>S4 ,H[ DOES ?AT CORRESPOND TO ! RATE ( GR[? ( ,G]MAN CAPITALISM DUR+ ! LA/ QU>T] ( ! C5TURY8 ,IF WE LOOK AT O!R CAPITALI/ C\NTRIES WE SEE EV5 BETT] EXAMPLES4 ,ACCORD+ TO ! LATE/ C5SUS FIGURES ! ANNUAL POPULATION GR[? IS3 P] C5T ,AU/RO-,HUNG>Y 4#h#g ,EUROPEAN ,RUSSIA #a4#c#g ,ITALY 4#f#c ,RUMANIA #a4#e ,S]BIA #a4#f ,BELGIUM #a4#c ,NE!RL&S #a4#c#h ,5GL&1 ,SCOTL& & ,IREL& 4#h#g ,U,S,A #a4#i ,FRANCE 4#a#h ,ONE SEES ?AT ! ABSOLUTE FIGURE ( POPULATION GR[?1 AS WELL AS ! COMP>ISON ( DIFF]5T C\NTRIES1 GIVES WOND]FUL FIGURES = ! /&PO9T ( ! ALLEG$ BASIS ( CAPITAL ACCUMULATION4 ,TO F9D ,BAU]'S HYPO!TICAL #e P] C5T1 JU/ = FUN1 WE W\LD HAVE TO EMIGRATE TO W>M] CLIMATES1 SOME:]E LIKE ,NIG]IA OR ! ,SUNDA >*IPELAGO4 ,9DE$1 ! ANNUAL 9CREASE ( POPULATION 9 ! FOLL[+ C\NTRIES IS3 P] C5T ,URUGUAY #c4#g#g ,BRITI% ,MALAYA #d4#a#h ,S\? ,NIG]IA #e4#e#e ,NOR? ,BORNEO #f4#c#f ,HONG ,KONG #g4#h#d ,:AT A PITY ?AT ?OSE 9VIT+ LUXURI\S PA/URES ONLY EXI/ :]E !RE IS AS YET NO CAPITALI/ PRODUCTION1 & !SE P]SPECTIVES %R9K TO A B>R5 FIELD AS SOON AS WE COME CLOS] TO ! FAMILY SEATS ( CAPITALISM6 ,LET US TAKE A CLOS] LOOK AT ! MATT]4 ,BAU] SAYS ?AT CAPITAL ACCUMULATION IS DEP5D5T ON POPULATION GR[?4 ,:AT AB\T ,FRANCE1 = 9/ANCE8 ,!RE POPULATION GR[? HAS /EADILY DECREAS$2 IT IS N[ ONLY 4#a#h P] C5T4 ,! POPULATION GR[? IS SL[LY COM+ TO A /&/ILL1 P]HAPS EV5 AN ABSOLUTE DECREASE IS AHEAD4 ,9 SPITE ( ?AT1 CAPITAL 9 ,FRANCE HAPPILY C>RIES ON ACCUMULAT+3 SO WELL1 ?AT ,FRANCE CAN PROVIDE ! :OLE WORLD ) ITS CAPITAL RES]VES4 ,9 ,S]BIA POPULATION 9CREASES TWICE AS FA/ AS 9 ,5GL&2 BUT1 AS IS WELL KN[N1 CAPITAL ACCUMULATION IS MU* /RONG] 9 ,5GL& ?AN 9 ,S]BIA4 ,H[ DOES ?AT MAKE S5SE8 ,! ANSW] TO !SE D\BTS ONLY PO9TS \T \R [N OBTUS5ESS3 ,BAU]'S !ORY IS NOT RELAT$ TO 9DIVIDUAL C\NTRIES & !IR POPULATIONS4 ,IT LOOKS AT POPULATION 9 G5]AL4 ,! GR[? ( MANK9D 9 G5]AL IS IMPORTANT4 ,EXCELL5T4 ,BUT !N !RE >E EV5 /RANG] RIDDLES4 ,IT IS OBVI\S ?AT ! ANNUAL 9CREASE ( 'MANK9D' IS RELEVANT = CAPITALISM ONLY TO ! EXT5T ?AT MANK9D CONSUMES CAPITALI/ COMMODITIES4 ,!RE IS NO D\BT ?AT ! 5C\RAG+ GR[? ( POPULATION 9 ,NOR? ,BORNEO OR ,S\? ,NIG]IA IS ( LITTLE RELEVANCE TO ! ACCUMULATION ( CAPITAL 9 ! NE> FUTURE4 ,IS ! 9CREASE 9 ! NUMB] ( CU/OM]S = CAPITALISM SOMEH[ CONNECT$ TO ! NATURAL GR[? ( POPULATION8 ,ONE ?+ IS CLE>3 IF CAPITAL W]E TO WAIT = ! 9CREASE ( ITS CONSUM]S ?R\< NATURAL REPRODUCTION1 IT W\LD /ILL BE1 AT BE/1 9 ! SWADDL+ CLO!S ( ITS MANUFACTUR+ P]IOD4 ,9 FACT1 CAPITAL DOES NOT DREAM ( WAIT+4 ,RA!R1 IT USES O!R ABBREVIAT$ ME?ODS TO EXP& ! BASIS ( ACCUMULATION4 ,MAK+ USE ( ALL POLITICAL MEANS IT ATTACKS 7#a7 B>T] ECONOMY1 7#b7 SIMPLE COMMODITY-PRODUC+ ECONOMY4 ,GRADUALLY DE/ROY+ BO?1 IT F9DS MORE & MORE CONSUM]S 9 ALL P>TS ( ! WORLD4 ,BUT !SE ME?ODS 9T]F]E DRA/ICALLY ) POPULATION GR[? 9 ! RELEVANT C\NTRIES & PEOPLES4 ,! NUMB] ( CONSUM]S CAN GR[ :ILE ! POPULATION DECREASES4 ,9 FACT1 ! CAPITALI/ ME?OD ( PRODUC+ A WORLD M>KET GOES H&-9-H& ) DECIMATION & EV5 EXT]M9ATION ( :OLE TRIBES4 ,?IS PROCESS1 /ILL GO+ ON1 HAS ACCOMPANI$ CAPITALI/ DEVELOPM5T S9CE ! DISCOV]Y ( ,AM]ICA3 ! ,SPANI% 9 ,MEXICO & ,P]U 9 ! SIXTE5? C5TURY1 ! ,5GLI% 9 ,NOR? ,AM]ICA 9 ! SEV5TE5?1 9 ,AU/RALIA 9 ! EI*IPELAGO1 ,FR5* 9 ,NOR? ,AFRICA1 ,5GLI% 9 ,9DIA 9 ! N9ETE5? C5TURY1 ,G]MANS 9 ,S\? ,WE/ ,AFRICA 9 ! TW5TIE? C5TURY4 ,! W>S ( ,EUROPEAN CAPITAL TO 'OP5 UP' ,*9A HAVE ALSO L$ TO P]IODIC MASS SLAUTIAL EXT]M9ATION ( ! POPULATIONS1 IT IS ACCOMPANI$ BY DIFF]5T V>IATIONS 9 ! POPULATION /RUCTURE 9 ?OSE C\NTRIES :]E CAPITALI/ PRODUCTION IS ALREADY ROOT$4 ,9 ! TWO CON/ITU5TS ( ! LATT] 7BIR? RATE & DEA? RATE7 WE SEE TWO OPPOS$ MOVEM5TS 9 ALL CAPITALI/ C\NTRIES4 ,! BIR? RATE IS G5]ALLY DECREAS+4 ,?US !SE W]E ! FIGURES = ! BIR? RATE 9 ,G]MANY P] #a1 9HABITANTS3 #a#h#g#a-#h1 #d4#g2 #a#h#h#a-#i1 #c#h4#b2 #a#h#i#a-#a#i1 #c#g4#c2 #a#i#a-#a1 #c#c4#i2 #a#i#a#a1 #b#i4#e2 #a#i#a#b1 #b#i4#a4 ,! SAME T5D5CY IS CLE> :5 ONE COMP>ES ! HIIA1 #d4#f2 9 ,RUMANIA1 #d#c4#d2 9 ,RUSSIA1 #d#f4#h4 ,ALL /ATI/ICIANS1 SOCIOLOGI/S & DOCTORS ATTRIBUTE ?IS PH5OM5ON TO ! EFFECTS ( BIG CITY LIFE1 FACTORIES1 9SECURITY ( EXI/5CE1 CULTURAL IMPROVEM5TS1 ETC4 - 9 %ORT TO ! EFFECTS ( CAPITALI/ CULTURE4 ,AT ! SAME TIME1 MOD]N DEVELOPM5TS 9 SCI5CE & TE*NOLOGY & CULTURAL IMPROVEM5TS SUCCESSFULLY COMBAT ! DEA? RATE4 ,?US 9 ,G]MANY P] #a1 9HABITANTS1 P] ANNUM1 !RE DI$3 #a#h#g#a-#h1 #b#h4#h2 #a#h#h#a-#i1 #b#f4#e2 #a#h#i#a-#a#i1 #b#c4#e2 #a#i#a-#a1 #a#i4#g2 #a#i#a#a1 #a#h4#b2 #a#i#a#b1 #a#f4#d4 ,COMP>+ HID C\NTRIES ! SAME PICTURE APPE>S3 DEA?S P] #a1 9HABITANTS 7#a#i#a#a-#a#b7 9 ,FRANCE1 #a#g4#e2 9 ,G]MANY1 #a#e4#f2 9 ,BELGIUM1 #a#d4#h2 ,5GL&1 #a#c4#c2 ,RUSSIA1 #b#i4#h2 ,BOSNIA & ,H]ZEGOV9A1 #b#f4#a2 ,RUMANIA1 #b#b4#i2 ,PORTUGAL1 #b#b4#e2 ,BULG>IA1 #b#a4#h4 ,DEP5D+ ON :I* ( ! TWO FACTORS BECOMES /RONG]1 POPULATION GR[S EI!R FA/] OR SL[]4 ,BUT1 9 ANY CASE1 IT IS ! DEVELOPM5T ( CAPITALISM ) ITS ECONOMIC1 SOCIAL1 PHYSICAL & 9TELLECTUAL EPIPH5OM5A1 IT IS CAPITAL ACCUMULATION1 :I* 9FLU5CES ! GR[? ( POPULATION & NOT ! O!R WAY R\ND4 ,9 G5]AL1 ! 9FLU5CE ( CAPITALI/ DEVELOPM5T LEADS1 SOON] OR LAT]1 TO A SL[+ D[N ( ! POPULATION GR[?4 ,! EXAMPLES ( ,HONG ,KONG & ,BORNEO1 CONTRA/$ ) ,G]MANY & ,5GL&1 & ( ,S]BIA & ,RUMANIA ) ,FRANCE & ,ITALY1 >E EXPLICIT 5\<4 ,AFT] ALL ?IS1 ! CONCLUSION IS AT H&4 ,BAU]'S !ORY /&S ! ACTUAL RELATION%IP ON ITS HEAD4 ,BY SUBORD9AT+ ! ACCUMULATION ( CAPITAL TO POPULATION GR[? HE NEGATES ! COMMONLY KN[N FACT ?AT CAPITAL %APES POPULATION3 AT ONE PO9T IT EXT]M9ATES IT 5 MASSE1 SOON IT SPE$S UP GR[?1 SOON IT SL[S IT D[N - ) ! G5]AL RESULT3 ! FA/] ! ACCUMULATION ! SL[] ?LE GR[? ( POPULATION4 ,A NICE QUID PRO QUO ?IS = AN HI/ORICAL MAT]IALI/1 =GETT+ TO LOOK AT REALITY & TO ASK HIMSELF3 YES1 CAPITAL ACCUMULATION IS DEP5D5T ON POPULATION GR[?1 BUT :AT DOES POPULATION GR[? ITSELF DEP5D ON8 ,FRI$RI* ,ALB]T ,LANGE.<#e.> SAID 9 HIS ,HI/ORY ( ,MAT]IALISM3 ,WE /ILL HAVE !SE DAYS SO-CALL$ PHILOSOPH]S 9 ,G]MANY1 :O WRITE1 9 A SORT ( METAPHYSICAL CLUMS9ESS1 GREAT TREATISES ON ! ORIG9S ( IDEAS - P]HAPS EV5 CLAIM+ ACCURATE OBS]VATION BY MEANS ( ! 