,SECTION #a1 ,*APT] #e 
,! ,PROBLEM ( ,REPRODUCTION3 ,! ,CIRCULATION ( ,MONEY 

,PEOPLE 3 

,AU?OR 3 ,ROSA ,LUXEMBURG 

,TEXT 3 

,9 \R /UDY ( ! REPRODUCTIVE PROCESS WE HAVE NOT SO F> CONSID]$ ! CIRCULATION ( MONEY4 ,H]E WE DO NOT REF] TO MONEY AS A MEASUR+ ROD1 AN EMBODIM5T ( VALUE1 BECAUSE ALL RELATIONS ( SOCIAL LABOR HAVE BE5 EXPRESS$1 ASSUM$ & MEASUR$ 9 T]MS ( MONEY4 ,:AT WE HAVE TO DO N[ IS TO TE/ \R DIAGRAM ( SIMPLE REPRODUCTION UND] ! ASPECT ( MONEY AS A MEANS ( EX*ANGE4 

,QUESNAY ALREADY SAW ?AT WE %ALL ONLY UND]/& ! SOCIAL REPRODUCTIVE PROCESS IF WE ASSUME1 SIDE BY SIDE ) ! MEANS ( PRODUCTION & CONSUM] GOODS1 A C]TA9 QUANTITY ( MONEY47#a7 

,TWO QUE/IONS N[ >ISE3 

BY :OM %\LD ! MONEY BE [N$1 & 

H[ MU* ( IT %\LD !RE BE8 

,! ANSW] TO ! FIR/ QUE/ION1 NO D\BT1 IS ?AT ! WORK]S RECEIVE !IR WAGES 9 ! =M ( MONEY ) :I* !Y BUY CONSUM] GOODS4 ,FROM ! PO9T ( VIEW ( SOCIETY1 ?IS MEANS M]ELY ?AT ! WORK]S >E ALLOCAT$ A C]TA9 %>E ( ! FUND = CONSUMPTION3 EV]Y SOCIETY1 :ATEV] ITS HI/ORICAL =M ( PRODUCTION1 MAKES SU* ALLOCATIONS TO ITS WORK]S4 ,IT IS1 H[EV]1 AN ESS5TIAL *>ACT]I/IC ( ! CAPITALI/ =M ( PRODUCTION ?AT ! WORK]S DO NOT OBTA9 !IR %>E DIRECTLY 9 ! =M ( GOODS BUT BY WAY ( COMMODITY EX*ANGE1 JU/ AS IT IS AN ESS5TIAL FEATURE ( ! CAPITALI/ MODE ( PRODUCTION ?AT !IR LABOR P[] IS NOT APPLI$ DIRECTLY1 AS A RESULT ( A RELATION ( P]SONAL DOM9ATION1 BUT AGA9 BY WAY ( COMMODITY EX*ANGE3 ! WORK]S SELL+ !IR LABOR P[] TO ! [N]S ( ! MEANS ( PRODUCTION1 & PUR*AS+ FREELY !IR CONSUM] GOODS4 ,V>IABLE CAPITAL 9 ITS MONEY =M IS ! EXPRESSION & M$IUM ( BO? !SE TRANSACTIONS4 

,MONEY1 !N1 COMES FIR/ 9TO CIRCULATION BY ! PAYM5T ( WAGES4 ,! CAPITALI/ CLASS MU/ !RE=E SET A C]TA9 QUANTITY ( MONEY CIRCULAT+ 9 ! FIR/ PLACE1 & ?IS MU/ BE EQUAL TO ! AM\NT !Y PAY 9 WAGES4 ,! CAPITALI/S ( ,DEP>TM5T ,I NE$ #a1 UNITS ( MONEY1 & ! CAPITALI/S ( ,DEP>TM5T ,I,I NE$ #e TO MEET !IR WAGES BILL4 ,?US1 ACCORD+ TO \R DIAGRAM1 TWO QUANTITIES ( MONEY >E CIRCULAT+3 ,I7#a1V7 & ,I,I7#eV74 ,! WORK]S SP5D ! TOTAL ( #a1#e ON CONSUM] GOODS1 I4E ON ! PRODUCTS ( ,DEP>TM5T ,I,I4 ,9 ?IS WAY1 LABOR P[] IS MA9TA9$1 ?AT IS TO SAY ! V>IABLE CAPITAL ( SOCIETY IS REPRODUC$ 9 ITS NATURAL =?1 AS ! F\NDATION ( ALL O!R REPRODUCTIONS ( CAPITAL4 ,AT ! SAME TIME1 ! CAPITALI/S ( ,DEP>TM5T ,I,I DISPOSE ( !IR AGGREGATE PRODUCT 7#a1#e7 9 ! FOLL[+ MANN]3 !IR [N WORK]S RECEIVE #e & ! WORK]S ( ,DEP>TM5T ,I RECEIVE #a14 ,?IS EX*ANGE GIVES ! CAPITALI/S ( ,DEP>TM5T ,I,I POSSESSION ( #a1#e MONEY UNITS3 #e >E !IR [N V>IABLE CAPITAL :I* HAS RETURN$ TO !M2 !SE MAY />T CIRCULAT+ AGA9 AS V>IABLE CAPITAL BUT = ! TIME BE+ !Y HAVE COMPLET$ !IR C\RSE4 ,! O!R #a1 ACCRUE TO !M YE> BY YE> \T ( ! REALIZATION ( ONE ?IRD ( !IR [N PRODUCTS4 ,! CAPITALI/S ( ,DEP>TM5T ,I,I N[ BUY MEANS ( PRODUCTION FROM ! CAPITALI/S ( ,DEP>TM5T ,I = !SE #a1 MONEY UNITS 9 ORD] TO R5EW ! P>T ( !IR [N CON/ANT CAPITAL ?AT HAS BE5 US$ UP4 ,BY MEANS ( ?IS PUR*ASE1 ,DEP>TM5T ,I,I R5EWS 9 ITS NATURAL =M HALF ( ! CON/ANT CAPITAL ,I,IC IT REQUIRES4 ,DEP>TM5T ,I N[ HAS 9 RETURN #a1 MONEY UNITS :I* >E NO?+ MORE ?AN ! MONEY ORIG9ALLY PAID TO ITS [N WORK]S4 ,N[1 AFT] HAV+ *ANG$ H&S TWICE1 ! MONEY HAS RETURN$ TO ,DEP>TM5T ,I1 TO BECOME EFFECTIVE LAT] AS V>IABLE CAPITAL4 ,?IS COMPLETES ! CIRCULATION ( ?IS QUANTITY ( MONEY = ! MOM5T1 BUT ! CIRCULATION )9 SOCIETY HAS NOT YET COME TO AN 5D4 ,! CAPITALI/S ( ,DEP>TM5T ,I HAVE NOT YET REALIZ$ !IR SURPLUS VALUE TO BUY CONSUM] GOODS = !MSELVES2 IT IS /ILL CONTA9$ 9 !IR PRODUCT 9 A =M :I* IS ( NO USE TO !M4 ,MOREOV]1 ! CAPITALI/S ( ,DEP>TM5T ,I,I HAVE NOT YET R5EW$ ! SECOND HALF ( !IR CON/ANT CAPITAL4 ,!SE TWO ACTS ( EX*ANGE >E ID5TICAL BO? 9 SUB/ANCE & 9 VALUE1 = ! CAPITALI/S ( ,DEP>TM5T ,I RECEIVE !IR GOODS FROM ,DEP>TM5T ,I,I 9 EX*ANGE = ! ,I7#a1C7 MEANS ( PRODUCTION NE$$ BY ! CAPITALI/S ( ,DEP>TM5T ,I,I4 ,H[EV]1 A NEW QUANTITY ( MONEY IS REQUIR$ TO EFFECT ?IS EX*ANGE4 ,IT IS TRUE ?AT ! SAME MONEY :I* HAS ALREADY COMPLET$ ITS C\RSE1 MI<T BE BR\<T 9TO CIRCULATION AGA9 = ?IS PURPOSE - 9 !ORY1 !RE C\LD BE NO OBJECTION TO ?IS4 ,9 PRACTICE1 H[EV]1 ?IS SOLUTION IS \T ( ! QUE/ION1 = ! NE$S ( ! CAPITALI/S1 AS CONSUM]S1 MU/ BE SATISFI$ JU/ AS CON/ANTLY AS ! NE$S ( ! WORK]S - !Y RUN P>ALLEL TO ! PROCESS ( PRODUCTION & MU/ BE M$IAT$ BY SPECIFIC QUANTITIES ( MONEY4 ,H5CE IT FOLL[S ?AT ! CAPITALI/S ( BO? DEP>TM5TS - ?AT IS TO SAY ALL CAPITALI/S - MU/ HAVE A FUR!R CA% RES]VE 9 H&1 9 ADDITION TO ! MONEY REQUIR$ AS V>IABLE CAPITAL1 9 ORD] TO REALIZE !IR [N SURPLUS VALUE 9 ! =M ( CONSUM] GOODS4 ,ON ! O!R H&1 BE=E ! TOTAL PRODUCT IS REALIZ$ & DUR+ ! PROCESS ( ITS PRODUCTION1 C]TA9 P>TS DF ! CON/ANT CAPITAL MU/ BE B\<T CONT9UALLY4 ,!SE >E ! CIRCULAT+ P>TS ( ! CON/ANT CAPITAL1 SU* AS RAW & AUXILI>Y MAT]IALS1 SEMI-F9I%$ GOODS1 LI<T+ & ! LIKE4 ,!RE=E1 NOT ONLY MU/ ! CAPITALI/S ( ,DEP>TM5T ,I HAVE C]TA9 QUANTITIES ( MONEY 9 H& TO SATISFY !IR NE$S AS CONSUM]S1 BUT ! CAPITALI/S ( ,DEP>TM5T ,I,I MU/ ALSO HAVE MONEY TO MEET ! REQUIREM5TS ( !IR CON/ANT CAPITAL4 ,! EX*ANGE ( #a1S ,I 7! SURPLUS VALUE ( ,DEP>TM5T ,I CONTA9$ 9 ! MEANS ( PRODUCTION7 AGA9/ GOODS IS ?US EFFECT$ BY MONEY :I* IS ADVANC$ P>TLY BY ! CAPITALI/S ( ,DEP>TM5T ,I 9 ORD] TO SATISFY !IR NE$S AS CONSUM]S1 & P>TLY BY ! CAPITALI/S ( ,DEP>TM5T ,I,I 9 ORD] TO SATISFY !IR NE$S AS PRODUC]S47#b7 ,BO? LOTS ( CAPITALI/S MAY EA* ADVANCE #e UNITS ( ! MONEY NECESS>Y = ! EX*ANGE1 OR POSSIBLY ! TWO DEP>TM5TS WILL CONTRIBUTE 9 DIFF]5T PROPORTIONS4 ,AT ANY RATE1 TWO ?+S1 >E C]TA93 

