Author_--.lNY2.'> < ~...',"-,!:Nc-_ -Titl.F ( , ~......-"v,u..J.:a.J:.1io~....t.4J(I , g ~_.. Acc,SSI InNo.\'2 2S c 0 ThisbookshouldbereturnednotIsterthanthelalldate5talT")8d below.Fin .. arechargedononrduebooka.Whe"loanis nOI "strictedtheperiodmaynormallybeexlendedonre-q e" ." 4 co, P.NIlliticaieconomyheldin1959bythepublishin9 Hcuse ofSocio'EconomicLiteratureDndtheInstitute ofEconomics,AcademyofSciencesoftheU,S.S,R. Firstprinting1963 SecondreviS!deditio/!1966 UNIVJ::RSrry01BRArF... RD IBRARV - 2 SE"1111 . '-lOllNo. ..... No. \:22. SeD N n.IIII KltTlIll OCHOBblnO.'lIIT1I I IECKOfl3KOlIOMIII{ /IllW"':OM R3bl p THESUBJECTMATTEROFPOJ.lTICAlECONOMY CllUplcrt.PRE-CAPITALISTMODESOFPRODUCTION, 1.Primitive-CommunalMod!.'ofProdul lion 2.TheSlaveModeofProduction 3.TheFeudalModeofProduction. 4.TheDisintegrationandColla,c. BirthofCapitalistRdatio:; Wi ntheFeudalSyTHLCAPITALISTMODIOFPRODUrnON A. 'polyCapitaiisif . 26 " Chaptt'JJ COMMODITYprODmANDMONEY (OMM(DITl leralDcS\:ripi(...1 .,fCc)(lit)'P:o.JUtu_ 1_'"COlT'm(dilC LabouW lichCrca!sC,.ti ":t Dcvc' JP1C'fEXI lar1e":1thermsfVu4 I.Me ley.48 0;,'W JfValle'.co..... it- Law(;. CO _J .....P-dlction54 ItCAP'.11,.1 .-\ND'URPI u:iVALV.WAC:> APTAllSM60 1. prillitil'AI umul:i( 11 fCalt60 Cov1CI:'0CJ.ptalfJ 3.j P:iui(1ofSurp: usJalueE:q-I .lii(1564_ ellItCompoent., -_Two0n(e9hDCJtee0 tilnf.be Worki! 9Clal.s.6.WageUn :lerCapitlis.,81 clplltV,ACCUMU1,ATION01CAPITALANDDJ TERreRAONN..IE POITIONOFTUrS!lA,m '( )It1ndllcAl ::1yofUrem::,l,y';! 2. TGeral. wofCay tJ.listA, u.=,1 89 99 ClraplerY.TH t PROFITANDITS OFEXPLOITERS CONVERSIONorSURPLUSVALUEINTO DISTRIBUTIONAMONGVARIOUSGROlTP) 1.SpecialFormsofCapital.. 2.AverageProfitandthePriceofProduction 106 Ilkj "'" 3.Commerci .r1 Profit 115 4.Loa.nCapital.Joint-StockCompanies... 5.Ground-RentandAgrarianRelationsUnderCapit ... lism CJUJpterYr.REPRODUCTIONOFSOCIALCAPITALANDECO NOMICCRISES 1.Reproductiono[SocialCarital2.TheNationalIncomc.... 3.EconomicCriscs..... B. MonopolyCapitalismImperblism..., Clltlpt.:!rV/I.THEBASICECONOMICFEATURESOFIMPERI-117 122 1.11131 138 142 1-13 ALISM...............151 1.ConcenlrationofProductionllndMonopolies....151 2,FinanceCapitalandtheFinancialOligarchy.... 157 3.Exportofcapital.EconomicandTerritorialDivisionof theWorld.............161 4.MonopolyProfits-theMotiveForce of MonopolyCapitalism168 ChapterVIII.THEPLACEOFIMPERIALISMINHISTORY.THE GENERALCRISISOFWORLDCAPITALISM171 1.ThePlaceofImperialisminHistory171 2.TheGeneralCrisisofWorldCapitalism181 THECOMMUNISTMODEOFPRODUCTION A.Socialism-theFirstPhaseofCommunistSocicty201 ClIap/erIX.THERISEANDESTABLISHMENTOFSOCIALISM201 1.Marxism-LeninismontheTransitionPeriodfromCapi-talismtoSocialism........201 2.TheEconomyoftheTransitionPeriod....209 3.EconomicPolicyintheTransitionPeriod.TheLeninist PlanforBuildingSocialism.214 4.ThcVictoryofSocialism224 CIUlpterx.PRODUCTIVEFORCES nONSINSOCIALISTSOCIETY ANDPRODUCTIONRELA 1.TheProductiveForces.. 2.RelationsofProduction.. 3.TheBasicEconomicLawofSocialism 4.TheEconomicRoleoftheSocialistState. CllaplerXI.THEPLANNEDDEVELOPMENTOFTHENATIONAL ECONOMYUNDERSOCIALISM. 1.TheLawofthePlanned,Proportional theNationalEconomy.... 4 Developmentof ....... 228 228 235 241 245 248 ,.8 2.SocialistPlanning255 3.AdvantagesofPlannedEcoTlon:,..260 C/loplcrXlt.SOCIALLABOURANDPRODUCTIVITYUNDER SOCIALISM.. 1.SocialLabourUnderSocialism.. 2.SteadilyRisingLabourProdu,tivityIs31 En(miLaw ofSocialism. ChoplerXff1.COMMODITYPRODUCTION.Me NEYANDTRADE UNDERSOCIALISM. 