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Filtzer, Donald Arthur (1976) E.A.

Preobrazhensky and the theory of


expanded reproduction in the USSR during the period of primitive
socialist accumulation.PhD thesis.

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theses@gla.ac.uk

E. A.

PREOBRAZHENSKYAND THE THEORY OF EXPANDED REPRODUCTIu;


IN THE
SOCIALIST

USSR DURING THE PERIOD OF PRIMITIVE

Donald

Thesis

for

Submitted

Institute

of

Arthur

the

Degree

Filtzer

of

Soviet

and East

University

of

May 1976

ACCUMULATION

Doctor

European

Glasgow

of

Philosophy

Studies

CONTENTS

Summary

iv

Preface

Introduction:

Part

I:

Preobrazhensky's

Marxism

Schemes and the

Marx's
Reproduction
a Mixed Economy

Chapter

1:

Circulation

and Simple

Chapter

2:

Marx

on the

Reproduction

Part

I:

Appendix

Part

to

Chapter

3:

Simple

Chapter

4:

Expanded

Appendix

Chapter

Part

to

5:

Chapter

4:

The Expanded

Capital

7:

The Accumulation

Chapter

8:

Marx

Chapter

9:

The Accumulation
"Pure"
Capitalism

Under

on the

General

Under

141

Under

Concrete

Use of

Outlines

the

of

Capitalism

Prices

161

of
186

of

Capitalism

Concrete

Fixed

193

Capital

Reproduction

212

Capital

241

Fixed

of

Pure
of

Under

Expanded

Expanded Reproduction
Period
of Primitive

117

151

Reproduction

Chapter

10:

Reproduction

Reproduction

Reserves

Chapter

Fixed

of

The Application
Production

6:

IV:

83

Reproduction

Reproduction

Chapter

Part

of

Reproduction

Expanded

III:

Analysis

The Reproduction
of II(v+s);
Necessities
and Luxuries

Simple and Expanded


Capitalism

II:

15

Amortization

Fixed

Capital

Fund

272

Under
284

in the
Socialist
of

the

USSR During
Accumulation

Goods Famine

the

303

CONTENTS
(Contents)

Chapter

Chapter

Chapter

11:

12:

13:

The Circulation
and Reproduction
of
Individual
Components of the Product
Both Sectors
The Accumulation
of
Concrete
Capitalism
The Goods Famine

in

Fixed

Capital

the
in
337

Under
376

the

USSR

390

Conclusion

409

Bibliography

423

SUMMARY

Preobrazhensky
Evgeniy
Alekseyevich
Marxist
was one of the great
that
thinkers
of Bolsheviks
prepared
of the generation
and carried
out
Yet his
Revolution.
the October
work has remained
relatively
unexplorThose non-Marxist
accounts
of Preobrazhensky's
ed by Marxists.
writings
even where
activities,
well-intentioned,
and political
are hopeinadequate.
lessly
They grasp
the Marxist
he used
neither
categories
his
be understood
that
theories
economic
can only
nor the fact
within
theory
the context
and his
of his
work as a whole
of the transitional
society.
this
thesis
Introopens
a result
with
an extensive
and in-depth
into
duction
the nature
Marxism,
touching
of Preobrazhensky's
upon its
the role
philosophical
roots
and stressing
most important
of class
conin Preobrazhenzky's
theory
of the transition.
sciousness
The main body of the work deals
Preobrazhensky's
specifically
with
in the Soviet
during
theory
the period
of expanded
reproduction
system
We start
Marx's
primitive
socialist
of its
accumulation.
with
use of
his
the reproduction
theory
schemes,
and show their
connection
with
of
the circulation
the reproduction
of industrial
capital
and with
of speThen we use
cific
production
and social
relations
under
capitalism.
theory
Marx's
of the reproduction
simple
of fixed
capital
capitalunder
ist
to demonstrate
the system
the need for
within
reproduction
reserves
industrial
the two-sector
scheme of separate
and agriculand to derive
to
tural
that
Preobrazhensky
Further,
sectors
was to use.
we use this
introduce
the question
exchange
of
of the importance
of the material
as their
exchange
on
reproduction,
as well
specific
use values
under
the basis
of their
value.
theory
Next we analyze
of simple
and expand
upon Preobrazhensky's
Here we show that,
and expanded
reproduction
concrete
capitalism.
under
in department
I and II,
organic
given
compositions
of capital
unequal
there
for
to rise,
the organic
of capital
and the tendency
composition
is a tendency
This
towards
can
of means of production.
under-production
into
the orbit
be overcome
by drawing
the petty-commodity
of
sector
that
to make the necessary
sector
capitalist
exchange,
and impelling
in its
to
the capitalist
sector
so as to allow
adjustments
production
its
the peasant
disproportions
with
exchange
overcome
own internal
via
sector.
the exThen we open up an unexplored
economics,
area
of Marxist
from
that
Starting
a problem
off
panded
reproduction
of fixed
capital.
different
had touched
Preobrazhensky
we excontext,
upon in an entirely
the effects
that
the extended
turnover
capital
of fixed
period
amine
deficit
has upon expanded
to
of
It
a
chronic
rise
gives
reproduction:
to
After
solutions
possible
of
number
means of production.
a
exploring
is
the
the
find
the problem
that
solution
only
pure
capitalism
we
under
I.
transfer
from
department
II
to department
of capital
famine
findings
we
to the Soviet
In order
to apply
the above
goods
its
in
famine
detour
take
that
general
must first
goods
a
and examine
trace
in
large
Following
we
Preobrazhensky's
argument,
morphology.
part
the under-production
of
the inherent,
towards
tendencies
out
structural
it
overcome
the Soviet
cannot
means of production
which
system,
within
because
backwardness.
it
the economic
and
deprives
This
of its
of all
for
have
flexibility
that
anticipating
social
would
a socialist
economy
inherentthese
the
disproportions,
economy
and circumventing
and makes
ly weaker
to crisis
than
capitalist
and more prone
even the advanced
countries.
theory
of
From there
Marxist
the
to
we introduce
another
new aspect
by examining
of
expanded
reproduction,
the circulation
and reproduction
in
the
the individual
components
sectors
the
of
of all
product
annual
As

from
Preobrazhensky's
Although
off
we start
economy.
own treatincomplete.
topic,
this
It proves
the
sparse
and
was
ment of
necessary
detail
the circulation
to trace
of the individual
out in great
elements
from
the point
their
of view of both
reproduction
of expanded
quantitative
and their
material
exchange
exchange
as values
as particular
use
is between
division
Here the primary
those
values.
products
produced
in the private
turns
that
sectors--it
and state
out
no category
of exreproduction
can be reproduced
except
via a complex
panded
circuit
of
involving
departments
What is more,
all
of all
exchange
sectors.
under
involves
this
Soviet
between
exchange
conditions,
strict
proportionality
department
Any disequilibrium
beand all
each distinct
of the others.
in value
two departments,
tween
terms,
lead
either
or material
the
will
into
system
stagnation.
entire
findings
these
Finally,
to our discussion
we apply
of the expandWe trace
the expanded
of fixed
capital.
out
ed reproduction
reproducboth
tion
capital
under
of fixed
concrete
capitalism
and in the Soviet
that
Here we find
the conditions
dicof expanded
system.
reproduction
department
that
the peasant
I assumes
tate
sector's
an increasingly
larger
of the production
share
of the circulating
part
of the constant
in all
departments.
Yet this
the condicapital
condition
contradicts
famine
tions
that
of material
exchange
under
a goods
of the type
existUnion.
As with
of Preobrazhenvirtually
every
aspect
ed in the Soviet
long-standing
this
the validity
posisky's
analysis,
confirms
of his
both
from
tion
that,
an economic
and from
a political
point
of view,
in one country
Only massive
socialism
was impossible.
assismaterial
from
help
tance
the USSR out of
other
socialist
countries
could
pull
its
impasse.
intervention
Only
the political
proletarof the Western
iat
from
degeneration.
the Revolution
save
could
Soviet

PREFACE

This

thesis

foundations

cal

the

of

the

of

cally,

seemed to
their

explicit,

and their

possible.

We still

if

basic

connection

with

thinkers,

not

just

of

Marxism.

We hope

that

idity

of

with

the

character

In

any case,

dition
tion
Marx's

currents

with

the

embodied
invaluable

Union

with

its

Marxism

the

as we say,
of

twenties,

the

the

twentieth

writ-

century
the

of

thesis,

valdeals

which

any such
of

a fairly
of

International.
to

not

of

the

var-

Marx

of

Such a study,

while

not

merely

movement
have

and

beginning

conflict,

an appreciation

Trotskyist
could

Hegel,

Kant,

bastardization

and the

tra-

with

assessment

and came into

Preobra-

examina-

itself--starting

a critical

necessary

of

paper.

a particular

predecessors,

century
Second

study

thorough-going

Marxism

the

down onto

made it

actually

tell

will

contents

of

First,

arose,

simply

as

and exciting

some indication

table

the
plan

entire

as extensively

this

be

only

Marxism.

at

still

in

were made

original

of

of

it

time

Preobrazhensky's

most

all

least

at

way through

nineteenth

but

of

philosophical

that

dogmas of

in

but

out

case.

the

necessitate

his

in

Preobrazhensky,

be the

the

premises

drawn

Marx

evolution

end of

and,

could

that

and as a representative

the

the

they

two reasons.

philosophical

of

so rich

philosophical

original

would

and wending

ious

iet

our
for

own battles

Feuerbach,

of

of

Marxism

the

of

were

Introduction

glance

as a methodologist
within

writings

to

the

and politi-

economic

Preobrazhensky's

a quick

theoretically

econo-

At

own time,

in

Soviet

the

1920's.

be one of

to

methodologi-

the

of

we can give

of

was essentially

zhensky

his

appraisal

little

that

reader
This

this

this

show him

both

the

of

Preobrazhensky,

implications,

these

believe

1920's

the

Oppositions

and philosophical

appreciated

as a study

members,

Preobrazhensky's

us that

properly

in

leading

Trotskyist

political

ings

E. A.

of

works

the

who was one of

mist

intended

was originally

within

been undertaken

the

Sov-

within

-2-

the

bounds

of

a PhD thesis,

ing

is

in

philosophy

not
this

nored
but

Preobrazhensky's

between
tions

and political
The second

ly

did

finished

article

form

ed to

include

izma"

12 and

being

volume

1926.1

there

was

of

"Economic

of

the

Equilibrium

USSR, " which

latter

volume,

Soviet

agriculture,

policy

the

of

rudiments
marked,

carry

the

infer

from

of

were

of

Soviet

state,

socialist

"A

culture.,
from

chapter

words

"To

the

closing

be

Volume

the
go to

second,

final

portion

the

Capitalism

addition,

The

to

was
is,

that

an

first

of

of

continued"

at

their

passage

VKA 22 that

"devoted

close.

the

of

In

together

the

" all

first

three
we can

addition,
they

economic

VKA 17,

articles,

New Economics;

The

to
industry,

Soviet
and

these

The

II.

be

examination

System

the

Volume

of

time

heading

of

credit,

and

in

Nos.

this

of
some

and

section

in

printer

general

with

Sotsial-

historical

the

the

first

articles,

as VKA),

to

under

II

of

of

published

referred

exchange

together

The New

coming

economy,
of

I of

In

Preobrazhensky,

system

he intend-

did.

to

the

Volume

that

never

form

in

Predstavleniya

of

his

of

published

it

to

eventual-

publication

was a pair

most

Concrete

Soviet

the
the

comprise

that

material

of

(hereafter

articles,

assump-

Socialism"),

About

knowledge,

Under

according

analysis

concrete

Ideas

to

our

II
these

of

Preobrazhensky

three

of

as Part

with

of

philosophical

chapters

Kommunisticheskie

to

connection

the

of

Introduction,

our

Preobrazhensky

as drafts

ig-

a constant

the

After

New Economics,

by

best

a group

of

The first

were

The

of

the

nature

Akademii

promised
To

the

volumes

These

Volume

of

them.

Communist

and

13,1925.

behind

take

II.

Kommunisticheskoi

Vestnik

is

successive

("Socialist

and the

The New Economics,

we can only

what

draw

to

study.

in

train-

we have

say that

simply

lay

our

"Sotsialisticheskie

entitled

in

of

and as Volume

Economics

part

subject

work,

in

in

lies

reason

become the

major

that

tried

to

not

Not

ideas

economic

goals

is

contrary.
we have

thesis

this

throughout

This

proper.

To the

problem.

by someone whose academic

particularly

were

to

-3the

constitute
of

the

theoretical
of

regularities

ism and in

the

II,

economy

Soviet

the

of

presenting

both

reproduction,

expanded

particular

Volume

of

portion

under

modern

Union.

II

Volume

of

reproduction

data

provided

ures

of

in
by

Gosplan.

questions

that,

in

the

of

the

living

These

the

three

There
the

are

numerous

Preobrazhensky

In

reader.
left

are

in

of

the

cal,

the

most

academic

his

left

to

the

the

clearly

round

the

reader
political

intended.

the

In

the

This

way.

which

draw

the

log-

their

individual

theor-

conclusions

are

felt

certainly
political

of

the

exin

terms

As theoreti-

written.

to

tech-

pointing,

be explained

must

that,

by

conclusions

Once more,

reproduction
that

highly

surface

they

The New Economics.

the

to

political

in

commentary

form.

barest

by the

openly

inferences

the

and

be presupposed

were

mass of

examples,

to

he had done
out

involved.

the

which

have

of

of

on the

again

must

in

obvious

are

they

Preobrazhensky

cull

the

place,

pressures

analyses

a lot

to

the

only

elucidation

seemingly

first

the

numerical

particular

which

to

from

was so actively

presented

and leaves

free

methodologifigures

with

due to

in

up the

within

he was not
that

no doubt

conclusions

about

theoretical

purely

no way complete.

usually

many of

Fig-

"3

mode of

jumpy

the

concrete
Control

the

certain

illustrate

especially

are

out

upon

scheme

with

by

all,

Preobrazhensky

which

followed

pieces,

work

sparse

in

here

shortening

haste,

obvious

context

1926 and 1927,

in

are

above

to

The arguments,

draw

political

from

economy.

addition,

rarely

cept

Soviet

often

unstated.

nical,

we prefer

and the
is

of

algebraic

outlined

"touch

well

interests

rarely

points

as

misprints,

concluions,

etical

and,

themselves

arguments

ical

statistics

study,

in

"filling/the

of

we have

would

struggle

political

task

USSR that

articles

were written

the

up

Soviet
It

present-day

they

the

"

section

cal

take

to

was

capital-

The remainder

in
of

an analysis

it

schemes

Preobrazhensky

was
and
had

-4Even so,
turn

helps

also

They

acter.

lation

to

on the

one hand,

the

categories

on in

embarked

Volume

one part
the

use of

of

inevitable,
brazhensky

was himself

Preobrazhensky's
subsequent

was then

capitalist
Marx's

in

Marx).

which

of

over

time

department

must

in

the

a)the

of

represent
be analyzed

(which

the

of

an-

In this
body of

the

Marx had

which

lays

of

each

in

was the

of

in

go into
tendencies
from

one another.

scheme
The

reproduction
and prehe dropped
remains

capital

"adjusts"

II

procedure

capitalist

he.

he added

Second,
of

his

all
article

capitalist

some detail
in

for

this

department

expositional

place,

production.

expanded

composition

first

To Marx's

with:

other.

Preo-

First,

schemes.

worked

accumulation

separately

In

schemes
the

basis

the

arose

was almost

Marx's
In

oc-

Preobrazhensky's

over

This
of

conditions

with

distinct

pore

to

articles

new ground.

regularities

as we will

to

petty-commodity

organic

and b)that

these

of

treatment

Marx's

Marx

that

coexisting
that

that

straightforward.

more realistic

The problem,
these

than

a sector

define

production
assumptions

constant
that

to

historically

the

under

all

he added

capitalism

his

VKA 17--which

those

to

to

solutions.

entirely

alterations

two new departments

object

in
less

analysis--is

made two fundamental

for

in

that

breaking

argument

system,

more and more problems

and attempted

fact

in

similar

however,

schemes,

the

Soviet

other.

some length

Once we began

attention

given

re-

the

on the

emerging

and their

and application

discussion

our

one chapter.

our

quite

the

char-

Capital.

of

reproduction

demanded

that

a task

at

its

technical

for

out

within

an analysis,

demonstrate

we had planned

Originally
cupy

II

relations

such

was undertaking

work

in

which

reproduction

development

for

needed

works

and even

to

economic

social

proper

as we will

thesis,

of

unstable

these

abstract

attempt

regularities

and the

Preobrazhensky,

overtly

a rigorous

highly

the

to

coherence

their

represent

economy

alytical

a clear

explain

Soviet

this

is

there

employed

below,

to
by

was that

development,
Preobrazhensky

-5failed

to

do this

his

analysis

rises

runs

where
ital
of

in
of
into

accumulation,

in

In

have had to

radically

(in

apply

VKA 22)

Preobrazhensky's
the

latter's

the

state

they

did

tion

of

in

that

les

of

so in

But not

clear

where

times

failed
the

it

dencies

have

based

helped

him

of

clear.
was to

economy.
since

be applied
the

both

to

and

state

production;

yet

complicated

the

further

difficulty
on the

make the
his

applica-

principout

USSR would

connection
he at

argument,
that

results

we

construct-

economy worked

elucidate

the

are

Marx's,

entirely

not

certain

where

Soviet

Both

was the

the

reader

often

than

could

almost

the

introduced
the

further

There

in

has been that

capitalist

Preobrazhensky

circumstances

as long-term

brazhensky

did

to

peasant-industrial

a mixed

even notice

peculiar

from

them.

VKA 22 is

only

would
to

So once

to

to

cap-

rates

he was saying

conditionally.

and this

ways,

in

reproduction

economy

equal

examples

argument,

schemes

capital,
of

capital

obvious

make what

significantly

in

than

more complicated

only

of

Preobrazhensky

political

sectors

categories

argument

VKA 17.

change

of

different

Marx's
the

was far

differed

sectors

to

order

of

The end result

out.

reproduction

problem
categories

less

innovation

Marx's

and peasant

peasant

in

effects

numerical

Preobrazhensky's

rework

important

The second

is

things

new examples,

entirely

his

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NOTES TO PREFACE

1.

2.

E. A. Preobrazhensky,
(Oxford,
1965),
p.
Ibid,

p.

2.

The

The New Economics,

translated

by Brian

Pearce

2.

articles

from

Vestnik

Kommunisticheskoi

Akademii

are:

"Problema
Khozyaystvennogo
Ravnovesiya
Kapitalizme
pri Konkretnom
iv SovetskoiSisteme,
" ("The Problem of Economic Equilibrium
Under
Concrete
Capitalism
System"),
VKA, No. 17,
and in the Soviet
1926, pp. 35-76.
"Khozyaystvennoe
Kapitalizmei
Ravnovesie
Konkretnom
pri
SSSR" ("Economic
Equilibrium
Capitalism
Under Concrete
System of the USSR"), VKA, No. 18,1926,
pp. 63-84.
"Khozyaystvennoe
in the System of

Ravnovesie
v Sisteme
the USSR"), VKA, No.

SSSR" ("Economic
22, pp. 19-71.

v Sisteme
and in the

Equilibrium

in Nicolas
Spulber,
The last
has been partially
translated
of these
(Bloomington,
for
Growth
Foundations
Soviet
Economic
Strategy
of
Indiana
This
University
124-73.
Press,
1964),
translation,
pp.
from virtually
from being
inadequate
is highly
incomplete,
aside
had
translators
the
no sense of
every
simply
point
of view,
since
Preobrazhensky
the meaning
employed.
of the Marxist
categories

The terminology
mistranslations
useless.
All

the translators
abound, often

passages
cited
and D. A. Filtzer,
writings,
translated

from
eds.,
by

have used is quite


and
arbitrary,
whole passages practically
rendering

Ticktin
H.
from
H.
22
VKA 17,18,
are
and
Economic
Selected
E. A. Preobrazhensky,
by
Gaddy and to be published
Clifford

-14Paginations
Lane.
Allen
are for the Russian originals,
as obviousfor the English
ly none exist
translation.
Page numbers are also
translation
of VKA 22, wherever
given for the Spulber
the corresalso appear in that
passages
ponding
edition.
3.

VKA 22,

4.

The most

p.

71.

important

Bumazhnye
the Epoch

Den'gi
of the

Finansy
v Epokhu
the Dictatorship
Prichiny
in the

of

Preobrazhensky's
Proletarskoi
Dictatorship,

v Epokhu
Proletarian

Proletariata
Diktatury
of the Proletariat,

Padeniya
Kursa
Rate of
Exchange

monetary
Diktatury
Tiflis,

writings

are:

(Paper
Money
1921).

(Finance
in
Moscow,
1921).

(The Reasons
Nashego
Rublya
Moscow,
1922).
Our Ruble,

the

Epoch

for

the

("On
"0 Dvukh Spornykh
Voprosakh
Marksovoi
Teorii
Deneg"
in Marx's
Questions
in Arkhiv
Theory
tentious
of Money"),
(Moscow,
1930),
132-59.
i F. Engel'sa
pp.
Teoriya
Moscow,

Padaiushchei
1930).

Valiuty

(A Theory

of

Depreciating

in

of

Fall

Two ConK. Marksa

Currency,

Preobrazhensky
In addition
published
a number of other
articles,
lectures,
policy
a
and pamphlets
and edited
on Soviet
monetary
financial
(for which he provided
history
the involume on Russian
For a more detailed
list
troduction).
of titles,
see the
Bibliography.

-15INTRODUCTION
PREOBRAZHENSKY'S

is

It

truly

someone so active
twenties

it

is

the

conceptual

a prolific

striking,

is

was during

for

underpinning

the

theoretical

sources

ideas

economic

In Preobra-

major

secondary

and

Soviet

the

Marxists.

his

since

by most

cited

and thinker

writer

from

attention

even more

The New Economics,

work,
ing

so little

receive

case

such

as Preobrazhensky

politically

should

zhensky's

that

surprising

MARXISM

as providTrotskyist

the

of

is

Opposition,
in

role
46"),

the

at

the

as he/credited

same time

(which

1923 Opposition

and a place

second

to

only

political

up around the "Platform

grew
that

leading

the

with

in

Trotsky

of

the

of

Opposition

the

of

1926-27.1
As a result
knows

Preobrazhensky

books,

anthology,

is

which

the

of

Preobrazhensky's

only

theory

contribution

to

For

reasons

brazhensky

by utilizing

print.

work

been

of

the

have
Soviet

thought
will

from

these

one of

be properly
concepts

these
the

Spulber's

that

virtualportion

that

primarimany,

impressions
the

1920's

of

if

Preo-

and of

his

general.

become obvious,

we consider

in

transition

in

a major

examine

Kom-

Vestnik

has been

sources

their

received

in

in

by non-Marxists,

out

carried

is

It

to

in

exist

be available

to

his

of

currently

The effect

have

that

Marxist

used
2

two

published

article,

even pretended

was perhaps

and he can only

NEP To socialism,

Marxists,

Only

second-hand.

have

Marxist

Introduction,

From

of

scholars

brazhensky's

only

that

economists.

interested

less

22,1927),

now out

studies

by bourgeois
most

(No.

including

audience,

important

very

Akademii

ly

this

or
and

his

while

munisticheskoi

not

more

The New Economics

translation,

ly

English-speaking

the

accounts

understood

within

and categories.

the

thinkers

a Marxist
This

course

is

of

of
Preo-

inadequate.

wholly

Marxist

richest

in

we think,

his

framework
something

age,
and
that

-16-

make Preobrazhensky--or
translate

must

depth,

that

vitality,
Hence

ist

logical

interpretations

proletarian
was ended

taking

this
to

close

position

Erlich,

hadn't

been quite

surprise
in

been

analysis,
ideological

its

incompatibility

Marxism
tain
of

the

of

West.

that

It

pure

our

and genuine

is

with

of

the

himself

if

its

is

interesting
this

isolain

come very

of

is,

socialism
the

only

the

that

of

economy

view

development

should

as taking

industrialization

where

least
of

that

one country--that

The primary

"theory"

into

and that

view,

Such a point

at

strongly

political

if

sees

a Marx-

value

gives

socialism

of

this

is
sort

us some insight
in

into

one country

and

Marxism.

extreme

Richard

arrives

at
that

Day,

for

sympathies

Day considers

worked

construction

units,

it

that

to

example,

conditions,

and simple.

view,

genesis

other

national

that

he concluded

in

the

economics

The most

for

who share

Soviet

under

socialism

premise

isolated

persuasiveness,
Erlich.

survive

and others

bourgeois

since

problem

the

At

the

only
the

existed.

USSR was impossible

the

so under-industrialized.

us,

in

in

standpoint

possible

abstract,

a technical
of

the
accept

have

place

could

revolution

should

not

dictatorship

in

none

1927,

an

them of

was said.

having
in

is

strips

positions

a conthe

retain

what

Erlich,

end when,

socialism

via

implicitly

they

dead
of

adopting

to

given

was admitting

and logical
development

autonomous

tion

are

where

Alexander

Preobrazhensky

that

a theoretical

the

appear

contradictions

into

The result

question,

falsifies

actually

non-Marxist

to

theory.
in

To

i. e.,

poverty-stricken

ideas

the

emasculates

the

categories,

Marxist

of

seem straightforward.

would

implies

too

simply

and as such

divergent

wildly

is

bourgeois

and subtlety

interpretation
their

into

ideas

that

complexity,

how well-intentioned.

no matter

any Marxist--comprehensible

their

framework

ceptual

do,

can possibly

no non-Marxist

whose feigned

Trotsky

a conclusion
Preobrazhensky

have

given

precisely

familiarity
his

ideas

opposite

had made some sort

with
a certo
of

that

-17-

tacit

to

accommodation

he then

Such interpretations,

both

his

This

approach

in

textual

gone over

brazhensky.
of

Second,

a tendency

this

of

a political

any particulate
they

ideas

premises

theory

done

that

and actions
and/or

of

such

a very

built

such

on the

sprung

the

would

them,

actually

not

validity
like

Preo-

non-Marxists
of

the

socialism,

1920's.

Against
the

comprehend
Left

except

type

of

Before

first
their

the

was and
examining

ideas

the
and ac-

as well

whether
goals

as part

society,

establish

premises,

and assess
allow

will

the

USSR.

the

evaluate

from

it

socialism

behind

can be a

This

what

we must

premises

then

we can

actions

in

thinkers

and the

that

in

properly

of

at

(and many Marxist)

particular

conception

not--be

towards

worked

create

have

they

someone

non-Marxist

and others

have

authors

selected

construction

to

applied.

we can engage

that

propensity

impossible

their

of

would

Having

tions.
the

context

would--and

is

to

of

in

were

itself

an analysis

from

theories

wrong,

challenge

controversy

Trotsky,

struggle
the

and within

goals

it

that

argue

are

with

Preobra-

various

and of

the

odds

they

we must

with

industrialization

treat

inadequately

in

the

counter

ubiquitous

Preobrazhensky,

of

how it

almost

the

about

we would

ideas

we must

is

that

writings

in

all

information.

of

First,

industrialization

equating

facts

been

at

one level

certain

but

exercise,

categories

At

1928.

are

which

material

have

in

economic

the

pieces

go further.

bourgeois

employing

that

they

essential

necessary

We must

suffice.

have

other

and often

useful

of

of

expense

that

or

to

goals

to

and showing

his

two ways.

by referring

been misinterpreted,
the

in

can be countered

refutations

allegedly

and the

methodology

general

They

common.

thesi!

one country--a

capitulation

and divorce

as an economist

strictly

zhensky

in

thing

in

socialism

how much they

no matter

one major

share

each other,

of

Preobrazhensky's

"explain"

to

uses

"theory"

the

to

such
be

achieved.
This

approach

necessarily

leads

us to

try

and reconstruct

exactly

as

-18Preobrazhensky's

what
of

who has written

tacitly

terms

the

accepted

(at

have

They

this.

of

No one that

was.

Preobrazhensky

about

done

Deutscher--has

socialism

of

concept

least

in

Marxist

all,

reference

we know

English)--not

even

and non-Marxist
by

created

the

alike,

non-Marxists

and

than

other

nothing

tion

of

into

its

the

this

that

Introduction

to

make only

the

moment we would

be content

views

on the

of

how they

evolved

to

erence

the

transition.

If

zhensky,

Trotsky

Marxist

since

more

intricate
in

veloped
to

reinforce

ety,

I.

course

class

main

body

it
of

this

of

Marxism

an indisputable

fact

Union
Marxist

witnessed

the

twenties

thought,

a virtual

as politics

the

that
rebirth

saw a flowering
such

the

Following

not

just

with

very

theory.
the

over-

some of

the
de-

serve
its

appears

the
In

traditional

but

the

this

in

following

Marxist

and economics,

inside

entirunder

Revolution

Bolshevik

in

Left

easily

it

the

of

Preobra-

the

give

guise

decade

of

joint

we reject

political

or

theory
that

to

otherwise

and
ref-

Preobrazhensky

that

that

Union

particular
his

deals

theories

For

tendency

important

thesis--which

intellectual

in

who came to

interpretation

economistic

with

become clear

will

in

Preobrazhen-

Soviet

the

played

twenties--could

mid-to-late

of

philosophical

economic

The Recrudescence

Revolution

it

then

direction.

twenties,

particularly

what

is

the

of

consciousness

and no matter

It

a presenta-

and we propose

that

in

society

a much larger

We feel

the

is

some indication

give

many Bolsheviks

and narrowly
the

to

task,
in

start

socialist

the

within

the

view,

in

and the

movement.

is

we get

and an investigation

thought

a modest

we can do that,

fit

Opposition,

emerging

that

role

for

called

be a momentous

would

the

sky's

about

foundations.

philosophical

We believe

Preobrazhensky's

of

who wrote

Preobrazhensky

of

What is

and one-sided.

totality

an economist

The version

economics.

technicist

therefore

is

Preobrazhensky

treated

consistently

also

Bolshevik
the

Soviet

realms
in

literature

of

-19(a sphere

and
burst

was by no means

would

be more

be able

to

is

Marxism

cation,

the

years

practice

of

should

the

existing
do
People/not

achievement

feet

their

And so it

was only

had posed

anew problems

Marxists

The existing

were

would

conceptual

to

respond
apparatus

had more than

adequately

movement--was

simply

inoperative.

of
with

act

be expected

that

once

to

these

problems

of

the

Second

to
It

order

They

revolution

the

could

Europe
entire
in
day.

the

their

the

Bolshe-

and social

trans-

new ideas.

with

International--which

reformist
not

The

changes

and hands.

of

corresponded

the

altered

now on the

phil-

stultifi-

much of

and decisive

Revolution

fabric

of

of

awakening.

seized

fundamentally

it

movement.

with

that

to
we are

that

decades
of

reflex

for

here,

kind

this

Europe

pretend

events,

after

why,

mass upsurges

social

act

We do not

out-

presence

had as its

human knowledge

experience

following

capitalist

as well.

formation,

and the

workers'

simply

explain

suddenly

immediately
the

to

difficult

Revolution,

Bolshevik

heads

it

of

its

Western

intellectual

these

creative

(where

which

itself.

field

this

Throughout

theory

a summary of

one specific

Nor

osophy.

vik

even

with

concerned

in

give

that

of

Yet

Union

a process

a new currency,

gained

Soviet

the

understandable).

development

further

the

to

confined

immediately

ideas

Marxist

science.

overlooked)

sadly

often

cope

practice

of

that

the

tasks

at

with

hand.
inseparable

Two,
previous
theory

have

would
in

succeed
tempts

to

within

the

USSR.

intellectual
io

Gramsci.

especially

these
They

came from

in

Although
the

work
there

evolution

if

revolutionary

not,

Western
Georg

of

were
of

to

did

problems

be explained;

theory
the

definite

their

How was the

philosophers.

socialist

a world

and political
7

it

supplant

establishing
tackle

Marxist

of
to

arose

questions

ossification

for

ideas

order?
as it

and what
movement

The most
turned

out,

Europe,

primarily

Lukcs,

Karl

was to

decisive

at-

from
come
through

Korsch,

differences

between

in

to

response

new

the

the

and Antonthem,
deadening

-20Stalinism

hand of
ly

ficiently

distinct

from

that

we feel

it,

rounded
They

were

certainly
their

of

novelty
"system"

or

Marx's

ly

In

Theory

the

have,

in

his

debt

view,

essentials

of

haps

the

Lucio

there

among the

initial

three

their

ist;

Sweezy a Maoist;

liberal

emigre.

mains

so important.

sky,
put
were

field

to

Hook open-

Both

in

these

his
men

systematizing
thinkers

whose wor]

and Gramsci,

Korsch,

per-

been

Marxists--has

of

coherent

was what

For

not

form

although

they
their

by countless

politics

the

the

was even more

Hook has become a violent


the

least

premises

of

archetype

shared

in

among them,

anti-commun-

the

ex-Marxist-now.

common that

achievements
other

and approach

content
this

we mentioned,

and Kolakowski
it

in

differences

philosophers

Yet

and Luxemburg
in

by their

Sweezy

1942.8

among British

crucial

followers.

later

of

the

fairly

existed

true

in

least

Paul

of

by the

Sidney

towards

Lukcs,

aspects

influenced

Of more modern

of

effect

vital

abandoned

as did

contributions

methodology.

profound

been

as quotation-

Colletti.
If

Marx's

not

the

of

in

published

The

new historical

the

philosopher

and Korsch,

made important

important--at

most

American

Development,

the

shows

Lukcs

to

to Marx,

long

sur-

school.

tradition.

profoundly

were

the

to

had

what

any new philosophical

response

as rediscoverers
that

and from

its

of

back

went

thinkers

thirties

early

in

was suf-

them as a coherent

developed

they

Marx

but

Other

possessors

fact

in

to

referring

that

achievements

our

clearly

sole

they

Capitalist

of

the

hagiographers,

expressed

the

that

movement.

work.

in

that

philosophy
before

broad-

they

movement,

Marxist

had gone

what

safe

redefined

theoretical

official

of

was not

work

but
or

mongers

not

radically

conditions,

most

Marxist
in

a tendency

crystallized

speaking

international

the

upon

were

far

men and women,


these

and assumptions

was and resurpassed


Trot-

Lenin,

men systematized
upon

which

and

others

operate.

There

is

an interesting

unanimity

with

which

virtually

all

of

these

-21identified

individuals
gations,
Marxism
of

had gained

that

them quite

official

done by the

to

distill

First,
of
that

is

there

such

emphasized

theory

scientific

influence

an "objective"
on the

to

the

or

side

Marx's

due to

certain,

the

influence

hand with

the

false

on the

between

external

world,

its

books),
the

of

attempt

Marxism

theory
theory

highly

selectively

late

of
battle

nineteenth

that

this

same

one hand,

man, on the

and

perceives,

man passively

which

the

against

dichotomy

of
sense,

that

and which
since

this

the

each other
themselves
but

in

man's

human beings

society
in

the

possibly

between

relationship

direct

order

to

ensure

to

stimulus

of

preserving

had

Lukcs
was not

on Feuerbach-Hook's

two

im-

direct

statement

Marx

consciousness

and his

practi-

most

must
their

the

into

enter

definite

subsistence
not

as a species--continuation
terms

nor

section

crucial

Marx

with

(which

The German ideology

was the
is

Gramsci,

Korsch,

neither
of

We can start

theories?

entirety--including

In any

with

these

of

place

manuscript

1930's,

activity.

logical

of

reflection/cognition

the

Hand in

remarkable

full

the

made about

tinuation

is

in

published

lations

formulation

to

had established

in

put

It

access

cal

to

adequate-

other.

himself.

portant

arguments,

rather

active

under

an attack

nature,

What to

until

by Engels)

went

is

on the

(largely

science.

reflection

the

has been

This

positive

as Bern-

within

their

Our concern

All

" such

Marxism

of

separately.

the

opposition

statements

"renegades,

open

recapitulate

10

emphasis

prevalence

positivist

century

or

International.

resuscitate.

the

and their

gained

to

wish

form,

concise

Second

the

investi-

their

of

positivist-deterministic

degeneration

the

of

object

as the

the

themselves.

so much to

knowledge

beneath

collectively

in

did

they

under

roots

authors

out,

currency

We do not

as expressed

ly

that

the

movement.

either

termed

cut

correctly

and found

stein,

they

what

specifically

as the

problems

similar

social

simply

structures

re-

and conin

a biothrough

-22these

which

finds

activity

and his

his

is

is

There

ly

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People
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-23-

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ular direction.
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11
in
ways.
various
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This

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-24infrastructure.

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Setting
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-25it
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13

entirety.

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commodity
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-26halucination.

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The German Ideology.

relations
in

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14

life.

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thus

of

consciousness

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concrete

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capitalist

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direct

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ideology.

The hitherto
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relations
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relations...
and
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independent
division
bound
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to individuals.
can be expressexistence
That these general
ed in language
only in the form of concepts.
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ideas and concepts
forces
are looked upon as mysterious
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the real
of which
necessary
relations,
result
of the fact
15
independent
have acquired
they are the expression,
existence.
The particular--and

mystified--ideas

that

people

have

about

capitalist

-26asociety
society.

If

by social

activity

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conclusions

Political
times

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activity

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view

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ously

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fect
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political
education

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-27economic,

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their

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As we have
Marxism

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17

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16

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-28One aspect

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exists

We can never
abstract

and which

out

very

discern

that

which

immediately

rend-

imperfect.
has been

mention

the

subject

more conventional

of

much debate
philosophy.

within

modern

Kolakowski's

-29-

the

that

thing-in-itself

that

sion,

is

nature

activity

within

basically

Gramsci

mind.
but

the

of

seems to
less

to

subject

reality

and define
Although

can give
he would
is

only

have

have posed

the

our

prac-

a certain

intended:

is

all

Kolakowski
confu-

He might

we make it

reality

that

through

to

that

conclude

we think

rise

what

environment;

us to

and to

once we accepted

18

it.

we doubt

that

existed

we encounter

formulation

moreover,

as implying

even

irrelevant,

what

his

conceptualization

our

problem

and against

correct,

one which,

be taken

the

was simply

in

exists

tical
is

deny

was to

solution

be through

to

a construct
in

question

the

of

terms,

similar

ambiguity:

What are phenomena?


Are they something
in and
objective,
existing
for themselves,
in
or are they qualities
which man has isolated
interests
(the construction
consequence
of his practical
of his
interests
(the necessity
economic life)
and his scientific
to disin the world and to describe
things,
cover an order
and classify
to mediated
a necessity
which is itself
connected
and future
pracinterests).
tical
Accepting
is nothing
the affirmation
that
our knowledge
of things
is that
than
that
other
ourselves,
our needs
and interests,
our
knowledge
is superstructure
(or non-definitive
is
it
philosophy),
difficult
in terms
beyond
to think
this
not
of something
real
knowledge--not
in the metaphysical
sense of a "noumenon",
an "unknown God or an "unknowable",
but in the concrete
sense of a "relignorance
ative"
of reality,
which
will
of something
still
unknown,
however
be known one day when the "physical"
inand intellectual
is,
that
the technistruments
of mankind
are more perfect,
when,
in a proghave been changed
cal and social
of mankind
conditions
We are then
direction.
prediction
ressive
making
an historical
into
in an act of thought
the
that
which
projects
consists
simply
future
has taken
to that
a :process
of development
which
similar
19
from
the past
today.
place
until

There

is

outside
ever,
"real"
apart

no denial
our

is

the
This,

its

world

completely

as soon

our

of

primieval

we think,

is

of
the

or

world

The crucial

purity

observations,

point

it.

as we begin

well

to

our

must

only

valid

point,

fact
it

that

of

meaning

but

in

for
reality,
that

exists

matter

how-

seems to us,
about

and of

that

Matter

vanish.

certainly

enough,

apprehension

the

of

make any statements

and has no meaning

uninteresting

starting

"real"

the

perceptions

that

from

of

itself

is

this
It

human beings.
and nothing
can be given

exists

to

is

more.
the

oft-

-30-

that

countered

of

" is
the

the

from

in

herent

the

at

it.

and using

the

through
they
latter
from

other

and give
"iron

it

the

ore. "

If

and treated

pieces

any name,

been unknown--in
only

a social

properties

of

What,

that

are

reposited

in

say,

The ordering

as scientific

the
sense

gave

have

they

what

would

the

it

up

concept

of

work

the

mineral

legitimately

quite

as their

of

"iron

ore"

not

have

existed.

once were

it,

discerned

the

with

ore"

discover

how to

And so long

properties

finding

became "iron

containing

rocks

that

no more than

endowsocial
have

would
It
rocks

was
their

ore.

then,

ment are very

decipher

of

that

entity

had already

they

in-

not

deny

had to relate

they
they

"

The

man's

only

that

could

all:

limitations

Men had to

uncovered

"jewelry.

say,

matter

The

Marx's

know is

the

antedated

we associate

they

ornamental

human activity

no.

that

men had simply

remained

could

function

social

long

total-

to

No one would

properties,

then

only

of

The physical

this

knowledge

of

point

of

history.

but

"20

faithful

we do not

utilization.

various

them as trinkets,

ed them with
function

level

world,

concepts.

quite

a product

as iron

social

its

environment;

in

real

affirm-

" as "a product...

into

what

discovery.

its

another
its

is

Marx

as a "concrete

world

is

where
the

of

fundamental

most

point

to

of

out

head"

which

but

recognize

at

the

knowable;

matter,

prior

test

with
the

of

process

had to

the

any given

But

Grundrisse,

and comprehending,

quoted,

perhaps

came to

we eventually

the

and conception

potentially

"existed"

ore

we just

nature

human knowledge

thinking

observation

Gramsci

always

outside

of

stresses
is

universe

of

to

way we can know that

only

as "a product

formulation,

iron

existence

working-up

passage

Introduction

the

"autonomous

ed the

ity,

in

passage

cited

nature,

laws?
only

to

exist

be unveiled

and inter-relation

much a product
"laws,

Do they

" for

of

undergo

human activity,

by objective
of

human enquiry,

example,

of

outside

the

objects

which
such

enquiry?

is

profound

of

our

why what
change.

We would
environwe know
It

-31is

"nature"

not

in

nature,

the

been

inaccessible

newer

relations

is

to

world,

products

analytical

place;

order

of

entities.

Yet

how is

it

than

an account

and of

the

working

it

surplus

appear

rather

Against

activity

the

or-

of

that

that

we

of

as the

express

notion
different

this

use

the

is

sees
basic

the

tangible

more

material

is

then

"stolen"

from

the
cate-

derive

to

more

of

social
is

categories

relations,

a direct

where

capitulation
and quantities

as machines
that

relation

lost;

other,

picture
of

social
is

is

relations

conceptual

It

created

as an analytical

naturalization

social

and mater-

this

category

capital

concrete

be anything

social

of

logical

the

mere description.

could

value

things.

which

of

it

surplus

as crystallized

than

which

fetishization

the

to

seen as something

particular

standpoint,

of

abstract

they

analysis

question

becomes

again

us a richer

afford

form
this

to

the

attributes

as though

how does

case,

economy

of

ability

that

the

by which

hand,

properties,

from

under

expresses

economics,

torically-specific

categories

technique

The importance

a consequence

money,

is

value

relations

From another

of

in

we employ

other

The entire

once

the

being.

bourgeois

of

on the

is

movement

of

categories

to

forms

nature,

this

see how political

goes

latter

if

to

complex

the

reflections

simple

still

knowledge

are

not

had

that

short,

that

naturalistic

Science

conceptually

and with

itself

the

21

property

class.

that

gory

hard

is

In

within

discover

and categories

developed?

theory
in

instance,

ial,

of

fixed,

irrelevant.

for

If,

And he will

particular

very

conception

categories

becomes

world

categories

were physical
take

the

of

The positivist
to

the

new relationships

future.

the

human action

of

it.

within

undertake

in

The concepts
of

complex

previously.

and associations

out

the

man uncovers

which

"discovery"

to

make sense
but

but

changing,
of

process

process.

a social

der

is

that

defines

an his-

society.

Rubin,

among others,

production

relations

argued

that

"economic

among people

and the

-32functions

social
of
they
of

These

things.
are

inherent,

a definite
into

enter

social
certain

do not

reflect

social

environment.

the

Preobrazhensky,
in
the

common from
best

the

clarification

to

correspond

which

functions
not

forms

or

in

them,

things

environment,

the

or

have

a social

as such,

but

namely

things

production

relations

properties

of

with

things

but

in

because

character
things

which

are

through

which

people

These

each other.
the

forms

social-economic

properties

of

parts

forms

the

"22
with
point

whom Rubin
of

of

view

the

role

of

seems to
method,

of

have

shared

delivered

what

in

Marxist

categories

a great
is

deal

probably

analysis:

What we call
the categories
of political
economy are the logicalideal
descriptions
ly pure,
of the real
relations
of production,
exchange,
and distribution
which take shape on the basis of comUnder this
modity-capitalist
production.
economic system we have,
if the expression
may be used, congealed
groups of people
engaged
in the process
of production
and distribution,
as they are formed
on the basis
of spontaneous
self-regulation
of the economy by the
law of value;
individual
the fluidity
composition,
with all
of their
these groups are constantly
reproduced
state
of capat each fresh
italist
development,
forming
the definite
types of relations
of
descriptions
The scientific
production
and distribution.
of these
(and not of things
types of relations
to people
to things
of people
to things),
or people
and commodity-capon the basis
of commodity
italist
by Marx the categories
production,
of political
are called
describe,
the real
therefore,
economy; these categories
adequately
but in
in the sphere of everyday
life,
relations
under capitalism
in their
these relations
science
pure
are reproduced
abstractly,
forms.
is not the
Rent, as a category
of capitalist
economics,
tenant
real values
which the capitalist
pays to the owner of the
land,
but the distributive
between tenant
and owner which
relation
from
the regular
the
guarantees
surplus
value
pumping of part
of
Wages and surplus
one to the other.
value are the essence of the
between workers
relations
and capof production
and distribution
italist.
is the most general
the
political
of
category
commodity
..
economy, characterizing
as a whole the type of production-relations
bebetween people which is under examination
as one of relations
independent
tween separate
up into
connected
commodity-producers,
a single
economic whole by a system of market relations...
from the exploited
Behind the stream of things
flow,
say,
which
...
from the capitalists
to the capitalists,
to the bankers
workers
from one branch of production
to another,
or the landowners,
which
are bought and sold on the market
and so on,
and then consumed,
fail
they [Soviet
to see the constancy
students]
of the groups
often
from whom and to whom this
of people
movement goes on, that constancy of the production-re]+eons between men under the sytem of
commodity
economy which is p: cisely
the subject
of political
This mental materialization
economy.
which are
of human relations
in real
life
leads,
likewise
also outwardly
to an
materialized

-33incorrect
in our own economy.
conception
of many relations
Here,
behind the movement of material
too,
values
which in natura
are
the same as under capitalism
and which often
move along lines
which
"accumulation,
" "rent"),
behind
outwardly
are the same (wages,
the identity
(the same techof the relation
to nature
of people
"the same" workers),
the changes which have taken place in
nique,
23
production-relations
are not seen.
We have
terpretation
Soviet
iet

Preobrazhensky

quoted
of

economy

analytical
stands

by the

but

would

activity,

detail

much greater

existence

it.

up without

it

entire

is

on this

theory

of

theory,
of

two historically

of

below,

his

that

by the

not

hold

because

Preobrazhensky's

falls.

or

conflict

not

length

such

categories

economy was governed

lator,

at

distinct

We will

when we discuss

his

Sov-

economic

regu-

laws

theory

of

this

clarify
of

the
the

that

a single

in-

economic
in

point

class

consciousness.
Bolsheviks

Most

economy as a science
italist
it

society,

formed

which

during

this
proper

have vanished

from

from

the

political
of
to

this

ensue

and was almost

drawing

from

a profound
point

of

view,

historical

its

Preo-

opponents.

