,SECTION #b1 ,*APT] #ag 
,HI/ORICAL ,EXPOSITION ( ! ,PROBLEM3 ,RODB]TUS' ,ANALYSIS ( ,REPRODUCTION 

,PEOPLE 3 

,AU?OR 3 ,ROSA ,LUXEMBURG 

,TEXT 3 

,TO BEG9 )1 :AT DOES IT MEAN ?AT A DECREASE 9 ! WORK]S' %>E IS B\ND IMM$IATELY TO 5G5D] OV]PRODUCTION & COMM]CIAL CRISES8 ,SU* A VIEW CAN ONLY MAKE S5SE PROVID$ ,RODB]TUS TAKES ! 'NATIONAL PRODUCT' TO CONSI/ ( TWO P>TS1 VIDE ! %>ES ( ! WORK]S & ( ! CAPITALI/S1 9 %ORT ( V "4 S1 ONE %>E BE+ EX*ANGEABLE = ! O!R4 ,& ?AT IS MORE OR LESS :AT HE ACTUALLY SEEMS TO SAY ON OCCASIONS1 E4G4 9 HIS FIR/ ,LETT] ON ,SOCIAL ,PROBLEMS3 

',! POV]TY ( ! WORK+ CLASSES PRECLUDES !IR 9COME FROM GIV+ SCOPE TO 9CREAS+ PRODUCTION4 ,! ADDITIONAL AM\NT ( PRODUCTS FROM ! 5TREPR5EURS' PO9T ( VIEW L[]S ! VALUE ( ! AGGREGATE PRODUCT SO F> AS TO B> PRODUCTION ON ! =M] SCALE1 LEAV+ ! WORK]S AT BE/ TO !IR ACCU/OM$ /RAITS1 ?\<1 IF IT C\LD BE MADE AVAILABLE TO ! WORK]S1 IT W\LD NOT ONLY IMPROVE !IR LOT BUT W\LD FUR!R ACT AS A C\NT]WEI<T BY 9CREAS+ ! VALUE ( :AT IS RETA9$ BY ! CAPITALI/S 7& SO 5ABLE ! LATT] TO KEEP !IR 5T]PRISES AT ! SAME LEVEL74'7#a7 

,! 'C\NT]WEI<T' :I* 9 ! H& ( ! WORK]S 9CREASES ! 'VALUE' ( ':AT IS RETA9$' BY ! 5TREPR5EURS1 CAN 9 ?IS CONTEXT ONLY BE ! DEM&4 ,ONCE AGA91 WE HAVE L&$ HAPPILY AT ! FAMILI> ,ORT ( V4 ,KIR*MANN'S :]E WORK]S & CAPITALI/S EX*ANGE !IR 9COMES = ! SURPLUS PRODUCT1 & :]E ! CRISES >ISE BECAUSE V>IABLE CAPITAL IS SMALL & ! SURPLUS VALUE L>GE4 ,?IS PECULI> NOTION HAS ALREADY BE5 DEALT ) ABOVE4 ,!RE >E O!R OCCASIONS1 H[EV]1 :5 ,RODB]TUS ADVANCES A SOME:AT DIFF]5T CONCEPTION4 ,! 9T]PRETATION ( HIS !ORY 9 ! F\R? ,LETT] ON ,SOCIAL ,PROBLEMS IS ?AT ! CONT9UAL %IFTS 9 ! RELATIONS ( DEM&1 EVID5T 9 ! %>E ( ! WORK+ CLASS & CAUS$ BY ! %>E ( ! CAPITALI/ CLASS1 MU/ RESULT 9 A *RONIC DISPROPORTION BETWE5 PRODUCTION & CONSUMPTION4 

',:AT IF ! 5TREPR5EURS 5DEAVOR TO KEEP ALWAYS )9 ! LIMITS ( ?OSE %>ES1 YET ! %>ES !MSELVES >E ALL ! TIME ON ! DECL9E = ! GREAT MAJORITY ( ! SOCIETY1 ! WORK]S1 DECREAS+ GRADUALLY1 UNNOTICEABLY1 BUT ) REL5TLESS =CE8 - ,:AT IF ! %>E ( !SE CLASSES IS CONT9UALLY DECREAS+ TO ! SAME EXT5T AS !IR PRODUCTIVITY IS 9CREAS+8' - ',IS IT NOT REALLY ! FACT ?AT ! CAPITALI/S ( NECESSITY ORGANIZE PRODUCTION 9 ACCORDANCE ) ! PRES5T VOLUME ( %>ES 9 ORD] TO MAKE WEAL? UNIV]SAL1 & ?AT YET !Y ALWAYS PRODUCE OV] & ABOVE ?IS VOLUME 7( PREVI\S %>ES71 !REBY P]PETUAT+ DISSATISFACTION :I* CULM9ATES 9 ?IS /AGNATION ( TRADE8'7#b7 

,ON ?IS %[+1 ! EXPLANATION ( CRISES %\LD BE AS FOLL[S3 ! NATIONAL PRODUCT CONSI/S ( A NUMB] ( 'COMMON GOODS'1 AS V4 ,KIR*MANN PUTS IT1 = ! WORK]S1 & ( SUP]IOR GOODS = ! CAPITALI/S4 ,! WAGES REPRES5T ! QUANTITY ( ! =M]1 & AGGREGATE SURPLUS VALUE ?AT ( ! LATT]4 ,IF ! CAPITALI/S ORGANIZE !IR PRODUCTION ON ?IS FOOT+1 & IF AT ! SAME TIME !RE IS PROGRESSIVE PRODUCTIVITY1 A LACK ( PROPORTION WILL IMM$IATELY 5SUE4 ,= ! %>E ( ! WORK]S TO-DAY IS NO LONG] ?AT ( YE/]DAY1 BUT LESS4 ,IF ! DEM& = 'COMMON GOODS' HAD 9VOLV$1 SAY1 SIX-SEV5?S ( ! NATIONAL PRODUCT YE/]DAY1 !N TO-DAY IT 9VOLVES ONLY FIVE-SEV5?S1 & ! 5TREPR5EURS1 HAV+ PROVID$ = SIX-SEV5?S ( 'COMMON GOODS'1 WILL F9D TO !IR PA9FUL SURPRISE ?AT !Y OV]PRODUC$ BY ONE-SEV5?4 ,N[1 WIS] BY ?IS EXP]I5CE1 !Y TRY TO ORGANIZE TO-MORR['S \TPUT ( 'COMMON GOODS' TO A M]E FIVE-SEV5?S ( ! TOTAL VALUE ( ! NATIONAL PRODUCT1 BUT !Y HAVE A NEW DISAPPO9TM5T COM+ TO !M1 S9CE ! %>E ( ! NATIONAL PRODUCT FALL+ TO WAGES TO-MORR[ IS B\ND TO BE ONLY F\R-SEV5?S1 & SO ON4 

,9 ?IS +5I\S !ORY !RE >E QUITE A FEW PO9TS TO MAKE US WOND]4 ,IF \R COMM]CIAL CRISES >E 5TIRELY DUE TO ! FACT ?AT ! WORK]S' 'WAGE RATE'1 ! V>IABLE CAPITAL1 REPRES5TS A CON/ANTLY DIM9I%+ PORTION ( ! TOTAL VALUE ( ! NATIONAL PRODUCT1 !N ?IS UN=TUNATE LAW BR+S ) IT ! CURE = ! EVIL IT HAS CAUS$1 S9CE IT MU/ BE AN EV] SMALL] P>T ( ! AGGREGATE PRODUCT = :I* !RE IS OV]-PRODUCTION4 ,AL?\< ,RODB]TUS DELI<TS 9 SU* T]MS AS 'AN OV]:ELM+ MAJORITY'1 ! L>GE POPUL> MASSES ( CONSUM]S1 IT IS NOT ! NUMB] ( HEADS ?AT MAKE UP ! DEM&1 BUT ! VALUE !Y REPRES5T :I* IS RELEVANT4 ,?IS VALUE1 IF ,RODB]TUS IS TO BE BELIEV$1 =MS A MORE & MORE TRIFL+ P>T ( ! AGGREGATE PRODUCT4 ,CRISES >E ?US MADE TO RE/ ON AN EV] N>R[+ ECONOMIC BASIS1 & ALL ?AT REMA9S TO DISCOV] IS H[ 9 SPITE ( IT ALL IT CAN /ILL HAPP5 ?AT ! CRISES >E UNIV]SAL & 9CREAS+LY SEV]E BESIDES1 AS ,RODB]TUS IS FULLY AW>E4 ,! PUR*AS+ P[] LO/ BY ! WORK+ CLASSES %\LD BE GA9$ BY ! CAPITALI/ CLASS2 IF V DECREASES1 S MU/ GR[ L>G] TO MAKE UP = IT4 ,ON ?IS CRUDE S*EME1 ! PUR*AS+ P[] ( SOCIETY AS A :OLE CANNOT *ANGE1 AS ,RODB]TUS SAYS 9 SO MANY WORDS3 

