Question

Explain each of these Marxian equations, relating them to his analysis of the “law of motion” of capitalism:

a) Value = c+v+s

b) s'= s/v

c) Q= c/(c+v)

d) p' = s'(1-Q)

Answer 1

a) The total value is the sum of constant capital (ie, material and machinery used up), variable capital and surplus value. This equation shows that there is no quantitative change in the value.

b) The rate of surplus value is the ratio of surplus value to variable capital. S’ is the capitalist form of what Marx calls the rate of exploitation. S’ can be increased by increasing the length of working dat, increase the productivness of labour or decrease the real wage.

c) This shows the organic composition of capital. It measures the relation of constant capital in the total capital used in production. It shows the extent to which labour is furnished with material, instruments and machinery in production forces.

d) p is the rate of profit. The rate of profit shows the profit on the capital actually used up in production. This equation shows the relation between the three ratios. Assuming organic composition of capital is same in all spheres of production, the law of value would be directly controlling for the exchange of commodities without stopping the exploitation of workers by capitalist and without substituting any other motive for capitalist’s search for profits.