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Marx's Grundrisse* the Contradictions of Capatalism

Marx's Grundrisse* the Contradictions of Capatalism

marx'S grundnsse * Che ooncradiccions of ccocaiism

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The appearance of the first English trans­ available in it. The selection made depends lation of Marx’s 1857-8 notebooks on polit­ in part on one’s own interest, and partly on ical economy is a notable event, especially one’s attitude to . for those marxists who have been unable to One set of attitudes is to regard marxism as read it in the original. a finished system containing all that is necess­ To attempt a normal book review of such ary to know the truth about society; the views a work is impossible, and the problem is of Marx himself (supposing them to be known what to select from the wealth of material without question) as resolving present-day arguments and problems; and the method em­ ployed by Marx (supposing that also could be established beyond doubt) as a special meth­ * The Pelican Marx Library, 1973. 898 pp., od, beyond scientific procedures, for reveal­ recommended price $3.25. Translated with ing the truth. a foreword by Martin Nicolaus. The other set of attitudes (held by this Another edition, part of the complete works writer) is to take Marx’s findings as the foun­ of Marx and Engels in English, will shortly be dation for a still developing theory of marx­ published by Lawrence and Wishart. A limited ism; Marx himself as the initiator, wielding edition in two volumes was published in Mos­ his theory, of the modern revolutionary cow in 1939 and 1941, and this edition, bound movement; and the works themselves as in one volume was published in the German virtually inexhaustible sources of fundamen­ Democratic Republic in 1953. tal material, stimulating thought about indiv­ The famous “Preface to ‘A Critique of Political idual problems, the dynamics of Economy’” is a Preface to the section of the as a particular social system, and about gen­ titled “Introduction”, which was eral questions of society, history and phil­ published in 1859. osophy. One other major difference in attitudes ardo .... regards the barriers which product­ is about prediction o f the future. I share ion thereby encounters (that is, in exchange, the views of those who reject the idea that or realisation - E. A.) as accidental, as barr­ marxism is basically a prediction of what iers which are overcome. He therefore will, inevitably, happen (Marx does speak conceives the overcoming of such barriers in these terms on occasion), and consider as being in the essence of .... while the contradictions of capitalism rather as Sismondi, by contrast, emphasises not only the ground of tendencies and possibilities the encounter with the barriers, but their inherent in the system, on which the actual creation by capital itself, and has a vague revolutionary struggle must operate to ach­ intuition that they must lead to its break­ ieve a projected outcome. down .... Ricardo and his entire school In this first article I set out to look at never understood the really modern crises, what Marx says in the Grundrisse about in which this contradiction of capital dis­ the basic ‘contradiction’ (1) of capitalism, charges itself in great thunderstorms which its relationship to the development of the increasingly threaten it as the foundation , and its significance for of a society and of production itself.” revolutionary practice today. (pp. 410-411). The barriers to consumption created ******* by capitalism referred to here are most The main contradiction of capitalism clearly formulated by Marx in Capital may be briefly described as that between where he says: the social nature of production and the priv­ “The last cause of all real crises always ate nature of appropriation, this being the remains the poverty and restricted consump­ ground on which class struggle is generated. tion of the masses as compared to the ten­ In the Grundrisse four main ways in which dency of capitalist production to develop this contradiction expresses itself and their the productive forces in such a way, that relation to the development of the product­ only the absolute power of consumption ive forces are elaborated, and one cannot of the entire society would be their limit.” fail to be impressed again by the far-sighted­ (Capital, Vol. 3, p. 560, Kerr edition). ness and subtlety of Marx’s thought concern­ ing them. In the same passage Marx also points All these expressions of capitalist contra­ out that the consuming power of the dictions are of importance to revolutionar­ workers is restricted both by limits on wages ies today, including some which have been and unemployment, which means that even largely overlooked, perhaps because they this restricted consuming power “can be do not figure prominently in more well- exerted only so long as the labourers can be known works. In Capital, Marx concen­ employed at a for the capitalist trated on two aspects - the periodical class.” economic crises inherent in capitalism, and Marx is of course well aware that a large the falling tendency of the . part of realisation occurs between capital­ ists producing ; that 1. Concerning economic crises, Marx ass­ disproportions between different sectors esses the respective merits and demerits of of industry due to lack of social planning the