How then do we solve the whole weighty question of the higher wages of compound labor? In a society of private producers, private individuals or their families have to bear the cost of creating intellectual workers. An intellectual slave always commanded a better price, an intellectual wage worker gets higher wages. In an organized socialist society, society bears the cost and to it therefore belong the fruits, the greater value produced by intellectual labor. The laborer himself has no further claim. Whence it follows that there are many difficulties connected with the beloved claim of the worker for the full product of his toil.
VII. Capital and Surplus Value.
("Marx does not have the usual economic idea of capital that it is means of production already produced, but he seeks to endow it with a special dialectic history in the metamorphosis of a historical idea. Capital is expressed in gold, it creates an historical period which has its beginning in the sixteenth century and the establishment of a world-market. Any keen economic analysis is impossible with such a notion. Such barren conceptions which are half historical and half logical destroys the possibility of any proper discrimination with respect to the matter." These remarks of Duehring are answered as follows by Engels:)
According to Marx, then, capital manifested itself as gold at the beginning of the sixteenth century. It is just as if anybody were to say that specie had expressed itself as cattle for three thousand years, because formerly cattle had performed the gold functions along with others. Only Herr Duehring could be guilty of such a crude and distorted expression. Marx in his analysis of the economic forms in which the process of the circulation of commodities takes places simply declares gold to be the last form. "This last product of the circulation of commodities is the form in which capital first appears. Historically capital comes with the possession of property in the form of money, as hoards of money, merchant-capital, and usury-capital.... This history is going on every day before our eyes. New capital comes on the scene, that is the market,—the market for commodities, the labor market or the money market, simply as money, money which is transformed into capital by a definite process." Again Marx states the fact. It is useless for you to struggle against it, Herr Duehring, Capital must express itself in gold.
Marx further examines the process by which money is transformed into capital and discovers that the form in which money circulates as capital is the inversion of the form in which it circulates as the universal equivalent. The individual owner of commodities sells to buy, he sells what he does not need, and buys with the money thus obtained what he does need. The budding capitalist buys on the contrary what he does not want himself, he buys to sell, and to sell for a higher money value than he put into the business, he makes a money profit, and this profit Marx calls surplus value.
What is the origin of this surplus value? Either the buyer buys goods below their value or the seller sells them above their value. In both cases gain and loss would balance one another, since every buyer is also a seller. It can also not arise from extortion, for extortion might enrich one at the expense of the other but it could not increase the total sum of money neither could it increase the amount of commodities in circulation. "The entire capitalist class of a country cannot overreach itself."
Now, we find that the totality of the capitalist class in every country grows richer before our very eyes, by the process of selling dearer than it bought, by appropriating surplus value. So we are just at the beginning of the discussion. Where does this surplus value come from? This question has to be answered on purely economic grounds to the exclusion of all cheating, and all invasion of force. How is it possible to keep selling dearer than one buys under the assumption that equal values are always exchanged for equal values?
The solution of this problem is the crowning glory of the work of Marx. He sheds clear daylight in economic places where the earlier socialists no less than the bourgeois economists have groped in utter darkness. From his work dates the origin of scientific socialism.
The solution is as follows. The power of increase in money which is transformed into capital cannot proceed from the money neither does it depend upon trade, since the money only realizes the price of the commodities and this price is, since we hold that only equal values are exchanged, no different from its value. On the same grounds the power of increase cannot come from the exchange of commodities. The change therefore depends upon the commodities which are exchanged, but not upon their value, since they are bought and sold at their value. It arises from their consumption-value as such; that is the change must arise out of the consumption of commodities. "In order for a commodity to derive value from consumption our possessor of money must be fortunate enough to discover a commodity whose use-value has the peculiar property of being a source of value, whose consumption would imply the expenditure of labor and thus be value-producing. And the possessor of money finds such a specific commodity on the market in the shape of labor-power." If, as we have seen, labor has no value this is by no means the case with labor-force. This has a value, as it is a commodity, and, as a matter of fact, it is a commodity to-day and this value is fixed "like that of every other commodity by the amount of labor time necessary for the production and reproduction of this specific commodity." It is fixed by the labor time which is necessary for the procuring of the means of livelihood required to maintain the laborer in a condition to continue laboring and reproduce his kind. Let us suppose that these means of livelihood represent, taking one day with another, six hours labor-time a day. Our budding capitalist who buys labor force for his business, that is hires a laborer, pays this laborer the full daily value of his labor force, if he pays him a sum of money which represents six hours of labor. If the laborer has only expended six hours in the service of the capitalist he has got the full return of his expenditure, the day's value of his labor-force has been paid. But money could not be transformed into capital in this fashion, it would have produced no surplus value. The buyer of labor-power has quite another view of the nature of his business. Since only six hours' work is necessary to maintain the laborer for twenty-four hours, it does not follow that the laborer cannot work twelve hours out of the twenty-four. The value of labor force and its realization in the labor-process are two different magnitudes. The owner of money pays out a day's value of labor-force but there belongs to him its use for the day, the whole day's labor. That the value which it produces in the course of a day is double its own value for the day is fortunate for the buyer but according to the laws of exchange no injustice to the seller. The laborer then costs the owner of money according to our calculation the value product of six hours' labor, but he gives him daily the value product of twelve hours' labor. The difference to the credit of the owner of the money is six hours' unpaid extra labor, an unpaid for surplus product, in which the labor of six hours is incorporated. The trick is done. Surplus value is produced, money is transformed into capital.
While Marx, in this way, proved how surplus value exists and the only possible way in which it can exist, under the laws which regulate the exchange of commodities he also exposed the present capitalistic methods of production and the methods of appropriation resting upon them and unveiled the secret upon which the whole arrangement of the society of to-day depends.