Question

According to the economists themselves, it is neither the actual extent of social wealth nor the magnitude of the capital already acquired tliat leads to a rise of wages, but only the constant growth of accull!ulation and the degree of rapidity of that growth (Adam Smith, Book I, Chapter 8). So far, we have considered only one special phase of this process, that in which the increase of capital occurs while the technical composition of capital remains con· stant. But the process goes beyond this phase. Given the general basis of the capitalist system, a point is reached in the course of accumulation at which the development of the productivity of social labour becomes the most powerful lever of accumulation. 'The same cause,' says Adam Smith, 'which raises the wages of labour, the increase of stock, tends to increase its productive powers, and to make a smaller quantity of labour produce a greater quantity of work. A part from natural conditions, such as the fertility of the· soil, etc., and a part from the skill of independent and isolated producers (shown rather qualitatively in the high standard of their products than quantitatively in their mass), the level of the social produc- tivity of labour is expressed in the relative extent of the means of production that one worker, during a given time, with the same degree of intensity of labour-power, turns into products. The mass of means of production with which he functions in this way in- creases with the productivity of his labour. But those means of production play a double role. The increase of some is a conse- quence, that of the others is a condition, of the increasing produc- tivity of labour. For example, the consequence of the division of labour (under manufacture) and the application of machinery is that more raw material is worked up in the same time, and there- fore a greater mass of raw material and auxiliary substances enters into the labour process. That is the consequence of the increasing productivity of labour. On the other hand, the mass of machinery, beasts of burden, mineral manures, drain-pipes, etc. is a condition of the increasing productivity of labour. This is also true of the means of production concentrated in buildings, furnaces, means of transport, etc. But whether condition or consequence, the growirig extent of the means of production, as compared with the labour- power incorporated into them,· is an expression of the growing productivity oflabour. The increase of the latter appears, therefore, in the diminution of the mass of labour in proportion to the mass of means of production moved by it, or in the diminution of the subjective factor of the labour process as compared with the objective factor.

Summarize the reading in a paragraph and note any key concepts within it.

Answer 1

==> Wages rise because of constant growth of accumulation and the degree of its rapidity. In capitalism development of productivity of social labor becomes a powerful tool for capital accumulation. This increase raises wages, increases stock and improves productivity. Apart from natural conditions, level of social productivity of labour is the relative extent of the means of production in which a worker during a given time and with the same degree of intensity of labour-power, turns into products. The output of the worker increases with the labour productivity. Increase in labour productivity causes greater raw material to be worked at the same time, increasing output. But inputs such as tools is required to increase labour productivity. The increase in use of tools decreases the labourers in proportion to the output produced by them.

Wages rise because of constant growth of accumulation and the degree of its rapidity. In capitalism development of productivity of social labor becomes a powerful tool for capital accumulation. This increase raises wages, increases stock and improves productivity. Apart from natural conditions, level of social productivity of labour is the relative extent of the means of production in which a worker during a given time and with the same degree of intensity of labour-power, turns into products. The output of the worker increases with the labour productivity. Increase in labour productivity causes greater raw material to be worked at the same time, increasing output. But inputs such as tools is required to increase labour productivity. The increase in use of tools decreases the labourers in proportion to the output produced by them.

Key concepts:

Rise in wages in caused by growth and rapidity of capital accumulation.

Growth in accumulation occurs due to increase in social productivity.

Social productivity can occur in two ways: either there is an increase in efficiency in labour work. For example division of labour causes workers to be more efficient and skilled.

Secondly it could occur due to increase in technological progress. Which causes the same number of labourers to produce more output in the same given time and efficiency as before.

Therefore due technological increase, it appears that the labour employed in the production have reduced if compared to the amount produced by them. For example if earlier 100 workers could produce 100 units of output, due to technological change, they could now produce 200 units. Therefore it appears as if fewer labourers are employed (compared to earlier situation where 200 workers would be needed to produce 200 units of output).

Rise in wages in caused by growth and rapidity of capital accumulation.

Growth in accumulation occurs due to increase in social productivity.

Social productivity can occur in two ways: either there is an increase in efficiency in labour work. For example division of labour causes workers to be more efficient and skilled.

Secondly it could occur due to increase in technological progress. Which causes the same number of labourers to produce more output in the same given time and efficiency as before.

Therefore due technological increase, it appears that the labour employed in the production have reduced if compared to the amount produced by them. For example if earlier 100 workers could produce 100 units of output, due to technological change, they could now produce 200 units. Therefore it appears as if fewer labourers are employed (compared to earlier situation where 200 workers would be needed to produce 200 units of output).