understanding by economists of the under private ownership also occurs (p.414); processes of capitalism. One approach (exem­ and that bogus transactions and speculation plified by Ricardo) stressed the dynamic nature favoured by the credit system also may pre­ of capitalist development of production and cipitate, deepen, or even on occasions cause, productive forces, while regarding the barr­ particular crises. But these features, import­ iers in consumption which disrupted it as ant though they are in themselves and in the accidental. The other approach (exemplif­ discussion of general crises of overproduct­ ied by Sismondi) stressed that capitalist soc­ ion, are not their deepest source - that is ial relations themselves caused barriers to identified in the quotation above. this development because of the restricted The limits on wages referred to are income of the workers. several. ‘Absolute impoverishment’ (a lower and lower standard of living) and ‘relative “Those economists who, like Ricardo, .... impoverishment’ (a possibly higher stand­ were heedless of the barriers to consumption ard of living, but a falling ‘share’ of total ..... (and) having in view only the develop­ production wealth and therefore a still ment of the forces of production and the richer capitalist class and a growing gap growth of the industrial population - supply between the classes) have been much dis­ without regard to demand - have therefore cussed by marxists. grasped the positive essence of capital more Absolute impoverishment is a strand of correctly and deeply than those who, like thought in Marx’s earlier writings. Martin Sismondi, emphasised the barriers of con­ Nicolaus refers in his foreword to an 1847 sumption .... although the latter has better manuscript ‘On Wages’: grasped the limited nature of production based on capital, its negative one-sidedness. “The manuscript admits wage fluctuat­ The former more its universal tendency, ions over the short term, both up and down, the latter its particular restrictedness. Ric­ due to ‘changing fashions, seasons and states

27 of commerce’, but argues that a downward into a fragment of a man, degrade him to ratchet effect was operative, preventing wages, the level of an appendage of a machine, des­ once they had fallen, from ever rising again troy every remnant of charm in his work and to their full previous level; so that, over the turn it into a hated toil; they estrange from longer term, ‘the minimum .... sinks ever him the intellectual potentialities of the closer to the absolutely lowest level’ and labour-pro cess in the same proportion as ‘ .... the quantity of commodities the work­ science is incorporated in it as an independ­ ers obtain in exchange becomes ever small­ ent power; they distort the conditions under er ”. (pp. 47-8). which he works, subject him during the Later, especially after the development of labour-pro cess to a despotism the more hate­ the theory of surplus , Marx acknowl­ ful for its meanness; they transform his edged the possibility that there may be periods life-time into working-time, and drag his in which standards of wages and living will wife and child beneath the wheels of the rise (e.g. p. 287), although the extent to Juggernaut of capital. But all methods for which this has occurred for large numbers the production of are at the of workers in Australia and other industrially same time methods of accumulation; and developed countries was not anticipated by every extension of accumulation becomes Marx or the overwhelming majority of later again a means for the development of those marxists. Discussion of the reasons for methods. It follows therefore that in prop­ this, its extent and limits, and its contradict­ ortion as capital accumulates, the lot of ory features are outside the scope of this the labourer, be his payment high or low, article, as is a discussion of the generally must grow worse.” (Capital, Vol 1, pp.708-9). greatly decreased levels of unemployment Although the language may seem exagg­ compared with pre-war. erated, all the things raised have at various This is not to say, of course, that an ab­ times been the cause of bitter struggles. solute decrease from the present level may More notable than the language is the not take place following inflation, the energy multiplicity of the expressions of ‘relative crisis, the increasing competition between impoverishment’, if that term is to be capitalist states, and the expected recession retained. This is given still more point in following the strong world boom. On the the further analysis below. contrary, it appears that economic class One other aspect of the ‘limit’ on wages struggles will intensify, presenting possibil­ referred to above should be mentioned. ities as well as problems for revolutionaries. This does not mean a limit which is always The fallacy of ‘absolute impoverishment’ the same set sum, but the fact that capital as a theory rather lies in viewing the revol­ controls the starting and stopping of the ution as being essentially the result of the production process just as it controls the workers being driven to it by absolute mat­ details of its operation once in progress. erial deprivation caused by the inexorable This means that wages cannot rise to the workings of an economic law of the system. extent that they obliterate profit: It is neither established theoretically in “But