! MONEY SET ASIDE = ! PURPOSE BY 44BO? DEP>TM5TS MU/ SUFFICE TO EFFECT ! EX*ANGE BETWE5 ,I7#a1S7 & ,I,I7#a1C72 

:ATEV] ! DI/RIBUTION ( ?IS MONEY1 BETWE5 ! TWO DEP>TM5TS MAY HAVE BE51 ! EX*ANGE TRANSACTION COMPLET$1 EA* DEP>TM5T ( CAPITALI/ PRODUCTION MU/ AGA9 POSSESS ! SAME AM\NT ( MONEY IT HAD E>LI] PUT 9TO CIRCULATION4 

,?IS LATT] MAXIM APPLIES QUITE G5]ALLY TO SOCIAL CIRCULATION AS A :OLE3 ONCE ! PROCESS ( CIRCULATION IS CONCLUD$1 MONEY WILL ALWAYS HAVE RETURN$ TO ITS PO9T ( ORIG94 ,?US ALL CAPITALI/S1 AFT] UNIV]SAL EX*ANGE1 HAVE A*IEV$ A TW(OLD RESULT3 FIR/ !Y HAVE EX*ANG$ PRODUCTS :I*1 9 !IR NATURAL =M1 W]E ( NO USE TO !M1 AGA9/ O!R PRODUCTS :I*1 9 !IR NATURAL =M1 ! CAPITALI/S REQUIRE EI!R AS MEANS ( PRODUCTION OR = !IR [N CONSUMPTION4 ,SECONDLY1 !Y HAVE REGA9$1 POSSESSION ( ! MONEY :I* !Y SET 9 CIRCULATION SO AS TO EFFECT !SE ACTS ( EX*ANGE4 

,?IS PH5OM5ON IS UN9TELLIGIBLE FROM ! PO9T ( VIEW ( SIMPLE COMMODITY CIRCULATION1 :]E COMMODITY & MONEY CONT9UALLY *ANGE PLACES - POSSESSION ( ! COMMODITY EXCLUD+ ! POSSESSION ( MONEY1 AS MONEY CON/ANTLY USURPS ! PLACE :I* ! COMMODITY1 HAS GIV5 UP1 & VICE V]SA4 ,9DE$1 ?IS IS P]FECTLY TRUE ) REG>D TO EV]Y 9DIVIDUAL ACT ( COMMODITY EX*ANGE :I* IS ! =M ( SOCIAL CIRCULATION4 ,YET ?IS SOCIAL CIRCULATION ITSELF IS MORE ?AN M]E EX*ANGE ( COMMODITIES3 IT IS ! CIRCULATION ( CAPITAL4 ,IT IS1 H[EV]1 AN ESS5TIAL & *>ACT]I/IC FEATURE ( ?IS K9D ( CIRCULATION1 ?AT IT DOES NOT ONLY RETURN TO ! CAPITALI/ ! VALUE1 ( HIS ORIG9AL CAPITAL PLUS AN 9CREASE ! SURPLUS VALUE1 BUT ?AT IT ALSO ASSI/S SOCIAL REPRODUCTION BY PROVID+ ! MEANS ( PRODUCTION & LABOR P[] 9 ! NATURAL =M ( PRODUCTIVE CAPITAL1 & BY 5SUR+ !1 MA9T5ANCE ( ?OSE :O DO NOT WORK4 ,POSSESS+ BO? ! MEANS ( PRODUCTION & ! MONEY NE$$1 ! CAPITALI/S />T ! TOTAL SOCIAL PROCESS ( CIRCULATION AS SOON A ! SOCIAL CAPITAL HAS COMPLET$ ITS CIRCUIT1 EV]Y?+ IS AGA9 9 !IR H&S1 APPORTION$ TO EA* DEP>TM5T ACCORD+ TO ! 9VE/M5TS MADE BY IT4 ,! WORK]S HAVE ONLY TEMPOR>Y POSSESSION ( MONEY DUR+ :I* TIME !Y CONV]T ! V>IABLE CAPITAL FROM ITS MONEY =M 9TO ITS NATURAL =M4 ,! V>IABLE CAPITAL 9 ! CAPITALI/S' H&S IS NO?+ BUT ! \TW>D %APE ( P>T ( !IR CAPITAL1 & = ?IS REASON IT MU/ ALWAYS REV]T TO !M4 