Bolshevik
this

Yet

categories

Now, this

by his

cap-

scene.

undergo

logically
not

object,

economic

would

maintstream
in

alone

the

that

but

the

historical

the

political

its

all,

transition.

by Preobrazhensky,
against

capitalism

after

economy

period

appear

end of

on

economists
out

premise

its

to

conclusion.
For

Preobrazhensky
had to

cific.

They

social

relations

that

by a particular
Though
Marxist,
able

exist;

of

was arrayed

question

the

with
to

followed

would

was held

brazhensky

cease

basis

as we say,

premise,

would

have

the

transformation
which,

that

would

seem to

would

agreed

to

its
the

be,

economic

for

they

were

mode of
this

all

analysis

certainly
of

the

mental

insofar

historically

speof

representations

as they

were

structured

production.

proposition

converse

were

transient

were

categories

the

might

seem fairly

was not.
Soviet

For

to

uncontroversial
if

economy were

the
in

applic-

categories

a process

of

-34that

transformation,

in

had employed

Marx
the

level

then

it

automatically

were

at

work

of

the

within
to

do

in

no

longer

focus

both

the

existence

theory

of

his

out

of

In

terms

of

two

primitive

It

of

then

attempted
economy

could

struggle,

necessarily

de-

categories

representations

of

were

specific

latter

the

grant

the

was

analytical

to

Preob-

words,

other

be

only

which

impossible

was

activity

accumulation,

that
ideal

the

human

fact

In

society,

principles

political

this

regulators.

premise

a socialist

of

categories

that

attained

Preobrazhensky

as

intra-party

the

had not

different

two

structure

socialist

and

with-

24

former.

development

the

with

economy,

of

relations.

the

associate

shown,

the

Soviet

transient

conceding

yet

least

those

represented

capitalism,

at

be

that

methodological

social

purely

the

could

during

historically

types

it

the

to

that

determining

New Economics,

controversy

upon

of

we would

If

society.

by

pended

analysis

were

applied

of

his

no longer

followed

which

razhensky's

they

crystallization

The

explained

is,

his

of

theory

things

obviously

went
that

the

other

two regulators

economy.

Secondly,
of
al,

that

at

work

not

the

that

of

use

categories

Preobrazhensky's
of

his

sciousness.
ical

that

interesting

basis

of

and of

the

to

was able

treatment

appreciation
Within

primacy

first

this

method

derive

in no

would

in

abstraction

law of

the

Soviet

understanding

philosophical
of

was

inseparable.

are

strands

his

the

within

place,

two theoretical

the

Preobrazhensky

that

categories

the

abstraction/

analytical

genersocial-

primitive

25

accumulation.

cation

In

the

of

economy

of

point.

on the

Preobrazhensky

the

within

transformation

was only

basis

was on the

the

fact

the
it

Marx's

is

This

way negate

ist

were

to determine

able

It

way around.

that

his

the

of
general

he gave
in

of

almost

to

the

every

economic

it

also

organization
one of

of

content

active

method

categories

his

is

but

Marx's

theory

of

the

analyt-

in
up
showed
of

human labor.

economic

writings,

one indi-

It

is

whether

con-

-35they

dealt

ope,

his

starting

point

how human labor


if

nothing

it

have

Marxists

by society

control

in

that

supposes

When dealing
tion

that

tionary

is

exist
the

of

is

society--in

or
such

case

fundamentally

embedded

in

for

persistence

the

Soviet
relations

manifestations
categories

their
Union.

Only

in

they
those

the

of

capitalism--which

society

particular

in

academic.

the

conscious

will

formation

If

to

This,

legacies

that

complicasocialist
post-revolu-

as was the
the

can tell

however,
very

postof

view

their

relacan be

they

there

with

case

concrete

us which

relations--are

rela-

and find

relations

of

division

production
away--or

whither

the

least,

be deprived

specific

also

them.

and social

socialist.

can either

prenew

be abortive--at

production

we must
social

the

upheaval.

examination

its

This

further

embryonic

production

question

the

qualitatively

the

necessity

the

both

appropriate

and reproduction,

a detailed

of

expressing

of

reified

overcome

in

ends.

out

we have

social

basis

their

which

soil

working

a society

to

was

or

of

particular

The capitalist

have

is,

that

of

will

matter.

will

entails

and this

process

theory

them.

consciousness

fundamental

call

the

society
basis,

society

socialism

we cannot
end of

towards

the

explain,

interest

and utilization

period

Eur-

Transition

power

fetishism,

commodity

Soviet

relations

in

already

further

the

tion

are

without

material

more

social

to

capitalist

tions

these

transition

labor,

not

transition

His

descriptive

socialism

socialist

the

with

unless

is,

tions

process

and the

consciousness

that

this

relations

social

and labor

production

Eeans of

Economic

change

distribution

the

over

was to

that

Western

relations.

was not

the

in

and then

a revolutionary.

of

held

always

define,

social

goes,

Theory

fascism

of

production.

society

dictum

as Marx's

rise

first

to

of

was also

Soviet

of

the

or

within

a theory

was not

Preobrazhensky's

III.

of

was organized

relations

The point,

Union

was always

Preobrazhensky

But
social

Soviet

the

with

produc-

way these

as analytical
tending.

-36is

It

in

this

industrialization.

of

ble

guaranteed

during

capitalism

ism.

Material

the

wealth

and nothing

for

tims

that
the

of

more than

It

made the

development

socialist

Soviet

In the
proletariat
the

meant

conscious

had to

act

manage its

awakening
of

the

example,

both

that

own affairs,

of

Soviet

the
the

that

working

Union's

class

successfully
the

following

sources
ist

overcome
manner:

population

around

collective

state

we would

this

and would

would

group

production.

must

of

a class

conscious

had to

mathave

still
the

until

and
had

party

sufficient

would

be

Trotsky

latter
to

sophistication

a bureaucratized

expect

the

argue,

political
by virtue

impossible
isolation.
the

Soviet
from

inheritances

it

vic-

acquisition

the

and political
that

the

socialism.

twenties

party

not

view.

offvr-

both

interests

sector

this

themselves

that

was made virtually

burdensome

a)The

relations

the

had concluded

By doing

absolutely.

production

its

of

had been

there

we could

wealth,

possi-

necessary.

and political

backwardness

By 1927 Preobrazhensky

early

proletariat's

something

not

social-

members of

and education

country

strength

And without

and the

The problem

party.

held

building

absence

very

Even if

numerical

for

but

even by the

industrialize
of

are

industrialization
the

to

Industrialization

possible,
the

vestiges

make these

and other

education

however,

Union,

was that

the

Trotsky

over

develop-

path

Marxists,

all

prerequisite

socialist

faced

the

do.

to

party

of

as guardian

had acquired

like

material

of

to

wealth

smooth

techniques

propaganda.

become bureaucratized.

already
erial

the

decisions

Preobrazhensky

developed

the

of

the

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Union

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-36a-

b)The

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entire

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of

bourgeois

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bureaucracy

26

Preobra-

Although

working
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capitalist

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-37the

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The law of

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up

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of

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27

built

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socialist

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-38into

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28
law.
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In

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conflicting

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history

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29

country.

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-42first
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low

the

original

and a sudden

and a hierarchical

gradually

there

not

tremendous

cause--the

our

Europe

This

would

of

on hand,

pursue

and alleviated

wage system

for

to

Western

Union.

But

them.

a single

shared

bourgeois

state

these

turned

however,

relations

mean

were

sector

out

bourge-

were highly
in

tendencies

them were

residual.
with

people

the
pay

economistic

almost

exclusive

interpretation
attention

of
to

Preobra-

the

parts

-44-

lation

and the

here

the

the

gets

pushed

with

this

whole
to

is

to

state
in

us

the

His

of

profit,

ration

the

of

to

which

of

this

duction

in

movement
relations

but

which

elements

socialist
primitive

extent
the

that

bourgeois

the

the

state
in

of

state

legacies

the

of

the

discussed

by

Marx's

surplus

value,

become

as to

different

For

instance,

surplus

become the

by analyzing

consumer
degree

the

tendencies

define

properly

the

value

away and the

withered

wages,

the

pro-

economy.
the

state
the

sector

these

accumulation
was successful
state

gains
This

was what

meant

production,

expense

of

the

e. g.,

nonlaw

To the

explain.

further

indus-

logic

Preobrazhensky's
to

the

of

a certain

the

at

was intended
it

heights"

it

with

any-

naturally

were

"commanding

brought

economy.

within

ex-

workings

industry,

state

one could

that

of

the

society

emerging.

the

of

assessed

qualitatively

was only

socialized

extension

socialist

It

theory

internal

wages would

that

The fact

had been
the

of

product,

relations

bourgeois.

demanded

were

future

the

within

and finance

that

had already

categories

a methodological

modification
the

of

and so on.

Law of

as commodity,

essence

Union

"The

view--already

substantial

Soviet

the

dealt

transitional

the

As

view.

entitled

from

the

was his

product

surplus

chapter

Even

Preobrazhensky

Preobrazhensky

such

relations

become the

The property
thing

the

in

of

Preobrazhensky's

in

such

relations
that

accumu-

economies.

point

which

that

point

economy,

worker,

these

the

influenced

value

expressing

would

here

undergo

become simply

would

is

socialist

economic

fact

the

in

section--that

and social

commodity

production
of

primitive
and state

a narrow

length

starting

would

new categories
production

of

political

etc.,

private

understanding

It

previous

categories

try

to

law

the

economy.

the

Economy, " a chapter

society.
which

law of

spite

great

crucial

transitional

of
in

one side,

Soviet

the

standpoint

tent

question

at

the

from

treated

question

in

Value

is

to

between

conflict

subject

a result

of

devoted

The New Economics

of

erosion

increasing

of
cen-

-45tralization
in

ted

the

in

a capitalist

power

to

be sold

time

the

was

that

ferring

specifically

stratum

within

terial

basis

On the

surface

in

But

which

that

law of

but

class

racy.

In

relationship
ialists,

special-

of

between

elements

state

forms

problems.

They

by the

into
surplus
into

and were
Within

the

conflict
production

this

working

functionaries

embodied,

the

found
class

in

the

category

there

who came to

layer

exercise

re-

social

law of
not

the

of

just

bureauc-

particular

managers,

control

value

groups,

and the
in

were

potentially,

social

proletariat

and the

the
stood

capitalist

expression

the

least

at

between

conflict

with

between

as Pre-

described

categories

accumulation

proletariat

If,

the

then

ration,

these

of

status

bureaucracy--

consumer

over/a

if

or

product,

and

was only

value

dis-

production

direction

be reproduced.

surplus

of

norms

to
of

distribution.

stemmed from

a socialist

ma-

production.

of

bourgeois

and

category

re-

its

found

which
of

bourgeois

incentives

socialist

the

and

relationships
the

the

apparatus

in

implied
We are

sector.

at

was a non-proletarian

which

as

seen

forms

power

forces.

of

state

have

of

contradictory

and party

com-

for

need
for

not

appropriation

transitional

nascent

terms

of

characteristics
the

bourgeois

the

congealed

growing

conflict
the

also

yet

primitive

and

mainly

labor

could

these

capitalist

appeared

transformed

social

coherent

and the

the

the

highly

themselves

the

in

had not

the

of

privileges

probably

within

economy

distributive

wages was merely

lations

category

series

bourgeois

bureaucracy,

the

state

not

being

of

process

in

to

determined,

obrazhensky

the

be reflec-

would

The piece-wage,

and

even

distributive

these

market

of

a whole

relations

strong,

eventually--with

allowed

not,

social

these

relations
which

did

precisely

were

arrayed

as a commodity,

the

the

tribution

elimination

direction:

USSR bourgeois

the

the

of

etc.

so potentially

were

were

Preobrazhensky

What

of

this

against

and managers,

abolition

and gradual

tended

labor
ists

and the

attenuation

But

modity.
that

industry

of

over

specthe

-46means of

bureaucracy

the

that

and the

production

was genuinely

production

tion

and consequent

This

is

as its

legitimating
There

is

sector

ces.

The very

itself

on the

geois

elements
of

this

point

time

in

of
its

the

deprived

that

of
it

of

consciousness
racy

state

own interests,

perpetuation

for

value

consolida-

inherently

unstable.

was unable

to

property

basis

that
the

that

because

noting
that

of

appropthat

relations

"marxism"

adopting

within
that

of

sector's

that

they

could
in

any other

during
it

moment

working

act

class

internal
would

of

cohesion
have

Their

affairs.

allowed

and the
it

to

of

bourgeois

work

at

able

factors

any reason-

show,

arose

manage production

that

persistence

the

ensured
effectively

of
with

the

upon

largely

rudiments

bour-

strong

emphasized

brake

to

V/

peasantry--

as we shall

which

contest

i. e.,

proletariat

were

as a real

norms,

the

to

and,

same time

the

Preobrazhensky

was not

soon became one of


state

there

where

nurture

the

so the

even more

twenties

would

of

application

way.

Bourgeois

economy.
the

the

to

element,

weakness

be induced

not

consequen-

at

socialist

made the

relations

profound

production

the

upon the

bureaucracy

the

state

influences

its

of

allowed

production

a certain

fact

of

mean

a temporary

bourgeois

the

class--and

and again

the

to

was precisely

productivity

at

not

by establishing

only

of

the

and on the

tissue

because

level

but

bureaucracy

The working
into

enter

able

out

through

backwardness

only

of

than

it

For

could

progress

other

basis

social

cultural

that

the

worth

bourgeois

unavoidable.

noted

that

circumstances

norms

The law

nevertheless

fact

symmetry

is

proletariat.

and its

capable

does

ideology.

which

the

undermined

though
are

This

capitalists.

Union,

revolution

a certain

state

the

the

with

of

Soviet

reproduction,

and control

had survived

the

which,

by the

explained

power

riate

in

distribution.

of

was a new class

abolished

of

relations

system

socialist
the

bureauc-

power.

Preobrazhensky

had defined

the

production

relations

in

the

state

-47as being

economy
capitalist

a highly

and socialist

to

relations

were

rection.

He accorded

Union's

social

Class

his

development

eral

of

factors,

nomic

and of

the

writings,

while

defining

what

focus

on the

the

education
of

tures
due
forces
alist

not

to

of

the
only

in

the

culture

the

of

di-

socialist

it

without

Sov-

the

socialist

char-

position

type

state
to

would

and

the

state
of

the

level
tension

for

"the

enormous
trade

general

low

level

sector,

but

also

class

the

a dead

into

run

the

of
to

itself.

and

particular
hand,

other

consciousness
Soviet

the
to

need

rapidly
of

expansion

socialist

industrialization

end.

expendi-

non-productive
industrial

development
the

an

themselves

within

however,

latter,

the

that

this

and contradiction

gen-

The early

confined

and class

with

in

period.

on the

works,

by eco-

however,

was,

overcome

conflicted

cooperative

working

to

culture

essential

soon

less

just

population

this

of

more or

of

the

of

that

noted

not

There

The later

Without

limited

Industry

of

Preobrazhensky

course

be done

to

resources

Development

level

the

accumulate

1927 he complained

of

and

production

a socialist

a political

twenties

problem,

have

culture.

a socialist

In

into

particular.

over

the

source

material

and

in

these

on a truly

was always

in

class's

working

The need

provide

the

backwardness.

as a fundamental
system.

him

low cultural

emphasis

would

Soviet

in

class

working
in

of

led

industry

by the

shift

aspect

for

take

never

argue,

if

of

socialist

proletariat

process,

could

writings
state

but

outlining

this

primitive

resolved

by the

Consciousness,

important

to

conflicts

in

of

was necessary

acquisition

role

theory

cohabitation

contradictory.

Throughout
the

show what

relations

Culture,

III-b.

the

we would

was itself

that

His

and the

change

And this,

acter.

to

a central

consciousness

and untenable

elements.

was intended

accumulation

iet

contradictory

of

the

rudimentary

level

The

of

culture

are

apparatus...
productive
of
all

soci-

bodies

-48of

society

the

all

raising

the

material
for

this

conclusion

in

the

1923

and

from

tant

this

topic

of

One of
its

his

of

a specific
investigations

havior,

primarily

forms

the

old

worked

norms
out

activists

per

se,

behavior

such

to

aspect
keep

in

much less

how individual
Morality,

of

the

of

to

socialist
it

a theory

of

consciousness
as a constituent

is

through

the

book

manual

on what
In

not

a theory

how the

individual

is

breaks

of

ideas

of

content,
and

The content

their

be-

of

specificity

or

construction.

that

class

society,

as a popular

to

previous

of

does so before

but

general

written

a socialist

was written
clarify

their

proletariat

class,

on

early

and norms

morality

historical

the

his

Like

inadequacy

analyzing

ruling

a society.
It

mind

of

capitalism

them to

enable

of

and their

appropriate

practical.

a critical
we should

of

questions

impor-

Norms is

and his

writings

the

namely

direction

the

overthrowing

create

highly

the

expression,

new norms

to

struggle
fore

into
from

In

transience.

problem,

more

and Class

book was also

this

appeared

statement

society.

theories,

books

two

33

make.

transitional

his

the

detailed

economic

and

which

is

latter

on Morality

about

the

economic

ideological

of

to

to

was

Behind

consciousness

Norms,

most

not

"32

in

in

rise

necessary

explicitly

the

means above

as well.

of

Class

the

contains

political

Marxist

these

Preobrazhensky's

approach

formulations

it

things

striking

most
and

Preobrazhensky

with

methodological

Of

respectively.
as

theory

stated

On Morality

is

the

of

A steady

class.

reasons

out

as that
society

proletariat

economic

had

and

culture

the

for

Soviet

of

working

the

of

same level

the

the

of

a well-worked

aspect,

consistency

tackle

level

but

reasons,

NEP To Socialism

1922

cultural

Preobrazhensky

that

From

to

living

of

stood

be drawn

level

cultural

social

culture

the

standard

only

to

Raising

class.

ruling

tends

always

even to

for

party

the

book

consciousness

acquires

part

of

in

its

was there-

knowledge

formed.
ideology

has

he considered

discussing
class

it

general,

obviously

or

-49has a determinate
It

a class.

is

fully

Classes,

in

is

morality

subordinate

and help

They

moral

values

poses

upon

religion
it

(to

the

religious

justify

its

it

did

ruling

role

in

If
class

act

production,

overall

an impossible

to

to

the

demands of
and in-

and intermingle

class,

the

ruling

while

the

freed

in

emerge

by,

completely

a system

never

the

daily

their

coherence

or which

these

necessarily

out

the

with

im-

latter

class

uses

masses

invoke

themselves

from

for

their

oppression.

This,

of

course,

ruling

not,

if

form,

opposition
was par-

its

to

its

the

Everything

objective
role

ruling
it

did

at

philosophy,

conform

to

demanded

constantly

its

historical

then

broadly

must

morality
to

literature,

art,

e. g.,

class

opposition

development,
position:

work

basis

the

in
or

of

as an ideological

ideological
of

domination.

which

course

their

movements.

utopian

morality

interests.
the

of

impose

to

principles

and domination,
not

and

regard

they

we see that

have

they

these

truths,

with

classes

dominant

the

and class

any other

the

that

their

class

correspond

influenced

wealth

that

extent

true

Like

is

formulated

their

the

struggle
that

Thus historically

same wealth

ticularly

ety's

from

inherited

In

subordinate

constantly

mystification)

this

etc.,

are

them.

to

the

able

place.

moral

interests,

class

class

principles
give

been

however,

class.

the

The problem

strength.
form.

pure

and moral

norms

have

ruling

of

as general

corresthat

or

first

the
always

and reinforce

complex,
too,

the

of

development

struggle

ternal

to

those

and the
class

classes

They

have

of

a crude

morality
in

have

classes

become extremely

assume either

particular,
needs

ruling

classes.

to

own interests

in

interests

and material

and articulated

its

classes

upon

with

conflict

that

of

way that

subordinate

of

conscious

this

Matters

life

interests

historically-determined

momentary,
it

however,

class

and ruling

historical

the

with

be wrong,

would

between

pondence
class

link

interests,
point

a given

find

class

would

would

contradict

its

class

that
to

its

in

soci-

itself

in

everything

-50its

that

system

of

morality

Preobrazhensky

obvious.

it

said
then

to

ought

do.

This

be

much should

adds:

Matters
the morality
stand otherwise
as regards
of the oppressed
in the sense that here it is difficult
to follow
class,
the connecbetween the morality
dominates
tion
that actually
the practice
of
This is because the
of the given class.
and the interests
a class
is not always conscious
interests;
oppressed
class
of its class
functioning
develand its
morality
at a given stage of the class's
interests.
to its
The opopment thus might not correspond
class
first
in-itself
(an sich),
takes shape as a class
class
pressed
is,
it occupies
that
to the
a definite
social
position
with regard
classes
of society;
and only then,
sometimes by means of a
other
formation
is it
that
takes many years,
of its
class
consciousness
for-itself
(fr
into
is,
into
that
transformed
a class
sich),
a
interests
of its
and which has consticlass which is conscious
itself
by other
tuted
of being surrounded
under the circumstances
has not conAnd here,
the oppressed
still
while
class
classes.
in this
itself
period
of its
existence
way, at a definite
stituted
it is led not by its
own inherent
class
norms, which answer its
interests,
but is under the thumb of the ruling
morality,
own class
is,
that
economically
of the morality
of the class
which dominates
34
and politically.
is always class morality;
in class
that morality
society
we
see
...
is led by the morality
to
but often
class,
of another
a class
ideology
it
is
the
of
and
with
subordinated,
economically
which
it
is
for
broken.
it
has
Thus
the
classes
oppressed
not yet
which
to seek their
of
class
norms not in the period
specific
necessary
the birth
steps of class
and not in the first
of these classes,
"forbut in the period
of the class
of the formation
struggle,
itself,
" in the period
with enemy classes,
conflict
of sharp class
in
the economy
finally
in
the
the
class
of
new
period
of
rule
and
35
of the country.
and politics
Class

any more than


economy

do not

norms

the

or

class

norms

ized

them to

help

fighting

force.

require

will

to

content,
divisions

bond

itself,

But

be sure;

into

as the

but
have

general

The New Economics

its

of

have

will

some of

its

class

they
been
social

will

norms.

to

liquidated
norms.

Preobrazhensky

These
remain

still

it,

into

may change

continues

proletariat
of

interests

exist

norms

and class

will
such

until

the

either

of

when it

power,
calls

power,

a system

evolved

for

struggle

of

seizure

regarding

society

as Preobrazhensky

though

some form

themselves

transformed
In

period

so long

revolution,
it

the

the

with

merely

The proletariat

state.

during

exist
bourgeois

of

vestiges

other

to

cease

norms

utila unified

after

the

as a class
change
time

their

as class

have been

36
elaborated

in

some detail

the

-51and historical

structural

and the

accumulation
the

former

case,

tion

within

"the

pores"

by building

demonstrated

their

ter's

these

the

plunder

of

political
of

petty

they

have

tion

of

within

infrastructure

reproducible
we see the
A socialist

stability

of

economy,

like

in
is

which

importance

It

must

advance

similar

will

with

the

both

an affirmation

the

sense

in

the

process

revolution

and
this

of

the

production

is

It

al-

preconditions

relations

on a

Its

makes

socialize

the

economy

relations

and political

to

be planned
and consciously

after

only

as a whole,

society
with
put
of

the

into

class

each

step

pro-

piecemiel,
insticlass

into
relations
Here

production.
in

of

construc-

working

production

element

for,

the

resources

economic

a mode of

conscious

forms

when the

future

socialist
it

accumulation

primitive

the

the

give

question

the

and one of

to

socialist

the

i. e.,

In this

before

and adapted

can organize

which

spontaneously.
anticipated

it

that

power

resour-

economy,

long

property
it.

of

an episode

revolution,

impossible

permit

establish-

accumulation

capital.

luxury.

altered

Capitalist

same way the

only

lat-

and made the

and reproduction.

proletarian

is

It

do not

simply

It

the

economical-

immediately

which

the

capitalist

no such

completely

capitalism.

has taken
real

been

is

It

In
accumula-

conquer

pre-capitalist

begins
"

could

a prior

"is

constancy

enjoys

after

In

superiority

attain

socialism.

tutions

it.

primitive

production

by merchant

and placing

The proletariat

craft

within

which

its

manufactories,

capitalism

after

it

only

of

primitive

accumulation.

It

society.

over

capitalist

where

perty

began

acquired

development,

generalizing

can begin

necessity

presupposed

under

ready-established

footing

of

production

goes on more rapidly

for

socialist

inevitable.

been

revolution

bourgeois

primitive

a handful

manufactories

capitalist

of

superiority

had also

ces which

between

feudal

of

destruction

eventual

ment of

period

capitalism

simply

ly

differences

transition

that
that
again
period.

will

not

evolve

along

the

way

practice.
consciousness.

The pro-

-52letariat

cannot

because

revolution,

that

ments

of

cific

practice

culture

stract

that

ically

out

can be willed

drew

zhensky

in

of

and behavior

on the

had to
tion

do and what
just

not

the

a cohesive

of

a working

countryside,
formed
which

in

the

was only

absence

in
of

from

in

brought

his

of

on the

even real

of

of
this

article,
bourgeois

the

of

it

with

not

but

becoming

culture

the

was a ques-

than

But

the

most

a minority
leav-

war,
from

the

consciousness

Soviet

Better,

among the

having

consciousness

We should
in

it

what

recruited

proletarian.

Fewer,

it

civil

a peasant

"medievalism"38

37

"human material"

a proletarian

struggle,

"Better

between

had been

was newly

work

Soviet

the

Rather

in

of

overthrow.

consciousness,

killed

preliminary

beginning

though

Here

ap-

transitional

habits

so-called

class

Preobra-

and certain

its

ab-

prior

the

which,

old

come organ-

presupposes

Russia.

which

the

of

accomplish.

been

class

verge

depth

last

the

must

accumulation

proletariat--which

was raw,

which

It

spe-

something

requires

correspondence

capitalist

any case--had

course

the

of

but

the

of

not

development,

economic

a mature

with

is

rudi-

the

primary

after

until

the

of

that

class

means to

wealth

sections

and which

underestimate
Lenin,

had the

class

class

lack

a chronic

physical

population

culture

the

The contrast

conception

working

as in

culture,

it

working

conscious

the

ing

of

the

of

be completed

had inherited

country

class

of
from

suffered

level
of

cannot

field

the

part

his

to

consciousness

a certain

capitalism,
In

but

Socialist

"accumulation"

adopted.

and socialist

economics

general.

culture

class.

new social

overthrow

who4e emergence

working

capitalist

to

simply

not

society

between

that

of

out
to

struggle

remains

production

by the

and control

planning

Union

of

its

the

after

Of course

capitalism

"consciously"

or

relations

of

grow up out

under

in

proletariat
fact

until

and developed.

be formed

the

culture

can only

be built

to

will

the

of

socialist

a culture

yet

Nevertheless,

regime.

under

a genuinely

such

have

that

relations

plies

create

society.

" lamented

working

not

class,

the
not

to

-53the

mention

remainder

a "pre-bourgeois

having

Lenin

went

first

think

very
defects

these

that

has not

overthrown,
of

because

deliberately,

"...

"

like

a better

this;

echoed

this
are

working

theme

at

few years
culture

both

state

draw

It

was not

to

lead

the

the

and their

an apt

masses

and economics,

would

have

to

have
This

existence

out

work

acquired

way of
the
out

that

under

the

the

In

the

would

know how.
culture

requir-

of

the

bourgeois

and the

sphere,

as in
the

A
of

industry.

revolution.

that
looking

to

transition

of

permanent

way of

pro-

lack

this

advancement

mass of

the

them.

against

proletariat

this

enemies

placed

he identified

of

Soviet

the

culture

struggle

semi-feudal
life.

They

our

Preobrazhensky

and which

theory

but

life,

social

the

"39

further

the

as achieved

do not

they

stage

would

have

the

world

at
those

of

pol-

population
what

socialism

they

capitalism.

is

why we emphasized

of

the

market,

its

the

educated.

of

cited,

proletariat

during

of

has been

In From NEP To socialism

behind

with

their

of

mind

I say culture

past.

required.

in

it

reached

developed

backward

bourgeoisie

semi-feudal

itics

should

analogy

Russian

but

the

to

yet

our

yet

is

already

impediment

in

culture,

home and abroad,

at

as we have

later,

not

disadvantage

a serious

as an actual

We could

far

bearing

regard

twenties.

to

lagged

we must

we can only

us,

that

references

"

that

although

sufficiently

for

the

which,

distant

our

not

have

throughout

which

Soviet

letariat

culture

repeated

class,

the

is

defects,

has not

the

of

apparatus
They

past,

matters

are

one.

and it

the

into

and parcel

its

serf

apparatus,

say wrteched,

combat

overcome,

these

workers...

build

ed for

there

the

build

to

They cannot

of

in

has become part

habits.

been

yet

state

or

as

-.i

in

rooted

has receded

that

a culture

what

are

culture

"Our

to

not

how to

carefully

bureaucratic

be supplanted.

to

Russia

and characterized

i. e.,

so deplorable,

"is

on,

population,

culture,

had still

" which

culture,

the

of

nor

in
the

the

previous

internal

section

disarray

of

that
the

it
state

was the
economy

-54that

incentives

and labor
level

of

tense

ed from

or how to

rate

capitalist

industry

the

the

of

velopment

of

there

had to

tives

towards

to

and relative
which
in

individual

their

efficiency

they

to

the

individual

industry

would

production

costs,

boosted

eventually

all

plant,

should
of
to

or

be fairly

themselves
work

would

plant

He advocated

worked.

addition

of

be paid

as part

of

change,

and the

of

of

in

this

move workers

a collective.
next

the

way.

work

incen-

begin

of

paying

with

the

industry

of

bonuses,
in

must
workers
output
in
where,

a section,

as they

economized

on

etc.

He hoped

that

The objective,

away from

Gradually
generation

that

workers

quality,

de-

the

maintained

collective

insofar

improved

output,

was to

clear,

all

a bonus

receive

wages would

or

with

piece-wage

line

even branch

a system

wage,

in

but

output,

the

to

was necessary

was

and facilitate

keeping

the

piece-

posed

individual

that

of

predominated

to

more in

work

away from

it

was the

trade

as he

a field

is

which

correspond

capitalist

was,

Preobrazhensky

He insisted

and that

people

Preobrazhensky

transition
ones.

the

inherit-

know how to

not

excellence--that

new wage forms


towards

of

And so it

"'

par

consciousness?

collective

did

a psychology

The question

new attitudes

be a gradual

according

in-

the

Preobrazhensky

application

mass of

'tomorrow.

NEP.
of

socialist

the

wage form

under

go as soon as possible
not

dilem-

this

of

"human material"

the

he noted,

with
and

evolution

emergence

side

came up against

War and the

while

by capitalism,

system--the

how would

Civil

manage enterprises,

'yesterday'

Soviet

situation

low

this

primarily

The other

between

connection

between

battle

40

distribution

of

From NEP To Socialism

Even communists,

"tainted

said,

wages in

of

and the

incentives.

labor

the

but

sector,

proletariat.

rectify

on the

capitalism

state

norms

country.

discussion

length

at

the

of

In his
dwelt

to

bourgeois

of

the

within

attempts

poverty

application

among the

culture

ma was that

in

the

necessitated

the

as it

a consciousness
very

workers

incentive
would

feel

-55-

responsible
but

to

the

the

individual

factory

or

to

not
entire

Preobrazhensky

it

incentives

be developed

have to

has been

in

shaped

commodity
of

organizing

labor

and the

labor,

even where

it

applicable

brought

socialist

and collective

in

the

future

to

the

to

individual

worker

for

fully

justified.

not

necessary

such

Yet

of

in

in

to

our

'collective

the

order

is

directly

to

the

raise

he attacked

the

payment
admoniinac-

the

new wages policy.


is

this

not

but

labor

of

productivity

from

harmful

indi-

of

His

even where

relations

we

of

work. "42

of

sort

pro-

a transition

instead

same passages
any

in

method

as certain

of

to

new stimuli

a combined

job

of

new sys-

intensified

are

as

piece-wage

on the

in

worker'

they

spirit

Undoubtedly,

to

an individual

the

"the

people

economy

go over

capitalist

in

of

heaven;

in

as a brake

act

stat-

human nature

of

that

and we can regard


the

from

re-education

to

implementing

copy

the

inequalities
There

favored

and cultural

economic

strategic

tle

capital

renewal)

the

workers

in

for

were,

and those
these

could

or

could

were

return

to

whose productivity
would

earn

Others

different

very
full

some

would

between

inequalities

that

noted
only

eliminate

class.

working

instance,

(those

enterprises

each of

the

Preobrazhensky

thinking

wage payments

of

within

importance,

his

of

stages

forms

remain.

economically

early

transitional

inherent

inevitably

special

copying

even

such
the

fel-

their

"

standpoint.

that

often

drop

technically.

In
in

leadership

the

"We undoubtedly

where

payment
of

were

only

the need

payment

of

to

The New Economics,

do not

education

elements

up against

vidual

tion

is

in

He warned

moment begin

tem of

tions

remuneration,

i. e.,

re-education

"

production.

a certain

as the

labor

economy,

may at

are

private

production,

prolonged

system

portion

of

argument

to

through

relations

collective

this

repeated

"socialist

that

branch

and their

41

low workers.

ing

job

more
had

productive,
output

was low.
incomes

with

lit-

Obviously
so long

as

-56norms

equal

were
between

equalities
ferent

needs,

was the

basic

and unskilled

the

incentives

labor

tors

the

of

overcome

economy--that

is,

the

Preobrazhensky

genuine

not

considered

entered

into

from
ducing

sexual

conduct

the

all
pass

gainst
al

their

sexual

just

political
questions:
and 2)the

the

of

that

society

out,
and

economic
the

have

would

secto

of

course

the

the

however,

concern
1)Social

to

that

of

the

the

its

out

once
social

educating

economic

individuals
not

that

introAs for

own patterns

question

of

of

the

would

cease

A-

to

personfamily
be of

importance

and rearing

and political

to

truths.

political

problem

of

was made
tended

people

the

be dictated
of

The matter

fact

per-

Preobra-

children.

he gave paramount
for

purely

problem

of

had

which

that

the

these

children,

relations,

were

and could

transition.

from

responsibility
question

work

dealing,

socialism.

relations

as universal

Thus

society.

for

upbringing

maintained

of

which

solve

by the

preferences

raising

aspects

which
In

Norms.

those

taste

of

would

was divorced

relations

sexual

family,

the

as sexual

struggle

could

society

to

and those

social

and

relations,
in

type

questions

personal

related

overall

such

between

such

education

and particularly

women.

the

Preobrazhensky

this

pointed

between

and Class

behavior

the

affect

more complicated,

off

in

as a whole

regard

on morality

consequences

provided

sexual

with

distinguish

to

that

collective

personal

skilled

wage payments

lay

solution

economy

personal

actually

were

outside,

in

of

political

zhensky

Preobrazhensky
of

there

course

between

proportionality

similar

about

be careful

and did

sonal

was very

questions

public

who had dif-

And of

division

in-

exist

poverty.

wrote

with

but

same,

methods

Their

them.

the

the

transitional

of

solve

in

to

continue

workers.

inequalities,

These

greater

basic

be paid

all,

of

its

one had to

of

would

single

attainment

The situation

he said,

inequality

to

and the

growth

versus

capacity

there

who would

married

workers.

beyond

went

workers

e. g.,

most

Likewise

applied.

to

two

children

liberation

of

-57Preobrazhensky
of

between

equality

and raising

in

communists

and bringing
socialist

of

generations
that

these

could
family

the

said,

the

with

be shared

is

This
here

posed
ize

education

If

and child

rearing,

until

time

such

in

line

But

in

did

not

the

quired

the

between

Union

of

free

qualitative
possible,
sufficient

this
to

resources
the

sexes
have

choice
break

bourgeois
not

wealth.

of

was
social

Preobrazhensky
children,

raising

must

of

to

the

until

behavior
the

taste"

because

it

and family

as under

capi-

non-politi-

essentially
not

pol-

relations

personal

could

their

organization.

function,

modes of

be possible

personal

Precisely

education,

social-

"personal

and social

happen.

a social

lose
of

to

he

between

relations

extent,

new types

dilemma

the

enough

wealthy

personal

and experimentation

and would
economic

were

been relegated

with

Union

forms

but

matter,

economic

retained

future

produce

responsibilities

as questions

socialize

new,

43

the

not

could

would

society,

Soviet

of

unit

a significant

of

to

fact,

this

these

society

continue

new forms

other

the

as

education

the

and such

the

had evolved

as society

What should

realm

terially

Soviet

have

talism.

a real

its

with

relations

cal

They would

character.

left

then
to

in

as wo-

society

of

order

fact,

in

fully

social

in

Given

household

the

least

at

exist,

women and men.

revealing.

men and women would,


itical

the

of

aspect

as a primary

Preobrazhensky

where

is

continue

between

equally

not

in,

Ideally

other

embryonic.

within

participate

system

educat-

so long

not

could

principle

of

who were
that

The problem
did

burden

obvious

be needed

would

remain

that

result

every

the

and social

major

reconstruction.

cadre.

would

quite

they

As in

resources

only

is

a comprehensive

socialist

the

women workers,

It

social

education

material

education

of

afford

of

upon

defend

must

responsibilities

could

household

up children.
forms

sharing

men.

the

task

to

enough

in

fall

than

to

the

communists

no circumstances

off

tied

men remained

that

sexes

children

worse

materially

be rich

the

Under

obligations.
ing

insisted

Once again

be.

was not
society

ma-

had ac-

-58Of all

the

examples

show how closely

the

consciousness

politically

important
life

the

of

Preobrazhensky

Here

undoubtedly

party

(again

and the

This

Left

clearly
at

first

the

government

missable

during

operated

under
to

resort

gle

and keep

to

drew

period

of
of

between

the

movement

intact.

ing"

the

working

And it

self.
working

what

of

would

was here,
that

class

legacy

class:

the

capitalism

happen

if

It

to

had to

matters

On the

When you had,

as he described,

statistics

no sense

of

one hand,

and tables

responsibility

what

might

have

than

begin.

for

economic
people

in

the

within

veracity

of
of

course,
their

and

of

the

pernici-

prognosis
sphere

is

of
most

be impossible.

apparatus
and simply
word,

it-

party

vanguard

this

state

strug-

"re-educat-

of

would

the

party

the

especially

efficiency

as a matter
the

drift

per-

class

working

Preobrazhensky's
to

which

been unavoidable

within

this

com-

members had

advance

and among the

do away with

less

is

which

a question

problem

party

continued

interesting.

ricating

to

was a serious

effort

fight

conduct

obviously

the

sur-

When the

order

more

the

hardly

members and

and that

within

ranks,

political

in

relations

inside

is

between

But

par-

inequalities

distinction

and lies

was far

party

as a more or

revolution,

the

of

in

one another

then

ruses

most

ailments

party

clandestinity

of

This

of

construction.

kinds

communists.

the

socialist

all

in

the

the

hand with

propensity

the

Norms).

within

work

deceive

before

two

attack

Preobrazhensky's

same time.

and

and Class

material

in

behavior

discussion

with

the

of

poverty,

and deception

this

officials

conditions

way to

hand

these,

the

On Morality

went

was now impermissable

then

ous

of

of

may have been necessary

in

to

writings

patterns
country's

associated

Preobrazhensky

mon practice,

the

early

Preobrazhensky's

lying

of

aspect

was preparing

As to
other

it

since

prising,

to

his

of

bureaucratism

emerging

and privileges.

to

out

went

The pervasiveness

ticular:

the

is

these

bourgeois

of
linked

were

from

cite

persistance

bourgeois

internal

we could

the

fabhaving
economy

-59not

could

simply
lead

to

ing

class.

the

institutionalized

the

center,

light

development

of

Related

the

to

the

the

levelling

had to

question

given
went

material

the

within

party,

to

sustain

the

of

a bureaucratic

to

lying

and corruption

of

from

start

party's

habits

and work-

Here

directly

and

level

plant

insight.

living,

to

again

impeding

and not

from

party

the

exceeded

what

cadre,

matermachfor

the

any analysis

of

cries

that

be achieved

some abstract
on the

of

and state

reactionary

actually

attack

important

most

the

was that

arguing

could

what

had far

and deception

he termed

make a strong

which

from

passes

party

only

development

subsequent

within

what

standards

conditions,

however,

on,

of

rejected
of

the

of

could

economy.

question

graft,

Preobrazhensky

blanket

that

bourgeois

worst

a socialist

inequality,

ine.

Union's

behavior

such

ranks

Preobrazhensky's

we can appreciate
of

the

within
Soviet

the

of

hand,

other

misinformation

was an instance

ial

On the

demoralization

profound
In

function.

in

the
He

principle.

growth

was called
and which

of

inequality

for
posed

by the
the

need

danger

degeneration.

Thus as regards
the situation
the working
as a whole
class
within
inequality
is in essence
this
protest
against
against
a protest
is
This
the fact
that
socialism
protest
grows
out of capitalism.
if
bourgeois
for
basis
lies
reactionary
at its
a petty
a striving
It
takes
equality
which
no account
of production.
of the needs
it
to the extent
that
on
a protest
can be progressive
represents
the part
of the growing
of the workers
socialist
consciousness
the residue
above
against
of capitalist
and is directed
relations
forms
in no way arise
those
out
all
against
of inequality
which
inequality
This
the
of the necessities
within
of production...
its
of
communist
of
certain
party
and the privileged
position
layers,
beyond
the bounds
physical
which
goes far
of the purely
from
important
exhaustion,
protection
of the party's
cadre
most
is extraordinarily
harmful
it
to
in that
to a struggle
can lead
these
to the ossification
of the
maintain
privileged
positions,
degenbureaucratic
the
tissue
the
to
to
of
party,
and
careerism,
[chinovnichee
layers.
eration
party
of certain
pererozhdenie]

This process
be all
the more dangerous
numbers
as increasing
will
the party
leading
of newly-trained
posts within
youth pour into
an opposition
and Soviet
apparatus
encounter
and as these forces
dictated
by the interests
that isinnoway
construction.
of socialist
It

is

worth

was the

fact

observing
that

these

that

what

youth

Preobrazhensky

who did

take

did

up party

not

warn

and state

against
jobs

here

44

-60not

would

socialist

of
ratic

be trained

necessarily

" but

construction,

structure

they

where

themselves

would

would

defend

to

and educated

enter

into

to

defend--a

learn

enjoy--and

interests

"the

a bureaucprivileg-

ed position.
The unifying
internal

was in

in

is
In

these

towards

compelled

development.

in

borrowed

were

encirclement,
just

it

internally

itself,
to
had/distribute

but

to

produce

strictly

did

produce

for

to

capitalist

ing
treat

this

tem,

in

because

political
ace,
defend

that

the

its

resources

some detail.
he was using

these

and fortify

inside
problems
a very

with
were

"descriptive"

would
basic

socialism,

but

party,

be overcome.
Marxist

His

principle

by its

worked

not
And

same time,
power

even where
largely

accord-

did

really

aspects

and analyz-

advocate

actually

at
aim,

sys-

hypothetical-

largely
to

not

Soviet

the

of

even be-

not

could

or-

which

markets.

individual

he assumed,

it

upon

industry

contradiction

accounts

of

and to

labor

he was speaking

production,

production

It
the

was

own paths

1924 Preobrazhensky

its

identified

the

At

organize

Up until

Because

its

as

sector
of

imposed

State

material

contradictory,

of

accordingly.

had to

his

satisfy

The state

organize

or

human need.
it

to

and international

peasant

as an integral

he had both

position

past

for

methods.

to

and abroad.

for

The German

socialization

incompatible

capitalist

itself

antagonism

although

ed them
ly,

both

in

section.

forced

were

its

process.

self-consciousness

was also

class

reconstruction

was clearly

greater

and
could

working

and again

organized

preceding

greater

from

time

Union

planning,

ways that

for

so it

it

Yet

labor

ganize

greater

towards

and ultimately

the

the

over

to

refer

the

and where

emphasized

Soviet

the

show in

to

control

they

problems

scarcity

way he is

by the

terms

the

family,

the

examples--wages,

of

of

as Marx

molded

we attempted

none

exercise

consciousness,

needs.

gin

that

to

these

all

an environment

a position

Ideology,

of

life--is

party

be resolved

Man's

thread

least

on the

we think,

within

the

surfwas to

party:

-61development

Socialist

and political

nomic
of

in

both

Union

prerequisites,

industry

and agriculture

the

"human material"

of

shaping

Soviet

the

is true
It
institution

had certain
the

specifically

fundamental
industrialization
but

and a simultaneous,
had to

that

carry

eco-

dependent,

this

out

re-

task.

that

in this
[the
matters
advanced
very
slowly
respect
because
of the collective
the triumph
wage system],
of the new form
of wages was closely
connected,
as we have already
in the level
said,
with
a growth
of culture
and consciousness
of
in a few years.
the working
How difclass
which
was not attained
ficult
in this
direction
the fact
was the advance
can be seen from
45
have
distribution.
that
Here it
we
still
not acieved
communist
is a question
in the expectathe human character
of transforming
tion
that
there
will
come to be done by instinct
what was formerly done by compulsion
or by the promise
of material
reward,
or
The
else
was an act of collective
enthusiasm
and self-scrifice.
by another,
replacement
of one generation
and a new system
of edbefore
the new collective
ucation,
was needed
man could
replace
The
the individualist
of the period
of commodity
production.
incentives
in the working
become dominant
moment when collective
individual
incentives,
is a triumphant
class,
as compared
with
importance
for
the
moment in the building
of socialism,
of no less
46
future
than
the socialization
of the instruments
of production.