',I KN[ V]Y WELL ?AT :AT IS TAK5 FROM ! WORK]S' %>E GOES ULTIMATELY TO SWELL ?AT ( ! 0R5TI]S0 7R5T & SURPLUS VALUE >E US$ AS SYNONYMS1 ,R4,L471 & ?AT PUR*AS+ P[] REMA9S CON/ANT ON ! :OLE & 9 ! LONG RUN4 ,BUT AS F> AS ! PRODUCT ON ! M>KET IS CONC]N$1 ! CRISIS ALWAYS SETS 9 BE=E ?IS 9CREASE CAN MAKE ITSELF FELT4'7#c7 

,9 %ORT1 ! MO/ IT CAN AM\NT TO IS ?AT !RE IS 'TOO MU*' ( 'COMMON GOODS' & 'TOO LITTLE' ( SUP]IOR GOODS = ! CAPITALI/S4 ,QUITE UNAW>ES1 & BY DEVI\S WAYS1 ,RODB]TUS H]E FALLS 9 ) ! ,SAY-,RIC>DIAN !ORY HE SO >D5TLY CONTE/$1 ! !ORY ?AT OV]-PRODUCTION ON ONE SIDE ALWAYS CORRESPONDS TO UND]-PRODUCTION ON ! O!R4 ,SEE+ ?AT ! RATIO ( ! TWO %>ES IS P]SI/5TLY %IFT+ TO ! ADVANTAGE ( ! CAPITALI/S1 \R COMM]CIAL CRISES MI<T BE EXPECT$ ON ! :OLE TO TAKE ON 9CREAS+LY ! *>ACT] ( P]IODICAL UND] 9/EAD ( OV]-PRODUCTION6 ,5\< ( ?IS EX]CISE 9 LOGIC4 ,! UP%OT ( IT ALL IS ?AT ,RODB]TUS CONCEIVES ! NATIONAL PRODUCT 9 RESPECT ( ITS VALUE AS MADE UP ( TWO P>TS ONLY1 ( S & V1 ?US :OLLY SUBSCRIB+ TO ! VIEWS & TRADITIONS ( ! CLASSICAL S*OOL HE IS FI<T+ TOO? & NAIL1 & EV5 ADD+ HIS [N FL\RI% ?AT ! CAPITALI/S CONSUME ! 5TIRE SURPLUS VALUE4 ,?AT IS :Y HE REPEAT$LY SAYS )\T M9C+ HIS WORDS1 AS 9 ! F\R? ,LETT] ON ,SOCIAL ,PROBLEMS3 

',ACCORD+LY1 WE MU/ AB/RACT FROM1 ! REASONS :I* CAUSE ! DIVISION ( R5T 9 G5]AL 9TO R5T3 PROP] FIX$ CAPITAL R5T1 TO F9D ! BASIC PR9CIPLE UND]LY+ ! DIVISION ( R5T 7SURPLUS VALUE7 9 G5]AL1 ! PR9CIPLE UND]LY+ ! DIVISION ( ! LABOR PRODUCT 9TO WAGE & R5T4'7#d7 

,&1 9 ! ?IRD ,LETT]3 

',GR\ND R5T1 CAPITAL PR(IT & ! WAGE ( LABOR >E1 LET ME REPEAT1 REV5UE4 ,BY ?IS MEANS L&LORDS1 CAPITALI/S & WORK]S MU/ LIVE1 MU/ SATISFY1 ?AT IS TO SAY1 !IR IMM$IATE HUMAN NECESSITIES4 ,!Y MU/ !RE=E DRAW !IR 9COME 9 ! =M ( GOODS SUITABLE = ?IS PURPOSE4'7#e7 

,! MISREPRES5TATION ( CAPITALI/ ECONOMY HAS NEV] BE5 =MULAT$ MORE CRUDELY1 & !RE IS NO D\BT ?AT ,RODB]TUS CLAIMS ! PALM ( 'PRIORITY' - NOT SO MU* OV] ,M>X AS OV] ALL POPUL> ECONOMI/S - ) FULL JU/IFICATION4 ,TO LEAVE ! READ] 9 NO D\BT AB\T ! UTT] MUDDLE HE HAS MADE1 HE GOES ON1 9 ! SAME LETT]1 TO RANK CAPITALI/ SURPLUS VALUE AS AN ECONOMIC CATEGORY ON ! SAME LEVEL AS ! REV5UE ( ! ANCI5T SLAVE-[N]3 

',! FIR/ /ATE 7?AT ( SLAV]Y7 GOES ) ! MO/ PRIMITIVE NATURAL ECONOMY3 ?AT PORTION ( ! LABOR PRODUCT :I* IS )HELD FROM ! 9COME ( WORK]S OR SLAVES & =MS ! MA/]'S OR [N]'S PROP]TY1 WILL UNDIVID$LY ACCRUE TO ! ONE MAN :O [NS ! L&1 ! CAPITAL1 ! WORK] & ! LABOR PRODUCT2 !RE IS NOT EV5 A DI/9CTION ( ?\<T BETWE5 R5T & CAPITAL PR(ITS4 - ,! SECOND /ATE 5TAILS ! MO/ COMPLICAT$ MONEY ECONOMY3 ?AT PORTION ( ! LABOR PRODUCT1 )HELD FROM ! 9COME ( ! N[ EMANCIPAT$ WORK]S1 & ACCRU+ TO ! RESPECTIVE [N]S ( L&1 & CAPITAL1 WILL BE FUR!R DIVID$ AMONG ! [N]S ( ! RAW MAT]IAL & ! MANUFACTUR$ PRODUCT RESPECTIVELY2 ! ONE R5T ( ! =M] /ATE WILL BE SPLIT UP 9TO GR\ND R5T & CAPITAL PR(ITS1 & WILL HAVE TO BE DIFF]5TIAT$ ACCORD+LY4'7#f7 

,RODB]TUS REG>DS ! SPLITT+-UP ( ! SURPLUS VALUE ')HELD' FROM ! WORK]S' '9COME' AS ! MO/ /RIK+ DIFF]5CE BETWE5 EXPLOITATION BY SLAV]Y & MOD]N CAPITALI/ EXPLOITATION4 ,IT IS NOT ! SPECIFIC HI/ORICAL =M ( %>+ \T NEWLY CREAT$ VALUE AMONG LABOR & CAPITAL1 BUT ! DI/RIBUTION ( ! SURPLUS VALUE AMONG ! V>I\S PEOPLE IT B5EFITS1 :I*1 IRRELEVANT TO ! PRODUCTIVE PROCESS1 IS YET ! DECISIVE FACT 9 ! CAPITALI/ MODE ( PRODUCTION4 ,9 ALL O!R RESPECTS1 CAPITALI/ SURPLUS VALUE REMA9S JU/ ! SAME AS ! OLD 'S+LE R5T' ( ! SLAVE-[N]3 A PRIVATE FUND = ! EXPLOIT]'S [N CONSUMPTION6 

,YET ,RODB]TUS AGA9 CONTRADICTS HIMSELF 9 O!R PLACES1 REMEMB]+ ALL ( A SUDD5 ! CON/ANT CAPITAL & ! NECESSITY = ITS R5EWAL 9 ! REPRODUCTIVE PROCESS4 ,?US1 9/EAD1 ( BISECT+ ! AGGREGATE PRODUCT 9TO V & S1 HE POSITS A TRIPLE DIVISION3 C1 V1 & S4 ,9 HIS ?IRD ,LETT] ON ,SOCIAL ,PROBLEMS HE >GUES ON ! =MS ( REPRODUCTION 9 A SLAVE-ECONOMY3 

',S9CE ! MA/] WILL SEE TO IT ?AT P>T ( ! SLAVE LABOR IS EMPLOY$ 9 MA9TA9+ OR EV5 IMPROV+ ! FIELDS1 H]DS1 AGRICULTURAL & MANUFACTUR+ TOOLS1 !RE WILL BE 0CAPITAL REPLACEM5T01 TO USE A MOD]N T]M1 9 :I* P>T ( ! NATIONAL ECONOMIC PRODUCT IS IMM$IATELY US$ = ! UPKEEP ( ! E/ATE1 )\T ANY M$IATION BY EX*ANGE OR EV5 BY EX*ANGE VALUE4'7#g7 

,&1 PASS+ ON TO CAPITALI/ REPRODUCTION1 HE CONT9UES3 

',N[1 9 T]MS ( VALUE1 ONE PORTION ( ! LABOR PRODUCT1 IS US$ OR SET ASIDE = ! MA9T5ANCE ( ! E/ATE1 = 0CAPITAL REPLACEM5T01 ANO!R1 = ! WORK]S' SUBSI/5CE AS !IR MONEY WAGE2 & ! [N]S ( ! L&1 ( CAPITAL1 & ( ! LABOR PRODUCT RETA9 ! LA/ AS !IR REV5UE OR R5T4'7#h7 

,?IS1 !N1 IS AN EXPLICIT EXPRESSION ( ! TRIPLE DIVISION 9TO CON/ANT CAPITAL1 V>IABLE CAPITAL1 & SURPLUS VALUE4 ,AGA91 9 ?IS ?IRD ,LETT]1 HE =MULATES ! PECULI>ITY ( HIS 'NEW' !ORY ) EQUAL PRECISION3 

',ON ?IS !ORY1 !N1 & UND] CONDITIONS ( ADEQUATE LABOR PRODUCTIVITY1 ! PORTION ( ! PRODUCT :I* REMA9S = WAGES AFT] ! REPLACEM5T ( CAPITAL1 WILL BE DI/RIBUT$ AMONG WORK]S & [N]S AS WAGES & R5T1 ON ! BASIS ( ! [N]%IP 9 L& & CAPITAL4'7#i7 