,SO F>1 WE HAVE ONLY CONSID]$ CIRCULATION AS IT TAKES PLACE BETWE5 ! TWO L>GE DEP>TM5TS ( PRODUCTION4 ,YET #d1 UNITS ( ! FIR/ ,DEP>TM5T'S PRODUCE REMA9 !RE 9 ! =M ( MEANS ( PRODUCTION TO R5EW ITS CON/ANT CAPITAL ( #d1C4 ,MOREOV] #e ( ! CONSUM] GOODS PRODUC$ 9 ,DEP>TM5T ,I,I .<CORRESPOND+ TO ! SURPLUS VALUE ,I,I7#eS7.> ALSO REMA9 9 ?IS DEP>TM5T 9 ! =M ( CONSUM] GOODS = ! CAPITALI/ CLASS4 ,S9CE 9 BO? DEP>TM5TS ! MODE ( PRODUCTION IS CAPITALI/IC1 ?AT IS UNPLANN$1 PRIVATE PRODUCTION1 EA* DEP>TM5T CAN DI/RIBUTE ITS [N PRODUCTS - MEANS ( PRODUCTION 9 ,DEP>TM5T ,I & CONSUM] GOODS 9 ,DEP>TM5T ,I,I - AMONG ITS [N CAPITALI/S ONLY BY WAY ( COMMODITY EX*ANGE1 I4E BY A L>GE NUMB] ( 9DIVIDUAL SALE TRANSACTIONS BETWE5 CAPITALI/S ( ! SAME DEP>TM5T4 ,!RE=E ! CAPITALI/S ( BO? DEP>TM5TS MU/ HAVE A RES]VE ( MONEY ) :I* TO P]=M !SE EX*ANGE TRANSACTIONS - TO R5EW BO? ! MEANS ( PRODUCTION 9 ,DEP>TM5T ,I & ! CONSUM] GOODS = ! CAPITALI/ CLASS 9 ,DEP>TM5T ,I,I4 ,?IS P>T ( CIRCULATION DOES NOT PRES5T ANY FEATURES ( SPECIFIC 9T]E/1 AS IT IS M]ELY SIMPLE COMMODITY CIRCULATION4 ,V5DOR & PUR*AS] ALIKE BELONG TO ! SAME CATEGORY ( AG5TS ( PRODUCTION1 & CIRCULATION IS CONC]N$ ONLY ) MONEY & COMMODITY *ANG+ H&S )9 ! SAME CLASS & DEP>TM5T4 ,ALL ! SAME1 ! MONEY NE$$ = ?IS CIRCULATION MU/ FROM ! \TSET BE 9 ! H&S ( ! CAPITALI/ CLASS3 IT IS P>T ( !IR CAPITAL4 

,SO F>1 ! CIRCULATION ( TOTAL SOCIAL CAPITAL PRES5TS NO PECULI>ITIES1 EV5 IF WE CONSID] ! CIRCULATION ( MONEY4 ,FROM ! V]Y \TSET IT IS SELF-EVID5T ?AT SOCIETY MU/ POSSESS A C]TA9 QUANTITY ( MONEY TO MAKE ?IS CIRCULATION POSSIBLE1 & ?IS = TWO REASONS3 FIR/1 ! G5]AL =M ( CAPITALI/ PRODUCTION IS ?AT ( COMMODITY PRODUCTION :I* IMPLIES ! CIRCULATION ( MONEY2 SECONDLY1 ! CIRCULATION ( CAPITAL IS BAS$ UPON ! CONT9U\S ALT]NATION ( ! ?REE =MS ( CAPITAL3 MONEY CAPITAL1 PRODUCTIVE CAPITAL1 & COMMODITY CAPITAL4 ,& AS IT IS ?IS V]Y MONEY1 F9ALLY1 :I* OP]ATES AS CAPITAL - \R DIAGRAM REF]R+ TO CAPITALI/ PRODUCTION EXCLUSIVELY - ! CAPITALI/ CLASS MU/ HAVE POSSESSION ( ?IS MONEY1 AS IT HAS POSSESSION ( EV]Y O!R =M ( CAPITAL2 IT ?R[S IT 9TO CIRCULATION 9 ORD] TO REGA9 POSSESSION AS SOON AS ! PROCESS ( CIRCULATION HAS BE5 COMPLET$4 

,AT FIR/ GLANCE1 ONLY ONE DETAIL MI<T /RIKE US3 IF ! CAPITALI/ !MSELVES HAVE SET 9 MOTION ALL ! MONEY :I* CIRCULATES 9 SOCIETY1 !Y MU/ ALSO ADVANCE ! MONEY NE$$ = ! REALIZATION ( !IR [N SURPLUS VALUE4 ,?US IT SEEMS ?AT ! CAPITALI/S AS A CLASS \<T TO BUY !IR [N SURPLUS VALUE ) !IR [N MONEY4 ,AS ! CAPITALI/ CLASS HAS POSSESSION ( ?IS MONEY RESULT+ FROM PREVI\S P]IODS ( PRODUCTION1 EV5 PRIOR TO ! REALIZATION ( ! PRODUCT ( EA* WORK+ P]IOD1 ! APPROPRIATION ( SURPLUS VALUE AT FIR/ SI<T DOES NOT SEEM TO BE BAS$ UPON ! UNPAID LABOR ( ! WAGE LABOR] - AS IT 9 FACT IS - BUT M]ELY ! RESULT ( AN EX*ANGE ( COMMODITIES AGA9/ AN EQUIVAL5T QUANTITY ( MONEY BO? SUPPLI$ BY ! CAPITALI/ CLASS ITSELF4 ,A LITTLE REFLECTION1 H[EV]1 DISPELS ?IS ILLUSION4 ,AFT] ! G5]AL COMPLETION ( CIRCULATION1 ! CAPITALI/S1 N[ AS BE=E1 POSSESS !IR MONEY FUNDS :I* EI!R REV]T$ TO !M OR REMA9$ 9 !IR H&S4 ,FUR!R1 !Y ACQUIR$ CONSUM] GOODS = ! SAME AM\NT :I* !Y HAVE CONSUM$4 7,NOTE ?AT WE >E /ILL CONF9+ \RSELVES TO SIMPLE REPRODUCTION AS !1 PRIME CONDITION ( \R DIAGRAM ( REPRODUCTION3 ! R5EWAL ( PRODUCTION ON ! OLD SCALE & ! USE ( ALL SURPLUS VALUE PRODUC$ = ! P]SONAL CONSUMPTION ( ! CAPITALI/ CLASS47 