1.CommodityProdustudythephenomenaofnature,other fltudysociety.Thesdcncesthatapplythemselvesto areknownasthenaturalsciences.Theleneetthat thevariousaspectsofsocialdevlopmentareknown socialsciences.Politicaleconomy.oneof sciencel. Marxist LcninitpoliticaleconomyII aco", the integralscience ofMarxim m..:aL Marxism-LeninismistheSClerteewhiChdealw_ lawsofsocialdevelopment.therevolntiO"ad dictatorshipoftheproletariat.theof communistsocietyItia9 consiltingofthree economy.andthetM01Y01 economy bccautet ProducUoD ofmaterial",..Ub-Olebull ot.001"W. illltanceh piece\'G provedthattherearenosupernaturalforces.Therewas alsotheview.whichbourgeoisscholarssharetothisday, thatthedevelopmentofsocietydependstoadecisiveextent ongeographicalenvironment,thatis,ondefinitenatural conditions(climate,soil.minerals.etc.).Itstandstoreason thatgeographicalenvironmentisoneoftheessential conditionsofsocialdevelopment,butitisnotdecisive.In thespanofthreethousandyearstherehavebeenthree successivesocialsystemsinWesternEuropeandevenfour inCentralandEasternEurope;yetduringthatperiodthe geographicalconditionsinEuropehaveeithernotchanged atall,orsolittlethatgeographerstakenoaccountofthem. Somepeopleconsiderthatthecourseofhistorydepends onlyonthewillofoutstandingpersonalitiei-statesmen, generalsandsoon.Inactualfact.however,these itiesdoaccelerate01'retardtheonsetofevents,buttheyarc unabletoalter the course of history. What.then,determinesthedevelopmentofsociety?Marx was the firstto provide an answer to this question. Inordertolive,peoplemusthavefoodandclothing, housingandothermaterialmeansoflife,andtohavethese, peoplemustproducethem,theymustwork.Anysociety willcollapseifitceasestoproducefore,theproductionofmaterialwealthISthebaSISofthe life and development of any society. Whatismeantbytheproductionofmaterialwealth?The processofproducingmaterialwealthincludeshumanlabour, themeans oflabour and the objects oflabour.,. Labourisapurposiveactivityofthehumanbemgdirected towardstheproductionofmaterialwealth.Inthe. oflabour,manactsuponnaturein,ordertoadaptIttohiS needs.Labouristhee,!clusiveofman,an.eternal naturalnecessitY,aplimaryforhumanhfe.As Engels put it.l.the proletariatofthesocialistcountrIes,haVingaware ofthelawthattherelationsofproduction'olrespondto thecharacteroftheproductiveforces.inalliancewiththe peasantryandledbytheCommunistandWOI"el"Parhei, overthrewthepoweloftheexploitersandetlb:mtbuilding anewsociety. Economiclawshavefeatureswhi'areI" .... specific) lawsofnature.Thefirstfeatureisthatleyareof comparativelyshortdU:"lt"onand)pera/ed {Jdefinit. bistoricalperiod.Definiteeconomicconclitic"thatIS0 say,theproductionrelationsonwhi2:_eyre t5,f ....n thebasisoftheoperationof economll.__ \\'s.Inthetransition fromoneformationtoanother.theoldre,tionsofprodU( tionareabolishedandnewonestakelh'rplace.TlisI whatcausestheof0esetl. .. lIlomu.;1 W5 andthe appearance of other laws. Thefactthatprivateownership,,1themcansofproduc tionisthebasisatproductionrelahonslOd,cj'itali5m enablescapitaliststoexploittheworkin:- C1_55:lndto subordinatet11ede, elol'JlIcntofprodu( tlontotbIrQoalof enrichmentandtotheiritchforprofilFrth.irea. on productiollofsurplu!>valueisanobjel..-tiIJeec.)lIonwlawot cap i t (/li sm. Furthermore.privateownershipofthemeansofproduc' tionpromptseachcapitalisttodevelo]justthosebr;lnches ofproductionth3tuemoreprofitablitohi m.Thbrules outthepossibility01plannedeconomicdevelopmentunder capital"sm,CapitalisteconomydevelopsonlCbasisof , competitionandanarchy c;ompeliliollandanarchy01 objective lawof capitalism. ofConsequently. prodlldlOtI,,/.o;()constitutea" After.pri.vate owncrshiyofthemean ..of productionISabolished,theeconoml!.:lawsofcapitalism tooperate ..Asare5u1toftheabolitionofcapitalist pflvateownershipofthemeansofproductioninthe socialistcountries.neweconomiclawshavccomcintobeing there,whiletheoldlaws ceasedtooperate. ofproductionarebasedonpublic socialistownershipofthemeansofproduction.Under socialism,itistheworkingpeoplethemselveswhoare theownersofthemeansofproduction.Theyworkfor !heirownbenefit.forthebencfitoftheirsociety.This ISwhythedevelopmentofproductioninthesocialist is bythepurposeofincreasingly themateflalandculturalrequirementsofsociety. Increasmglyfullsatisfaction01thematerialandcultural requirementsofsocietyisOllobjectiveeconomiclawof