as soon as this diminution (of marxism that this will happen, nor that mat­ profit as a result of rises in wages) touches erial deprivation will result in revolutionary the point at which the surplus-labour that consciousness, nor that struggle over the nourishes capital is no longer supplied in material living standards at any particular normal quantity, a reaction sets in: a level is always the main expression of the smaller part of revenue is capitalised, acc­ contradictions of the capitalist mode of umulation lags, and the movement of rise production on which revolutionaries should base their confidence in the victory in wages receives a check. The rise of wages therefore is confined within limits that not of socialism. Even ‘relative impoverishment’ (I don’t only leave intact the foundations of the know whether Marx actually used the term) capitalist system, but also secure its reprod­ can be restrictive of outlook if seen in the uction on a progressive scale.” (Capital, narrow sense of taking struggles around Vol. 1, p. 680). This does not mean that the economic material living standards as always the main concern of revolutionaries. struggle is hopeless or wasted, or that there Marx rather paid particular attention to is any inherent limit to the size of demands, the fact that , while of course but that the economic struggle cannot of enriching the capitalist, reproduced the itself be the agency of the overthrow of cap­ relations with which it started — reproduced italism. It follows that the content of the economic struggle and its effects on the the worker as a worker and the capitalist consciousness of the participants must be as a still stronger capitalist, thus maintaining a main consideration of revolutionaries. and strengthening the domination of that class over the working class, while worsening * * * * * * * the all-round position of the worker even if wages went up: 2. The “surplus-labour in normal quantity” “ .... all means for the development of in the quotation above, refers to the average production transform themselves into means rate of profit. The tendency of this rate to of domination over, and exploitation of, fall Marx regarded as one of the main, if not the producers; they mutilate the labourer the main, expression of the limitations of

Al ISTRAI IAN LEFT REVIEW— MARCH/APRIL 1974 the capitalist . But it is recurring catastrophes lead to their repet­ not entirely clear in just what way Marx ition on a higher scale, and finally to its thought the operation of this tendency would violent overthrow.” (pp. 749-50) bring about the downfall of the system, “The rate of profit is the compelling though it was intimately related to crises of power of capitalist production, and only , and their progressive intens­ such things are produced as yield a profit. ification. Hence the fright of the English economists Profit is the motive force, the aim of capit­ over the decline of the rate of profit. That alist production. As class struggles improve the bare possibility of such a thing should the wages, hours of work and conditions of worry Ricardo, shows his profound under­ the workers, and as increasing profit comes standing of the conditions of capitalist to depend more and more on reducing costs production. The reproach moved against of production through new machinery etc., him, that he has an eye only to the devel­ the rate of profit tends to fall. opment of the productive forces regardless This is because the outlay on new mach­ of ‘human beings’, regardless of the sac­ inery increases the total capital employed, rifices in human beings and capital values and the rate of profit is the percentage of incurred, strikes precisely his strong point. profit calculated on this total capital (as dis­ The development of the productive forces tinct from the rate of exploitation, which is of social labour is the historical task and the percentage of surplus value calculated on privilege of capital. It is precisely in this way that it unconsciously creates the mater­ only the variable capital employed, i.e. the ial requirements of a higher mode of prod­ outlay on wages). uction. What worries Ricardo is the fact This fall in the rate of profit may happen a that the rate of profit, the stimulating prin­ at different times in different branches of ciple of capitalist production, the funda­ industry, or in all together. In the latter mental premise and driving force of acc­ case it is usually associated, though not iden­ umulation, should be endangered by the tical with, the crises of overproduction al­ development of production itself. And the ready referred to which also reduces profits. quantitative proportion means everything Thus there is a check to the process of pro­ here.” (Capital, Vol 3, p. 304). duction and the expansion of production A number of problems arise however. through accumulation -- a crisis which is Firstly, is there any particular rate of pro­ sorted out by various means including dep­ fit which would extinguish the vital fire of reciation of the value of much existing cap­ production?It is hard to see this, since the ital, until profitability picks up again through attitude to the rate of profit seems to depend various means, including installation of more more on what others are getting. If most get labour-saving machinery, which renews the 20%, capitalists are unlikely to invest happily cycle on a more