,MOREOV]1 ! ILLUSION VANI%ES COMPLETELY IF WE DO NOT CONF9E \RSELVES TO ONE P]IOD ( PRODUCTION BUT OBS]VE A NUMB] ( SUCCESSIVE P]IODS 9 !IR MUTUAL 9T]CONNECTIONS4 ,! VALUE ! CAPITALI/ PUTS 9TO CIRCULATION TO-DAY 9 ! =M ( MONEY = ! PURPOSE ( REALIZ+ HIS [N SURPLUS VALUE1 IS 9 FACT NO?+ BUT HIS SURPLUS VALUE RESULT+ FROM ! PREC$+ P]IOD ( PRODUCTION 9 =M ( MONEY4 ,! CAPITALI/ MU/ ADVANCE MONEY \T ( HIS [N POCKET 9 ORD] TO BUY HIS GOODS = CONSUMPTION4 ,ON ! ONE H&1 ! SURPLUS VALUE :I* HE PRODUCES EA* YE> EI!R EXI/S 9 A NATURAL-=M :I* R5D]S IT UNFIT = CONSUMPTION1 OR1 IF IT TAKES A CONSUMABLE =M1 IT IS TEMPOR>ILY 9 ! H&S ( ANO!R P]SON4 ,ON ! O!R H&1 HE 7! CAPITALI/7 HAS REGA9$ POSSESSION ( ! MONEY1 & HE IS N[ MAK+ HIS ADVANCES BY REALIZ+ HIS SURPLUS VALUE FROM ! PREC$+ P]IOD4 ,AS SOON AS HE HAS REALIZ$ HIS NEW SURPLUS VALUE1 :I* IS /ILL EMBODI$ 9 ! COMMODITY =M1 ?IS MONEY WILL RETURN TO HIM4 ,CONSEQU5TLY1 9 ! C\RSE ( SEV]AL P]IODS ( PRODUCTION1 ! CAPITALI/ CLASS DRAWS ITS CONSUM] GOODS FROM ! POOL1 AS WELL AS ! O!R NATURAL =MS ( ITS CAPITAL4 ,! QUANTITY ( MONEY ORIG9ALLY 9 ITS POSSESSION1 H[EV]1 REMA9S UNAFFECT$ BY ?IS PROCESS4 

,9VE/IGATION ( ! CIRCULATION ( MONEY 9 SOCIETY %[S ?AT ! 9DIVIDUAL CAPITALI/ CAN NEV] 9VE/ ! :OLE ( HIS MONEY CAPITAL 9 PRODUCTION BUT MU/ ALWAYS KEEP A C]TA9 MONEY RES]VE TO BE EMPLOY$ AS V>IABLE CAPITAL1 I4E AS WAGES4 ,FUR!R1 HE MU/ KEEP A CAPITAL RES]VE = ! PUR*ASE ( MEANS ( PRODUCTION AT ANY GIV5 P]IOD1 & 9 ADDITION1 HE MU/ HAVE A CA% RES]VE = HIS P]SONAL CONSUMPTION4 

,! PROCESS ( REPRODUC+ ! TOTAL SOCIAL CAPITAL ?US 5TAILS ! NECESSITY ( PRODUC+ & REPRODUC+ ! SUB/ANCE ( MONEY4 ,MONEY IS ALSO CAPITAL1 = ,M>X'S DIAGRAM :I* WE HAVE DISCUSS$ BE=E1 CONCEIVES ( NO O!R ?AN CAPITALI/ PRODUCTION4 ,?US ! DIAGRAM SEEMS 9COMPLETE4 ,WE \<T TO ADD A FUR!R DEP>TM5T1 ?AT ( PRODUCTION ( ! MEANS ( EX*ANGE1 TO ! O!R TWO L>GE DEP>TM5TS ( SOCIAL PRODUCTION .<?OSE ( MEANS ( PRODUCTION 7,I7 & ( CONSUM] GOODS 7,I,I7.>4 ,IT IS1 9DE$1 A *>ACT]I/IC FEATURE ( ?IS ?IRD DEP>TM5T ?AT IT S]VES NEI!R ! PURPOSES ( PRODUCTION NOR ?OSE ( CONSUMPTION1 M]ELY REPRES5T+ SOCIAL LABOR 9 AN UNDIFF]5TIAT$ COMMODITY ?AT CANNOT BE US$4 ,?\< MONEY & ITS PRODUCTION1 LIKE ! EX*ANGE & PRODUCTION ( COMMODITIES1 >E MU* OLD] ?AN ! CAPITALI/ MODE ( PRODUCTION1 IT WAS ONLY ! LATT] :I* MADE ! CIRCULATION ( MONEY A G5]AL =M ( SOCIAL CIRCULATION1 & ?US ! ESS5TIAL ELEM5T ( ! SOCIAL REPRODUCTIVE PROCESS4 ,WE CAN ONLY OBTA9 A COMPREH5SIVE DIAGRAM ( ! ESS5TIAL PO9TS ( CAPITALI/ PRODUCTION IF WE DEMON/RATE ! ORIG9AL RELATION%IP BETWE5 ! PRODUCTION & REPRODUCTION ( MONEY & ! TWO O!R DEP>TM5TS ( SOCIAL PRODUCTION4 

,H]E1 H[EV]1 WE DEVIATE FROM ,M>X4 ,HE 9CLUD$ ! PRODUCTION ( GOLD 7WE HAVE R$UC$ ! TOTAL PRODUCTION ( MONEY TO ! PRODUCTION ( GOLD = ! SAKE ( SIMPLICITY7 9 ! FIR/ DEP>TM5T ( SOCIAL PRODUCTION4 

0,! PRODUCTION ( GOLD1 LIKE ?AT ( METALS G5]ALLY1 BELONGS TO DEP>TM5T #a1 :I* OCCUPIES ITSELF ) MEANS ( PRODUCTION407#c7 

,?IS IS CORRECT ONLY 9 SO F> AS ! PRODUCTION ( GOLD IS ! PRODUCTION ( METAL = 9DU/RIAL PURPOSES 7JEWELRY1 D5TAL TOPP+S1 ETC474 ,BUT GOLD 9 ITS CAPACITY AS MONEY IS NOT A METAL BUT RA!R AN EMBODIM5T ( SOCIAL LABOR 9 AB/RACTO4 ,?US IT IS NO MORE A MEANS ( PRODUCTION ?AN IT IS A CONSUM] GOOD4 ,BESIDES1 A M]E GLANCE AT ! DIAGRAM ( REPRODUCTION ITSELF %[S :AT 9CONSI/5CIES MU/ RESULT FROM CONFUS+ MEANS ( EX*ANGE ) MEANS ( PRODUCTION4 ,IF WE ADD A DIAGRAMMATIC REPRES5TATION ( ! ANNUAL PRODUCTION ( GOLD AS ! SUB/ANCE ( MONEY TO ! TWO DEP>TM5TS ( SOCIAL PRODUCTION1 WE GET ! FOLL[+ ?REE SETS ( FIGURES3 