9N] S5SE - )\T EV5 CONSID]+ ! FACT ?AT !RE >E NURS]IES1 P]HAPS EV5 9 !IR [N HOMES1 :]E ONE CAN OBS]VE ! SYMPTOMS ( ! ORIG9 ( IDEAS ) ONE'S [N EYES & E>S4 ,I DO NOT KN[ :E!R !RE >E /ILL SU* 'PHILOSOPH]S' 9 ,G]MANY TODAY4 ,BUT ! SPECIES ( 'METAPHYSICAL CLUMS9ESS' :I* TRIES TO SOLVE SOCIAL PROBLEMS ?R\< EXACT S*EMATIC CALCULATIONS BY US+ ! '9N] S5SE' & =GETT+ EYES & E>S1 ! WORLD & ! NURS]Y1 SEEMS TO HAVE F\ND ! COMPET5T 'HEIRS ( CLASSICAL ,G]MAN PHILOSOPHY' AMONG ! 'EXP]TS' ( (FICIAL ,M>XISM4 ,BUT ?+S GET EV5 MORE BEAUTIFUL4 ,UP TILL N[ WE HAVE BE5 CONSID]+ ! ECONOMIC CONDITIONS ( POPULATION GR[? BECAUSE ,BAU] APPE>S TO BE BAS+ HIS !ORY ( ACCUMULATION ON ?IS4 ,9 REALITY1 HIS !ORY HAS A DIFF]5T BASIS4 ,:5 HE TALKS AB\T 'POPULATION' & 'POPULATION GR[?' HE REALLY REF]S TO ! CLASS ( WAGE-WORK]S 9 CAPITALI/ SOCIETY1 & TO ?IS ALONE4 ,! FOLL[+ QUOTATIONS >E SUFFICI5T TO PROVE ?IS3 ',WE ASSUME ?AT ! POPULATION GR[S BY #e P] C5T EA* YE>4 ,IF ! BALANCE 7BETWE5 PRODUCTION & SOCIAL REQUIREM5TS7 IS TO BE MA9TA9$1 !N ! V>IABLE CAPITAL 7I4E4 ! AM\NT ( WAGES PAID7 MU/ ALSO GR[ BY #e P] C5T EA* YE>4'.<#f.> ,IF ! CONSUMPTION BY ! POPULATION1 ON :I* PRODUCTION IS CALCULAT$1 IS EQUAL TO ! V>IABLE CAPITAL1 I4E4 ! AM\NT ( WAGES PAID1 !N ?IS 'POPULATION' CAN ONLY REF] TO ! WORK]S4 ,BUT ,BAU] HIMSELF =MULATES ?IS QUITE EXPLICITLY3 ',! ACQUISITION ( PROVISIONS = POPULATION GR[? IS EXPRESS$ ?R\< ! 9CREASE 9 V>IABLE CAPITAL4'.<#g.> ,HE /ATES ?IS EV5 MORE CATEGORICALLY 9 ! FOLL[+ PASSAGE1 :I* ,I HAVE ALREADY CIT$3 ,\R MODEL ASSUMES1 7#a7 ?AT ! WORK+ POPULATION GR[S BY #e P] C5T YE>LY1 7#b7 V>IABLE CAPITAL GR[S AT ! SAME RATE AS ! WORK+ CLASS1 7#c7 CON/ANT CAPITAL 7I4E4 ! CO/ ( DEAD MEANS ( PRODUCTION7 GR[S FA/] ?AN V>IABLE CAPITAL TO ! DEGREE REQUIR$ BY TE*NOLOGICAL PROGRESS4 ,UND] !SE CONDITIONS IT IS NOT A/ONI%+ ?AT !RE >E DIFFICULTIES 9 ! REALIZATION ( SURPLUS VALUE4.<#h.> ,NOTA B5E1 ACCORD+ TO ,BAU]'S ASSUMPTION !RE >E ONLY TWO CLASSES 9 SOCIETY3 WORK]S & CAPITALI/S4 ',= 9 A SOCIETY'1 HE SAYS A FEW L9ES LAT]1 ':I* CONSI/S SOLELY ( CAPITALI/S & WORK]S1 !RE IS NO 9COME = ! UNEMPLOY$ PROLET>IAN O!R ?AN E>N$ 9COME1'.<#i.> ETC4 ,?IS ASSUMPTION IS BY NO MEANS 9CID5TAL2 ON ! CONTR>Y1 IT IS HIE ONLY TWO SOCIAL CLASSES 9 ,BAU]'S !ORY3 CAPITALI/S & PROLET>IANS4 ,BUT ! GR[? ( CAPITAL ACCUMULATION IS RELAT$ ONLY TO ! CLASS ( PROLET>IANS4 ,FIR/ ,BAU] R$UCES ! POPULATION SIMPLY TO WORK]S & CAPITALI/S 7) HIS EXPLICIT ASSUMPTION71 !N HE SIL5TLY R$UCES IT 7) HIS OP]ATIONS7 TO WORK]S4 ,!SE >E ! 'POPULATION' TO :OSE NE$S CAPITAL ADAPTS4 ,?US1 :5 ,BAU] TAKES AN ANNUAL 'POPULATION GR[?' ( #e P] C5T AS A BASIS = HIS S*EMATIC EXPOSITION1 ?IS MEANS ?AT ONLY ! POPULATION ( WORK]S GR[S ANNUALLY BY #e P] C5T4 ,OR P]HAPS WE %\LD SEE ?IS 9CREASE 9 ! PROLET>IAN CLASS AS ONLY A P>T ( ! NORMAL REGUL> 9CREASE ( #e P] C5T ANNUALLY 9 ! TOTAL POPULATION8 ,BUT ?AT W\LD BE AN 5TIRELY NEW DISCOV]Y1 & PR(ESSIONAL /ATI/ICIANS HAVE LONG S9CE PROV$ ?AT 9 PRES5T-DAY SOCIETY EA* CLASS FOLL[S ITS [N POPULATION LAWS4 ,BAU] IS NOT1 9 PO9T ( FACT1 ?9K+ ( A REGUL> 9CREASE 9 ! TOTAL POPULATION4 ,AT ANY RATE1 ?IS IS NOT VALID = HIS CAPITALI/S :OSE ANNUAL GR[? RATE1 AS CAN BE EASILY PROV51 IS NO?+ LIKE #e P] C5T4 ,ON P4#h#c#e ,BAU] GIVES ! FOLL[+ FIGURES = ! CONSUMPTION /OCK 9 ! F\R CONSECUTIVE YE>S3 #g#e12 #g#g1#g#e2 #h1#e#c#i2 & #h#c1#c#g#d4 ,IF ,BAU] ASSUMES ?AT ! WORK]S' WAGES RISE ) !SE NUMB]S1 !N WE >E JU/IFI$ 9 ASSUM+ ?AT ! CAPITALI/S' /&>D ( LIV+ IS AT LEA/ F>+ NO WORSE ?AN ! WORK]S'2 & ?AT !IR 9COME = CONSUMPTION IS KEEP+ PACE ) !IR GR[?4 ,IF ?AT IS SO1 ! FOLL[+ FIGURES1 FOLL[ 9 ,BAU]'S MODEL FROM ! CAPITALI/S' CONSUMPTION1 = ! RESULT+ ANNUAL 9CREASE 9 ! CAPITALI/ CLASS 9 ! CORRESPOND+ F\R YE>S2 #e P] C5T 9 ! SECOND YE>2 #c4#f P] C5T 9 ! ?IRD2 #c4#e P] C5T 9 ! F\R?4 ,IF ?AT W]E TO CONT9UE1 ,BAU]'S CAPITALI/S W\LD SOON />T TO DIE \T1 :I* W\LD SOLVE ! PROBLEM ( ACCUMULATION 9 ! MO/ PECULI> WAY4 ,BUT WE >E NOT CONC]N$ H]E ) ! 9DIVIDUAL FATES ( ,BAU]'S CAPITALI/S2 ! PO9T H]E IS TO E/ABLI% ?AT ,BAU] ALWAYS MEANS GR[? ( ! WORK+ CLASS :5 HE TALKS AB\T POPULATION GR[? AS ! BASIS ( ACCUMULATION4 ,BAU] F9ALLY SPELLS IT \T HIMSELF1 BY EXPLA9+ ON P4#h#f#i3 ',IT 7! RATE ( ACCUMULATION7 MU/ CONT9UE TO 9CREASE 9 ?IS WAY UNTIL ! EQUILIBRIUM BETWE5 ! GR[? ( V>IABLE CAPITAL & POPULATION GR[? HAS BE5 RE/OR$4' ,) EQUAL CL>ITY HE LAYS D[N ! G5]AL RULE ONCE AGA9 ON P4#h#g#a3 ,9 CAPITALI/ SOCIETY ! ACCUMULATION ( CAPITAL T5DS TO ADJU/ TO POPULATION GR[?4 ,?IS ADJU/M5T IS COMPLETE AS SOON AS V>IABLE CAPITAL 7I4E4 ! AM\NT ( WAGES7 9CREASES AT ! SAME RATE AS ! POPULATION ( WORK]S1 BUT CON/ANT CAPITAL GR[S FA/]1 AT A RATE REQUIR$ BY ! DEVELOPM5T ( ! PRODUCTIVE =CES4 ,BAU] PUTS IT AT ITS SIMPLE/ AT ! 5D ( HIS >TICLE1 :]E HE SUMM>IZES ! MA9 PO9TS3 ,TO BEG9 ) 79 AN ISOLAT$ CAPITALI/ SOCIETY1 LIKE ?AT ON :I* HIS MODEL IS BAS$7 ACCUMULATION IS LIMIT$ BY ! 9CREASE ( ! WORK+ POPULATION4 ,S9CE - ) A GIV5 ORGANIC COMPOSITION ( CAPITAL - ! AM\NT ( ACCUMULATION IS DET]M9$ BY ! 9CREASE 9 ! NUMB] ( AVAILABLE WORK]S1 ETC4.<#a.> ,?US ! :OLE ?+ IS BRILLIANTLY CLE>3 UND] ! PRETEXT ( ! ADJU/M5T ( CAPITAL ACCUMULATION TO POPULATION GR[?1 ,BAU] MAKES CAPITAL DEP5D SOLELY ON ! WORK+ CLASS & ITS NATURAL GR[?4 ,WE SAY NATURAL GR[? EXPRESSLY BECAUSE 9 ,BAU]'S SOCIETY1 :I* KN[S NO MIDDLE CLASSES BUT ONLY CAPITALI/S & PROLET>IANS1 ! PROLET>IAT IS B>R$ FROM RECRUIT+ FROM ! PETTY-B\RGEOIS & PEASANT /RATA & CAN ?US ONLY 9CREASE BY NATURAL REPRODUCTION4 ,BAU] MAKES ?IS V]Y ADJU/M5T TO PROLET>IAN POPULATION 9TO ! PIVOT ( ! CAPITALI/ BUS9ESS CYCLE4 ,WE MU/ EXAM9E HIS !ORY FROM ?IS PO9T4 ,WE HAVE SE5 ?AT ! EQUILIBRIUM BETWE5 SOCIAL PRODUCTION & CONSUMPTION IS REA*$ :5 V>IABLE CAPITAL1 I4E4 ?AT P>T ( CAPITAL :I* IS SET ASIDE = WAGES1 GR[S AS FA/ AS ! POPULATION4 ,H[EV]1 ! ME*ANICS ( CAPITALI/ PRODUCTION >E CONT9UALLY TRY+ TO UPSET ?IS EQUILIBRIUM1 FIR/ D[NW>D - TO 'UND]-ACCUMULATION' - !N UPW>DS - TO 'OV]-ACCUMULATION'4 ,LET US />T BY CONSID]+ ! FIR/ MOVEM5T ( ! SW+4 ,IF ! FIR/ 'RATE ( ACCUMULATION' IS TOO WEAK1 SAYS ,BAU]1 I4E4 IF ! CAPITALI/S DO NOT PUT ASIDE 5\< NEW CAPITAL TO BE US$ 9 PRODUCTION1 ! GR[? ( CON/ANT CAPITAL LAGS BEH9D ?AT ( ! NUMB] LOOK+ = WORK4 ',WE CAN CALL ! /ATE :I* !N APPE>S ! /ATE ( UND]-ACCUMULATION4'.<#a#a.> ,BAU] !N DESCRIBES ?IS /ATE 9 MORE DETAIL4 ,! FIR/ EFFECT ( UND]-ACCUMULATION IS ! =MATION ( AN 9DU/RIAL RES]VE >MY4 ,A SECTION ( ! 