,IT DOES SEEM N[ AS IF ,RODB]TUS' ANALYSIS ( ! VALUE ( ! AGGREGATE PRODUCT REPRES5TS A DI/9CT ADVANCE OV] ! CLASSICAL S*OOL4 ,EV5 ,ADAM ,SMI?'S 'DOGMA' IS OP5LY CRITICIZ$ A LITTLE FUR!R ON1 & IT IS REALLY SURPRIS+1 ?AT ,RODB]TUS' LE>N$ ADMIR]S1 ,MESSRS4 ,WAGN]1 ,DIETZEL1 ,DIEHL @& ,CO4 FAIL$ TO CLAIM !IR :ITE-HEAD$ BOY'S 'PRIORITY' OV] ,M>X ON SU* AN IMPORTANT PO9T ( ECONOMIC !ORY4 ,AS A MATT] ( FACT1 9 ?IS RESPECT NO LESS ?AN 9 ! G5]AL !ORY ( VALUE1 ,RODB]TUS' PRIORITY IS ( A SOME:AT DUBI\S *>ACT]4 ,IF HE SEEMS ON OCCASION TO GA9 TRUE 9SI<T1 IT IMM$IATELY TURNS \T TO BE A MISUND]/&+1 OR AT BE/ A WRONG APPROA*4 ,HIS CRITICISM ( ,ADAM ,SMI?'S DOGMA AF=DS A SUPREME EXAMPLE ( HIS FAILURE TO COPE ) ! TRIPLE DIVISION ( ! NATIONAL PRODUCT T[>DS :I* HE HAD GROP$ HIS WAY4 ,HE SAYS LIT]ALLY3 

',Y\ KN[ ?AT ALL ECONOMI/S S9CE ,ADAM ,SMI? ALREADY DIVID$ ! VALUE ( ! PRODUCT 9TO WAGE ( LABOR1 R5T1 & CAPITAL PR(IT1 ?AT IT IS !RE=E NOT A NEW IDEA TO GR\ND ! 9COMES ( ! V>I\S CLASSES1 & ESPECIALLY ! V>I\S ITEMS ( ! R5T1 9 A DIVISION ( ! PRODUCT4 ,BUT ! ECONOMI/S AT ONCE GO (F ! TRACK4 ,ALL ( !M1 NOT EV5 EXCEPT+ ,RIC>DO'S S*OOL1 MAKE ! MI/AKE1 FIR/1 NOT TO RECOGNIZE ?AT ! AGGREGATE PRODUCT1 ! F9I%$ GOOD1 ! NATIONAL PRODUCT AS A :OLE1 IS AN 5TITY 9 :I* WORK]S1 L&[N]S1 & CAPITALI/S ALL %>E1 BUT CONCEIV+ ! DIVISION ( ! UNF9I%$ PRODUCT TO BE ( ONE K9D %>$ AMONG ?REE P>TN]S1 & ?AT ( ! MANUFACTUR$ PRODUCT AS ( ANO!R K9D AGA91 %>$ BETWE5 ONLY TWO P>TN]S4 ,= !SE !ORIES BO? ! UNF9I%$ PRODUCT & ! MANUFACTUR$ PRODUCT CON/ITUTE AS SU* SEP>ATE ITEMS ( REV5UE4 ,SECONDLY1 - ?\< BO? ,SISMONDI & ,RIC>DO >E FREE FROM ?IS P>TICUL> ]ROR - !Y REG>D ! NATURAL FACT ?AT LABOR CANNOT PRODUCE GOODS )\T MAT]IAL HELP1 I4E4 )\T ! L&1 AS AN ECONOMIC FACT1 & TAKE ! SOCIAL FACT = A PRIM>Y DATUM ?AT CAPITAL AS UND]/OOD TO-DAY IS REQUIR$ BY ! DIVISION ( LABOR4 ,?US !Y SET UP ! FICTION ( A FUNDAM5TAL ECONOMIC RELATION%IP ON :I* !Y BASE ALSO = ! %>ES ( ! V>I\S [N]S1 GR\ND R5T SPR++ FROM ! CONTRIBUTION ( ! L& L5T BY ! [N] TO PRODUCTION1 CAPITAL PR(ITS FROM ! CONTRIBUTION ( CAPITAL EMPLOY$ BY ! CAPITALI/ TO ?IS 5D1 & ! WAGES F9ALLY FROM LABOR'S CONTRIBUTION1 SEE+ ?AT !RE >E SEP>ATE [N]S ( L&1 CAPITAL1 & LABOR 9 ! SOCIETY4 ,SAY'S S*OOL1 ELABORAT+ ON ?IS MI/AKE ) MU* +5UITY1 EV5 9V5T$ ! CONCEPT ( PRODUCTIVE S]VICE ( L&1 CAPITAL1 & LABOR 9 CON=MITY ) ! %>ES 9 ! PRODUCT ( !IR RESPECTIVE [N]S1 SO AS TO EXPLA9 !SE %>ES AS ! RESULT ( PRODUCTIVE S]VICE4 - ,?IRDLY1 !Y >E CAU<T UP 9 ! ULTIMATE FOLLY ( D]IV+ ! WAGE ( LABOR & ! ITEMS ( R5T FROM ! VALUE ( ! PRODUCT1 ! VALUE ( ! PRODUCT 9 TURN BE+ D]IV$ FROM ! WAGE ( LABOR & ! ITEMS ( R5T1 SO ?AT ! ONE IS MADE TO DEP5D ON ! O!R & VICE V]SA4 ,?IS ABSURDITY IS QUITE UNMI/AKABLE :5 SOME ( !SE AU?ORS ATTEMPT TO EXP\ND ,! ,9FLU5CE ( ,R5T ,UPON ,PRODUCTION ,PRICES & ,! ,9FLU5CE ( ,PRODUCTION ,PRICES ,UPON ,R5T 9 TWO CONSECUTIVE *APT]S4'7#a7 

,YET = ALL !SE EXCELL5T CRITICAL COMM5TS - ! LA/1 P>TICUL>LY ACUTE1 ACTUALLY DOES TO SOME EXT5T ANTICIPATE ,M>X'S CRITICISM ( ?IS PO9T 9 ,CAPITAL1 VOLUME II - ,RODB]TUS CALMLY FALLS 9 ) ! FUNDAM5TAL BLUND] ( ! CLASSICAL S*OOL & ITS VULG> FOLL[]S3 TO IGNORE ALTOGE!R ?AT P>T ( ! VALUE ( ! AGGREGATE PRODUCT :I* IS NE$$ TO REPLACE ! CON/ANT CAPITAL ( ! SOCIETY4 ,?IS WAY IT WAS EASI] = HIM TO KEEP UP ! S+UL> FI<T AGA9/ ! 'DECL9+ WAGE RATE'4 