  ,I4 #d1C "4  #a1V "4 #a1S "7 #f1 MEANS ( PRODUCTION 

 ,I,I4 #b1C "4    #eV "4    #eS "7 #c1 MEANS ( SUBSI/5CE 

,I,I,I4      #bC "4        #eV "4        #eS "7      #c MEANS ( EX*ANGE 

,?IS QUANTITY ( VALUE ( #c1 *OS5 BY ,M>X AS AN EXAMPLE1 OBVI\SLY DOES1 NOT REPRES5T ! QUANTITY ( MONEY :I* CIRCULATES ANNUALLY 9 SOCIETY2 IT ONLY /&S = ?AT P>T :I* IS ANNUALLY REPRODUC$1 ! ANNUAL WE>1 & TE> ( ! MONEY SUB/ANCE :I*1 ON ! AV]AGE1 REMA9S CON/ANT SO LONG AS SOCIAL REPRODUCTION REMA9S ON ! SAME LEVEL4 ,! TURNOV] ( CAPITAL GOES ON 9 A REGUL> MANN] & !1REALIZATION ( COMMODITIES PROCE$ SAT AN EQUAL PACE4 ,IF WE CONSID] ! ?IRD L9E AS AN 9TEGRAL P>T ( ! FIR/ ONE1 AS ,M>X WANTS US TO DO1 ! FOLL[+ DIFFICULTY >ISES3 ! CON/ANT CAPITAL ( ! ?IRD DEP>TM5T CONSI/S ( REAL & CONCRETE MEANS ( PRODUCTION1 PREMISES1 TOOLS1 AUXILI>Y MAT]IALS1 VESSELS1 & ! LIKE1 JU/ AS IT DOES 9 ! TWO O!R DEP>TM5TS4 ,ITS PRODUCT1 H[EV]1 ! #cG :I* REPRES5T MONEY1 CANNOT OP]ATE 9 ITS NATURAL =MULAS CON/ANT CAPITAL 9 ANY PROCESS ( PRODUCTION4 ,IF WE !RE=E 9CLUDE ?IS #cG AS AN ESS5TIAL P>T ( ! PRODUCT ( ,DEP>TM5T ,I 7#f1 MEANS ( PRODUCTION7 ! MEANS ( PRODUCTION WILL %[ A SOCIAL DEFICIT ( ?IS SIZE :I* WILL PREV5T ,DEP>TM5TS ,I & ,I,I FROM RESUM+ !IR REPRODUCTION ON ! OLD SCALE4 ,ACCORD+ TO ! PREVI\S ASSUMPTION - :I* =MS ! F\NDATION ( ,M>X'S :OLE DIAGRAM - REPRODUCTION AS A :OLE />TS FROM ! PRODUCT ( EA* DEP>TM5T 9 ITS ACTUAL USE=M4 ,! PROPORTIONS ( ! DIAGRAM >E BAS$ UPON ?IS ASSUMPTION2 )\T IT1 !Y DISSOLVE 9 *AOS4 ,?US ! FIR/ FUNDAM5TAL RELATION ( VALUE IS BAS$ UPON ! EQUATION3 ,I7#f17 EQUALS ,I7#d17 "4 ,I,I7#b174 ,?IS CANNOT APPLY TO ! PRODUCT ,I,I,I7#cG71 S9CE NEI!R DEP>TM5T CAN USE GOLD AS A MEANS ( PRODUCTION .<SAY1 9 ! PROPORTION ( ,I7#bC7 "4 ,I,I7#aC7.>4 ,! SECOND FUNDAM5TAL RELATION D]IV$ FROM ?IS IS BAS$ UPON ! EQUATION ,I7#a1V7 "4 ,I7#a1S7 "7 ,I,I7#b174 ,?IS W\LD MEAN1 ) REG>D TO ! PRODUCTION ( GOLD1 ?AT AS MANY CONSUM] GOODS >E TAK5 FROM ,DEP>TM5T ,I,I AS !RE >E MEANS ( PRODUCTION SUPPLI$ TO IT4 ,BUT ?IS IS EQUALLY UNTRUE4 ,?\< ! PRODUCTION ( GOLD REMOVES CONCRETE MEANS ( PRODUCTION FROM ! TOTAL SOCIAL PRODUCT & USES !M AS ITS CON/ANT CAPITAL1 ?\< IT TAKES CONCRETE CONSUM] GOODS = ! USE ( ITS WORK]S & CAPITALI/S1 CORRESPOND+ TO ITS V>IABLE CAPITAL & SURPLUS VALUE1 ! PRODUCT IT SUPPLIES YET CANNOT OP]ATE 9 ANY BRAN* ( PRODUCTION AS A MEANS ( PRODUCTION1 NOR IS IT A CONSUM] GOOD1 FIT = HUMAN CONSUMPTION4 ,TO 9CLUDE ! PRODUCTION ( MONEY 9 ! ACTIVITIES ( ,DEP>TM5T ,I1 !RE=E1 IS TO RUN C\NT] TO ALL ! G5]AL PROPORTIONS :I* EXPRESS ! RELATIONS ( VALUE 9 ,M>X'S DIAGRAM1 & TO DIM9I% ! DIAGRAM'S VALIDITY4 

,! ATTEMPT BY ,M>X TO F9D ROOM = ! PRODUCTION ( GOLD )9 ,DEP>TM5T ,I 7MEANS ( PRODUCTION7 MOREOV] LEADS TO DUBI\S RESULTS4 ,! FIR/ ACT ( CIRCULATION BETWE5 ?IS NEW SUB-,DEP>TM5T 7CALL$ BY ,M>X ,IG7 & ,DEP>TM5T ,I,I 7CONSUM] GOODS7 CONSI/S AS USUAL 9 ! WORK]S' PUR*ASE ( CONSUM] GOODS FROM ,DEP>TM5T ,I,I ) ! MONEY OBTA9$ AS WAGES FROM ! CAPITALI/S4 ,?IS MONEY IS NOT YET A PRODUCT ( ! NEW P]IOD ( PRODUCTION4 ,IT HAS BE5 RES]V$ BY ! CAPITALI/S ( ,DEP>TM5T ,IG \T ( ! MONEY CONTA9$ 9 !IR PRODUCT ( AN E>LI] P]IOD4 ,?IS1 9DE$1 IS ! NORMAL PROC$URE4 ,BUT N[ ,M>X ALL[S ! CAPITALI/S ( ,DEP>TM5T ,I,I TO BUY GOLD FROM ,IG ) ! MONEY !Y HAVE RES]V$1 GOLD AS A COMMODITY MAT]IAL TO ! VALUE ( #b4 ,?IS IS A LEAP FROM ! PRODUCTION ( MONEY 9TO ! 9DU/RIAL PRODUCTION ( GOLD :I* IS NO MORE TO DO ) ! PROBLEM ( ! PRODUCTION ( MONEY ?AN ) ! PRODUCTION ( BOOT-POLI%4 ,YET \T ( ! #e ,IG V ?AT HAVE BE5 RES]V$1 #c /ILL REMA91 & AS ! CAPITALI/1 UNABLE TO USE !M AS CON/ANT CAPITAL1 DOES NOT KN[ :AT TO DO ) !M1 ,M>X >RANGES = HIM TO ADD !M ON TO HIS [N RES]VE ( MONEY4 ,M>X FUR!R F9DS ! FOLL[+ WAY \T TO AVOID A DEFICIT 9 ! CON/ANT CAPITAL ( ,I,I :I* MU/ BE EX*ANG$ COMPLETELY AGA9/ ! MEANS ( PRODUCTION 7,IV "4 ,IS73 