9CREAS$ POPULATION IS \T ( WORK4 ,! UNEMPLOY$ PROLET>IANS EX]T PRESSURE ON ! WAGES ( ! EMPLOY$1 WAGES S9K1 ! RATE ( SURPLUS VALUE RISES4 ,= 9 A SOCIETY CONSI/+ SOLELY ( CAPITALI/S & WORK]S !RE IS NO O!R 9COME = ! UNEMPLOY$ PROLET>IANS BUT WAGE 9COME2 WAGES MU/ S9K & ! RATE ( SURPLUS VALUE MU/ RISE UNTIL ! 5TIRE WORK+ CLASS F9DS WORK DESPITE ! RELATIVELY R$UC$ V>IABLE CAPITAL4 ,! *ANGE :I* OCCURS BECAUSE ( ?IS 9 ! DI/RIBUTION ( ! PRODUCT IS BR\GE V>IABLE CAPITAL GR[S TOO4' ,IT WILL CONT9UE TO GR[ LIKE ?IS 'UNTIL ! EQUILIBRIUM BETWE5 ! GR[? ( V>IABLE CAPITAL & POPULATION GR[? HAS BE5 RE/OR$'4.<#a#b.> ,9 ?IS WAY WE >E L$ \T ( UND]-ACCUMULATION & BACK TO EQUILIBRIUM4 ,WE HAVE DESCRIB$ H]E ONE HALF ( ! P5DULUM MOVEM5T ( CAPITAL2 LET US TAKE A LITTLE MORE TIME OV] ?IS1 ! FIR/ ACT ( ! P]=MANCE4 ,! /ATE ( EQUILIBRIUM MEANS - LET US REM9D \RSELVES ONCE AGA9 - ?AT ! DEM& = LABOR & ! GR[? ( ! PROLET>IAN POPULATION BALANCE EA* O!R2 ?US ! 5TIRE WORK+ CLASS F9DS EMPLOYM5T = ITS NATURAL 9CREASE4 ,PRODUCTION IS !N ?R[N \T ( ?IS EQUILIBRIUM1 ! DEM& = WORK LAGS BEH9D ! GR[? ( ! PROLET>IAT4 ,:AT ?R[S IT \T ( EQUILIBRIUM8 ,:AT MAKES ! P5DULUM MOVE PA/ ! C5T]-PO9T ( BALANCE = ! FIR/ TIME8 ,M]E MORTALS F9D IT SOME:AT DIFFICULT TO DISCOV] ?IS FROM ,BAU]'S LE>N$ GIBB]I%4 ,=TUNATELY1 HE COMES TO \R AID ) SOME:AT CLE>] LANGUAGE ON ! NEXT PAGE1 :]E HE SAYS3 ',! PROGRESS T[>DS ! HI<] ORGANIC COMPOSITION ( CAPITAL ALWAYS BR+S AB\T UND]ACCUMULATION4'.<#a#c.> ,AT LEA/ ?AT IS CLE> & TO ! PO9T4 ,TE*NOLOGICAL PROGRESS1 :I* SUPPLANTS LIV+ LABOR P[] BY MA*9ES &1 !RE=E1 P]IODICALLY SL[S D[N ! DEM& = WORK]S1 CREATES AN 9DU/RIAL RES]VE >MY1 L[]S WAGES2 9 %ORT1 IT BR+S AB\T A /ATE ( 'UND]-ACCUMULATION'4 ,LET US CONFRONT ,BAU] ) ,M>X4 ,9 A /ATE ( UND]-ACCUMULATION1 SAYS ,BAU]1 '! VALUE ( LABOR FALLS'1 & 9 ?IS WAY 'RELATIVE SURPLUS VALUE' IS =M$1 S]V+ AS A NEW FUND = ACCUMULATION4 ,IF ! USE ( MA*9ES MAKES A PORTION ( ! 9CREAS$ POPULATION UNEMPLOY$' & 'WAGES FALL' UND] ! PRESSURE ( !SE UNEMPLOY$1 ?AT /ILL DOES NOT MEAN ?AT '! VALUE ( LABOR' S9KS2 IT DOES MEAN ?AT ! PRICE ( ! COMMODITY LABOR 7! MONEY-WAGE7 FALLS BEL[ ITS VALUE 7I4E4 BEL[ ! /&>D ( LIV+ PREVI\SLY ATTA9$ BY ! WORK]S7 AS A RESULT ( EXCESS SUPPLY4 ,ACCORD+ TO ,M>X1 H[EV]1 RELATIVE SURPLUS VALUE DOES NOT DEVELOP ?R\< WAGES FALL+ BEL[ ! VALUE ( LABOR BECAUSE ( A DECREAS$ DEM& = WORK]S2 ON ! CONTR>Y - & ,M>X REPEATS ?IS TIME & TIME AGA9 9 ! FIR/ VOLUME ( ,CAPITAL - IT DEVELOPS UND] ! EXPLICIT CONDITION ?AT ! PRICE ( LABOR1 I4E4 ! WAGE1 IS EQUAL TO ITS VALUE2 9 O!R WORDS1 ?AT DEM& & SUPPLY ( LABOR >E 9 EQUILIBRIUM4 ,ACCORD+ TO ,M>X1 IT >ISES UND] ?IS CONDITION AS A RESULT ( A *EAP5+ 9 ! CO/ ( MA9TA9+ LABOR1 I4E4 AS A RESULT ( ! V]Y FACTOR :I* ,BAU] OMITT$ :5 HE EXPLA9$1 AS WE HAVE SE51 ?AT IT WAS ESS5TIAL TO AN 'EQUILIBRIUM' ?AT 'V>IABLE CAPITAL GR[S AS FA/ AS ! WORK+ POPULATION'4 ,TO PUT IT SIMPLY3 UND] ! PRETEXT ( 'RELATIVE SURPLUS VALUE' ,BAU] 9 FACT SIMPLY D]IVES ! =MATION ( NEW CAPITAL1 ) :I* HE 9T5DS TO PROVIDE = FUTURE ACCUMULATION1 FROM ! DEPRESSION ( WAGES :I* IS =C$ ON ! WORK]S BY A D[NW>D SW+ 9 ! CAPITALI/ P5DULUM4 ,:AT SORT ( A REM>KABLE ECONOMIC LAW = ! MOVEM5T ( WAGES IS IT1 ?AT !Y MU/ 'CONT9UALLY FALL' 'UNTIL ! 5TIRE WORK+ CLASS IS EMPLOY$'8 ,WE >E N[ EXP]I5C+ A CURI\S PH5OM5ON3 ?AT ! L[] ! WAGES FALL ! HI<] ! LEVEL ( EMPLOYM5T RISES4 ,:5 WAGES REA* !IR L[E/ PO9T ! 5TIRE RES]VE >MY WILL BE ABSORB$6 ,9 REAL LIFE ! NORMAL C\RSE ( EV5TS IS QUITE ! OPPOSITE2 A FALL 9 WAGES CORRESPONDS ) GR[+ UNEMPLOYM5T1 A RISE ) 9CREAS+ EMPLOYM5T4 ,! 9DU/RIAL RES]VE >MY IS USUALLY AT ITS L>GE/ :5 WAGES REA* !IR L[E/ LEVEL1 & IT IS MORE OR LESS ABSORB$ :5 WAGES REA* !IR HIE MORE /RANGE ?+S TO COME 9 ,BAU]'S MODEL4 ,CAPITALI/ PRODUCTION LIFTS ITSELF \T ( ! VALLEY ( DEA? ( UND]-ACCUMULATION ) A ME?OD :I* IS AS SIMPLE AS IT IS ABRUPT3 :5 WAGES >E L[E/1 ! CAPITALI/ CAN PUT ASIDE NEW E>N+S 7:AT ,BAU]1 SLIE NOT ON DRY L&1 BUT ADRIFT 9 ,BAU]'S 'SOCIETY'4 ,!SE DAYS1 CAPITAL W\LD HAVE TO SCRAPE UP ALL ITS LITTLE SAV+S FROM A G5]AL L[]+ ( WAGES BE=E IT D>$ TO />T NEW 9VE/M5TS & 5T]PRISES6 ,IT MU/ WAIT = WAGES TO S9K TO !IR L[E/ LEVEL 9 ORD] TO GET NEW 9VE/M5T CAPITAL TO EXP& PRODUCTION6 ,9 ,BAU]'S DREAML& SPECULATIONS CAPITALISM HAS REA*$ ! ULTIMATE LEVEL ( ITS DEVELOPM5T4 ,ALL 9T]M$IATE /RATA HAVE BE5 ABSORB$1 ONLY CAPITALI/S & PROLET>IANS >E LEFT4 ,NONE!LESS1 9 ?IS SOCIETY !RE >E NO CAPITAL RES]VES2 IT /ILL LIVES FROM H& TO M\?1 AS 9 ! 'GOOD OLD DAYS ( ,DR ,AIK9' 9 SIXTE5?-C5TURY ,5GL&4 ,9 ?AT SOCIETY !RE >E OBVI\SLY AS YET NO BANKS1 :I* H]E ON E>? />T$ ACCUMULAT+ HUGE CAPITAL RES]VES LONG AGO1 JU/ WAIT+ = OPPORTUNITIES TO 9VE/ AT ALL WAGE LEVELS4 ,! FEV]I% ACCUMULATION ON ?IS HIVE/ ( WORLD W> 9TO !IR B>NS ( EASY PR(IT4 ,?IS IS ! MO/ DRAMATIC SATIRE ON ! ANEMIC CAPITAL ( ,BAU]'S FANTASY1 :I* RELIES ON A P]IODIC G5]AL DEPRESSION ( ! LABOR =CE TO ITS L[E/ LEVEL 9 ORD] TO PLUCK UP C\RAGE = ITS ADV5TUR\S ACCUMULATION4 ,BAU] REPEATS HIMSELF :5 DESCRIB+ ! 'RE/ORATION ( EQUILIBRIUM'3 ,UND] ! PRESSURE ( ! 9DU/RIAL RES]VE >MY1 ! RATE ( SURPLUS VALUE1 & ) IT ! RATE ( SOCIAL ACCUMULATION1 WILL RISE UNTIL IT IS L>GE 5\< TO 9CREASE V>IABLE CAPITAL AT ! SAME RATE AS ! WORK+ POPULATION1 9 SPITE ( 9CREAS+ ORGANIC COMPOSITION4 ,AS SOON AS ?AT PO9T IS REA*$1 ! 9DU/RIAL RES]VE >MY IS ABSORB$ 7NOTA B5E3 = ! SECOND TIME1 IT WAS ABSORB$ ONCE BE=E1 :5 WAGES W]E AT !IR L[E/1 I4E4 9 ! MO/ SEV]E 'UND]-ACCUMULATION'1 - ,R4,L47 & ! EQUILIBRIUM BETWE5 ACCUMULATION & POPULATION GR[? IS RE/OR$4.<#a#d.> ,! SECOND SW+ ( ! P5DULUM N[ FOLL[S ?IS RE/OR$ '/ATE ( EQUILIBRIUM' - UPW>DS1 TO 'OV]-ACCUMULATION'4 ,BAU] DESCRIBES ?IS PROCESS V]Y SIMPLY3 ',IF ! RATE ( SOCIAL ACCUMULATION RISES 7DUE TO CONSCI\S PRESSURE ON WAGES61 - ,R4,L47 ! PO9T WILL BE REA*$ :]E V>IABLE CAPITAL IS GR[+ FA/] ?AN ! POPULATION4 ,WE CALL ?IS /ATE ! /ATE ( OV]-ACCUMULATION4' ,?AT IS ALL2 ,BAU] TELLS US NO MORE ?AN ?AT AB\T 'OV]-ACCUMULATION'4 ,ALL WE DISCOV] IS ?AT ! RATE ( ACCUMULATION 7I4E4 =MATION ( CAPITAL SUITABLE = 9VE/M5T7 'F9ALLY' 9CREASES TO ! PO9T :]E ! DEM& = LABOR IS GREAT] ?AN ! SUPPLY4 ,BUT :Y MU/ IT 'F9ALLY' REA* ?IS PO9T8 ,DOES IT FOLL[ A PHYSICAL LAW ( 9]TIA BECAUSE IT IS ALREADY 9 ! PROCESS ( RIS+8 ,LET US 5VISAGE :AT 9ITIAT$ ?IS RISE6 ,WAGES FELL UND] ! PRESSURE ( UNEMPLOYM5T1 RESULT+ 9 ! GR[? ( DISPOSABLE 787 CAPITAL4 ,?IS GR[? CAN ONLY CONT9UE UNTIL ALL WORK]S RETURN TO EMPLOYM5T1 & 9 ,BAU]'S /RANGE SOCIETY ?IS HAPP5S :5 WAGES >E AT !IR L[E/ PO9T4 ,BUT ONCE ! 