socialism. .Publicsocialistownershipofthemeansofproduction mtegratestheentiresocialisteconomyintooneorganism. Suchaneconomycandeveloponlyaccordingtoplan. Balancedplanneddevelopment01thenationaleconomyis anobjective lawof socialism. Manyeconomiclawsoperateineachsocio-economic formation.Lawswhicharetypicalofonlyoneformation areknownasspecificlaws.Amongthesewemaydistinguish thebasiceconomiclawthatdeterminesthechiefaimwhich societyseekstoattainandthewaysandmeansof .it. Besidesthesespecificeconomiclaws,thereareothers whichapplytoallsocio-economicformations.Amongthese isthelawthatproductionrelatiollscorrespondtothe characteroftheproductiveforces.It expressesthenecessary connectionsandinterdependencebetweenthetwoaspects ofsocialproduction-theproductiveforcesandproduction relations. Thesecondleatureofeconomiclawsconcernsthe characteroftheirapplicationintheinterestofsociety.It impliesthat.unlikethelawsofnaturalsciencewhereaneW lawisdiscoveredandappliedmoreorlesssmoothly. 16 ('COllom;clawsarediscoveredandappliedilltheteethof theresistance011thepartoftheobsolescentforces. Theapplicationofeconomiclawsinclasssocietyhasaclass character. Thesearcspecificfeaturesofeconomiclawswhichmake themdiHerent fromthe lawsofnature. Inallmodesofproductioneconomiclawsmayoperate spontaneouslyorbeappliedconsciously,asa"recognised necessity" . Intheantagonisticsocio-economicformation..where privateownershipofthemeansofproductionistherule, economiclawsoperateblindly,regardlessofwhetherthey arcrecognisedornot.forinstance,undercapitalismthe processofproductionisofasocialcharacter,allitsbranches areconnectedandinterdependent.Butthissocialcharacter ofproductionisbasedonprivateproperty,whichmeansthat everycapitalistinhisenterprisepursueshisownselfish aimofenrichmentandseekstoextractthegreatestprofit. Thenecessaryconnectionsandproportionsbetweenvarious branchesofproductionareestablishedinaspontaneous manner-throughendlessandcontinualdeviations.One daymunygoodsareproduced.andthenext,onlyafew, etc.Andso,foreverycapitalist.economiclawsoperateas aforcestandingabovehim,asaforcewhichcannotbec?n-trolled.True,somecapitalistsmayreachanunderstanding oftheeconomiclawsofcapitalism,buttheyareunableto alterthespontaneouscharacteroftheiroperation. Undersocialismeconomiclawsareunderstoodand conSciouslyappliedforthebenefitofsociety,thanks.to theexistenceofsocialownershipoftheof Ittakesconscious,organisedandby. workingpeopletomakethemostoftheeconom.lc lawsthatoperateundersocialism.Avery.bigknOWingandutilisingtheobjectiveeconomiClawsI!,t.e interestsofcommunistconstructioninsocialistcountnesIS playedbythe Communist and Workers'Pa.rties..h'h politicaleconomyISasCIencewlC ThesubjectmaUerdealswiththe?a5.isofsocialdevelo!i ofpoliticaleeonomymenloThisbaSISISthe materialwealth,themode0Ptb tion.Butpoliticaleconomystudies standpoint oftherelationsbetween peop eunng t7 ofproduction.Itinvestigatesthebasisofsociety_Political economy,wroteLcnin.isnotatallconcerncdwithproduc-tion.but"withthesocialrclationsbetweenpeopleinpro-duction,thesocialsystemofproduction".lAtthesametime politicaleconomycannotfailtotakeintoaccountthecon-nectionbetweentheproductiveforcesandproductionrela-tions.Norcanitcompletelyignorethesuperstructure,since thisrisesoutofthebasisandstronglyinfluencesit. Thesubjectmattcrofpoliticaleconomyisthcreforethe production(economic)relations01people.Thisincludesthe fOllilSofownershipofthemeansofproduction,theplace differentclassesandsocialgroupsOCCtlpyinproductionand thel'elationsbetweenthem.theformsofdistributionof material wealth. Inotherwords,politicaleconomyistIlescience01the development01thesocio-productive,i.e.,economic,relations amongpeople.ItexplainsLllelawsWltic11regulatethe productionanddistribution01materialwealtbillhuman society atthe differentstages 01its deve1opmellt. Fromthisdefinitionofpoliticaleconomyitisclearthat itisahistoricalscience.Itshowshowsocietydevelops