,UND] CAPITALI/ =MS ( PRODUCTION1 ! VALUE ( ! AGGREGATE SOCIAL PRODUCT IS DIVID$ 9TO ?REE P>TS3 ONE CORRESPOND+ TO ! VALUE ( ! CON/ANT CAPITAL1 ! SECOND TO ! WAGE TOTAL1 4I4E4 ! V>IABLE CAPITAL1 & ! ?IRD TO ! AGGREGATE SURPLUS VALUE ( ! CAPITALI/ CLASS4 ,9 ?IS COMPOSITION1 ! PORTION CORRESPOND+ TO ! V>IABLE CAPITAL IS RELATIVELY ON ! DECL9E1 & ?IS = TWO REASONS4 ,TO BEG9 )1 ! RELATION ( C TO 7V "4 S7 )9 C "4 V "4 S *ANGES ALL ! TIME 9 ! DIRECTION ( A RELATIVE 9CREASE ( C & A RELATIVE DECREASE ( V "4 S4 ,?IS IS ! SIMPLE LAW = A PROGRESSIVE EFFICI5CY ( HUMAN LABOR1 VALID = ALL SOCIETIES ( ECONOMIC PROGRESS1 9DEP5D5TLY ( !IR HI/ORICAL =MS1 A =MULA :I* ONLY /ATES ?AT LIV+ LABOR IS 9CREAS+LY ABLE TO CONV]T MORE MEANS ( PRODUCTION 9TO OBJECTS = USE 9 AN EV] %ORT] TIME4 ,& IF 7V "4 S7 DECREASES AS A :OLE1 SO MU/ V1 AS ITS P>T1 DECREASE 9 RELATION TO ! TOTAL VALUE ( ! PRODUCT4 ,TO KICK AGA9/ ?IS1 TO TRY & /OP ! DECREASE1 W\LD BE TANTAM\NT TO CONT5D+ AGA9/ ! G5]AL EFFECTS ( A GR[+ LABOR PRODUCTIVITY4 ,FUR!R1 !RE IS )9 7V "4 S7 AS WELL A *ANGE 9 ! DIRECTION ( A RELATIVE DECREASE 9 V & A RELATIVE 9CREASE 9 S1 ?AT IS TO SAY1 AN EV] SMALL] P>T ( ! NEWLY CREAT$ VALUE IS SP5T ON WAGES & AN EV] GREAT] P>T IS APPROPRIAT$ AS SURPLUS VALUE4 ,?IS IS ! SPECIFICALLY CAPITALI/ =MULA ( PROGRESSIVE LABOR PRODUCTIVITY :I*1 UND] CAPITALI/ CONDITIONS ( PRODUCTION1 IS NO LESS VALID ?AN ! G5]AL LAW4 ,TO USE ! P[] ( ! /ATE TO PREV5T A DECREASE ( V AS AGA9/ S W\LD MEAN ?AT ! FUNDAM5TAL COMMODITY ( LABOR P[] IS DEB>R$ FROM ?IS PROGRESS :I* DECREASES PRODUCTION CO/S = ALL COMMODITIES2 IT W\LD MEAN ! EXEMPTION ( ?IS ONE COMMODITY FROM ! ECONOMIC EFFECTS ( TE*NICAL PROGRESS4 ,MORE ?AN ?AT3 ! 'DECL9+ WAGE RATE' IS ONLY ANO!R EXPRESSION ( ! RIS+ RATE ( SURPLUS VALUE :I* =MS ! MO/ P[]FUL & EFFECTIVE MEANS ( *ECK+ A DECL9E ( ! PR(IT RATE1 & :I* !RE=E REPRES5TS ! PRIME 9C5TIVE = CAPITALI/ PRODUCTION 9 G5]AL1 & = TE*NICAL PROGRESS )9 ?IS SY/EM ( PRODUCTION 9 P>TICUL>4 ,DO+ AWAY ) ! 'DECL9+ WAGE RATE' BY WAY ( LEGISLATION W\LD BE AS MU* AS TO DO AWAY ) ! RAISON D'ETRE ( CAPITALI/ SOCIETY1 TO DEAL A CRIPPL+ BL[ TO ITS 5TIRE SY/EM4 ,LET US FACE ! FACTS3 ! 9DIVIDUAL CAPITALI/1 JU/ LIKE CAPITALI/ SOCIETY AS A :OLE1 HAS NO GLIMM]+ ?AT ! VALUE ( ! PRODUCT IS MADE UP FROM ! SUM TOTAL ( LABOR NECESS>Y 9 ! SOCIETY1 & ?IS IS ACTUALLY BEYOND HIS GRASP4 ,VALUE1 AS ! CAPITALI/ UND]/&S IT1 IS ! D]IVATIVE =M1 REV]S$ BY COMPETITION AS PRODUCTION CO/S4 ,:ILE 9 TRU? ! VALUE ( ! PRODUCT IS BROK5 D[N 9TO ! VALUES ( ITS COMPON5T FRAGM5TS C1 V & S1 ! CAPITALI/ M9D CONCEIVES ( IT AS ! SUMMATION ( V & S4 ,!SE1 9 ADDITION1 ALSO APPE> TO HIM FROM A DI/ORT$ P]SPECTIVE & 9 A SECOND>Y =M1 AS 

! WE> & TE> ( HIS FIX$ CAPITAL1 

HIS ADVANCES ON CIRCULAT+ CAPITAL1 9CLUD+ WORK]S' WAGES1 & 

! CURR5T PR(ITS1 I4E4 ! AV]AGE RATE ( PR(IT ON HIS 5TIRE CAPITAL4 

,H[1 !N1 IS ! CAPITALI/ TO BE COMPELL$ BY A LAW1 SAY ( ! K9D 5VISAG$ BY ,RODB]TUS1 TO MA9TA9 A 'FIX$ WAGE RATE' 9 ! FACE ( ! AGGREGATE VALUE ( ! PRODUCT8 ,IT W\LD BE QUITE AS BRILLIANT TO /IPULATE BY LAW = EXACTLY ONE-?IRD1 NO MORE1 NO LESS1 ( ! TOTAL PRICE ( ! PRODUCT TO BE PAYABLE = ! RAW MAT]IALS EMPLOY$ 9 ! MANUFACTURE ( ANY COMMODITY4 ,OBVI\SLY1 ,RODB]TUS' SUPREME NOTION1 ( :I* HE WAS SO PR\D1 ON :I* HE BUILT AS IF IT W]E A NEW ,>*IM$EAN DISCOV]Y1 :I* WAS TO BE ! SPECIFIC = ALL ! ILLS ( CAPITALI/ PRODUCTION1 IS >RANT NONS5SE FROM ALL ASPECTS ( ! CAPITALI/ MODE ( PRODUCTION4 ,IT C\LD ONLY RESULT FROM ! MUDDLE 9 ! !ORY ( VALUE :I* IS BR\<T TO A HEAD 9 ,RODB]TUS' 9IMITABLE PHRASE3 ?AT 'N[1 9 A CAPITALI/ SOCIETY1 ! PRODUCT MU/ HAVE VALUE-9-EX*ANGE JU/ AS IT HAD TO HAVE VALUE-9-USE 9 ANCI5T ECONOMY'47#a#a7 ,PEOPLE 9 ANCI5T SOCIETY HAD TO EAT BREAD & MEAT 9 ORD] TO LIVE1 BUT WE ( TO-DAY >E ALREADY SATISFI$ ) KN[+ ! PRICE ( BREAD & ( MEAT4 ,! MO/ OBVI\S 9F]5CE FROM ,RODB]TUS' MONOMANIA AB\T A 'FIX$ WAGE RATE' IS ?AT HE IS QUITE 9CAPABLE ( UND]/&+ CAPITALI/ ACCUMULATION4 

,PREVI\S QUOTATIONS HAVE ALREADY %[N ?AT ,RODB]TUS ?9KS SOLELY ( SIMPLE COMMODITY1 PRODUCTION1 QUITE 9 KEEP+ ) HIS MI/AK5 DOCTR9E ?AT ! PURPOSE ( CAPITALI/ PRODUCTION IS ! MANUFACTURE ( CONSUM] GOODS = ! SATISFACTION ( 'HUMAN WANTS'4 ,= HE ALWAYS TALKS ( 'CAPITAL REPLACEM5TS'1 ( ! NE$ TO 5ABLE ! CAPITALI/S TO 'CONT9UE !IR 5T]PRISE ON ! PREVI\S SCALE'4 ,HIS PR9CIPAL >GUM5T1 H[EV]1 IS DIRECTLY OPPOS$ TO ! ACCUMULATION ( CAPITAL4 ,TO FIX ! RATE ( ! SURPLUS VALUE1 TO PREV5T ITS GR[?1 IS TANTAM\NT TO P>ALYZ+ ! ACCUMULATION ( CAPITAL4 ,BO? ,SISMONDI & V4 ,KIR*MANN HAD RECOGNIZ$ ! PROBLEM ( BALANC+ PRODUCTION & CONSUMPTION TO BE 9DE$ A PROBLEM ( ACCUMULATION1 ?AT IS TO SAY ( 5L>G$ CAPITALI/ REPRODUCTION4 ,BO? TRAC$ ! DI/URBANCES 9 ! EQUILIBRIUM ( REPRODUCTION TO ACCUMULATIVE T5D5CIES D5Y+ ! POSSIBILITY ( ACCUMULATION1 ) ! ONLY DIFF]5CE ?AT ! ONE RECOMM5D$ A DAMP] ON ! PRODUCTIVE =CES AS A REM$Y1 :ILE ! O!R FAVOR$ !IR 9CREAS+ EMPLOYM5T TO PRODUCE LUXURIES1 ! 5TIRE SURPLUS VALUE TO BE CONSUM$4 ,9 ?IS FIELD1 TOO1 ,RODB]TUS FOLL[S HIS [N SOLIT>Y PA?4 ,! O!RS MI<T TRY ) MORE OR LESS SUCCESS TO COMPREH5D ! FACT ( CAPITALI/ ACCUMULATION1 BUT ,RODB]TUS PREF]S TO FI<T ! V]Y CONCEPT4 ',ECONOMI/S S9CE ,ADAM ,SMI? HAVE ONE AFT] ! O!R E*O$ ! PR9CIPLE1 SETT+ IT UP AS A UNIV]SAL & ABSOLUTE TRU?1 ?AT CAPITAL C\LD ONLY COME AB\T BY SAV+ & ACCUMULAT+4'7#a#b7 

,RODB]TUS IS UP 9 >MS AGA9/ ?IS 'DELUD$ JUDGM5T'4 ,OV] SIXTY PAGES ( PR9T HE SETS1 \T 9 DETAIL ?AT 7A7 IT IS NOT SAV+ :I* IS ! S\RCE ( CAPITAL BUT LABOR1 ?AT 7B7 ! ECONOMI/S' 'DELUSION' AB\T 'SAV+' HAILS FROM ! EXTRAVAGANT VIEW ?AT CAPITAL IS ITSELF PRODUCTIVE1 & ?AT 7C7 ?IS DELUSION IS ULTIMATELY DUE TO ANO!R3 ! ]ROR ?AT CAPITAL IS - CAPITAL4 