0,!RE=E1 ?IS MONEY MU/ BE 5TIRELY TRANSF]R$ FROM LIE TO US1 NO MATT] :E!R IT EXI/S 9 NECESSITIES ( LIFE OR >TICLES ( LUXURY1 & VICE V]SA1 A CORRESPOND+ VALUE ( COMMODITIES MU/ BE TRANSF]R$ FROM ,I,IS TO ,I,IC4 ,RESULT3 ,A PORTION ( ! SURPLUS-VALUE IS ACCUMULAT$ AS A HO>D ( MONEY407#d7 

,A /RANGE RESULT1 9 ALL CONSCI5CE6 ,WE HAVE A*IEV$ AN 9CREASE 9 MONEY1 A SURPLUS ( ! MONEY SUB/ANCE1 BY SIMPLY CONF9+ \RSELVES TO ! ANNUAL WE> & TE> ( ! MONEY F9D4 ,?IS SURPLUS VALUE COMES 9TO EXI/5CE1 = SOME UNKN[N REASON1 AT ! EXP5SE ( ! CAPITALI/S 9 ! CONSUM] GOODS DEP>TM5T4 ,!Y PRACTICE AB/95CE1 NOT BECAUSE !Y MAY WANT TO EXP& !IR PRODUCTION ( SURPLUS VALUE1 LET US SAY1 BUT 9 ORD] TO SECURE A SUFFICI5T QUANTITY ( CONSUM] GOODS = ! WORK]S 5GAG$ 9 ! PRODUCTION ( GOLD4 

,! CAPITALI/S ( ,DEP>TM5T ,I,I1 H[EV]1 GET POOR REW>D = ?IS ,*RI/IAN VIRTUE4 ,9 SPITE ( !IR AB/95CE1 !Y >E NOT ONLY UNABLE TO EXP& !IR REPRODUCTION1 BUT !Y >E NO LONG] EV5 9 ! POSITION TO RESUME !IR PRODUCTION ON ITS =M] SCALE4 ,EV5 IF ! CORRESPOND+ COMMODITY VALUE IS TRANSF]R$ FROM ,I,IG TO ,I,IC1 IT IS NOT ONLY ! VALUE BUT ITS ACTUAL & CONCRETE =T7 :I* MATT]S4 ,AS ! NEW P>T ( ! PRODUCT ( ,I N[ CONSI/S ( MONEY :I* CANNOT BE US$ AS A MEANS ( PRODUCTION1 ,DEP>TM5T ,I,I1 9 SPITE ( ITS AB/95CE1 CANNOT R5EW ITS CON/ANT MAT]IAL CAPITAL ON ! OLD SCALE4 ,AS \R DIAGRAM PRESUPPOSES SIMPLE REPRODUCTION1 ITS CONDITIONS >E ?US VIOLAT$ 9 TWO DIRECTIONS3 SURPLUS VALUE IS BE+ HO>D$1 & ! CON/ANT CAPITAL %[S A DEFICIT4 ,M>X'S [N RESULTS1 !N1 PROVE ?AT ! PRODUCTION ( GOLD CANNOT POSSIBLY F9D A PLACE 9 EI!R ( ! TWO DEP>TM5TS ( HIS DIAGRAM2 ! :OLE DIAGRAM IS UPSET AS SOON AS ! FIR/ ACT ( EX*ANGE BETWE5 ,DEP>TM5TS ,I & ,I,I HAS BE5 COMPLET$4 ,AS ,5GELS REM>KS1 9 HIS FOOTNOTE1 '! ANALYSIS ( ! EX*ANGE ( NEWLY PRODUC$ GOLD )9 ! CON/ANT CAPITAL ( ,DEP>TM5T ,I IS NOT CONTA9$ 9 ! ,M,S4'7#e7 ,BESIDES1 ! 9CONSI/5CY W\LD !N ONLY HAVE BE5 GREAT]4 ,! PO9T ( VIEW WE ADVOCATE IS CONFIRM$ BY ,M>X HIMSELF :5 HE GIVES AN EXHAU/IVE ANSW] TO ! QUE/ION1 AS /RIK+ AS IT IS BRIEF3 ',MONEY 9 ITSELF IS NOT AN ELEM5T ( ACTUAL REPRODUCTION4'7#f7 

,!RE IS ANO!R IMPORTANT REASON :Y WE %\LD PUT ! PRODUCTION ( MONEY 9 A ?IRD & SEP>ATE DEP>TM5T ( SOCIAL PRODUCTION AS A :OLE3 ,M>X'S DIAGRAM ( SIMPLE REPRODUCTION IS VALID AS ! />T+-PO9T & F\NDATION ( ! REPRODUCTIVE PROCESS NOT ONLY = CAPITALISM BUT ALSO1 MUTATIS MUTAUDIS1 = EV]Y REGULAT$ & PLANN$ ECONOMIC ORD]1 = 9/ANCE A SOCIALI/ ONE4 ,H[EV]1 ! PRODUCTION ( MONEY1 JU/ LIKE ! COMMODITY-=M ( ! PRODUCTS1 BECOMES OBSOLETE :5 PRIVATE [N]%IP ( ! MEANS ( PRODUCTION IS ABOLI%$4 ,IT CON/ITUTES ! 'ILLEGITIMATE' LIABILITIES1 ! FAUX FRAIS ( ! AN>*IC ECONOMY UND] CAPITALISM1 A PECULI> BURD5 = A SOCIETY BAS$ UPON PRIVATE 5T]PRISE1 :I* IMPLIES ! ANNUAL EXP5DITURE ( A CONSID]ABLE AM\NT ( LABOR ON ! MANUFACTURE ( PRODUCTS :I* >E NEI!R MEANS ( PRODUCTION NOR YET CONSUM] GOODS4 ,?IS PECULI> EXP5DITURE ( LABOR BY A SOCIETY PRODUC+ UND] CAPITALISM WILL VANI% 9 A SOCIALLY PLANN$ ECONOMY4 ,IT IS MO/ ADEQUATELY DEMON/RAT$ BY MEANS ( A SEP>ATE DEP>TM5T )9 ! PROCESS ( REPRODUC+ SOCIAL CAPITAL4 ,IT IS QUITE IMMAT]IAL 9 ?IS CONNECTION :E!R WE PICTURE A C\NTRY :I* PRODUCES ITS [N GOLD OR A C\NTRY :I* IMPORTS GOLD FROM ABROAD4 ,! SAME EXP5DITURE ( SOCIAL LABOR :I* 9 ! FIR/ CASE IS NECESS>Y = ! DIRECT PRODUCTION ( GOLD1 IS REQUIR$ 9 ! SECOND CASE TO EFFECT ! EX*ANGE TRANSACTIONS4 