5TIRE WORK+ POPULATION IS EMPLOY$1 WAGES /OP FALL+ EV5 9 ?IS /RANGE SOCIETY &1 AS 9 REAL LIFE1 !Y ACTUALLY />T TO RISE AGA94 ,& AS SOON AS !Y BEG9 TO RISE ! RATE ( 'ACCUMULATION' :I* - ACCORD+ TO ,BAU] - CAN ONLY GR[ FROM ?AT S\RCE1 MU/ /OP 9CREAS+4 ,H[1 !N1 CAN IT CONT9UE TO GR[ T[>DS ! 'F9AL' /AGE ( 'OV]-ACCUMULATION' ONCE ALL ! WORK]S >E EMPLOY$8 ,9 VA9 DO WE WAIT = AN ANSW]4 ,! ORIG9 ( OV]-ACCUMULATION REMA9S HIDD5 FROM US1 & SO DOES ! LA/ ACT ( ! P]=MANCE3 ! PROCESS BY :I* OV]-ACCUMULATION IS OV]COME & ! /ATE ( EQUILIBRIUM RE/OR$4 ',IF ! RATE ( ACCUMULATION IS TOO HI< 7( C\RSE3 9 RELATION TO ! LABOR =CE & ITS GR[? - ,R4,L47 !N ! RES]VE >MY IS SOON ABSORB$1 WAGES RISE1 ! RATE ( SURPLUS VALUE S9KS4' ,?IS RESULTS 9 AN EV5 MORE RAPID FALL 9 ! RATE ( PR(IT ?AN W\LD O!RWISE BE ! RESULT ( 9CREAS+ ORGANIC COMPOSITION ( CAPITAL4 ,?IS GIVES RISE TO 'A DISA/R\S CRISIS1 L>GE-SCALE UNEMPLOYM5T ( CAPITAL1 MASS DE/RUCTION ( VALUES & A SUDD5 SLUMP 9 ! RATE ( PR(IT'1 & ONCE AGA9 WE FALL BACK 9TO 'UND]-ACCUMULATION'1 S9CE ACCUMULATION DROPS & '! GR[? ( V>IABLE CAPITAL AGA9 FALLS BEH9D ! POPULATION GR[?'4.<#a#e.> ,BUT :Y ON E>? DOES ! 'DISA/R\S CRISIS' OCCUR AT ! HEIIABLE CAPITAL 9CREASES FA/] ?AN ! POPULATION4 ,MORE SIMPLY3 ! DEM& = LABOR IS GREAT] ?AN ! SUPPLY4 ,& ?AT CAUSES A CRISIS 9 9DU/RY & COMM]CE8 ,BAU] AVOIDS EXPLANATION1 BR++ A QUOTATION BY ,HILF]D+ TO HIS AID3 ! CRISIS OCCURS ':5 ! PREVI\SLY DESCRIB$ T5D5CIES ( A FALL+ RATE ( PR(IT GR[ /RONG] ?AN ! T5D5CIES :I* HAVE CAUS$ 9CREASES 9 PRICES & PR(ITS BECAUSE ( RIS+ DEM&'4 ,?IS QUOTATION ( ,HILF]D+'S EXPLA9S NO?+ AS F> AS ,BAU] IS CONC]N$1 S9CE IT IS NOT AN EXPLANATION1 BUT A COMPLICAT$ DESCRIPTION ( ! CRISIS - & IT BREAKS 9TO ,BAU]'S SPECULATIONS LIKE A FOX 9TO A *ICK5 RUN4 ,BAU] NEV] M5TIONS A RIS+ OR FALL+ 'DEM&' = COMMODITIES :I* MIIABLE CAPITAL & ! PROLET>IAT1 I4E4 'POPULATION'4 ,HE NEV] M5TIONS DEM& = COMMODITIES OR M>KETS & !IR PROBLEMS4 ,OV]-ACCUMULATION IS NO?+ BUT A SURPLUS ( V>IABLE CAPITAL 7I4E4 DEM& = WORK]S7 9 RELATION TO ITS NATURAL GR[?4 ,?IS IS ! ONLY 'DEM&' ,BAU] DEALS )4 ,& ?AT %\LD CAUSE A 'DISA/R\S CRISIS'8 ,?IS TRICK WE WANT TO SEE6 ,C]TA9LY ALSO1 ON \R PLA9 E>? ! \TBREAK ( A CRISIS FOLL[S A SITUATION :]E DEM& = LABOR IS V]Y /RONG1 & WAGES RISE4 ,BUT 9 REALITY ?IS PH5OM5ON IS NOT ! CAUSE ( ! CRISIS1 BUT ONLY ITS '/ORMY PETREL'1 AS ,M>X CALLS IT 9 ! SECOND VOLUME ( ,CAPITAL2 IT IS A M]E SUBSIDI>Y FACTOR TO CIRCUM/ANCE1 ! RELATION%IP BETWE5 PRODUCTION & ! M>KET4 ,9 :ATEV] WAY ONE 'TRIES TO EXPLA9 P]IODIC CRISES !ORETICALLY1 9 REALITY !Y OBVI\SLY /EM FROM DISPROPORTIONS BETWE5 PRODUCTION1 I4E4 ! SUPPLY ( COMMODITIES1 & M>KET1 I4E4 DEM& = COMMODITIES4 ,! QUE/ION ( M>KETS DOES NOT EV5 EXI/ = ,BAU]3 HIS P]IODIC CRISES /EM FROM MALADJU/M5T BETWE5 DEM& = LABOR =CE1 & ! NATURAL MULTIPLICATION ( ! WORK+ CLASS4 ,BECAUSE WORK]S DO NOT REPRODUCE AS RAPIDLY AS ! 9CREAS+ DEM& ( CAPITAL REQUIRES1 A 'DISA/R\S CRISIS' OCCURS4 ,! P]IODIC LACK ( LABOR IS ! SOLE CAUSE ( ECONOMIC CRISES - ?AT1 9DE$1 IS ONE ( ! MO/ A/ONI%+ DISCOV]IES ( ,NATIONALOKONOMIE1.<#a#f.> NOT M]ELY S9CE ,M>X BUT S9CE ,WILLIAM ,PETTY4.<#a#g.> ,N[ WE HAVE SE5 CAPITAL 9 ALL ITS PHASES1 & ,BAU] PROCE$S TO MAKE ?IS CONCLUSION ( H>MONY3 ',CAPITALI/ PRODUCTION C>RIES 9 ITSELF ! ME*ANISM TO BR+ UP ! RET>D$ RATE ( ACCUMULATION TO ! LEVEL ( POPULATION GR[?' 7I4E4 GR[? ( ! WORK+ POPULATION74 ,& AGA9 HE /RESSES3 ,LOOK+ AT ! CAPITALI/ WORLD ECONOMY AS A :OLE1 ! T5D5CY ( ACCUMULATION TO ADJU/ ) ! GR[? ( POPULATION APPE>S AS A CYCLE4 ,PROSP]ITY IS OV]-ACCUMULATION1 IT DE/ROYS ITSELF 9 ! CRISIS4 ,! FOLL[+ DEPRESSION IS A TIME ( UND]-ACCUMULATION2 IT RE/ORES ITSELF1 AS DEPRESSION ITSELF CREATES ! CONDITIONS = A RETURN TO PROSP]ITY4 ,! P]IODIC RETURN TO PROSP]ITY1 CRISIS & DEPRESSION IS ! EMPIRICAL EXPRESSION ( ! FACT ?AT ! CAPITALI/ MODE ( PRODUCTION AUTOMATICALLY OV]COMES OV]- & UND]-ACCUMULATION1 & ACCUMULATION ( CAPITAL IS AGA9 & AGA9 ADJU/$ TO ! GR[? ( POPULATION4.<#a#h.> ,!RE CAN NO LONG] BE ANY MI/AKE4 ,BAU]'S 'ME*ANISM' RE/S SIMPLY ON ! FOLL[+3 AT ! C5T] ( CAPITALI/ WORLD ECONOMY IS ! WORK+ CLASS4 ,ECONOMIC LIFE REVOLVES >\ND ! AXIS ( ! WORK+ POPULATION & ITS NATURAL GR[?4 ,AT ONE PO9T V>IABLE CAPITAL IS TOO SMALL TO EMPLOY ALL PROLET>IANS1 & SO IT 9ITIATES GR[? ?R\< L[] WAGES4 ,AT ANO!R TIME CAPITAL IS OV]-EXT5D$ & CANNOT F9D SUFFICI5T LABOR2 IT DE/ROYS ITSELF 9 A CRISIS4 ,9 EA* CASE ! 5TIRE MOVEM5T ( PRODUCTION IS A CON/ANT EF=T TO ADJU/ TO ! NUMB] ( WORK]S & !IR NATURAL REPRODUCTION4 ,?AT IS ! QU9TESS5CE ( ,BAU]'S 'ME*ANISM'1 HIS COMPLICAT$ MA!MATICAL TRICKS & EXPLANATIONS4 ,! READ]1 WELL-READ 9 ,M>XISM1 MAY ALREADY GUESS :AT ,COP]NICAN EF=T HIDES BEH9D ,BAU]'S !ORY ( ACCUMULATION4 ,BUT BE=E WE CAN FULLY APPRECIATE ?IS EF=T1 WE MU/ SEE H[ ,BAU] CAN EASILY EXPLA9 ANY FEATURE ( CAPITALI/ WORLD ECONOMY3 ,! T5D5CY ( ADJU/M5T ( ACCUMULATION TO 9CREASES 9 POPULATION1 CONTROLS 9T]NATIONAL RELATIONS4 ,C\NTRIES ) A CON/ANT OV]-ACCUMULATION 9VE/ A L>GE & GR[+ P>T ( !IR ANNUAL SURPLUS VALUE 9 =EIGN L&S4 ,EXAMPLE3 ,FRANCE & ,5GL&4 7,G]MANY TOO1 ,I HOPE - ,R4,L47 ,L&S ) CON/ANT UND]-ACCUMULATION DRAW CAPITAL FROM =EIGN C\NTRIES & PROVIDE !M ) LABOR4 ,EXAMPLE3 ! AGR>IAN C\NTRIES ( ,EA/]N ,EUROPE4.<#a#i.