Preobrazhensky

this

repeated

in

theme

On Morality

This revolution
in public
opinion,
is connected,
has
norms of behavior
in those
construction
of socialism
habits,
his instincts,
class
norms,
in
the beginning
of this
revolution
industry
Now
the
worker-organizer.
it deserves,
to acquire
the worker
47
ist
industry.
It

For

passages.
ist

movement

working

in

class

dangerous
ductive

time

with

factor.

of

the

counterposed

class)
working
to

in

the

Marxist

means of

"

introduces

of

and the
class)

consciousness.

the

so-called

production
"subjective
in

revolutionary

a specious

and the

historical

factors"

(i. e.,

Such formulations

perceive

the

as a so-

and politically

factors"

"objective

Trotsky"the

latter

the

politics.

the

these

equate

to

and to

from

of

and in

movement,

production,

and apart

This

importance

the

been a tendency

outside

between

forces-qua-means

working

the

as standing

dichotomy

overemphasize

has

Norms:

in
with which the revolution
The
a colossal
significance.
areas which concern
man, his
begins
this
construction
with
the psychology
of the average
begins
state
of the workers'
without
whom it is not social-

to

there

particular,

"subjective

called

ness

a long

forces"

productive

the

be difficult

would

and Class

(the

proof

presence
the

conscious-

Thus
beg the

being

questions

is
of

-61ahow this

way in

the

to

ship

means of

care

of

zhensky

of

between

relation

the

level

both

terminology

in

Preobrazhensky
the
of

working

on the
of

forces"

This
is

stages
is

passages

cited

and its
is

and the

but

way it

is

include

therefore

we have

Otherwise
through
to

which

force.
of

"

Quite

the

human labor

consciousness
true

under

is

that

contrary.

It

that

one of
socialism,

its

is

the

the

activity
means
as

productive
of

class

the

parti-

pass.

consciousness
class,

working

a productive

defining
where

is

means

and not

level

class

of

the

with

the

others),

the

that

struggle

class

maintain,

power,

to

of

of

his

of

activity

differentiating

and the

capitalism

the

and its

no way of

49

numerous

as an active,

proletariat

as some Maoists

say,

especially

the

to

relation

"development

the

about

to

productive

usage

synonimous

proletariat

Preobra-

the

his

between

not

Trotsky's

proletariat.

consciousness

are

statements,

development

the

addition

in

take

1927 article,

and in

organized

and its

the

(in

need

will

Although

and the

duality

forces

encompass
Any talk

embodiment
class

this

it

conception

defined

carefully

above

such

impeding

sense

denied

one hand,

48

and his

production

the

"a productive

as the

This

not

means of

of

different

consciousness

he elsewhere

the

history;

and events

and praxis.

The New Economics


class

class

legacy--although

an altogether

in

working

in

revolution

made a number

linguistic

consciousness.
cular

himself

a formal

agent.
must

of

the

development

of

moment

relation-

around

the

stage

any given

necessity

The productive

production,

the

contained

of

on the

other.

a passive

at

organized

excludes

political

explicitly

production,

defining

in

class

it

unfortunate

both

as embracing

Therefore,

same time

forces,

productive

forces

the

and its

place
is

class

consciousness

both

referred,

rudimentary

working

Trotsky

implicitly

first

the

the

the

a rather

own politics

in

attained

of

themselves.

has left

formed

actually

have

be "convinced"

the

in

agent

only

the

At

forces

productive

of

which

production.

as an active

which

is

consciousness

force,

characteristics.
development

of

class

-62consciousness

Socialism

state.
of

the

but

in

whole,

that

ously.

If

alone--no

the

development

terms

of

is,

the

the

lack

aspects

to

is

class's

relation

lective

man, " as Preobrazhensky


to

tion

socialism

Impossibility

The

III-c.

Although
on the
the
ful,

at

the

Soviet

least

by this

an almost

strict
dead

conditions.

itself

the

fore

caught

ture

with

of

then

in
the

foodstuffs

his

turned

resources
backward
a vicious

technical

from

sector

works

means to

and agriculture

transi-

position
and

consciousness
it

is

doubt-

he considered

that

en-

contradictions
from

these

him to

have

years
the

pose

not

Soviet

give

sustained

could
out

of

industry

socialism,
under

Sov-

itself

revolutionize
Yet

economy.

it

for

was impossible

this

could

the

lift

the

Marx's

precondition

agriculture.

could
for

caused

Industry

cirLte.

and raw materials

His

that

of

new col-

terms.

all,

after

"the

emerge,

1922-23,

was the

on showing

if

great,
working

existence,

specific

economic

industrialization

not

the

of

too
the

between

the

them that

is

and defended

of

writings

simultane-

Country

and social

solving

in

One

connection

to

Industry,

most

production;

upon

of

logicality

sufficient

without

insisted

economic

society

as a

flounder.

up and will

In

a view--

forces

a way that

does

Socialism

such

development

the

such

it,

inter-relationship.

that

iet

from

end primarily

Allowing
argument

man's

incapable

Union

his

of

judging

gendered

Union's

of

take

conversely,

in

called

and organic

basis

material

development

forces

if,

or

structured

Preobrazhensky

indissoluble

the

of

productive

exist

be bottled

will

of

productive

between

the

of

do not
them

workers'

could

the

of

correspondence

resources

material

the

and human resources

material
of

aim of

as consisting
Marxist

production

human and technical


the

be conceived

cannot

means of

only

be a consciously-articulated

must

agriculture

was

The economy was there-

its

agricul-

provide

not

semi-feudal

adequate

neither

accumulation

methods

in

the

state

-63sector
tion

nor

that

way out

for

the

Soviet
in

consciousness

Soviet

he considered

ed what

ively-increasing
ied
of

in

socialist

in

time

of

purchase

means of
for

automatically

producPreobra-

West was the

capitalist

the

was in
the

to

change--not

role

the

problems

central

basic

among the

between

conflict

only

of

socialist

socialist
which

would

detail

in
of

or

culture

and
within

Preobrazhensky

"automatic,

production

detail-

quantitat-

relations"
and "the

accumulation,
be retarded

extracts

contradictions

that
the

first

the

of

began

The New Economics

primitive

relations"

publication

analysis

reproduction
law of

the

almost

advanced

now occupied
It

society.

the

this

but

even in structure,

the

to

needed

Union.

1924,

The New Economics,

a size
followed

in

revolution

Beginning

class

of

The conclusion

abroad.

zhensky

of

fund

an export

by the

embodquality

demands of

accumulation.
The law of primitive
in so far as it regsocialist
accumulation,
the level
ulates
of wages in the state
economy, conceals
within
itself
As the law which expresses
an internal
contradiction.
all
increasing
the conscious
tendencies
towards
the tempo
and elemental
in collective
of expanded reproduction
state
economy, it is thereby the law of development
of socialist
relations
generproduction
But, on the other
hand, as the law of the restriction
ally
of
.
it restricts
the
wages in the interests
of socialist
accumulation
tempo of transformation
the consumers'
ration
of the
of wages into
in socialist
worker
ever since
economy, a transformation
which,
have been socialized,
is assisted
by a
the instruments
of labor
increase
in wages, because that
leads both to the divorce
rapid
of wages from the value
preof labor
power and to the material
for the development
condition
proletarian
culture.
of socialist,
from its
This internal
entirely
contradiction
of the law results
historically
The tendency
to overcome the
transitional
character.
is,
the quality
to intensify
the tendency
category
of wages, that
of production
with the tendenrelations,
contradiction
comes into
of the state
econocy to quantitative
extension
of the territory
form,
is,
in
that
their
my and its production
relations
present
in
low stage of development
production
relations
at an extremely
Already
their
the term "primitive
socialist
socialist
character.
dual nature
the adjecthis
of the law;
accumulation"
expresses
"socialist"
tive
comes into
with the noun "accumulacontradiction
but also in the
tion"
to which it is bound not only grammatically
SO
historical
real
process.
Just

after

"Economic

this,

Preobrazhensky

Equilibrium

in

the

was to
System

of

go even
the

further,

in

USSR" (VKA 22),

the

article,

which

we

-64have

lags

culture

to

ously

behind

the

further

led

to
is

a modern

footing,

the

development

the

economy,

development

while
of

de sac"

being

able

the

latter

is

it

is

only

itself

to

the

important

out

the
the

of

"51

keep

context
if

obvi-

the

of

the

pro-

economy

on

a prerequisite
there

clearly

circle

This

culture

same time

to

the

of

can become an obstac-

of

then

socialist

forces

reconstruct

at

within

of

forces.

level

culture,

break

not

productive

the

raising

Yet

could

the

growth

productive

for

had relevance

isolation--it

the

lag

the

socialist

way forward.

possible

of
this

of

If

a condition

development

the

"cul

of

"If

occasions:

an impasse.

letariat

for

on several

sector

collective
le

to

referred

was no

in

mind

that

of

the

Soviet

left

the

its

to

Union's
own

resources.
This

aspect

zhensky's

various

and elaborates
Even the

latter

wonder.

For

here

pages

The New Economics,

time

a statement

ative"

politics,

an unmistakable

of

of

analysis

about
to

while

the

be done

if

theoretical

of

politics

be sure,

in

that

to

the

it
is

socialism
depth

polemics

against

is
to

this

in

political
Preobra-

the

economy,

transition.
largely

small

that

in

step

con-

is

at

the

It

is

a "neg-

an attack

be possible.

text.

main

undertone--and

a tentative

book

strands

he refines

that

these

contained

Soviet

the

to

meshed together.
a highly

polemical
being

inaccessible

is

through

theory

consistently

a theoretical

roust not

basic

is

the

of

analysis

and political

inextricably

to

gen-

proletariat.

economic

devoted

are

were

Western

abstractness,

and it

many points
this

the

its

of

opponents,

has

that

his

mirrored

em-

and his

relations

concluded

had become

spite

its

it

the

of

is

Preobrazhensky's

with

production

he also

intervention

in

half

Nearly

work.

of

As such

argument

The New Economics,

consistent

which

essential

Preobrazhensky's

what

course

socialism.

the

without

What is

structing

of

contradictions

solution

of

of

conception

industrial

was

"qualitative"

on the

phasis
eral

argument

But
none of

same

against
there
his

is
earlier

-65possess,

works

that

struggle

to

obrazhensky
means for

of

division
ing

of

and the

the

the

was concurrently

and a cause

its

of

First,

the

of
generalization/knowledge

result

of

it

by locating
within

how the

political

failure

to

continued

with

the

question

abolition

of

throughout

the

these

effect

economic

Pre-

compelled

industrialization

of

this

consciousness

by the

same time.

purpose

He did

out.

class

this

at

consequences.

and by demonstrating

class,

tasks

it

carrying

labor

of

link

explicitly

development

the

a head

had two

this

be explained

can only

to

was coming

Theoretically

the

that

something

the
work-

two

backwardness

prolongation.

[the
divisions
the working
situation
and inequalities
within
is connected
the heterogeneity
class]
with
of the working
class
its
heterogeneity
in techthe management
as regards
of industry,
The new system
training,
nical
organizing
abilities,
and so on.
heterogeneity
from capitalism,
this
receives
as a legacy
and it
it
can abolish
gradually,
as the productivity
of labor
rises,
as
the cultural
training
and technical
of the entire
mass rises
on
the basis
of the new educational
system and the development
of the
democracy
in all
system
of workers'
of leadership
and
spheres
finally,
management;
on the basis
of a quite
struggle
conscious
The existtendencies
toward
against
conservatism
and stagnation.
ing material
inequality
slowness
of the rise
and the comparative
to the level
of the general
of the ormass of the working
class
from
the present
ganizing
cadres
of production
result
not
structure
in spite
they
relations,
and they
will
persist
structure,
of this
be abolished
is eliminated,
division
by occupations
as the hard-set
is abolished,
as the gap between
as there
passes
science
and labor
"enslaving
to the diviaway that
subordination
of the individual
from
Marx
" inherited
bourgeois
sion
of which
of labor,
so_ety,
in his Critique
Program.
spoke
of the Gotha
This

So long

as the

supercession
to
the

division

the

working

class

Transcending

the

economic

problem.

means of

production

the

labor

was so ephemeral,

characterize

tem of

of

proletarian

differentiation

social

towards
division
In

the

between

in

relations

labor

of
first

the

is,

before

and before
skilled

both

then,
a certain

case,

there
the

would

could
country

and unskilled

continue
of

progress
be cut

short.
and an

a political

development

of

the

be a general
could
workers.

its

towards

would

USSR, and the

consciousness

socialist

movement

and fetishism

reification

was required
education

and the

persisted

sys-

do away with
Only

then,

-66for

instance,

as do away with

the

divisions
the

If

transition

the

fact

for

is

entire

lution

period
terms

the

mediately

are

it--to

labor
without

quired

class
its
ledge

how highly

knowledge

social

out

public
would

of

experience

possession
have

own destiny.
makes

their

its

of

remain

the

no means to

or

sector

as a whole

class
act

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54

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-73-

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-74transition
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socialist

gained

process.

could

overseen
in

have

only

this

beyond

The inherently

proletariat

class

have

socialism

could

over

working

could
to

the

control

Soviet

West.

capitalist

if

led

necessarily

economy

value

political

proletariat
have

we are

the

Western

that

process

might

USSR.

***

This

concludes

Preobrazhensky's
method

would

certainly

our
theory

have

as long

as the

the

essential

another

aspect

of

attention:

commodity-socialist

the

of

required,

lustrate

inadequate

all-too-sketchy

account

transitional

one.

components

of

Preobrazhensky's
His
economy

of

the

of

our

USSR during

Preface,

chosen

of
his

to

a thesis
try

We will
have

which

expanding

backgound

To elaborate

instead.

writings

analysis

in

We have
it

the

society.

as we cautioned
present

of

also

and il-

now turn
received
in

reproduction
the

to

New Economic

the
Policy.

NOTES TO INTRODUCTION

1.

For the background


and Preobrazhensky's
of the 1923 Opposition
(London,
1959),
Isaac
Deutscher,
Prophet
Unarmed
The
role,
see
London,
(Pelican
E. H. Carr,
The interegnum
edition,
pp. 113-34;
1969),
the
Chapters
13 & 14, plus the "Note, " pp. 374-80,
giving
text
reservaas the various
of the 46" as well
of the "Platform
Opposition
"The
Left
S.
Law,
David
tions
of its
and
signatories;
For the Opposition
in 1923, " in Critique,
No. 2, pp. 37-52.
of
(Pelican,
1970),
Vol.
1926-27,
Socialism
In One Country
see Carr,
iv
Chs.
&
Deutscher,
I, Part II,
19;
Vol.
II.
Ch.
v.
op
cit,
and
and

2.

From NEP To Socialism


Pearce.
For Spulber's

3.

in
Of these the most important
Erlich,
Alexander
by
an article
are
in the Quarterly
Feb. 1950, pp.
Journal
published
of Economics,
57-88 ("Preobrazhenski
Soviet
IndustrializaEconomics
the
of
and
tion"),
Debate (Cambridge,
and his book The Soviet
Industrialization
1960).
Mass.,
See also Spulber,
for Economic
Strategy
Soviet
Growth (Bloomington,
1964);
Alec Nove, An Economic History
of the

(London,

1973),
also translated
see Note 3 on page
anthology,

by Brian
13, above.

-75USSR (Pelican,
1972)
Introduction
to The New Economics;
and Nove's
Day, Leon Trotsky
and Richard
Isolaand the Politics
of Economic
(Cambridge,
1973)
tion
and "Preobrazhensky
and the Theory
of the
Transition
Period,
" in Soviet
April
Studies,
1975,
196-219.
pp.

4.

Erlich,
draft

In 1932 Preobrazhensky
Debate,
for a
p. 59.
was attacked
he had submitted
of an article
to the journal
Problemy
Eko"0 Metodologii
Sostavleniya
Genplana
i Vtoroi
entitled
nomiki,
Pyatiletki"
("On the Methodology
Plan
of Drawing Up the General
Plan"),
in which he allegedly
and the Second Five-Year
asserted
industrialization
the current
that
push was being hopelessly
misbeing suffered
the disproportions
managed, but that
were inherently inevitable
in a peasant
trying
to industrialize
country
on its
The polemic
his old posown.
accused Preobrazhensky
of reviving
ition
that
the only condition
Union could
under which the Soviet
avoid such disruptions
would be with the "victory
of the proletarian revolution
in other
" The article,
countries.
which Erlich
to in another
The attack
refers
context,
was never published.
in a
on Preobrazhensky
appeared
his
book Zakat
(The
Kapitalizma
1931).
See Zakat
Kapitalizma
v
in the Trotskyist
of Capitalism

S.

collection
of essays
criticizing
Moscow,
Decline
of Capitalism,
(The Decline
Trotskistkom
Zerkale
Moscow,
1932),
52-58.
Mirror,
pp.

A comprehensive
Marxist
critique
of Day's book is sorely
needed,
Like so many bourgeois
take up here.
something
we cannot possibly
industrialization
Day seems to think
that
scholastics,
and socialism are one and the same thing.
he reduces
As a result
the debates
to disputes
of the twenties
over the course of economic policy,
the political
while
sides,
not to mencontent
of the
contending
tion
their
underlying
goals and philosophical
premises,
count for
In Day's case he has not only seen fit
to squeeze the
nothing.
debates
into
the constricting
of bourgeois
categories,
aperture
but has even invented
Trotsky's
supposed
of his own, viz.,
a couple
"integrationism"
" The results
"isolationism.
vs Stalin's
are
bloc with Lenin is "explained"
Trotsky's
equally
completeunique.
for example,
ly without
to the Georgian
while
reference
affair,
himself
Trotsky
winds up as some sort
of liberal
market socialist.
It is interesting
Trotsky,
Day, unlike
Preobrazhensky,
that
or
between the Soviet
treats
the inter-relations
others
of the Left,
techentirely
economy and the world division
of labor
as something
i. e., a mere balance
nical,
quesand exports,
without
of imports
the
tioning
these would be, given that
what type of relations
world market was capitalist
and trade
relations
could only take
jeopardizing
the basis
place under very severe constraints
without
As for his discussion
of the Soviet
of Preobrazhensky,
which
state.
is our main concern
(pp. 145-48 of Day's book),
we wish to note
in the space of just
that
over three
pages Day manages no fewer
theoretical
than five
of Preobrazhensky's
major misrepresentations
in fact,
basic,
that
they cause us
and political
standpoint--so
he
if
had
to honestly
the
Day
refers
sources
read
wonder
actually
in"placed
Day, for instance,
Preobrazhensky
to.
that
an
claims
the imporordinate
stress
and ignored
on internal
accumulation"
tance of the world market.
We find
this
strange,
rather
accusation
the
Preobrazhensky
that
since virtually
every piece
wrote during
between
twenties
the necessity
stressed
of maximum inter-relations
the Soviet
economy and the world division
so long as
of labor,
these did not threaten
the socialist
ecoof the state
character
The need for these connections
does not mean that we can
nomy.
in any way deny the primacy
in the
accumulation,
of internal

-76in the West.


absence of revolution
We will
deal with both the
behind this
political
in the rest
and economic reasons
of the
thesis,
Day also asserts
and need not go into
them here.
that
Preobrazhensky
favored
a policy
of high industrial
prices,
and
his capitulation
attributes
to the Stalin
camp to the latter's
line.
We find
adoption
of this
this
charge equally
as astonishing
Preobrazhensky
as the first,
since
consistently
advocated
precisely the reverse--and
Day could
fail
if
he has
to know this
only
Preobrazhensky.
from
Aside
not read
The New Economics,
the
where
industrial
imporvements
need to lower
in productivity
prices
via
(a policy
Day ascribes
is a major
to Trotsky),
solely
theme,
see
(Economic
Krizisy
Ekonomicheskie
Pri
NEP'e
Crises
Under NEP, 1923),
in step
where he also
advocated
raising
agricultural
prices
with
in the possibilities
for
expansions
marketing
agricultural
products
Perhaps
distortions
the worst
is the way he panabroad.
of Day's
in the most revolting
ders
fashion
"criticisms"
to the Stalinist
he advocated,
in Day's
that
of Preobrazhensky
which
alleged
words,
"exploiting
just
the peasants
its
as a metropolis
exploited
col"
To refute
"argument"
this
both
onies.
particular
we merely
refer
Day and the reader
to a book entitled
The New Economics,
especial85-88,
ly pp.
We should
in his
Day,
Soviet
and 227-31.
add that
inaccuracies
Studies
textual
article
rectified
most of these
while
holding
Preobrazhensky
had accommodatto his
thesis
that
original
in one country
(citing
ed to the "theory"
of socialism
as evidence
from his
detailed).
book that
the same pages
Since
we have just
Preobrazhensky
in 1927 (in
"Economic
Equilibrium
explicitly
stated
in the System
in one country
of the USSR, " VKA 22) that
socialism
Day has to skirt
by claimthis
was impossible,
around
minor
point
ing that
incomplete"
these
to allow
statements
any "defwere "too
initive
judgement"
The fact
that
of Preobrazhensky's
position.
Preobrazhensky
had held
the same "incomplete"
throughout
the
position
it
(see Note 4 above),
twenties
and,
would
appear,
even after

In this
to Day.
the latter
seems to matter
very little
article
has become a kind of Trotsko-Maoist,
"unities
of opposites"
seeing
It is what we might call a W. H. Smith Dialecalmost
everywhere.
tic,
strongly
remeniscent
of the brand of "marxism"
generally
from one's
local
Day to
Though allowing
available
newsagent.
be more textually
it affords
him little
precise,
additional
underto what
twenties
standing
either
of Preobrazhensky
or the Soviet
is contained
in his book.
6.

One of the finest


examples of this
was in the field
of cognitive
See L. S. Vygotsky's
psychology
and linguistics.
pathbreaking
work
(English
Mass.,
1962;
Cambridge,
Thought and Language
translation,
in Russian
i Rech',
Moscow, 1934)
originally
published
as Myshlenie
issues
taken up in
which bears directly
upon the philosophical
Introduction
below.
this
and in the other
works
cited

7.

See

Georg

8.

See

Sidney

Lukcs,
(London,
1970)
ConLenin
and History
and Class
(London,
"
1971);
"Marxism
Karl
Korsch,
sciousness
and Philosophy,
"'
State
'Marxism
and "The Present
of
and Philosophy,
of the Problem
both
in Korsch,
(London,
1970);
Antonio
Marxism
and Philosophy
Gramsci,
(edited
by Quinton
Selections
From the Prison
Notebooks
Hoare
1971),
Nowell
Smith,
London,
and Geoffrey
as well
as the
(New
much shorter
Prince
the
title
Modern
anthology
The
of
under
York,
1957),
in
included
important
which
contains
essays
not
some
the Prison
Notebooks.
Hook,

Towards

the

Understanding

of

Karl

Marx

(London,

-771933)
(Ann Arbor,
1962,
to Marx
and From Hegel
originally
published
in 1936).
Hook is probably
American
Marxist
the only
philosopher
Strongly
influenced
by the pargmatist
of any distinction.
school,
his
line
two books
tread
between
the fine
that
certainly
exists
important
It was undoubtpragmatism
and certain
aspects
of Marx.
his
led Hook to dwell
that
edly
pragmatism
on the practico-active
influenced
by the publication
of Marx and to be so strongly
side
For Sweezy,
of The German Ideology
and the Theses
on Feuerbach.
(New York,
1968),
Development
see The Theory
of Capitalist
p. 20.

9.

Colletti,
(London,
1972) and Marxism
From Rousseau to Lenin
1973).
Leszek Kolakowski,
Marxism and Beyond
and Hegel (London,
(London,
1971),
in particular
"Karl
Marx and the Clasthe essay,
Definition
sical
of Truth, " although
other
essays in the book are
important.
Of all
here,
is
Kulakowski
the sources
we have cited
Yet one should not
the weakest,
perhaps
as we point
out below.
his work obviously
has, particuthe importance
that
underestimate
intellectuals
larly
Marxist
as part
of the "revolt"
of the Polish
Stalinist
1956.
Kolakowski's
analysis
of
against
orthodoxy
after
Eastern
the difficulties
of mounting
a left-wing
critique
within
is an insightEurope (in the essay "Responsibility
and History")
ful antedote
in Stalinism
to the usual
anti-communism
of dissent
Unfortunately
Kolakowski
champion that
regimes.
was to eventually
he had attacked
in his days as a Marxist.
same right
wing that

Lucio

10.

Since the degeneration


of the Marxist
movement was one of the cenMarxists,
by post-Russian
Revolution
tral
to be explained
problems
It would be impossible
the
to list
this
all
was not surprising.
The
to this
subject
among these and other
writers.
references
"The Marxism of
Lukcs,
would be the following:
most important
Observations
Rosa Luxemburg"
on Rosa Luxemburg's
and `Critical
"' in History
'Critique
Revolution,
and Class Conof the Russian
(Note
7 above);
by
Korsch
the
two
cited
already
essays
sciousness;
Hook, Towards the Understanding
Gramsci,
Notebooks,
pp. 322-472;
"Karl
Marx and the Classical
of Karl Marx, Part I; Kolakowski,
"Bernstein
Definition
and the
and Colletti,
of Truth, " in op cit;
" in From Rousseau to Lenin.
Marxism of the Second International,

11.

Claude

12.

Korsch,

13.

ibid,
"In
the

Levi-Strauss,
op cit,

pp.

The Savage
77-8.

Mind

Original

(London,

1972),

pp.

94-95.

emphasis.

this
following
Lukcs,
Colletti,
point:
stressed
also
p. 76.
hand,
the
Marx's
other
on
economy,
own critique
of political
The
trinity
decisively
is
mysterious
altered.
picture
whole
is
'value'
Since
is
Capital,
Labor
Land
now
away.
swept
of
and
labor-power,
human
the critithe
of
considered
as
objectification
discourse
comes to
of Capital
cal-scientific
or anti-fetishistic
fur(a
the
the
class
working
of
coincide
with
self-consciousness
just
For
ideology).
as
ther
the
and
proof
of
of science
unity
'
'capital,
'value'
labor,
by
the
and
of
wage
recognizing
essence
hence
(and
'itself'
that
of
essence
sees
as an objectification
knowledge),
the working
this
through
reaches
self-consciousness
by becoming
and
profit
achieves--for
class,
conscious
of itself,
knowledge
forms
derived
from
of the
are
rent
value--the
surplus
as a whole.
and basis
of society
origin
of other
and hence
classes
in
"
("Bernstein
RousInternational,
Marxism
Second
the
the
and
of
90-91;
in the original).
seau to Lenin,
pp.
emphasis

"

-78is

14.

This/one

15.

Karl

16.

It might be objected
that
that
the working
we are implying
class
have achieved
it can
before
socialist
consciousness
must already
This is obviously
not true,
at least
not in
make a revolution.
But capitalism
the basis
terms.
can only provide
such absolute
human consciousness;
for altering
it will
on its
own make large
potentially
of the population
anti-capitalist,
or at least
strata
But capitalism
the working
class,
or
provide
cannot possibly
so.
of capitalist
of the nature
anybody else,
with the understanding
Reading
are at hand.
and of what possible
society
alternatives
for example,
is not part of
literature,
Capital,
or revolutionary
It
for people
in capitalist
the normal course
society.
of events
break with those day to day activities
a qualitative
represents
bourgeois
in and of themselves,
that,
only serve to reinforce
from
developing
inhibit
the
an
class
and
working
consciousness
hisitself
of
agent
as a potentially
revolutionary
of
awareness
torical
change.

17.

See Hook's
excellent
formal
to
adherence

18.

Kolakowski,

19.

Gramsci,

20.

Marx,

21.

in the Grundrisse,
See the passages
where Marx
pp. 100-02,106-08,
between the logical
sequence of catethe difference
establishes
the concrete,
and their
through
gories
which the mind establishes
these
Rubin's
somewhat
of
explication
genesis.
actual-historical
is excellent:
difficult
passages

themes
of the central
of Colletti's
essay
on Bernstein;
76-102.
is almost
Colletti's
identical
see pp.
to that
argument
I.
Rubin,
(English
Theory
of I.
whose Essays
on Marx's
of Value
1972;
Detroit,
in Russian
translation,
originally
published
as
is without
Moscow,
1928),
Ocherki
Stoimosti
Marksa,
po Teorii
any
I of Volume
I of Capital
the best
treatment
that
question
of Part
is no indication,
There
however,
Colthat
we have encountered.
letti
Rubin's
was familiar
with
work.

Marx,

(Moscow,

The German Ideology

1964),

p.

396.

between
Lenin's
on the contradiction
theory
the reflection/cognition
and the active
his
that
and
political
of
all
underlay
of consciousness
philosophy
day
(Tohis
day
to
practice.
as
as
well
non-philosophical
writings,
For
61-62).
Karl
Marx,
a more genthe
Understanding
pp.
of
wards
between
deeper
the
treatment
same
conflict
of
and somewhat
eral,
403.
Gramsci,
implicit
Notebooks,
p.
see
philosophies,
and explicit

pp.

62-70.

Notebooks,

Grundrisse

discussion

p.
(Pelican

368.

Our emphasis.

edition,

London,

1973),

p.

101.

industrial
C
between financial
"... the relation
and
capitalist
from
C;
loan
this
B
B's
relation
a
consists
of
receiving
capitalist
between
relations
the
presupposes
of production
already
existence
industrial
A, or more exactly,
B and laborer
with many
capitalist
between the industrial
laborers.
On the other
hand,, the relations
that
do not necessarily
presuppose
and the laborers
capitalist
B had to borrow money from the financial
capitalist.
capitalist
'sur'capital'
Thus it is clear
and
that
the economic
categories
'interest-bearing
and
capital'
the categories
precede
plus value'
'
'interest.
Furthermore,
between the industrial
capthe relation
laboritalist
has the form of purchase
of
and the workers
sale
and

-79power,
that
the capitalist
and in addition
presupposes
produces
i. e., that
he is connected
goods for sale,
with other
members of
by the production
society
relations
of commodity
owners with each
On the other
hand, relations
other.
among the commodity
owners
do not necessarily
bond between the induspresuppose
a production
trial
From this
it is clear
capitalist
that
the
and the workers.
'commodity'
'capital.
'
the category
categories
and 'value'
precede
follows
The logical
from the
order
of the economic
categories
by the
character
of the production
relations
which are expressed
Marx's
categories.
economic
system analyzes
a series
of produc(Rubin,
tion relations
of increasingly
complex types. "
op cit,
p. 32; original
emphasis).
39.

22.

Rubin,

23.

The New Economics,

24.

Preobrazhensky's
fact.
Preobraopponents
were well
aware of this
how, when his chapter
zhensky cites
on the law of value was originally
in article
form it received
(as opposed
published
a cool
hostile)
Soon, however,
it was subjected
to openly
to
reception.
the same torrents
of vituperation
as his essay on the theory
of
See Preobrazhensky,
"Ekonomiprimitive
socialist
accumulation.
in Bolshevik,
No, 15-16
Zametki III"
("Economic
Notes III")
cheskie
(31 August
1926),
p. 68.

25.

I of The New Economics,


On this
see Chapter
ical
Analysis
Economy. "
of the Soviet

26.

VKA 22,

27.

When
This last
comment requires
and caution.
some clarification
1928 as a
dealing
with Preobrazhensky's
works we have to treat
line.
He continued
to write
once he had gone back
major dividing
between what he
into
is a clear
the party,
continuity
and there
Still,
1928 and what had come before.
whatever
published
after
debureaucratic
Preobrazhensky
thinking
the
a
of
on
subject
was
him
impute
be
to
too
to
much
generation--and
careful
not
we must
his capitulation--he
could not have said it
on that
score after
during
His writings
this
time have an interest
mainstraight
out.
his theory
in particular
ly in terms of economic theory,
of capfreshness
italist
crises,
and as a welcome breath
of intellectual
"red
in the midst of the paltry
the
the
proof
age
of
atmosphere
from
fessors.
him
the party
"
Even this
to
expelled
get
was enough
But it would only
in 1931 and branded
Trotskyist.
as a secret
finally
had
have been during
bureaucracy
the 1930's,
the
conwhen
itself
in opposition
of
were thinking
solidated
and others
still
have
Preobrazhensky
Soviet
Thermidor,
the problems
that
would
of a
did
he
If
degeneration.
been able to work out an analysis
the
of
In the twenties,
on
so we have no record,
as we would expect.
had
hand, when he and the rest
Left
the
the other
some
still
of
have
freedom of expression,
Preobrazhensky
possibley
could not
from
foreseen
degeneration
the prospect
the
revolution
of
of a
in
danger
Like
he
Opposition
the
the
main
within.
saw
as a whole
from
a capitalist
restoration
an economic and
which would ensue
breakdown of the proletarian
brought
dictatorship,
about
social
by the disastrous
leadership
and the revolupolicies
of the party
isolation.
tion's

Essays,

p.

p.

pp.

70 (Spulber,

148-50.

pp.

Original

emphasis.

"The Method

of

Theoret-

172-73).

-80To
at
this
ply
his
in

the extent
Preobrazhensky's
ideas to arrive
that
we can utilize
a better
appreciation
of the degeneration
of the revolution,
places
us in the somewhat difficult
to apposition
of having
Preobrazhensky's
the Soviet
method of analyzing
economy to
own account
of the problems
of culture
and class
consciousness,
Preobrazhensky
to arrive
that
order
at conclusions
either
could
We are justified
in doing this,
not or did not come to himself.
insisted
had to be caras this
was precisely
what Preobrazhensky
Marx's method to the historicallyto applying
ried
out with regard
Still,
new Soviet
economy.
to differwe have to be quite
careful
entiate
what Preobrazhensky
actually
said from what we ourselves
have concluded
largely
by
about the emergence of the bureaucracy
his theoretical
taking
in their
premises
some steps further
application.
29.

Original

28.

The New Economics,

29.

"Perspektivy
Novoi Ekonomicheskoi
New Economic Policy"),
Krasnaya
pp. 201-14.

30.

Ibid,

31.

implicitly
Preobrazhensky
in his divissame abstraction
made this
ion of she New Economics
between the analysis
of the law of primitive
(which dealt
socialist
accumulation
primarily
with the inter-relation
of the state
sector
with the private
economy) and the
discussion
the state
of the influence
of the law of value within
He stated
it explicitly
in "Economic
in the
Equilibrium
sector.
System of the USSR, " when discussing
the transition
to NEP:

p.

p.

emphasis.
Politiki"
No.
Nov',

("The Outlook
3, Sept. -Oct.

for the
1921,

202.

"In examining
however,
these changes,
to diswe must be careful
between two different
On the one hand, cerstinguish
categories.
tain
ecochanges were made in the methods of managing the state
from the usual capto squeeze everything
nomy in order
of value
italist
techniques
and so on, in the
of accounting,
calculation,
first
in other
these were
words,
stages
of socialist
construction;
in the interests
economy itself
changes introduced
of the state
These
level
changes
must not
at that
given
of socialist
culture.
imposed
be confused
that
the
upon
were
other
economic
changes
with
by the prefactors,
by external
the state
economy
specifically
(VKA
22,
dominance
in
"
the
country.
of petty-commodity
production
)
Our emphasis.
p. 23.

32.

Ibid,

33.

The

34.0

35.0

64-65.

pp.
Library

Original

emphasis.

lists
of Congress
0 Material'noi
zhensky
entitled
(On the Material
Obshchestve
holdings
Like
so many valuable
it
be found.
cannot

a book by Preobrav Sotsialisticheskom


in Socialist
Society).
however,
institution,

(On Morality
Klassovykh
Normakh
and Class
50-51.
interesting--and
See also
the very
pp.
book by I. Grossman-Roshchin
ceptive--review
of this
journal,
LEF, No, 4,1924,
196-98,
pp.
Morali
1923),

Morali,

its
catalogue
Baze Kultury
Basis
of Culture
of the august
in

p.

53.

Norms,

Moscow,

perquite
in Mayakovsky's

-81-

36.

Preobrazhensky's
is strikingly
theory
to that
of culture
similar
Compare the above quotations
of Gramsci.
quite
with the following,
Notebooks:
representative
passage from The Prison
"This
between thought
i. e., the co-existence
contrast
and action,
in words and the
one affirmed
of the world,
of two conceptions
is not simply
in effective
action,
other displayed
of
a product
for
Self-deception
self-deception.
can be an adequate
explanation
taken separately,
a few individuals
or even for groups of a cerbut it is not adequate
in the
tain
size,
when the contrast
occurs
life
between thought
In these cases the contrast
of great
masses.
and action
cannot but be the expression
of profounder
contrasts
historical
It signifies
that the social
group
of a social
order.
in question
own conception
of the world,
even
may indeed have its
if only embryonic;
itself
in action,
a conception
which manifests
but occasionally
is,
that
the group is actand in flashes--when,
ing as an organic
But this
totality.
same group has, for reasons
adopted
a conception
of submission
and intellectual
subordination,
from another
group;
which is not its own but is borrowed
and it
itself
this
to be folaffirms
conception
verbally
and believes
in
it,
because this
lowing
is the conception
which it follows
is not independent
'normal
is,
times'--that
and
when its
conduct
but submissive
Hence the reason why
autonomous,
and subordinate.
from politics.
And one can show
philosophy
cannot be divorced
furthermore
that
the choice
of
and the criticism
of a conception
is also a political
the world
Notebooks,
matter. " (Gramsci,
pp. 326-27).

37.

Preobrazhensky's
It is in this
use
sense that we should understand
of such terms as "instinct"
and "human nature. " Though borrowing
from an intellectual
this
traditerminology
rather
unfortunate
tion
that would seem to owe more to positivist
than to
science
in no way considered
Marxism,
Preobrazhensky
these as inate
proThose forms of human behavior
perties
of human beings.
which at
by social
one stage of human development
norms and
are dictated
in another
epoch be
are more. or less consciously
adopted,
will
i. e.,
out virtually
so habitual
as to be carried
unthinkingly,
instinct
be "instinctual.
" Thus for Preobrazhensky
they will
and
(and therefore
human nature
are historically-acquired
mutable),
forms of social
See
to specific
and correspond
organization.
0 Morali,
p. 113.

38.

is borrowed
from Gramsci,
This phrase
Preobrazhensky,
who, like
of the dissemination
was very much preoccupied
with the problem
in a predominantly
and implantation
of Marxist
culture
peasant
See Notebooks,
country.
pp. 392-93,395-98.

39.

"Better
V. I.
Lenin,
Fewer,
" Selected
But Better,
(Moscow,
Volumes
1971),
3, pp.
776-77.
Vol.

40.

Trotsky

41.

Parts
had appeared
NEP To Socialism,
pp. 62-68.
of this
chapter
into
incorporated
"Ekonomicheskaya
Politika
Proletarthe article,
iata
("The
Strane"
Economic
Policy
v Krest'yanskoi
of the Prolein a Peasant
in Kommunistichesky
Country"),
tariat
Internatsional,
(This
journal
1922.
No. 25, Nov.
in
was simultaneously
published
including
English,
is
the article
of languages,
a number
so that
in English).
available

makes this

same point

throughout

Works

The Revolution

in

Three

Betrayed.

-8242.
43.0

The New Economics,


Morali,

pp.

193-94.

93-99.

pp.

44.

Ibid,

45.

in the form of series


From NEP To Socialism
was written
of lectures,
in the year 1970 to a group of worker-students,
ostensibly
given
the transition
about the USSR's path out of isolation
and through
It was, of course,
period.
a positive
statement
about contemporary economic policy.

46.

NEP To Socialism,

47.0

105-07.

pp.

Morali,

p.

83.

p.

68.

Our emphasis.

Our emphasis.

48.

See, for example,


First
Five Years of the Communist International,
"Perspectives
For World Development,
" reprintVol.
II,
pp. 305-06;
(and which contains
(USA), Aug. 17,1970
such
ed in The Bulletin
fairly
formulations
lags behind
remarkable
as, "consciousness
being");
1938-39,
Korsch makes a very simiand writings,
p. 51.
lar criticism
of Luxemof both Luxemburg and Trotsky,
especially
burg's
Marxism
that
the "theory"
notion
of late-nineteenth
century
had got way out in front of its practice,
lying
and was effectively
State
in wait for the latter
See "The Present
to catch up to it.
"' in Marxism and Philof the Problem of 'Marxism
and Philosophy,
for
101-05.
I
C.
Marshall
to
pp.
am
grateful
calling
osophy,
the Trotsky
to my attention.
references

49.

The New Economics,

50.

Ibid,

51.

VKA 22,

52.

The New Economics,

53.

Ibid,

54.

(Spulber,
VKA 22, pp. 64,65,70
pp. 166-68,172-73;
heavily
passages
on pp. 166-68 are rather
edited,
important
deleted).
politically
paragraphs

147.

p.

188.

195-96.

pp.

p.

p.

p.

64.

189.
the Spulber
with the most

-83PART I

MARX'S REPRODUCTION SCHEMES AND THE ANALYSIS OF A MIXED ECONOMY


CHAPTER
CIRCULATION

Marx's

I.

In

the

is

that

in

in

ated

is

capital

forms,

ownership

and the

fic--that

is,

First

of

money-transformed
is

which

basic

circulation

must

M-C...

P...

of

are

also

the

money to

to

very

purchase

through

there

can be three

circulation,

and b)that

formula,

the

encompass

derived

in

which
and
these
speci-

I of

Volume

into

back

'

derives

This

in

invested

more money.
entire

gener-

historically

money capital.

M-C-M'--money
into

which,

production.

commodities-transformed

Only

are

just

not

production

direct-

Capital,

that

money.

commodities
formula

But now the

the

specific.
purchase
first,

expansion

as the

of

process.

It

just

money in

means of

for

his

production

not

As for
with

personal

is

This

money form

value.

The capitalist
items

is

now this

any commodities.

i. e.,

as money capital,

relationship,

forms

capitalist

Marx

commodities.

and these

functions

three

are

to

for

goes:

C'-M'

Money purchases
stract,

into

value

the

of

forms

etc.,
surplus

of

for

as opposed

the

out
at

three

capital

i. e.,

as a whole,

for

the

analyzes

capital,

see a)that

to

formula

transformed

then

we look

Capital

Industrial

finance

income

only

Industrial

production,

expression

relationship

familiar

the

are

the

in

process

pertain
is

from

the

the

REPRODUCTION

circulates.

we will

reproduction

there

Marx

of

land,

If

for

they

Capital

II

their

proper.

ly

This

draw

formulae

of

of

"metamorphosed"

three

only

Circulation

directly

engages

production

the

capital

instance,

last

the

industrial

capital,

merchant

SIMPLE

Volume

of

which

AND

for

Formulae

opening

by which

forms
Marx

Three

the

of

ab-

money which

the

capital

commodities,

they

money capital

doesn't

use

consumption.

He uses

them

(machines,

plant,

raw materials,

-84-

intermediary
he converts

half

of

LP
M-C-MP

of

labor

goes

(LP).

is

this

two elements
cess

not
of

dots

short,

form

of

main

means of

only

them

to

that

MP and LP function

In any

the

in

work

process

as productive

of

his
the

productive

scheme represents

indicate

as money

has found

capitalist

he can set

our

these

money capital.

Once the

capital,

when he finds

money functions

his

that

pur-

(MP) and

production

only

potentially

point.

side

is

it

potential

pro-

capital;
is

circulation
in

capital

the

pro-

process.

In

of

chines

(though

chines

that

that

what

that

the

labor

capitalist,

our

have

you.

is

engaged

would

they

bought),

they

They

his

value,

are

his

into

the

if

sensation,

he can once

shape.
for

the

capitalist

he will

have

he has

So he must

as money,

again

mabe

product

which

he,

is

to

be a real

to

ensure

as a

and sale.

The commodities

money,

but

of

might

the

commodity-product,

own use

wrong

they

on what

be ma-

same type

be shoes,

might

depend

They might

be the

comfrom

different

will

in.

has produced

For

a one-shot

can continue.

them back
of

capitalist

is

key word.

They have

that.

This

purchased.

of

a new quantity

be entirely

will

capitalist

for

the

and not

production

these

he has purchased

power

here

form

is

process

production

by coincidence

only

appropriates

capitalist,

equivalent

our

he initially

or

Sale

this

physical

production

jute,

transform

from

their

commodities

branch

allow

the

them

The P in

while

modities.

his

full

the

as the

money,

with

add that

is

productive

What emerges

the

it

on either

interrupted
duction

In

power.

really:

he finds

buys

then

production.

and the

So,

capital.

market

There

We should

Up till

of

on the

out

and actually

commodities
capital.

is

circuit

commodities.

power

case,

the

productive

labor

second,

P...