V4 ,KIR*MANN = HIS P>T UND]/OOD QUITE WELL :AT IS AT ! BOTTOM ( CAPITALI/ 'SAV+S'4 ,HE HAD ! PRETTY >GUM5T3 

',EV]YONE KN[S ?AT ! ACCUMULATION ( CAPITAL IS NOT A M]E HO>D+ ( RES]VES1 AN AMASS+ ( METAL & MONIES TO REMA9 IDLE 9 ! [N]S' VAULTS4 ,?OSE :O WANT TO SAVE DO IT = ! SAKE ( REEMPLOY+ !IR SAV+S EI!R P]SONALLY OR ?R\< ! AG5CY ( O!RS AS CAPITAL1 9 ORD] TO YIELD !M REV5UE4 ,?AT IS ONLY POSSIBLE IF !SE CAPITALS >E US$ 9 NEW 5T]PRISES :I* CAN PRODUCE SO AS TO PROVIDE ! REQUIR$ 9T]E/4 ,ONE MAY BUILD A %IP1 ANO!R A B>N1 A ?IRD MAY RECLAIM A DESOLATE SWAMP1 A F\R? MAY ORD] A NEW SP9N+ FRAME1 :ILE A FIF?1 9 ORD] TO 5L>GE HIS %OE-MAK+ BUS9ESS1 W\LD BUY MORE LEA!R & EMPLOY MORE H&S - & SO ON4 ,ONLY IF ! CAPITAL ?AT HAS BE5 SAV$ IS EMPLOY$ 9 ?IS WAY1 CAN IT YIELD 9T]E/ 7TEAM+ PR(IT71 & ! LATT] IS ! ULTIMATE OBJECT ( ALL SAV+4'7#a#c7 

,?AT IS H[ V4 ,KIR*MANN DESCRIB$ SOME:AT CLUMSILY1 BUT ON ! :OLE CORRECTLY1 :AT IS 9 FACT ! CAPITALIZATION ( SURPLUS VALUE1 ! PROCESS ( CAPITALI/ ACCUMULATION1 :I* CON/ITUTES ! :OLE SIGNIFICANCE ( SAV+1 ADVOCAT$ BY CLASSICAL ECONOMI/S 'S9CE ,ADAM ,SMI?' ) UN]R+ 9/9CT4 ,DECL>+ W> ON SAV+ & ACCUMULATION WAS QUITE 9 KEEP+ ) V4 ,KIR*MANN'S PREMISES1 CONSID]+ ?AT HE1 LIKE ,SISMONDI1 SAW ! IMM$IATE CAUSE ( ! CRISES 9 ACCUMULATION4 ,H]E1 TOO1 ,RODB]TUS IS MORE '?OR\<'4 ,HAV+ LE>N$ FROM ,RIC>DO'S !ORY ( VALUE ?AT LABOR IS ! S\RCE ( ALL VALUE1 & CONSEQU5TLY ( CAPITAL1 TOO1 HE IS COMPLETELY BL9D$ BY ?IS ELEM5T>Y PIECE ( KN[L$GE TO ! 5TIRE COMPLEXITY ( CAPITALI/ PRODUCTION & CAPITAL MOVEM5TS4 ,S9CE CAPITAL IS G5]AT$ BY LABOR1 BO? ! ACCUMULATION ( CAPITAL1 I4E4 'SAV+'1 & ! CAPITALIZATION ( ! SURPLUS VALUE >E NO?+ BUT EYEWA%4 

,9 ORD] TO UNTANGLE ?IS 9TRICATE NETWORK ( ]RORS BY 'ECONOMI/S S9CE ,ADAM ,SMI?'1 HE TAKES1 AS WE MI<T EXPECT1 ! EXAMPLE ( ! 'ISOLAT$ HUSB&MAN' & PROVES ALL ?AT HE NE$S BY A LONG-DRAWN VIVISECTION ( ! UNHAPPY CREATURE4 ,H]E ALREADY HE DISCOV]S 'CAPITAL'1 ?AT IS TO SAY1 ( C\RSE1 ?AT FAM\S 'ORIG9AL /ICK' ) :I* 'ECONOMI/S S9CE ,ADAM ,SMI?' HAVE HOOK$ ! FRUITS ( A !ORY ( CAPITAL FROM ! TREE ( KN[L$GE4 ',W\LD SAV+ BE ABLE TO PRODUCE ?IS /ICK8' IS HIS QU]Y4 ,& S9CE EV]Y NORMAL P]SON WILL UND]/& ?AT 'SAV+' CANNOT PRODUCE ANY /ICK1 ?AT ,ROB9SON .<,CRUSOE.> MU/ HAVE MADE IT ( WOOD1 WE HAVE ALREADY PROV$ ?AT ! 'SAV+S' !ORY IS QUITE MI/AK54 ,PRES5TLY ! ISOLAT$ HUSB&MAN HOOKS A FRUIT FROM ! TREE ) ! /ICK1 & ?IS FRUIT IS HIS '9COME'4 

',IF CAPITAL W]E ! S\RCE ( 9COME1 ALREADY ?IS MO/ ELEM5T>Y & PRIMITIVE EV5T W\LD HAVE TO GIVE EVID5CE ( ?IS RELATION4 ,W\LD IT BE TRUE TO SAY1 !N1 )\T DO+ VIOL5CE TO FACTS & CONCEPTS1 ?AT ! /ICK IS A S\RCE ( 9COME OR ( P>T ( ! 9COME CONSI/+ 9 ! FRUIT BR\<T D[N8 CAN WE TRACE 9COME1 :OLLY OR 9 P>T1 BACK TO ! /ICK AS ITS CAUSE1 MAY WE CONSID] IT1 :OLLY OR 9 P>TS1 AS A PRODUCT ( ! /ICK8'7#a#d7 

,SURELY NOT4 ,& S9CE ! FRUIT IS ! PRODUCT1 NOT ( ! /ICK :I* BR\<T IT D[N1 BUT ( ! TREE :I* GREW IT1 ,RODB]TUS HAS ALREADY PROV$ ?AT ALL 'ECONOMI/S S9CE ,ADAM ,SMI?' >E GROSSLY MI/AK5 IF !Y MA9TA9 ?AT 9COME D]IVES FROM CAPITAL4 ,AFT] A CLE> EXPOSITION ( ALL FUNDAM5TAL CONCEPTS ( ECONOMICS ON ! EXAMPLE ( ,ROB9SON .<,CRUSOE.>'S 'ECONOMY'1 ,RODB]TUS TRANSF]S ! KN[L$GE ?US ACQUIR$ FIR/ TO A FICTITI\S SOCIETY ')\T [N]%IP 9 CAPITAL OR L&'1 ?AT IS TO SAY TO A SOCIETY ) A COMMUNI/ MODE ( POSSESSION1 & !N TO A SOCIETY ') [N]%IP 9 CAPITAL & L&'1 ?AT IS TO SAY CONTEMPOR>Y SOCIETY1 &1 LO & BEHOLD - ALL ! LAWS ( ,ROB9SON .<,CRUSOE.>'S ECONOMY APPLY PO9T = PO9T TO !SE TWO =MS ( SOCIETY AS WELL4 ,RODB]TUS CONTRIVES H]E A !ORY ( CAPITAL & 9COME :I* IS ! V]Y CR[N ( HIS ,UTOPIAN IMAG9ATION4 ,S9CE HE HAS DISCOV]$ ?AT ,ROB9SON .<,CRUSOE.>'S 'CAPITAL' IS ! MEANS ( PRODUCTION PURE & SIMPLE1 HE ID5TIFIES CAPITAL ) ! MEANS ( PRODUCTION 9 CAPITALI/ ECONOMY AS WELL4 ,?US R$UC+ CAPITAL1 ) A WAVE ( HIS H&1 TO CON/ANT CAPITAL1 HE PROTE/S 9 ! NAME ( JU/ICE & MORALITY AGA9/ ! FACT ?AT ! WAGES1 ! WORK]S' MEANS ( SUBSI/5CE1 >E ALSO CONSID]$ CAPITAL4 ,HE CONT5DS FURI\SLY AGA9/ ! CONCEPT ( V>IABLE CAPITAL1 SEE+ 9 IT ! CAUSE ( EV]Y DISA/]4 ',IF ONLY'1 HE GRIEVES1 'ECONOMI/S W\LD PAY ATT5TION TO :AT ,I SAY1 IF ONLY !Y W\LD EXAM9E )\T PREJUDICE :E!R !Y >E RI<T OR ,I4 ,?IS IS ! FOCAL PO9T ( ALL ]RORS AB\T CAPITAL 9 ! RUL+ SY/EM1 ?IS IS ! ULTIMATE S\RCE ( 9JU/ICE AGA9/ ! WORK+ CLASSES1 9 !ORY & PRACTICE ALIKE4'7#a#e7 

,= 'JU/ICE' DEM&S ?AT ! GOODS CON/ITUT+ ! 'REAL WAGES' ( ! WORK]S BE C\NT$1 NOT AS P>T ( CAPITAL1 BUT AS BELONG+ TO ! CATEGORY ( 9COME4 ,?\< ,RODB]TUS KN[S V]Y WELL ?AT ! CAPITALI/ MU/ REG>D ! WAGES HE HAS 'ADVANC$' AS P>T ( HIS CAPITAL1 JU/ LIKE ! O!R P>T LAID \T ON IMM$IATE MEANS ( PRODUCTION1 YET 9 HIS OP9ION ?IS APPLIES ONLY TO 9DIVIDUAL CAPITALS4 ,AS SOON AS IT IS A QUE/ION ( ! SOCIAL AGGREGATE PRODUCT1 ( REPRODUCTION AS A :OLE1 HE DECL>ES ! CAPITALI/ CATEGORIES ( PRODUCTION AN ILLUSION1 A MALICI\S LIE & A 'WRONG'4 ',CAPITAL P] SE 7PROP]LY SO-CALL$71 ! ITEMS :I* MAKE UP CAPITAL1 CAPITAL FROM ! NATION'S PO9T ( VIEW1 IS SOME?+ QUITE DIFF]5T FROM PRIVATE CAPITAL1 CAPITAL ASSETS1 CAPITAL PROP]TY1 ALL ?AT 0CAPITAL0 9 ! MOD]N USE ( ! T]M USUALLY /&S =4'7#a#f7 