fromthelowesttothehigheststages,andhowtheentire courseofhistoricaldevelopmentnecessarilypavestheway for the victory of the communist mode ofproduction. Politicaleconomyisaclass,partisanscience;itdeals 'Wquestionsofrelationsamongpeopleandclasses,and it is concerned withtheir vitalinterests. Isthedownfallofcapitalismandthetriumphof communisminevitable?Bourgeoispoliticaleconom;t' naturallygivesanegativereplytothisquestion,It lepresentstheinterestsofthesystemthathas.longSlllce becomeabrakeonsocialdevelopmentandISdoomed to fall . Bourgeoiseconomistscouldmoreor. l.e!';s analysetheworldaslongasthewasUSlllg dassandthedevelopmentofcapitalismwas111 thelOterests ofIOCialprogress.Butthattimeislong.over.Fromthe momenttheworkingclassbecamean1ndependentforce ILenin.coUectedWorks,Vol.3. pp.62-63. " opposedtothebourgeoisie,andthedevelopmentoftheclass struggleI'eal:hedastagewhercitstartedtoforcshadowthc downfallofcapitalism,bourgeoispoliticaleconomylostits scientificcharacter.Sincethenitstaskhasbeentodefend theoutdatedcapitalist,ystembyallavailablemcans.to combattheideology of the working class. Theleadersoftheworkingclass-Mane,Engelsand Lcnin--developedpoliticaleconomyonatrulyscientific basis. Marx'slifework,Capital,containseverythingcontributed topoliticaleconomybyMarxismbeforeLenin.Thiswork isbasedonapenetratinganalysisofthecapitalistsystem rmdprovesscientificallytheinevitabilityofthedownfallor capitalism,thecstablishmentofproletariandictatorshipand the inevitability of the triumphof communism. InnewhistoricalconditionsLenincontinuedtheworkof MarxandEngelsandraisedpoliticaleconomytoahigh('r level.ThegreatserviceLeninrcnaeredwasttlafncgavea scientificanalysisofthehighestandlaststageofcapitalism -imperialism.Hisanalysisofimperialismand.primarily, hisdiscoveryofthelawoftheuneveneconomicandpolitical developmentofcapitalismduringtheimperialiards,advertisementwe;"alsohasame-value. whichconsistsinthewage-worker scapacityduringthe labourprocessto Iucgre3terthanthevalueofhis labourpower.kisthispropertyofrabourpowertobethe sourceof 'sJ,.lrplusvaluethat intereststhecapitalist. Letusnow..E.1O'el:u>wsurplusvalueiscreatedthroughthe consumptionof la1)ourand howthecapitalisteru:iches himself, IM"r. C... n.:. .i.\.JlI,p.lj:. 6' 3.TheProductionofSurplusValue. CapitalistExploitation SpecificfeaturesofLabourpowerisusedduringthe tbelabourprocesslabourprocess,whichisalwaysaeeom-undercapitalismpUshedinadefinitesocialform.This socialformiswhatisknownastherelationsofproduction, andthesearcbasedontheformofownershipofthemeans ofproduction.Theparticularfeaturesofthelabourprocess dependineverysocietyonwhoownsthemeansofproduc-tion.Incapitalistconditionsthemeansofproductionbelong tothecapitalist.whiletheworkerisdeprivedofthem.For thisreason,thefollowingspecificfeaturesofthelabour processare typicalofcapitalism: Firstly,theworkerworksunderthecontrolofthe capitalisttowhomhislabourbelongs.Thecapitalist decides whatistobeproduced,onwhatscaleandbywhatmethod. Secondly,notonlydoestheworker'slabourbelongtothe capitalist but alsotheproduct of his labour. These specific features ofthelabour process under capitalism convert theworker's labour intoaheavy,compulsory burden. Tb Capitalistproductionisacombination e processfthf1 of&"rowthofvalue.0eprocess0creatInguse-vaue Capitalistand theprocessofthegrowthofvalue. exploitationInacommodityeconomyuse-value cannotbeproducedwithoutproducing value.Whentheworkermakesacommodityheexpendshis labour.Thenatureofthelabouristwofold.Ontheonc hand,itisconcretelabouranditcreatesuse-value.Onthe otherhand,itisabstractlabouranditcreatesthevalueof theco"!modity.Forthecapitalist,theproductionofuse-valuesISonlyameansofachievinghisaim.Thisaimand thechiefmotiveofcapitalistproducUonisthecreation01 surplusvalue. Let usconsider howsurplusvalueiscreated. Whenhestart:suphisbusiness,thecapitalistbuysonthe marketeverythmgheneedsforproductionmachinery, tools,rawmaterials,fuelandlabour' power.Then