The capitalist
chaser

etc. ) and,

money into

the

first

the

fuel,

products,

go out

which
on the

in
sell
is

that

hand do not
them.
the

market

He must

universal
and purchase

-85-

new means of
is

There

one thing,

emerge

from

iginal

commodities

production.

value

original

the
the

of

commodities

in

a new value

equal

the

C has,

it

truly

a capitalist.

up in

production,
Now, in

al

his
took

that

power;
still
modity
again

of

come out
over

invested

times

more of
what

the

had the

it

but

the

particular

of

process

so it

the

it)

our

process

entire

seems to

he has
there

our

invested
is

man began

sale

to

money;

from

there

it

into
as comonce

commodities
again.

And,

who understands
sum of

of

and labor

functioned

begin

capitalist,

that

could

transformed

these

now an increment,
with.

that

production

could

a certain

capital-

equal

which

their

through

the

in.

origin-

value

saw these

a commodity-product,

tied

the

of

commodities

means of

namely

hands

the
of

form

now is

he put

money capital,

in

remained

commodiM, but

value,

sum than

a greater
of

of

was temporarily

which

some repository

start

where

that

it

commodity

The capitalist

m).

money,
of

out

M+

Marx,

Thus when

c).

form

the

cap-

follow

to

capitalist's

initial

the

simply

(i. e.,

M'

and finally,

and above

in

original

=C+

up in

the

has added
more.
It has
something/

(or,

as the

to

power

become C'
C'

The

value.

labor

the

c;

the

transferred

of

value

tied

production

than

the

their

added

also

process,

capital,

(or

has

process

all

commodities,

with

it

an increment,

got

commodities,

bonus

And the

augmented

bring

so is

has been

production

But

possessed
the

but

production.

circulation

At

bought,

capital-value

and has

became money,

other

or-

their

now exists

has at

capital;

as an added

from

value,

intervening

other

different

not

as productive
the

form

He has

this

sum.

function

little

does

He has always
first

is

only

has

as his

capital-value

ist.

of

by surplus

M augmented

Not

C, plus

commodity-product--which

sold

that

production

the

value

ties--is

commodities

own.

It

original

capital,

these

of

its

the

is,

about

means of

the

via

that

peculiar

course
to

power.

however,

capitalist

value.

added surplus
ital.

and new labor

production

money and has

surplus

value,

-86Marx
ist

termed

drive

expansion

value

fact

that

tion,

none

lost

sight

this

of

capital

the

the

of

that

for

C'-M'-C...

of

the

now the

in

this

be sold

process

and the

is

The

activities.

means of

of

which

intervention

of

produc-

production,
the

end of

M... MI,

to

the

of

(i. e.,

is

based

are

the
and

on the

money capital.
the

precisely

in

one hand,

commodities),
of

money cap-

Productive

on the

formula

illusory

capital

only

opposite

is

here

of

and,

to

existing

as we saw in
the

the

productive

And as before,

this

that

capital

with

These

power.

as commodity
M... M',

the

the

productive

C',

commodity-product,

process.

for

important

begins

examining

circulain

more

and labor

of

an interruption
capital

as productive

production

capital

of

in the process

The capitalist

production,

are,

renewal
money.

process
the

forms:

which

production)

value-creation

means of

capitalist's
they

these,

circulation
is

It

rise

process

form

for

is,

is

from

Aside

functional

other

was an interruption

production

give

that

for

to

power

of

goes:

value-expansion.

is

able

It

production.

capitalist,

of

the

circuit

can actually

out

the

(i. e.,

productive

P...

the

to

oppose

money capital.

capital,

capitalall

money-making,

circulation?

It

that

of

result

we must

Whereas

of

capital.

for

process

of

this

value

his

beginning

the

on two

value-creation

The circuit

in

both

forms

takes

material

other,

tion

of

without

labor

of

two

other

and commodity
process

that

of

perceives

happen

could

Money is

capital-value

in

process

capitalist

application

of.

What of

real

the

clearly

of

The self-expansion

form

general

basic

as the

most

production:

the

form

typical

most

process.

ital,

money is

which

the

without

capitalist

appears

way in

only

is

behind

And because

value.

the

as the
it
as money capital/reveals

For

production.

compelling

money formula

the

rise,

which
But

capital.
completely

The commodities

broken
be
can
money

give

unsuitmust

down into

-87The first

two components.

ties

the

after
formula

sale

low.

C'

turn

looks

a bit
is

returns

to

ally
ital.
of
m.

to

suited

But

the

He devotes

money,

serve

a whole

range

a quantity
This

product,

which

commodities
original

end he gets
Not

only

can once
up with

is

then

Thus

the

the

and m, which

contains

the

value

of

the

first

C (L F MP),

which

But

P, the

a value

has he restored

money,
of

value

to
initial

produce

quantity

Thus he takes

the

P.

which
the

then

commodities

to

for

to

buy more
in

in

but
his

their

P and at
something

gets

P (and

more commodities),
of

used

a commodity-

capital

equal

he also
of

capital.

to

rise

productive

value

advances

productive

is

a value
But

can be any of

consume.

gives

production,

He advances

his

to

of

equal

by

commodities

his

cap-

as a renewal

The capitalist

of

specific-

represented

value,

thing.
value

are

serve

he can individually

that

the

these

production

productive

consumption.

c.

for

that

initial

personal

process

and means of

his

surplus

M, and

these,

of

commodities

for

has his

also

sold

M' in
of

into

to

fol-

to

value

but

his

so difficult

the

commodities,

form.

an additional

M, m.

to

and then

contains

power

restore

serve

has yield-

C, c,

to

commodi-

straightforward.

labor

equal
the

back

again

much is

we see an interesting

functional

of

process

really

and purchases

to

in

not

the

commodities

which

original

M, which

commodities,

of value

functions

is

as a replacement

these

As a result

the

takes

capitalist

of

production

an increment

it

then

transformed

m, and buys

of

a quantity

an increment

of

This

The capitalist

Thus M is
P.

M'.

capital;

market

...

but

two magnitudes:

he purchases

is,

--that

the

the

value

in

embodied

of

(L & MP)

into

productive
value.

the

of

like:

converted

surplus

form

form

complicated,

represents

original

is

addition

the

the

CM-C
M'
+
+cm-c

P... C'

looks

in

renewal

value

in

C',

of

really

This

first

value,

the

C; and in

is

whose value

ed surplus

P's

P.

capital,

productive

is

a shape
he has

personal

the
more.
that

also

wound

susten-

-88He has appropriated

ance.
at

the

end not

P, then,

P...
--the

for

formula
the

at

simple

surplus

ital

is

ly

by the

capitalist
is

This
all

or part

tion

and labor

that

all

of

P...

C'-M'-C'

power.

The scale

of

enough
technical

next

a new m.
to

enough
is

that

the

ries

of
out

It

his

of

period,

is

his

have

consumed
than

on
their

when
cap-

individual-

consumed

he

this

into

means of

produc-

purchase

more means of

production

may be certain

technical

assuming,

would,

as:

appear

particular

labor

he has
can

it

surplus

crucial

value

and

capital,

between

as

an

wage

labor

must,

in

holds
of

quantum

the

not

fit

actually

together

two

may

onto

it

augmentation
and

capital.

the
his

have
The

to

point

expand
of

the

He car-

reproduction.

that

the

capitlist

reality,

take

value,

surplus

issue.
uses

into

he will

and

m,

value,

surplus

simply

a new

earned

is

as

he

Then

add

his

takes

to

power

the

his

with

difficulties.

enterprise

capitalist

purchase

This

relation

have

could

us say,

to

there

production.

capital

formula

the

production.

when

capitalist

obvious

year

P'

and/or

perhaps,

expanded

stays

next

The productive

is

the

let

cannot

He accumulates

production.
scale

of

capitalist

expand

is

this

more value

level.

capital,

exclusively

production

Then,

production.

The capitalists

c in

productive

used

structure
the

until

to

Of course

of

means

the

to

value

formula

the

(L F MP)...

the

surplus

second

Then

production

that

of

production

we see that
in

previous

alternative.

the

of

c goes

and labor

be such

only

power.

M' is

The money,

the

capitalist

process

rise

formula,

This

class.
the

not

the
closer,

gives

the

at
All

of

P, and receives

on.

The capitalists

Production

continues

force

Production

before.

year

live

of

a little

reproduction.

increased.

not

turned

it

out

value

formula

our

value.

but

began,

surplus

as the

same scale

entire
it

of

to

extra

driving

real

He advances

value.

something

the

expresses

we look

If

P but

only

generation

surplus

something

-89live

to

devote

then,

labor

part

ties,

c/x,

it.

and labor

than

or

ities

power,

equal

cumulation,
personal

P').

to

equal

but

have only

filled

in

commodity
it

C'-M'-C...
We start

he did
his

c-

Marx
is

appear

the

already

contains

value.

Thus

when the
the
these

(MP and L) plus


as follows:

commodi-

(where

to

producP" is

purchase

commod-

has been devoted


are

for

the

in

this

to

ac-

capitalist's

a formula

such

less

algebraic-

way,

process

and we
with

an

for

the
the

of

circulation

most

capital,
On the

complicated.

straightforward:

The capitalist
on the

sale

an original

of

commodities
those

for

into

into

personal

commodities,
those

for

consumption.

as in

of

process
other

our

Now, each of

money.
P, plus

the

reconverts

back

for

capital-value,

capitalist
C'

must,

market

the

after

commodity-product

commodities

these

ferentiates

of

means of

P"

accumulation

undoubtedly

capitalist's

his

sell

from

the

are

used

exactly

presented

has been completed.

circuits,

it

of

this:

formu-

P-C'

with

production

present

describe

like

form

These

c/x.
not

account

capital

might

to

Marx did

the formulae

Of all

surface

that

c minus

amend Marx's

and

formula.

of

part

a sum equal

this;

additional

the

to

own con-

production

a quantity

P to

to

added

his

then

and these

c,

m is

or

like

purchase

of

value

for

Pit

The remainder

in

consumption.

..

of

are

which

something

He will,

value.

commodities

We could

to

used

a fraction

x is

where

m is

of

surplus

Lo buy new means of

use

accumulate

part

words,

tion

tained

he will

rest

his

of

purchasing

to look
reproduction
(L & MP)
CM-C
M' +
+cmc/x (L & MP)
(c
- c/x)

C'

In other

that

m to

all

expanded
P...

ally

capitalize

the

of

He will

power.

for

not

and the

sumption;

la

He will

on.

the

surplus

money he has obdif-

he immediately

continued

production

Marx presented

it

-90C
Cl

M-C(L

is,

inal

capital-value

initial

the

and the

is

homogeneous--it

then

must

to purchase

the

precondition

the

formula

of

circulation:

is

commodity

capital

capital.

In

the
of

first

two

about

this

form,

as opposed

and

the

form,
following

on

the

other

is
from

fetch

is
meas-

the

take

part

capof

capital;

it

and

of
last

P for

an act
not
to

hand,

the

last

between

P...

C'

a form

that

is

the

act
is

not

the
for

suitable

just

the

the

renewal
In

of

a change

the

even begin.
between
both

for

money

is

an

act

of

to

change

its

of
formula

functional

its

every-

In

production.
of

in

C'

C'...

[C'-M'

circuit

the

money

production.

capital

is.
act

into

difference

the

being

of

taken

in

capital]

allows

acts

separate

in

productive

that

two

cannot

and

of

In

production

capital
act

as a whole.

back

But

lies

this

is

circulation

circulation

production.

of

other

circulation

production

it

the

as money capital

second

of

to

of

circuit

capital

act

without

the

one

from
the

of

circulation

period,

value.

P(P')

act

interrupted
of

emerged

process

? MP)...

the

and the

capital;

P...

entire

production

circulation

formulae

It

only.

of

of

significance

M-C(L

the

a change

He must
as productive

circulation;

with

practical

change

of

as money capital

serve

has

which

the

in

the

act

interrupts

functional

course

a universal

will

of

the

formula

of

culation

an orig-

money they

that

continuation

for

productive

functions

capital,

act

differentiation.

the

things.

the

starts

the

the

mass of

then

First,

two

The first

into

The

in

the

course,

money to

peculiar

M... MI the

converted

thing

that

contains

produced

an undifferentiated

make a real

Marx notes

entirety

of

already

own consumption.

Now, what
two?

for

value

sold,

new commodities

his

for

part

surplus

are

money,

But

value.

C',

commodity-product,

When these

production.

italist

C'

m-c

That

ure

P...

M'

--

of

F, MP)...

the

cir-

circuit

C'...

C',

As a result
form,

but

-91To understand
to

the

very

He could

find

his

his

sell

the

have

other

money capitalists
as means of
their

have

money capital

been

productive

the

very

existence

of

his

product,

from

C'...

C'

of

the

It

must

first

It

must

then

economic

for

capital
their

is

link

commodity

money

with
capital

the
in

this

for

presupposes

capitalists

to

who

in

commodities

hence

that

note

to

order
these

indirectly,

only

that

have paid

whom they

thus

market.
existence;

in

capital

would

have

owner

could

its
into

back

and in

exist

must
is

ever

to

presupposing

or

This

for

the

commodity
it

P...

circuit

capital

MP and L, which

producers

the

As soon

existence.

to

to

suppose

transform
capital

productive
order

P(P')

(since

live

subsistence).

circuit

money,

begins

so that

producers)

commodities,

direct

capitalist

we should

that

Commodities
if

purchase

when he has

other

into

that

own means of

different.

be sold

power

circuit,

this

workers,

both
(and

commodity

system

their

however,

into

his

his

of

productive

capitals,

produce

a capi-

commodities

capital

other

other

to

(and

their

first

the

C',

labor

as a wage).

the

was complete,

he does not

for

who were

their

i. e.,

these

producers

workers

money that

may need

money capital.

in

part

live

first

been

as embodied

transform

to

order

as production

purchased

for

subsistence

Similarly,

last

have

power

money capitalists,

in

or

sell

money capital,

well

commodity

this

of

for

very

money the

labor
to

must

formula

the

from

find

very

money they

production

could

and his

distinction

characteristic

money could

production

the

other

special
In

original

laborers

in

begin

of

the

free

only

of

themselves

part

two.

commodity-product

existence

is,

other

means of

first
is

It

second

and he could

who were the

to

the

was an important

this

the

money capitalist

capitalists;

talist.

thought

at

holding

first

not

to

as opposed

capitalist

the

look

we should

make,

formula

why Marx

right

from

get

the

the

off

ground.

a money capitalist.
are

merchants

capital

as a basis

already

either

who act

cannot
start

commodity
as

be the

assumes

first

commod-

-92ity

production

ity

producers

as the
have

MP and

ments,
tion

P into

of

Perhaps
in

point
talists

C',

vance.

of

premise

distinctions.
point

of

lae

would

we choose

view

Our first
all,

than

it

that,

certain

for

the

of

circuit

Yet

saw.
When P'

as a single

differentiated

(in
that

product

than

the

circuit

in

of

can

that

P...

formule
never

C'...

P',

for
not

all

all

the

is

quite

at

of

of

different.

relefor

i. e.,

at

circuit
as

It

a single

presents
(or

M) it

M' at

functions
been

has already
the

of

of

value
as is

more

can be capitalized).
to

start

the

new

constituents

various

are

and revenue
of

it

circuit

part

goes

the

af-

repro-

expanded

(assuming,

P'

That,

for

value

between

P.

More

It

that

surplus
of

formu-

as P (or

form

all

these

of

production.

the

end of

consumption
the

from

formula

this

circuit

P')

important

P...

say,
in

these

making

schemes?

capital-value.

where

society

very

reproduction

the

next

distinctions

can describe

capi-

commodity-

their

for

Which

be to

we look

of

capital

that

our

individual

and between

describe

C'

case

is

that

an expression

P...

of

M... M1, or

of

case

production

these

goes

reasonable,

Even in

the

general
is

what

other

capitals,

of

directly

to

block

of

that

discussion.
of

the

at

itself.

appears

and begins

M... M')

fact

circuits

capital

if

existence

presuppose

probably

directly

rise

ele-

transforma-

all,

He had a good reason

basis

the

all

a question

might

gave

the

subsequent

as a totality,

the

ask

inclination

problems.

end of

for

After

and in

here.

our

of

as we just

duction,

the

roots

They

production

us just

Let

commodthe

with
the

circuit,

the

presumes

some point;

nitpicking

the

ter

at

capitalist

Marx wasn't

the

of

other

it

supply

hair-splitting.

capital

the formulae

are

and will

aim

irrelevant.

production

and that

production

proceed.

the

appear

They

the

seems like

all

of

market

which

cannot

circuit

would

the

entered

without

this

the

capitalist

the

L,

form

general

In

lost.

capitalist,

short,
but

a whole.

starts

with

the

total

production

they

-93-

of

the

previous
be broken

first

of

ments

of

personal

is

circuit
the

the

the

capital

total

that

before
annual
is
into

stock

process

(P...

those

of

(M...

society

of

before.

it

and the

for

this

The premise

P')

or

commodities
M').

ele-

circulation

The premise

year

of

anew C' must

capital

possible.

part

a portion
of

ntire

the

of

only

either

productive

is

production

only

commodity

into

and the

production

can begin

production

C and c,

consumption,

circuits

other

the

down into

be complete

must

Before

year.

Marx

for

the

conversion

that

make up
it

explained

this

way:
because the circuit
But just
its
C'... C' presupposes
within
sphere
industrial
in the form of C (equal
the existence
of other
capital
diverse
MP comprises
to L+ MP)--and
other
capitals...
clamours
--it
form of the circuit,
i. e.,
to be considered
not only as the general
form in which every single
industrial
capital
not only as a social
(except
invested)
hence not merely
when first
can be studied,
as
a form of movement
but simultaneously
individual
capitals,
capitalist
dustrial

class,
capital
the
with

mingles
M...

industrial
individual
common to all
capitals,
also
of the sum of the
as a form
of movement
of the
of the aggregate
capital
consequently
inin which
that
of each individual
a movement
interwhich
appears
as only
a partial
movement
4
by them...
other
and is necessitated
movements

indicates

M'

the self-expansion
of the
side,
process;
of the entire
purpose
advanced
P... P(P')
as a proof production
of capital
of the same or of
capital
cess of reproduction
a productive
with
in
itself
(accumulation).
increasing
Revealing
already
magnitude
its
initial
production,
commodity
as a form
of capitalist
extreme
from
individual
the
CT... C' comprises
consumption
productive
and
of value
and the self-expansion
start;
productive
consumption
Finally,
its
included
branch
therein
movement.
of
as
a
appear
only
into
in
C'
any
more
enter
cannot
a use-form
which
since
may exist
''s
C
it
is
indicated
that
the
outset
at
any process
of production,
by parts
of the product
constituents
of value
expressed
various
is
C'
C'...
different
to
whether
according
must occupy
a
position,
capital
social
of the total
regarded
as the form of the movement
industrial
capiof an individual
or as the independent
movement
its
beyond
lead
tal.
the
All
these
us
circuit
of
peculiarities
individual
isolated
capmerely
of
some
own confines
as an
circuit
5
ital.
the value
only
as the
capital-value,
indicates
the process

In other
ital

which

dividual
is

interlink

must

ities

in

words,

with

represent

consumption
this

sense

from

that

all

the
the

very

as well
we must

of

commodities

aspects

of

the

of

circuit

other

commodity

as those
take

the

outset

commodof

production--means

sentence

cap-

commodity

capitalists,

productive

last

of

consumption.
in

the

passage

It

in-

-94just

What for

cited.

commodity

is

capital,

consumption

ual

of

the

it

large

is

are

gularities
Since

is

It

of

simple

in

C'...
C'
it
turns

of

either

an element

What is
it

society,
for

commodity

thus

commodity-product,

the

from

here

and expanded

that

for

use

the

these

all

of

his

commodity-

the

society

form

of

to

study

Marx began

that

from

reproduction

But

material,

individ-

taken

clear

capitalist

capital.
the

what

is

his

of

more,

continued

individual

the

deal

a great

is.

commodities

his

as his

capital.

necessary
For

simply

matters

purchaser

capital

as a whole.

C',

product,

its

productive

total

commodities

economy

for

of

the

of

standpoint
types

or

is,

one capitalist

at

these
the

re-

reproduction.

is the total
(total
starting
point
product
value),
out that...
reproduction
on an extended
scale...
to be
can take
place
only
when the part
of the surplus
product
the material
capitalized
already
contains
elements
of the additionthat
therefore,
al productive
capital;
so far
as the production
the

of one year serves


as the premise
of the following
year's
production
or so far as this
can take place
simultaneously
with the prois
cess of simple
reproduction
within
one year,
surplus
product
in

at once produced
tions
of additional
the substance
only
creates
additional

It

was indeed

tion"

foundation

that

duction.

cause
tion

ists
our

C'...

production
commodity

because
forms

of

the

C'...

C',

and not

express

assume

cannot

begin

involving
is

a similar

distinction
commodities);

discre-

and true
P...

P, the

process
other

of

repro-

capitals
and be-

outset,

without

the

complete

the

other

capitals

of

the

particular

at

all

made between

produced
is

the

presumes
the

functional

different

very

immediately

commodities

in

it

Because

various

capitalist's

"great

as workers,

capital,

a distinction

(and hence
first

process

the

must

peculiar.

as well

cited

formulae

three
capital

is

C'

circuit

Economique.
all

individual

any

the

of

that

capitalists,

the

ciety;
use

then,

But

and other

Tableau

Marx

that

who made the

his

of

We see,
forms

basis

on this

Quesnay,

of

it
to perform
the funca form which
enables
Increased
productivity
can increase
capital.
but not
its
but therewith
it
of capital
value;
6
for
the self-expansion
of that
material
value.

by these

other

circula-

capital-

made by them as purchasers

and because

the

circuit

so-

starts

of

-95out

by analyzing

for

all

these

reasons

Marx

the

analysis

of

for

point

Marx,

to

wanted

Our aims

than

we have

were

at

the

schemes

individual

capitals.

Second,
that

the

any of
must

following
the

which

its

case

this

what

Third,

this

of
the
It

commodity
overall
is

the

process

place

cap-

"metamorphosed"

use them

to

he

since
in

reveal

all

as much

as a whole.

analysis

upon

is

series

what

represents

show

for

in

capital,
it

out,

and year
where

anew

through

process

transformations

of

of

start

will

production

in

re-

Each year's

reproduction.

year

the

sense

capital

In order

form

that

forth

metamorphosis

a continuous

reproduced.
in

with

of

that

industrial

of

which

is

the

them

put

analysis
In

of

dream up

not

he derived

Although

Capital.

a process

did

Marx

in

each and
in

we end up with--and

can be recommenced.

relations

take

capital.

was natural,

production

circuits

basis

function

we began

cycle

cally-specific
never

to

starting

industrial

of

them on the

of

Production

a continuing

way the

is

system

forms,

II

various

the

year.

capitalist

undergo

every

the

represents

to

air.

based

Marx's

production

capitalist

is

show that

thin

of

Volume

of

presume

already

end product

out

to

clearly

beginning

capital

capitalist

important

schemes

production

in

it

8
Quesnay,
he quite

right

This

be his

social

circuits

before--

year

limited.

much more

we think

of

total

done.

he wanted

process

the

of

the

of

had to

this

various

by which

paths

the

about

reproduction

from

movement

and subtleties;

First,
his

the

product

that

more detail
the

total

discerned

the

explore

as he could

the

examined

details

their

to

course,

of

far

in

ital

happens

what

directly.

circulation,
circuit.

production

of

reproduction

of

capitalist
At

all

at

of

the

production

commodities,

which

it

upon

premised

the

requires

beginning
is
rarely

the

Production

production.
times

whether
Capitalist

is

or

in

production
emerge

historican

intervention
the
for
from

middle

of

exchange.
the

-96-

production

capitalist

cific

into
use

commodities

exists

this

last

to

enough
ducts

we have

understand.

in

capitalist

for

the

The worker
or her

ity.

work
the

work.

value.

out

to

Marx did

Marx,

But
either
that

labor

production

of

in

the
in

consumes
is

this
repeat

not
or

the

prove

enough

the

much
it-

longer

than
the

allow

Marx's

of
it

is

than

here.

raising

validity
us

to

much less

values

for

abil-

receives

deal

we are

himself;

laboring

that

commodities

point

exchange.

translates

a great

labor

his

The ability

power.

for

she has,

ability

ex-

workers).

an even
of

the

money in

of

also

capitalist
laboring

by this

contained

well

the

If

he or

quantum

pro-

money capital,

group

in

simple

But

sum of

(or

engages

this

production

his

of

commodity

a comparable

to

process

part

com-

physical

capitalist.

a certain

only

is

production

altogether.

a worker

the

and labor

production

tangible

matter

The capitalist

The laborer

she produces.
not

the

produced

labor

corresponding

We are

of

the

takes

of

of

Throughout

capital?

means of

he advances

capitalist

according

the

another

abilities

work.

process

in

endures

he or

is

the

produced

What are

some particular

circuits

power,

commodities

to

of

money and receives

the

laborer

of

the

Of course,

into

power

laboring

to

capacity

more--in

process

labor

sells

He advances

all,

any one of our

M, and purchases
change

They

after

class

already

more.

them as means of
of

labor

of

a bit

productive

are,

have

that

latter

the

have

and circulation

productive

production

self

designated

that

spe-

be trans-

times

all

the

market.

into

make up a capitalist's

the

of

on the

for

commodities

capitalists

looking

at

other

presumes

exchange

The production

power.

into

it

can reenter

They must

them.

other

bears

point

that

section

the

and that

they

which

further

This

them for

them and offer

modities

in

and then

money,

form.

appropriate

This

a form

who produces

first

formed,

in

process

only

theory
an

assumption.
What is

crucial

is

the

series

of

exchanges

that

goes

on here.

For

-97the

worker
it

and spend

is
this

of

quality

tion

power

circuits

that

level

the

dividual

in

capital,

his

possession.
their

consumed

first

on his

market

a source

it

cycle

to

of

labor

power,

that

the

nical

period

process

after
of

proportions

reproduction
capital

duction,

of

wage

for

it

just

not

a given

set

of

laborer.

This

this

only

historical

this

social

relationship

not

go on,

could

character.
between

not
if

social

establish

capitalist

the

is

that

a commodity,

well

The worker

the

itself
production

Just

as

to

is

the

that

gives
not

repro-

capitalism
reproduce

and wage laborers,

is

tech-

between

capitalist

as a particular

find
we see

It

of

could

the

the

whereby

relations--that
basis

con-

will

Thus

expanded.

the

find

he

that

to

the

will

a process

capitalism

capitalists

return

purchase.

or

spends

must

presumes

social
real

worker

a capitalist

relationship
If

she has

nothing--nothing,

for

of

is

Conversely,

so it

are

is

in

When he or

live.

that

available
is

remains

to

production

specific

tion.

period,

always

The worker

order

sale,

forms,

money;

maintained

its

it

for

in-

of

money-cum-other-commodities.

presumes

reproduction

process

and

capital

he needs

production

in

source

empty-handed.

worker.

receives

power

a constant

potentially.

consumption.

labor

of

only
for

The worker

of

reproduction

revenue

at

our

market

This

work.

capitalist

individual

a seller

means

of

the

goes.

her

or

as

tinued

is

to

ability

produc-

on the

have

they

subsistence,

further

sell

And so the

go out

The

We saw from

and his

capital

least
one of its various
is
This/simply
not so for the

means of

it

but

enough,
must

He need never

peculiar

means of

and selling

his

renew

could

and capitalist.

reproduced.

at

their

except

both

capitalist

laborer

the

a command over

by producing

the

we see the

laborer

constantly

merely

consumption.

His

is

will

is,

that

these

here

But

between

process

that

capitalist

Without

obvious

capital,

and labor

various

is,

exchange

from

she receives

subsistence

childishly

possesses

capitalist

money he or

the

on means of

live--that

not

it

take

must

mode of

be halted

this

it

could
producsocial

-98-

relationship
happen

through

For

that

revolutionary

us these

the

of

sis

be irrevocably

must

circuits

students

Marxist

of

we think,

from

strictly

algebraic

manner.

which

Marx highlighted
of

is

more detailed
need his
ist
at

fering

in

Volume

of

a brief

aspect

of

II.

to

of

Basics

give

in

simple

in

replacement

in

a given
of

account

our

Yet

not

true

both

of

industrial
the

we will

of

make all

anof
the

on it).
of

Nor
capital-

these

of

Hence,

schemes.
of

his

rudiments

process

a fog.

through

the

based

were

and by stressing

of

the

of

their

long-standing

about

capital,

of

are

by ofbetween

capital
social-relations

our

subsequent

classical

reproduction,

we want

to

draw

we need

in

order

which

is

of

to:

develop
the

specific

will

of

the

discussion

1)Clarify

certain

and their

Marx's

eco-

they
use

Marx's

schemes

reproduction

and 2)further

out

more than

on Marxist

works

Preobrazhensky's

the

is

This

mechanics.

expanded

we do not

schemes

reproduction

of

treatment

what

society,

fixed

of
this

that

metamorphoses

use

Instead

points

of

reproduction

intricacies

the

reproduction

crucial--dimension

Reproduction

Marx's

VKA 17.

a device

II

in

other,

clear

methodological
analyzing

Simple

a detailed

As for

become quite
schemes

the

are

schemes

analysis

in

schemes

presented

follow.

with

done

the

of

we hope

to

of

anyone

forms,

reproduction,

adequately
nomics.

survey

dealing

In
wish

use

easier

The

leave

Marx's

reproduction

usually

(although

analy-

difficulties

the

as a reproductive

reproduction

functional

discussion

of

investigations

relations

different

its

Marx's
grasp

of

are

the

reality

the

with

they

to

analysis

root

In

that

difficult

production
the

have

production.

not

can only

Marx's

of

Many of

a particular--but

capitalist

circulation

fact

the

implications

capital.

economics

emanate,

alysis

important

most

industrial

of

that

action.

the

are

destroyed--something

role
of

analysis

aspect

of

his

in
the

-99discussion

show that

we will
deriving

the
of

economy

petty

immediately

most

dealt

latter,

the

Volume

II

simple

and expanded

for

schemes

was to

in

use

capital

of

(or

and capitalist

Preobrazhensky

that

In

within

is

that

schemes

Preobrazhensky.

of

study

the

of

to

related

with

in

the

next

there

is

the

basis
in

reproduction

developing-socialist)

his

our

own

chapter,
for

a mixed

production

"Equilibrium"

articles

1926

of

and 1927.
scheme for

Marx's

He divides

known.

simple

social

produces

means of

means of

consumption

reproduction

under

into

production

two departments,

(department

production

(department

I),

II);

and it

simplest

of

analysis

of

how,

accumulation

of

capital

takes

and are

restored,

so as to

numerical

scheme

his

tion
in

circulate
the

next

the

of

either
dealing

longer

social

begin

with

ism each particular


of

capital)

on the

or means of

unit

constant

of

of

market,

and is

is

able

to

however--the

ious

one hand,

same manner,

individual

on the
explain.

other--are

capitals,
not

on the
identical,

to

begin

as Marx

of

no

produc-

once again

the

to

process

that

of
to

the

great

no
of

under

capital-

its

needed

its

of

its

of

which

we are

procure
all

of

reproduction

of

productive

own product
all

reproduction

goes

sum total

production,

(i. e.,
dispose

the

because

able

thus being able


of
The two processes/
reproduction,
the

where

and enterprises

only

course,

capital

and variable

but

The process

production

he begins

production
consumption

consumption

place,

i. e.,
elements

is

production

aggregates.

produces

as follows:

is

sub-branches

simple
takes

of

which

that

production

individual

the

all

means of

capital

elements

branches

these

of

production

produce

the

each

here

conditions,

well

that

which

from

is

individual

the

place,

and that

+ 1000v + 1000s = 6000 means of


+ 500v + 500s = 3000 means of

1.4000c
2000c
II.
Although

His

year.

the

under

is

capitalism

over
of

social
lengths

in

again.
the

var-

capital
to

-100For our present


this
purpose
process
of reproduction
must be studied from the point
of view of the replacement
of the value
as
well as the substance
of the individual
component parts
of C' [the
We cannot
commodity-product].
rest
content
any longer,
as we did
in the analysis
of the value of the product
of the individual
capital,
that
the individual
with the assumption
capitalist
can first
into
the component parts
convert
of his capital
money by the sale
them into productive
of his commodities,
and then reconvert
capital
by renewed purchase
in the comof the elements
of production
Inasmuch as those elements
market.
modity
of production
are by
they represent
nature
material,
as much a constituent
of the social
finished
capital
as the individual
product,
which is exchanged for
by them.
Contrariwise
them and replaced
the movement of that portion
of the social
commodity-product
which is consumed by the labin expending
his wages, and by the capitalist
orer in expending
his surplus-value,
part
of the movement
not only forms an integral
but intermingles
of the total
product
with the movements of the
individual
this
and therefore
process
cannot be explaincapitals,
it.
ed by merely
assuming
is this:
How is the capThe question
at confronts
us directly
in value out of the annual
ital
replaced
consumed in production
intertwine
and how does the movement of this
replacement
product
by the capitalists
and
of the surplus-value
with the consumption
It is then first
a matter
of reproof the wages by the laborers?
10
duction
on a simple
scale.
With

it

tion

This

ponent.
ious

whole

the
in

place

their

with

capital

its

reproduce

natura.

even though

equivalent

ially

useful

sists

of

simply

means of
II,

nor
of

which

cannot

eat

I possesses

for

form.

Department

off

both
It

v and s,

must

production,
on the

In
it

i. e.,

subsistence,

department

value

it.

within

consumption
People

material

capital,

variable

form

for
other

the

its

means of

it

does
this

useful

value

cannot

its

surplus

workers
value,

Therefore,
a

commodity-product
them

equivalent,
consumption.

just

opposite

the

i. e.,
live,

capitalists

possess

var-

it

means of
has

the

as a

production.

annual
not

com-

reproduction

place,

I's

department

produc-

department

provide

reproduce

its

hand,

the

second

cannot

in

exchange

the

for

sim-

capital

between

exchange

department--nonetheless,
its

entirely

means of

means of

in

means of

only

own constant

internal

require

the

within

its

scheme for

the

at

I produces

reproduce

place

look

another

department

no doubt

will

constant
takes

first

the

enterprises
the

us take

Because

in

can

let

mind

reproduction.

ple

of

in

this

in

a mater-

which

con-

problem.

-101It

produces
their

with
iable
is,

means of

necessary

its

reproduce
surplus

own annual

both

workers

department

tion

of

capital

component

too,

the

productively-useful
is

possesses

means of

duction.

Quite

take

of

material

equal.

as means of
II

(which

production

If

elements
department

exists

department

exchange,

material

the

department

that

and department

means of
the

is

department

needs,

that

II
it

receives

needs
required

is

equivalent

it

will

exchange

depart-

the
the

produc-

worn out
its

production

it

re-

means of

consumption.
for

production

for

means of

its

the

value

value

constant
is

respective
production

Thus Marx

equivalent

In

consumption

capital,

that

all.

is,

it
the

The value

departments
worth

of

terms

means of

not

pro-

equivalent

consumption).

the

which

reproduction

simple

exchange

This

for

II,

each other.

for

condition

I obtains

production

and department

with

as means of

I has means of

workers

in

exchange

must

production)

by the

its

means of

possesses

that

as well.

II.

represented

means of

consumption,

the

its

themselves.

production

I would

(that

consumption

in)

means of
of

var-

exchange

of

replace

which

of

basic

of

department

investing
must

the

which

of

by feeding

form

means of

they

fund

physical

I,

consumption

naturally

(existing

v+s

c of

for

concluded

place

value

department

exchange

capital,
of

out

some internal

just

II

its

no accumulation

within

(or

workers

consumption

and capitalists

upon

the

means of

What we have
must

this

exchange

must

workers

equivalent
in

is

entire

produce

the

its

of

however,

It,

the

Department

by a value

exists,

immediately

cannot

of

individually)

reproduced

by laboring

production.

quires--it

of

just

means of

product

it

II

any more than

I can consume

constant

is

fund

may require

as a whole

its

reproduce

as there

consumed
this

is,

their

so long

Once again,

ment

to

entirely

but

(that

with

and capitalists

and capitalists,

that

is

department,

Unfortunately,

annual

value,

product.

the

within

capitalists

both

can provide

subsistence

surplus
value

It

consumption.

means of

and its

capital),

and the

of

only

2000 for

must

of
be

which

-102it

the

needs
if

work

department

means of

means of

for

means of

dispose

of;

means of

in

discussion,
the

them.

just

it

social

necessary

to

to

say

that

and revenue;
to
year's

in

product

of

the

role

breakdown

consumption

of
of

to

department

of
offer)
I did

would

to

produce

of

values

not

on the
(here

as it

ensue

200
cut

the

this

account
such

and articles

of

matters

II's

some of
elementary
a few

only

analysis
The dis-

versus
are

11

pre-

the

new-

differ-

and that

production

product
etc.

his

between

capitals
and the

luxury;

of

as:

product

individual

department

in

Marx's

and how these

money capital

early

with

differentiation

annual

labor

of

re-

fundamen-

seemingly

deal

we will

the

very

analysis

that

simple

the

establishes

a detailed

the

of

conditions

and IIc

I(v+s)

and cover

current

the

basic

a proper

transferred

the

consumption

have

not

would

Marx

purposes

of the

capital;

a loss

the

give

intricate

capital

reflected

continue

and complications

be quite

value

of

between

For our

of

etc.

point.

proceeds

to

consumption

reproduction

and a crisis

starting

required

have a deficit

(which

suffer

still

fund

I did

simple

not

would

workers,

exchange

value

money material;
of

the

even

could

summary

problems

to

II
It

off

little

Suffice

ly-created

the

consumption

consumption),

laid

viously-created

ently

means of

future.

between

tinctions

department

of

1800 in

means of

would

(which

conditions

embodies.

have

would

still

and then

relationship
of

II

department

and had only


II

its

but

I had,

department

reproduce

of

essential

if

I could

the

relationship

but

department

Marx this
is

consumption

only

department

If

offer.

2000 in

means of

production
tal

means of

exchange;

200 in

production,

to

same value

and department

unsold

For

the

will

2000 and has

worth

and had

Then the

same scale

back

production

production

of

be satisfied

in

means of

deal

the

production

full,

in

need).

needs

to

then

and a surplus
not

consumption,

1800 in

production

[1800(v+s)]

means of

of

only

2000 in

200 in

II

consumption

a need

say,

in

same amount

of
the

of

into

articles

Only

then

would

-103full

the

import

analysis

the

of

or

Returning
we see is
could
ing

that

to

their

of

production

it

requires,

ists
is

in

would

the

is

a problem
The vehicle
no longer

just

of

for

this

If

reproduced.
geable

product

though

it

simply

capital-value
on in

the

capital-value

remains

at

as in
I(v+s)

a part

of
its

changes

all

circuit).
is

at

only

of

variable

the

I's

of

But

both

potentially

the

the

sec-

through

a process

the

and change
this

and their

Money here

form.

functional

money and commodity


capital.

In

bebe

I's

exchantimes,

all

however,

As money,

(v remains
the

it

itself

of
at

capital

as

value.

payment;

v part

IIc

confronts

M... M1, must

industrial

variable

previous

circulation.

circuit

of

in

or means of

capital-value
regardless

of

identified

exchange

monetary

external

reproduction

production

already

we see that

times,
in

has

value

is

a metamorphosis

undergo

is

pro-

by money.

means of

elements

metamorphosis

which,

I's

in

The obstacle

distribution

the

exchange

described

Marx

material

we look

of

is

as a measure

frequently
part

can only

that

seen

the

functions

impossible.

Each must

And we have
both

is

I(v+s)

consumption.

of

This

As we demonstrated

which

reproduction

and capital-

its

organizing

means

workers

to

reproduction

accord-

consumption

reproduction--it

economy.

comes money capital,

is

simple

products

means of

them out

efficiently

a circuit

in means of

parcel

problem

exchangeable

the

a moment.

two departments
the

its

for

return

in

first

the

the

and distribute

proportions.

market

simple

form.

then

not

elements

in

if

give

be shown sim-

ourselves

however,

matter

I could

II

one of

circulation,
In

department

appropriate

This

easy

was static

would

point

schemes,

commodities,

could

reproduction

last

this

upon

be a very

department

of

his

that

and any notion

quantitative,

reproduction

If

it

a capitalist,

its

it

to

the

cedure.

of

the

a technical

not

tion,

to

use.

essentially
touch

swap their

merely

and relations

even

We will

untenable.

become clear;

study

proportions

"model-building"
ply

Marx's

of

of

part

its

form

it

form

this

the

case

it

takes

of

-104-

its
money

functioning

converted

into

labor

of

power

being

is

It
tion

with

money,

or renewal

his

M... MI has

of

tion

place.

not

usable

potentially

the

is

production

capital--for

undergoing

the

capitalist

begins

capital.

This

labor

of

this

variis

then

only

of

and capable

con-

reappearance

in the form

Only
of

process

inite

are

use values

that

money,

the

along
ductive

path

self-expan-

duct,

C',

productive
Yet
in

if

end.

For

this

in

both

department

to

start

Money must

departments

so that

it

is

must

the

this

the

case
II

it

into

means of

exist

said,

is

there

a def-

that
specific

be converted

first
is

one step

the

into

further

elements

department

with

money,

only

potential

They are

same with

of

pro-

II.

It

a commodity-pro-

and only

then

into

production.
I must

circuit,

sell

we would

as a reserve

can be advanced

produc-

only

also

value.

must

and department

reproduction

previously

of

with

The commodities

begin

still

begin

that

as acquiring

be turned

first

must

capital,

order

It

pro-

commodity-product

is

and which

so far

concerned.

IIc.

which

equivalent

circulation

is

they

mean that

as we have

be sure,

circulation.

Thus

the

established

embodiment

value.

a universal
of

already
of

a universal

to

acquisi-

reproduction

still

is,

It

capital.

not

the

money before

into

however,

I,

Money,

the

must

be converted

department

process

possess

capital

replace

to

capital.

the

not

is

which

has

But we have
in

make up C'

The capitalist

C'.

does

of

point

starting

as variable

capital.
sequence

that

productive

For

variable

variable

the

M, and upon

as variable

however,

which

can take
simply

dead

the

capital

C'...

to

commodity-product

C',

in

become the

suddenly

as opposed

cess,

must

into

back

is

it

commodity-capital

as a commodity.

market

productive

of

case

upon

conditional

being

its

12

sion.

is

the

functioning

the

of

part

capital

converted

functioning

capital-value

able

in

power;

on the

actually

power

it

labor

upon C'

ditional

as variable

is

in

and therefore

at

their

product,

soon be in
least
initiate

one of
cir-

-105-

is

culation.

This

historical

assumption--its
as the

capital

In the

his

to

initial
their

workers

new value

products

that

bor

to

the

means of

production

in

form

the

he employs.

only
II

it

uses

has taken

this

to

money--their

purchase
in

place

this

is

far

it

Iv,

first

form

is

simple

expended,

and the

an even

exchange.

in

labor

and has been expended


in means of

Iv

shape

of

which

he gave up a certain

latter,
if

takes

he finds

which

for

equivalent
Iv

costs

and then

to
in

this
in

reproduce,

The circuit,
changes

have

been

create

labor

of
fit

for

He,

and in

however,

return

which

too,

in

it

has

not

yet

only

the

workers

in

the

next

in

the

for

period,

means of
has

given

up labor

of

its

altered

He can restore

then,

complete.

and received

commodities

he has received

is

So

now has money,

for

he consumes.

The labor

product.

money,

power.

work

He has

equivalent.

objects

equal,

II.

the

What

I has advan-

power.

in

The worker

quantity

I will

Iv.

of
of

latter

new values,

means

of

amount

labor

the

after

production.

department

the

up Iv

workers

capital-value--when

expropriates

He has given

wages

capitalist

purchase

The capitalist

money and exchanges

a value

useful

to

a commodity,

make himself

and thereby

he then

production

la-

their

the

of

to

as

These

work.

The capitalists
variable

capitalist

to

reproduce
of

power

receive

advanced

circuit?

capital-

money the

labor

II.

and then,

power,

they

this

the

they

has

I that

application

which

money they

He receives

ced money as wages.


power

means of

13

department

which

an

merchant

money,

The collective

for

i. e.,
the

is

the

with

by department

produced

back

get

use

from

exchange

equivalent,

The workers

consumption

In

money.

a commodity

receives

of

of

it

wages,

result

of

is

It

make.

proper.

advance.

the

exist

emrgence

production

in

power

the

us assume that

and makes the

I advances

of

let

case

present

is

capitalist

to

assumption

validity

of

prius

such a reserve
ist

an unreasonable

not

the
only

consumption,

exchanged

a value

power

that

Iv,

first

in

Although

all

the

money

14

department

I have

ex-

found

-106-

in

what
ment

I have means of

as they
in

the

need

or

is

Department

II

needs

for

valent
exchange

for

partment

II

ists

of

I in

in

its

ers

begin

to

production

now has part


part

of

the

the

and the

vanced
that

advanced

dition

of

to

process
Here

let

must

now complete,

has been
circuit

it.

This,

only

money.

They will

duction

for

money,

that

it

fraction

eventually

regard

between

is

purchase

the

and in

return

half

the

Is

their

workII

Department

go on as well--a
least

at

I's

exchange

of

II's

constant

condition

to

as refund
capital.
to

specific

I(v+s)

the

and the
of

capitalists

remainder

of

I's

acquire

in

full

the

bit

every

a crucial

play

to

Decapital

of

return
is

covered

capital-

The money originally

established:

will

15

to

additional

equality

still
with

portion

capitalism,

as it

place

us suppose

under

here,

we have
take

must

as the

it

note

Even so,

is

variable

De-

Iv.

to

again

The circuit
the

the

worth

period.

next

in

variable

requires

an important

the

the

an equi-

obvious.

from

original

it

we see that

reproduction

important

can advance

an equivalent

begin

to

they
in

is

production

orII.

of

workers

emanated

their

has

It

next

back

of

reproduction

the

once

must

department

Iv.

capital

of

reproduction

capitalist

which

constant

reproduction

Already

means of

once more

by Iv.

represented

gards

money,

(which

money

now have

form,

from

them,

had advanced

of

What happens

for

place)

capitalists

initial

this

capital

amount

received

production

consume

cannot

money they

the

them

to

means of

capitalists

of

it

which

the

depart-

of
no use

variable

the

of

consumption.

first

these
workers

to

capital

exchanges

the

I's

partment

money,

means of
then

hands

the

constant

in

this

capital--the

of

are

advance

What happened

now in

It

which

The capitalists'

otherwise.

iginally?