,AN 9DIVIDUAL CAPITALI/ PRODUCES BY CAPITALI/ ME?ODS1 BUT SOCIETY AS A :OLE MU/ PRODUCE LIKE ,ROB9SON .<,CRUSOE.>1 AS A COLLECTIVE [N] EMPLOY+ COMMUNI/ ME?ODS4 

',IT MAKES NO DIFF]5CE FROM ?IS G5]AL & NATIONAL PO9T ( VIEW ?AT GREAT] OR SMALL] P>TS ( ! AGGREGATE NATIONAL PRODUCT >E N[ [N$ 9 ALL ! V>I\S PHASES ( PRODUCTION BY PRIVATE P]SONS :O MU/ NOT BE NUMB]$ AMONG ! PRODUC]S PROP]1 & ?AT ! LATT] ALWAYS MANUFACTURE ?IS NATIONAL AGGREGATE PRODUCT AS S]VANTS - )\T %>+ 9 ! [N]%IP ( !IR [N PRODUCT - ( !SE FEW [N]S4' 

,C]TA9 PECULI>ITIES ( ! RELATIONS )9 ! SOCIETY AS A :OLE NO D\BT RESULT FROM ?IS1 NAMELY 7#a7 ! 9/ITUTION ( 'EX*ANGE' AS AN 9T]M$I>Y1 & 7#b7 ! 9EQUALITY 9 ! DI/RIBUTION ( ! PRODUCT4 

',YET ALL !SE CONSEQU5CES DO NOT AFFECT ! MOVEM5TS ( NATIONAL PRODUCTION & ! %AP+ ( ! NATIONAL PRODUCT :I* >E ALWAYS ! SAME1 N[ AS EV] 7UND] ! RULE ( COMMUNISM71 NO MORE ?AN !Y ALT] 9 ANY RESPECT1 AS F> AS ! NATIONAL PO9T ( VIEW IS CONC]N$1 ! CONTRA/ BETWE5 CAPITAL & 9COME SO F> E/ABLI%$4' 

,SISMONDI HAD LABOR$ 9 ! SWEAT ( HIS BR[1 AS HAD ,SMI? & MANY O!RS TO DIS5TANGLE ! CONCEPTS ( CAPITAL & 9COME FROM ! CONTRADICTIONS ( CAPITALI/ PRODUCTION4 ,RODB]TUS HAS A SIMPL] ME?OD & AB/RACTS FROM ! SPECIFIC =MS DET]M9$ BY CAPITALI/ PRODUCTION = SOCIETY AS A :OLE2 HE SIMPLY CALLS ! MEANS ( PRODUCTION 'CAPITAL' & ! >TICLE ( CONSUMPTION 'REV5UE' & LEAVES IT AT ?AT4 

',! ESS5TIAL 9FLU5CE ( [N]%IP 9 L& & CAPITAL APPLIES ONLY TO 9DIVIDUALS HAV+ TRAFFIC ) ONE ANO!R4 ,IF ! NATION IS TAK5 AS A UNIT1 ! EFFECTS ( SU* [N]%IP UPON ! 9DIVIDUALS COMPLETELY DISAPPE>4'7#a#g7 

,WE SEE ?AT AS SOON AS ,RODB]TUS COMES UP AGA9/ ! REAL PROBLEM1 ! CAPITALI/ AGGREGATE PRODUCT & ITS MOVEM5TS1 HE EXHIBITS ! ,UTOPIAN'S *>ACT]I/IC OBTUS5ESS 9 RESPECT ( ! HI/ORICAL PECULI>ITIES ( PRODUCTION4 ,M>X'S COMM5T ON ,PR\DHON1 ?AT 'SPEAK+ ( SOCIETY AS A :OLE1 HE PRET5DS ?AT ?IS SOCIETY IS NO LONG] CAPITALI/' !RE=E FITS HIM LIKE A GLOVE4 ,! CASE ( ,RODB]TUS AGA9 EXEMPLIFIES H[ EV]Y ECONOMI/ BE=E ,M>X HAD BE5 AT A LOSS :5 IT CAME TO H>MONIZ+ ! CONCRETE ASPECTS ( ! LABOR PROCESS ) ! P]SPECTIVE ( CAPITALI/ PRODUCTION :I* REG>DS EV]Y?+ 9 T]MS ( VALUE1 TO M$IAT+ BETWE5 ! =MS ( MOVEM5T P]=M$ BY 9DIVIDUAL CAPITALS & ! MOVEM5T ( SOCIAL CAPITAL4 ,SU* EF=TS AS A RULE VACILLATE FROM ONE EXTREME TO ANO!R3 ! %ALL[ APPROA* ( ,SAY & ,MAC,CULLO*1 RECOGNIZ+ ONLY ! CONCEPTIONS ( 9DIVIDUAL CAPITAL1 & ! ,UTOPIAN APPROA* ( ,PR\DHON & ,RODB]TUS :O RECOGNIZE ONLY ?OSE ( ! PROCESS ( LABOR4 ,?AT IS ! CONTEXT 9 :I* ,M>X'S P5ETRATION APPE>S 9 ITS TRUE LI<T4 ,HIS DIAGRAM ( SIMPLE REPRODUCTION ILLUM9ATES ! 5TIRE PROBLEM BY GA!R+ UP ALL !SE P]SPECTIVES 9 !IR H>MONY & !IR CONTRADICTIONS1 & SO RESOLVES ! HOPELESS OBSCURITIES ( 9NUM]ABLE TOMES 9TO TWO R[S ( FIGURES ( /RIK+ SIMPLICITY4 

,ON ! /R5G? ( SU* VIEWS ON CAPITAL & 9COME AS !SE1 CAPITALI/ APPROPRIATION IS CLE>LY QUITE IMPOSSIBLE TO UND]/&4 ,9DE$1 ,RODB]TUS SIMPLY BR&S IT AS 'ROBB]Y' & 9DICTS IT BE=E ! =UM ( ! RI<TS ( PROP]TY IT SO BLATANTLY VIOLATES4 

',?IS P]SONAL FRE$OM ( ! WORK]S :I* \<T LEGALLY TO 9VOLVE [N]%IP 9 ! VALUE ( ! LABOR PRODUCT1 LEADS 9 PRACTICE TO !IR R5UNCIATION ( ! PROPRIET>Y CLAIMS EXTORT$ UND] PRESSURE ( [N]%IP 9 L& & CAPITAL2 BUT ! [N]S DO NOT ADMIT TO ?IS GREAT & UNIV]SAL WRONG1 ALMO/ AS ?\< !Y W]E 9/9CTIVELY AFRAID ?AT HI/ORY MI<T FOLL[ ITS [N /]N & 9EXORABLE LOGIC4'7#a#h7 

,RODB]TUS' '!ORY 9 ALL ITS DETAILS IS !RE=E CONCLUSIVE PRO( ?AT ?OSE :O PRAISE PRES5T-DAY RELATIONS ( [N]%IP )\T BE+ ABLE AT ! SAME TIME TO GR\ND [N]%IP 9 ANY?+ BUT LABOR1 COMPLETELY CONTRADICT !IR [N PR9CIPLE4 ,IT PROVES ?AT ! PROP]TY RELATIONS ( TO-DAY >E 9 FACT F\ND$ ON A UNIV]SAL VIOLATION ( ?IS PR9CIPLE1 ?AT ! GREAT 9DIVIDUAL =TUNES BE+ AMASS$ 9 SOCIETY N[ADAYS >E ! RESULT ( CUMULATIVE ROBB]Y M\NT+ UP 9 SOCIETY ) EV]Y NEWBORN WORK] S9CE TIME IMMEMORIAL4'7#a#i7 

,S9CE SURPLUS VALUE IS ?US BR&$ AS 'ROBB]Y'1 AN 9CREAS+ RATE ( SURPLUS VALUE MU/ APPE> AS A /RANGE ]ROR ( PRES5T DAY ECONOMIC 'ORGANIZATION'4 ,BRISSOT'S CRUDE P>ADOX ) ITS REVOLUTION>Y R+ - 'PROP]TY IS !FT' - HAD BE5 ! />T+ PO9T = ,PR\DHON'S FIR/ PAMPHLET1 BUT ,RODB]TUS' !SIS IS QUITE ANO!R MATT]1 >GU+ ?AT CAPITAL IS !FT P]PETRAT$ ON PROP]TY4 ,IT NE$ ONLY BE SET SIDE BY SIDE ) ,M>X'S *APT] ON ! TRANS=MATION ( ! LAWS ( [N]%IP 9TO ! LAWS ( CAPITALI/ APPROPRIATION - ?IS TRIUMPH ( HI/ORICAL DIALECTICS 9 VOL4I ( ,M>X'S ,CAPITAL - 9 ORD] TO %[ UP ,RODB]TUS' 'PRIORITY'4 ,BY RANT+ AGA9/ CAPITALI/ APPROPRIATION UND] ! ASPECT ( ! 'RI<T ( PROP]TY'1 ,RODB]TUS CLOS$ HIS M9D TO CAPITAL AS ! S\RCE ( SURPLUS VALUE JU/ AS EFFECTIVELY AS HE HAD PREVI\SLY BE5 PREV5T$ BY HIS TIRADES AGA9/ 'SAV+' FROM SEE+ ! SURPLUS VALUE AS A S\RCE ( CAPITAL4 ,HE IS ?US 9 ALT EV5 WORSE POSITION ?AN V4 ,KIR*MANN1 LACK+ ALL QUALIFICATIONS = UND]/&+ CAPITALI/ ACCUMULATION4 