productionstarts:themachineryandtoolsoperate,the workerswork,thefuelisconsumed,therawmaterialsare traufonnedintothefinishedproduct.Whenthecommodity G6 isreadythecapitalistsellsitonthemarketandwiththe moneyl'cccivcJhebuysmorcrawmaterials,machines. labourpower,etc.;inotherwords,thecycleisrepeated.This cyclecan be depicted likethis: Lp c.... P Mp C''I' ,, money-commodity(labourpowerandmeansofproduc-tion) -production-commodi ty-money. Whatisthevalue of thefinishedcommodity? Letussupposethatthecapitalistownsaclothingfactory. Inordertoproducesuitshebuyssewingmachines,woollen cloth.trimmings(lining,buttons,thread.etc.)andlabour power.Supposethattomake500suitshebuys1.500yards ofwoollenclothat $30ayard,thatis,goodstothevalueof $45,000.Onthetrimmingshespends$30persuit.thatis. atotalofS15,000.Theproductionof500suitsentails depreciationofthesewingmachines,andotherexpenses (lighting,heating,etc.)totheamountof$5,000.Expenditure onhiringlabour(500workers.eachrecclvi:lg$5PC1'day) amounts to$2,500. Thusthecapitalisthasacquiredalltheelementsessential forproduction.Hi!;expendi':'Jrcon500suitsisas followsValueofwoolltncloth Valueof ValueofdCpll c:alion,etc ValueoflaboUipowe:' /'Jlal .,5 .00 fl5.0.)o ,:i,QuO ,:: ,fi'JO 'ti7,500 Thevalueoj'ont:suit(67,500:500)isSUS.Thecapitalist discoversonthe>market thatsimilar suit:>arc sold at $135 per suit.Sohe,too,hastosellhissuitsatthisprice.It follows thatthel:apiwlisthRSadvancedS67,500forproductionand that,1fte1"thesale01thecommoditiesproduced(S135X500) hel'eceiveJt he:same$67,500.Nosurplusvaluehasbeen crc",tcJ.moneyhas;nlJtbeen tl".lnsfonnedinto capital. Howthenissurplus v::t1uc ,. , 1 \ Thepointtonotei5 the,the ofhis powernotInthe(,ourseofa\\worRmn day 'butduringpartthe i.t:1Y. In.houn. Butthecapitalistcompelshunto,fOlkfot, malt.:thanfive hoursaday.ThecapitalisthuspaIdtheo.:'ulyvalueofthe labourpowerandistheowneroftheofcommodityduringthewholeoftheworklllg. day.Forthis reaSonhecompelstheworkert?workforeIghtortenor evenmorchours.Thislcngthcmngofthelabourprocess resultsintheworkercreatingmorevaluethanthatofthe commodity knownaslabour power. Letussupposethatthecapitalistmakestheworkerwork notforfivebutfortenhours.Overtenhourstheworkers (inourexample.thereare500)willuseuptwic:asmuchof themeansofproductionandwillproducetWIceasmuch output,thatis,theywillmake 1,0,00suits., LetusnoWconsider thecapitalIst'sexpendIture: Valueofwoollencloth, Valueoftrimmings. Valueofdepreciation Valueoflabourpower , , , , '90,000 '30,000 '10,000

Tdal,132,500 In aten-hourworkingdaytheworkershaveproduced 1.000suits.Theirsaleonthemarket(at$135each) broughtin5135.000tothecapitalist.Fromanadvance S132 SOOhehasreceived$135.000.Theoriginallyadvancl .'PUSamounthasgrownby$2,500,Thissumof$2,5001SSUI value.Money hasbeentransformed into capital.ft Theacquisitionofsurplusvalueisdeterminedbytheac thattheworkersputinmorehoursofworkIEquiredforthereproductionofthevalueofthelrla power.Consequently.surplusvalueis . resultot fj,doitation01theworkingclassbytllecapItalIstS.cdby Exploitationofmanbymanisnotengender fdal capitalism.itexistedlongbeforeit.Inslave, andrrieties. the labour ofslavesandserfswasor labour.andtheirexploitationwasnotconcca 68 Thingust.:'lunderstandand explainalltheprocessesandphenomenatakingplacein capitalistsociety.Itexpressesexrloitingnatureofthis modeofproduction.ThislawdeterminesLheintensific.l' tionofcompetitionandtheanarchyoft...; :,;.produC"-tion,thegrowingimpovershmentofthework;ngpeople, increasingunemployment.he I'ld!;h">l"pening of allthecClntradictknsc . Necessary andsurplw labour-time Inthecapitalistco;t::orpnscthework-ingday lntotwoparts:necessary l.;lbour-timeandsurr1uc;labour-time. theworker'slabour ;.sdivided into nE'-ccssary ::.U:l'!uslacou,_ Nuessarylabour-timet:.'ld a:'ctbeparts o(thelabou"Lmcand.:-:C.eL,boul'cxrenJcdbythe workerwhicharcrequirt>oforthe1'2r'rodu...