> ,H[ WELL IT ALL WORKS1 CLE> & TO ! PO9T4 ,ONE CAN ALMO/ SEE ! SMIL+ SATISFACTION ) :I* ,BAU]1 ) ! HELP ( HIS NEWLY WON PR9CIPLE1 SOLVES1 LIKE A *ILDR5'S GAME1 ! MO/ 5TANGL$ PROBLEMS4 ,LET US 5T] 9TO ?IS GAME BY T\*+ ON A FEW PO9TS4 ,!RE >E C\NTRIES ') CON/ANT OV]-ACCUMULATION' & C\NTRIES ') CON/ANT UND]-ACCUMULATION'4 ,BUT :AT IS OV]-ACCUMULATION8 ,:AT IS UND]-ACCUMULATION8 ,! ANSW] FOLL[S ON ! NEXT PAGE3 'PROSP]ITY IS OV]-ACCUMULATION1 UND]-ACCUMULATION IS DEPRESSION'4 ,!RE=E !RE >E C\NTRIES ) CON/ANT PROSP]ITY3 ,5GL&1 ,FRANCE1 ,G]MANY2 & /ATES ) CON/ANT DEPRESSION1 ! AGR>IAN C\NTRIES ( ,EA/]N ,EUROPE4 ,IS IT NOT WOND]FUL8 ,SECOND TRY3 :AT IS ! CAUSE ( UND]-ACCUMULATION8 ,! ANSW] IS ON ! PREVI\S PAGE3 ',! PROGRESS T[>DS HI<] ORGANIC COMPOSITION 7SIMPLE3 TE*NOLOGICAL PROGRESS7 LEADS TO UND]-ACCUMULATION'4 ,C\NTRIES ) CON/ANT UND]-ACCUMULATION !RE=E MU/ BE ! TE*NOLOGICALLY MO/ ADVANC$-! AGR>IAN C\NTRIES ( ,EA/]N ,EUROPE4 ,C\NTRIES ) CON/ANT OV]-ACCUMULATION MU/ BE ! C\NTRIES ) ! SL[E/ & WEAKE/ PROGRESS3 ,5GL&1 ,FRANCE & ,G]MANY4 ,WOND]FUL1 IS IT NOT8 ,! CR[N+ PO9T ( ALL SEEMS TO BE ,NOR? ,AM]ICA4 ,IT HAS1 AT ! SAME TIME1 'CON/ANT OV]-ACCUMULATION' & 'CON/ANT UND]-ACCUMULATION'1 5]GETIC TE*NOLOGICAL PROGRESS & SL[E/ PROGRESS1 CON/ANT PROSP]ITY & CON/ANT DEPRESSION4 ,IT DRAWS -:AT A MIRACLE - CAPITAL & LABOR =CE1 SIMULTANE\SLY & ALL ! TIME1 FROM O!R C\NTRIES 444 ,LET US CONFRONT ,BAU]'S 'ME*ANISM' ) ,M>X4 ,! QU9TESS5CE ( ,BAU]'S !ORY IS ! ADJU/M5T ( CAPITAL TO ! POPULATION & ITS GR[?4 ,OV]-ACCUMULATION MEANS = ,BAU] ?AT CAPITAL GR[S FA/] ?AN DOES ! PROLET>IAT2 UND]-ACCUMULATION - ?AT IT GR[S SL[]4 ,BUT :AT DO WE F9D 9 ,M>X8 ,BAU] 9CLUDES A P>AGRAPH FROM ! ?IRD VOLUME ( ,CAPITAL1 :]E ,M>X DEALS ) OV]-ACCUMULATION1 9 ORD] TO GIVE ! IMPRESSION ?AT HIS [N !ORY IS SIMPLY AN 'UNOBJECTIONABLE' 9T]PRETATION ( ,M>X3 ,AS SOON AS CAPITAL W\LD1 !RE=E1 HAVE GR[N 9 SU* A RATIO TO ! LABOR+ POPULATION ?AT NEI!R ! ABSOLUTE WORK+-TIME SUPPLI$ BY ?IS POPULATION1 NOR ! RELATIVE SURPLUS WORK+-TIME1 C\LD BE EXP&$ ANY FUR!R 7?IS LA/ W\LD NOT BE FEASIBLE AT ANY RATE 9 ! CASE :5 ! DEM& = LABOR W]E SO /RONG ?AT !RE W]E A T5D5CY = WAGES TO RISE72 AT A PO9T1 !RE=E :5 ! 9CREAS$ CAPITAL PRODUC$ JU/ AS MU*1 OR EV5 LESS1 SURPLUS VALUE ?AN IT DID BE=E ITS 9CREASE1 !RE W\LD BE ABSOLUTE OV]-PRODUCTION ( CAPITAL2 I4E4 ! 9CREAS$ CAPITAL ,C "4 8,C W\LD PRODUCE NO MORE1 OR EV5 LESS1 PR(IT ?AN CAPITAL ,C BE=E ITS EXPANSION BY 8,C4 ,9 BO? CASES !RE W\LD BE A /EEP & SUDD5 FALL 9 ! G5]AL RATE ( PR(IT1 BUT ?IS TIME DUE TO A *ANGE 9 ! COMPOSITION ( CAPITAL NOT CAUS$ BY ! DEVELOPM5T ( ! PRODUCTIVE =CES1 BUT RA!R BY A RISE 9 ! MONEY VALUE ( ! V>IABLE CAPITAL 7BECAUSE ( 9CREAS$ WAGES7 & ! CORRESPOND+ R$UCTION 9 ! PROPORTION ( SURPLUS LABOR TO NECESS>Y LABOR4.<#b.> ,BAU] ADDS TO ?IS QUOTATION3 ',?IS PO9T IS ! ABSOLUTE LIMIT ( ACCUMULATION4 ,ONCE IT IS REA*$1 ! ADJU/M5T ( ACCUMULATION TO GR[? ( POPULATION BR+S AB\T A 0DISA/R\S CRISIS01' ETC4 ,HE ?US MAKES ! AV]AGE READ] ASSUME ?AT ,M>X'S & HIS [N !ORY >E BASICALLY ! SAME1 ONLY ,BAU] SAYS IT MORE CONCISELY1 US+ HIS [N WORDS4 ,IMM$IATELY BE=E ! PASSAGE QUOT$ BY ,BAU] ,M>X SAYS3 ',?IS PLE?ORA ( CAPITAL >ISES FROM ! SAME C\RSES AS ?OSE :I* CALL =? RELATIVE OV]-POPULATION1 & IS1 !RE=E1 A PH5OM5ON SUPPLEM5T+ ! LATT]1 AL?\< !Y /& AS OPPOSITE POLES - UNEMPLOY$ CAPITAL AT ONE POLE & UNEMPLOY$ WORK] POPULATION AT ! O!R4'.<#b#a.> ,M>X IS SAY+ QUITE ! OPPOSITE TO ,BAU]3 SURPLUS ( CAPITAL & SURPLUS ( WORK+ POPULATION BO? AT ! SAME TIME - RESULT FROM ! SAME1 ?IRD CIRCUM/ANCE4 ,9 ! SAME *APT] FROM :I* ,BAU] TOOK HIS QUOTATION ON PP4#b#d#f-#g1 ,M>X SAYS3 ,IT IS NO CONTRADICTION ?AT ?IS OV]-PRODUCTION ( CAPITAL IS ACCOMPANI$ BY MORE OR LESS CONSID]ABLE RELATIVE OV]-POPULATION4 ,! CIRCUM/ANCES :I* 9CREAS$ ! PRODUCTIV5ESS ( LABOR1 AUGM5T$ ! MASS ( PRODUC$ COMMODITIES1 EXP&$ M>KETS1 ACCEL]AT$ ACCUMULATION ( CAPITAL BO? 9 T]MS ( ITS MASS & ITS VALUE1 & L[]$ ! RATE ( PR(IT - !SE SAME CIRCUM/ANCES HAVE ALSO CREAT$1 & CONT9U\SLY CREATE1 A RELATIVE OV]-POPULATION1 AN OV]-POPULATION ( LABOR]S NOT EMPLOY$ BY ! SURPLUS-CAPITAL [+ TO ! L[ DEGREE ( EXPLOITATION AT :I* ALONE !Y C\LD BE EMPLOY$1 OR AT LEA/ [+ TO ! L[ RATE ( PR(IT :I* !Y W\LD YIELD AT ! GIV5 DEGREE ( EXPLOITATION4.<#b#b.> ,ON ! SAME PAGE ,M>X SAYS F>!R ON ,IF CAPITAL IS S5T ABROAD1 ?IS IS NOT DONE BECAUSE IT ABSOLUTELY C\LD NOT BE APPLI$ AT HOME1 BUT BECAUSE IT CAN BE EMPLOY$ AT A HI<] RATE ( PR(IT 9 A =EIGN C\NTRY4 ,BUT SU* CAPITAL IS ABSOLUTE EXCESS CAPITAL = ! EMPLOY$ LABOR+ POPULATION & = ! HOME C\NTRY 9 G5]AL4 ,IT EXI/S AS SU* ALONGSIDE ! RELATIVE OV]-POPULATION1 & ?IS IS AN ILLU/RATION ( H[ BO? ( !M EXI/ SIDE BY SIDE1 & MUTUALLY 9FLU5CE ONE ANO!R4.<#b#c.> ,?AT IS CLE> 5\<4 ,& :AT IS ! TITLE ( ?IS *APT] ( ,M>X8 ,EXCESS ,CAPITAL & ,EXCESS ,POPULATION 7,CAPITAL1 ,VOL4,I,I,I1 P4#b#d#e74 ,& !RE ,BAU] HAS ! IDEA ( TAK+ A QUOTATION FROM ?AT *APT] & ADD+ ON A S5T5CE 9 ORD] TO GIVE ! IMPRESSION HE WAS SIMPLY ILLU/RAT+ ,M>X'S ?\X'S OV]-ACCUMULATION >E TWO QUITE DIFF]5T ECONOMIC T]MS1 9 FACT OPPOSITES4 ,BAU]'S OV]-ACCUMULATION IS ID5TICAL TO PROSP]ITY1 ! HIMY4 ,M>X'S EXCESS CAPITAL IS EQUIVAL5T TO EXCESS ( WORK]S1 HIES3 P]IODICALLY !RE IS TOO MU* CAPITAL1 BECAUSE !RE >E TOO MANY WORK]S4 ,M>X SAYS3 P]IODICALLY !RE IS TOO MU* CAPITAL & AS A RESULT ( ?AT TOO MANY WORK]S4 ,9 RELATION TO :AT IS !RE 'TOO MU*' ( BO?8 ,9 RELATION TO ! M>KET UND] 'NORMAL' CONDITIONS4 ,AS ! M>KET = CAPITALI/ COMMODITIES P]IODICALLY GR[S TOO SMALL1 CAPITAL MU/ REMA9 UNEMPLOY$ & CONSEQU5TLY P>T ( ! LABOR =CE AS WELL4 ,! CONNECTIONS ( ECONOMIC CAUSES & EFFECTS >E AS FOLL[S3 ! M>KET = CAPITALI/ GOODS IS ! />T+ PO9T AT ALL TIMES4 ,ON ?IS & ITS MOVEM5TS ! AM\NT ( V>IABLE CAPITAL DEP5DS4 ,& ON ?AT DEP5DS ! NUMB] ( UNEMPLOY$ WORK]S4 ,9 ! ?IRD VOLUME ( ,CAPITAL ,M>X CL>IFIES ?AT REPEAT$LY4 ,?US ON P4#b#d1 :]E HE DEALS ) ! '9T]NAL CONTRADICTIONS' ( CAPITALI/ PRODUCTION :I* ADJU/S ITSELF '?R\< EXPANSION ( ! \TLY+ FIELD ( PRODUCTION'4 ,BAU] ALSO CITES '! EXPANSION ( ! PRODUCTION FIELD' AS ESS5TIAL = ACCUMULATION1 & ADDS HIS IDEE FIXE3 ',! FIELD ( PRODUCTION IS EXP&$ BY ! GR[? ( POPULATION4'.<#b#d.> ,BUT ,M>X CLE>LY /ATES :AT HE CONSID]S TO BE 'EXPANSION ( ! \T] FIELD ( PRODUCTION'4 ,! 'M>KET MU/1 !RE=E1 BE CONT9UALLY EXP&$'4.<#b#e.