Professional Documents
Culture Documents
Revolutionary Workers Education Series
Revolutionary Workers Education Series
Series
1. About Wages
We workers know that the average wage rate fluctuates. But these
fluctuations are within a certain limit. In this article we will understand
what are the fundamental reasons for the fluctuations in wages within
the capitalist system and how its ultimate limits are determined. But we
will start with some basic things.
Machines, raw materials, etc. do not produce goods on their own. Only
living labour, i.e. working workers, carry out the process of productive
consumption of these machines and raw materials etc., which results in
the production of goods. The investment made in machines, raw
materials etc. in the value of the commodity, i.e. the value of machines,
raw materials etc. is transferred as it is. It cannot create any new value in
itself. That is why the investment made on these is called fixed capital.
The worker creates value equal to the value of the goods required for the
reproduction of his labour power in a part of his day's work, around
which value the wages equal to the value are generally paid to him by the
capitalist. The wages can be above or below the value of labour power
according to the relations of demand and supply of labour power and the
class struggle carried out by the working class to increase its wages.
Depending on the above factors, the wage rate keeps fluctuating.
However, the worker creates surplus value for the capitalist class in the
other part of his working day i.e. the working hours of the day, which the
capitalist receives free of cost without any additional investment. Yet,
from the economic point of view of the capitalist class, the worker is not
cheated! The rule of capitalism is that there is an exchange of
equivalents, that is, as a general rule, only commodities of equal value
are exchanged. But if the capitalist gives back as wages what he takes
from the worker, then where does the profit of the capitalist class come
from? This is what capitalist political economists before Marx could not
understand. Marx understood this for the first time and explained that
the capitalist does not buy the labour of the worker but buys labour
power (that is, his capacity to work for a certain period of time), which in
capitalist society has itself been transformed into a commodity. Everyone
knows that, socially, a producer can produce in a day a surplus of goods
beyond what is necessary for the reproduction of his life. If this were not
so, classes and class divisions would never have arisen in society. The
capitalist political economists of the 18th and 19th centuries were also
aware of the fact that a producer produces more than what is necessary
for his livelihood. Therefore, when the capitalist buys from the worker
his labour power, the value of which is determined by the value of the
goods necessary for the reproduction of labour power, he gives him the
value of his labour power. In this sense, there has been an exchange of
equivalents and the exploitation of the worker cannot be explained as
any kind of “deception” or “theft”. But the labour power of a worker
produces more value in the process of being expended in a working day
than its own value. In other words, labour power produces more labour
in the process of being expended than the labour by which it is produced.
Therefore, the worker works for the reproduction of his labour power in
one part of his working day, which we call necessary labour time, while
in the other part he produces surplus value for the capitalist, which we
call surplus labour time. The worker gets wages for working during the
necessary working hours, while he gets nothing for working during the
extra working hours, and his surplus product is appropriated by the
capitalist, which, when sold, takes the form of surplus value and becomes
the capitalist's source of profit. This is the disgusting little secret of the
capitalist's source of profit.
In the capitalist system, wages take the form of the ‘price of a day’s
labour’ and hide capitalist exploitation because the necessary and
surplus labour time are not separated in time and space, but are
continuous parts of the same working day. Therefore, it appears that
the worker has been paid the ‘price of a day’s labour’. This form of
wages in the capitalist system hides the exploitation of the worker and
puts a veil on capitalist exploitation. In fact, the worker sells his
labour power and in return produces value equal to his labour power
in the necessary labour time and also produces surplus value for the
capitalist in the surplus labour time, which is the source of the
capitalist’s profit. That is, the worker’s working day has two parts, in
one of which value equal to the wages is produced, and in the other,
profit. The working class and the capitalist class are constantly
engaged in a struggle to increase their share in this newly created
value. The working class seeks to increase its wages while the
capitalist class seeks to increase its share of profits relative to wages
by various means. The capitalist class does this by lengthening the
working day (which has a physical limit), which we call absolute
surplus value, and by reducing the cost of reproduction of labour
power, so that total labour time remains the same but the share of
necessary labour time, i.e. the time in which the worker works ‘for
himself’, is reduced relatively and as a result the share of surplus
labour time increases, which in turn increases the rate of surplus
value. This second method is called relative surplus value. As
capitalism advances, the method of increasing surplus value by
relative surplus value becomes more prominent. Surplus value can be
increased in this way only when productivity increases, costs fall and
as a result the average price falls in the industries which produce the
goods necessary for the reproduction of the labour power of the
working class, i.e. the wage-product producing industries. When the
prices of wage-products fall, the value of the worker's labour power
also falls and the capitalist class can reduce his wages (even if this
reduction is not always reflected in the amount of rupees). Therefore,
the capitalist class always wants to reduce the value of labour power,
wants to control the prices of wage-products. It is a different matter
that due to its internal contradictions and the chaotic pace of the
capitalist economy, it is not necessary that it is always able to do so.