,!SE OBS]VATIONS %[ ?AT ! PROBLEM ( ! REPRODUCTION ( TOTAL CAPITAL IS NOT SO CRUDE AS IT (T5 APPE>S TO ?OSE :O APPROA* IT M]ELY FROM ! PO9T ( VIEW ( CRISES4 ,! C5TRAL PROBLEM MI<T BE =MULAT$ AS FOLL[S3 H[ IS IT POSSIBLE ?AT1 9 AN UNPLANN$ ECONOMY1 ! AGGREGATE PRODUCTION ( 9NUM]ABLE 9DIVIDUAL CAPITALI/S CAN SATISFY ALL ! NE$S ( SOCIETY8 ,ONE ANSW] ?AT SUGGE/S ITSELF PO9TS TO ! CONT9UAL FLUCTUATIONS 9 ! LEVEL ( PRODUCTION 9 ACCORDANCE ) ! FLUCTUAT+ DEM&1 I4E ! P]IODICAL *ANGES 9 ! M>KET4 ,?IS PO9T ( VIEW1 :I* REG>DS ! AGGREGATE PRODUCT ( SOCIETY AS AN UNDIFF]5TIAT$ MASS ( COMMODITIES1 & TREATS SOCIAL DEM& 9 AN EQUALLY ABSURD WAY1 OV]LOOKS ! MO/ IMPORTANT ELEM5T1 ! DIFF]5TIA SPECIFICA ( ! CAPITALI/ MODE ( PRODUCTION4 ,WE HAVE SE5 ?AT ! PROBLEM ( CAPITALI/ REPRODUCTION CONTA9S QUITE A NUMB] ( PRECISELY DEF9$ RELATIONS REF]R+ TO SPECIFIC CAPITALI/ CATEGORIES & ALSO1 MUTATIS MUT&IS1 TO ! G5]AL CATEGORIES ( HUMAN LABOR41 ,! REAL PROBLEM CONSI/S 9 !IR 9H]5T T5D5CIES T[>DS BO? CONFILET & H>MONY4 ,M>X'S DIAGRAM IS ! SCI5TIFIC =MULATION ( ! PROBLEM4 

,9QUIRY MU/ N[ BE MADE 9TO ! IMPLICATIONS ( ?IS DIAGRAM ANALYTIC ( ! PROCESS ( PRODUCTION4 ,HAS IT ANY REAL BE>+ ON ! PROBLEMS ( ACTUAL LIFE8 ,ACCORD+ TO ! DIAGRAM1 CIRCULATION ABSORBS ! 5TIRE SOCIAL PRODUCT2 ALL CONSUM]S' NE$S >E SATISFI$1 & REPRODUCTION TAKES PLACE )\T FRICTION2 ,! CIRCULATION ( MONEY SUCCE$S ! CIRCULATION ( COMMODITIES1 COMPLET+ ! CYCLE ( SOCIAL CAPITAL4 ,BUT :AT IS ! POSITION 9 REAL LIFE8 ,! RELATIONS \TL9$ 9 ! DIAGRAM LAY D[N A PRECISE FIR/ PR9CIPLE = ! DIVISION ( SOCIAL LABOR 9 A PLANN$ PRODUCTION - ALWAYS PROVID+ A SY/EM ( SIMPLE REPRODUCTION1 I4E NO *ANGES 9 ! VOLUME ( PRODUCTION4 ,BUT NO SU* PLANN$ ORGANIZATION ( ! TOTAL PROCESS EXI/S 9 A CAPITALI/ ECONOMY1 & ?+S DO NOT RUN SMOO?LY1 ALONG A MA!MATICAL =MULA1 AS SUGGE/$ BY ! DIAGRAM4 ,ON ! CONTR>Y1 ! C\RSE ( REPRODUCTION %[S CONT9UAL DEVIATIONS FROM 3! PROPORTIONS ( ! DIAGRAM :I* BECOME MANIFE/ 7A7 9 ! FLUCTUATIONS ( PRICES FROM DAY TO DAY2 7B7 9 ! CONT9UAL FLUCTUATIONS ( PR(ITS2 7C7 9 ! CEASELESS FL[ ( CAPITAL FROM ONE BRAN* ( PRODUCTION TO ANO!R1 & F9ALLY 9 ! P]IODICAL & CYCLICAL SW+S ( REPRODUCTION BETWE5 OV]PRODUCTION & CRISIS4 

,& YET1 AP>T FROM ALL !SE DEVIATIONS1 ! DIAGRAM PRES5TS A SOCIALLY NECESS>Y AV]AGE LEVEL 9 :I* ALL !SE MOVEM5TS MU/ C5T]1 TO :I* !Y >E ALWAYS /RIV+ TO RETURN1 ONCE !Y HAVE LEFT IT4 ,?AT IS :Y ! FLUCTUAT+ MOVEM5TS ( ! 9DIVIDUAL CAPITALI/S DO NOT DEG5]ATE 9TO *AOS BUT >E3 R$UC$ TO A C]TA9 ORD] :I* 5SURES ! PROLONG$ EXI/5CE ( SOCIETY 9 SPITE ( ITS LACK ( A PLAN4 

,9 COMP>ISON1 ! SIMIL>ITIES & ! PR(\ND DISCREPANCIES BETWE5 ,M>K'S DIAGRAM ( REPRODUCTION & ,QUESNAY'S ,TABLEAU ,ECONOMIQUE /RIKE US AT ONCE4 ,!SE TWO DIAGRAMS1 ! BEG9N+ & 5D ( ! P]IOD ( CLASSICAL ECONOMICS1 >E ! ONLY ATTEMPTS TO DESCRIBE AN APP>5T *AOS 9 PRECISE T]MS1 A *AOS CREAT$ BY ! 9T]RELAT$ MOVEM5TS ( CAPITALI/ PRODUCTION & CONSUMPTION1 & BY ! DISP>ITY ( 9NUM]ABLE PRIVATE PRODUC]S & CONSUM]S4 ,BO? WRIT]S R$UCE ?IS *AOTIC JUMBLE ( 9DIVIDUAL CAPITALS TO A FEW BROADLY CONCEIV$ RULES :I* S]VE1 AS IT W]E1 AS MOOR+S = ! DEVELOPM5T ( CAPITALI/ SOCIETY1 9 SPITE ( ITS *AOS4 ,!Y BO? A*IEVE A SYN!SIS BETWE5 ! TWO ASPECTS :I* >E ! BASIS ( ! :OLE MOVEM5T ( SOCIAL CAPITAL3 ?AT CIRCULATION IS AT ONE & ! SAME TIME A CAPITALI/ PROCESS ( PRODUC+ & APPROPRIAT+ SURPLUS VALUE1 & ALSO A SOCIAL PROCESS ( PRODUC+ & CONSUM+ MAT]IAL GOODS NECESS>Y TO CIVILIZ$ HUMAN EXI/5CE4 ,BO? %[ ! CIRCULATION ( COMMODITIES TO ACT AS A M$IATOR = ! SOCIAL PROCESS AS A :OLE1 & BO? CONCEIVE ( ! CIRCULATION ( MONEY AS A SUBSIDI>Y PH5OM5ON1 AN EXT]NAL & SUP]FICIAL EXPRESSION ( ! V>I\S /AGES )9 ! CIRCULATION ( COMMODITIES4 