> ,AGA9 ON P4#b#e1 AFT] DESCRIB+ ! CRISIS & ITS RECOV]Y3 ',& ?US ! CYCLE W\LD RUN ITS C\RSE ANEW4 ,P>T ( ! CAPITAL1 DEPRECIAT$ BY ITS FUNCTIONAL /AGNATION1 W\LD RECOV] ITS OLD VALUE4 ,= ! RE/ ! SAME VICI\S CIRCLE W\LD BE DESCRIB$ ONCE MORE UND] EXP&$ CONDITIONS ( PRODUCTION1 ) AN EXP&$ M>KET & 9CREAS$ PRODUCTIVE =CES4' ,& AS WE SAW1 ON PP4#b#e-#e#a3 ,! CIRCUM/ANCES :I* 9CREAS$ ! PRODUCTIV5ESS ( LABOR1 AUGM5T$ ! MASS ( PRODUC$ COMMODITIES1 EXP&$ M>KETS1 ACCEL]AT$ ACCUMULATION ( CAPITAL BO? 9 T]MS ( ITS MASS & ITS VALUE & L[]$ ! RATE ( PR(IT - !SE SAME CIRCUM/ANCES HAVE ALSO CREAT$ & CONT9U\SLY CREATE1 A RELATIVE OV]-POPULATION1 AN OV]-POPULATION ( LABOR]S NOT EMPLOY$ BY ! SURPLUS-CAPITAL 444 ,IT IS CLE> ?AT 'EXPANSION ( ! \TLY+ FIELD ( PRODUCTION' MEANS ! M>KET & NOT ! GR[? ( ! WORK+ POPULATION4 ,! EXPANSION ( ! M>KET IS ACCOMPANI$ BY EXCESS ( WORK]S1 9CREASE ( ! >MY ( ! UNEMPLOY$1 %R9K+ ( ! PUR*AS+ P[] ( ! WORK+ CLASS4 ,AGA91 ON PP4#b#e#a-#b3 ,TO SAY ?AT !RE IS NO G5]AL OV]-PRODUCTION1 BUT RA!R A DISPROPORTION )9 ! V>I\S BRAN*ES ( PRODUCTION . ,IT FUR!RMORE AM\NTS TO DEM&+ ?AT C\NTRIES 9 :I* CAPITALI/ PRODUCTION IS NOT DEVELOP$1 %\LD CONSUME & PRODUCE AT A RATE :I* SUITS ! C\NTRIES ) CAPITALI/ PRODUCTION4 ,H]E ,M>X LIT]ALLY /ATES ?AT ! CRISIS DOES NOT RESULT FROM DISPROPORTIONALITY 9 DISPOSABLE CAPITAL & DISPOSABLE LABOR =CE1 BUT FROM ! DISPROPORTIONALITY ( EX*ANGE BETWE5 CAPITALI/ & NON-CAPITALI/ C\NTRIES4 ,HE EV5 CLAIMS ?IS EX*ANGE TO BE ! NATURAL BASIS = ACCUMULATION4 ,& A FEW L9ES FUR!R ON3 ',H[ C\LD !RE O!RWISE BE A %ORTAGE ( DEM& = ! V]Y COMMODITIES :I* ! MASS ( ! PEOPLE LACK1 & H[ W\LD IT BE POSSIBLE = ?IS DEM& TO BE S\KETS1 TO PAY ! LABOR]S AT HOME ! AV]AGE AM\NT ( NECESSITIES ( LIFE8' ,H]E HE /ATES V]Y CLE>LY ?AT ! RATE ( EMPLOYM5T 9 CAPITALI/ C\NTRIES DEP5DS ON ! POSSIBILITY ( F9D+ '=EIGN M>KETS' = CAPITALI/ COMMODITIES4 ,ALL ?IS SAYS 5\< AB\T ,BAU] US+ QUOTATIONS FROM ,VOL4,I,I,I4 ,BUT HE GOES ON TO QUOTE FROM ,!ORIES ( ,SURPLUS ,VALUE1 ,VOL4,I,I1 P4#d#g#g2 ',POPULATION 9CREASE APPE>S AS ! BASIS ( ACCUMULATION AS A CONT9U\S PROCESS4' ,C\LD ?AT BE ,BAU]'S !ORY 9 A NUT%ELL8 ,WELL1 AGA91 HE JU/ PICK$ A RAIS9 \T ( ! CAKE4 ,! :OLE PASSAGE READS RA!R DIFF]5TLY4 ,M>X 9VE/IGATES H]E ! CONDITIONS ( ! ,TRANS=MATION ( ,REV5UE 9TO ,CAPITAL1 I4E4 ! PRODUCTIVE 9VE/M5T ( SURPLUS VALUE4 ,HE EXPLA9S ?AT ! ADDITIONAL PORTION ( CAPITAL MU/ BE CONV]T$ 9TO ONE L>G] P>T ( CON/ANT CAPITAL & ONE SMALL] P>T ( V>IABLE CAPITAL4 ,TO BEG9 )1 A PORTION ( ! SURPLUS VALUE 7& ! CORRESPOND+ SURPLUS PRODUCT 9 ! =M ( MEANS ( SUBSI/5CE7 HAS TO BE TRANS=M$ 9TO V>IABLE CAPITAL1 ?AT IS TO SAY1 NEW LABOR HAS TO BE B\ ,! LATT] HAPP5S :5 WORK]S :O >E ONLY EMPLOY$ = P>T ( ! TIME BECOME FULLY EMPLOY$1 OR :5 ! WORK+ DAY IS EXT5D$ BEYOND ITS NORMAL L5G?4 ,ALSO1 ADDITIONAL /RATA ( ! PROLET>IAT1 :O HAVE NOT YET WORK$ PRODUCTIVELY1 MAY BE REQUIR$3 WOM51 *ILDR51 PAUP]S4 ,F9ALLY 7SAYS ,M>X71 TOGE!R ) ! GR[? ( ! POPULATION 9 G5]AL1 ! LABOR+ POPULATION CAN GR[ ABSOLUTELY4 ,IF ACCUMULATION IS TO BE A /EADY CONT9U\S PROCESS1 !N ?IS ABSOLUTE GR[? 9 POPULATION - AL?\< IT MAY BE DECREAS+ 9 RELATION TO ! CAPITAL EMPLOY$ - IS A NECESS>Y CONDITION4.<#b#g.> ,& N[ COMES ! LITTLE S5T5CE EXTRACT$ BY ,BAU]3 ',AN 9CREAS+ POPULATION APPE>S TO BE ! BASIS ( ACCUMULATION AS A CONT9U\S PROCESS4' ,?IS IS :AT ,M>X SAYS ON ! V]Y SAME PAGE ( ,!ORIES ( ,SURPLUS ,VALUE AS ,BAU] BR+S ON TO ! FIELD AS A CLASSIC WITNESS = HIS 'ME*ANISM'4 ,IF !RE IS ANY?+ ! READ] MU/ IMM$IATELY GRASP FROM ?IS QUOTATION1 IT IS ?AT ,M>X'S REASON+ IS AS FOLL[S3 IF ACCUMULATION1 I4E4 EXPANSION ( PRODUCTION1 IS TO TAKE PLACE1 !N ADDITIONAL LABOR IS ALSO NE$$4 ,?US !RE CAN BE NO CON/ANT EXPANSION ( PRODUCTION )\T AN 9CREAS+ WORK+ POPULATION4 ,EV5 ! SIMPLE/ WORK] CAN UND]/& ?AT4 ,9 ?IS S5SE1 'AN 9CREAS+ POPULATION APPE>S TO BE ! BASIS ( ACCUMULATION'4 ,BUT ,BAU]'S QUE/ION WAS NOT :E!R AN 9CREASE 9 ! WORK+ POPULATION WAS NE$$ = ACCUMULATION 7NO ONE EV] D5I$ ?AT71 BUT :E!R IT IS A SUFFICI5T CONDITION4 ,M>X SAYS3 ACCUMULATION CANNOT TAKE PLACE )\T AN 9CREAS+ POPULATION4 ,BAU] *ANGES ?IS TO READ3 AN 9CREAS+ WORK+ POPULATION IS SUFFICI5T = ACCUMULATION TO TAKE PLACE4 ,H]E1 ,M>X PRESUPPOSES ACCUMULATION1 HE ASSUMES ! POSSIBILITY ( AN EASY M>KET2 :AT HE IS 9VE/IGAT+ >E ! =MS 9 :I* ACCUMULATION OCCURS1 & !RE HE F9DS ?AT ! 9CREAS+ LABOR =CE IS1 AMONG O!R ?+S1 NECESS>Y4 ,BAU] TAKES ! 9CREASE 9 ! NUMB] ( WORK]S AS A GIV5 FACTOR1 ON ACC\NT ( :I* & ACCORD+ TO :I* PRODUCTION EXP&S ) NO FUR!R CONC]N AB\T ! M>KET6 ,?IS IS ! SAME 9V]SION ( ,M>X'S ?\E READ+ TOO MU* 9TO ,M>X'S QUOTATION2 P]HAPS ,BAU] C\LD GIVE ,M>X'S WORDS HIS [N 9T]PRETATION1 OR %ALL WE SAY MIS9T]PRETATION8 ,& YET IT IS QUITE PUZZL+ H[ ANYBODY CAN MISUND]/& ,M>X ON ?IS PO9T1 PROVID+ !Y HAVE READ ! *APT] PROP]LY4 ,= A FEW PAGES F>!R ON HE >TICULATES HIS BASIC ?\ WORDS3 ',! QUE/ION HAS N[ TO BE =MULAT$ ?US3 ASSUM+ G5]AL ACCUMULATION 7,M>X'S EMPHASIS71 9 O!R WORDS1 ASSUM+ ?AT CAPITAL IS ACCUMULAT$ TO SOME EXT5T 9 ALL BRAN*ES ( PRODUCTION - ?IS IS 9 FACT A CONDITION ( CAPITALI/ PRODUCTION 444 - :AT >E ! CONDITIONS ( ?IS G5]AL ACCUMULATION1 :AT DOES IT AM\NT TO8' ,& HE ANSW]S3 ! CONDITIONS >E '?AT LABOR P[] WAS B\T ( ! MONEY CAPITAL & MEANS ( PRODUCTION ) ! O!R'4.<#b#h.> ,& AT ! SAME TIME1 TO CLE> UP ANY D\BT1 AS IF HE HAD A PREMONITION ( HIS 'EXP]T' PUPILS1 HE ADDS3 ,WE DISREG>D H]E ! CASE 9 :I* MORE CAPITAL IS ACCUMULAT$ ?AN CAN BE 9VE/$ 9 PRODUCTION1 & = EXAMPLE LIES FALL[ 9 ! =M ( MONEY AT ! BANK4 ,?IS RESULTS 9 LOANS ABROAD1 ETC41 9 %ORT SPECULATIVE 9VE/M5TS4 ,NOR DO WE CONSID] ! CASE 9 :I* IT IS IMPOSSIBLE TO SELL ! MASS ( COMMODITIES PRODUC$1 CRISES1 ETC4 ,?IS BELONGS TO ! SECTION ON COMPETITION4 ,H]E WE EXAM9E ONLY ! =MS ( CAPITAL 9 ! V>I\S PHASES ( ITS PROCESS1 ASSUM+ ?R\<\T ?AT ! COMMODITIES >E SOLD AT !IR VALUE4.<#b#i.> ,?US1 ,M>X ASSUMES ! EXPANSION ( ! M>KET1 ! POSSIBILITY ( ACCUMULATION1 & ONLY 9VE/IGATES :AT FOLL[S FROM ?AT4 ,ONE RESULT IS ! EMPLOYM5T ( NEW WORK]S1 & = ?AT AN 9CREASE 9 ! WORK+ POPULATION IS NECESS>Y4 ,FROM ?IS ,BAU] D$UCES3 9 ORD] = ACCUMULATION TO TAKE PLACE1 IT SUFFICES ?AT ! WORK+ POPULATION GR[S1 9DE$ ACCUMULATION TAKES PLACE BECAUSE ! WORK+ POPULATION GR[S4 ,! OBJECTIVE PURPOSE & AIM ( ACCUMULATION & ITS 'ME*ANISM' IS TO ADJU/ TO ! GR[? 9 ! WORK+ POPULATION4 ,MAN HAS TO BREA! AIR AS A CONDITION ( HIS EXI/5CE4 ,CONCLUSION A LA ,BAU]3 MAN LIVES ON AIR1 HE LIVES 9 ORD] TO BREA! AIR1 HIS 5TIRE LIFE PROCESS IS NO?+ BUT ! 'AUTOMATIC' ADJU/M5T ( HIS BODILY ME*ANISM TO 9HALATION & EXHALATION4 ,SU* >E ! WOND]FUL RESULTS REA*$ BY RUNN+ AB\T ) ONE'S /ICK 9 ! AIR ( AB/RACT /UPIDITY6 ,BUT ! FUN 5DS H]E1 = ! MATT] IS ANY?