Repository | Book | Chapter
Organic composition of capital
pp. 304-309
Abstract
The distinction between labour value transferred and labour value added is crucial to Marx's theory of value. For the capitalist system as a whole, the abstract labour-time previously materialized in machinery and materials (c) merely reappears in the total product. The capital expended for the purchase of c is therefore constant-in-value. On the other hand, whereas the capital expended for the engagement of workers is determined by the labour value of their means of consumption (class="EmphasisTypeItalic ">v), their actual employment results in a quantity of abstract labour-time (l) which is generally different from v. Thus capital expended for the purchase of labour-power is intrinsically variable-in-value. Indeed, the secret of capitalist production is contained precisely in this variability, since surplus value (s = 1 − v) only exists to the extent that l is greater than v. It follows from this that for any given total capital expended (c + v), its composition between c and v is the utmost importance, because only v expands total capital value from c + v to c + l = c + v + s (Marx, 1867, pp. 421, 571).
Publication details
Published in:
Eatwell John, Milgate Murray, Newman Peter (1990) Marxian economics. Basingstoke, Palgrave Macmillan.
Pages: 304-309
DOI: 10.1007/978-1-349-20572-1_45
Full citation:
Shaikh Anwar (1990) „Organic composition of capital“, In: J. Eatwell, M. Milgate & P. Newman (eds.), Marxian economics, Basingstoke, Palgrave Macmillan, 304–309.