-:lion0ftLt'value ofhislabourpower,i.e,.ofthevJJueoftheme.].nsof subsistenceherequires,Thec.lpitalistpaysforthelabour-time in thefo;mofWJ9'-s. Surpluslabour-timeandsurpluslabour.lrethepartsof thelabour-timeandofthelabourwhicharcexpendedon theproductic01slIrrlusproduct.Undercaritalism, surplusproductas"umcstheformofthesurplusvalue appropriatedbythecUl,il.lllst,Themt10of. labourloiterstatcis.to maintainandstrengthenthesystemo!' hired labour by capital. 4.CapitalandItsComponents CapitalasasodalBot! _::::eoiseccncthat relationt!vr:rY 01 beginning ot produC&lonw,:ththestones.llld:;ticksofprimitive man,iscapitalInactu.11factthemeans productionarc notinthemselves1.:J'7'ital;theyareindispens3b!eforthe existenceofanysocicty,andinthissen:::eare .ofnoaccount toclasses.Themeansof productionbecomec.lpltalonlywhen theyaretheprivatepropertyof areused theexploitationofthe work!ngclass.CaPItal!SnotadefiOlte sumofmoneyandisnotthemean!':o[ a historicallvdetenninedsvcio-producti\'erelation.10whIch themeansandinst'!"umentsofproduction,aswella.s baskmeansofsubsistence.arcthepropertyofthe theequation:s' =-; x 100%.Letusillustratethis.Suppose acapitalistadvancesthefollowingsum(indollars)forthe productionofcommodities,100,000c + 20,000v=120,000. Hesellsthecommoditiesproducedbyhisworkersfor $140,000.Thismeansthathereceives520,000assurplus value. What will be the rate ofsurplus value? :x Theexampleshowsthatherethelabouroftheworker isdividedequallyintonecessaryandsurpluslabour,i.e., halftheworkingdayheworksforhimselfandtheother halfhe- worksforthecapitalistfornowages.Thegreater the r proportionofsurpluslabourtonecessarylabour,the higher the rate ofexploitation. Ascapitalismdevelopstherateofsurplusvaluegrows. IntheU.S.A.therateofsurplusvalueintheminingand processingindustries,calculatcdfromofficialstatistics,... 145percentin1889,165percentin1919,210percentIn 74 1929,220Icrcentin1939,lbout260perct 1941and 306.3percent(inthepro...singIndus!r'e.alone)in1 i.>5, HowIS'heincr.!-lSCir.thedc;:eeofcxploitat onof labou.ad1ievcd unt:cr C"lPItc..:"Il? G.'J'woWaYIofIncreasingtbeDegree ofExploitationofthe""orkfngClass AbsoluteIt How1'1'(1.1what'las-)np.bCOlC '"IlIrplU5valueth..t .lpitc:11SM'e wc-rkingday 15d;iricdin'"ltwoP-ts'1th:: necessarylAbour .... ne.. -'lircdIr-rxluce;lr4-not nt....commoditfcsbe., Jal1,,'aluetothrupower used,and2)thes .....-plulaYiu1Irti;n Therateofsurplusvalueexressedas"pc:: ..... ntage.WI] 5 be sSX IL.J.ICO .. r\.. .. lt. I 3h)urs J netc_rylal)\ rtil urps " -Therateofsurplusvaluew11 bes3XI cent. Inourexample.therdeofsurplusalue,_;;n ....from 100percentto233percent:10tasareswtc.alabs"'J increaseinthelengthofthewo;kingdaybulare)ult ofthechanl:.cdproportionbetw:ennc_..!:- ryand!!!plu'S labour-timC'. Surplusvaluewhicharisesfr.:.mareductioninthe necessarylabourtimeandacon'espondingincreaseint'1c surpluslabour-time, upontheincreasedlahour productivity,iscalled'telativesurplusvalue.Undercc,tain conditionsalsO"obtain- extrasurplusvalue. Extr,,;.(orddditiloa1)su: piusis Extraava:ictyofrelativesurplusvalue. surplus\'aluef'.verycapitalistseekstoextractas muchprofitascan.Forth"S)urpose helewmachineryandtechnologyandthus secureSahighc.rodurtivityoflabour,tbf'nctresultbeing thattheindiv'du31valuefgoodsproducednlis e"lterprise islowerthantheaveragevaJu,cofthecommodities I'rodm.:cuintherelevantbllO(h.urIndusl'Y.AsL.1C neeofncommodityisIctennmcdby !9Ccondl" tionsprevailinginP10liw ton,thecapltnlt,stohtd nsa higherrateofsurplusv.l1m': W\t'1theusual rate. Extrasurplusvalueisthedifferencebetweenthesocial valueofthecommoditymdItslowerindividualv.alueIt hastwospecificfeatures:firstly,itis bythose individualemployerswhowerethefir;ttoInstall"lew, moreprod\.1l,:livcpbllt.Secondly,su:pJusi5 obtainedonlytemporarilybythenpltalistInquestion,for soonerorlaterthenewmachinerywillbeintroducedin theenterprisesofothercapitalists,il:ldwhoeverwasfirst tomakeuscofthenewequipmentwill1< SClisadvantag: dndceasetoobtainextrasurplusvaluC'.Disappelr ngfrom oneenlerprise.however,Lhiskindofsurplusvalue'I)pe'lrs inanother,wherenewandstillmoreoCtv.:)r"I,. ...dnaehinel'Y been intmducl'd. ""tr.1surplusvaluedays)nrn'llr11 tdei1lthe developmentofcapltc:.:"Sm.Thedriveto01tamitrcsul, inatl ntancousdevclopmc,tGftc1-onokgySi1l:Cc.;J.