advanced basis. at 5. But if the general rate is 5, the position In Marx’s view this has deep implications will be different, especially when the total for the future of capitalism: return is increasing because of the expansion of the total capital. “The violent destruction of capital not (It is true, of course, that unevenness by relations external to it, but rather as a in the fall of profitability in different parts condition of its self-preservation, is the most of industry within a country, and between striking form in which advice is given to be countries, is a cause of much conflict, but gone and to give room to a higher state of it is long-term changes which are the focus social production...... Since this decline of of discussion here.) profit signifies the same as a decrease of immediate labour relative to the size of the Secondly, there are such a variety of coun­ objectified labour which it reproduces and teracting factors, the influence of some of newly posits, capital will attempt every which can be decisive for quite long periods, means of checking the smallness of the re­ that prediction must be very circumspect. lation of living labour to size of the capital (This was, of course, why Marx called it a generally, hence also of the surplus value ‘tendency’)...... by reducing the allotment made to nec­ In fact, crises of overproduction, which essary labour and by still more expanding are intimately linked with the falling rate of the quantity of with regard profit, have not been “repeated on a higher to the whole labour employed. Hence the scale” for the last forty years - there are all highest development of productive power sorts of counteracting factors to the occurr­ together with the greatest expansion of ence and depth of crises of overproduction existing wealth will coincide with deprec­ also. It is not possible here to examine these, iation of capital, degradation of the lab­ but three seem of particular note among ourer, and a most straitened exhaustion of those referred to by Marx. his vital powers. These contradictions lead If radical change in the method of prod­ to explosions, cataclysms, crises, in which uction of new machinery occurs, it is poss­ by momentaneous suspension of labour and ible that the rate of profit will not fall at annihilation of a great portion of capital all, or may even rise despite the decline in the latter is violently reduced to the point the living involved in operating where it can go o n .....Yet, these regularly these new means, and Marx refers to this

29 possibility. However the ‘scientific and tech­ “But to the degree that large industry nological revolution’ has been of such a rad­ develops, the creation of real wealth comes ical nature that many economists feel that to depend less on labour time and on the in the accompanying change from ‘extensive’ amount of labour employed than on the pow­ to ‘intensive’ development, capital may have er of the agencies set in motion during labour even been ‘released’, so that the rate of profit time, whose ‘powerful effectiveness’ is itself may tend to rise. out of all proportion to the direct labour This could be reinforced by the changed time spent on their production, but depends circumstances under which the conditions rather on the general state o f science and on of production are prepared, including the the progress of technology, or the applicat­ taking over of many more responsibilities by ion of this science to production.....As soon the state. as labour in the direct form has ceased to be Then there is the rise of the multinational the great well-spring of wealth, labour time corporation, which has found new means of ceases and must cease to be its measure.....” maintaining or increasing profitability. (pp. 704-5) The other factor concerns the price of raw As capitalism develops the productive materials, and here the cost of energy, espec­ forces on the basis of and ially oil, stands out. Raw materials are an imp­ surplus value as the econom ic forms, “ ...... ortant part of , and if thev are to that degree does direct labour and its cheapened whether by economic, political quantity disappear as the determinant prin­ or military means, the rate of profit may rise ciple of production .... and is reduced both as the productive forces develop. quantitatively, to a smaller proportion, and Perhaps here some attempt at prediction qualitatively, as an, of course, indispensable is justified. The energy crisis is a form in but subordinate moment, compared to gen­ which the ecological issue has burst forth eral scientific labour, technological applic­ with unexpected suddenness and force, even ation of natural sciences, on one side, and though of course it is not purely ecological. to the general productive force arising from In the present relation of world forces social combination in total production on there is little chance that the Arab and other the other side..... Capital thus works to­ producers of the ‘third world’ can be prevent­ wards its own dissolution as the form dom­ ed from halting the previous super-exploitat­ inating production.” (p. 700) ion by imperialism, and greatly raising the price of oil as well as substantially controlling “...... real wealth is the developed prod­ its distribution in pursuit of their own purp­ uctive power of all individuals. The measure oses. This will result in a substantial rise in of