The Basics of Marxism #1: Karl Marx and Capitalism

THE BASICS OF MARXISM #1:KARL MARXAND CAPITALISM WRITTEN AND DESIGNED BY JAMES BELL @GLUMBIRD MEDIUM.COM/@JRBML.PUBLIC

WELCOME\"The Basics of Marxism\" is a series of pamphletsintended as introductory study guides tofundamental aspects of Marxist theory. Each volumeis intended to highlight the most fundamentalconceptions of Marxist theory in relation to a giventopic. To be clear: these pamphlets are intended toact as aids, not replacements, to other texts.This edition focuses on the most fundamentalconceptions of Marx's critique of political economyand analysis of capitalism: capital, the commodity, exploitation, money, profit, the irrationality ofcapitalist production and class under capitalism.Recommended texts for building on thisunderstanding have been posted on my blog. I'mhappy to answer questions if you have any - justdrop me a line on Twitter!This and the other materials I produce are entirelyself-funded. If you enjoy this work and would like tosupport it, you can donate at paypal.me/jrbml. Anydonation, no matter how small, is greatlyappreciated.MEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

PART ICAPITAL, COMMODITIES AND VALUEMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

CAPITAL AND LABOUR WHEN WE TALK ABOUT CAPITAL, WE'RE REFERRING TO THREE THINGS. LABOUR (V) Labour is the worker's potential to work. It is a commodity, purchased by the capitalist. This is paid for in the form of wages. Labour-power is the worker's work when it is realised in production. LABOUR IS ALSO KNOWN AS VARIABLE CAPITAL CONSTANT CAPITAL (C)Constant capital is raw materials, machinery etc.It refers to things needed to make commodities. Constant capital is owned by the capitalist. SURPLUS VALUE (S) Surplus value appears as profit to the capitalist. This requires that a product be sold. Surplus is owned by the capitalist. It can be used privately (consumption) or invested. CAPITAL IS COMPOSED OF 3 ELEMENTS V-C-SMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

THE TWO  CILBUP.LMBRJ@/MOC.MUIDEMFACTORS OF A COMMODITY (PART I)THERE ARE 2WAYS TO EXPLAINA COMMODITYUSE VALUE EXCHANGE VALUETHIS IS A TOOTHBRUSH DRIBMULG@I CAN USE IT BRUSH MY TEETHTHIS IS WHAT WE MEAN BY A USE VALUE ANY OBJECT WITH A USE  HAS A USE VALUE 

THE TWO FACTORS OF A COMMODITY (PART II)EXCHANGE VALUE DESCRIBES HOW MUCH OF A COMMODITY CAN BE TRADED FOR HOWEVER MUCH OF ANOTHER COMMODITYFOR EXAMPLE IF MY TOOTH BRUSH WAS WORTH A COAT THAT WOULD BE ANEXCHANGE VALUEMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

MEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD HOW DO  WE KNOW  WHAT AN EXCHANGE VALUEIS?IF TWO OBJECTS CAN BE TRADEDTHERE MUST BE SOMETHING IN COMMON BETWEEN THEMBUT A COAT AND A TOOTHBRUSHDON'T DO ANYTHING SIMILARTHEY ARE DIFFERENTLY USEFULTHE SAME CAN BE SAID OF ALL COMMODITIES

MEDIUM.COM/@JRBML.PUBLIC @GLUMBIRDLABOURIS THE SOURCE OF ALL VALUE THE ONLY OTHER THING ALL COMMODITIES HAVE IN COMMON IS THAT THEY ARE PROLADBUOCUTSRO FEXCHANGE VALUE IS DETERMINED BY THE AMOUNT OF SOCIALLY NECESSARY LABOUR TIME IT TAKES TO PRODUCE A COMMODITY

LET US NOW CONSIDER THE RESIDUE OF EACH OF THESE PRODUCTS; IT CONSISTS OF THE SAME UNSUBSTANTIAL REALITY IN EACH, A MERE CONGELATION OF HOMOGENEOUS HUMAN LABOUR, OF LABOUR POWER EXPENDEDWITHOUT REGARD TO THE MODE OF ITS EXPENDITURE. ALL THAT THESE THINGS NOW TELL US IS, THATHUMAN LABOUR POWER HAS BEEN EXPENDED IN THEIR PRODUCTION,THAT HUMAN LABOUR IS EMBODIED IN THEM. WHEN LOOKED AT AS CRYSTALS OF THIS SOCIALSUBSTANCE, COMMON TO THEM ALL, THEY ARE – VALUES.KARL MARX, CAPITAL, VOLUME IMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

MEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD WHERE DOES SURPLUS VALUE  COME FROM? AN EXAMINATIONOF THE WORKING DAY8A WORKER WORKS HOURS A DAY THEY ARE PAID £5 PER HOUR OR £40 PER DAYBUTTHE GOODS THEY PRODUCE ARE WORTH£80A DAY 