\...h capItalist"]imsathisownc'1,r'chmcnt.lU:tr C1tl'ke('phi new"laC:li,,"ryondroduction"('hnolop:y1eClet,l.erreby ret..:.'ngt'1clnt"lled1f!wr.phy' I< .lJiyndnOlllly1:; W"".:lay]( hed1 B Jnu:;rml""rc,and\\ w" ,-x"llely Iiw .irepi:"redthen Irlh(" l,,'tntu;J(,lIeTI31hneIrodUIon,\I7. 1.the imlli:,. ,.:(.fweknqpc11 on.n.:.ldl.itpoibli!II ,..Ia,...lC! wo.ersI!.lr:bvm,:,hir:2)thefulfilJl1whenitisinfluencedby Inthe technicalmake-up.Withthedevelopmentof,w.lpitalismand thegrowingaccumulationofcapitalthereisa riseintheorganiccompositionofcapital.Intheprocessmg industriesintheUnitedStates.forexample.theorganl(.: compositionofcapitalwas4.51in1889,f): 1in1939. and 8,lin 1955, Thisgrowthintheorganiccompositionreflectsthefact thatasproductiondevdopsthereisanincrease. inthem:ls:;; ofrawmaterials,machines.toolsandothereq.ulpmentc?m-paredwiththeamount01labourpowerusedInpnductlon, Forexample.whereastheorganiccomposit!on:ofcapital wasoriginally-:. : 1,itlaterbecomes2; 1.then.3 : 1:4; 1. 5: 1andsoon,AndthismeansthattheproportIonof variablecapitalw:th1'1thewholecapitalfellfrom121/3.1/4.1/5.1/6.etc.Butsincethe for,lab.;'lw,15 determinednothvthewholeofcapltat .on,yby. Its variablepart,relativecurtal :mentofcapItal meansthattherateatworkersaredrawn ductionbecomessloweranuslower.and behmdth rate ofthe accumu1ation of capita L TheresultisthaLanever-increasingsectionofwork.ers canfindnoemploymentfortheir labour.Partoft.heclassbecomesredundantil1relationtothecapitalistaccuOlul.1tion.ASoocalled"surpluspopulabon 01 relative populationis nis Thecxist..:'nccofconstantrelatlvesurplus. ahod ,h"}'tlawofpopulatIOn.dlScovcre ancxprcs adaet)the .:onstant capitalofDepartment II ThenewcycleofproductionWilt';,ininlCV""vn1largercapitalbasi .anditthe3te,fuplusvallIS lOOperccnt.thf>gro! SSlalp;----IuctInthee"andye!1 WlilbeJSfollcw ['"'pal (me'll1440)(; [epartn cnt11:l,ooe ,10l-t::Qu+ ,JO,66u 'lO .3,20) ,0 Thisisrowtheproces!01extende_"d'"Jltali!tr,!nl,.0on takesplace,andthesearetheconditbnsFr__1.alon whichpredetermine the trend of extended repJ ""'Iclu_on. It th--cuc Inextendedreproduction.thedeveopmc'101e.. tiveforcesisexpressedinthefactthaItheamountofsd lal labourthatgoesintotheproductionofmeansof)1J tionincreasesmorerapidlythanthatw'1icl.goesntole production ofnsumer goods,'that flz Thf'!e::'JllomicJazurlexte'1de.1f'cnroducllon 15"_;,11. productiollvItnemr.uns1prf'll:!'ld"grnw.mor.,.-than pr.!'ll".!iCn ff cnSU711ergoOdS.-fth"fthe "rh. "w0 eWOlem,mmg.:.:II.- sedpeoples, mIgY ..not yet dead.cd ItIS olonialismtodaynotonlymakesuse0]oocn.an:n C1btresortstoconcezledfomsofpen!""!"11 onmta strugg C'tcountries,itsllIf'tokeepUtC'5e thentCWsYeconomical'Yllnddrt)rndcntonle counr1C colonialismtoday thr.HeadedbytheU.S.A.,thelmpenahs,.r-.:_ AmerIca",dnewformsandmethodsof(:pcratelycolonies.Themonopoliesare SfIV thepeop escit''pontheleversofC\._Domiccontrolano ingtokeepclr tinAmenca..AsiaanaAfne":hey politicallDb r:aldositionsir t,_etnomyofthe aimat !"amtammg t0l cat"r..ngnewpo".onsundrr newly-liberated cfawing''lest'' into theguiseof\.ps themand militaryblocs.Imposmg'L.'