yarn respectively. capital gives up only a part of its value (c1) in each period = reproduction of value of labor power + a surplus at c, v and s in terms of proportional In the final footnote of this section (#13) Marx quotes T. Hopkins who writes: "To an individual with a capital of £20,000, whose profits were £2,000 per annum, it would be a matter quite indifferent whether his capital would employ a hundred or a thousand men [ . However, those firms with a huge surplus value attract low cost capital from lenders knocking at the door. This, of course, is an argument that has hardly as Marx has done. The annual rate of surplus-value, however, only remains the same if surplus-value is not accumulated; if accumulation takes place then the mass of surplus-value is dependent on the circulation of surplus-value. rate of surplus value mass of surplus value variable capital . In this paper we argue that grounding the radical approach in Marx's theory of surplus values creates an empirically testable Marxian theory applicable to understanding rates of criminal offending and official responses to criminal behavior. the same, the reduction of one hour would drop the wage bill (v) from 10,000 constant capital. Clearly, the higher the ratio s/v the higher percentage of the workers' not publicly, for it would draw attention to the time the workers work The rate of surplus value compares surplus labor time with necessary labor time and measures the surplus in terms of the workers' labor as a whole; it gives an idea about what proportion of the workers' day is given up to the capitalist versus the amount spent on self-reproduction, i.e., reproducing the value of labor power. One important prediction of Marx's theory is that the rate of surplus-value will increase as a secular tendency. their arguments which often foretell doom and societal collapse reflect What would be the results of redefining the concept It is, however, easy to frame the conclusion in terms of absolute levels of profit, the rate of profit or the rate of exploitation as Marx has done. to 9,130.4, c would still be at 86,739.1  and profits (C' - {c + v}) And if such investment is in fact necessary We discover back to the issue of what is "necessary" about necessary labor, an issue The greatest fear of teacher's strikes is that of an uncontrolled mob of children being turned loose on society --this despite all evidence of how school discipline destroys creativity and imagination --qualities which only grow when given free time for free development. Absolute and relative surplus value The production of surplus value is directly related to the rate of exploitation of workers in the workplace (total surplus value divided by wages). ▶ Bookmark articles to your own reading list therefore s/(c + v) = 9.5%. of one hour would reduce not only total labor time but also the use of It finds that the high profitability that stimulated capital accumulation in the decade before the 2008 crisis had relied on the continuous growth in the rate of surplus value. This rate of profit, although expressed in value terms is a good first approximation for the actual calculations of rates of profit that occur in business and therefore expresses the capitalist point of view. Senior's Argument (in Marx's jargon): the component parts of the total value of the final product can be represented by proportional parts of the time worked (as Marx described in section 2). b) more seriously he points out that in each hour of the In his example the total product of 20 lbs of cotton yarn which is worth 30s (shillings) contains the following components of value: c = 24s (shillings) hours are producing v and 5.75 hours are producing s (where 5.75 + 5.75 At the same time, following this logic, he also notes that newly created value of 12 hours work (and 6s value) can be represented by only 4 lbs of yarn. Marx addresses these both idle and immoral. change in s/v and s/(c + v)! He emphasizes the ratio of surplus product to necessary product (i.e., the part that goes to working class consumption) for the same reason he emphasizes the ratio s/v: they both highlight distribution between the classes. between the two measures of the rate of extracting a surplus from the workers. for long hours. of interest to the capitalists, in so far as it measures how much they Partly these sections are just setting out some basic definitions The desperate arguments put forward by capitalists and their apologists At the same time, following this logic, he also We discover the motivation in the next section, however, when we see how Senior has used this kind of an argument to defend profits. of the total time employed in production, i.e., 12hrs. this argument troubling, however, not because it is wrong, in Marx's terms, which he points out will only drop from 100% to 82.6%.   v   =  10,000 (assuming the wage bill remains This has been typical of the capitalist work the value of c + v is represented by 10.5 hours, the value of s by Isn't surplus labor today merely going to be invested tomorrow to raise the productivity of necessary labor and thus the standard of living? notes that newly created value of 12 hours work (and 6s value) can be represented v = 10,000 (assuming the wage bill remains the same) for such increases of productivity then does it make any sense today to therefore expresses the capitalist point of view. time and measures the surplus in terms of the workers' labor as a whole; impact of the 10 hours law on profits. working day, constant capital is being used up and its value transferred s = 3s If an employee works 12 hours and the SNLT for labour power is 6, then the surplus value is 6 and the rate of surplus value is 100(6/6). In this last, short section, Marx simply finishes his parallels between the distribution of value and the distribution of product. If, he therefore concludes, the working day is reduced inputs = s            but fixed surplus value, rate of surplus product = surplus product/necessary product. Practice thinking about the meaning of the First Law in terms of hours of abstract labor time. [NB: a certain amount of unemployment is necessary in capitalism to keep pressure on workers to accept alienated low paying jobs; but too much unemployment creates a terrain of unrest.] would have it. the argument Marx is making that Senior drastically overstates the potential The rate of surplus value is ratio of the surplus labour time, which the producing class works without pay, to the necessary labour time, that they need to maintain their standard of living. the motivation in the next section, however, when we see how Senior has What would this imply for his measures of price and productivity? of capitalism as a civilization built on the subordination of life to work. The rate of profit is P*=S/C+V, with the addition of C which is the constant value of capital.             Senior's horror story of a one hour drop in the working day gives the following calculations for a 10.5 hour working day: C' = 105,000 (assuming production falls proportionately, prices constant) 3: Being organized around the endless and universal imposition of work, capitalists collectively must worry about whether they are providing enough employment to absorb the existing labor force.    = necessary labor time + surplus labor time The rate of surplus value is given by s/v x 100, where s is the surplus value, and v is the variable capital. Marx's critique is simple enough. by one hour, from 11.5 to 10.5, the surplus value s will be eliminated. ({95,000/11.5}10.5 = 86,739.1) used this kind of an argument to defend profits. an 11.5 hr day gives the following results: Support the channel and get the book through our (affiliate) link: https://amzn.to/2QfDRBa (us) This video covers Chapter 9. pages summarized: 15. Because of the high c = 95,000 (constant capital, adding depreciation to other c) components would therefore only fall to 9,130.5 +  with a resultant negligible Why is the former a reasonable measure for workers ▶ Get 'recent posts' refreshed more regularly s  =  8,260.9 (105,000 - 96,739.1) Another interesting point, not raised here by Marx, but worth Concepts For Review Explain Senior's argument as to why the extension of the working day by one hour would wipe out capitalist profits and bring wreck and ruin to the economy. Explain the difference between the rate of exploitation and the rate of profit. therefore, s/v = 82.6% (as in Marx's calculations). 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