At the same time, the increase in the share of profit in the total newly
produced value is not in itself responsible for the decrease in the
average wages of workers and inflation. It is quite possible that in a
period of boom, the entire production increases, the amount and rate
of profit increases rapidly and the amount and rate of wages also
increase and despite this, the share of wages in the newly produced
value decreases relatively. The opposite of this is also possible. It is
also possible that production may be stagnant, the labour movement
may be strong and the workers may succeed in increasing the
quantity, rate and share of wages in the newly produced value through
their class struggle. The opposite is also possible. It is also possible
that production may be decreasing due to recession, but the capitalists
may succeed in increasing their rate of profit, quantity and share of
profit in the newly produced value. It is certain that if production
remains stable or decreases, then any increase in the share of profit in
the newly produced value will mean a fall in the rate, quantity and
share of wages in the newly produced value, and in case of increase in
market prices or their stability or a relatively slower rate of fall, this
will mean a fall in the average real income of the workers and
labourers and an increase in real inflation for them. Now we come to
the question of the fundamental reasons for the fluctuations in wages
because real inflation and real income cannot be assessed only on the
basis of market prices of goods and services but only on the basis of
their assessment with the average wage rate. Market prices revolve
around production prices in the long run and production prices are
ultimately determined by the social labour used in the production of
goods and services. (Read the editorial of the current issue to
understand the concept of production prices)
Wages are not always equal to labour power. An ‘iron law of wages’
was born in capitalist political economy which believed that wages are
always determined at the level at which the worker can just barely
reproduce his labour power. But Marx pointed out that the working
class does not remain indifferent or passive towards its exploitation
but struggles against it. Along with this, according to the phases of the
capitalist economy, i.e. boom, recession and stagnation, in other
words according to the movement of the average rate of profit, the
investment rates change, the employment rate changes and there is a
difference in the demand and supply of labour power. Along with this,
the wage rate fluctuates and it can go above or below the value of
labour power. These are the two main factors due to whose combined
effect the average wage rate keeps fluctuating. But wages cannot go up
or down any amount by these factors. In other words, the fluctuations
in the average wage rate due to these factors are within certain limits.
What are those limits? Let us understand.
We saw above that capitalism as a historical trend reduces the social
value of all commodities including labour power. We also saw that the
rate of real inflation is determined by the relationship between wages
and the market prices of commodities. And we also saw that due to the
chaotic pace of the capitalist economy and the profiteering of the
capitalist class, during times of economic crisis and external shocks
like an epidemic or war, inflation rises very rapidly and the real wage
rate of the working class also falls drastically. Finally, we also saw that
wages can go above or below the value of labour power depending on
the specific phase of capital accumulation (boom, recession,
stagnation) as well as due to the impact of the class struggle of the
working class. But as a historical trend, wages keep hovering around
the value of labour power. The capitalist class always tries to keep
wages at the lowest possible level in order to increase its rate of profit,
while the working class always fights to increase wages through its
organised economic struggles. It is a struggle between the working
class and the capitalist class to increase their share in the newly
produced value. In the immediate term, it is this struggle that
determines the relative relationship between wages and profit. But in
general, wages can never remain below the value of labour power in
the long term. If the working class as a class is unable to reproduce its
labour power, it will not be able to continue to produce value and
surplus value and profits will not be generated for the capitalist class.
This is why the capitalist state, representing the long-term common
class interests of the capitalist class, set the length of the working day
and a minimum wage in England and in many countries in the
nineteenth century because individual capitalists are by their very
nature incapable of thinking about the long-term common class
interests of the capitalist class. The cutthroat competition of the
market does not allow them to do so. This essential condition of the
physical reproduction of labour power is the physical limit below
which the average wage rate cannot remain for long.