.tto-les establishing militaryOf asel Thebreak-down0.ecoso'thecapitalistcoun theeconomicand ole -.Ifperial: sm:isawhole. triesandshakesthefounr 1'a1 lneviublc.The ThecompletecollapseCfco tnJ asreu't of break-downofthe 0.,.lCO mov.ne"\ti;h= theadvanceofthe hb..:.,_,atter the,rmat'oll dhitorI\..'mpopu.urandcapital,themetropolitancoun-tl'lCSandthecolomes,andbetweentheimperialistpowers aretotheextremelimits.Thedeepen-mgofthesecontradIctionsleadsthecapitalistworldto ,d'Ih1new economicanSOClaup sand,inthefinalanalysis.to the replacement of capitalIsm by socialism throughrevolutio Thefacts, atthe, presenttimearethebestconfirmationtheconclUSIonwhichMarxarrivedatover100yearsago thatthecapitalistmode ofproductionisdoomedb' hIStOry.Y TilECO:\IMUNIST'lODEOFPRODUCTION FromonegeneratIontLthenext..... ork.J.lgpeupledreamedofasec11reand IiButfor aong... me..lese dreamswerenottocomet.ue.forpeoplewreunawareof theirpathtofreedom.Me.. 1:EngelslndL:rull,thegrelt leadersoftheworkingclass,showedtheworkingpeoplethe pathtocommunism,theradiO!Ittutu -edmankna. "Communism,"declarestheprogram1T'eo!theC.p,s.l' "accomplishestheh..-storicmission of deliveling allmensocialinequality,fromeveryformofonprcsSl(n1ndexploi' tation.fromthc;( rrors war.andprO,-'3.111S Pc- lnbour Freedom.EqualityF-'lterl1ltyand foralloftheearth."1 InitsdevelopmentcommunislSO!etyha!.0pas:III "'ugh twophases:the firstISClllcd;ocialtsn100the wnt( h isthe higher phase. communism. Thcfinalaim oftheliberationstruggle ofthe workngpeo' pIeofallcountriesisthebuildingofcommunism.As webcginsocialistreforms."wroteLenin."wemusthavE'a clearconceptionofthel- 0",'towardswhichreforms areinthefinalanalysisdirc.ed.thatis,'1.ecreationofcom-munist society:'2 ITileR(_II)CQmzr:unism.Pt!). Le,mcolJcc'e:lW-ks.Vu'"0.,.127 Marxism-LeninismprovedthatthecommunistSOCio-nomicformation,whichwillfollowcapitalism,willnotready tohand and at oncc.. Communistsocietyc.a-?notbebUIltthcdB:Ythework-ingclasshaswon pow:r.ThebUIldIngofcommu_ nismrequiresalong.penodoftImeandstrenu.ousefforton thepartoftheworkmgclass, andIntelligentsia. Societycannotpasstofromcapital_ ism.It hastopassfromcapItalismtosocIalIsmastheresult ?fstubborn.struggleandonlythenwillsocialismdevelop mto commUnIsm. Describing the twophases of the communist socia-economic formation,KarlMarx,thefounderofscientificcommunism wroteinhisCritiqueof theGothaProgrammethat and communism are different stages of the economic maturity of one andthe same modeofproduction.KarlMarx regarded socialismasthefirstphaseof communismandindicatedthat atthisstagewedealnotwithacommunistsocietyasithas developedonitsownfoundations,butwithsuchasociety thatemergesfromcapitalismandwhich,forthisreason,in everyrespect-economically,morallyandintellectually-is still stamped with the birth-marks of the old society.Lenin stressed that"theonlyscientificdistinctionbetweensocialismand isthat thefirsttermimpliesthefirststage ofthe ncw SOCICtyarising out of capitalism, while the second implies the next and higher stage". t Thedevelopmentofsocialismleadstothesecond,higher phase-communism. Thus,socialismandcommunismaretwostages,two phases of one and the same communist SOCiety. -,--ILenin,S('leciedWorks.Vol.3,r247. A.Soc ialis m-t heFir s tPhas e ofCommunistSociety ChapterIX THERISEANDESTABLISHMENTOf'SOCIALISM 1. ontheTransitionPeriod fromCapitalismtoSocialism RevolutionaryIntheirexaminatic,"cfthe,Jurseof transitionthccconomicdevelopmentof'3ocicty, fromcapitalismthefoundersoftosocialismcoveredthelawsofthedevelop mentanddownfallofnpitalism.Inplaceofthe oldsxiety withits eronomicpovertyandpoliticalinsanity.w.rotcM.J.:", anewwillinevitablycome,the cipIcofwillbepeace.foreachthena.tIOnswl:1 oneandthe :nastl::-- labour.ThissocietyId' '\fhfil t''I',C worlknownas socialism.It wasbUII,:ITtersIme In.. inthe Union of Soviet Socialist Republics... Consequent uponthe defea.t of fascistGerm.J.nymllit.ar-ist ]apnn in the Second WorldWar,inwhichtheSoviet U.OIlont',1dtht'umphofthesociaIS playedthedCClSIVCro e,anen.r-revolutions,thepeoples ofanumber of other countnesunde tookthe building of socialism..h'h The victory of the Great Odobe!' Socialist RevolutionWIC.( 'f.thedevelopment0 wasthe'3tarting-pomt0ancwera111 I'd'tsd'y ,h,,'t r smhascut IveI... , humansoclctyshowedtat\..JPIaI.. .'.{rodu tionhavebecomeatrc thatcapitalistrelation.;0,PCftheroductiveforces. mendousbrakeonthedevelopment