,:AT IT AM\NTS TO IS ?AT ,RODB]TUS WANTS UNRE/RICT$ EXPANSION ( PRODUCTION )\T SAV+1 ?AT IS TO SAY )\T CAPITALI/ ACCUMULATION6 ,HE WANTS AN UNLIMIT$ GR[? ( ! PRODUCTIVE =CES1 & AT ! SAME TIME A RATE ( SURPLUS VALUE /ABILIZ$ BY AN ACT ( LAW4 ,9 %ORT1 HE %[S HIMSELF QUITE UNABLE TO GRASP ! REAL F\NDATIONS ( CAPITALI/ PRODUCTION HE WI%ES TO RE=M1 & TO UND]/& ! MO/ IMPORTANT RESULTS ( ! CLASSICAL ECONOMICS HE CRITICIZES SO ADV]SELY4 

,IT IS NO MORE ?AN TO BE EXPECT$1 !RE=E1 ?AT ,PR(4 ,DIEHL %\LD DECL>E ,RODB]TUS A PIONE] ( ECONOMIC !ORY ON ! /R5G? ( HIS 'NEW !ORY ( 9COME' & ( ! DI/9CTION BETWE5 ! LOGICAL & ! HI/ORICAL CATEGORIES ( CAPITAL 7CAPITAL PROP]LY SO-CALL$ 9 CONTRA/ TO 9DIVIDUAL CAPITAL71 ?AT ,PR(4 ,ADOLF ,WAGN] %\LD CALL HIM ! ',RIC>DO ( ECONOMIC SOCIALISM'1 PROV+ HIMSELF IGNORANT AT ONCE ( ,RIC>DO1 ,RODB]TUS & SOCIALISM ALIKE4 ,LEXIS EV5 JUDGES ?AT ,RODB]TUS IS AT LEA/ ! EQUAL ( 'HIS ,BRITI% RIVAL' 9 P[] ( AB/RACT ?9K+1 & BY F> HIS SUP]IOR 9 'VIRTUOSITY TO ,SAY B>E ! PH5OM5A 9 !IR ULTIMATE CONNECTIONS'1 9 'IMAG9ATIVE VITALITY'1 & ABOVE ALL 9 HIS 'E?ICAL APPROA* TO ECONOMIC LIFE'4 ,RODB]TUS' REAL A*IEVEM5TS 9 ECONOMIC !ORY H[EV]1 O!R ?AN HIS CRITIQUE ( ,RIC>DO'S GR\ND-R5T1 HIS AT TIMES QUITE CLE>-CUT DI/9CTION BETWE5 SURPLUS VALUE & PR(IT1 HIS TREATM5T ( ! SURPLUS VALUE AS A :OLE 9 DELIB]ATE CONTRA/ ) ITS P>TIAL MANIFE/ATIONS1 HIS CRITIQUE ( ,SMI?'S DOGMA CONC]N+ ! ANALYSIS ( COMMODITIES 9 T]MS ( VALUE1 HIS PRECISE =MULATION ( ! P]IODICAL *>ACT] ( ! CRISES & HIS ANALYSIS ( !IR MANIFE/ATIONS - ALL !SE ATTEMPTS TO C>RY ! 9VE/IGATION BEYOND ,SMI?1 ,RIC>DO & ,SAY1 PROMIS+ AS SU*1 ?\< DOOM$ TO FAILURE BECAUSE ( ! CONFUS$ BASIC CONCEPTS1 >E RA!R ABOVE ! HEADS ( ,RODB]TUS' (FICIAL ADMIR]S4 ,AS ,FRANZ ,MEHR+ ALREADY PO9T$ \T1 IT WAS ,RODB]TUS' /RANGE =TUNE TO BE LAUD$ TO HEAV5 = HIS ALLEG$ PR[ESS 9 ECONOMICS1 BY ! SAME PEOPLE :O CALL$ HIM TO TASK = HIS REAL M]ITS 9 POLITICS4 ,?IS CONTRA/ BETWE5 ECONOMIC & POLITICAL A*IEVEM5TS1 H[EV]1 DOES NOT CONC]N US H]E3 9 ! REALM ( ECONOMIC !ORY1 HIS ADMIR]S BUILT HIM A GR& MEMORIAL ON ! B>R5 FIELD HE HAD DUG ) ! HOPELESS ZEAL ( ! VISION>Y1 :ILE ! MODE/ B$S :]E HE HAD S[N A FEW F]TILE SE$S1 W]E ALL[$ TO BE SMO!R$ ) WE$S & =GOTT547#b7 

,IT CANNOT BE SAID ?AT ! PROBLEM ( ACCUMULATION HAD ON ! :OLE BE5 MU* ADVANC$ BEYOND ! FIR/ CONTROV]SY BY ?IS ,PRUSSO-,POM]ANIAN TREATM5T4 ,IF 9 ! 9T]IM ! ECONOMIC !ORY ( H>MONY HAD DROPP$ FROM ! LEVEL ( ,RIC>DO TO ?AT ( A ,BA/IAT-,S*ULTZE1 SOCIAL CRITICISM HAD CORRESPOND+LY DECL9$ FROM ,SISMONDI TO ,RODB]TUS4 ,SISMONDI'S CRITIQUE ( #ahai HAD BE5 AN HI/ORICAL EV5T1 BUT ,RODB]TUS' IDEAS ( RE=M1 EV5 ON !IR FIR/ APPE>ANCE1 W]E A MIS]ABLE REGRESSION - /ILL MORE SO ON !IR SUBSEQU5T REIT]ATION4 

,9 ! CONTROV]SY BETWE5 ,SISMONDI ON ! ONE H& & ,SAY & ,RIC>DO ON ! O!R1 ONE P>TY PROV$ ?AT ACCUMULATION WAS IMPOSSIBLE BECAUSE ( ! CRISES1 & !RE=E W>N$ AGA9/ FULL DEVELOPM5T ( ! PRODUCTIVE =CES4 ,! O!R P>TY PROV$ ?AT CRISES W]E IMPOSSIBLE & ADVOCAT$ AN UNLIMIT$ DEVELOPM5T ( ACCUMULATION4 ,?\< ALL >GU$ FROM WRONG PREMISES1 EA* WAS LOGICALLY CONSI/5T4 

V4 ,KIR*MANN & ,RODB]TUS BO? />T$1 W]E B\ND TO />T1 FROM ! FACT ( CRISES4 ,H]E ! PROBLEM ( 5L>G$ REPRODUCTION ( AGGREGATE CAPITAL1 ! PROBLEM ( ACCUMULATION1 WAS COMPLETELY ID5TIFI$ ) ! PROBLEM ( CRISES & SIDE-TRACK$ 9 AN ATTEMPT TO F9D A REM$Y = ! CRISES1 AL?\< ! HI/ORICAL EXP]I5CE ( FIFTY YE>S HAD %[N ALL TOO CLE>LY ?AT CRISES1 AS WITNESS$ BY !IR P]IODICAL RECURR5CE1 >E A NECESS>Y PHASE 9 CAPITALI/ REPRODUCTION4 ,ONE SIDE N[ SEES ! REM$Y 9 ! COMPLETE CONSUMPTION ( ! SURPLUS VALUE BY ! CAPITALI/1 ?AT IS TO SAY 9 REFRA9+ FROM ACCUMULATION1 ! O!R 9 /ABILIZATION ( ! RATE ( SURPLUS VALUE BY LEGISLATIVE MEASURES :I* COMES TO ! SAME ?+1 I4E4 R5\NC+ ACCUMULATION ALTOGE!R4 ,?IS SPECIAL FAD ( ,RODB]TUS' SPRANG FROM HIS F]V5T & EXPLICIT BELIEF 9 AN UNLIMIT$ CAPITALI/ EXPANSION ( ! PRODUCTIVE =CES & ( WEAL?1 )\T ACCUMULATION ( CAPITAL4 ,AT A TIME :5 CAPITALI/ PRODUCTION WAS DEVELOP$ TO A DEGREE :I* WAS SOON TO 5ABLE ,M>X TO MAKE HIS FUNDAM5TAL ANALYSIS1 ! LA/ ATTEMPT ( B\RGEOIS ECONOMICS TO COPE ) ! PROBLEM ( REPRODUCTION DEG5]AT$ 9TO ABSURD & PU]ILE ,UTOPIANISM4 

