On the other hand, if this production and reserve fund actually exists in the hands of the capitalist class, if it has really come into existence through the piling up of profits, (we will leave rent out of the question for the present); it necessarily comes from the accumulated profits of the capitalist class taken from the working class over and above the sums paid by the capitalist class to the working class in the form of wages. Value therefore does not depend upon wages, but upon amount of labor. The working class renders to the capitalist class a greater amount of value than it receives in wages and thus the profit of capital as of all other forms of the appropriation of unpaid for products of labor is to be explained on the simple ground of the surplus value discovered by Marx.

VI. Simple and Compound Labor.

(The argument of Duehring against which Engels here directs his efforts may be best summed up in Duehring's concluding words "Marx in his utterances on value cannot escape the lurking ghost of highly skilled labor. The prevalent notion of the intellectual classes has been a hindrance to him in this matter, for according to this idea it is an enormity to reckon the labor time of a barrow pusher and an architect as economic equivalents.")

Engels thereupon says "the passage in the works of Marx which caused this outbreak on the part of Duehring is very short." Marx is examining the question as to the basis of the value of commodities and answers it by the statement that it is the amount of human labor contained in them. "This" he goes on "is the expression of that simple labor force which belongs to the average human being without any special development. Skilled labor is a power or rather a multiple of simple labor, so that a small amount of skilled labor is equivalent to a larger amount of unskilled labor. Practice shows that this reduction to the terms of unskilled labor takes place. A commodity may be the product of skilled labor, its value may be equivalent to a product of unskilled labor skilled labor. The proportion in which different forms of labor are reduced to their general standard in unskilled labor is established by a social process going on behind the backs of the producers, and appears to them merely customary."

Here Marx is only dealing with the value of commodities, that is of objects produced and exchanged by private producers in a society consisting of private producers producing for their own profit. He is therefore not concerned here with "absolute value" whatever that may be but only with the value which is realised in a given form of society. This value under the given social conditions is shaped and measured by the human labor incorporated in the commodities and this human labor shows itself as the expression of simple human energy. But every piece of work is not merely an expression of simple labor force. Very many labor products require the expenditure of more or less time, money, trouble, and acquired skill or knowledge. Do these kinds of compound labor show at the same period of time the same commodity values as simple labor, are they the expression of merely simple labor force? Evidently not. The product of an hour of compound labor is a commodity of higher, double or three times the value of a product of an hour of simple labor. The value of the product of compound labor can in this comparison be expressed through the measure of simple labor; and this reduction of compound labor is carried on by means of a social progress behind the back of the producer, by means of which can here be established according to the theory of value but not explained.

The thing which Marx states here is a simple fact which happens every day before our eyes in the present capitalistic society.

(After some invective and satire hurled at Duehring Engels proceeds:)

Let us examine with regard to equality of value a little more closely. All labor time is of equal value, that of the barrow pusher and that of the architect. Therefore labor time and consequently labor itself has a value. But labor is the creator of all values. It is the only thing which gives the original products of nature a value in the economic sense. Value in itself is nothing but the expression in a given object of necessary, social, human labor. One might just as well speak of and fix a value to labor as speak of the value of value, of the weight, not of a specific body, but of gravity itself. Herr Duehring calls people like Owen, St. Simon and Fourier, social alchemists. When he invents a value for labor time, that is for labor, he shows that he is far below these same alchemists.

For Socialism, which will emancipate human labor force from its place as a commodity, the understanding that labor has no value and can have none is a matter of the greatest importance. With an understanding of it, all attempts made by Herr Duehring by means of his crude worker-socialism (Arbeitersozialismus) to regulate the division of the means of existence, as a kind of higher wages, fall to the ground. From it there follows the broader view, since it is controlled by purely economic motives, that distribution regulates itself in the interests of production, and production is advanced in the greatest degree by a method of distribution which permits all the social departments to develop, maintain, and express their capacities to the fullest possible extent. To the ideas of the intellectuals which have come into Herr Duehring's possession, it must always seem to be an enormity that it will abolish barrow pushing and architecture simultaneously as professions, and that the man who has given half an hour to architecture will also push the cart a little until his work as architect is again in demand. It would be a pretty sort of socialism which perpetuated the business of barrow-pushing.

If the equality of value of labor time has the significance that workers produce equal products in equal periods of time it is evidently false, unless an average is first taken. Of two workmen at the same branch of industry the value of the product of their labor time will differ according to the intensity of labor and their respective ability. No scheme of economic equality, at least on our planet, can remedy this unfortunate state of affairs. What then is left of the equality of all and every sort of labor? Nothing but high sounding phrases which have no economic value, nothing but the evident inability of Herr Duehring to distinguish between the fixing of value by labor and the fixing of value by the wages of labor, only the ukase, which is the foundation of the new social economy, that wages shall be equal for equal amounts of labor time. Really the old French communists and Weitling had much better grounds for their equality of wages theories.