,IT IS SOCIALLY NECESS>Y LABOR :I* CREATES VALUE4 ,?IS 9SPIR$ FUNDAM5TAL LAW ( ,M>X'S !ORY ( VALUE :I* PROVID$ ! SOLUTION ( ! MONEY PROBLEM1 AMONG O!RS1 FUR!R L$ HIM FIR/ TO DI/+UI% & !N TO 9TEGRATE ?OSE TWO ASPECTS 9 ! TOTAL REPRODUCTIVE PROCESS3 ! ASPECT ( VALUE & ?AT ( ACTUAL MAT]IAL CONNECTIONS4 ,SECONDLY1 ,M>X'S DIAGRAM IS BAS$ UPON ! PRECISE DI/9CTION BETWE5 CON/ANT & V>IABLE CAPITAL :I* ALONE REVEALS ! 9T]NAL ME*ANISMS ( ! PRODUCTION ( SURPLUS VALUE & BR+S IT1 AS A VALUE-RELATION%IP1 9TO PRECISE RELATION ) ! TWO MAT]IAL CATEGORIES ( PRODUCTION3 ?AT ( PRODUC] & CONSUM] GOODS4 

,AFT] ,QUESNAY1 SOME CLASSICAL ECONOMI/S1 ,ADAM ,SMI? & ,RIC>DO 9 P>TICUL>1 CAME FAIRLY CLOSE TO ?IS PO9T ( VIEW4 ,RIC>DO'S CONTRIBUTION1 HIS PRECISE ELABORATION ( ! !ORY ( VALUE1 HAS EV5 BE5 FREQU5TLY CONFUS$ ) ?AT ( ,M>X4 ,ON ! BASIS ( HIS [N !ORY ( VALUE1 ,RIC>DO SAW ?AT ,SMI?'S ME?OD ( RESOLV+ ! PRICE ( ALL COMMODITIES 9TO V "4 S - A !ORY :I* WR\<T SO MU* HAVOC 9 ! ANALYSIS ( REPRODUCTION - IS WRONG2 BUT HE WAS NOT MU* 9T]E/$ 9 ,SMI?'S MI/AKE1 NOR 9DE$ V]Y 5?USIA/IC AB\T ! PROBLEM ( REPRODUCTION AS A :OLE4 ,HIS ANALYSIS1 9 FACT1 REPRES5TS A C]TA9 DECL9E AFT] ?AT ( ,ADAM ,SMI?1 JU/ AS ,SMI? HAD P>TLY RETROGRESS$ AS AGA9/ ! ,PHYSIOCRATS4 ,IF ,RIC>DO EXP\ND$ ! FUNDAM5TAL VALUE CATEGORIES ( B\RGEOIS ECONOMY - WAGES1 SURPLUS VALUE & CAPITAL - MU* MORE PRECISELY & CONSI/5TLY ?AN HIS PR$ECESSORS1 HE ALSO TREAT$ !M MORE RIGIDLY4 ,ADAM ,SMI? HAD1 %[N 9F9ITELY MORE UND]/&+ = ! LIV+ CONNECTIONS1 ! BROAD MOVEM5TS ( ! :OLE4 ,9 CONSEQU5CE HE DID NOT M9D GIV+ TWO1 OR1 AS 9 ! CASE ( ! PROBLEM ( VALUE1 EV5 ?REE OR F\R DIFF]5T ANSW]S TO ! SAME QUE/ION4 ,?\< HE CONTRADICTS HIMSELF QUITE *E]FULLY 9 ! V>I\S P>TS ( HIS ANALYSIS1 !SE V]Y CONTRADICTIONS >E EV] /IMULAT+ HIM TO R5EW$ EF=T1 !Y MAKE HIM APPROA* ! PROBLEM AS A :OLE FROM AN EV] DIFF]5T PO9T ( VIEW1 & SO TO GRASP ITS DYNAMICS4 ,ULTIMATELY1 IT WAS ! LIMITATION ( !IR B\RGEOIS M5TALITIES :I* DOOM$ D BO?4 ,SMI? & ,RIC>DO TO FAILURE4 ,A PROP] UND]/&+ ( ! FUNDAM5TAL CATEGORIES ( CAPITALI/ PRODUCTION1 ( VALUE & SURPLUS VALUE AS LIV+ DYNAMICS ( ! SOCIAL PROCESS DEM&S ! UND]/&+ ( ?IS PROCESS 9 ITS HI/ORICAL DEVELOPM5T & ( ! CATEGORIES !MSELVES AS HI/ORICALLY CONDITION$ =MS ( ! G5]AL RELATIONS ( LABOR4 ,?IS MEANS ?AT ONLY A SOCIALI/ CAN REALLY SOLVE ! PROBLEM ( ! REPRODUCTION ( CAPITAL4 ,BETWE5 ! ,TABLEAU ,ECONOMIQUE & ! DIAGRAM ( REPRODUCTION 9 ! SECOND VOLUME ( ,CAPITAL !RE LIES ! PROSP]ITY & DECL9E ( B\RGEOIS ECONOMICS1 BO? 9 TIME & 9 SUB/ANCE4 

,FOOTNOTES 

7#a7 ,9 HIS SEV5? NOTE TO ! ,TABLEAU ,ECONOMIQUE1 FOLL[+ UP HIS >GUM5TS AGA9/ ! M]CANTILI/ !ORY ( MONEY AS ID5TICAL ) WEAL?1 ,QUESNAY SAYS3 ',! BULK ( MONEY 9 A NATION CANNOT 9CREASE UNLESS ?IS REPRODUCTION ITSELF 9CREASES2 O!RWISE1 AN 9CREASE 9 ! BULK ( MONEY W\LD 9EVITABLY BE PREJUDICIAL TO ! ANNUAL PRODUCTION ( WEAL? 444 ,!RE=E WE MU/ NOT JUDGE ! OPUL5CE ( /ATES ON ! BASIS ( A GREAT] OR SMALL] QUANTITY ( MONEY3 ?US A /OCK ( MONEY1 EQUAL TO ! 9COME ( ! L&[N]S1 IS DEEM$ MU* MORE ?AN 5\< = AN AGRICULTURAL NATION :]E ! CIRCULATION PROCE$S 9 A REGUL> MANN]1 & :]E COMM]CE TAKES PLACE 9 CONFID5CE & FULL LIB]TY' 7,ANALYZE DU ,TABLEAU ,ECONOMIQUE1 $4 ,ONCK51 PP4#c#b#d-#e74 

7#b7 ,M>X 7,CAPITAL1 ,VOL4#b1 P4#d#h#b7 TAKES ! MONEY SP5T DIRECTLY BY ! CAPITALI/S ( ,DEP>TM5T ,I,I AS ! />T+ PO9T ( ?IS ACT ( EX*ANGE4 ,AS ,5GELS RI<TLY SAYS 9 HIS FOOTNOTE1 ?IS DOES NOT AFFECT ! F9AL RESULT ( CIRCULATION1 BUT ! ASSUMPTION IS NOT ! CORRECT CONDITION ( CIRCULATION )9 SOCIETY4 ,M>X HIMSELF HAS GIV5 A BETT] EXPOSITION 9 ,CAPITAL1 ,VOL4#b1 PP4 #d#f#a-#b4 

7#c7,IBID41 P4#e#d#h4 

7#d7,IBID41 P4#e#e4 

7#e7,IBID41 P4#e#e#a4 

7#f7,IBID41 P4#e#g#b4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
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,M>* #f1 #bba 3 ,SECTION #a1 ,*APT] #e -- ,UPDAT$4 

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HTTP3_/_/REVOLTLIB4COM_/