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This question <585|592> overall <589|591> Gilligan: <547-2|60>.

Term Paper 299: Essay about Chapter Twenty-Five

[590] Gilligan, Skippy, and Kia: term paper We have chosen to write a section by section description of chapter 25.

Section 1: Capital is just like the commodity that we have studied so intensely. It is comprised of two components, constant capital or the value of the means of production, and variable capital which takes into account labor power and its total wages paid to those laborers. Labor power has a partner known as subsistence which is a part of capital and it helps in defining labor power.

When capital grows or increases it is dealing with the variable component, which stated above tells us that it directly affects labor power and most importantly the subsistence factor. So as capital grows the same amount of surplus value gained must be “retransformed into variable capital.” “The demand for labor, and the fund for subsistence of workers, both clearly increase in the same proportion as the capital, and with the same rapidity.” 763:1/o

Capitalist need the laborers as well as laborers need the capitalist in order to survive. John Bellers makes a great point when he says, “For if one had a hundred thousand acresof land and as many pounds in money, and as many cattle, without a laborer, what would the rich man be but a laborer?” This statement is vital and an important quote even today. If you take Bill Gates for insatnce and take all his laborers away from him and leave him with money, microsoft wouldn't be anything, because he is so dependant upon the workers. People who labor for another are a very important key to the growing fortunes of the capitalist himself. Sir F.M. Eden says, “persons of independent fortunes .. owe their superoir advantages by no means to any superior abilities of their own, but almost entirely... to the industry of others.” We laborers are dependent upon them in that we work for our subsistence, we ensalve ourselves because we need to live.

As wages rise we think we're better off but do new clothes, more food,and increased joy really define themselves as such. No. they don't, its the key factor in the exploitation process, and as our surplus rises we are eploited to an even greater extent. The consumer doesn't pay a price that reflects the amount of labor that was put into an item, its called unpaid labor. This exploitation will always be because if their wasn't such a thing the domain of capital would be disturbed. We don;t recognise the exploitation process and usually feel some self valor from the wages that we receive.

“The relation between capital, accumulation and the rate of wages is nothing other than the relation between unpaid labor which has been transformed into capital and the additional paid labor necessary to set in motion this additional capittal.”

section 2

Marx reminds us that capital is not constant as we thought , but rather variable. The laborers productivity is increased due to this variablity of captital. So, as thought, the production of the laborers increases right along with the rise in organic capital. “With the increased productivity of labor, the mass of the means of production consumed by labor increases, but their value in comparison with their masses diminishes.” (774) This has an inverse effect on the value, it goes down since the productivity has risen.

The Lager Companies, for example are driving the little guys right out of business because their able to purchase more and kep more on hand than the little co.. through this method they are able to make drastic price reductions where the smaller firm doesn't have that type of power or even the same opportunity. This promotes centralization from the larger companies, which maximizes the effeciency rates of labor. Company takeovers, buy outs, and liquidation of these smaller firms is what is known as centralization.

section 3 In section 3 Marx reminds that accumulation of capital comes to life through a continuing increase of its constant component at the expense of its variable component. The production mode of capitalists, labor, does not keep pace with the change in society and its wealth of accumulation on hand, capital changes form from constant to variable. Also the demand of labor does not keep up with proportions to accumulation because, the variable capital that falls compares to the growth. At an advantage, not employing additional workers, capitalist enjoy the surplus population.

As technology increases the less workers are needed. This is the current situation that is seen today in many manufacturing industries. Reason being that the machines employed don't have to be paid or they aren't affected by the subsistent component. Capitalist make grand profits from innovations such as these. The more money firm makes the more likely it will increase its production i.e. franchising.

Workers wages will increase as the firms output increases. However, at the end , the higher wges become vulnerable. Because the surpus population that brings in workers allows capitalist to set wages. The more supply of labor there is the lower the wages will drop. With more available workers the chance of losing your job is greater, because that prson might be wiling to accept a smaller wage than you. Its all about maximization.

section 4

The 4 parts to the reserve labor army are the: floating, Latent, Stagnant, and the Paupers.

The floating surplus consists of the population of workrs that cause diminishining returns for the co. As stated on page 798 “once the workers reach the age of maturity, only a few number of them continue to find employment in the same branches of industry.” The unemplouyed that are left over make up the floating surplus.

The Latent surplus happens when the capitalists take over the agricultural aspects forcing the rural working population to fall as the capital employed by agriculture rises. This is done without compensationas done with nonagricultural industry. The people go into the industry looking for opportunities to complete the transformation. This also causes the wages of the agriculture worker to fall to a minimum being on the edge of pauperism.

The stagnant population consists of the left over population of the Latent workers and the Floating forces. These people work maximum hours for minimal pay. These are the people that capital easily exploits. “Its extent grows in proportion as, with the growth in the extent and the energy of accumulation, the creation of a surplus population also advances.”(796)

The population of the Paupers that are able to work “increases with the crisis of trade and diminishes with every revival.”

As stated by Marx these Paupers are good candidates for the reserves.

The third is the excess weight or the fat of the population. They have passed their time of being productive and are of little use to society.

Hans: There are some misunderstandings. Is the following a joke?

Labor power has a partner known as subsistence which is a part of capital and it helps in defining labor power.

Also your concept of unpaid labor is not at all what Marx was talking about:

The consumer doesn't pay a price that reflects the amount of labor that was put into an item, its called unpaid labor.

Also the following sentence does not make sense and is incongruous with the rest of what you are writing:

The production mode of capitalists, labor, does not keep pace with the change in society and its wealth of accumulation on hand, capital changes form from constant to variable.

Finally, regarding your last sentence:

They have passed their time of being productive and are of little use to society.

You are perhaps not aware of it, but usefulness to society is a bad standard to judge people by. You should rather ask whether society is useful to people.