Iv

worth

They cannot

as money.

exist

again

production

The capitalists

values.

use

as variable

period

productively

of

exist.

currently
next

form

the

they

department

as much a conand IIc.

role

other

the

on.

The same
half

of

who advance

disposable
rest

is

It

later

circuit.

II

ad-

IIc.
the

means of
of

their

pro-

-107-

capital.

constant

in means of

Is

of

II

of

I have

got

have

Is

in

shape

now have

II

of

back

ments

have

tion;

I has means of

what

they

more than
in

In fact,

the

surplus

employed

consumed

II

could

the

under

the

constant

capital

not

achieve

restore
could

discussion

are

well

Marx's
is

most

already

abstract

introduced,

the

production

a very

take

through

ically-specific
talist
ficulties

mere

the

economy.
in

the

By extension

any system

of

of

of

both

cases.

somthing

extra,
they

workers

assumes

is

total-

reproduction--department
had started

production

reproduction.

the

of

mechanics
have

nor

repro-

we exhausted
basic

certain
important

three

above

capital,

simple

over

gone

highlight
the

industrial

of

points.

discussion

that

by the

complications

Preobrazhensky)

even

subsequently

exchange

The fact

that

monetary

circulation

is

an histor-

development

of

the

of

we can

the

expect

based

to

on market

makes

simple

monetary

result

economy

in

Marx

unencumbered

process.

condition,

to

(including

mediation

it

produc-

money advanced

by the

produced

We have

from

clear

supposition

complex

16

order

conditions,

writers

received

elsewhere;

subject.

in

analysis

I have

metamorphoses

so much with

the

source

simple

simple

explained
of

its

depart-

up anything

as the

value--which

the

of

here

concerned

It

surplus

and both

one has given

products

in

Marx and later

place

the

consumption

our

First.

in

embodied

own exposition
of

department

and

The capitalists

has means of

II

to

as personal

which

aspects

has returned
of

II.

exchange,

this

it

not

duction,

that

for

And without

As with

Marx's

had available

capitalists

not

i. e.,

we are

Neither

and now

consumption,

advanced,

form:

consumption.

The capital-

commodities,

means of

initially

an equivalent

corrected.

department

in material

need

first

value

ly

with,

them from

by each department

turn

the

they

hands

exchangeable

money they

the

easily

They need

money.

by purchasing

these

acquire

of

is

their

all

of

rid

has on its

This

consumption.

ists

the

however,

still,

reproduction

encounter
exchange

re-

must

the

capisame dif-

and a mature

-108-

monetary
cuss

expanded

there,

nor

ism,

in

the

ments
still

presume

present

in

1920's,

the

about

the

allow
cept

of

itical

(such

method

For

the

moment,

that

reality

implies

idea

is

simple

and tendencies

elaboration

of

conditions

sense,
are

of

of

the

bourgeois

of

in

both

achieved.

the

and thus

his

overall

it

would

take

the

the

our

us into
in

Any
"factors"

economic

society
The system

of

growth"

The
regular-

certain

capitalism

(and
as well).
is

the

Introduc-

following:

"balanced

out

conpol-

be seen

in

of

point

modern

III

permit

and Preobrazhensky.

Marx

post-capitalist

Volume

from

"balance"
even

use

when talking

be satisfied

out

point

reproduction

never

USSR in

therefore

must

or

of

entire

any analysis

which

we discussed

we must

development

for

Preobrazhensky's

of

It
which

to

and expanded

and limited
these

foreign

the

it

use

to

inseparable

state"

halt

term

process.

a static

a "steady

of

economics)

schemes of

ditional

however,

to

exchange

relationships

production

as a whole,

reproduction

as the

he does

and politics.

his

bourgeois

ities

philosophy

of

context

idea

of

we

Preobrazhensky's

the

use

reproduction

a proper

(and

as a category

not

those

practically

so that

economy,

tion.

is

equilibrium

the

by depart-

must

the

somewhat

(although
to

capital-

sufficient

in

like

Neither

and transformed.

clarify

expanded
of

will
factor

money,

Marx does

instead

is

commodities

economy

us to

but

or

proportions

circulation

that

schemes

simple

and value
values)

diswe
when

under

commodities

superseded

"

continuation

realm

this

extent

reproduction

of

reproduction

a complicating

totally

refers

NEP.

of

These

of

permits

economy under

their

at

exchange

"equilibrium.

of Capital),
conditions

the

been

This

Second.
term

material

becomes

to

case

simple

a commodity-socialist

has not

economy,

of

reproduction.

least

at

proper

then,

in

Soviet

the

the

mere production

interruption

This,

reproduction

the

be precisely

to

example

goods

continued

process.

the

the

that

and any

money,

the

in

can we assume that

guarantee

see this

reproduction

I and II

of

We will

system.

in

a conIn

constantly

-109-

in motion,

engendering

"stability"

are

conflict

only

Its

and contradiction.

relative,

never

moments

of

absolute.

inasmuch

But

as only one-sided
exchanges
are made, a number of
hand,
the
on
one
purchases
a number of mere sales on the othmere
the normal
we have seen that
exchange of the annual product
er--and
necessitates
of capitalism
such one-sided
on the basis
metamorphobalance
in
that
can be maintained
only on the assumption
ses--the
purchases
amount the value of the one-sided
and that
of the onefact
The
that
the production
sided sales tally.
of commodities
form of capitalist
is the general
implies
the role
production
which
in it not only as a medium of circulation,
but
money is playing
and engenders
also as money capital,
certain
conditions
of normal
to this
mode of production
and therefore
of the
exchange peculiar
it be on a simple
normal course of reproduction,
whether
or on an
scale--conditions
so many conditions
extended
which change into
into
so many possibilities
of abnormal
movement,
is itself
to the
a balance
owing
an accident
17
this
production.
of

since
of crises,
spontaneous
nature

The constant
supply
of labor
power on the part
of working
class
I, the reconversion
I into
the
of commodity
capital
of a portion
the replacement
of a portion
of
money form of variable
capital,
Ilc
II by natural
of constant
capital
capital
elements
commodity
demand
but
these
they
are
necessary
one
another,
premises
--all
including
brought
three proabout by a very complicated
process,
but
cesses of circulation
of one another
which occur independently
intermingle.
is so complicated
it offers
This process
that
ever
18
for
so many occasions
abnormally.
running
Marx arrives
sis

of

simple

to revealing

not

just

which

expanded

tion

that

the

to

are dealing

is

with

fund

a system

that

condition

is

but

can never

reach.

a point

the

only
is,

aside

the

latter

smoothly

it

must

department

is

constantly
which

capitalist

scale.
cru-

general,

is

starting

point

from

these

all

also

the

satisfy
IIc.

But

as we introduce

we also

production

excondi-

expandaccumu-

and see that

motion,

from

For

process-19

production,
in

analy-

is

which
in

I equals

and as soon

capitalist

around

not

in

of

of

analysis

reproduction

but

a moment

of

this

is

proceeds,

logic

the

of

his

on an expanded

reproduction
the

tendencies

means accumulation;

which

of

reproduction,

proceed

consumption

ed reproduction
lation,

than

other

reproduction

that

abstraction,

reproduction

nothing

panded

basic

an analytical

things,

to

simple
the

when he moves from

same conclusion

reproduction

Here he shows that


cial

the

at

we
see that

hovers,

-110The premise
I(v+s)
is equal to IIc,
that
of simple
reproduction,
is not only incompatible
with capitalist
production,
although
does not exclude
the possibility
in an industrial
this
that
cycle
total
of 10-11 years some year may show a smaller
than
production
the preceding
year,
so that not even simple
takes
reproduction
Besides
place compared to the preceding
that,
year.
considering
increase
in population
the natural
annual
simple
reproduction
that
larger
could take place only to the extent
a correspondingly
servants
would partake
number of unproductive
of the 1500 representing the aggregate
But accumulation
surplus-value.
of capital,
real
production,
capitalist
would be impossible
under such circumstances.
The fact
therefore
of capitalist
accumulation
the possexcludes
ibility
Nevertheless
it might occur
of IIc being equal to I(v+s).
in consequence
that
accumulation
even with capitalist
of the course
during
taken by the processes
of accumulation
a preceding
series
IIc might become not only equal but even
of production
of periods
bigger
This would mean an over-production
in II and
than I(v+s).
in any other
in
could not be adjusted
way than by a great
crash,
20
to I.
consequence
of which some capital
of II would get transferred
Preobrazhensky
more than
tion

under

between

the

this

tendency
before

writings

on equilibrium.

attempts

by even

into

we must

make a further

talking

reproduction

lationships
in

stressed
forget
is

true

movement
ily

the

same time

to

of

both

the

there

exchange
reveals

between
that

capital

these

to

light

of

Preobrazhensky

the

the
the

its

and IIc.

regularities

term

equilib-

Volume

I of

of

process

production

particular

social

As we have
section,

previous

reproduction
the

in

Already

society.

and of

I(v+s)

the

the

use of

of

and the

Marx discerns

social

Preobrazhensky's

turn

behind

lay

Introduction

that

as a

of

to

reproduction

at

imbalance

important

in

on method.

capitalist

when we look

the

is

more necessary
economists

reproduc-

and IIc

xamination
_:

22

this

the

he derives

It

Preobrazhensky's

what

was the

expanded

[I(v+s/x)]

be

as will

21

point

that

appropriate

the

bourgeois

about

explained

of

There

any

theorist.

In

and its

It

is
This/all

Third.

Marx

into

Marx,

of

reproduction.

we launch

"growth"

Capital

not

capitalist

sympathetic

a bourgeois

rium

of

own analysis

department

of

idea

this

(VKA 17).

fund

consumption

clear

his

capitalism

concrete

fundamental
get

when we discuss

clear

from

departed

never

schemes

Volume

of

regularities

individual

elements,

in

doing

are

those

of

already
we must

fundamental

Yet

re-

this
the

II.

in

the

primarMarx

at

reproduction

the

-111social

of specific
able

capital

tions,

or

is

not

simply

how money is

of

it

of wage labor;

the

a single

from

chase

ture

the

of

creation

ture,

of
as the

If

wealth.

capacities,

the

sphere

The same applies


by the
of

capitalist

a certain

to

capitalists

as a class.

tion

consumers

But they
half

of

ital

expresses.

the

reproduction

the

the

present

social

agents

the
In

of

function

also

a very

real

labor

department

II;

producers

of

take

the

of

movement

details

of

of

the
of

com-

will

all

23

circulation.

expropriated
both
the

and of

society

func-

capitalists
of

they

of

the

circulation.
the

are

in
the

accumulation,

take

one cannot

force

driving

place

other

of

capwithout
they

reproduction

expanded

of

be a rup-

reproduction

agents

the

and fuin

value

the

pur-

for

agents

and wage laborers--that

Thus

other.

of

the

capital;

relation--capitalists
The reproduction

must

There

of

and the

owners

they

function

that

reproduction

commodities

of

present,

surplus

commodity-product
simple

buyers

which

not

in

behind

that

as the

place.
or

Iv

that

reproduction

past,

does

class

repro-

process.

and as the
all

form

social

as the
but

produced,

movement

as the

of

power;

production

This

of

is

process

is

schemes
remember

cannot
of

reproduction

varifunc-

the

class

always

working

the

class.

portion

as the

the

reproduction

in

either

its

in

power

working

of

capital

we must

themselves

capitalists

new values,

social

these

have

the

the

within

labor

how the

expressions

commodity,

they

which

IIc

productive

acquire

shows

of

functions

class

of

modities

a portion

and algebraic

The working

to

advanced

and reproduction

how the

of

When we see in

against

numerical

sellers

a matter

simultaneously

duced as wage labor.


exchanges

The circulation

relations.

re-

capitalist

production.
This
ing
tions

the
it

and later,

explains

why so much of

circulation-reproduction
involves.

From his

expanded--reproduction,

Marx's

discussion

process
analysis

of
he then

to

the

the
is

devoted

is

particular

fundamentals
able

to

to

social
of

introduce

relatrela-

simple-more

-112into

and more complexities


for

relations,
the

instance,

capitalist

possible

of

system

and obtain

emergence

merchant

the

of

capital

modern

which

credit

system

precedes

as the

dominant

form

standpoint

it

quite

production

derivative

certain

of

or

and makes

economic

and so-

life.

cial

From this
the

nize

of

of

but

are
the

ideal

comprise
If
cause

capitalist

Soviet

resultant
ically
the

is

this

in

organization
socialist

duction

is
but

tions,

of

of

his

own use of

the

Soviet

transition
state

human labor

that
their

of

reproduction

reproduction

economy

demonstrate

of human

Preobrazhensky's

type

entire

to
analysis

of

of

value

problem

set

activity

of

that

law

repro-

expanded

rela-

social

in

he reveals
of

application

relations

society,

and

the

versus

of

the

theoret-

are

which

production

Soviet

is

analysis,

of

this,

Be-

Preobrazhensky.

conditions

And

that

25

obligatory

another.

themselves,

relations

economic

a given

economy,

in

of

and his

schemes

one particular

consciousness)

of

certain

political

his

The tendencies

transformation.

the

from

the

capitalist

of

so of

law

of

Preobrazhensky

development,

(the

power

of

moment.

regulators

regularities

premise

objects

of

of

As

social

object

and planning),
the

natural

equally

of

two antagonistic

life.

historical

specific

tendencies

accumulation
not

is

the

analysis

concrete

a given

realities

The very

categories

not

real,

it

as the

conflicting

embodied

at

Marx,

of

society,

of

the

of

the

are

which

society
true

his

They

analytical

bare

entire

we recog-

schemes.

complex

laying
24

Marx's

of

that

abstraction,
of

throughout

concepts

expression

task

is

own analysis

abstract

the

all

production.

schemes

developed

his

in

emphasized
they

he

which

society,

his

key

reproduction

portray

capitalist

the

of

is

an analytical

in

Marx

motion

construction

are

the

of

which

They

facilitate

which

character

models"

society.

and laws
the

formal

strictly

capitalist
tools

methodological

"objective

are not

of

the

presence

antecedent

the

them to

for

the

(and

one

too,

presupposes

with

all

of

its

-113social,

philosophical,

To summarize
of

the

will

ings

on expanded

prove

We have first
crucial

schemes
important

that

further

so far,

in

our

establish

of

ial

of

the

condition

in

economy;

a market
fact

and the
distinction

highly

under

between

the

are

might
of

concepts

from

arise

"equilibrium.
We are

articles
into

of

Marx's

which

use

of

the

to

are

the

dispel

of

as the
of

reproduction
to

it;

and the
repre-

real

be-

relations

introductory,

are

later

any

argument.
that

any misunderstandings

reproduction

schemes

or

from

the

notion

"
not

yet

to

ready

1926-27.

First,

treatment

of

already

there

prove

the

intimated
fundamental

leave

Marx

problem
above,
to

and move onto

of
the

almost

fixed

capital

relationships
all

of

our

Preobrazhensky's

digression

make a slight

we must

in-

production

capitalist--and

our

mater-

and as another,

ideas

these

build

the

algebraic

not),

substance

we will

of

valid,

revealing

Some of

are).

designed

the

As we have
will

upon

cautionary,

for

make up the
they

they

between

of

immanent

are

as objectively

device

and relations

process

nature

crises

(which

world

that

(which

other--society

Others

schemes

analytical

tween human beings

and provide

capitalism,

an outside

refined

contradictory

USSR.

the

circulation

the

of

writ-

inter-relations

the

monetary

continuation

fluid,

the

that,

of

sentations

the

of

of

a few ideas

and in

and as an exchange

role

use

Preobrazhensky's

categories

include

Marx's

at

and clarify

capitalism

basic

values

looked

of

modern

These

as an exchange

dispensable

emphasize

certain

analysis.

production;

we have

examination

under

reproduction
elements

to

mainly

reproduction

had to

implications.

political

discussion

our

reproduction

to

and

in

and go

some detail.

we will
subsequent

derive
study.

-114NOTES TO CHAPTER 1
Marx,

Vol.

(London,

1.

Karl

2.

Capital,

3.

Ibid,

p.

88.

4.

Ibid,

p.

99.

S.

Ibid,

pp.

100-101.

Our emphasis.

6.

Ibid,

pp.

101-102.

Our emphasis.

7.

Ibid,

p.

8.

"Letter
" July
in Marx and Engels,
Marx,
6,1863,
to Engels,
Selected
(Moscow,
1965),
142-45.
Marx referred
Correspondence
to Quespp.
Tableau
Economique
to study
as the first
scientific
nay's
attempt
in numerous
in
the regularities
of economic
reproduction
passages
For Quesnay,
Capital
Value.
and Theories
of Surplus
see Francois
Quesnay,
by Marguerite
Tableau
Economique,
translated
and edited
1972).
Kuczynski
L. Meek (London,
and Ronald

9.

(New
See in particular
Rosa Luxemburg,
The Accumulation
of Capital
Section
York,
1968),
One; and Paul Sweezy, Theory of Capitalist
(New York,
For an
1968),
Chapter
V and pp. 162-64.
Development
interesting,
but much more mathematically-oriented
treatment
of
Koshimura,
Capital
Reprothe reproduction
schemes, see Shinzaburo
book
The Koshimura
(Hove, Sussex,
1975).
duction
and Accumulation
schemes, without
covers only the very basics
of the reproduction
taking
we deal with in
modifications
up any of the complicating
deal with some of their
he does, however,
this
thesis;
more refinThough giving
the schemes a purely
exmathematical
ed aspects.
fairly
faithful
he remains
their
to Marx in stressing
plication
it is also written
exclusivenon-objective
nature;
unfortunately,
be inaccessible
ly in matrix
to most readers.
algebra,
and will

Capital,
Vol.

II,

(Moscow,

1967),

1970),
pp.

Chs.

IV U V.

57-64,

Our emphasis.

102.

10.

Capital,

11.

For a discussion
main discussion,

topic
and its relationship
of the latter
to Part I, below.
see the Appendix

12.

See Capital,

pp.

13.

that
It would seem that we are here anticipating
the problem
so preRosa Luxemburg in The Accumulation
and her
of Capital
occuppied
(London,
1972),
Accumulation
namely
Capital--An
Anti-Critique
of
the
realand
exchange
where the money comes from that
allow
will
ization
This is not entirely
so,
to take place.
of production
of accumulation.
since Luxemburg was concerned
with the problem
Nevertheless,
Luxemburg's
was an artithat
problem
we consider
found
ficially
be
in
its
within
that
created
one,
answer cannot
historical
the reproduction
premise
schemes, but only as the real
i. e., the development
capiof capitalist
of merchant
production,
tal and the eventual
system.
emergence of the modern credit

14.

It would have been quite


incorrect
to have said
He gives
gives up Iv in labor power.
up labor

II.

p.

II,

397.
to

our

450-51.

the laborer
that
power for the entire

-115day,

only part
working
of which is needed to cover Iv.
The rest,
goes to create
of course,
here represented
surplus
value,
by Is.
From the point
of view of the capitalist,
however,
the laborer
only gives up Iv, or an amount of labor
power equal to his wages,
is virtually
since the capitalist
oblivious
to the creation
of
He thinks
that the worker has labored
value.
surplus
day simall
his wages.
What is correct
ply to reproduce
to say is that the
Iv and receives
advances
capitalist
for it in Iv in
an equivalent
by the workers
he employs.
commodities,
produced
This represents
however.
In addition
only part
of the day's
product,
to this
for Iv the capitalist
"equivalent"
Is, which is
also receives
from Iv and exchanges
realized
separately
against
a different
(both in value and in use form;
of IIc
portion
to
see Appendix
Part I, below).
15.

Of course,
ing their
ity,
labor
of v--the
the workers

16.

Marx, for instance,


function
used his analysis
of money and its
develop
his analysis
the reproduction
to further
within
process
By the same token,
the following
of the modern credit
system.
passage from the chapter
on simple
reproduction
gives us some
idea of the real
into
complexities
monetary
exchange introduces
analysis
of the reproduction
schemes:

is that the workers,


the other
side of this
after
consumto the market as a commodmeans of subsistence,
return
This is the other
power.
condition
of the replacement
back their
capitalists
must receive
advanced money, and
must reappear
as sellers
of labor
power on the market.

an

"The fluxes
and refluxes
of money taking
place
spontaneously
on
in the exchange of the annual
the basis of capitalist
production
the one-time
to the full
products;
advances of fixed
capitals
extent of their
of this
value
value and the successive
extraction
from the circulation
in the course of years,
in other words,
their
in money-form
by the annual formation
gradual
reconstitution
of
hoards,
from the paraldifferent
a hoarding
which is essentially
lel accumulation
based on the annual production
of new
of hoards,
depending
lengths
the different
gold;
on the
of time for which,
duration
money must
of the production
period
of the commodities,
it can
be advanced,
and consequently
always hoarded anew before
be recovered
from the circulation
by the sale of the commodities;
lengths
the different
of time for which money must be advanced,
if only resulting
from the different
distances
of
of the places
in the
from their
furthermore
the differences
production
markets;
to the condition
of
magnitude
according
and period
of the reflux
in the various
lines
of
relative
size of the productive
supplies
business
businesses
and
of the same line,
and in the individual
hence the lengths
for which the elements
of constant
of periods
during
the year of reproduction-this
capital
are bought,
and all
these different
all
movement had only to
aspects
of spontaneous
in order to
be noted,
through
and made conspicuous,
experience,
to a methodical
of the
appliances
give rise
use of the mechanical
loanable
fishing
credit
system and to a real
out of available
"
II,
Capital,
capitals.
pp. 484-85.
17.

Capital,

18.

Ibid,

19.

We will

II,
pp.

pp.

498-99.

Our emphasis.

499-500.

not

deal

separately

with

the

mechanics

of

expanded

repro-

-116duction.

These will
become clearer
in discussing
Preobrazhensky's
in VKA 17 (see also Luxemburg and Sweezy,
analysis
in Note
cited
For the moment we need only mention
9, above).
that
expanded
between the consumption
also has the equality
reproduction
fund
I (v plus the consumed part of surplus
of department
value,
s/x)
but here it is a point
and IIc;
around which the process
revolves
is
never attained.
--it
20.

II,
This extremely
Capital,
important
pp. 524-25.
passages raises
have particular
a number of themes we will
to later
cause to return
First,
derives
on:
when we see how Preobrazhensky
the systematic
"over-accumulation"
fund of
of IIc as compared to the consumption
disproportion
I as the basic
inherent
in capitalist
expanded reproduction;
and second,
when we deal with the role of non-producin the Soviet
tive
consumption
system.

21.

See Introduction,

22.

I, Chapter
XXIII.
"But that which at first
Capital,
was but a
becomes, by the mere continuity
point,
starting
of the process,
by simple
the peculiar
reproduction,
result,
constantly
renewed
On the one hand, the
and perpetuated,
of capitalist
production.
incessantly
into
of production
process
converts
material
wealth
into means of creating
capital,
more wealth
and means of enjoyment
for the capitalist.
hand, the laborer,
On the other
on quitting
is what he was on entering
it,
the process,
a source of wealth,
his own.
bebut devoid
Since,
of all
means of making that wealth
fore entering
been alienhis own labor has already
on the process,
by the sale of labor
ated from himself
power, has been appropriated
it must, during
by the capitalist
and incorporated
with capital,
does not belong to him.
be realized
in a product
the process,
that
by which the
is also the process
Since the process
of production
is
the product
of the laborer
consumes labor
power,
capitalist
but into
incessantly
capiconverted,
commodities,
not only into
into means
into value
that
tal,
power,
sucks up the value-creating
into means of
buy the person of the laborer,
that
of subsistence
The laborer
therefore
that
conproduction
command the producers.
form
in
but
the
of
stantly
produces
objective
wealth,
material,
him;
dominates
that
and
and
exploits
capital,
of an alien
power
form
but
in
labor
the
the capitalist
power,
as constantly
produces
in
from
the
objects
of a subjective
separated
source of wealth,
he produces
in short
the
and by which it can alone be realized;
the
laborer,
but as a wage laborer.
This incessant
reproduction,
is the sine qua non of capitalist
properpetuation
of the laborer
duction.
" Capital,
I, pp. 580-71.

23.

Capital,

24.

in
17,
VKA
Preobrazhensky
insisted
this
point
on
unremittingly
Marx's
of the reproduction
analysis
when he repeatedly
warned that
and
of simple
the basic
principles
schemes established
abstract
but that
the need to study more concrete
expanded reproduction,
built
be
demanded
upon
this
that
analysis
economies
and societies
in
See
particular
and the abstractions
successively
removed.
VKA 17, pp. 35-6,47.

25.

For

II,

pp.

p.

15-17,

above.

420.

Preobrazhensky's
nomy see Introduction,

discussion
of
pp. 27-35.

the

categories

of

political

eco-

-117CHAPTER
MARX

initial

In Marx's
the

of

portions

be exchanged

ON THE

scheme of

is,

very

serious
of

take

place,

monetary

+ 500v

had to

exchange

is

this

that

durable
the

of

value

that

element
the

all

of

fuel,

fixed

capital

the

circulating

in

the

placed

in

lation

between

I(v+s)

What happens
last

realistic

assumption

of

economy.

the

if

at

and IIc
part

longer

of

than

the

of

one year's

is

to

intermediate
out

production,
then

basis

but
the

only
value

that

capital,

wear

more

the

not

production,

constant

case,

as the

transferred

time,

a tech-

physically

It

is

goods,
are

produc-

had to

be re-

or

our

which

and machinery
This,

after

capitalism,

or

time?

we can make under


Then a machine

this

however,

re-

original

hold.

plant

this

in

which

the

the

taken

for.

materials,

end of

the

is

could

in

being

c are

of

condi-

exchange

presupposes
This

employed

normal

circuit

we have

and tear,

would

turn

c stands

capital

of

the

in

notes

We presume,

economy.

what

all

fixed

complex

period

(raw

course

form

physical

capital

If

portion
of

consumed

wear

necessary

componentl

production

produced.

etc. ) and all

modern

remember

through

which,

commodities
its

had to

then

if

that

commodities.

the

production

of the means of

this

which
to

We must

tively

fixed

production,

one year

schemes.

total

of

the

the

that

Marx

now assumed

of

infrastructure
of

than

I and II

2000 IIc.

a fairly

required
classes

capitalist

fractions

large

it

though

advanced

nically

for

prevailed,

individual

the

we saw that

500s

We have up till

circulation

even

reproduction

departments

of

2000c

problem.

movement of

simple

CAPITAL

+ 1000s

+ 1000v

2000 I(v+s)

tions

OF FIXED

as follows:

II.
That

REPRODUCTION

commodity-product

were

1.4000c

worth,

say,

all,

make up the
is

any other

100 may last

for

the

only

form
ten

-118Each year,

years.

a value

transfer

is

it

tion

employed.
arbitrarily,

immediately

put

ing

(the

capital

iable

capital)

other

10 will

this

money,

until

after

longer

it

This

a great
Let
changed?
means of

is

value

again

the

of

means of
of

represents
in

means of

consumption).

the

be completely
against

past

present

equivalent
the

form

New values

consumed
those

labor

in

the

of

in

the

is

other.
is

used

They
no

up,

be replaced.

has not

machine

is

It

What is

IIc,

of

(c),

labor

added

exchange

present

(means
(and

which

labor

against
of

hence

of

exists
into
The
function

will

production).

as means of

past

newly

which

circulation.

(v+s),

ex-

circulation

be transformed

through

(i. e.,

form

through

and must

labor

being

physical

2000

also

must

whose consumption

capitalist.

scheme.

again

added

one

Why?

consumption

newly

of

be metamorphosed

There

hoard,

the

buy a new machine

to
type

exists

which

it

hoard

on the

has to

individual

the

reproduction

embodied

in

this

of

production,

a value

One,

need

to

varThe

will

on the

machine,

the

products.

money,

consumed--it

price

consumption.

for

their

two conditions.

must

the

money each year


100 in

be

circulat-

plus

10 in

as a whole.

and which

advanced

capital
of

for

market

money will

The capitalists

for

is 2000 I(v+s),

function

exchange

at

a value

as a replacement

to

the

the

value

money they

as so many means of

one represents

The other

that

society

2000 means of

an equal

the

this

would

whose produc-

on the

money.

productively

for

production,

physically

of

10 of

constant

accumulated
out

in

sold

replace

surplus
of

no difficulty

difficulty

There

worn

because

course,

of

adding

have

have

us look

form

year,

being

of

the

the

they

capitalists

changed).

portion

are

20),

to

circulation

completely

capable

of

of

a price

it

commodities

for

after

10 years

the

of

commodities

in

remain
year

value

realize

depreciation,

and equal

When these

into

and to

(assuming,

the

circulating

replace

Two, the

into

back

and have

can then

average

10 to

of

(say,
money

hand,

"

assuming

which
(i. e.,
old.

consumption)
replacement)

will
as

Values
must
will

-119p lace

take

only

Therefore,

in

for

money.

of

production
sold

its

not

used

physically
200 in

over

have to

not

all

of

of

it

is

that

II

does not

help

ter

Secondly,

need.

production

money it

have

tion
cause

to

it
to

when it

need

In

to

production

Ii's

replace
to

its

its

but

given

of

200 in

200 in

previous

keep part

200 in

them,

the

of

in

production.
200 in

the

means of

capital

de-

The result

consumption.
production

no mat-

however,

means of
of

that

doesn't

the

year,

gift

fixed

level.

but

hands

that

needed

a shortage

suffering

must

on its

this

back

Depart-

purchase-without-sale

II

means of

leftwill

consumption,
II

a virtual

I cutting

with
and II

II

does

this

here.

same scale,

whenever

place.

bought

be a crisis,

should
return

at

time.

machines.

future,

the

this

day when it

production

the

over-production

over-production,
if

in

(Marx's

200 but
keep

violated

this

of

as it

1800

present
of

it--department

means of
them

out

means

replace

will

means of

converse

has made department

advanced

the

towards

be available
took

I has a relative

it

of

IIc,

of

circulating

by a value
II

to

the

to

the

at

Department

purchase

im-

I needed

only

its

of

capital)

are

on producing

would

all

reproduction

200 in

transaction

it

(i. e.,

worn

may need

I kept

In addition,

its

I has
It

us here--if

would

the

department

needs

completely

money has returned

this

when the

of

simple

money for

department

partment

of

of

as a hoard.

means of

set

value

same value

however,

only

depreciated

the

buy the

because

It

saving

to

I will

money and purchase

buys,

fixed

its

of

another

I advanced

It

replacement.

Two conditions
ment

IIc

capital

money as a hoard,

replace

2000

capital

require

this

production.

up constant

II,

no longer

consumption.

fixed

from

take

will
of

and part

its

of

it

But

department

reproduction,

then

will

means of

capital

A portion

I.

means of
in

constant

II

of

production).

consumption

an equivalent

illustration)
of

means of

from

much in

value

process

Department

It

sold.
this

the

purchase

mediately

(means of

time

over

year
produc-

before

How do we resolve

I had

-120the

Perhaps

problem?

each year,

of production
II

the

whole

lot.

as fantastic

and surplus

personally)
up of

such

in means of

brings

in

present

the

II

kept

hoard

of

money until
of

up its

fixed

capitalist
the

is

capitalist

that

of

II's

but

will

accumulating

divides

their

fixed

replacement

in

we account

for:
of

part

must

cannot

complete

their

find

in

prior

not

capitalist

its

surplus

its

of

200

heart,
its

accumulated
with

the

with

a massive
logic

whole
and if

be sold,

it

is

and re-

circulation

II
toto,

How does

Is

for

the

of

Iv

the

their
of

sections:

and those

future.

At

equivalent
two

who only
our

for

additional

what

balance
an equal
portion

the

its

Those

in

part

who must

of

IIc

full,
Marx

replace

money for

exchange
of

part

and tear.

accumulate
of

do.

using

another

capital
wear

to

capitalists

kind,

same time,
fixed

out

set

in

capital

of

premises

Marx
of

portion

fixed

years.

into

is

a certain
their

the

within

This

be retiring

The exchange
of

a solution

year

a monetary

in

the

havoc

produced

every

department
capital

of

hook

the

What is

be replacing

will

capitalists

then

exchange

in

hoarded

only

I off

get

or
building

the

and diligently

and circulation.

have

money they

(and

goodness

wreak

we must

that
II

be realized

a halt.

production

in department

to

must

produce

we would

capitals

Marx notes

the

of

bargain

the

was ready

production.

clear

out

not
with

cause

to

re-

incompatible

and where

I were

is

this

productively

an additional

example,

of

capital,

comes to

production
It

it

individual

it

of

is

either

be earned,

must

with

part

produced

consumed,

on faith,

production

while

purchase

value

reserves

If,

crises.

not

totally

reproduction

that
it

that

buy

to

function

the

and socialism,

commodities

and un-

money and was ready

seems--except

where

them,

selling

when we discuss

capitalism

as it

production,

simple

under

advanced

a solution

capitalist

later,

see

in

amount

200 in means

an extra

them up without

an equal

We will
both

under

serves

keep on producing

storing

had accumulated

til

of

I could

look

IIc,

plus

that

II

after
the
is

-121to

prepared
ital

exchange

fixed

and whatever
division

Marx's

In such

a situation

200s of

department

I would

ment

section
it

it

must

case,

the
it

gets

just

as satisfactory

with

money it

That

the

the

money,

(2),

and needs

the

(1)

has

still

duction

from

modities,
sume;

It

money it
the

200c

is,

the

in

of

money,

I has
is

II,

is

its

which

thereby

production,
its

original

tremendously

is

department
have

There

from

hoard--it
not

it

buys

which

its

all

it

advance
significant.

will
of

It

adfrom

commodities
no further
II-section

200 in
what

I advances

money back

complete.

receives

full.

(2).

requires

is

in

Department

see.

II-section

of

obtained

consumption

back

this

II

we encoun-

department
to

easy

any way get

exchange

with
It

means of

conclusion

for

that

means of

that

has disposed

latter

received

I.

fact

in

as a whole

scheme.

the

commodities

cannot

circuit

and department
Marx's

of

this.

department

that

stem from

not

money which
this

We could

it

nec-

In

and it

receive

what

the

capital.
II

I purchased

and could

200 in

fixed

first

our

department

to

because

But

purchases.

from

department

200s worth

money for

II-section

(2)].

not

as opposed

purchase

vances

section

had advanced,

has received

has

the

II-

I has acquired

was department

to

a result

does

(2)

(1)],

from

consumption

(1)

of

money for

money depart-

this

Department

section

that

problem

means of

came from
returns

difficulty

the

could

[it

back

that

tered

[it

money

it

example,

200c in

With

purchase

Following

commodities

II-section

future

cap-

following:

the

exchange

and II-section

the

first

our

unlike

in

order.

consumption;

for

in

would

200c

in

production;

aside

set

advanced

is

have

200c

constant

retirement?

production.

the

purchase

means of

means of

essary

(1)

means of

Everything

in

needs

I's

then

(2).

(2)

circulating

for

we would

plus

II-section

its

ready

II,

200s in commodities
(1) 200c in money,

I.
II.

is

capital

department

of

for

as a replacement

means of

it

needs

in

procomcon-

productively

money return
In

any given

to

it.
period

-122the

of production,
replaced
form of

full

in

portion

must

IIc's

of

that

equal

fixed

capital

portion

is

which

is

which

and

retired
in

accumulated

the

a money equivalent.

is here evidently
The condition
fixed
that this
precedent
componII,
into money
of constant
ent part
capital
which is reconverted
to the full
of its value and therefore
extent
must be renewed in
kind each year (section
1), should be equal to the annual deprecifixed
II,
of the other
component part
ation
of constant
capital
in its old bodily
form and whose wear
to function
which continues
depreciation
in value,
to the commodand tear,
which it transfers
ities
in whose production
it is engaged,
is first
to be compensated
in money.
Such a balance
would seem to be a law of reproduction
is equivalent
This
in class
I,
to saying
that
on the same scale.
the proportional
division
puts
out the means of production,
which
it
must remain
since
produces
of labor
unchanged,
on the one hand
fixed
and on the other
circulating
component
parts
of the constant
11.4
of department
capital

We can illustrate
tion

both

within

division
II

that

must

200 in

of

section
requires

of

(1)

from

for

its
it

cannot

also

serious

than

of means of
have to

the

plight

production.

radically

200 in
Yet
(2),

has for

II

Thus
dispose

alter

sale

of,

100 in

of

on the
on the

I--a

account

of
for

it

and

is

simply

appear

would

as:

(1)

is

labor

within

it

100 in

with

of

100

II-section
even more

a like

amount

department

new distribution

sub-

that

all

perhaps
of

means

this

a shortage

same token,

re-

will

100 in

that

all

one hand,

other,

with

production

money is

shortage

this

that

altered

purchase
is

this

money and--what

The division
to

means of

By the

department

original

commodities

and 100 in

consumption).

of

than

I can only

left,
and,

our

money and II-section

because

I is

capital
balance

produc-

imagine

is

in

200 in

as with

and hoards

exchange

100c

exchange

production.

(means of

has a surplus

(2)

plus

total

But here

Is.

fixed

of

value

that

and that,

retirements

obtain

hoard.

commodities

unsold

II-section

department

money which
in

I will

means of

consumption

200 in

Then the

I can only

(1).

same,

a greater

money form.

that

clear

the

between

IIc

replace
in

II-section
ceive

I has

Imagine

simply.

very

stays

200s in commodities
(1) 300c in money,

I.
II.
is

I and II

within

accumulating

It

problem

department

assumption,
the

the

I would

between

-123and hoards.

retirements

department

within

the

II

in department

would

Alternatively,
II

have

might

100 from

need only

100 in money with


section

I's

demand for

partment
must

in

sell

purchase
200)

Even more

Because

(1).
cut
they
filled

needs

have,

each

their
suffer

try

its

300c

But
to

means of

production

sections

with-

department

of

money via

of

I's

production,
And this

is

would
in

in

to

(an over-production
part

of

by money;

what

of

to

department

its
Both

ensue.

order

of

what

coexists
I).

consumption;

with

its

coexists
(2)!

I has

department

the

So,

money for

I and II-section

eliminate

that

(1).

for

ex(2),

II-section

exchange

the

commod-

II-section

no use

it

what

its

means of

of

within

precisely

imbalance

sudden

production,

is

of

means consumption

consumption

de-

100 (not

II-section

with

of

be mediated

that

II-

money I has for

of

and a shortage

shortage

means of

less

I now has only

and a shortage

I only

because

First,

conversion

exchange

would

from

commodities

is

amount

because

commodities

must

200 in

incomplete

the

(1)

department

give

would

accounts.

the

of

production

commodities

consumption

And second,

a crisis

demand on the

two

of

after

as it

crisis,

as II-section

this

on two

of

in

purchase

regardless

cash.
the

the

production,

I.

suffers

means of

due to

Once again
back

to

exchange

hard

(2)

plus

striking,

stock

namely,

between

means of

has unsold

an unsold

which
not

means of
(2)

II-section

change,

be reduced.

Is--into

I has unsold

Why?

to

as a result

ity-product--200

with

have

commodities.

in money,

hoard.

The scale

Union

reverse:

any case,

of

Soviet

the

capital.

which

The latter

in

occured

fixed

division

disproportion

a one-time

of

department

(2).

what

only

by a severe

have unsold

I would

were

be seized

in commodities
100c in money,

1.200s
(1)
II.
Here

the

this

would

the
been

if

unlike

system

a shortage

suffer

would

(not

II

War),

Civil

the

Yet

I does
II-section
(2)

would

"over-production"

with

an actually

un-

-124In

first

the

production.

commodities

(means of

case,

I was left
of

"in

spite

important

first

that

can

a crisis

and

reproduction

dividual

the

where Marx

alongside

scale.

an

of

this

the

of

"S

the

money that
means

is

This

Marx's

Even under

the

we see

material

circulation

op-

over-produc-

reproduction,

in

the

unsold
of

example.

simple

imbalance

In

was not

on an unchanging

duration

passage
stated

we quoted

composition

period

replacement

of

within

department

I.

of

the

department

II

we emphasized

how an imbalance

of

rate

labor

it

a crisis

from

by importing

out

of

in-

these

parts.

In

the

the

IIc-(2),

production

had a shortage

trade.

is,

assumptions
from

foreign

I had

IIc-(2),

things

evened

(2)--that

conclusion

result

(1)

than

means of

reproduction

general

II-section

through

II-section

asbstract

uncomplicated,

of

of

than

have

could

was less

unsold

within

consumption

tion

but

with,

was greater

while

production),

IIc-(1)

where

IIc-(1)

hands,
They

of means of

posite

where

money on its

of

a surplus

case,

its

within

fixed

part

capital

A few pages

affected

later

last
in

the

sentence,
terms

of

division

Marx makes this

of

point

again.
if under simple
In short,
unchanged condiand other
reproduction
tions--particularly
volume
power, total
under unchanged productive
between
is
intensity
labor--no
assumed
and
of
constant
proportion
fixed
(to be renewed)
still
concapital
expiring
and fixed
capital
form (merely
in its
tinuing
to function
adding to the
old bodily
in
depreciation),
in
its
then,
the
products
value
compensation
of
to be reproduced
one case the mass of circulating
component parts
to
the mass of fixed
component parts
would remain the same while
be reproduced
Therefore
the total
production
would be increased.
there
I would have to grow or, even aside from money-relations,
in reproduction.
would be a deficit
II to be reproIn the other
if the size of fixed
capital
case,
duced in kind should proportionately
decrease
and hence the componin
fixed
be
II,
only
ent part
replaced
of
capital
which must now
increase
in the same ratio,
then the quantity
of the
money, should
by
I
II
reproduced
circulating
component parts
capital
of constant
that
would remain unchanged,
component parts
while
of the fixed
in
decrease
decrease.
to be reproduced
Hence
aggrewould
either
deficit)
(as previously
and surgate production
of I, or surplus
is not to be converted
into money. 6
plus that
If

the

total

volume

of

production

of

I were

to

remain

the

same we would

-125-

have still

another
IIc

of

part
form,

to

exceed

volume

of

were
the

then

partment

II

culating

means of

IIc

these

of

hand the

ume.

But how is

Marx's

now

decrease?

if

the

division

same,

a crisis

can

duction

in

find

itself

of the

needed

within

I is

capital

in
if

that

deficit

itself
II;

and,

that

make up circulating

ever

changes
then

Marx's
though

his

changes.

with

unsold

its

the

to

means of

a crisis

will

of
one

the

same volproof

con-

in

argument

on fixed

conclusions

are

to
is

indispensible

the

of

of

its

on

will

hands,

production

division

of

to

is

analysis
its

of

and those

keep pace
two

labor

circulating

make up fixed,

the

fix-

replace-

department

composition

so as to

pro-

between

rate

Marx's

of

demand for

capital

remains

means of

fixed

material

capital,

here

the
case

of

that

production

II's

if

the

that

is

IIc

production

implication
the

of

supply

proportion

adjust

arise

of

first

structure

either

means

discussion

our
The

division

In

the

in

capital.

or

result

constant
place

"If

elements

technical

ability

again,

may take

part

On the

department

the

by the

I fails

those

fixed

within

if

IIc

in

once

and cir-

semi-finished

conclusions

of

result

affected

department

capital,

principle

labor

The second

type.

between

output

of

de-

versa.

retains

circulating

capital--alters,

alternatively

a chronic

the

Il--specifically,

part

and vice

raw materials,

(i. e.,

social

constant

fixed

its

fixed

go down.

would

money
for

The fixed

change.

also

in

production

between

II

replaced

"7

will

department

the

of

or with

and

means of

to

class

replacement

of

circulating

ment

of

two

the

of

only

decreases,

if

established

analysis

be reproduced

portion

other

possible

the

proportions

circulating
the

circumstances

of

have

would

materials

that,

ed and

the

production

this

II)

capital
We have

of

total

and auxiliary

stant

production

production
and the

to

portion

same,

increases

parts

other

ducts,

I's

these

under

the

the

remaining

go up,

would

If

result.

types

with
of

what-

constant

as well.
essentially

stops

to

discussion

the

here;
in

and althe

rest

-126-

of

thesis

our

beyond

somewhat

the

relevance

emerge

rather

zhensky's

Marx's

of

to
fact

(especially

argument

how much of

anticipated.

In

further

make the

and will

go

show just

and their

conclusions

first

We must

stand.

order

had in

more clearly

compact

as they
in

Marx

own analysis

we hope,

will,

things

Marx has done

what

Preobrazhensky's
so,

leave

we cannot

in

doing

ramifications
of

Preobra-

easier

to

train

VKA 22)

follow.
we have

From what
ple

the

reproduction
different

and the

any but

assumption

that

tween necessary

to

produces

elements

capitalist
the

Then,

with

subdivided

the

department

tively.

Total

F (fixed

produces

I,
the

capital)

we get

department's
of

and separate

its

two dubdivisions
and C (circulating

of

which

we assume
let

as three

capital

throughout

us take
to

one.
our

I by the

let-

respec-

capital),

]
I-F,

3000c

I-C.

1000c

II.

2000c

social

+ 750v + 750s = 4500 means of production


capital
+ 250v + 250s = 1500 means of production
lating
capital
+ 500v

production

+ 500s

= 3000 means of

is

same as in

the

Marx's

now

reproduction.

simple

department

We

production

capital

constant

luxury.

development,

a new scheme for

be-

product

Since

capital.

of

initial

the

and that

capital,

technical

will

homogeneous.

and articles

fixed

production

when he showed how

II,

that

constant

composition

remove

totally

department

and circulating

same organic

[We have designated


ters

fixed

I is

of

sim-

components

We must

we divided

a mature

individual

the

I,

even under

composition

analysis.

department

of

between

material

consumption

which

that

clear

department

circulating

production

division

of

part
of

of

once

same with

that

basic

is

of

same with

place

articles

do the

paths

product
the

it

the

of

most

done
take

would

according

the

the

Marx had already

now must

problem

circulation

complicate

exchange

so far

said

for

fixed

for

circu-

consumption
scheme for

simple

-127We have

reproduction.
ing

the

to

assumptions
and the

rate

I and in

department

II.