+ BUT FUNNY4 ,HE IS NOT DEAL+ ) LITTLE ME & MY BOOK ANY MORE1 BUT ) ! ELEM5T>Y CONCEPTS ( ,M>X'S [N TEA*+4 ,WE CAN N[ LEAVE ! /EEP & MI/Y HEIE UN=TUNATELY H>DLY KN[N TO ! ,M>XI/ PUBLIC4 ,WE RETURN TO ! FIR/ VOLUME ( ,CAPITAL1 :I* HAS SO F> =M$ ! ACTUAL ECONOMIC BASIS ( SOCIAL DEMOCRACY4 ,H]E EV]Y READ] :O IS FAMILI> ) ! FIR/ VOLUME ( ,M>X'S MAGNUM OPUS CAN EASILY EXAM9E ,BAU]'S !ORY = HIMSELF3 HE NE$ ONLY OP5 ! TW5TY-FIF? *APT] TO READ ON P4#f#c#g3 ',= MOD]N 9DU/RY ) ITS DEC5NIAL CYCLES 444 ?AT W\LD 9DE$ BE A BEAUTIFUL LAW1 :I* PRET5DS TO MAKE ! ACTION ( CAPITAL DEP5D5T ON ! ABSOLUTE V>IATION ( ! POPULATION1 9/EAD ( REGULAT+ ! DEM& & SUPPLY ( LABOR BY ! ALT]NATE EXPANSION & CONTRACTION ( CAPITAL1'.<#c.> I4E4 ACCORD+ TO ITS REQUIREM5TS4 ,M>X MEANS ! OLD 'DOGMA' ( B\RGEOIS ECONOMY2 ! SO-CALL$ WAGE FUND4 ,IT TOOK ! AVAILABLE SOCIAL CAPITAL AS A QUITE SPECIFIC1 GIV5 AM\NT & MADE ! EMPLOY$ WORK]S DEP5D5T ON !IR NATURAL GR[?4 ,M>X POLEMICIZES AGA9/ ?IS 'DOGMA' 9 DETAIL1 & 9 ! PROCESS ACCID5TALLY DELIV]S ONE REBUKE AFT] ANO!R TO HIS 'EXP]T' PUPIL4 ,ON P4#f#d HE TEA*ES HIM3 ,! DEM& = LABOR IS NOT ID5TICAL ) 9CREASE ( CAPITAL1 NOR SUPPLY ( LABOR ) 9CREASE ( ! WORK+ CLASS4 ,IT IS NOT A CASE ( TWO 9DEP5D5T =CES WORK+ ON ONE ANO!R4 ,LES DES SONT PIPES4 ,CAPITAL WORKS ON BO? SIDES AT ! SAME TIME4 ,IF ITS ACCUMULATION1 ON ! ONE H&1 9CREASES ! DEM& = LABOR1 IT 9CREASES ON ! O!R ! SUPPLY ( LABOR]S BY ! 'SETT+ FREE' ( !M 444.<#c#a.> ,9 ,BAU]'S 'ME*ANISM' ! 9DU/RIAL RES]VE >MY DEVELOPS AS A CONSEQU5CE ( RET>D$1 TOO SL[1 ACCUMULATION4 ,HE SAYS CATEGORICALLY3 ',! FIR/ EFFECT ( UND]-ACCUMULATION IS ! =MATION ( AN 9DU/RIAL RES]VE >MY4'.<#c#b.> ,! SMALL] ! CAPITAL ACCUMULATION1 ! L>G] ! RES]VE >MY4 ,?IS IS :AT ,BAU] SAYS4 ,F\R PAGES AFT] ! ABOVE-CIT$ QUOTATION ,M>X TEA*ES HIM3 ,! GREAT] ! SOCIAL WEAL?1 ! FUNCTION+ CAPITAL1 ! EXT5T & 5]GY ( ITS GR[?1 &1 !RE=E1 ! ABSOLUTE MASS ( ! PROLET>IAT & ! PRODUCTIV5ESS ( ITS LABOR1 ! GREAT] IS ! 9DU/RIAL RES]VE >MY4 ,! SAME CAUSES :I* DEVELOP ! EXPANSIVE P[] ( CAPITAL1 DEVELOP ALSO ! LABOR-P[] AT ITS DISPOSAL4.<#c#c.> ,ON ! SAME PAGE ,M>X SAYS S>CA/ICALLY3 ',! FOLLY IS N[ PAT5T ( ! ECONOMIC WISDOM ?AT PREA*ES TO ! LABOR]S ! ACCOMMODATION ( !IR NUMB] TO ! REQUIREM5TS ( CAPITAL4 ,! ME*ANISM ( CAPITALI/ PRODUCTION & ACCUMULATION CON/ANTLY EFFECTS ?IS ADJU/M5T4'.<#c#d.> ,:I* IS ! GREAT] 'FOLLY'3 ! OLD B\RGEOIS ONE1 :I* PREA*ES TO ! WORK]S TO ADJU/ !IR REPRODUCTION TO CAPITAL1 OR ! NEW ',AU/RO-,M>XI/' ONE1 :I* TELLS ! WORK]S ?AT CAPITAL ALWAYS ADJU/S TO !IR NUMB]S8 ,I BELIEVE ! LATT] IS WORSE4 ,! OLD 'FOLLY' WAS ONLY ! 9COMPREH5D+ SUBJECTIVE REFLECTION ( REAL RELATIONS1 :ILE ! NEW ONE TURNS REALITY UPSIDE D[N4 ,?R\<\T ! *APT] DEAL+ ) ! LABOR+ POPULATION & ITS GR[? ,M>X TALKS AB\T 'REQUIREM5TS' ( CAPITAL4 ,DEM& = LABOR1 WAGE LEVELS1 PROSP]ITY OR CRISIS ALL DEP5D ON !SE4 ,:AT >E !SE 'REQUIREM5TS' :I* ,M>X M5TIONS ALL ! TIME & ,BAU] NOT ONCE 9 HIS 5TIRE 'ME*ANISM'8 ,9 ! SAME *APT] ,M>X TALKS CONT9U\SLY AB\T CAPITAL'S 'SUDD5 EXPANSIONS'1 TO :I* HE ATTRIBUTES PRIM>Y IMPORTANCE 9 ! MOVEM5T ( CAPITAL ACCUMULATION AS WELL AS ?AT ( ! WORK+ POPULATION4 ,9DE$1 ! SUDD5 & LIMITLESS ABILITY TO EXP& IS1 ACCORD+ TO ,M>X1 A *>ACT]I/IC FEATURE ( MOD]N 9DU/RIAL DEVELOPM5T4 ,:AT >E WE TO UND]/& BY !SE 'SUDD5 EXPANSIONS' ( CAPITAL1 :I* W]E SO IMPORTANT = ,M>X & :I* ,BAU] DOES NOT EV5 M5TION8 ,M>X GIVES A CLE> ANSW] TO BO? QUE/IONS AT ! BEG9N+ ( ! SAME *APT] .3 '444 S9CE LA/LY1 UND] SPECIAL /IMULUS TO 5RI*M5T1 SU* AS ! OP5+ ( NEW M>KETS1 OR ( NEW SPH]ES = ! \TLAY ( CAPITAL 9 CONSEQU5CE ( NEWLY DEVELOP$ SOCIAL WANTS1 ETC41 ! SCALE ( ACCUMULATION MAY BE SUDD5LY EXT5D$ 444'.<#c#e.> ,& AGA9 9 MORE DETAIL1 ON P4#f#c#b3 ,) ACCUMULATION1 & ! DEVELOPM5T ( ! PRODUCTIV5ESS ( LABOR ?AT ACCOMPANIES IT1 ! P[] ( SUDD5 EXPANSION ( CAPITAL GR[S ALSO2 IT GR[S1 NOT M]ELY BECAUSE ! ELA/ICITY ( ! CAPITAL ALREADY FUNCTION+ 9CREASES1 NOT M]ELY BECAUSE ! ABSOLUTE WEAL? ( SOCIETY EXP&S1 ( :I* CAPITAL ONLY =MS AN ELA/IC P>T1 NOT M]ELY BECAUSE CR$IT1 UND] EV]Y SPECIAL /IMULUS1 AT ONCE PLACES AN UNUSUAL P>T ( ?IS WEAL? AT ! DISPOSAL ( PRODUCTION 9 ! =M ( ADDITIONAL CAPITAL 444 ,! MASS ( SOCIAL WEAL?1 OV]FL[+ ) ! ADVANCE ( ACCUMULATION1 & TRANS=MABLE 9TO ADDITIONAL CAPITAL1 ?RU/S ITSELF FRANTICALLY 9TO OLD BRAN*ES ( PRODUCTION1 :OSE M>KET SUDD5LY EXP&S1 OR 9TO NEWLY =M$ BRAN*ES1 SU* AS RAILWAYS1 ETC41 ! NE$ = :I* GR[S \T ( ! DEVELOPM5T ( ! OLD ONES4 ,9 ALL SU* CASES1 !RE MU/ BE ! POSSIBILITY ( ?R[+ GREAT MASSES ( M5 SUDD5LY ON ! DECISIVE PO9TS )\T 9JURY TO ! SCALE ( PRODUCTION 9 O!R SPH]ES4 ,OV]-POPULATION SUPPLIES !SE MASSES4'.<#c#f.> ,H]E ,M>X DOES NOT ONLY EXPLA9 H[ !SE SUDD5 EXPANSIONS ( CAPITAL TAKE PLACE - NAMELY1 AS A RESULT ( SUDD5 EXPANSION 9 ! M>KETS - BUT HE ALSO =MULATES ! SPECIAL FUNCTION ( ! 9DU/RIAL RES]VE >MY3 TO BE 'AVAILABLE' = ?OSE EXTRAORD9>Y SUDD5 EXPANSIONS ( CAPITAL4 ,H]E ,M>X SEES ! MO/ IMPORTANT1 ! ACTUAL FUNCTION ( ! 9DU/RIAL RES]VE >MY1 = :I* HE CALLS IT AN EXI/5TIAL CONDITION ( MOD]N CAPITALI/ PRODUCTION4 ,! =MATION ( 9DU/RIAL OV]-POPULATION IS '! LEV] ( CAPITALI/IC ACCUMULATION1 NAY1 A CONDITION ( EXI/5CE ( ! CAPITALI/ MODE ( PRODUCTION 444 ,! :OLE =M ( ! MOVEM5T ( MOD]N 9DU/RY DEP5DS1 !RE=E1 UPON ! CON/ANT TRANS=MATION ( A P>T ( ! LABOR+ POPULATION 9TO UNEMPLOY$ OR HALF-EMPLOY$ H&S4.<#c#g.> ,M>X =MULATES HIS OP9ION MO/ CLE>LY & CONCISELY ON P4#d#e3 ,SO SOON1 9 %ORT1 AS ! G5]AL CONDITIONS REQUISITE = PR\UCTION BY ! MOD]N 9DU/RIAL SY/EM HAVE BE5 E/ABLI%$1 ?IS MODE ( PRODUCTION ACQUIRES AN ELA/ICITY1 A CAPACITY = SUDD5 EXT5SION BY LEAPS & B\NDS ?AT F9DS NO H9DRANCE EXCEPT 9 ! SUPPLY ( RAW MAT]IAL & 9 ! DISPOSAL ( ! PRODUCE4.<#c#h.> ,H[ DOES ,BAU] DEAL ) ALL ?IS8 ,!RE IS NO ROOM = SUDD5 EXPANSIONS ( CAPITAL 9 HIS 'ME*ANISM'1 ?US NO ROOM = ITS ELA/ICITY4 ,!RE >E TWO REASONS = ?IS3 FIR/LY1 AS PRODUCTION DEP5DS ONLY ON ! WORK+ POPULATION & ITS GR[?1 M>KETS >E ( NO IMPORTANCE4 ,! POPULATION1 GR[+ ?R\< NATURAL REPRODUCTION1 ( C\RSE %[S NO SUDD5 EXPANSION4 ,! WORK+ POPULATION P]IODICALLY CAUSES RAPID GR[? ( ! 9DU/RIAL RES]VE >MY1 BUT = ,BAU] ?AT HAPP5S 9 TIMES ( 'UND]-ACCUMULATION'1 ( ! SL[E/ 9CREASE1 ( ! %ORTAGE ( DISPOSABLE CAPITAL 9 RELATION TO ! WORK+ CLASS4 ,SECONDLY1 SUDD5 EXPANSION NOT ONLY MEANS SUDD5 EXPANSION ( M>KETS1 BUT ALSO ( ALREADY ACCUMULAT$ DISPOSABLE CAPITAL RES]VE1 ?AT RES]VE1 :I*1 AS ,M>X SAYS1 'CR$IT1 UND] EV]Y SPECIAL /IMULUS1 AT ONCE PLACES 444 AT ! DISPOSAL ( PRODUCTION 9 ! =M ( ADDITIONAL CAPITAL' 444 ,BAU] EXCLUDES ?AT POSSIBILITY3 9 HIS 'ME*ANISM' A RECOV]Y FROM ! PHASE ( 'UND]-ACCUMULATION' CAN ONLY OCCUR :5 ! PRESSURE FROM UNEMPLOYM5T ALL[S NEW ACCUMULATION BY DEPRESS+ WAGES6 ,AS ! SUDD5 EXPANSION ( CAPITAL REMA9S1 LIKE ! \TBREAK ( CRISES1 9EXPLICABLE FROM ,BAU]'S /&PO9T1 ! 