@> 

,FOOTNOTES 

7#a7,S*RIFT51 VOL4III1 P4#a#g#f4 

7#b7,OP4 CIT41 VOL4I1 PP4#e#c1 #e#g4 

7#c7,IBID41 P4#b#f4 

7#d7,IBID41 P4#a#i4 

7#e7,OP4 CIT41 VOL4II1 P4#a#a4 

7#f7,IBID41 P4#a#d#d4 

7#g7,IBID41 P4#a#d#f4 

7#h7,IBID41 P4#a#e#e4 

7#i7,IBID41 P4#b#b#c4 

7#a7,IBID41 P4#b#b#f4 

7#a#a7,IBID41 P4#a#e#f4 

7#a#b7,OP4 CIT41 VOL4I1 P4#d4 

7#a#c7,OP4 CIT41 VOL4II1 P4#b#e4 

7#a#d7,OP4 CIT41 VOL4I1 P4#b#e4 

7#a#e7,IBID41 P4#b#i#e4 ,RODB]TUS REIT]ATES DUR+ A LIFETIME ! IDEAS HE HAD EVOLV$ AS E>LY AS #ahdb 9 HIS ,T[>DS ! ,UND]/&+ ( ,\R ,POLITICO-,ECONOMIC ,CONDITIONS4 

',UND] PRES5T CONDITIONS1 WE HAVE1 H[EV]1 GONE SO F> AS TO CONSID] NOT ONLY ! WAGE ( LABOR P>T ( ! CO/S ( ! GOODS1 BUT ALSO R5TS & CAPITAL PR(ITS4 ,WE MU/ !RE=E REFUTE ?IS OP9ION 9 DETAIL4 ,IT HAS A TW(OLD F\NDATION3 7A7 A WRONG CONCEPTION ( CAPITAL :I* C\NTS ! WAGE ( LABOR AS P>T ( ! CAPITAL JU/ LIKE MAT]IALS & TOOLS1 :ILE IT IS ON ! SAME LEVEL AS R5T & PR(IT2 7B7 A CONFUSION ( ! CO/S ( ! COMMODITY & ! ADVANCES ( ! 5TREPR5EUR OR ! CO/S ( ! 5T]PRISE' 7,T[>DS ! ,UND]/&+ ( ,\R ,POLITICO-,ECONOMIC ,CONDITIONS1 ,NEUBR&5BURG @& ,FRI$L&1 ,G4 ,B>NOVITZ1 #a#h#d#b1 P4#a#d74 

7#a#f7,S*RIFT51 VOL4I1 P4#c#d4 ,JU/ SO ALREADY 9 ,T[>DS ! ,UND]/&+ ( ,\R ,POLITICO-,ECONOMIC ,CONDITIONS1 

',WE MU/ DI/+UI% BETWE5 CAPITAL 9 ITS N>R[ OR PROP] S5SE1 & ! FUND ( 5T]PRISE1 OR CAPITAL 9 A WID] S5SE4 ,! =M] COMPRISES ! ACTUAL RES]VES 9 TOOLS & MAT]IALS1 ! LATT] ! F9D NECESS>Y = RUNN+ AN 5T]PRISE UND] PRES5T CONDITIONS ( DIVISION ( LABOR4 ,! =M] IS CAPITAL ABSOLUTELY NECESS>Y TO PRODUCTION1 & ! LATT] A*IEVES SU* RELATIVE NECESSITY ONLY BY =CE ( PRES5T CONDITIONS4 ,H5CE ONLY ! =M] IS CAPITAL 9 ! /RICT & PROP] MEAN+ ( ! T]M2 ?IS ALONE IS COMPLETELY CONGRU5T ) ! CONCEPT ( NATIONAL CAPITAL' 7IBID41 PP4 #b#c-#d74 

7#a#g7,S*RIFT51 VOL4I1 P4#b#i#b4 

7#a#h7,OP4 CIT41 VOL4II1 P4#a#c#f4 

7#a#i7,IBID41 P4#b#b#e4 

7#b7 ,A MEMORIAL ( ! WOR/ K9D1 BY ! WAY1 WAS ?AT ( ! $ITORS :O PUBLI%$ HIS WORKS AFT] HIS DEA?4 ,!SE LE>N$ G5TLEM51 ,MESSRS4 ,WAGN]1 ,KOZAK1 ,MORITZ ,WU]TZ @& ,CO41 QU>REL$ 9 ! PREFACES TO HIS PO/HUM\S WRIT+S LIKE A R\< CR[D ( ILL-MANN]$ S]VANTS 9 AN ANTE*AMB]1 FI<T+ \T PUBLICLY !IR PETTY P]SONAL FEUDS & JEAL\SIES1 & SLANG+ ONE ANO!R4 ,!Y DID NOT EV5 BO!R 9 COMMON DEC5CY TO E/ABLI% ! DATES = ! 9DIVIDUAL MANUSCRIPTS !Y HAD F\ND4 ,TO TAKE AN 9/ANCE1 IT NE$$ ,MEHR+ TO OBS]VE ?AT ! OLDE/ MANUSCRIPT ( ,RODB]TUS ?AT HAD BE5 F\ND WAS NOT PUBLI%$ 9 #a#h#c#g1 AS LAID D[N AUTOCRATICALLY BY ,PR(4 ,WAGN]1 BUT 9 #ahci AT ! E>LIE/1 S9CE IT REF]S 9 ITS OP5+ P>AGRAPHS TO HI/ORICAL EV5TS CONNECT$ ) ! ,*>TI/ MOVEM5T BELONG+1 AS A PR(ESSOR ( ECONOMICS REALLY \<T TO KN[1 9 ! YE> #a#h#c#i4 ,9 ,PR(ESSOR ,WAGN]'S 9TRODUCTION TO ,RODB]TUS WE >E CON/ANTLY BOR$ BY HIS POMPOSITY1 HIS H>P+ ON ! EXCESSIVE DEM&S ON HIS TIME2 9 ANY EASE ,WAGN] ADDRESSES HIMSELF SOLELY TO HIS LE>N$ COLLEAGUES & TALKS ABOVE ! HEADS ( ! COMMON CR[D2 HE PASSES OV] 9 SIL5CE1 AS BEFITS A GREAT MAN1 ,MEHR+'S ELEGANT CORRECTION BE=E ! ASSEMBL$ EXP]TS4 ,JU/ AS SIL5TLY1 ,PR(ESSOR ,DIEHL ALT]$ ! DATE ( #ahcg TO #ahci 9 ! ,H&WORT]BU* D] ,/AATSWISS5S*AFT51 )\T A WORD TO SAY :5 & BY :OM HE HAD BE5 ?US 5LI<T5$4 

,BUT ! F9AL T\* IS PROVID$1 BY ! 'POPUL>'1 'NEW & 9EXP5SIVE' $ITION ( ,PUTTKAM] & ,MUEHLBRE*T 7#a#h#i#i74 ,SOME ( ! QU>REL+ $ITORS COLLABORAT$ ON IT BUT /ILL CONT9UE !IR DISPUTES 9 ! 9TRODUCTIONS4 ,WAGN]'S =M] VOL4II HAS BECOME VOL4I 9 ?IS $ITION1 YET ,WAGN] /ILL REF]S TO VOL4II 9 ! 9TRODUCTION TO VOL4I4 ,! FIR/ ,LETT] ON ,SOCIAL ,PROBLEMS IS PLAC$ 9 VOL4III1 ! SECOND & ?IRD 9 VOL4II & ! F\R? 9 VOL4I4 ,! ORD] ( ! ,LETT]S ON ,SOCIAL ,PROBLEMS1 ( ! ,CONTROV]SIES1 ( ! P>TS ( ,T[>DS ! ,UND]/&+ 4441 *RONOLOGICAL & LOGICAL SEQU5CE1 ! DATES ( PUBLICATION & ( WRIT+ >E HOPELESSLY MIX$ UP1 MAK+ A *AOS MORE IMP5ETRABLE ?AN ! /RATIFICATION ( ! SOIL AFT] REPEAT$ VOLCANIC ]UPTIONS4 #ahcg IS MA9TA9$ AS ! DATE ( ,RODB]TUS' E>LIE/ ,M,S41 PROBABLY \T ( RESPECT TO ,PR(ESSOR ,WAGN] - & ?IS 9 #a#h#i#i1 AL?\< ,MEHR+'S RECTIFICATION HAD BE5 MADE 9 #a#h#i#d4 ,IF WE COMP>E ?IS ) ,M>X'S LIT]>Y H]ITAGE 9 ,MEHR+'S & ,KAUTSKY'S $ITION1 PUBLI%$ BY ,DIETZ1 WE SEE H[ SU* APP>5TLY SUP]FICIAL MATT]S BUT REFLECT DEEP] CONNECTIONS3 ONE K9D ( C>E = ! SCI5TIFIC H]ITAGE ( ! AU?ORITY ( ! CLASS-CONSCI\S PROLET>IAT1 & QUITE ANO!R 9 :I* ! (FICIAL EXP]TS ( ! B\RGEOISIE SQU&] ! H]ITAGE ( A MAN :O1 9 !IR [N SELF 9T]E/$ LEG5DS1 HAD BE5 A FIR/-RATE G5IUS4 ,SUUM CUIQUE - HAD ?IS NOT BE5 ! MOTTO ( ,RODB]TUS8 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #f1 #bba 3 ,SECTION #b1 ,*APT] #ag -- ,ADD$4 

 FILE G5]AT$ FROM 3  
HTTP3_/_/REVOLTLIB4COM_/