Now, suppose
somewhat
fixed

capital

large

factories,

e. g.,

raw materials,

in both
ly

circulating

close

ever,

will

could

absorb,

on the

have

ters,

to

artment
tion:

far

and will
hand,

engaged

I-F).

have

with

produce

upon

exchange

in

exclusively

We then

find

enterprises

consumption--that
II.

which
is,

The breakdown

both

the
produce
will

might

look

other

their

something

a rural

of
great

feed

to

order

to

fixed

production
own department
this:

coun-

as
conhow-

market
areas,
and
their
mat-

simplify

capital

sectors

rural-agricultural.

like

the

consumption

countryside

two

means of

have

in

The urban

with

we have

up depart-

means of

cities.

production

strict-

functioning

than

in

same

The latter,

the

assumed,

the

The workers

their

of

many means of

the

that

the

rural,

is

originate

very

whom, we have

is

break

to

are

capital,

difference

and farms.

consumption

cannot

depend

most

there

production

capital

production

more means of
trade

where

produced.

obtain

that

constant

have

will

(means of

scheme

come from

our

we will

enterprises

to

our

capitalist
of

capitalistically

will

rural

that

consumption

I-C

of
part

So far

case,

The one urban-industrial;

contains

ment

from

by,

and capitalists
are

are

capital)

produce

other

workers

they

constant

sumption

means of

large

composition
I.

the

department

of

and capitalists

is

areas,

urban

assume

organic

this

Most

still

department

and recognize

portion
in

I accord-

composition

bringing

reality,
in

will

organic

same throughout

condition,

department

of

even though

tryside,

will

the

If

as well.

etc.,

the

department

changed.

circulating

We can

subdivisions

II

the

fuel,

and that

geographical.

ment

has

else

be produced

to

and that

regions.

universal,

the

historical

with

tend

will

agricultural
is

Nothing

line

both

exploitation

we add a qualifying
into

closer

of

in

production

leaving

we stated,

capital

of

divided

merely

of

(depproducEach

and means of
I and depart-

-128I-F.
II-F.

3000c
800c

+ 750v
+ 200v

+ 750s = 4500
+ 200s = 1200

I-C.
II-C.

1000c
1200c

+ 250v
+ 300v

+ 250s
+ 300s

For convenience
departments
I-

II

fixed

capital

particularly

has exchangeable
in

has only

800c

means of

production.

I-F

only

1200 in

of

the

700 in

means of

in

means of

production,

F by

sector

simple

reproduction.
II-F

while

much in

that

only

700 in

of

point.

means of

produc-

consumption.

has only

500(v+s)

means of

and must
to

constant

1500(v+s),

and requires

500 in

order

some

important

we take
of

worth

means of

production,

consumption

if

that

has a surplus

I-C

the

not

conditions

production

thus

and needs

with

is

consumption,

C.

700 in

dispose

of

and a surplus

in

offer

consumption;

means
II-C

while

the

of

same amount

has

II-C

them.

acquire

to

means of

a deficit

consumption

same magnitude.
is

It

fairly

be satisfied

in
all

can

if

the

sell

its

for

exchange
sectors

will

begin

again

next

to

us,

since

we took

our

everything

an important

one,

surplus

year.

figures

by disaggregating

we broke

and urban

rural

the

of

up.
since

This
the

scheme,

in

in

ex-

they

we have

no way depends

for

require
really

not

had been

to

producsurprise

and depart-

in

balance

established,

on the

700,

departments

sectors

respective

mutal

worth

Then all

should

which

can

production,

elements
result

reproduction

engage

sectors

consumption.

The relationship
it

simple

means of

material

for

Marx's

of

conditions

700 means of
have

tion

that

obvious

only
I-F

change.

is

means of

sector

of

ments

means of

Likewise

of means of

II-C

satisfy

of

needs

here

cannot

and a deficit

of production,

in

it

that

and some circulating


is

them

renamed

recognizing

This

cities.

interesting

we see that

tion

rurally,

F and C for

of
have

we might

(rural),

and II-R

the

same designations

the

More properly

be produced

come from

What is

I-F

and I-

will

will

kept

as I.

as well

capital

itself

we have

(urban)

and II-U

= 1500
= 1800

figures

before
however,
we

-129-

the

We could

with.

started

proportions

the

of

departments,

the

illustration

we chose,

Any imbalance,
of

into

circulation--and

plus

commodities,

per

any single
is

schemes of
same

two

different

modes

has

production

our

two

sectors

and

the

interconnection

an essential
conditions

are

of

of

within

the

in

the

sphere

to

of

in

the

system

the

sur-

the

pro-

no longer

reproduction

as a whole.

rural

of

been

production

at

capitalist
the

capitalist

seen this
only
representthe

industry.
real

between

Thus

situation,

them

has

Any imbalance
sector

petty-commodity

dawn

type.

petty-commodity

an historically

development.
the

moments

capitalist

discerened

the

Not

production.

Rural

by

just

has

production

historical

of

that

required

sector

how much we can manipulate

predominantly

extent

other

commodities

simple

production.

within

commodity-pro-

the

sector

what
hold:

would

by calling

only

and

capitalist

individual

exchangeable

deficit

characterized

reproduction
to

the

but

abstraction

of

in

other

given

we have

element

be rectified

be brought

an

proportionality

changed

No matter

etc.

of

for

urban

was

been

capital,

Historically

particular,

development

capitalist

the

exercise

between
at

supply

alone,

"disaggregation"

ed by

part

sector

reproduction.

have,

that

conditions

simple

they

Urban

the

no abstract

that,

of

and could

for

if

only

and even

shared by the

be redressed

only

short,

of

deficit

or

figures

product

same rules

then

In

This

the

could

amount.

apply

social

composition

surplus

one sector

different

employed

total

organic

any

duct

have

could
sector

been

in
in

the
large

could

circulation.

Within
industrial
its process
in
capital
which
of circulation,
functions
the circuit
of induseither
as money or as commodities,
trial
capital,
capital,
or as commodity
whether
as money capital
the commodity
crosses
modes of proof the most diverse
circulation
duction,
the
The
of
character
so far as they produce
commodities...
is immaterial.
from which they originate
process
of production
They function
they
in the market,
and as commodities
as commodities
into
into
the
the circuit
industrial
enter
as
as
well
capital
of
is
it.
It
in
thereincorporated
circulation
the
of
surplus
value
fore the universal
the
the
the
commodities,
of
character
origin
of
the
existence
of the market as world market,
which distinguishes
process
of circulation
capital...
of industrial

-130As soon as act M-MP is completed,


(MP)
the
commodities
cease
...
to be such and become one of the modes of existence
of industrial
capital
in its
functional
form of P, productive
Thereby
capital.
however
is obliterated.
their
They exist
henceforth
origin
only
in it.
of existence
as forms
of industrial
capital,
are embodied
it
However
true
that
still
to replace
remains
them they
must be
the capitalist
and to this
reproduced,
extent
mode of production
is conditional
lying
on modes of production
outside
of its
own
But is the tendency
stage
of development.
of the capitalist
mode
to transform
inof production
all
production
as much as possible
to commodity
by which
The mainspring
is accompproduction.
this
is precisely
lished
the involvement
into
the
of all
production
9
capitalist
circulation
process.

Marx,

did

then,

how capitalist

take

crete

of

production
We have

as his

point

This

is

for

the

the

not

however.

ed,

only,

of

of

commodities

be characterized
as we showed

of

the

ing,
those
in

the

moment in

above,

was not

production

relation

between

which

of

most

Marx's

another

detail

in

with

regard

separate

to

Part

be reach-

the

way we
the

namely

different

functions

II.

a crucial
in

the

con-

leave

to

conclusion

problem,

was

under

however,

derivation

us to

own

charac-

reproduction

scheme was no doubt


its

mutual

Preobrazhensky

up in

important

in

studying

qualitative

We will,
it

take

ma-

types
the

within

which

creation

of

the

types

as the

as its
its

technical
a question

and means of

function

function

just

process

social

of

consumption

means of

fixed

part

wealth.

the

of

Marx

material
in

constant

chose

will

that
to

balance

be-

but

also

general,

production

portion)

production
Reproduction,

structure.

of

circulating

its

development

a society's

by a determinate

means of

those

extending

what

economy.

Preobrazhensky,

and their

of

material,

analysis

two-sector

leads

develop

for

and circulation.

At any given

tween

the

reproduction

produced

his

Soviet

even

the
for

its

as we will

necessarily

conditions

of production

the

or

Although

have done here

in

point

will

consequence

as a conclusion,

moment,

discovery

analytical

terial

derived,

and in

production

to

framework

the

us with

first

the

according

starting

capitalism

this

is

This

teristics.
to

provide

and petty-commodity

inter-relation.
breakdown

fact

in

(broadly
capital
society

demonstrate

speakversus

utilizes
this

-131by looking

IIc

at

between

structure

figures

the

f,

to

and circulating

[ 600f+

200 ]c

+ 200v

+ 200s

[ 750f+

250c]c

+ 250v(c)

+ 250s(c)

[ 900f+

300c]c

+ 300v

+ 300s

become extraordinarily
against

must do so in
that

of

IIc.

the

means of

material

form

departments

The commodities

of

which
that

production

must

their

of

by the

letters

means of

production

the

500,

of

in

but

can only

function

within

up the

conditions

of

that

com-

of

means

form.

The
of

shape

a material
the

suf-

the

form

material

exchange

ex-

no longer

against

exchange

have

and must

is

It

have

values--they

appropriate

I(v+s)

has a value

reproduction

as well.

I-F(v+s)

capital,

continue.

simple

of

their

at

combined

I-C(v+s),

only

consumption

correct

production-qua-fixed

same with

conditions
Not

complex.

means of

the

the

as this

a system

to

must

c.

+ 750s(f)

In such

bined

by C or

technical

portions

capital

+ 750v(f)

I-C.

ficient

fixed

neces-

scheme and rearranging

and circulating

we designate

capital

sector

750c]c

II-F.

change

fixed

is

reproduction

[22SOf+

I-F.

II-C.

two

argument

and these

components,
if

our

the

has a given

too,

proportions

the

Again,

But

and circulating

by taking

according

I(v+s).

with

I as well--it,

proper

this

capital.

constant
or

the

illustrate

We can

exchange

fixed

its

in

be reproduced

its

department

to

extends

sarily

in

cap-

circulating

ital.
As the

scheme is
We have

satisfied.
and circulating
to

addition

assumed

constant
Marx's

to

that

the

quire

in

material
in

their

the

the

capital

initial

100% and an organic


note

set

two departments

constant

of

in

the

of

of

capital

I the

means of

capital;

the

proportions

departments,

all

assumptions

composition

form

same technical

of

three

four

between

fixed

to

in

to

one.

of

We must

f and c for

subscripts

one,

exploitation

of

a rate

production

these

subscripts

for

are

reproduction

simple

Ic

departments
Iv

and Is

refer
re-

represent

-132the

form

material
II

ments

produce
in

listed

In

means

scheme

to

exactly

tion

of

the

fund

of

500(v+s)

in

combined
in

to

replace.

need

to

combined

require

means of

amount,

constant

capital.

of

that

value

500 in

that

fixed

cap-

consump-

will

means of

condition

capital

with
to

consumption
from

assured

serve

consump-

this

can satisfy

is

Depart-

has an exchange

500 in

means of

only

has

I-F

means of

circulating

reproduction

material

of

production

II

constant

the

1500(v+s).

with
I-C

requires

departments

are

to

of

I-F

means of

there

production

exchange,

It

have

they

however,

this

their

replace

Simple

the

and can provide

Besides

500;

place

depart-

two

as follows:

capital

I-C.

to

exchange

refer

fixed

consists

of

obviously

take

The combined

total

subscripts

would

of

to

and
they

which

They need

also.

the

production,

capital,

same value.

return.

As the

commodity-product.

production

this

as circulating

of

exchange

and II-C

ital

tion

of

production

II-F

ments

constant

this

means of

own

no means

their
the

of

shape

their

of

this

give

point

of

view.
We see,
now has to

take

has a constant
2250 in

It

must

constant

ital

for

capital

in
tion

i. e.,

750 in

I-C.

technical

of

to

1000,

of

it

fulfilled

of

which

continue.

It

can acquire

capable
with

of

new,

I-F;

as well

internal

as the

must

the

itself

constant

has a

a naturally-

750 fixed

cap-

because

only

it

as circulating
in

latter

Yet

process.
It

in

have

capital

others.

with

I-C.

at

these

condition

I-F

production

functioning

production-qua-circulating
this

and I-C.

circulating
its

There

satisfy.

250 exists

only

capital.

can exchange

means of

750 in

us now look

Let

It

I-F

can provide

composition

I-C.

production

between
it

which

to

condition

however,

needs,

750 from

So we see that

has been

of

as circulating

means of

and which

these

the

value

production

has 750 in
capital

of

another

exchange

3000,

It

these

obtain

form,

useful

of

capital.

because

capital,

an internal

place
capital

fixed

is

there

of
this

turn
that

needs
originate

simple
in

turn

reproducmeans

-133is

there

that

a new possible

a new point

of

disturbance.

I(v+s)

to

take

were

the

necessary

tal

were

physical

[2500f

I-F.
II-F.
I-C.
II-C.

+ 200s

[ 750E + 250c]c

+ 250v(c)

+ 250s(c)

[ 900E + 300c]c

+ 300v

+ 300s

their
II.

what they

need

the value

of

the

ferent

is

ital

not

fixed

We have
origin.

production

all

the

in

10

to

of

within

I-C

constant

of

The result

way around.

will
But

to

be that
would

difcap-

reproduction

canI-C

capital.

serve

It

can

have

will

250 in
as part

of
no

will

mean that

production

have
its

to

un-

capital--have

means of

I-C

is

as it

exchange.

constant

more,

exactly

of

of

acquire

circulating

and a surplus
can only

depart-

that

circulating
to

ex-

department

I-C

famine

this

able

then

they

a goods

to

But

some department's

effect

both

thing

simple

capital
enough.

which--since

of

has stayed

constant

capital,

and I-C

individual

fixed

that

ensure

were

What is

The only

ratio

easily

still

each

same.

down

capital

capital.
of

be imposbreak

to

how I-F

of

each

circulating

I-F

with

portion

industrial

the

500 in

only
750 in

production

circulating

purchaser.

is

enough

requires

this

are

capi-

still

were

consumption

and circulating

production

is

hand has

means of

II

now has a higher

alone

250 in

means of

if

this:

terms

commodity-product

while

500 of
of

fixed

total

I-F

I-F

other

deficit

needed

departments

both

before,

same in

the

economy as a whole

go on.

exchange

the

the

And this

on the

sold

in

that

than

was.

s for

v plus
Conversely,

and of

like

+ 200v

combined

and even

constant

[ 600E + 200c]c

has remained

the

might

each department's

+ 750s(f)

process,

and circulating

and I-C

+ 750v(f)

Everything
change

fixed

look

entire

IIc;

combined

I-F

might

the

between

reproduction

between

of

+ 500c]c

in

exchange

the

with

simple

exchange

structure

the

between

Such a disproportion

to alter.

ments

full

then

even

technical

or the

in

proportions

internal

the

dislocation

of

Even if

place

satisfied;

if

sible

point

cut

variable

of
back

-134and hence

capital,
its

justed
it

constant

in

capital,

constant

is

result

a general

because

and all

ing

capital

in

the

department

Every

latter

of
still

could
Under

be foreign

250 in

the

division

native
for
This,

fixed

that

purchase

whatever
of

simple

and hoarded

Marx cites

in

however,

engenders

fixed

in

goods,

means of

his

example,

other

of
could

they

that

serious

problems.

I-C

the

its

would

imbalance
Here

the

of

surplus
needed

ma-

make up I-C's

could

one other

of

the

way out

capital.

might

meant

needed.

of

consider

productivity

for

and import

and which

circulat-

a drastic

only

fixed

etc.,

also

to

of

even though

export

the

of

II,

the

production

We could

fixed

capital

discussion

equivalents

etc.,

economy as a whole.

capital

his

The

requirements

fixed

reproduction

intermediary

ll

the

goods

values,

precipitated

of
of

circulating

production.

of

departments

Our economy

same.

capital.

labor

concluded

of

it

of

of

proportion

capital

both

cut

material

a shortage

The intensification

ours:

the

in

to

or possibly

semi-finished

destruction

internal

production

forms

have

will

of

or

adthat

capital

II-C,

or

amounts

raw materials

the

entire

II-F

as soon as it
fixed

of

necessary

changing

as Marx

and other
of

in

own constant

be the

supply

unemployment,

its

raw materials,

shortfall

too,

assumption

trade,

would

chinery

They,

a change

between the replaced


solution

of

was affected;

contraction

the

shape

crisis,

the

Then either

obtain

By simply

within

alteration

the

of

I-F.

department

the

origin.

agricultural

to

exchange.
to

would be reduced

value

capital

be able

not

would

surplus

through

can obtain

both

of

total

its

prove
labor

alter-

suitable
within

I-F.

But
ital

of capa shifting
such a change would not take place without
from one line
and
of I to another,
and labor
of production
Furdisturbances.
forth
every such shift
would call
momentary
labor
(in so far as extension
intensification
would
thermore
of
and
its
[I-F
for
I
in
have
of
more
mount),
exchange
our example]
would
be
for
[I-C's]
Hence
less
there
II's
would
own value
of
value.
12
depreciation
[I-F].
a
of the product
of I
Even foreign
italist

trade

economy,

has
with

it
its

difficulties.
world

market

Once we presume
and mutual

a world

inter-relations

cap-

-135between

percussions
trade

eign
the

its

parts,

a disturbance

in

others.

Any attempt

all

else

somewhere
house,

stocked

closed

national

for

it

that

extent

where

as Marx argues,

would,

every

would

in

the

with

gives

"only

is,

fill

and its

ensuing

transfers

the

disproportion

in

the

disproportion,

the

division

to
labor

of

is

not

some idle

holes

in

the

economy of

has

presumes
its

world

ware-

its

own demands

Thus foreign
to

contradictions

some

production,

own trauma,

disturbances.

for-

via

market

market

unit

a wider

trade,

sphere

and

'13

concludes,

only

and disturbances:

proportions

extend

up the

The world

latitude,,

Marx

merely

have re-

necessarily

the

solve

some change

productive

them greater
There

to

economy.

proportionality,

to

one will

The world

world.

goods

national

as Marx notes,

require

in

one durable

The abolition

of

to

solution
capitalist

these

dis-

production.

form of reproduction
Once the capitalist
is abolished,
it is only
a matter
of the volume of the expiring
portion--expiring
and therefore to be reproduced
fixed
(the capital
in kind--of
capital
which
functions
in our illustration
in the production
of articles
of conin various
If it is very large
sumption)
varying
successive
years.
in a certain
year (in excess of the average mortality,
as is the
in
then it is certainly
case with human beings),
so much smaller
The quantity
the next year.
semi-finished
proof raw materials,
ducts,
for the annual production
and auxiliary
materials
required
things
of the articles
remain equal
of consumption--provided
other
decrease
in
not
consequence.
--does
Hence the aggregate
would have
production
of means of production
This can
in the one case and decrease
in the other.
to increase
There
be remedied
by
over-production.
only
a continuous
relative
procapital
must be on the one hand a certain
of fixed
quantity
duced in excess of that
on the other
required;
which is directly
hand, and particularly,
there
of raw materials,
must be a supply
(this
in excess of the direct
applies
etc.,
requirements
annual
This sort of over-production
to means of subsistence).
especially
its
is tantamount
by society
to control
the
of
means
material
over
it
is
But within
an element of
reproduction.
society
capitalist
14
anarchy.
These
of

fixed

quent
from

capital,

will

discussion.

In

Marx

brazhensky

made from

extrapolations,

conclusions
was to

immensely

prove
the
that

use to

first

place,

anticipate
analyze

both

Marx's

analysis

important
they
a)the
the

have

to

of
all

allowed

theoretical
Soviet

system

the
of

reproduction
our

us to

subsederive

framework

Preo-

and contemporary

-136in

capitalism,
basis

on the

technical

ent

had abolished

mately,

capitalist

but

are

produced

cope

the

arise

necessary
differ-

with
15

labor,

and

impasse

the

and which

sufficient

material

that

capitalist

circulation

places

upon

where

which

wealth,

could

and advanced

and

(and ulti-

reproduction

foreseen

in

so preoccupied

disproportions,

these

can be increasingly

which

sectors

1920's,

the

with

that

exchange.

more developed

the

by

with

fetters

to

where

of

schemes

problems

economy

highlights

in

a society

needed

more naturally

nomy is,

an

by market

production)

flexibility

within

reproduction

b)the

and

productivities

itself

the

the

construct

economy;

own conclusion

Only

which

occur

differing

found

economy

Preobrazhensky.

the

place

be mediated

Marx's

Secondly,

the

existence

and

must

Soviet

its

of

needs

reproduction

take

to

need
in

sectors

must

elements

material

the

two

of

reproduction

when

the

particular

attain
will

which
a capitalist

and coped

eco-

with

under

socialism.
We should
from

strictly
tion

would

loci

of

note

that

these

an analysis

of

simple

also

increase

the

portion

is

inherent

in

process

Even at

the

level

ties:

had to

which

medium of

market

revolution

in

in

achieve

backward
in
the

his

a way out.

Only

her

participation

in

a mixed
expanded
and in
the

analysis

of

then

_ ,

midst

state
this

system

overcome
division

of

economy

It

offer
political

of

labor

even

no accident

that

that

concluded

could
the

is

eco-

the

a private

of

twen-

the

via

dilemma,

it

could

in

reproduction

sector.

world

dispro-

itself.

Union

commodity-socialist

the

even more

we have managed to

Soviet

socialist

examples

reproduc-

reproduction

however,
the

our

show how such

expanded

capitalist

an international
16

of

in

and provide

process

we will

confronted

than

advanced

ion

Part

the

reproduction,

which

exchange,

more technically
Preobrazhensky,

simple

famine

The goods

nomy,

the

situation

Expanded

III,

in

the

reproduction.
of

Later,

highlight

arose

complexity

breakdown.

of

disproportions

the

only

Soviet

obstacle
which

Unto

possessed

-137NOTES TO CHAPTER 2
1.

is

It

and
ital

important
"circulating
for
Marx

and circulating
acteristics

2.

3.

here

Marx's
"fixed"
clarify
use of the categories
(Capital,
II,
Chs. VIII,
CapX, and XI).
capital
is not a thing,
but a social
relation;
and so fixed
have nothing
to do with
the material
capital
charbut with
the way in which
of commodities
their
value
to

is transferred
Thus fixed
to the annual product.
is that
capital
in a greater
part of the productive
capital
whose value remains
fixed
in the means of production,
i. e., outside
the
or lesser
part
is transferred
to that of
of the annual product--its
value
value
Cirthe product
only gradually,
over several
production
periods.
is capital
is transferred
capital
culating
whose value
entirely
in the course of a single
to that
of the product
productive
period.
follow
from this
distinction:
Several
First,
things
the differenbetween fixed
has nothing
tiation
to do
and circulating
capital
between machines
and raw materials,
with that
or between means of
insofar
production
and means of subsistence,
except
as certain
types of means of production
transfer
their
value more or less slowly as a function
But, notes Marx,
of their
physical
properties.
fertilizer
is fixed
if its value
is not wholly
imparted
capital
in one season;
to the crops it helps produce
converesely,
coal and
fuels,
in any product
although
are
other
not physically
contained
consumed and hence their
circulating
capital,
as they are wholly
is completely
transferred
to that
of the product
within
a
value
is not made
Second, the distinction
production
period.
single
kinds
Variable
between different
strictly
of means of production.
it is a capital-value
capital,
since
advanced in the course of
is also part
Here we must make
production
of circulating
capital.
distinction.
Just as the circulating
part
of constant
a further
involis not the same as the physical
capital
means of production
is transferred,
so
ved, but only a question
of how their
value
is not the same as the
the variable
portion
of circulating
capital
labor power of the worker
that
sustain
or the means of subsistence
It is only the value of the variable
the laborer.
as a
capital
Third,
the
in the course of production.
capital-value
advanced
is one entirely
distinction
between fixed
capital
and circulating
Marx
important,
is
This
the
attacks
as
productive
capital.
within
i. e., money capital
Smith for confusing
and
capital,
circulation
industrial
forms
functional
(which
that
the
commodity
capital
are
capwith circulating
capital
assumes in its
path of circulation)
in
by
ital
(i. e., capital
is
distinguished
the
which
manner
which
be
it transfers
its value to the product,
that
only
can
something
form
functional
has
done in production,
i. e., while
the
the capital
of productive
capital).
is,
let
this
This/
The
not
would
of course,
capitalists
an abstraction.
idle,
but would make it available,
via the modern credit
money lie
does
however,
This,
to
the
system,
capitalist
as a whole.
class
individBoth
the
in
the
the
not alter
any way.
nature
of
problem
back
the money needed
ual and collective
earn
capitalist
only
can
increments;
in
little
and
to replace
time,
their
at
a
machinery
a
but
itself
the machinery
time,
require
will
over
only wear out
will
For
immediate
life
in toto at the end of its
span.
replacement
hoard
limits
the possibilities
this
accumulating
and
of employing
by
depreciation
fund--for
of
accumthe
the
purposes
--represented
Ch. 8, below.
ulation,
see Part III,
This

relates

to

the

somewhat

difficult

discussion

in

Volume

II

of

-138(pp. 433-37),
Capital
where Marx poses the problem
of how to compare the value components
of the social
product
with its material
form.
In any given production
is obyear the new value
created
into
by the application
viously
resolved
what is created
of living
i. e., what appears
in the value of commodities
labor,
as v and s.
for both departments
Taken together
these represent
the aggregate
fund of the society,
consumption
and so are materially
represented
If we look at the reproduction
as means of consumption.
schemes
indeed,
the sum of I(v+s)
we see that,
and II(v+s)--i.
e., everyis personally
thing
that
the total
consumed--equals
product
of deII,
Yet the
these means of consumption.
partment
which produces
that make up each department's
commodities
product
obviously
contain
to it;
a constant
capital
value component
which is transferred
clearly
new means of production
what is more, quite
are produced
in each production
by
year,
and these contain
new value created
And here is the source of the conthe application
of labor
power.
fusion.
in a year's
All of the newly-created
value
social
product
is resolved
into v+s.
Yet all
newly-created
contain
use values
both a new value
i. e., a
component and an old value component,
is simply
in the course of production.
transferred
value that
is embodied directly
in the exchange between I(v+s)
This duality
is new labor,
I(v+s)
and IIc.
whose value
exchanges
against
a valby the constant
i. e., by a value
capital
of II,
ue represented
(assuming
in the
that
over in one year)
created
all
of c turns
is a sum of values
I(v+s)
the enthat represents
previous
year.
total
tire
even though each disproduct,
newly-added
value of I's
both c and (v+s).
This is why we can
product
creet
of I contains
to I(v+s)
Conversely,
IIc,
refer
as new values.
although
existing as means of consumption,
sense part of
and hence in a social
(which,
the newly-created
values
of society
as we noted, is equal
is really
to the total
the old value component of
product
of II),
II's
What we have is newly-created
product.
value
exchanging
in the annual product
against
only because
old value,
which exists
it has been transferred
from values
in a previous
year.
created
And
II's

is

if
in the year
before
that
surprising
we consider
by I(v+s)
constant
of that
capital
wore out and was replaced
i. e.,
in that
by new means of production
that,
were new
year
year,
(and
is
Thus I(v+s)
in the present
to
values.
replace
going
year
hence
I(v+s)
This
year's
exchange
against)
year.
of the preceding
Although
this
labor
last
newly-added
exchanges
year's.
against
it
distinction,
prove
exceptionmay seem a rather
scholastic
will
important
ally
of the accumulation
once we take
up the question
this

not

of fixed
capital
the latter
turns
4.

Capital,

S.

Ibid,

p.

472.

6.

Ibid,

p.

472.

7.

Ibid,

p.

471.

8.
9.

Capital,

10.

II,

under conditions
in
over solely

p.

469.

See Appendix

to

Part

II,

p.

113.

The Russian
Theoretically,

term

Emphasis

I,

assume that
where we no longer
below).
(see
III,
Part
one year

added.

below.

Our emphasis.

tovarniy
literally
golod
means "commodity
this
translation,
would be a more correct

famine,
because

"

-139it

the dual nature


reflects
of the Soviet
economy, which Preobrazhensky characterized
as commodity-socialist,
the category
since
had not been transcended,
of commodity
not even in the state
secIn these terms we could speak of a "goods"
famine when the
tor.
in the Soviet
no longer
existed
commodity
economy and we had only
(see Preobrazhensky's
discussion
in
products
topic
state
of this
"The Law of Value in Soviet
Economy, " in The New Ecothe chapter,
Convention,
however,
has
as well
as our Introduction).
nomics,
"goods famine, " and we have retained
been to use the phrase
the
term only for this
reason.
11.

in another
We could solve
If the combined
the disproportion
way.
demand of departments
II for means of production
from I-F fell
from 1500 to 1250, and their
demand for means of production
from
I-C rose from 500 tO 750; and if I-F and I-C held their
respective
from both departments
demands for means of consumption
II constant;
then the latter
would have an exchange surplus
of 250 in money from
I-F,
their
now greater
which they could then use to purchase
amount
from I-C.
I-C would then have a money hoard
of means of production
it
the means of production
of 250 with which it could purchase
Then the system would be in equilibrium
and the
needs from I-F.
The figures
to it.
money I-F would have to advance would return
might appear as follows:
I-F.
II-F.

[2500f
[ 500f

+ 500c]c
+ 300c]c

+ 750v(f)
+ 200v

+ 750s(f)
+ 200s

I-C.
II-C.

[ 750f
[ 750f

+ 250c]c
+ 450c]c

+ 250v(c)
+ 300v

+ 250s(c)
+ 300s

Here departments
II together
capital
purchase
only 1250 in fixed
from I-F.
hand they purchase
On the other
750 in means of producfrom I-C.
Let I-F advance 1500 in money for its
tion
combined
II buy back only
Departments
purchase
of means of consumption.
1250; so I-F has lost
some of the advanced money (250) and has un(also
II now ex250).
But departments
sold means of production
directly
I-C for 500 means of
change 500 means of consumption
with
but deI-C needs only 500 in means of consumption,
production.
from
II have an extra
250 in money which they obtained
partments
their
I-F;
unequal
purchase
and sale with
and I-C has 250 unsold
for
750
it
has
means of production
exproduced
available,
since
So departments
but the latter
bought only 500.
change with I-F,
II obtain
from I-C,
750 in means of production
the
while
a full
has sold everything
latter
it has to sell
and has, in addition,
it takes this
250 in money that
it did not have before.
Finally,
in
had
from
I-F,
turn
money and buys 250 in fixed
which
capital
1500
it had produced
these 250 lying
idle
due to the fact
that
for exchange with departments
but was able to sell
II,
only 1250.
We can see that
just
equilibreproduction,
on the basis
of simple
rium can be attained
of excircuit
only via a very complicated
form
in
We will
in
this
change.
this
our
exact
meet
problem
again
discussion
below).
IV,
(see
Part
famine
Union's
of the Soviet
goods
12,

II,
here is that
capital,
The process
Marx is describing
p. 472.
More of
of non-equivalent
exchange between the two departments.
Its labor
The only other
alterwould exchange for less of II's.
I,
from
II
to
native
so that
would be a transfer
of social
capital
in the
the two departments
could then exchange equivalent
values

-140In the Soviet


quantitative
necessary
proportions.
economy under
find
NEP we also
but
dirin the reverse
non-equivalent
exchange,
from
the petty
are transferred
ection--values
production
sector
into
into
departt he state
the state
sector,
primarily
sector's
is a vehicle
for
This
into
transferring
the latment I.
values
the social
ter
towards
and thereby
redistributing
capital
an inWithout
this
the shortage
output
of means of production.
creased
heavy
industry
have
of means of production
of state
could
only
(abstracting
from
foreign
been "liquidated"
by abolishing
trade)
(and this,
in the very
as'we
non-equivalence
shall
see below,
only
have made state-produced
This
run).
would
short
means of profor
duction
the private
relatively
cheaper
sector
and more acceshave further
Thus the state
to the prescould
sible.
accommodated
between
of the market
and relieved
some of the disproportions
sures
its
but only
the countryside,
relations
with
at the expense
of its
industry
to accumulate
ability
and supply
all
of state
continued
Under
these
conditions,
which
already
with
means of production.
that
presupposed
equilibrium
on non-equivalent
exchange,
was based
be tantamount
the Soviet
to adopting
the solution
economy
would
Marx described--i.
transfer
e.,
a de facto
of values
out of the
sector,
or a relative
state
subsidization
of the petty-commodity
We should
that
to a transfer
sector.
only
note
of
when we refer
from one sector
to another
values
or department
we are not talking
but about
the moving
of actual
entities,
values
as
about
physical

a command over labor


labor
social
and the
13.

Ibid,

pp.

14.

Ibid,

p.

15.

See the
above.

16.

It

power
total

and hence as a channel


social
capital.

for

113,

on pp.

reorganizing

472-73.
473.

passage

from

Capital,

II,

p.

quoted

129-30,

implications
is this
inability
to recognize
the political
of
Union's
the Soviet
characeconomy that
relations
with the world
interpretations
terizes
the traditional
of the debates
economistic
Day (see
in particular
the argument
of Richard
of the twenties,
Day treats
Note 5, pp. 75-76,
above).
pp. 16-17 and Introduction,
foreign
devoid
trade
of particular
as a technological
category,
limfails
historical
he
the
Thus
that
to
see
social
and
content.
its to the Soviet
Union's
were
with world capitalism
relations
determined
the governby the levels
trade
only partly
of foreign
to adopt or which the economy could
ment was or was not willing
had
in
to careits
the
total
addition
support
state
with
output;
fully
that
of the economy to producassess the fact
adaptations
for the world market raised
tion
the serious
of what
question
kinds of relations
Capitalist
these were to be:
or tightly-conEconomic relations
by the monopoly
trolled
altrade.
of foreign
form
have
they
of the
them,
part
to
ways
as
a political
character
that
enthe
systems
process
economic
of reproduction
of
specific
become a question
of the abilthey immediately
gage in them--hence
ity of a given social
types of socparticular
system to reproduce
ial relations.
The capitalist
more
could have been nothing
market
than a stop-gap
assismeasure for the Soviet
economy; eventually
tance from other
socialist
countries
would have been necessary,
for only this
of
the socialist
could have safeguarded
character
the Soviet
economy.

-141APPENDIX
THE

REPRODUCTION

from
came

tion
II

the

of

analysis

into

where

two categories,

that

of

Preobrazhensky

that

go beyond
of

fixed
it

was only

of

capitalist

brazhensky
only

in

1931,
crises

a passing

for

fixed
ular
the

poses
ing

any elaboration

only

the

fixed

to

need

the
for

capital,

Second,
directly

to

combines

both

the

Marx's

First,

the

of
the

a two

the

the

exclusive
a

(which,
is

It

to

this

VKA 17 when he emphasizes


account

'

fixed

the

the

of

mater-

Marx's

section

the

VKA articles;

up the

taking
of

on

question
Preo-

that

capital,

it

even then

construction

in

to

of
it

of
of

our

was

has to

in

his

be drawn

a scheme for
analysis,

II's

in

out

the

in

our

pur-

deriv-

actually
discussion

of

by implication.
fund

consumption

simple

partic-

famine
for

valuable
to

department

and a value

goods

came closer
he did

of

reproduction

the
is

of

reproduction

argument,

entire

II(v+s)

than

the

of

behind

Marx

scheme

argument

analysis

question

the

of

analysis

tendencies

analysis

sector

the

a material

II

and comprise

bourgeoisie).

analysis--and

central

that

extent

where

although

of

thematically

USSR; by contrast,

the

department

two reasons.
is

Marx's

form

throughout

accumulation

of

discussion

capital
to

part

reference.

We deferred
II(v+s)

and the

of

Volume

of

and luxuries

exchange.

unmentioned

inspira-

section

fund

and take

analysis

Marx's

original

class,

when he was specifically

this

noted

in

and their

goes

working

capitalists)

refers

value

the

(which

by the

only

reproduction
however,

capital,

the

the

from

consumption

the

LUXURIES

scheme from

If

capital.

the

of

AND

two-sector

necessities

consumed

a simple

his

was certainly

of

discussion

elements

fixed

divides

Marx

are

ial

of
it

all,

understandably,

need to

out

consumption

portion

substantial

at

NECESSITIES

work

consumer

individual

of

source

not

reproduction
Marx

of Capital

OF II(v+s):

did

Preobrazhensky

TO PART

reproduction
problems

of

leads
that

circula-

-142-

extremely

are

tion

in our

analysis

been

the reproduction

of fixed

or difficult
to

into

the

1600c
400c

and luxuries,
the

of

the

prob-

an analysis

of

of

circulation

fact

in

whose explication

and reproduction

(the

put

of

as a whole

essities.

means of

necessities;

abstruse

necessarily

go-

Articles

to:

department
IIb

group

produces

as follows:

capitals

of

at

which

of
the

and 160 in

consumption
I to

their

course,

Marx

surplus

Therefore

replace

in

Ha

constant

group
Ilb

if

we add up the

consume

capital,

not
it

out-

60 in

total

have
amounts

will

each

and two. -fifths

consume

will

will

the

they

they

that

necessities

Ha

does

So,

story;

in

that

wages with

consumption-qua-nec-

assumes

to

value
of

their

a different

are

means

needed

a moment).

500 means of

these

their

exchange
in

within

department.

that

any of

go into

we will

workers

subsistence

wages outside

those

produced

means of

obtain

means of

same way as the

the

their

their

obtain

will

They must

capitalists

luxuries;

luxuries.

IIa

and luxuries,

necessities

Thus

in

group--in

itself.

of

department

produces

cannot

The capitalists,

and 40 in

sub-divide

their

IIb

of
IIb

three-fifths

essities

is

II

and we can thus

receive

cover

luxuries.

especially

we referred

workers

least

consume both

not

department

of

respective

to exchange

within

must

is

with

commodities

that

within

mechanics
Ha

Ha

the

workers

subsistence

began

of

their

that

have

the

Ha

Marx

+ 400v + 400s
+ 100v + 100s

II

and do not

Similarly,

with

Group

divides

Marx

of department

ties

with

goods;

directly

to

out

and luxury

consumption

devote

we had started

classes

evident

of

if

two

quite

II

essence

The product

two groups.

Ha.
IIb.
is

the

that

follow.

contain

luxuries.

It

As a result

elaboration

problem

to

of necessity
II

scheme we employed

capital.

The actual

ing

the

capital.

necessities

prior

in

so than

more

obscured

of

the

presupposes

fixed

of

have

lem would

complex--far

240 in
necessi-

output
to

nec-

of

be exchanged
to

800,

or

-143-

the

IIa(v+s).

of

sum

is

items?

It

talists

IIa

goods,

group

500 from

IIb

200 all

is

Ila

no artifact

of

figures.

the

individual

that

the

percentages
in

necessities
this

would

by the

between

Ha

production

of

all.

As for

over

from

its

capiluxury

total

out-

demand for

and the

in

those

is

of

the

out

lux-

IIb,

or

simple

circuit

1600c
400c

The most

important

can only

spend

at

have

in

Ilb,

of

a simple

between

fairly
the

reflect

500,

and lux-

of

II's

we know that

a
the

Therefore
and lux-

necessities
two

output

Given

amount.

sub-departments.
of

accordingly.

reproduction

None

versa.

reason.

magnitude

relative

is

the

of

of

Once we assume

that

cover

consumption

division

equals

tastes

necessities

for

case

assumed

varied

or vice

the

weights

the

such

overall

II,

least

exchange

scheme to

two groups

Ha.
IIb.

of

have

we could

involved.

is

our

relative
in

or

and the

consumption

Marx,

initial

in

and luxuries

consumption

This

as Marx notes,

necessities

group

that

department

must

of

than

gross

which

the

conditions

down our

average

capitalists'

observes

and IIb;
each

fixed.

necessities

The actual

IIa
in

the

IIv,

We could,

proportionalities

in

determine

will

in

the

between

of

Any change,

ists

800 in

40 from

plus

between

less

say,

capitalists

size

ing

is,

Ha
change

particular

the

do not

and IIb

the division

in

capitalists

division

a given

our

proportion

capitalists

that

alter

240 from

capital;

capitalists

consumer

plus

left

constant

necessary

groups,
or

these

160 from

consumed by the

uries

both

IIb,

200 of
its

a different

have assumed

uries

in

these

told.

This

of

demand for

capitalists

have

will

the

workers

has restored

it

equals

uries

the

and 60 from

after

put

What is

a and b would
3
Break-

straightforward.
of

consumption

the

capital-

we have:

+ 400v + [240a + 160b]s


60a + 40b]s
+ 100v +[

their

feature

of

this

scheme

wages in

IIa.

Hence

is
the

this:

The workers

capitalists

of

IIb

of

IIb

can

-144-

their

realize

only

variable

capitalists

in

departments

I and II

capital
In

sa.

from

case

present

the

cash

so-earned

from

when the

capitalists

IIa,

and the

from

IIb.

Thus

equal

the

value

that

is

in

luxuries,

draws

I's

our

initial

know that

the

overall

constant
that
at

capital

be exchanged

will
least
Is

within
tion

1000,

in

to

between

Ha

and the

essity,

then,

400 in

luxuries.

is

IIa

100

purchase
This

satisfy

100 of

60 in

the

of

circuit

necessities
60 in

purchase

reproduction

here

to

be spent

on luxuries

the

portion

of

necessity

capital.

purchase

is

IIb's

luxuries
that

the

must
surplus

that

as does

go for

the

In

other

But

in

turn

that

is

and luxuries

already

given

patterns

capitalists

in

Any other

division

by their
of

I must

II's

I's

of

part

So we then

that

fraction

IIa(c)

also

fund

fixed--for

organic

must

the

means that

violate

all

equal

division
produc-

compositions

necessities
the

of

By nec-

own capitalists,
600 in

of
the

while

consumption

words,

consume

would

Is.

necessities,

luxuries.

Iv.

equal

must

We

accordingly.

= 1000,
Ha

and

necessities

value

will

equal

both

sk; splus

of

capital

must
for

Iv

The cap-

complication.

consume

their
that

fund

consumption

the

will

divide

necessities

and IIb

capital

cover

to

The

of

part

an additional

likewise

constant

of

plus

to

example

IIb

is

IIa

turn

ver-

on necessities.

consumption

IIb

and vice

The last

simple

IIb

attention

department

in

in

that

in

and so we must

know from

for

value

be spent

to

in

in

variable

capitalists

luxuries.

condition

capital

variable

IIb's

variable

difficulty.

capitalists

capitalists

surplus

Marx then
italists

latter's

the

IIa's

of

portion

the

allows

160 in

from

the

its

100 articles

and purchase

represent

which

demand for

completed

also

IIb,

transactions

total

their

wages

little

presents

confronts

realize

capital,

the

of

value
that

problem

constant

exchange

their

surplus

I can only

II's

against

the

to

as a whole:

the

the

against

identical

take

With

items
of

pair

is

the

IIa.

luxury

taken
value

IIb

is

This

and surplus

in

workers

IIa.

capital

conditions

and

-145-

reproduction

of simple
of

group

however,

different

we've

those

produce

must

group,

Ib,
in

IIa(c),

against
three-fifths

of

Ia will

purchase

we also

know that

means of

320 in
Ib.

constant

IIb

Ib(v)

will

equal

Ib will

Ha

from

the

this

economy,

to

200,

luxuries.

(which

in

IIa,

from

in return.

Ha

IIa
will

Ia

have

its

Ib(s)

will

can satisfy
120 in
Ib,

their
in

and sell
then

means of

who will,

60% of

have

IIa

IIa.

a like

In addition

value

all

of

Thus

from

That

it

necessities

of

obtains
in

capitalists

buy

its

IIa,

necessities.

other

quantity

that

since

The workers

These

therefore

other

come from

400,

consumption

to

the

clearly
to

800
a total

capital.

demand for

as do the

Ib will

If

obtain

equal

production.

surplus

recovered

it

must

means of

their

exchange

necessities,

200 as well.

equal

200 in

purchase

from

up constant

used

for

have purchased

they
fund

an exchange

relevant

la(s).
for

cap-

and lux-

the

are

Where does

latter

the

now has realized

latter

Well,

restore

and

480)

already

IIa(c).

Yet

production

consumption
will

designate

necessities

and so will

equals

so the

1600

The capitalists

consumption

800,

equal

replacement?

in

devote

will

its

short

capitalists

1600 means of

of

and the

down into

consumption

produce

from

department
still

their

and

necessity

we may also

both

means

production

consume

workers

to

which

the

themselves

many means of

immediately

that

as only
leaves

requires

in

use

IIb.

800 Ia(s)

capital

of

for

Ib must necessarily
what

group,

articles

production

Ia(v)

800 + 480 = 1280 of

for

production

capital.

produce

400 means of

then

consumption

of

which

IIa;

must

the

Those

one

In reality

matter.

for

break

this

the

least

at

constant

production

Ia

the

their

end of
I:

for

means of

will

and so we must

impossible

realize

production

former

the

provide

If

the

1600 in

lb

to

department

means of

Ia and

subdivisions.

in

for

provide
must

italists
uries,

in

We know that

as Ia,

II

by no means the

suitable

which

luxuries.

is

is

department

branches

of production

of

in

capitalists

This,

make it

and actually

and 40%

120 means of

means of
constant

production
capital;

-146the

conversely,

from

in necessities

This

800s

from

Marx did

Ha

This,

for

back to

Ha

is
use

on our
3200c
1600c

Ia.
Ha.