But even the working class cannot raise wages infinitely through its
class struggle. If the average wage rate rises to such an extent that it
reduces the average rate of profit of the capitalist class to such an
extent that the process of capital accumulation itself comes to a
standstill, then the capitalist class will go on an ‘investment strike’,
that is, it will reduce its investment. When he reduces his investment,
the rate of employment falls, the reserve army of unemployed workers
increases relative to the active army of employed workers, the supply
of labour power increases compared to its demand and the average
wage rate goes back down, so that the process of capital accumulation
can be restored smoothly. That is, the process of capital accumulation
and its continuity determine the upper limit of the increase in the
average wage rate.
Therefore, the average wage rate moves within these two limits in the
capitalist system. The reason for this movement is the changing
equation of demand and supply of labour power due to the specific
phase of capitalist accumulation i.e. boom, recession or stagnation
and the ongoing class struggle between the working class and the
capitalist class to increase their share in the newly produced value.
But the fluctuations in the average wage rate due to both these factors
occur only within the above two limits. In sum, it is the entire dynamic
of capital accumulation that sets the limits to the fluctuations in wages
that can occur in a capitalist system. Hence the struggle for wages is
certainly essential for the working class but it is not in itself the final
frontier of the working class struggle. The political goal of the working
class is not to increase wages or to make wages equal for all but to
abolish the wage system itself.
It is essential for us to make the ongoing struggle for wage increase a
part of the struggle for this political goal, otherwise it will be an
economic struggle which will cut us off from our political goal, deprive
us of the ability to think politically and raise political questions, i.e.,
the question of state power. This is what the capitalist class wants. The
trade unions which depoliticize the working class by giving an
economic form to the struggle for the economic demands of the
working class are capitalist trade unions which want to keep the entire
activity of the working class confined within the capitalist boundaries.
In India, all parliamentary leftist electoral parties like CPI(M), CPI,
CPI(ML) Liberation etc. and the central trade unions of other
capitalist parties like CITU, AITUC, INTUC and AICCTU do the same
thing.
- Abhinav
Revolutionary Workers’ Education
Series
2. Some basic things that are important to understand – 1
The things we are discussing in the present article and its next part to be
published in the next issue can be considered as a discussion on some
elements of historical materialism, i.e. scientific materialist understanding
of history. After understanding these, the entire economic analysis of
capitalist society will be much easier for you and you will be able to
understand its complex concepts more easily. Therefore, we are causing
you some inconvenience in the beginning, but we are sure that this
inconvenience will prove to be quite useful for you.
Production, productive forces, production relations and the economic
basis of society
The economic base of a society, that is, the entire structure of its
economic relations, is what constitutes an entire political and ideological
structure.
The bottom line is that the type of economic base of the society, i.e. the
type of production relations in it, on the basis of that a political and
ideological superstructure is formed in the society. Accordingly, the entire
structure of political power i.e. law, constitution, police, parliament,
assemblies etc. are established, similarly the education system, cultural
system and the framework of all ideologies are built. This superstructure
ultimately serves the economic base, but not every moment, but
ultimately it serves the economic base.
That is, there is a contradiction between the economic base and the
superstructure itself.
The struggle between the working class and the capitalist class begins
with the economic and material demands of the workers, but as this
struggle develops, the working class first understands that the owner is
responsible for its exploitation and not the machines, then understands
that its enemy is not one owner but the entire class of owners, i.e. the
capitalist class, then understands that the capitalist class continues its
exploitation, oppression and suppression through its scepter, i.e. the
state power. As this consciousness of the working class develops, it
becomes aware of its political interests and goals and understands that
the real question is of the state power and as long as the state power of
the capitalist class remains in place, no matter how many militant
economic struggles it fights, its exploitation will not end. With the
development of this political consciousness, the working class organizes
and organizes itself as a political class, i.e. the proletariat class, through
its own struggles. That is, as a class whose aim is to destroy the
capitalist state power and establish its own state power. The highest
form of this political consciousness is to understand the need for a party,
i.e. the party is the development of political consciousness. Only through
the formation of the vanguard party of the proletariat by the advanced
elements of the proletariat does the proletariat reach the highest stage of
organizing itself as a political class to destroy the state power of the
capitalist class and only through that it liberates the vast working
population, i.e. the poor and middle class farmers, the lower middle
class, small commodity producers etc. from the political and ideological
influence of the capitalist class and brings them under its ideological and
political leadership. Only when the proletariat reaches a position to
provide leadership to the entire working masses under the leadership of
its party, can it reach a position to overthrow the capitalist class and its
state power. If it is unable to do so, the capitalist class succeeds in
maintaining its ideological and political dominance among the masses
and thus in maintaining its state power. Only by establishing its state
power can the proletariat resolve the conflict between the productive
forces and production relations present in the economic base, i.e., it can
establish collective property by eliminating the private property relations
that have become a fetter on the development of society, can unblock
the progressive development of productive forces, can organize
production and distribution on the scale of the country in a planned
manner, not according to the private profits of a handful of looters and
the anarchic forces of the market, but according to social needs, can end
exploitation and can move forward towards the creation of a new social
order. In capitalist society, this political contradiction between the
proletariat and the capitalist class, i.e., political class struggle, is the
main contradiction, which is the immediate driving force of society and
takes the development of society from one stage to another. In fact, in
every society, political class struggle is the primary motivating factor that
gives impetus to society in the immediate future. That is why Marx called
class struggle the ‘immediate driving force’ of society and Mao called it
the ‘main contradiction’. Only its solution makes the solution of the
fundamental contradiction i.e. the contradiction inherent in the economic
base as well as all other contradictions possible. In the words of Lenin,
class struggle is the key link.