9DU/RIAL RES]VE >MY HAS NO ACTUAL FUNCTION 9 IT4 ,IT APPE>S AS A PRODUCT ( TE*NOLOGICAL PROGRESS1 BUT HAS NO ROLE AP>T FROM ?AT M5TION$ BY ,M>X 9 HIS SECOND PLAN3 TO DEPRESS WAGES BY WEI<+ D[N ! EMPLOY$4 ,:AT MAKES IT1 ACCORD+ TO ,M>X1 AN 'EXI/5TIAL CONDITION'1 ! 'LEV]' ( CAPITALI/ PRODUCTION1 ,BAU] DOES NOT NOTICE4 ,! HUMOR\S PROCESS ( BE+ ABSORB$ ?REE TIMES 9 ! RUN ( AN 9DU/RIAL CYCLE PROVES ?AT ,BAU] DOES NOT KN[ :AT TO DO ) ! RES]VE >MY3 FIR/1 AT ! L[E/ PO9T ( 'UND]-ACCUMULATION'1 !N AT ! PEAK ( 'OV]-ACCUMULATION'1 & AGA9 AT ! /ATE ( EQUILIBRIUM4 ,!SE MIRACLES HAVE A SIMPLE REASON3 = ,BAU] ! MOVEM5T ( ! WORK+ POPULATION IS NOT CAUS$ BY CAPITAL & ITS REQUIREM5TS 7AS = ,M>X & 9 REALITY7 BUT VICE V]SA4 ,! 5TIRE MOVEM5T ( CAPITAL REVOLVES R\ND ! WORK+ POPULATION4 ,ACCORD+ TO ,BAU]1 CAPITAL ACTS LIKE ! H>E & ! H$GEHOG3 IT IS ALWAYS GASP+ = BREA? BEH9D ! WORK+ POPULATION1 SOMETIMES OV]TAK+ IT 9 ! MIDDLE1 AT O!RS FALL+ BEH9D IT1 & AT ! 5D ALWAYS HE>+3 ,HEY1 ,I GOT H]E BE=E Y\6 ,= ,M>X1 ! !ORY ?AT ! WORK+ POPULATION COMPLETELY ADJU/S TO CAPITAL & ITS M>KET PROSPECTS IS ! BASIC ?\EFULLY EXPLA9S ?IS IMPORTANT ECONOMIC DISCOV]Y4 ',?AT IS ! ABSOLUTE G5]AL LAW ( CAPITAL ACCUMULATION1' HE EMPHASIZES 9 CONCLUSION4 ,!N 'ILLU/RATIONS' FOLL[1 FILL+ ANO!R SIXTY-FIVE PAGES4 ,:AT DOES HE %[ FROM ! EXAMPLE ( ,5GL& AS ! TYPICAL & LEAD+ C\NTRY ( CAPITALI/ PRODUCTION8 - :ILE ! ANNUAL GR[? ( ! POPULATION 9 ,5GL& CON/ANTLY DECREAS$ FROM #a#h#a#a-#f#a1 ! WEAL?1 I4E4 CAPITALI/ ACCUMULATION1 EXP&$ BY LEAPS & B\NDS6 ,M>X PROVES ?AT ) 9NUM]ABLE & V>I$ /ATI/ICAL FACTS4 ,P]HAPS ,BAU] WILL 9T]JECT3 ,?IS HUGE 9CREASE ( N9ETE5?-C5TURY ,5GLI% 9DU/RY WAS1 ( C\RSE1 NOT CALCULAT$ = ! ,5GLI% POPULATION ALONE & MU/ NOT BE COMP>$ ) IT ALONE AS ! ECONOMIC BASIS4 ,NOTE ! ,5GLI% SALES TO ! ,NOR? ,AM]ICAN ,UNION1 ,C5TRAL & ,S\? ,AM]ICA2 NOTE ! P]IODIC CRISES 9 ,5GLI% 9DU/RY BETWE5 #ahbe & #a#h#f#g1 FOLL[+ ! EXPANSION ( M>KETS 9 ?OSE C\NTRIES6 ,BRILLIANT6 ,BUT IF ,BAU] KN[S ?AT1 !N HE KN[S EV]Y?+1 !N HE ALSO KN[S ?AT ?IS !ORY ( ! ADJU/M5T ( ACCUMULATION TO POPULATION GR[? IS NONS5SE1 !N HE KN[S :AT ,M>X WANT$ TO PROVE 9 ! FIR/ VOLUME ( ,CAPITAL1 ?AT ! WORK+ POPULATION ADJU/S TO ! ACCUMULATION ( CAPITAL & ITS *ANG+ REQUIREM5TS4 ,?IS IS ! CULM9AT+ PO9T ( ! FIR/ VOLUME ( ,CAPITAL4 ,M>X COMPILES ! SPIRIT ( HIS !ORY ( CAPITALI/ EXPLOITATION1 ! PRIM>Y RELATION BETWE5 CAPITAL & LABOR1 & ! SPECIAL 'LAW ( POPULATION' 9 ! CAPITALI/ P]IOD4 ,ALONG COMES ,BAU]1 :O TURNS ?IS :OLE $IFICE UPSIDE D[N & TELLS ! WORLD ?AT ! 5TIRE MOVEM5T ( CAPITAL RESULTS FROM ! T5D5CY TO ADJU/ TO ! 9CREASE ( ! WORK+ POPULATION6 ,9 T]MS ( CONT5T ,BAU]'S !ORY IS A SOAP BUBBLE4 ,CORRECT HIM BY ASSUM+ ) ,M>X A P]MAN5T =MATION ( ! 9DU/RIAL RES]VE >MY 7:OSE FUNCTION IT IS TO SATISFY ! DEM&S ( CAPITAL EV5 9 TIMES ( ! GREATE/ PROSP]ITY71 & HIS SPECIFIC 'OV]-ACCUMULATION' IS F9I%$4 ,CORRECT HIM BY ASSUM+ ) ,M>X A CON/ANT RELATIVE DECREASE ( V>IABLE CAPITAL 9 RELATION TO ! NUMB] ( WORK]S AS A RESULT ( TE*NOLOGICAL PROGRESS1 & HIS 'EQUILIBRIUM' IS F9I%$4 ,HIS !ORY VANI%ES 9TO ?9 AIR4 ,BUT MORE ?AN ! PRET5TI\SNESS ( ?IS CON/RUCTION IS ! BASIC IDEA BEH9D IT3 ! ALLEG$ T5D5CY ( CAPITAL TO ADJU/ ITS MOVEM5T TO ! WORK+ POPULATION4 ,?IS CA/S ! V]Y SPIRIT ( ,M>X'S !ORY TO ! W9D4 ,& TO ?9K ?AT ?IS P$ANTICALLY PUZZL$ \T SY/EM ( HAIR-RAIS+ NONS5SE C\LD BE PUBLI%$ 9 ! (FICIAL ORGAN ( ,M>XI/ !ORY6 ,EAG]LY FIS >\ND ! E>?1 9 ORD] TO EXPLA9 MOD]N A/RONOMIC SY/EMS1 W\LD NOT BE TAK5 S]I\SLY4 ,SU* AN IDEA W\LD NOT EV5 COME TO ! ATT5TION ( ! PUBLIC1 S9CE NO $ITOR ( A SCI5TIFIC J\RNAL W\LD LET SU* NONS5SE PASS4 ,UND] ! REGIME ( ! ',AU/RO-,M>XI/' DIADO*ES.<#c#i.> SU* ?+S CAN EASILY HAPP54 ,PRON\NC$ FROM ?AT RO/RUM1 ,BAU]'S !ORY ( ACCUMULATION IS NOT A COMMON ]ROR1 SU* AS CAN OCCUR 9 ! QUE/ = SCI5TIFIC KN[L$GE4 ,IT IS1 QUITE AP>T FROM ITS POSITION T[>DS MY BOOK1 A DISGRACE TO PRES5T (FICIAL ,M>XISM & A SC&AL = ,SOCIAL ,DEMOCRACY4 ,FOOTNOTES .<#a.>,NEUE ,ZEIT1 #a#i#a#c1 ,NO4#b#c1 P4#h#c#d4 _ .<#b.>OP4 CIT41 ,NO4#b#d1 P4#h#g#a4 _ .<#c.>IBID41 P4#h#f#i4 _ .<#d.>OP4 CIT41 ,NO4#b#d1 P4#h#f#i4 _ .<#e.> .<,FRI$RI* ,ALB]T ,LANGE4 ,N9ETE5?-C5TURY AU?OR ( A ,HI/ORY ( ,MAT]IALISM4 ,SEE ,M>X'S LETT] TO ,DR ,KUGELMANN1 #bg ,JUNE #a#h#g4.> .<#f.>OP4 CIT41 ,NO4#b#c1 P4#h#c#e4 _ .<#g.>IBID41 P4 #h#c#d4 _ .<#h.>OP4 CIT41 ,NO4#b#d1 P4#h#f#i4 _ .<#i.>LOC4 CIT4 _ .<#a.>LOC4 CIT41 P4#h#g#c4 _ .<#a#a.>IBID41 P4#h#f#i4 _ .<#a#b.>LOC4 CIT41 _ .<#a#c.>LOC4 CIT41 P4#h#g4 _ .<#a#d.>LOC4 CIT41 P4#h#g4 _ .<#a#e.>IBID41 P4#h#g#a4 _ .<#a#f.> .<,USUALLY TRANSLAT$ AS 'ECONOMICS'1 BUT ! ,G]MAN T]M HAS C]TA9 CONNOTATIONS :I* MAKE LIT]AL TRANSLATION IMPOSSIBLE - ,$4.> .<#a#g.> .<,WILLIAM ,PETTY 7#a#f#b#c-#h#g74 ,CALL$ BY ,M>X ! F\ND] ( POLITICAL ECONOMY4 ,BORN 9TO A POOR WEAV+ FAMILY 9 ,HAMP%IRE1 HE L$ A V]Y V>I$ C>E] AS SEAMAN1 HAWK]1 PHYSICIAN1 PR(ESSOR ( ANATOMY & MUSIC4 ,$UCAT$ P>TLY 9 ,FRANCE AT A ,JESUIT COLLEGE & AT ,OX=D4 ,WROTE NUM]\S WORKS ON POLITICAL ECONOMY1 E4G4 ,POLITICAL ,>I?METICK1 ,POLITICAL ,ANATOMY ( ,IREL&1 ,A ,TREATISE ( ,TAXES & ,CONTRIBUTIONS4.> .<#a#h.>IBID41 P4#h#g#b4 7,ALL EMPHASIS BY ,BAU]47 _ .<#a#i.>IBID41 P4#h#g#a4 _ .<#b.> ,M>X1 ,CAPITAL1 ,VOL4,I,I,I1 PP4#b#d#f-#g4 .<#b#a.>IBID41 P4#b#d#f4 .<#b#b.>IBID41 PP4#b#e-#e#a4 .<#b#c.>IBID41 P4#b#e#a4 .<#b#d.> ,BAU]1 OP4 CIT41 P4#h#g#b4 _ .<#b#e.> ,M>X1 OP4 CIT41 ,VOL4,I,I,I1 P4#b#d4 .<#b#f.> ,M>X1 ,!ORIES ( ,SURPLUS ,VALUE1 ,VOL4,I,I1 P4#d#g#g4 .<#b#g.>LOC4 CIT4 .<#b#h.>IBID41 P4#d#h#c4 .<#b#i.>IBID41 P4#d#h#d4 7,MY EMPHASIS - ,R4,L47 .<#c.> ,MY EMPHASIS - ,R4,L4 .<#c#a.> ,MY EMPHASIS - ,R4,L4 .<#c#b.> ,BAU]1 OP4 CIT41 P4#h#f#i4 _ .<#c#c.> ,M>X1 OP4 CIT41 P4#f#d#d4 7,MY EMPHASIS - ,R4,L47 .<#c#d.> ,MY EMPHASIS - ,R4,L4 .<#c#e.> ,MY EMPHASIS - ,R4,L4 .<#c#f.> ,MY EMPHASIS - ,R4,L4 .<#c#g.>IBID41 P4#f#c#b-#c4 7,MY EMPHASIS - ,R4,L47 .<#c#h.>IBID41 P4#d#e4 .<#c#i.> . ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #f1 #bba 3 ,*APT] #d -- ,ADD$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/