+ [480a
+ 400s

+ 800v
+ 400v

of necessities

(a)

will

purchase

exchange

IIb

could

production.

production

dilemma?

the

particular

can purchase

money,

their

200 of

in

means of
IIa's

1600c.

the

that

and IIb,

the

and lb(s)

Let

suitus go

scheme would

of

has already

wages

its

only

in

Ha.

subsistence
This

dealing

to

leaves

Ha

with

quantity

these

ignored

as this

we are

the
in

capitalists
We have

problem

form

to

refer

value.

surplus

Ila

proceed?

Ia(s)
(b)

between

can exchange

advances

in

their

with

affect

buy

means of

that

a reproduction

what

for

Ib

produce

means of

this

exchanges

+ 320b]s

and luxuries

and does not

they

of
with

means of

to-

patched

assumptions.

a and b listed

Ib

for

produce

do we solve

and reconstruct

The subscripts

internal

not

not

that

800c + 200v + [120a + 80b]s


400c + 100v + 100s

Ib.
Hb.

groups

does

How, then,

beginning

the

like

IIb.

la

however,

We assumed
Ia

lux-

capital.

directly

Hb.
with

400 in

succession

Ib does

with

purchase

Engels

that

whole

do.

Ib will

problem,

consumption

items

in

40%

purchase

constant

notes

This

cannot

luxury

of

its

his

will

as well.

purchase

one crucial
in

Ditto

can use.

impossible.
in

is

la

Those

restore

means of
it

in

Ha

1000

have

and Ib will

from

I together

Capital.

This

exchange

too,

in

not

of

exchanges

that

direct

effect

least

Ia

necessities

luxuries.

There

II

production.

production

in

IIb

Marx.
at

in

The capitalists

can therefore

tackle,

assumes that
means of

IIb.

make Volume

to

gether

Karl

not

in

have purchased

together

will

capitalists

The capitalists
IIb

IIb;

Thus far

look

and Ib

and the

= 320 from

200 = 80.

40% of
uries

leaves

only

their

able

IIa,

la

480 and 120 respectively

bought

of

in

workers

workers.
This
200 in

the

been

solved,
How

with.

The latter
they

do,

money and

and

-147IIa(c).

1400 unsold

in

the capitalists
from

sumption

IIa.

from

tion
it

200 in

also

received

ated

in

cuit

by advancing

wound up in
hold

it

of

were to

when it

made any purchases


do.

to

proceed

la
Ha,

480 in

of

tion
It

articles

means that

that

it

must

sells

buy necessities

from
its

of

600 to

capitalists.

modities

it

from

capitalists

of

means of

production

entire

Ia.
I it

constant

required
capital

means of

production

la
its

to

which
to

capitalists

have not

own money,

sell

This

they

into

its

fallen

have

its

got

has managed

luxuries.

or

280 of

and purchases

Ila.

is

to

of

its

constant

further
a

120 in

of

1000 to

money it

replace

component

needs

the

the

entire

workers

consump-

capital.
money to
commodity
of

by selling

received

further

money it

1600 means of

the

replace

advances

these

now has the

cir-

Ia

I and

these

com-

that

much in

means of

600 in

necessities

to

1000 and purchased

By selling

entire

consumption.

money that

by selling

spent

origin-

which

means of

now has disposed

IIa

Ia has

money

1480 out
it

Of the

has already

production

its

if

of

1600 IIa(c)

equivalent
its

200 in

from

IIa.

the

produc-

This

necessities

120 when lb

remaining

means

money that

this

the

off

as wages.

workers

value--but

a further

dispose

but

started

bought

has sold

IIa

advance,

surplus

the

adds

not

800 in

the

to

As a result

either

of

commod-

means of

addition

value.

necessity

This

the

its

takes

hands by way of

its

200 of

IIa

surplus

200 of

of

did

workers

to

in

remember,

money to

the

sold

its

realize

an equivalent
yet

where

unsold

con-

replacement

1000 in
back

gets

But

it

we will

200 in

IIa,

Ia

as Ia(v).

money which

The latter,

Ib.

money and buys

transaction

advanced

acquire

money

means of

money and 600 in


to

the

capital.

1000 in

this

(with

800 in

them as wages)

1000 in

constant

the

had originally

to

Ia purchase

made any purchases

its

With

Ia.

in

workers

now has

yet

now takes

the

advanced

IIa

for

of production
IIa

Ia

has not

It

ities.

Next

to

Ila(c).
and converted

the

buy

the

rest

Thus

IIa

has realized

into

means of

it

of

the

pro-

-148likewise

la
320 in
it

from

its

Ha

to

200 of

these

back

320 have
Ia,

to

In

of production).
come Ia's

of

has,

It

s).
Ia

the

takes

entire
its

out

it

need

320 in

money which

had to

la's

point

consume,

and in

the

advance

process

280 in

the

money,

total

have

before.

This
has

it
Honey
;

means of

makes

sold

all

advanced
consumption
between

proportion
these

means of
it

to

returned

which

have

(its

IIb.

acquiring

means

by lb

not

It

correct

of

its

of

+ 480 neces-

did

the

and

480 in

production

view.

back

to

Ha

its

rest

800v

from

of

all

the

bought

it

luxuries

what

pleases.

to

money advanced

1600 means of

320 in

as it

the

sold

acquired

In

it

has purchased

has

and necessities.
it

120 in

of

Ignoring

note.

lb(v)

bought

has received

and it
to

Ha

excess
advanced

do with

to

(when

Ha

the

has

and

natura

came back to it
it
Yet/ma. de 480 in pur-

Once from

to

la

from

complete

some

money.

hand

(when

la

320 and buys

capital;

consumption

Ia

is

and which

twice:

has

it

commodity-product;

luxuries

320 in

in

actually

of

280 in

only

while

as we noted,

circuit

capitalists

workers,

another

So,

IIa,

this

as variable
its

IIa.

way via

from
1280
=

sities

is

to

addition

it

point

from

back

and then

necessities)

money

last

its

800s

This
what

circulated

and again

its

of

over

has

that,

of

all

sales

has advanced

Ia

on top

and,

v+

through

advanced

of

advance.

not

Ia

chases

then

did

This

away,

straight

it

disposed

own purchases.

800v that

the

now

which

money

received

make

has

with-

any complications.
This

leaves

IIb

with

At the

same time

IIb

has

has to

get

means of

rid

to

production,

by taking

the

of production
hand when it
through

of

its

320 in
from

sold

the

means of

IIb(c).

It

however,

and it

money it

just

received

in

turn

had these

made 320 in

Ib

purchases
from

IIa

does

(200
without

did

it

money which

320 of
its

replace

Ib.

capitalists)

320 in

has

this

now,

from

la

at

its

buy these
in

least

and buying

means of

through

to

part,
means

production

workers

any compensating

it

that

consumption

still

either.

advance

not

on

and 120
sales.

And

-149these

by selling

means of

leaves

IIb

means of

production

means of

production

still

can only

buy

from

is

The circuit
it,

advanced

proper

simple

merely
ment

from

assuming

the

system

necessitated
ment I,

of means of
At the

complex
the

of

all

80 luxuries

direct

exchange,
for

separate

with

to

one of

purchase.

those

have

the

and of

it

which

the

reproduction

values

80

and Ib with

money needed

as

products

are

much

organic

who

been

sat-

restoration

of

in

commodity-products

a whole

the

their

the

the

once

where

sales-without-purchases.

could
the

The

the

the

of

and the

the

take

realization
place

this

under

via

of

labor

between

Ha

economy--

entire

production
for

of

in

capitalists

breakdown

of

By
depart-

each

division

and IIb

purchases-without-sales
And all

the

the

division

social

in

capital
of

conditions

appeared.

depart-

of

types

specific

proportions.

quantitative

correct

only

first

it

material

Ha

the

others,

luxuries,

feature

in

needs

this

departments

commodity-product

value

important

and in

same time,

of

determined.

division

meet

than

interdependence

material

the

all

surplus
and

was

least

the

composition
the

of

of

narrower

necessities

production,

between

we assume

the

division

had to

circuit,

Ib;

and a shortage

for

simple

of

the

of

unsold

money has returned

of

once

a particular

which

exchange

upon

between

II

the

exchanges

that,

a given

and IIb--seemingly

ment's

this

a given

department
for

of

reproduction

and

back

gets

form.

department

each

last

from

needs

the

all

elements

material
We see

for

terms

still

through

The conditions

individual

the

long

at

and a need

advancing

now complete,

in

it

which

unsold
is
This/done

Hb.

etc.

both

isfied,

of

items

two sub-departments

these

all

80 luxury

with

80 in

of

lb

had advanced.

the money it
This

production,

was fixed,

labor
of

each

sub-depart-

an extraordinarily
had to
simple

exactly

reproduction!

match

-150NOTES TO APPENDIX TO PART I


1.

VKA 17,

2.

Zakat

3.

Capital,

pp.

44-45.

Kapitalizma,
II,

pp.

p.

81;

413-14.

p.

83,

fn

1.

-151PART II

SIMPLE AND EXPANDED REPRODUCTION UNDER CONCRETE CAPITALISM


CHAPTER
SIMPLE

In Part

I we showed how,

for

a scheme

simple

= IIc

I(v+s)

that
and

Ilc

any

imbalance

for

Beyond
means

production,

and
as

problem
ital

an

the

of

(or

Needless
schemes from

fact.

conditions

the

could

take

place

the

entire

the

not

expanded

economy

and antagonistic
primitive

essential

socialist

of

theory

was the

the

where

simple

re-

We saw

this
in-

of
as

introduced

the

constant

capthe

within

result

question

was how

industry

coexist-

when he came to
an economy,
production.

two regulators,
of

production:

accumulation.

modern

Marx's

to modify

need

and economic-political

such

of

of

the

him

us that,

systems

industrial-

reproduction

well

at

petty-commodity

his

under

components

as an historical

of

of

and

arrived

society,

represent

famine

that

into

alone.

For

surprise

I(v+s)

sector

system.

as

was

between

other

values,

sectors,

reproduction

premises

Soviet

material

both

angle.

of

sector.

accidental--and

even

assumption
exchange

of

agriculture

to

for

Preobrazhensky

say,

should

the

concrete

law of

a goods

sector

a different

of

from

different

how

the
of

capitalist)

to

showed

simplifying
of

strictly
the

one

reproduction

balance

any
be

construct

than

more

simple

drawing

by

only

mean

departments

duce a new sector

the

the

of

would

we could

of

a whole;

sector

reproduction

peasant
So it

lowed

as

an historically-given

analyze

ed with

economy

would

analysis

both

within

industrial

to

it

Marx,

economy

condition

production

what

an

a basic

we also

we removed

merely

in

be overcome

of

from

starting

particular

this

ly-produced

volved

the

could

exchange.

as soon

that

each

within

REPRODUCTION

reproduction

we derived

From this

a conflict

the

analyze

he would
This

folsaid

which
between

The law of

intro-

that

two

value

and

-152in

Already

and

economy
it

in

his

Ekonomicheskie

the

understand

study

to

of

in

that

stated

be necessary

would

used

to

in

he

NEP)

Under

Crises

1923,

Pri

to

order

sources

and expanded

disproportions

and

to

the

Soviet

the

analyze

crises

department

(Economic

NEP'e

properly

its

of

a third

add

simple

Krizisi

two

had

Marx

reproduction.

for us to carry
In general,
out the necessary
the
analysis
of all
of the exchange of goods in our commodity-socialist
conditions
system of economy, we will
need not two schemes, with which Marx
but three.
It is necessary
to introduce
operated,
a third
scheme,
the exchange of goods and the numerical
characterize
which will
indusregularities
and proportions
of this
exchange between state
'
try and the peasant
economy.
Only

then

economy in. the


the

with

it

would

be possible

NEP period.

practical

theoretical

other

analysis

of

up his

that

just

abstract

in

we drew out

on page

K, those
letter

all

previously

a mixed

of

the

p represents

and k represents

those

would

what

The problem

both

introduction

the

means of

production

did,

Preobrazhensky

was a
Thus an

out.

pointed

necessitate

and
is

and this

argued

as soon

the
which

values
P obtains

this

that

his

the

which
from

capitalist

are

sector

K obtains
K.

scheme of
system

production
of

part

was an essential

as we compare

The departments
pre-capitalist

as historically

categories

economic

capitalist-petty

128.

do.

not

an additional

analysis.

We see this

method.

reproduction

small

realized

produced
is

treated

and we have

specific,

labelled

seemingly

as he had already

itself
This

Preobrazhensky

his

entire

was concerned

most

would

reproduction

which

pick

soon

economy,

consumption.

where we will

of

as always,

even the

department

third

expanded

of a new sector,

have

must

system

of

means of

of

the

and regulate

endeavors.

scheme, " or

whole

understand

Preobrazhensky,

significance

Preobrazhensky
"third

to

labelled
from

with

simple
the

sector
P.
P via

one
are

The
exchange;

-153KI.
KII.

4000c[3750k

+ 250p]

+ 1000v

1500c[l000k

+ 500p]

Total

production

Pl.

750c[

500

Total

of

articles

is

inapplicable;

of

simple

to

can be used

only

in

take

into

by the

indirectly

What sort
Preobrazhensky's

of

128.

I(v+s)

within

of

and IIc

circumstances),

constant
total

capital

consumption

makes the
as "one

is

Although

we will

a single

is

equilibrium
equivalent
fund

of

sector

of
the

the

value

to

possible
combined

combined

the

identical

(except
if

but

I.

case

to

on a scale
labor

of

this

power ... "3


type?

for
saw
we

own

between
accidental

most
the

we exchange
departments

this

also

of

the

under

expand-

product

surplus

what

consumpof

in

equilibrium

departments

of
of

of

cannot

an economy

not

fund

question

from

have

circumstance,

themselves

law of

peasant

mechanics

production

producers

emerge

conclusion

because

expand

by the

regulated

first

to

independent

regularities

scheme on page

it

power,

only

This

and the

production)

the

organic

two divisions

the

only

categories

in

the

of

simply

and the

no counterpart

We have

labor

can go not

production

only

s,

analysis

pet-

consume dir-

producers

sense.

of

is

capital

value,

much more complicated,

of petty

is

variable

as surplus
have

up the

The structure

related

Conversely,

of

divide

the

up means of

value

consumption

of

makes our

account.
that

= 2250

500k]

= 6000

not

v and s.

a conditional

much easier.
(used

[1000p+

As a result,
such

either

capital

into

income the petty

product.

Preobrazhensky,

does

production

c/v,

to

consumption

category

the

assume any constant

that

fund

capital,

ed reproduction

expand

+ 4000

the

economy,

reproduction

constant
tion

or

= 1000p
+1000s]

8250

only

annual

political

composition

according

is

= 2250

fund

produces

that

such

their

of Marxian

it

375s

[KI(v+s)

+ 1500 consumption

petty-commodity

there

from

economy,

of

k]

P=

consumption

production

ectly

in

= 6000

8250

+ 1000k]

production

The sector

K=
250

p+

2000c[1000p

PII.

ty

in

375v

+ 1000s

II
This

total

against

the

much we have

-154-

this

first

into

P must

not

surprising,

at

their

that

the

value

equal

the

value

of

in

ments

K),

fund

in

is

assumption

there

must

(If

this

achieve

of production

own.

show the
components

reproduction.

buys

500).
(= 1000),

It

It

are

sold

these

sells

KI,

With

petty-

this

a dispro-

is

place

two

133--but

on page

that

imbalance

and

by drawing

this
the

capitalist

the

surplus

PII,

to

of

have

petty
In

orbit.
means of

has a deficit

which

conversely,

hour

depart-

we will

a critical

PII,

to

both

the

taking

into

of

c to

of

between

rectifies
it

exchange

values

really
with

is

This

ratios

c/v

example

Preobrazhensky,

amount;

however,
has
fact,

in

of

promeans

has a 500 surplus

which

fund

whose consumption

in

constant
that
more
buys
well

given

us a far

the

the

exchange

of

First

capital.
part

from
the

of
PH
rest

enough.

its

(v+s)

(1000)
of

its

But

this

of
which

than

not

is

its

needed

what

one we later
fixed

the

all,

does

deficit
means of

comes to

only

to

composed

and circulating

KI does

KII

hap-

really

scheme than

more complex

to

close

is

this

shows us that

very

proportionality
of

is

our

same 500.

is,

It

found

from

500,

this

in

and bringing

taken

look,

PI merely

actually

KII

simple

Preobrazhensky

pens.

only

itself

consumption,

A closer

with

has

worth

by these

short

our

sector

of

of means of

satisfied

arose

the

labor.

of

from

more primitive

place--one

capitalist

exchange
not

one that

exchange

KI,

of

takes

K.

goods

P against

of

of

what

scheme we have

duction

(compare

Socially,

into

production
the

the

economy

exchange

is

all

obviously

of

departments

be an equal

that

from

pass

P into

the

spite

one hour

worth

below).

capitalist

cannot

both

go from

that

derives

that

commodities

assumes

peasant

condition

to

similar

more on this
the

those

no non-equivalent
labor

portion

the

of

production

sectors.

in

and that,

consumption

the

of

Preobrazhensky

since

structure

Preobrazhensky

relationship

one is

values,

technical
the

A corollary

shown.

already

not

not
with

exchange

KII

(which

consumption
1000,

It

purchase.

and KII

from
has

is

-155-

to replace

constant

has the

unsold

surplus

belonged

So far
(half

it

consumption

the

means of

talist
total

PI for

in

tion

the

KIIc

combined

is

need means of

a fairly

dictated

In

return

two

thirds

of

peasant
in

consumption

to

consumption

structure

that

produce

means of

which

are

of

of

capi-

producis
for

for

exchange
called

of

the

of

This

PII.

the

for.

production
They

consumption:

industrial-capitalist

are

means

means of

is

technical

sectors,

means of

Thus we see that

sector.

the

production

has acquired

which

by the

both

fund.

What remains

is 1000 in

PI,

exchangeable

agriculture.

of

must

them to

the

it

circuit

from

production

agricultural-peasant

PI.

complicated

two departments

the

each of

fund

PI's

its

the

KII

means of
of

which

like

sells

all
all

peasant

KII

consumption

of

means of

the

plus
PIIc,

plus

complexity

peasant

within

KI(v+s)

combined

This

1000 in

peasant

be exchanged

to

transaction

a simple

from

It

has obtained

needs,

looked

exchangeable

has disposed

it

production

product

social

its

is

needed.

its

replenish

KI and S00 to

to

is

more

somewhere.

of
It

KII

one third

origin,

all

PII).

to

requires.

consumption--1000

all

in

KI has sold

Now it
it

glance

something

1500 to

of

1500.

of

first

consumption

need

and half

KII

to

amount
at

Clearly

means of

so good.

the

while

KI.

to

has an overall

which

of

commodities,

500 in

this

sell

to

capital

and the
different

a qualitatively

type.
But

this

exchanges

of

ments

in

place

their

(produced
other
change

means that
commodities

both

sectors

constant
in

articles
between

KI)
of

that

means of

production

part

of

will

which

will

produce

and part

of

agricultural

KI has

terials,

and PI has

to

for

which

consist

replace
to

works

out

250 of

restore

of

right

all

its

250 of

constant
its

all

the

of

The departeach have


of

consist

We thus

production.
This

for

accounting
reproduction.

capital,

KI and PI.

finished
simple

needed

scheme because
etc.,

we haven't

in

internal

and
ex-

Preobrazhensky's

capital

constant

re-

machines

raw materials
have

to

in

capital

raw mawhich

-156had previously

existed
The cycle

of

would

be a very

simple

around

so that

250 PIc.

for

It
figures

in

produced
would

nothing

absolutely

in

reproduction

between

combined

constant

through

all

about

the

He never

route

this

a mixed

exchange

that.

is

What

ensue.

to

refers

later

"Economic

Equilibrium

in

in any of

the

first

to this

keep

should

mind

that

the

question

his

results,

to

lay

system

economy.?
the

sectors

is

and show

be overcome

how if

by adjusting

and leaves

does

in

actual

the

article

At no time
refer

back

point.

We

he ever
at

at

have

would

famine

goods

matter

show the

this

the

of

I and the

the

which

though

simple

this

because

it

6
concerned

analysis

for

the

departments

of

scheme shows,

reproduction

of

the
out

a later

more

of

valid

for

for

any economy
What

commodity-socialist.

arises
within

scheme
he wants

analysis

interdependence

a disproportion
production

are
or

this

proportionality

of

capitalist

study

concrete

has presented

conditions

conditions

of

cautions
alter

would

exchange

stage

reglarities

and even

sophisticated

conditions

and these
be it

of

composition

the

showing

with

reproduction,

Preobrazhensky

exchange,

movement

question

Even so,

economy,

reveal

this

up at

laid

general

USSR" (VKA 22).

be taken

He first
of

leave

material

groundwork

the

equilibrium

crisis
says

scheme of

the
the

of

first

even

of

type

Preobrazhensky

brackets,

about

System

this

value

and must

in

production

this

II,

figures

means of

that

fund

travels,

the

the

out

departments

was obviously

of

based on market
he now does

traces

Preobrazhensky's

and saw what


is

consumption

the

on.

a strictly

to construct.
mixed

He presents

argument

what

later

in

only

this.

We will

inherent

a given

more amazing

scheme.
in

133)

the

on economic

Preobrazhensky

of

of

articles

be important

will

famine

circulation

his

to

was a goods

combined

which

been central

juggle

(p.

250 KIc

of

now complete.

us to

above

of

an exchange

for

thing

economy,

capital

is

reproduction

there

We did

KI.

We have

as machines.

the

in

the

sector

between
system
that

the
it

can

had been

two

-157is

This

unaffected.

disproportion

we saw that

There

by drawing

alleviated

the

this

fact

adjust

to

zhensky

takes

sectors

will

To this

end he presents

tion

of means of

starting

to

sector

such

3500c
2000c

+ 875v
+ 500v

PI.
PII.

1000c
1750c

+ 2000 consumption
+ 3500 consumption

4000c
1500c

PI.
PII.

750c + 1500 consumption


2000c + 4000 consumption

+ 1000v
+ 375v

When we compare
has not

changed;

altered

is

the

two

has total
division

fund
fund

of

production

is

now in

means of

consumption

it

was before.

what
in

In the

present

within

K of

this
its

rearranges

more means of

means

produc-

be the

response

the

capitalist

of

of

situation

example

250;

there

production

in

deficit

= 2250
= 6000

Total
total

labor

of

labor.

means of

now a shortfall
however,

production

social

the

within

What has

production

the

inadequate

previously

way that

will

consumption
of

could

equilibrium

have
than

means of

has risen,

is

Everything

sector

petty-commodity
It

sec-

capitalist

capitalist

and the

be if

= 8250

each sector.

within

The only

= 8250

production

now shows a surplus.

PI,

= 8250

production

production

we see that

would

is

Total

self-sufficient

and fewer

production

Total

fund
fund

division

social

= 8250

Scheme

social

formerly

be maintained

and the

production

= 3000
= 5250

production

the

of

Total

schemes

that

now such

reverse

also

the

+ 1000s
+ 375s

the

nor

that

of

of

Scheme

= 6000
= 2250

KI.
KII.

production

What will

system as a whole.

production

fallen,

a rearrangement

+ 875s = 5250
+ 500s = 3000

Old

of means of

has

sector

be

show how both

to

the

the

which

could

Now Preobra-

order

within

in

has grown.

KI.
KII.

is

in

any new disproportion

capitalist

sector

exchange.

point,

a new scheme,

conclusion.

capitalist

into

sector

New

tor

the

first

our

capital?

social

sector's

peasant

consumption

the petty-commodity

from

within

as his

the

within

of production

different

somewhat

while

to
it

produce
used

production
PIIC

has

to.

-158has fallen,
way the

this

peasant

means of

essary

falls,

equilibrium

if

corresponding

sector

production

of

reproduction

and takes

of

from

peasant

are

is

sector

are

in

to

in

Preobrazhensky

for

capwithin
be

an important

relation-

study

of

did

not

process

draw
of
of

economy brings

it

exists
its

of

constant
with

We have

commodity
additional

this

that

sector

that

crop
of

of
between

circulation
of

up

the

seen as well,

composition

sources

then.

inter-relation

conclusions

appropriate

takes

analysis

by a redistribution

material

capital-

and commodity-

exchange

sector.

the

our

of

disproportions

certain

the

in

production

more properly

capitalism

can be overcome

petty-commodity

with

concrete

upon

those

goes

each de-

Preobrazhensky

two constituents

capitalism

more complex
of

deal

It

in

means of
with

simple

account.

production

extent.

and we will

to

only

one hand,

on the

into

physical

limited

a very

KI-PI,

of

raises

therefore,

applies

interchangeable

not

because

types

the

sector

is,

of values

sector
be maintained

can only

of

composition
that

capitalist

There

course,

exchange

such

that

own analysis,
new,

nec-

arrangement

bourgeois

petty

movement
of

Second,

sector
the

This,

and depends

equilibrium.

though

different

our

production,

capitalist

the

us with

First,

labor

this

to

VKA 22,

social

his

with

would

as a whole
the

technical

the

economy.

to maintain
the

In

reproduction

the

of

same amount.

the

sector

indispensible

petty

only

now he has provided

with

KIIc.

market

any other

established

of

between

except

up further

socialist

in

each

production,

Right

production

simple

system

by the

other.

that

partment

this

the

relation

saying

has

department

on the

ist

If

one department

within

and KII-PII,

the

against

as an adequate

prevailed,

within

production

inverse

without

capitalist

consumption.

Preobrazhensky

If

clear,

provides

exchange

ship.

level

for

and serves

means of

From this

its

economy

production

impossible.

the

PI available

production,

italist-produced
the petty

2S0 in

making

al-

from
exchange,
two

disproportion-

-159and crises

ality

along

with

it.

NOTES TO CHAPTER 3
Krizisi

Pri

NEP'e

(Economic

1.

Ekonomicheskie
1923),
p. 16.

2.

in the text;
There is an error
VKA 17, p. 40.
KIc reads 4000c
[3725k + 250p] instead
We have changed
of 4000c[3750k
+ 250p].
designation
for the petty-commodity
Preobrazhensky's
from
sector
D (for
the Russian dokapitalistichesky)
its English
to P (for
translation,
pre-capitalist).

3.

into
This as we know, became translated
fact
during
an historical
its
the goods famine,
than market
rather
crops
when the peasantry,
simply
on terms it considered
unfavorable,
went over to increased
in natura
consumption
of its
own product,
along with handicraft
for those products
of goods which could substitute
production
of
supply.
urban industry
which were in short

4.

It

Crises

Under

NEP,

Moscow,

figures,
is
Preobrazhensky's
that
this
an
artifact
of
might seem
fund esince he has set KI(v+s)
equal to PIIc and PI consumption
the system as a whole will
then baland obviously
qual to KIIc,
however,
is itself
This latter
an artiance.
set of equalities,
in the
fact of the symmetry he has established
between production
in K equals
in P; output
in KI
Total
that
two sectors.
output
in KII.
in PI equals
in PH and that
We could
that
equals that
set up a different
scheme where the volume of production
easily
differs
between K and P and where the above accidental
relations
do not occur:
KI.
KII.

6000c
1500c

+ 1500v
+ 375v

PI.
PII.

2000c
5500c

fund = 6000
+ 4000 consumption
fund = 16,500
+ 11,000 consumption
Total
production

+ 1500s
+ 375s

= 9000
= 2250

Total

production

= 11,250

= 22,500

for the system as a whole,


Here we have simple
reproduction
does not exist
in any one sector
own.
on its
equilibrium

while

S.

When we speak of non-equivalent


with the
exchange we are dealing
Obviously
labor.
problem of what constitutes
socially-necessary
But
is the same in either
sector.
one hour spent on production
in the capitalist
this
sector,
one hour will
yield
more products
it will
As such, exchange relations
see more use values
produced.
be dominated
by those of the more efficient
econowill
capitalist
This also raises
theoretical
the more complicated
question
my.
of how we evaluate
exchange between two sectors
which are not govto the
laws.
Petty
erned by the same economic
conforms
production
law of value only to a limited
degree.
Yet its
exchange with the
be subject
to the law of value,
capitalist
and evaleconomy will
It is precisely
here that
uated on those terms.
non-equivalence
becomes an historical
fact
the differing
which reflects
productivities
of labor
of the two economies.

6.

See Part IV, below,


of
where we take up Preobrazhensky's
analysis
in the Soviet
Even here Preobrathe circulation
process
economy.

-160himself
to a merely verbal
zhensky confined
argument and failed
to
work out all
of the implications
of his analysis,
which the
of the reproduction
application
schemes--even
one as basic as that
have shown.
on page 1S3--would
7.

Throughout
VKA 17, p. 45.
the VKA 17 article
Preobrazhensky
refers
if we introduced
that
to the complications
would arise
the quesi. e., exchange between the same departtion
of internal
exchange,
but cautions
sectors,
that this
ments of different
can really
only
be taken up at a more advanced stage of analysis.

8.

Preobrazhensky
VKA 17, p. 46.
notes that historically
capitalism
did not develop
in this
Both KI and KII advanced simultanway.
in different
(due to their
though
differing
eously,
proportions
compositions
organic
of capital,
as we deal with in the next chapAs he shows in the final
ter).
section
of this
article,
petty
in assisting
plays
production
an instrumental
role
to
capitalism
disproportion
between KI and KII.
overcome this

9.

The text
is a direct,
that
there
actually
states
proportional
between KI-PI,
tionship
on the one hand, and KII-PII,
on the
Both the argument
on the preceding
pages and the reproduction
however,
that
the relationship
schemes make it perfectly
clear,
is one of inverse
proportionality.

relaother.

We should also note that


in the production
when we speak of a fall
departments
of one of the capitalist
and the role of petty
production
imbalance,
in overcoming
(as
drop can be either
this
this
absolute
in a crisis)
(as when one department
or relative
accumulates
at
In either
a faster
pace than the other).
case, the petty-commodity
flexin affording
sector
plays
a vital
part
much-needed
capitalism
ibility
in its
to adjust
to such momentary disturbances.
ability

-1614

CHAPTER
EXPANDED

Preobrazhensky

Before
italism

and study

ditions

of

cretize

Marx's

expanded

II

But Volume

pure

a two

study

in

from

of moving
studying

pure

what

composition

and
on from

is

accumulation.

stressed,

was terribly

of

capitalism

pure

take

account
and the

that

coexists

reproduction

under

under

consisted
in

both

capitalism,

con-

of

tendencies

move straight

production,

economy

a capitalist

drawback

when there

must

when circulation

under

our extrapolations

concrete

each department's

of

in

connections

to

cap-

amend and con-

only

the

out

regularities
there

system

the

we could

already

detail;

capitalism

occurs

work

concrete

further

If

an economy

the

out

great

had to

economy,

such

of

production

not

as we have

Capital,

reproduction

did

it

CAPITALISM

analysis

capitalism.

sector

Marx had laid

incomplete.
simple

of

to

of

the

he first

was that
of

PURE

extend

reproduction

reproduction

simple

could

UNDER

capitalist-commodity

analysis

inter-relations

ial

the

investigation

Marx's

of

REPRODUCTION

terms
the

of

mater-

inter-

mutual

pre-capitalist

with

formations.
When it
however,
of

came to

Marx had done

Some of

tions.

to be able

did,
about

to
in

to

the
the

the

go further
concrete

second

organic

in

cies

would

Part

III

part

emerge

of

VKA 17,

the

of

ratio,

c/v,

as society

III

of

USSR.

capital.
would
from
Capital,

augments

beginnings
assump-

simplifying

most
away if

Preobrazhensky
that

an analysis

capitalism,

barest

the

could

Marx's

In his
remain

where

and improves

then
premise

scheme Marx

original

constant

even his

basic

in

both

own detailed
he showed what
its

was

actually

What Preobrazhensky

was question

abstracting

Volume

the

be stripped

the

even pure

undertake

under

and establish

composition

of

it

economy of

he was therefore

sion

more than

now had to

these

had assumed that


ments;

little

and had examined

an analysis,

apply

expanded

departdiscustenden-

technological

-162take

base and machines


previously

process

when he studied
that

assumption

in department

II

than

duction

in

fact,

will,

the production

tion

the

if

and II,
equal

necessary

in

tion

left
rates

exchange

to

organic
if

in

their

ditions

will

produce

disproportion

is

I(v+s/x)

and allow

it

grow

to

I.

department

keep pace

accumulation

to

then

of

brings

with

the

about.

the

natural

cap-

if

we assume
a lower

department
the

both

I,

same perthese

of

means of

to

transfer

assure

assump-

pure

given
in

or

either

will

valid

that

accumulate

con-

consumption
The

IIc.

replace

be overcome

so as to

basis

surplus

under

than

destined

rates.

or,

II

II

production

This

only

to
with

on the

the

capital;

over-production

each year

departments

their

of

II

that

He discovers
of

axis

[I(v+s/x)]

reproduction

expanded

value,

is

assump-

department

different

at

and can only

department

II

II's

means of

capital

partment

to

surplus

systematic,

social

(as

this

of

than

demon-

I the

accumulate

pro-

capital

fund

divisions

I and department

a relative

of

and to

composition
in

fact

the

out

of

that

in

consumption

means of

however,

not,

accumulation

two points.

capital

annual

and a deficiency

total

of

department

of

department

organic

composition

centage

the

these

around
the

of

analysis

composition

department

bring

would

of

within

I's

was lower

capital

and development

and consumption

analysis)

of

He did

and equal

accumulation

centers

we allow

not

exploitation

a concrete

an increase

organic

crisis

of

Marx made the

The production

independently

grow

Preobrazhensky's
italism

I.

a higher

of

labor

the

of

reproduction,

composition

consumption.

he did

of

between

value

organic

and adjusted

Consequently,

IIc.

of

means of

reproduction,

expanded

expanded

Marx made accumulation

presents.

satisfy

have

portions

labor.

department

the possibilities

all

strate

of

the

in

larger

by living

performed

In addition,
realistic

increasingly

over

by rearranging
capital

de-

growth

absolute
rise

from

in

IIc

that

of

-163The Tentative

I.

Just

led

that

with

Marx's

I.
II.

4000c
1500c

Compare this

the total

II.

in

consumed.

This

pand the

functioning

system

500s to
the

one,

as before.

position
it

had been four


This

fact

expanding
with

the

its
the

have

to
has

one,

immediate

expanded

constant

new means of

same as in

value,

department

or

capital
production.

500.

This

if

must

and employing
The organic

the

of

capto
com-

organic

reproduction

I.
look

we only

Department

reproduction.

from

four

of

simple

under

significance

500v and

economy which

a c/v

1500

still

difference

has a much lower

whereas

to

equal

compositions

I has

plus

assume

we also

from

the

organic

however,

(1000v

presumed

risen

of

structure

one,

is

II

ex-

department.

1500

IIc

sets

an important

Department

II,

the

little

surplus

s,

already

two to

only

way Marx described


one half

its

shows differeing

Department

Marx

to

goes

Since

value).

I is

was totally

that

to

equal

in

The technical

capital,

only

production

two departments.

the

of

is

This

it

in

capital

is

department

2000 I(v+s)

of

equilibrium,

total

s in

of

reproduction,

S00 out

So is

same.

The difference

9000.

one half

surplus

us be-

beginning

the

the

exactly

equals

and therefore

v,

scheme describes

within

in

because

scheme.

ital

I's

let

= 9000

production

I is

simple

expanded

Well,

at

therefore,

of

off

750v and 750s.

earlier

present

part

for

reproduction

and variable

I is,

Reproduction

reproduction:

Total

still

means that

of

starts

its

3000,

to

equal

them?

expanded

with

constant

Finally,

as well.

modify

simple

which

turn

consumed

the

to

department

before,

fund

The consumption

schemes

We now assume that

whereas

accumulated,

500s/x--the

in

product,

social

Marx's

= 6000
= 3000

scheme for

the

Production

in department

that

scheme for

Expanded

of

of

Preobrazhensky

+ 1000v + 1000s
+ 750v + 750s

with

Analysis

inadequacies

initial

I.

of Chapter

Marx's

of

the

were

what

reproduction
gin

Nature

I accumulates
between

be distributed

new labor

at

power

composition

of

to

work

capital

the

-164four

in I is
to

increase

I's

capital

to

At

v.

The total

+ 1100v

for

also

means that

must

1400.

or

departments

the

4400c
1600c

I.
II.

rate

interesting

I accumulated

one half

would

of

+ 1100v
+ 800v

What is

150/750,

accumulate

II's
the

at

this

is

not

up between

to

capacity

at

it

If

the

proper

100% in

both

that,

in
his

department

while
II

could

means of

with

in

over-production

After

the

next

year

only
IIc
pro-

department
to

see that
it

dividing

accumulation,
department

proportions,

as-

= 9800

it

in

both

departments):

more,

provide

artifact.

800v plus

production
retains

II

which

equals

department

happen

would

100 IIc

had accumulated

been a relative
what

total

production

value,

an arithmetical
c and v in

Total

surplus

one fifth.

look

equals

consump-

of

Marx

that

its

of

then

year,

scheme is

have

We need only

(remembering

= 6600
= 3200

an increase

fund

first

the

end of

means of

makes the

which

this

There

II.

But

1600 I(v+s/x).

to

equal

demand for

about

I's

would

IIv,

exploitation

have outstripped

duction.

I's

consumption

+ 1100s
+ 800s

or

department

year

= 6000
I is

by 100.

add 50 to

as follows

stands
that

sumption

So,

fund

satisfy

own IIc

150.

to

c and 100

augment

new production

department

of

to

its

we must

equal

accumulates

II

increase

it

go to

this:

product

department

tion

the

of

+ 500 consumption

exchangeable

In order

600s/x,

like

500 must

the

beginning

the

look

will
4400c

I.

So 400 of

one:

I's

capital

be:

will

I.

4840c

Department
variable
year's
I.
II.

II

+ 1210v
will

capital,
production,
4840c
1760c

have
making
both

+ 1210v
+ 880v

to

add 160 to

departments

its

together

+ 1210s = 7260
+ 880s = 3520

I accumulates

pective

values.

If

Total

we work

out

the

appear

will

production
II

process

After

240.

to

equal

50% and department

and 80 to

capital

constant

there

accumulation

Here department
surplus

fund

+ 550 consumption

as follows:
= 10,780

30% of
of

the

their

accumulation

res-

its

-165a number

over

in department
Its

II

is

II

But this

leaves

grows

less--of

II

basic

the

monstrate

of

breaks

the problem
Capital

remains

duction

to

reproduction

regularities

of

problem,

the

and the

abruptly

We are

plus

capital-

accumulate

much

in

this

department
for

last

range

of

Marx

be-

to

to de-

order

Volume

of

II

invaluable

Marx's

I.

discussion

Marx's

chapter

with

in

way,

process.

= IIc.

the

was essential

left

a whole

that

result

in

and de-

axis,

I(v+s/x)

relation

more--and

it

department

to

our

counterparts

notes,

incomplete.

the

the

their

expanded

off

I is

unrealistic

than

value

case--accumulation

as compared

as department

considerably

as Preobrazhensky

analysis

value

to maintain

consume

be the

to

always

surplus

highly

the

surplus

Nevertheless,
his

its

enough

us with

their

this

be so as long

only

department

of

we find

30% of

must

partment

gin

years,

This

50%.

ists

of

of
intro-

he left

that

questions

of

unexplored.
discussion

This
amples

the point

where

stated

the

happens

if

in both

which

of

organic

I and II

we assume

when their

takes

two

1)What

in

de-

one or both
of

rates

accumulation
of

compositions

organic

As we

questions:

rises
equal

us up to

begins.

properly

capital

and ex-

observations

VKA 17,

of

he raises
of

if

from

argument

chapter,

happens

drawn
parts

main

composition

and 2)what

departments

this

is

first

the

Preobrazhensky's

start

the

partments?;

Marx,

throughout

scattered

at

of

capital

differ?
Here we come up against
clearly

talking

about

two distinct

opment,

each of

which

seem to

tendencies
examine
result

it
them

is
each

in

we can discern

composition
compositions

of
in

that

crucial
their
what

difficulties.

certain

tendencies

lead

the

we abstract
That

turn.
is

to

the

product

capital

and what

the

two departments

results
are

within

from

each

when we look
the
the

unequal.

rise
fact

as distinct

Yet

from

them out

of

devel-

capitalist

same result.

way,

is

Preobrazhensky

in

at
the

and

other
the

final

organic
the

organic

Preobrazhenskyt

un-

that

-166fortunately,
driving

did

at,

they

at

fact,

well,

in

the

remainder

up the

when we take

to department

their

I,

combined

lustration,

II.

II

that

than

look

the

Marx's

ment II
dictated

organic

department
so long

I,

the

demands

by accumulation

within

to

satisfy

is

this

condition,
compositions

of

certainly

we must

cumulates

according

value.

no longer

capital

In reality

any differently

than

of

true.

the

this

is

there
those

in

to do,
these

each of

Then,

own examples.
from

capital

department

so as to

behind

organic
the

show

own ilthe

arithmetic.

fact

this
adjust

last

source

assumption

that

nothing

I and to

its

of
to

themselves

the

of

instability.

two organic
And
I ac-

department

of

own production
II

make capitalists

consume

more

this

as we alter

in

only

sigdepart-

within

were

As soon

The deviation

logic

in department

had no immediate

which
I.

we point-

section

accumulation

equilibrium,

of

compositions

was lower

capital

a critical

internal

demonstrate

Preobrazhensky's

unequal

department

becomes

now drop
to

of

to

as we continued

to

them together

scheme in

that

and said

with

regularity

of

composition

show that

Capital

of

question

how he

we will

our

of

with

algebraic

separ-

unambiguous

deal

to

of

do this

Compositions

with

both

two quite

What we propose

transfer

at

We will

Organic

the

in

nificance

plus

we will

When we presented

capital.

is

he was

chosen

them with

the

of

the

it

question.

chapter

question

showing

Let us begin

in

illustrating

effect.

while

Unequal

ed out

this

individually,

is

these

systematically

points
of

Nor

what

own mind

examples--although

and quite

theoretical

tendencies

II

arithmetic

his

between

development.

his

in

clear

distinguish

capitalist

the particular
then,

absolutely

sharply

and used
in

are,

not

of

ate aspects
arrived

being

while

sur-

behave

and accumulate

less.
If

we work

of production

out

years

expanded

reproduction

we see this

over

disproportionality

the

course
quite

of

a couple

plainly.

We

-167-

already

from

year

fifty

I.
II.
After

per

+ 1100v
+ 875v

first

year's

4400c
1750c

before

375,

by 250,

II
tion

year's

year,

And in

the

accumulate
I.
II.
IIc
tion

is

II,

II

also
the

arrangement

of

assuming

a rate

= 6000
= 3000
(also

its

taken

year

50% of

their

it

as much.
in

Already

deficit

the

surplus

than

in

cannot

the

In terms
Part

I,

convert
foreign

carry

out

this

M, there

is

the

into

first
simply

still
If

100.

to

equal

departments

both

= 6600
fund = 3500

capital

some 281 in

commodity

we are

actually

and convert
the

circuit

means of

that
capital
that

somehow assuming

or,

which

no way that
into

end

industrial

metamorphosis,

and see M converted

the

The dispropor-

of

has

II

(from

means of produc-

by 281.7.

money capital;

trade

is,

that

Even at

worse.

fund

circuits

department

but

we have:

value

consumption

of

ex-

out and no further

is

become even

will

into

capital.

has been carried

place,

150;

to

we have

year

equals

money capital

new productive

375 goes

first

it

50v),

plus

accumulation,

it

out,

This

this

After

carried

accumulated

150 (100c

only

twice

= 10,100

production

production.
is

of

second

now greater

stage

first

the

department

the

have

Total

accumulated

production

via

C' into
next

part

perhaps

could

= 6600
= 3500

by 125.

150 in

has yet

has grown.

it

fund
fund

4840c + 1210v + 550 consumption


fund
2041.7c + 1020.8v
+ 437.5 consumption

we examined
that

II

means of

when all

accumulation

+ 1100s
+ 875s

production

representing

of the

If

value,

we will

or more than

of

convert

cannot

surplus

production

and IIv

deficit

the

its

of

in

accumulation

section.

+ 500 consumption
+ 37S consumption

+ 1100v
+ 875v

now accumulates

a massive

preceding

department

Whereas before

pand IIc

the

I's

= 100%):

exploitation
I.
II.

department

cent

4400c
1750c
this

for

be:

will

capital

social

in

example

our

accumulates

of

figures

know the

abstracting),

this

portion

can carry

production,

which

of

on to

the

are

el-

-168ements of

additional

when I's

productive
of

little

better:

The deficit

still

icit

year

of

the

If

we were

find

would

of

is

cess,

for

of

ital

the

than

the
in

scheme,
point

to

the
the

is

For

devotes

year

end of

far

worn

the

year,

value,

situation

= 11,343.3

production

100 def-

the

it

the

only

takes

value

department
than

II

of

trans-

larger

the

surplus

value

ratio

of
If

v,

we look

department
year

is

the

of

cap-

out

of

which

and less

to

increase

Thus

c/v.

labor

of

composition

increase

social

at

the
our

I from

present

our

1210

equals

new surplus

starting

210.
1000
=
-

750
270.8.
=
-

adds

what

the

pro-

merely

organic

to

form

the

the

Now, what

constant).

in

to

being
Thus

its

production

be (productivity

production

1020.8

the

capital

the

Surplus

can add new value

quantum

added

second

in

is
of

appropriates.

employed

s will

be greater.

will

product

replacement.

a higher

equals

greater

off

class

it

this

only

has a lower

of

Why is

can accumulate

remaining

every

we

what

constant

greater

time.

years,

ask,

that

out

of

first

labor

future

more

with

new surplus

As a result
that

the

one department

next

II

surplus

a number

we should

element

exploitation

it

In department

IIc

only

the

department

the

the

end of

more than

each

surplus

living

up towards

other?

accumulates

Total

for

capitalist

the

of

capital,

where

= 7260
= 4083.3

Any society

the

of

situation

capital,

increase

an answer

which

value

and intensity

new variable

considerably

would

capitalism,

the

of

a greater

accumulation

Under

is

this

v component

value

find

to

a function

and saved

c than

out

disparity

the

value,

product--the
ferred

carry

accumulation?

surplus

value

it

to

product.

surplus

the

to

rise

1210s
+
+ 1020.8s
or

Even at

before.

