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A Note On Marx's Analysis of The Composition of Capital Alfredo Saad-Filho
A Note On Marx's Analysis of The Composition of Capital Alfredo Saad-Filho
A Note on Marx’s
Analysis of the
Composition of Capital
[L]et us assume that the raw material is dearer and labour (of
greater skill ) is dearer, in the same proportion. In this case
(capitalist) A employs 5 workers, where (capitalist) B employs
25, and they cost him £100 —as much as the 25 workers,
because their labour is dearer (their surplus labour is therefore
also worth more). These 5 workers work up 100 lbs. of raw
material, y, worth (£)500 and B’s workers work up 1,000 lbs.
of raw material, x, worth (£)500… The value ratio here—
£100 v to (£)500 c is the same in both cases, but the organic
composition is different (Theories of Surplus Value III, p.387) 9
CONCLUSION
The use by Marx of the notions of TCC, OCC and VCC may at
times look ambiguous, since both the OCC and the VCC assess
the TCC in value terms. However, we have seen that these
concepts have very different theoretical roles, and the
terminological changes Marx gradually adopts almost certainly
indicate his growing awareness of the importance of the
composition of capital for analysis of the accumulation
process.
My conclusions, which confirm and build upon previous
findings in Fine (1979, 1983, 1989 and 1990), Fine and Harris
(1979) and Weeks (1981), can be summarised as follows.16
Marx defined the OCC as the means to assess the TCC , a
technical variable, in value terms. He recognised that a value-
measurement of the TCC would be affected by differences or
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A note on Marx’s analysis of the composition of capital 141
I am grateful to Ben Fine, Alan Freeman, Paolo Giussani, Derek Kerr, Acknowledgement
Deborah Johnston and Brian McGrail for their helpful comments
on earlier versions of this paper.
14. Or: ‘[s]ince the demand for labour is determined not by the
extent of the total capital but by its variable constituent alone,
that demand falls progressively with the growth of the total
capital, instead of rising in proportion to it, as was previously
assumed. It falls relatively to the magnitude of the total capital,
and at an accelerated rate, as this magnitude increases. With the
growth of the total capital, its variable constituent, the labour
incorporated in it, does admittedly increase, but in a constantly
diminishing proportion.’ (Capital I, pp.781–2).
15. See Saad-Filho (1993) for a more thorough analysis of the impact
of technical progress upon the determination of values.
16. Ben Fine, Laurence Harris and John Weeks were, as far as I know,
the first to interpret correctly Marx’s analysis of the composition
of capital, but they fail to give sufficient evidence in support of
their argument and do not appreciate the gradual elaboration of
Marx’s point of view.
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