In short, the conflict of the economic base i.e. the conflict between
productive forces and production relations cannot be resolved on its
own, but the revolutionary transformation of the economic base can
begin only through political class struggle and the consequent
revolutionary transformation of the state power i.e. the political
superstructure.
This is an example of the conflict between the economic base and the
superstructure which continues in various forms even after the
revolution. Because despite the revolutionary transformation of the
political superstructure and the subsequent beginning of the
revolutionary transformation of the economic base, the old ideological
superstructure is not immediately destroyed, nor is the revolutionary
transformation of the economic base complete merely by the legal
abolition of private property.
In the next issue, in the second part of this article, we will understand
some basic things in the process of development of human knowledge
and after that we will move forward towards the revolutionary scientific
economic analysis of capitalist society
- Abhinav.
Revolutionary Workers’ Education
Series
3. Some basic things that are important to understand – 2
The materialist view clearly states that thought does not exist
independent of or apart from matter. On the contrary, thought is a
property of an advanced stage of the evolution of matter, i.e., a
property of the brain. Before the brain arose, thought did not exist.
Physical reality exists independent of and outside consciousness, and
consciousness is a reflection or shadow (right or wrong, or partially
right or wrong) of this physical reality. For example, even if you have
never seen a lion, the existence of a lion is beyond question! A lion is
not created by your seeing it; rather, you see it because it exists and
thus your knowledge of it is created!
But the working class is not only materialist about knowledge, but also
dialectician. What does this mean?
This means that knowing and changing the world are interconnected.
Neither can the world be known without changing it, nor can it be
changed systematically without knowing it. Some people believe that
the world, that is, physical reality, has an existence independent of
thoughts, but it is not possible to know it because there is no way to
ensure whether our senses like eyes, nose, ears, tongue, skin etc. are
telling us the right thing about the world or not. Such people are called
agnostics (अज्ञेयवादी). They do not understand the unity of existence
and consciousness. ‘Agyeya’ means that which cannot be known. But
the philosophy of the working class opposes agnosticism and says that
the world can be known. The criterion for whether our knowledge
about the world is correct or not is also practice. An agnostic
philosopher asked: “My eyes are telling me that there is an apple in
front of me, but how can I be sure that it is an apple? How can I be
sure that my senses, that is, my eyes, are telling me the truth?” The
philosophy of the working class answered this: “Eat an apple and
change its shape, you will know whether it is an apple or not!” The
working class, unlike agnostics, believes that the world can be known.
But the working class also believes that the world is constantly in
motion and our senses have a limit to see it. Therefore, the working
class knows and believes that our knowledge is always incomplete,
relative, and constantly in motion. Therefore, there is no absolute
knowledge, except an endless series of relative knowledge. Agnostic
people break the relationship between the physical world and
knowledge about it, do not understand their unity.
At the same time, there are some people who consider the world to be
basically immutable. They believe that all changes in the world are
quantitative, that is, they occur in the form of increase or decrease in
things or only in the form of change in their position. Since there is no
qualitative change in matter, the world is not dynamic for them and
the knowledge about it is also not dynamic. Such people are called
metaphysical. That is, those people who do not believe in qualitative
change and movement and see some external power behind
quantitative change, not the internal contradiction present within
things.