AN EXAMINATIONOF THE WORKING DAY THE CAPITALIST £60INVESTED  ON WAGES AND MACHINERY,  RAW MATERIALS ETC.  THE GOODS PRODUCED BY THE WORKER ARE  SOLD AT THEIR VALUE  MAKING THE CAPITALIST  £20A PROFIT OF  IN OTHER WORDS: MORE VALUE HAS BEEN CREATED BY THE WORKER'S LABOUR-POWERMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

AN EXAMINATION DRIBMULG@ OF THE WORKING DAYCILBUP.LMBRJ@/MOC.MUIDEM THIS MEANS THAT PART OF THE  WORKING DAY IS  PAID  AND PART ISUNPAID  UNPAID LABOUR (SURPLUS VALUE) (CONSTANT CAPITAL COSTS) PAID LABOUR  (VARIABLE CAPITAL) SURPLUS VALUE IS THE VALUE CREATED BYUNPAID LABOUR, LESS CONSTANT CAPITAL COSTS

EXPLOITATIONTHAT THE CAPITALIST EXTRACTS SURPLUS VALUE FROM THEIR EMPLOYEES IS WHAT MARXISTS CALL EXPLOITATION THE ECONOMIC BASIS OF CAPITALISM IS EXPLOITATIONYOU MIGHT THINK THAT THIS IS JUST A CHEAT THAT THE CAPITALISTS ARE SETTING WAGESBELOW THEIR VALUETHIS IS INCORRECT THE VALUE OF A COMMODITY IS SET BY WHAT IS NEEDED TO PRODUCE IT THE VALUE OF LABOUR IS SET BY WHAT IS NEEDED TO GETTHE WORKER BACK TO WORK THE NEXT DAYMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

MEDIUM.COM/@JRBML.PUBLIC @GLUMBIRDDEADLABOUR MARX CALLS THE LABOUR EMODIED IN COMMODITIES DEAD LABOUR THIS MEANS THAT LABOUR-POWERHAS BEEN EXPENDED IT NO LONGER EXISTS AS LABOUR-POWERONLY LABOUR-POWER CANCREATE NEW VALUE CONSTANT CAPITAL IS DEAD LABOUR

MEDIUM.COM/@JRBML.PUBLIC @GLUMBIRDPART IICAPITALISM AND CLASS

CAPITALISMHASN'T BEEN AROUND FOREVER FEUDALISM CAME BEFORE IT AND OTHER SOCIAL SYSTEMS BEFORE THAT IT IS AN HISTORICAL PERIOD IT WILL ENDMARX SAYS THE HISTORY OF ALL HITHERTO EXISTING SOCIETY IS THE HISTORY OF CLASS STRUGGLE THE COMMUNIST MANIFESTOMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

MEDIUM.COM/@JRBML.PUBLIC @GLUMBIRDBOURGEOIS AND PROLETARIANS THE  BOURGEOISIE IS THE CAPITALIST CLASS THEY ARE THE RULING CLASS UNDER CAPITALISM THE BOURGEOISIE OWN THE MEANS OF PRODUCTION (LAND, MACHINERY, RAW MATERIALS, MONEY) THE GOAL OF THE BOURGEOISIE IS TO GET HIGHER AND HIGHER PROFITS THE  PROLETARIAT IS THE WORKING CLASSTHEY OWN NOTHING BUT THEIR LABOUR POWER

PART IIICAPITALISM IS IRRATIONALMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

CAPITALIST PRODUCTION ISIRRATIONALWHILST ALL COMMODITESARE USEFUL THEIR USE VALUEDOES NOT ENTER INTOPRODUCTIONMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

THIS IS BECAUSE EXCHANGE VALUEIS NOT BASED ON USECAPITALIST PRODUCTIONIS FORPROFITMY TOOTHBRUSH IS NOTA TOOTHBRUSH WHENIT ENTERS THE MARKETIT BECOMES ALIENATEDFROM ITSELF AND TRANSFORMS INTOA VALUEBECAUSE OF THIS CAPITALISM CAN'TGUARANTEE IT WILL MAKE SUCHCOMMODITIES THAT WILL SATISFY HUMAN NEEDMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

MEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD AND PRODUCTION FORPROFIT IS SPECULATIONWHEN A CAPITALIST INVESTS INTHE PRODUCTIONOF A COMMODITY THEY DO NOT KNOWIF IT WILL SELL

PART IVMONEY AND PROFITMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

MONEY IS ACOMMODITY IT SYMOBLISESALL OTHERCOMMODITIESMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

PROFIT IS NOT IDENTICAL TOSURPLUS VALUESURPLUS VALUE IS CREATED IN PRODUCTION PROFIT IS REALISED IN CIRCULATION (WHEN THE CAPITALIST SELLS A COMMODITY)PROFIT IS THE REALISATIONOF SURPLUS VALUEMEDIUM.COM/@JRBML.PUBLIC @GLUMBIRD

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