wealth is then (when capitalism has suff­ costs directly and indirectly, and an intensif­ iciently developed the productive forces - ied struggle to prevent a decline in the rate E. A.) not any longer, in any way, labour of profit by placing the burden on the work­ time, but rather disposable time. Labour ing population in various ways. (3) time as the measure of value posits wealth While oil is a special case, it is likely that itself as founded in poverty.....” (p. 708) other raw materials produced by underdevel­ It is not immediately apparent how this oped countries will rise substantially in price, aspect of the contradictions of capitalism is as those countries learn from the Arab example. expressed in life itself and in the class Thirdly, the tendency, even if inexorable struggle, but probably it is to be found main­ in the long run ~ despite the many counter­ ly in the further analysis presented below. acting tendencies -- might not be of great However there is one, perhaps unexpected, practical concern to revolutionaries today. way in which this contradiction is increas­ Marx was writing over 100 years ago, yet the ingly making itself felt today. That is also falling rate of profit, if empirically a fact, in the ecological field - resources in this (2) has not crippled capitalism’s motive case -- and their pricing, with oil again the force. Even were we to assume that given prime example. Where value is measured another 100 years it would, this is of a by expenditure of labour time (or in its quite different order from the time scale modified form as price of production), available to us to make urgent fundamental there is no way in which the limitedness changes. In the short period between now of the resource (or the effects of its ex­ and the end of the century, vital choices of ploitation on the environment) can be direction must be made which will alter all taken into account by economic and acc­ present pre-occupations. ounting criteria. Direct social intervention is necessary, with quite other than capital­ 3. The third aspect of the contradictions of ist and profit considerations coming to the capitalism dealt with by Marx in the Grund- fore. The contradiction can be resolved only risse is the very value-form itself - direct in a new social system motivated by human labour time at the point of production as a and social considerations. measure of value. This arises where Marx has his remarkably prophetic discussion on the 4. In contrast to previous forms of society, development of automation, (pp. 670-711). Marx continually refers to what he calls the tendencies of capitalism, where (4). universalising What are some of these implications? “Wealth does not appear as the aim of

30 AUSTRALIAN LEFT RE VIEW — MA RCH/APRI L 1974 production .... Thus the old view, in which “(capital) has the tendency to heighten the human being appears as the aim of prod­ the productive forces boundlessly, (but) it uction, regardless of his limited national, re­ also and equally makes one-sided, limits etc. ligious, political character, seems to be very the main force of production, the human lofty when contrasted to the modern world, being himself, (5) and has the tendency in where production appears as the aim of man­ general to restrict the forces of production)”. kind and wealth as the aim of production. (p. 422). In fact, however, when the limited bourgeois In speaking of the general development form is stripped away, what is wealth other of humanity, Marx identifies three main types than the universality of individual needs, of human relations in society: “Relations of capacities, pleasures, productive forces, etc. personal dependence (entirely spontaneous at created through universal exchange?The the outset) are the first social forms, in which full development of human mastery over human productive capacity develops only to the forces of nature, those of so-called a slight extent and at isolated points. Personal nature as well as of humanity’s own independence founded on objective dependence nature? The absolute working out of his is the second great form (i.e. capitalism -E.A.) creative potentialities, with no presupposit­ in which a system of general social metabolism, ion other than the previous historic develop­ of universal relations, of all-round needs and ment, which makes this totality of develop­ universal capacities is formed for the first time. ment, i.e. the development of all human Free individuality, based on the universal dev­ powers as the end in itself, not as measured elopment of individuals and on their subordin­ on a predetermined yardstick? Where he ation of their communal, social productivity does not reproduce himself in one specific­ as their social wealth, is the third stage. ” ity, but produces his totality? Strives not How does the above contradiction of cap­ to remain something he has become, but is italism express itself, to those it limits and opp­ in the absolute movement of becoming? In resses? There is a virtually unlimited variety bourgeois economics - and in the epoch of of ways in which this may happen, a number production to which it corresponds — this having been mentioned above. Low wages, un­ complete working-out of the human content employment, being an appendage of a machine, appears as a complete emptying-out, this being estranged from the intellectual potential­ universal objectification (of human powers ities of the labour process, being subjected to in the product - E.A.) as total alienation, despotism within the labour process, enrich­ and the tearing-down of all limited, one­ ing and strengthening the power of capital sided aims as sacrifice of the human end-in- through surplus value, exploitation of resourc­ itself to an entirely external end.” (pp. 487-8). es, pollution of the environment, the gap be­ tween observed possibility from existing prod­ uctive power and the reality, relations of dom­ “ Capital’s ceaseless striving towards the ination (sexist, racist, national), wars to en­ general form of wealth drives labour beyond force domination, etc. all derive from and/or the limits of its natural paltriness (evidenced serve capital in various ways. in earlier societies in restricted production, Which are the most important among consumption, outlook, etc. - E.A,), and thus these? I see no basis for holding that any creates the material elements for the devel­ one is necessarily the fundamental one. It opment of the rich individuality which is will differ at various times and among diff­ as all-sided in its production as in its consum erent sections of workers, as well as other- ption, and the full development of activity classes or groups. That party and that class itself, in which natural necessity in its direct which are striving to establish themselves as form has disappeared ; because a historically leaders of the struggle for the new society created need has taken the place of a natural must be involved in struggles around them one.” (p. 325). all, and see their relation to each other in the given circumstances. Without this, without establishing a general critique both in theory “ Hence the great civilising influences of and practice of the existing society, and a capital; its production of a stage of society general outline of how the contradictions in comparison to which all earlier ones app­ of that society are to be resolved in principle ear as mere local developments of humanity in the new one, it is idle to talk of a counter­ and as nature-idolatry...... capital drives hegemony, and therefore idle to think of beyond national barriers and prejudices as being able to challenge the power of the much as beyond nature worship, as well as capitalist state. all traditional, confined, complacent, en­ All struggles must serve to develop the crusted satisfactions of present needs, and awareness (class consciousness) of oppressed reproductions of old ways of life. It is des­ classes and groups as a pre-requisite to under­ tructive towards all of this, and constantly taking the struggle against capitalism and its revolutionises it, tearing down all the barr­ state, and initiating construction of the new iers which hem in the development of the society. forces of production, the expansion of needs, the all-sided development of production, “The recognition of the products as its and the exploitation and exchange of natur­ own and the judgment that its separatism al and mental forces.” (p. 410). from the conditions of its realisation is im­ proper - forcibly imposed -- is an enormous 2. Joan Robinson in ‘An Essay on Marxian advance in awareness .... and as much the Economics’ and ‘Economic Philosophy’ has knell of its doom as, with the slave’s aware­ challenged the proposition of the falling rate ness that he cannot be the property of of profit on theoretical and factual grounds. another, with the consciousness of himself Joseph Gillman indicates that there was a as a person, the existence of slavery..... decline till 1920, but in general not since ceases to be able to prevail as the basis of then. production.” (p. 463). 3. It is also true that the oil companies could possibly increase their profits despite paying a higher price to the producing count­ Thus, in the Grundrisse, we find an extreme­ ries, but the capitalists as a whole cannot but ly many-sided treatment of the contradictions have stresses put on their profitability. of capitalism, and of the meaning of the restriction of the development of the product­ 4. Martin Nicolaus, incidentally, correctly ive forces by that social formation. A restrict­ points out that this does not mean that Marx ed understanding of this central feature has considered that the industrial worker would restricted the thinking of many marxists, ex- disappear under capitalism, to be replaced pecially the traditional communist parties. by engineers and technicians, now to be con­ The Grundrisse reveals many important sidered “the vanguard”. There are counter­ aspects of Marx’s thought which were buried tendencies, and the process is not quick or before, and also shows the all-sidedness of his smooth. But increasing mechanisation and thought, which should be emulated by his automation a tendency, and its implicat­ followers in today’s very different conditions. is ions deserve as much attention as, say, the tendency of the rate of profit to fall

5. In “Philosophy for an Exploding World” I said that, in Marx’s works, to my knowledge, there was little evidence that he included the NOTES. producers in the concept ‘productive forces’. The Grundrisse provides ample evidence that 1. I hope in a later article to discuss the gener­ he did. I hope to discuss this point furthe: al question of contradictions. in a later article.

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