Question

In Chapter 5 of Capital, Marx’s writes about the contradiction in the General Formula. What formula and what contradiction is he writing about? He also critiques some of the explanations for surplus value given by other writers. What are those explanations and how does Marx critique them?

Answer 1

The Capitalisam includes seller , Capitalist and a buyer..Captalist purchases a commodity from a seller and sells and sells that in higger price to the buyer. This transaction cyclr takes place is same for the buyer and seller those who are doing the same actionin the regular commodity cycle ,the person different is captalist.

(1) Marx argues that M-C-M contrdacts all the law of exchange.We have to focus on simple circulation might permit the valorization of values by its nature (increase in magnitude of value ) consequently entering in to the formation of surplus values.

The process of M-C and C-M fromp the point of view of buyer and seller at each step , he concludes the relationship as irrelevent.The actual acts are simple commodity circulation.

Marx says in termas of use-value each side gains more use-value.

(2) Next places mony in the middle C-M-C . Even it makes sale a nd purchase distinct acts , the assumption will not be changed that equalents are exchanged (chapter 1-3 , part -1 )

Marx line of reasoning he writes that " it is true that commodities may be sold at prices which diverge from their values".

(3) The sum values in circulation can clearly not be augumented by any change in ther distribution.

Wheather we are speaking of merchants capital M-C-M or even users capital M-M the incease in value can not arise in circulation , at least in aggregate (there can be redistribution) something has to take place that is not visible in the circulation.

Marx organized two users capital, marchents capital.

merchants capital seems to be lesser of two evils as there is some sort of commodity exchange occuring.

users capital some sort of cheating method of gainning profit , because money is made by the loaner from the interest on the debt of others.

The main thing is that where capital originates is clearly not via the basic exchange of commodaties,as this generates no surplus value.