But the truth is that everything in the world is created from its
internal contradiction and due to that internal contradiction it is
constantly in motion. And similarly, the knowledge about everything
is also constantly in motion, not static. You cannot find any ultimate
absolute truth about anything and if there is any ultimate absolute
truth then it is only this that everything is constantly in motion and
man's knowledge about it is also constantly in motion.
Now let us return to our basic question: how does human knowledge
develop? As we said earlier, if we want to change something, it is
necessary to know and understand it. For example, if we want to
change the existing capitalist society based on the exploitation of the
working class, we will have to understand it. But the work of
understanding cannot be done by sitting in study rooms, although the
importance of study is also very fundamental in the process of
knowing. Later we will see why and how?
With participation in class struggle, the ruling class and the ruled class
develop their knowledge about society. Obviously, this knowledge has
a direct class character. The “knowledge” of the ruling class actually
serves to hide the truth, that is, it is ideological, because their interest
lies in protecting exploitation, oppression, injustice and inequality. On
the contrary, the knowledge of the working class about society
represents the truth because its interest lies in eliminating
exploitation, oppression, injustice and inequality and hence it is
scientific. Therefore, the proletariat class acquires true knowledge
about society only with the development of its knowledge through
class struggle. Only the proletariat could do this because it is deprived
of all means of production, is “free in a double sense” (i.e. free to sell
its labour power to any capitalist and free from the means of
production!), is engaged in advanced industrial production, is engaged
in large-scale social production and has the ability to transcend
narrow intellectual boundaries. It is the proletariat class whose
surplus labour is used by the capitalist class to make profit and this
profit is the basis of the capitalist class and capitalist society. But even
before the proletariat, the rebellion of the oppressed and exploited
classes against the exploiting and ruling classes and their class
struggle against them within the limits of their era and the nature of
their class have been the source of knowledge about society.
The proletariat class comes into existence with the first global and
most dynamic mode of production, i.e. capitalism and hence it is the
most revolutionary class in history because being deprived of all forms
of private property, it has a universality and it is only this class that
can lead the broad working masses in abolishing the system of private
property and establishing a more scientific system based on collective
property, i.e. socialism. But before that, the class struggle of slaves,
peasants, artisans and especially the revolutionary bourgeoisie in their
respective eras also developed knowledge within the limits of their
era. The proletariat class is the true heir of this entire knowledge and
it is only this class that can develop it further by negating its class
prejudices or narrow limits. Today, with the capitalist class becoming
the ruling and oppressive class, it has lost the revolutionary role that it
had till the time it was fighting feudalism as a ruled class. When it
itself became the ruling class, it itself became a repressive and
oppressive class and now it is no longer an agent of taking forward the
knowledge about society and about it, but has become a force that
maintains the status quo, i.e., takes history backwards, i.e., it has
become a reactionary force.
But in a capitalist society, the working class as a class and the entire
working class as a group cannot participate in scientific experiments
because in a capitalist society, the life of the common working
population is not such that it can participate in scientific experiments,
whether they are in the process of production, in class struggle, or in
scientific laboratories. In a capitalist society, scientific experiments
are either participated by capitalist and petty-bourgeois intellectuals
or the party of the working class. As far as capitalist intellectuals are
concerned, they serve the capitalist class and they also carry out
scientific experiments for the interests of the capitalist class and by
surviving on their crumbs. As far as petty-bourgeois and middle class
intellectuals are concerned, they are generally victims of
individualism. The strength of the working class is its collectivity. A
single worker has no power in a capitalist society and it is only
through his unity and organization that he can defeat the capitalist
class and its state power. But the life of an intellectual is such that he
feels that he does everything in his life on the basis of his personal
talent or his personal knowledge. Apparently, he achieves any
achievement or position in life on the basis of his personal ability. His
isolated life situation rarely gives him the ability to understand that
his ability, his knowledge and his talent are basically and primarily
created in the society and the labor of the working class is also at its
foundation. All the needs of his physical existence are also fulfilled by
the working class and the source of his knowledge is also social
behavior. Therefore, if such petty-bourgeoisie or middle-class
intellectuals accept Marxism even on paper, they have difficulty in
accepting the collectivity of the working class, accepting the discipline
of the organization and sacrificing their personal likes and dislikes in
view of the needs of the revolution.
- Abhinav