Well,

of

nature

of

226.7,

equals

that

happening?

accumulation

1210v
+
+ 1020.8v

1.4840c
2041.7c
II.

P.

capital,

has given

capital

the

as a result
is

productive

in

each new year

department

I adds

an increment
to

I(v+s/x).

to
This

-169is because
is

the

in

so much larger

before

many years
not

and set

IIc/v

higher

the

disparity

At first

a larger

because
IIc.

however,

the

mass of

(relatively)

we would

ically,

this

have

leading

to

department

II's

back,

equal

the

and loss

fund,

d(v+s/x).

First,
the

the
share

Secondly,
of

the

How is

new v is
of
with

share

to

s going
a given
going

to

of

v,

of

And in

II.

department

with

department
and perpet-

capital

would

present

our
just

II,

back

cut

must

Econom-

in

the

re-

production,
be transfer-

must

(v+s/x),

of

the

plus
to

the

rate

that

that

the

accumulation--the
the

greater
out
which

of

s,
goes

addition
is

it
to

end of
will

consumption

fund

consumption

of

the

(v+s/x)',

is,
to

addition

the

the

to

At

algebraically.

simply

accumulation

as opposed

after

keep pace

on,

what

I.

accumulation,
rate

later

this

with

case,

reproduction

or capital

addition

a function

take

could

not

of

new level

this

augment

consumption.

II

very

increase,

down radically,

this

department
values,

result.

to

production

see

in

relationship,

comparison

could

department

[(v+s/x)],

level

In

declining

department

the

in

Either

is

it

too

department

actually

slow

which

means of

as we shall
I to

this

of

production

Either

to

would

decrease

of

over-accumulation

year,

previous

out

meaning
or,

would

take

not

opposite

was now going


II

itself.

sustain

the

I(v+s/x).

raise

the

comes,

proceeds

s in

v plus

obtain

and I(v+s/x)

would

mean that

We can demonstrate
a new production

IIc

of

deficit

II

total

would

we reversed

within

a sharp

crisis

the

value

to

holds.

conclusion

it

In fact,

accumulation

department

the

I.

we would

new surplus

accumulation

as a whole

If

IIc

this

which

Accumulation

than

Ic/v,

II's

of

to

of

consumption.

and stagnation,

where

from

of

be cut

to

in

accumulation

have

have to move from

red

than

out
I.

between

needed

crisis

also

II

share

would

what society

verse

in

I had available

while

example,

than

than

larger

department

I would

value,

was greater

part

Soon,

so that

ual

IIc
fund

its

just

II

department

in

faster

far

I,

new surplus

formed?
greater
to

v.

a function

increase

c--

-170it

in other

words,

Now, let

us adopt

is

directly
following

the

to

proportional

v/(c+v).

consumption

=1-x

notation:

rate of accumulation
out of s
v/(c+v)
the proportion
of s going to individual

x=
y=
z=

fraction

the

Then dv = xy(s/v)v
= xyv,
So,

(v

'=

(v+s/x)

+ (xyv

+ zv)

(v

rate

+ (dv

+ zv)

= (v

(the

s/v

where

zv)

of

exploitation)

=1

+ zdv)
+ xyzv)
+

xy(v

zv)

(1
(v
+
+ zv)
=
xy)

(1
+ xy) (v + s/x),
=
In other
of

the

the

words,
rate

of

tive

capital.

tion

of

capital,

(v+s/x).

since

show this
ignated

by c',

Cl

dc

c must

the

for

equation
If

as well.

directly

share

c,

of

only

with

which

grow

at

the
is

accumulation
the

v in
to

related
tells

new level

of

the

it

total

composi-

growth

of

be compared?

must

as v and as

same rate
a linear
constant

size

produc-

organic
the

about

of

c in

the

total

capital

of

i. e.,

= c/(c+v)

= xqs

that

= 1,

s/v

dc = xqv.

Therefore,

the

the

one.
capital

We can
is

then

share

and assuming

But v is

to

related

dc

=c+

the

q=

of

growth

we know that

easily

the

however,

This,
the

is

inversely

therefore

c/v.

Logically

If

is

What about

(v+s/x),

and to

accumulation
It

(v+s/x)

of

growth

where s/v =1

a constant
c'

fraction

=c+

dc

=c+

xqv

=c+

xq(v/c"c)

=c+

(xq"v/c)c

c,

(v/c)

"c

=1-y,

then

des-

-171= (1 + xq. v/c)c

if

Now,

is

c/v

throughout

contsant

a production

year,

= x[c/(c+v)]"v/c

xq"v/c

= x[v/(c+v)]
= xy
Thus,

c'

(1

+ xq"v/c)c

_ (1

is,

That
the
to

c,

+ xy)c

and in

of accumulation
of capital,

c/v.

ity

IIc

clearly

between

the

cisely

result

is

will

determine

III.

A Rise

the
in

the

select

organic
a numerical

VKA 17--c/v
I.
II.
In this

is
4000c
1500c

the

down department

pattern

II

of

accumulation.

the

the

in

to

equalwill

divergence
is

of

accumulation

the

algebraic

value

the

of

variable
of

of

have

I and II

we will

confusion,

any possible
in

is

capital

Preobrazhensky's

scheme in

two departments.

is
bring

Total

lower,
its

pre-

exposition:

coefficients

departments

that

+ 1000s = 6000
+ 375s = 2250

order

Ilc

absolute

composition

organic

same in

then

of

Capital

of

fact

composition

pattern

the

v,

rate

This

and so the

To avoid

production

Ic/v,

the

year.

from

s;

Composition

the

the

out

to

where--unlike

scheme total

than

to

a position

each passing

with

example

+ 1000v
+ 375v

from

grow

rise

compositions.

organic

and so the

is

from

to

I(v+s/x),

equations

in

proportion

less

clear

a rise

matter

is

direct
the

must--at

troublesome

especially

out

equally

gives

Organic

of

a different

unequal

is

entire

in

by working

those

v that

The question
quite

obviously

in

result

starting

IIc/v

we obtain

factor
It

if,

than

The reason

The dynamic
capital,

faster

two will

this

proportion

and I(v+s/x),

by year.

year

inverse

and as they

expected

and c grow

Therefore,

grow

the

grow--as

consider

(v+s/x)

Both

interpret.

between

all

We do not

same rate.

quite

(v+s/x)

and

v,

production

since
technical

we have

= 8250
had to

structure

scale

into

line

-172-

with

that

department

of

both

to one in

I.

composition
I were to

alter,

tion

in

ing,

for

IIc

II

of

at

75.

By the
IIc

of

means of

composition

of

capital

relative

to

needs to

replace

what

it

a smaller

hand,

sees

its

while

we started

in

grows,

thus

ment I,

IIc/v,

now inadequate

the

means of

from

a position

worlds.

Department

modities

for

a larger

one--it

in

must

more means of

production

would

50.

And if

would

come from

its

at

exchange

fewer

a larger
back.

once

in

ends

the

II,

fund,

other

com-

exchangeable
In

the

in

its

we have

product

Departfund

exchange

means of

of

case

II's

production.

of

and

so that

same,

component

fund--it

on the

I(v+s/x).

all;

organic

capital

the

return--while

quantity

we took

has fallen.

of

means of

for

still

both

exchange

variable

equality

need

in

A rise

so.

at

giv-

1425
125.
=
-

equilibrium,

changed

departments

realize

there
to

capital

increased

and needs

Ic/v),

stay

I has a smaller

exchange

I(v+s/x)

equal

than

produc-

if

production

constant

means of

then,

fund.

greater

fund

= 325,

advanced

of

= 950,

rise,

consumption

has not

II's

both

of

demand for

II's

to meet

changes

out

hand,

other

of

conditions

Is)

to

I means that

quantity

worn

is

department

also

were

1550

equal

see why this

capitalists'

the

IIc

shortage

would

demand for

When c/v

ceive

was in

out

for

department

in

heightening

on the

four

organic

consumption
of

IIc/v

in

the
in

c/v

I's

be a deficit
if

in

(and hence

and Iv

any change

we now see IIc

modity-products,

is

capital

a rise
If

and Its

production

a smaller

to realize

a rise

before

to

of

same--department

same token,

The deficit

difficult

= 4050

would

together

it

effects

= 1550 and IIv

(i. e.,

same time:

Nor is

Ic

the

staying

our two illustrations


at the

of

straightforward.

say,

1500

be a deficit

fairly

1425 and there

example,

remained

is

so that,

equal

only

on the

argument

capital

then--department
would

composition

departments.

Preobrazhensky's
of

The organic

is

production.

the

of

worst

offers

fewer

department
commodities

both
comII

and re-

has

-173It

be asked,

might

way in which

we've

compositions

were

of

conditions

shouldn't

equilibrium

To answer

this

for

the

by one per

transfer

of

of

in

in
in

chose

in

under

we need

department

each department

have

also

rises

the

it

the

each departlater

composition

move from

4: 1 to

4.04: 1.
This
between

new

c and

department

has

tery

this,

about

If

x equals

c,

and

if

For

the

share

must

of

the
give

department

for

new division
For

153.3

between

and y=

c and newly

added

arrangement

of

the

the

newly

= 4.04:

1,

is

there

simultaneous
s that

accumulated

in

capital

So that

lv.
simple

with

that

we obtain

x=

c and v is

goes
then

we will

have

and y=

91.3.

raise

to
if

and

v,

no mys-

equations.

goes

to

each

augment

the

these

final

equations:

408.7

408.4/91.3

actually

is,

That

= 4.48:

the

1.

II:

1500 +x=4.04(375
187.5
x+y=
x=

this

total

divided

+ y)

x and y,

department

solve

to

the

is

value

I:

4000 +x=4.04(1000
500
x+y=
Solving

that

a way
4.04c

of

portion
c/v

surplus

accumulated

such

relation

we can

the

newly
in

new v

y equals

arrangement

the

that

means

+ y)

34.2,
v of

is

which
4.48:

social

1.

capital

also

a division

Translating
for

the

these
year's

between

newly

added

figures

into

a new

production

il-

department

to

organic

will

to

only

his

II

de-

both

now introducing

capital

static

organic

be maintained

but

A growth

in

we

question,

from

capital

below).

with

providing

years,

the

terms)

Preobrazhensky

example

means that

cent

of

composition

(the

deal

we will

which

organic

cent

the

of

a couple

So,

the

of
if

all,

percentage

accumulation,

ment by one per


lustration

(in

an artifact
After

problem.

uniformly

accumulation?

that

condition

isn't

this

be equal.

accumulation

work out

I,

rise

would

of

rates

equal

the

approached
to

if

still

they

partments,

however,

we get:

-1744408.7c
1653.3c

I.
II.

= 1636.95;

I(v+s/x)

If

we allow

c/v

year,

i. e.,

following

department

For

4408.7
x+y=

= 1653.3.

= 6591.3
= 2471.7
There

is

Total

= 9063

production

a deficit

of means of

pro-

4.08:

1653.3
x+y=

departments

by another

the

disproportion

worsens.

1,

1% in

the

+ y)

[new

c/new

v=4.52]

II:

+x=4.08(409.2
204.6

+ y)

[new c/new

37.1

y=

both

I:

department

167.5;

in

rise

to

98.8

y=

For

to

+x=4.08(1091.3
545.6

446.9;

x=

IIc

+ 1091.3s
+ 409.2s

= 16.35.

duction

x=

+ 1091.3v
+ 409.2v

This

v=4.51].

for

gives

the

year's

production:
I.
II.

4855.6c
1820.8c

I(v+s/x)

= 1785.15;

division

the

the

affect

in

observe
chines

are

lation

introduced

to

the

what we have

value

of

in

our

first

component

stands

to

the

the ratio

of

4: 1,

the new machinery,


ital

turns

two,

the

such that

out

isn't

the

new labor

this

value

to

have

equals

the

of

It

scrapped.
the

risen
requires
about

average

c/v

by 1%, i. e.,
new labor
4.51:

1.

to

continues
of
to

the

power

Again,

the

to

operate

1.

to

up in

re-

is

1 (which

set

work

it

in

alongside
cap-

productive

entire

4.04:

to

power
used

needed

power

ma-

whose replacement

machinery,

labor

we would

what

labor

4.48:

equals

power

to

capital

constant

The old

year).

of

an amount

the

of

so as to

new labor-saving

suppose

require

by adjusting

value,

near

35.65.

to

is,

that

comes fairly

example,

value

so that

new machinery
dc/dv

For

increased

surplus

new accumulated

and these

that

has
here,

problem

capital,

economy.

them such

operate

the

productive

a real

the

out

worked

between

total

The deficit

= 1820.8.

IIc

The way we have


only

+ 1190.1s
+ 446.3s

+ 1190.1v
+ 446.3v

Similarly
it

into

new machinery

in

year

motion
functions

-175the

with

along
though

technically

is not

as efficient
as the

as well
This

newest

rise

by another

more

machinery

addition

1%, to

theoretical

in department

In other

make the

look

1.4008c
II.
1503c
Accumulation
fund

of

I.
II.

4405.6c
1652.1c

I.
II.
IIc

4405.6c
1652.1c

I(v+s/x)
-

we obtained
If
tal,
letting
before
tion

for

gives

+ 992v
+ 372v

rise

between

this

argument

let

us suppose,

the

change

words,

out

of

take

it

average

c/v

took

all

productive

to

c/v

II,

to

prior
5000

of

we would

1875 in
372.

for

Then c would

where

original

and

place

capital

= 4.04.

c/v

In department
the

in

the

so that

have

productive

The total

by apportioning

place

to

according
of

come
to

capi-

social

pro-

final

the

the

accumulation
organic

already-established

1.

4.04:

+ 1090.4v
+ 408.9v

+ 496s/x
+ 186s/x
product

+ 1090.4v
+ 408.9v

+ 1090.4s
+ 408.9s

which

is

very

at

by altering

the

by one per

cent,

even

was carried

the

took
out

with

on the

Thus,
basis

the

of
entire

even
of

method.

the

composition

we disrupted
place.

of

deficit

year

first

our

arrangement

organic

first

the

to

close

accumulation

more closely

any accumulation
subsequently

beginning.

the

section,

1503 and v equal

by calculating

we see that
it

capital

= 16.5,

we look

very

added),

+ 992s
+ 372s

then

the

recently

this:

each department
of

previous

adjustment,

one,

causes

that

992.

to

like

would

composition

which

of

see c equal

would

the

we rearranged

same sort

would

duct

I,

4008 and v to

to around

tal

in

the

year

al-

1.

no contradiction

purposes,

to accumulation.

from

(which,

in

stock

has been most

production

4.08:

before

year

initial

functioning

around
is

the

the
that

machinery

means of

formulation

our algebraic

than

still

of

in

was added

advanced

as the

To show why there

purely

that

machinery

by

capital,
equilibrium

though

equal

capi-

productive

accumula-

organic

composi-

-176capital

tions

of

there

was still

and equal

In fact,
a new c/v

the

we could

I.
II.
Here the

established,

I grew

by an amount

+ 1002v
+ 372v

organic

composition

I has grown

composition

organic

is

The problem
We cannot
thereby

simply

More to
portion
we would
magical

would

II.

So,

again

tion

to

to

a transfer

would

Transfer

As we have
was only

sustain

of

of
have

Capital

already

one way out

of

in

total
Then,

as the

department.

not

fall

grow

out

from

the

sky.

nowhere

of

and

take

indicated,
this

every

conclusion

that

as a whole

can allow

place

Between

grow

the

from

capital

could

between

this

each

II

and every

year
itself

only

under
to

this

dispropor-

this

rearrangement
department

to

access

exchange

with

for

equilibrium,

I had perpetual

proportional

capital

to

any initial

it

dispro-

the

c/v

rising

of

spite

so that

confronted

The mechanism

transfer

The

I will

the

1503.

or

either

does

a constantly

capital,

social

ism must be the

IV.

equal

so long

in

change

department

that

we are

be erased.

that

IIc,

equal

capital

year,

instant

the

of

not

with

every

of

and department

rearrangement

to

1, but

4.04:

still

to

department

since

necessary

once

did

that

presume

warehouse

by an amount

productive

I(v+s/x)

allow

once

proportionality.
point,

to

the

of

proportionality,

retain

additional

re-arise

have

is

I(v+s/x)

capital

presume

the

to

capital

allow

that

re-establish

size

absolute

if,

be:

of

would

of

disproportion

this

necessary

initial

the

two departments.

the

of

from

arose

+ 1002s
+ 372s

to

accumulation

obviously,

and exploitation,

This

overcome
the

would

4048.1c
1503c

in

capital

have

only

Such an arrangement

IIc.

accumulation

funds

exchange

had been
in

capital

of

disproportion.

a sizable

between

inequality

rates

capital-

department

I,

year.

Departments

Preobrazhensky

impasse:

concluded

The systematic

that

redistribution

there
of

-177-

total

the

social

would

The historical

ly

this

Historically

argument

ital

(Part

to
is

III),

fall.

capital
of

cause

the

in the

tion

v in

schemes

once

internal

product

in

the

of

its

increasing

a fall

faster
of
in

I is
line

the

rate

mass of

of

is

Cap-

rate

of

profit

noted,
to

a fall
is

latter

the

produced

value

amount

of

variable

that

the

turn

happens

than

the

of

a rising

this
in

go to
from

relative
be-

growth

that

of

department

a condition

Ia

absolute

department

If

II.

I,

portion

so that

of

absolute

growth

of

addition
the

in
the

production

the

to
In

production

social
for

reproduc-

be insufficient

will

to

the

c/v.

augment
II

in

expressed

department

the

in

This
and faster

production

with

fact

of

capital.

capital

the

the

drops.

absolutely,

than

in

III

profit,

surplus

pro-

increase.

Marx

however,

spite

must

the

of

can on-

society's

Volume

for

rise

capital.

will

capital,

increase

within
II

of

Historically,
the

in

Marx

tendency

in

condition

means of

of

of

the

own resources

department

growth

that

same process

accumulation

I proceeds

relative

I(v+s/x)

of

be a transfer

will

growth

of

production

capital

we add the

demand for

the

the

off

means of

production--in

composition

of

of

an absolute

grows

social

weight

because

productive

the

relative

composition

with

offset

of

to

capital

a tendency

such

IIc.

of

growth

of

the

with

as well.

of

composition

I(v+s/x)

that

ensure

absolute

I(v+s/x);

with

organic

capital

organic

line

along

shown that

There

This

the

We have

cover

plus

the

total

I accumulates

to

in

employed

production

he dealt

as a result

share

mean that

would

the

redistribution

where

is

It

organic

outgrow

in

profit

observed.

increases

to

quite

lead,

in the mass of
not

the

in

A rise

logically

will

IIc

would

devoted

This

to

for

which

keep up with

the

by a constant

be mitigated

duction

for

tendency

a tendency

creates

each period,

so as to

absolutely

grow

in

product

sur-

I as well.
relative

as a whole.
growth

of

IIc.

Consequently,
by estabto try to solve the problem
we are obliged
for each new year,
lishing,
that will
new proportions
ensure equiFor if we take one department
librium.
the
as a base and adjust

-178department
the other
to it,
within
capital
as the
that
point,
could not give us any sort of long-term
pivotal
soluTherefore,
to the problem.
tion
at the end of each year we have
from
first
the surplus
to
set
aside
of all
value of both departto maintain
the level
ments an amount necessary
of production
of
the preceding
the remaining
year,
and then to distribute
surplus
taken together,
on the basis
value of both departments,
of the
Under the actual
of the new year.
of proportionality
conditions
(excluding,
development
of capitalist
conditions
of course,
periods of crisis)
like
for
things
Allowing
this.
proceed
something
bankruptcies
in both departments,
"normal"
the general
outlines
distribution
period's
of capital
of the preceding
are retained;
in the preceding
accumulated
year through
new capital
new stock
is then distributed
hit or miss,
and bond issues
spontaneously,
into
branches
by taking
between the various
the interplay
account
in each given case between departments
I and II;
of market forces
itself
this
new distribution
of capital
and finally
readjusts
2
the market mechanism that regulates
the whole system.
through
distribution

of

To illustrate

this

process,

+ 1000v
+ 750v

+ 1000s
+ 750s

Preobrazhensky

takes

following

the

example:
4000c
1500c

I.
II.

know how accumulation

We already
would

4400c

+ 1100v

says

Preobrazhensky,

lation

fund

of

demand of
must

It

increase

equilibrium
up with

I.
II.

retained
which

his

II

must

take,

IIc,

in

order

to

add to

I for

means of

its

own variable

consumed

this

We

I.

Marx's

return

to

by the

capitalists

is

of

To do this,

however,

This

in

225

leaves

and assume

department

departments

Preobrazhensky

maintained.

accumu-

increased

solution

both

its

the

match

by S0.

capital

between

out

II.
together,

does

this

all,

he

result:
+ 1129.6v
+ 807.3v

condition
at

of
1%.

fund
fund

+ 500 consumption
+ 375 consumption

this

resolved

he set

consumption.

be redistributed
as a whole

4558.4c
1629.6c

Preobrazhensky

tal,

225 is

whole

department

We cannot

therefore,

must,

winds

to

distributed.

this

so the

375,100

department

also

yet

that

department

fund

+ 500 consumption

First,

not

in

proceed

get:
I.

it

would

in

a growth
This

following

the

in

meant

the
that

First

way:

organic
first

= 6188
= 2811.93
of

composition
off,

Ic

would

of

capi-

grow

by

and

-1794440,

40, to

IIc

by 15,

to

1615.

would

also

have

to

and
Iv

15, however,
means of

for

be a market

II's

in

the mere rise


in

undistributed

utes

in

then

rise

This

is

Iv.

that

it

carefully
rules

the productive

itself

We know that

there

very

for

60,

to

process

of

between

the

to

neatly

Iv

line

with

then

causes

to

grow
Thus

enough
225 of

the

distribIIc

this,
Ic

to

sum that

must
swell

passed
here

exposition

redistribution

obeys

individual

elements

of

however,

Mathematically,

by simultaneous

solution

would

4500.4

130 of

The actual

departments.

both

of

Yet

Preobrazhensky's

of

proportionality

capital

latter

by

the

Preobrazhensky

In

order.

shows how this


of

IIv.

And the

The value

lends

the problem

The rest

augment

in

for

IIc

and there

by 1% is

capital

accounts

fund.

everything

I was 188.5

of

that

events

as must

to

tight

of

to

II

very

composition

7.3

puts

by a further

in

so that

be available,

actually

increase

accumulation

by 14.6,

amount,

commodity-product.

organic

fashion:

this

by 58.4.
from

the

increase

this

by that

grow

would

then

must

a chain

motion

II's

IIc

additional

Ic

by 15 means that

to set

for

production

To cover

equa-

tions.

know that
from

the

4: 1 to
II

partment

organic

4.04:
is

to

1,

is

composition
and that

go from

4400 +x=4.04(1100
1600 +y=2.02(800
225
x+ 2y +z=
the

condition
added to
we must
the

of

the

2: 1 to

capital

to

be distributed.

capital

in

department

organic
2.02:

I is
capital

of

composition

The appropriate

1.

We also
to

rise

in

de-

equations

be:

would

x is

225 total

to

and vice

y is
here
versa,

Therefore

satisfy.

z is

Ic;

be satisfied

IIc,

appearance

Finally,

to

addition

+ y)
+ z)

of
the

the

term

addition

what
is

is
that

2y,
to

also

instead
IIv.

is

whatever
is

this

since
y is

added

the

what

is

of

just

Solving

But

Iv.

to

the

added

to
of

condition

added
y,

these

in

to

IIc,

the

equations

essential
Iv

is

also

exchange
and hence

last

equation.
for

the

-180we have

variables,

three

looks

arrangement

+ 1128.9v
+ 806.4v

4560.6c
1628.9c

I.
II.

The conditions

of

slight

discrepancies

due to

the
of

position

Ic is
ly

making

Iv,

to

I(v+s/x)

an initial
not

and Ic.

in

the

ratio

Iv

are

organic

com-

when adding

his

As a result
for

The

satisfied.

Preobrazhensky

of

that

figures

his

while

are

boost

maintain

= 10,060.1

production

= IIc,

scheme and that

IIc,

understated,

An arithemtical
onstrate

the

partment

II

department

place

in practice.

the

obvious

objection

be so easily
chines

are

figure

and IIc

means of
the

the
from

for

consumption,

of

this

does not

the

nor

duction

to

another

for

are

slight-

he points

argument,

is

mobility

the

one branch

vision

of

times

keep

social

capital

from readily

in

life.

out

modern
of

that
credit

production

labor.

in mind

production

that

In

under

In understanding
capital

is

from

a social

this

the

mechanism

forth
process,

relation,

util-

commodities
same is

of

yet
pro-

and interesting

detailed

calling

ma-

all
and

one line

Money capital

another,

cannot

each department;

within

capitalism

system.
to

notes,

the

and notes

Not

of

de-

would

production

kinds

shifting
a very

point

another.

Preobrazhensky

of

process

production

of

means of

different

from

capital

up this

to

both

of

Yet,

of

elements

we can dem-

that

how the

about
takes

physical

these

will

real

transfer

one department

branches

separate
stop

nothing

production

same raw materials.

true

the

Preobrazhensky
that

The fact

a proof.
of

I says

transferred
suitable

not

feasibility

algebraic
to

is

example

take

from

after

Total

high.

too

ize

this

by 1%, he did

capital

somewhat

final

as

= 6818.4
= 3241.7

where

between

that,

year

+ 1128.9s
+ 806.4s

equilibrium,

increments

subsequent

the

end of

+ 1128.9v
+ 806.4v

fact

So the

z=6.4.

+ 500s/x
+ 375s/x

the

at

production

giving

28.86;

y=

like:

4560.6c
1628.9c

I.
II.

160.6;

x=

can

for

this
flow

easily

di-

a different
we must
and that

at

all

when we

-181transfers

speak of

labor

command over
is

This
of

perhaps

the

portance
surplus

value

and not

just

the

department
terials

and labor

disposal

power.
it

that

the

capitalist.

It

is

circuits
M, is

as the

historical

The historical

im-

the

social

places
entire
for

the

labor.

money capital,

of

it

of

is

system

the

recall

by which

process

total

capitalist

this

class,
Pre-

that

reason
for

condition

of

I to

have

idle

of

hold
view

transfer
This,

the

was to

mobil-

in
of

of

is

capital
however,

stored

material

department

it

capital
in-

suddenly

to

I.

What allows

reserves

of raw ma-

We should
at

his

in

be sur-

not

own analysis

important

in

role

protracted

means of
arrived

that

production,
i. e.,

society

from

is

Preobrazhensky

the

far

far

the
easI

department

had undertaken

production--just
at.

it

to

difmore
from

Therefore,

periods.

way around,

imply

and hence

production,

II

are

which

consumption

of

from

transferred

are

means of

of

other

would

crisis.

values

composition

the

Preobrazhensky

if

up means of
for

of

in

ex-

can now be tapped

possesses

capitalist

that

physical

the

prior

"over-production"

an increasingly

play

form

reserve

which

had arrived

the

own theory

than

already

society

prior

and equipment.

and it

the

the

as reserves

it

that

is

and circulating
If

be employed

-Marx

"over-production"
tendency

act

plant

difficulty

fixed

production,

conclusion-

more perishable
to

is

both

components).

means of

expand

however,

possible,

of

now to

capital,

these

process

new workers

The only

the

we again

will

Preobrazhensky's

ative

if

consumption

by this

fixed

II.

understand

reserves

and unused,

prised

to

of

and variable

output

the

sustain

to

division

entire

constant

of means of

ier

social

credit

substantial

its

creases

point

the

effective

can speak

of
its

ficult

in

in

capital.

istence

I,

and changes

production

What makes this

of

shifts

an individual

obrazhensky

(both

about

we are

and the

modern

at

talking

to

capital

of

of

power

to means of

converted

really

capital

easier

industrial

ity

of

the

opposite
concludes

relof
that

-182this

indeed

this

is

I,

in

itself

It

to

As he himself

for

otherwise

economic

activity.

as soon as we apply
determined

the distribution

(that
tendency

natural

and a consequent

I through
hand,

the

would

due to

ment II,
see in

Part

its

III
for

we account
that

transfer

this

application

tendency

towards

however,
his

the

effect

because

conclusions.

surplus

fact

prices

of

is

prices
would

We have

of

included

accumulate
total

of
that

of

the

upon

department

on the

other

than

depart-

We will

mathematical

fact

capital,

is

the

obvious

inherent
to

important

Preobrazhensky's

a rather

the

department

and the

erase
It

ex-

As soon as

circulating

II.

of
would

capital.

capital

cannot

department

raise

of

deceptive.
fixed

production

seem to

rate

in

faster

rate

their

at

by v),

production,

itself

production

the

over-production

larger

than

in

over-production

they

its

longer

of

of

depreciation

is

terms

Prices

appearance

period
of

of

in

weight

prof-

completely

would

exchanged

relative

of

average

goods

the

I would

the

of

out

determines

s/v,

produced

place

in produc-

if

value

be towards

capital.

extended

of

Only

rate

employed

this

for

and point
the

value,

Yet

cap-

takes

that

whereby

mechanism

strictly

department

that

even the

mention

of

sheer

turnover

the

the

He also,

that

capital

flawed.

seriously

values

go beyond

surplus

via

increase

to

the

the

the

economy

need

mean that

of

rate

place

of

the

from

total

conclusion.

off

of

proportions.

a deviation.

took

is,

of

production,

capital
such

and accumulation

ploitation

II

just

produc-

by which

mechanism

prices

the

of

the

social

Preobrazhensky's

reverse
value

of

we have

of profit,

basis

of

is

only

We can even

than

rather

of

prices

on the

and this,

tion

the

not

deviation

in normal

department's

that

argument

an equilibrium

the

is

in

department

to

capital

that

is

economy maintains
mentions

it

transfer

but

take,

crises

Preobrazhensky's

instance,

that

to

deficit

the

this

admits,

capitalist

need

result.

that

appear

that

the

of

compensate

would
would

italist

form

outward

a product

order
that

tion

is the

schemes,

objection

presentation

of

to
the

-183-

level,

At another
did

to

as an appendix

problem

it
make

less

any

in

tus

this

is,

Marx's

is

regard

deviation

and the

of

fact

prices

Marx's

of

capitalist

accept

the

theory

we first

from

point

starting

if

would,

they

we have shown,

ment of

the

tem;

prices

In

of

either

tion

of both
would
course,

case

to

from

the

II

to

negate
and
of

be understood
forms

to

the

reproduction

schemes

tendencies

the

department

the
I takes

and rearrangethe

of

equilibrium

be one particular

the

a transfer

such

was essential

not

key ways by which

the

department

production

which

of

ex-

sta-

production

derived.

a reversal

as one of

would

have

it

is

this

with

of
from

only
to

necessary
conclusion.
an advanced

that

through

vehicle

syswhich

the

wealth

relative

the

through

to

of

of

labor

ample

Otherwise

complexity

of

so great

reserves
society
This,

adjust.

constantly

is

produc-

capitalist

creation

The technical
division

of

trans-

As Preobra-

another.

consumption.

and means of
elasticity

to

and the

product

surplus

one department

constantly

reproduction

expanded

each year's

happen,

production

the

was Marx's

find

we will

forces

means of

in a society

demonstrate

Its

did

value,

are

production

had shown that

rearrangement

allows

not

of

capital

production

observed

that

did

capital

productive

zhensky

prices

to

of

can only

of

production

of

of

concretization

they

theory

tendency

prices

of

a further

the

not

it.

analysis

Prices

yet

would

occurred.

demands the
fer

prices

analysis

social
of

the process

of

it.
are

of

themselves

reveal

Our value

values

from
of

That

this

production

be impossible

would

analysis

production;

genuinely

place.

values.

validity

of

transfer

necessary

from

of

natural

may deviate

presupposed

which

The application

it

which

Marx'a

prices

the

shows what

to

from

of

of

had uncoverd,

phenomena

prices

in

but

theory,

application

without

similar

the deviation

if

It

significant.

how and why observable

plain

the

Preobrazhensky

development

capitalist

chapter.

if

even

tendency

the

reverse

this

production
that

dis-

of

-184-

equilibrium

it

what

They

exist.

serves

but

flexibility,
it

ic

in

and the

another,

conscious

control,

its

the

for

present
to

this

some of

recall
"

"natural"

dispropor-

the

Crisis,

way:
reproduction

Pre-

essential

resolving

expanded

such re-

own reproduction.

periodically

of

unless

in

acquires

more

rule,

allowance

means of

avoid

resumption

destruction

on a new econom-

footing.

constituent

of

his

composition

of

capital

of the

department

II,

systematic

transfer

This

the

means that
in

ployed

is

wealth
its

in

terial

wealth,

creative
or

the

to

as a result

of

it

and of

saying
to

produce

its

results

Though
the

by machines

only

potential

socialism

of

portion
Whether
leads

and their
however,

can create

em-

relatively.

a society's

is,

production.

but

necessities.

crisis

by the

production

basic

in

I than

means of

an ever-larger

capitalism
former,

of

population
in

development

the

free

goods

organic

be overcome

society's

that

the

department

absolutely

to

of

in

can only

only

material

leisure

for

where

higher

not

ability

of

whether

capitalism,

production

capital

grow

need

organization.
pre-conditions

of

its

upon

is

the

tantamount

production

the

to

capital

I must
is

pure

disproportion

volume

from

crease

and the

the

dependent

increased

social

of

it

labor,

of

one more fundamental

established

and where,

resulting

this

population

this

grows,

department

Historically,

Under

analysis.

division

social

has

Preobrazhensky

In conclusion,

of

its

how capitalism

engenders

of values,

future,

material

can never

be the

will

society's

the

the

detailed

obrazhensky

tions

in

"over

phrase,

equilibrium

represent

require

will

Marx's

than

rather

the

to

an inma-

greater

a question
possibility

it
make
can

reality.

NOTES TO CHAPTER 4
1.

Capital,
portant

2.

VKA 17,

III,
p. 223.
when we deal
p.

55.

This argument
will
with the accumulation

become increasingly
capital.
of fixed

im-

-18561.

3.

Ibid,

4.

in reality,
Ic should,
grow
in the organic
composition

S.

VKA 17,

6.

See above,

pp.

7.

VKA 17,

55-58.
identify

8.

For a concise
and stimulating
"Value
and Production
chapter

9.

VKA 17,

p.

p.

by 60.6,
in
of capital.

line

with

the

1% increase

61.
134-35,

and Part

III,

below.

In zakat Kapitalizma
Preobrazhensky
did not spethis
tendency
towards
in departcifically
over-production
he dwelt upon the disconInstead
ment II as a cause of crises.
between the time when the demand for new means of productinuity
first
tion
arises
and that
when the production
of these new means
is actually
This led him to treat
completed.
the
of production
of ample reserves,
especially
existence
of fixed
capital,
and the
turnover
period
of fixed
prolonged
capital
as essential
parts
of
deal with all
his analysis.
We will
in much greater
of these points
detail
in Part III.
pp.

p.

63.

discussion
topic
of this
Price, " in I. I. Rubin,

see the
op cit.

-186APPENDIX
THE

In Part

II

in

that

+ 1000v + 1000s.
100%.

tation,
Our first

Their

capital

+ 1000v) ]=
In

If

is

profit

will

way these

individual

second,

ploitation)
said

overthrow

in

capital

industry,

of

on their

one branch

of

4000c

composed

of

rates

exploi-

of

differ

radically.

[SOOs/(1000c
=

p'

a rate

Differ-

+ 500v + 500s,

is

will

profit,

his

second,

+ 500v)]

[1000s/(4000c
=

profit

would

be if

entire

equal

is

also

will

made up of
+ 1000s,

then

quite

a bit.

The first

will

p'

= 1000/2000
in

both
rates

of

organic

was so fundamental
of

capitalist

our

In

= 50%.

(given

compositions
that

it

differ-

their

again

have p'

fact,

the

equal
were

seemed to

=
only

and in

illustration

first

profit

earn

1500c + 500v + 500s,

+ 1000v

their

theory

capitals

1000c

capitals,
have

Marx,

of

differ

would

equal

one capital

comprised

= 25%; the

result,

of
have

will

depending

profit,

however,

profit,

a rate

value.

of

have identical

will

we see that

profit.

500/2000

our

capital

same way,

of

and another
of

have

theory

need the

20%.

the

ent rates

of

the

down as 1000c

heavy

say,

addresses

his

aggregate

capitals

rates

will

Our second

= 331.
3

rates

The two

of

breaks

branch,

another

in

the

industry,

light

say,

production,
while

Suppose

compositions.

organic

Marx

contradiction
rates

OF PRODUCTION

Capital,

of

different

have

will

ent capitals

III

basic

a seemingly

resolve

OF PRICES

APPLICATION

Volume

of

TO CHAPTER

rates
the

of

The

same.

threaten

ex-

to

production.

have
industry
We have thus demonstrated
lines
different
of
that
in
the
differences
different
to
rates
of profit,
which correspond
limits,
indicated
their
organic
composition
and, within
of
capitals
time
the
different
same
turnover;
also to their
given
periods
of
that profits
are rethe law (as a general
tendency)
of turnover,
that,
lated
and
to one another
their
the
capitals,
of
as
magnitudes
in
equal profits
consequently,
yield
capitals
of equal magnitude
comequal periods,
applies
of the same organic
only to capitals
These
stateposition,
value.
even with the same rate
of surplus
basis
hold
of all
been
has
the
ments
good on the assumption
which
their
at
sold
are
our analyses
the
that
so far,
commodities
namely
from
There
is
hand,
doubt,
that
aside
values.
no
on the other

-187incidental
distinctions,
and mutually
compensating
in the average
in the various
rate
of profit
branches
do not exist
in reality,
and could not exist
without
the entire
system of capitalist
It would
abolishing
production.
here
therefore,
that
the theory
is incompatible
seem,
of value
incompatible
process,
with the real phenomena of
with the actual
for this
and that
reason
to understand
production,
any attempt
l
these phenomena should be given up.

unessential,
differences
of industry

Marx was not


out

was pointing
is

to

adequate

the

it

A critical

Marx was to

of

still

profits,

equal

It

in

to

his

level

assumptions
fact

the

explain

industry

their

of

of

high

a very

capitalist

regardless

He

value.

limitations.

at

was needed

throughout

exists

of

and regularities

an analysis

and be able

analysis

profit

earn

is

tendencies

modification

his

extend

rate

capitals

equal

but

theory

has its

analysis

basic

most

the

abandon

value

the

out

system,

capitalist

an average

a purely

trace

of abstraction.
if

that

to

prepared

really

that

and that

organic

composi-

tions.
Marx resolved
The theory

tion.

theory

sede the

deviate

prices
ing

at different

prices

of

since

this

equal

the

size,

but

different
of

It

uses

of
of

Marx

that
in

line

reproduction

profit.

equal
capitals,

value
theory

of

producsuperhow

explain

start-

necessary

price

production
but

production,

will

with

our

application

Take

the

use a very

two

of

they

operate

earn
of

their

average

total
total

profits;

equal

size,
rate

of

example,

simple
prices

of

of
are

proof

capital.

of

= 1000,
1000,
=

formation

that

capitals

compositions
capital
capital

the

of

but

must

is

its

is

of
or

to

value

does,

regardless

How, then,

of

prices

abrogate

not

explication

organic

capitals

of

schemes.

have unequal

of

capitalist

detailed

the

be most

theory

and the

value

abstraction.

go into

the

theory

does

The theory

theory

of

his

production

700c + 300v + 300s--total


800c + 200v + 200s--total

we know that

more,
rates

not

will

of

values.

production

to

A.
B.

prices

same theory

levels

We will

duction

the

in

contradiction

value.

from

the

of

of
of

thus

point;

are part

Yet

the

must
profit

300;
200;

p'
p'

and what

is

s=
s=

have

= 30%
= 20%

equal

formed?

The

-188total

surplus
rate

general

value

therefore,

25%.

of these

capitals

in

as it

800c + 200v + 250p,


instead

As a result

total

If

But
of

the

to

profit

surplus

250 in

product

each

value

it

product

product

of

the

of

values.

of

50

value.

two capitals

by redistributing

is

This

the
basis

on the

values.

at

its

50 over

at

be

1250 as well,

its

terms

two capitals

B will

basis

product
in

be 1250,

will

on the

A sells

Cap-

profit.

Capital

come to

will

is

formed

are

between

in

fact,

Capital

tals

with

same,

the

total
is

it

is

rate

just
of

of

profit

total

capital

already
their

of

lower

will

and so the

it

with
the

while

Cap-

then

equal

500,

value
risen

from

final

products

values
of
high

average;

its
The

21.4).

equalled

composition

than

+ 300s = 2100,
would

above

sells

(also

causes

Capitals

have

unequal

2000 to

2800.
be:

will

= 2121.4
= 1178.6

below
what

+ 300v

of

capitals

with

work

surplus

A that

profit

organic

composition.

1500c

now 17.86%

sells

3300,

a low

the

Capital

be at

will

+ 300v + 321.4p
+ 200v + 178.6p

B that

equals
average

the

profit

1500c
800c

the

rate

as it

A had equalled

B remained

A.
B.

ganic

total

same process

Capital

The rate

terms

the

total

terms.

Capital

terms

prices

value

this

as before.

and

total

product

its

of

each earn

value

B sells

is,

size.

size.

Now,

total

other;

price

since

surplus

Clearly

ital

each

same in

logical,

created

will

purely

The

profit.

and its

redistribution

The two compensate

quite

was in

and Capital

value,

must be the

+ 250p,

and its

this

of

its

under

they

2000.

two capitals,
rate

the

1200 we had when we calculated

the

of

the

average

as their

we see that

1300,

than

rather

this

is

capital

for

average

see how much of

to

+ 300v

The total

apply

appropriate

be 700c

A will

500.

the

then

turn

will

we do this,

If
ital

We must

they

of society

i. e.,

profit,

of

is

produced

in

values.

to

be

capital
organic
those

(21.4

value
total

Thus

we see
from

those

with

compositions
with

low

in

product

transferred
to

above)

organic

price
that

capi-

a high
will

or-

have
composi-

-189tions

have

will

equalization

cess of
from

a rate

those

to those

of

surplus

What effect

of

is

too

value

is

high

in

too

low.

on the

To demonstrate

before?

than

profits

have

this

will

higher

profit

rates

surplus

whose
whose

alyzing

of

what

the

must

Hence any pro-

average.

by necessity
to

relation

shift

the

total

values

capital

reproduction

schemes

we were an-

happens we will

use the

following

figures:

The figures

had the

to work

with.

position

of

II,

in

we used

have

would

+ 2000v
+ 2500v

10,000c
3000c

I.
II.

this

have
in

capital
to

show that

to

do with

where

Ic/v

is

considerably

chance

of

our

ital

equals

thing

then,
I.
II.

that

tributes

it

I(v+p/x)

the

the

to

total

surplus

value

in

equals

+ 2000v
+ 2500v

line

about

disproportion

actually

composition

organic

a scheme

chosen

is

there

no

total

the

cap-

The first

accordingly.

its
of

and dis-

profit,

capital,

we have:

+ 1542.8p/x
+ 707,2p/x
3800,

of

we proceed
worsen.

IIc

while

and a stock
If

value

one half

accumulates

the

+ 2257.1v
+ 2821.5v

414.

surplus

department

has nothing

4500;

25.71. %.

equals

com-

symmetry.

any artificial
comes to

organic

+ 3085.7p
+ 1414.3p

with

just

profit

the

redistribute

consumption

approximately

of

where

and

and simple

in

that

describing

but

IIc/v,

than

the

So we have

we select.

as well,

neat

that

double

we are

attributed

The rate

fairly

being

exactly

tendency

greater

each department

11,285c
3385.8c

of means of
to

to

10,000c
3000c

Assuming

I.
II.

17,500.

is

just

served

however,

being
the

off,

of

peculiarity,

figures

the

results

is

the

have

would

advantage

department

whatsoever

To start

chapter

additional

They

and we want

+ 2000s
+ 2500s

= 3385.8.

unsold

over

There

means of

two more years

is

production
we will

a deficit
equal
see

-190Two:

Year

+ 2257.1v
+ 2821.5v

11,285c
3385c

I.
II.

+ 2257.1s
+ 2121.5s

Total
Total
p'

After

the

redistributing

after

which,

accumulation,

gives:

I.
II.

12,736.3c
3820.4c

+ 2547.3v
+ 3184.3v

I(v+p/x)

= 4288.8,

giving

Year

value

+ 2257.1v
+ 3483p
+ 2821. Sv + 1596.3p

11,285c
3385c

I.
II.

surplus

+ 1741.5p/x
+ 798.2p/x

a deficit

of

After

12,736.3c
3820.4c

+ 2547.3v
+ 3184.3v

the

redistributing
I.
II.

after

+ 2547.3s
+ 3184.3s

surplus

+ 2547.3v+
+ 3184.3v+

12,736.3c
3820.4c

so that,

accumulation

we get:

+ 2874.9v
+ 3593.3v

I(v+p/x)

= 4840.4,

yielding

a deficit

production

= 528.6.

of means of
What is
surplus

interesting
in

value

the

average

is

carried

out

plus

is

created

by the

izes

the

amounts

terms

value

takes

ance

if

then

distribute

the

exchange

of

took
this

labor

funds

place

power

to

according
power

this

of

the

value,

I.

average

in

rate

two departments
following
however,

then

production,
out

profit

production

But once
and sur-

accumulation,

the

in

accumulation

profit,

department

employed

the

employed

immediately

new surplus

of

distributing

words,

labor

exchange

basis

redistributing

after

of

in

and a sur-

consumption

that

rate

over-production

on the

other
place

is

with

line

production

In

means of

result

and growing

= I(v+s/x).

in

this

a large

accumulation

+ 1965.5p/x
+ 900.8p/x

about

produces

value

we have:

3930.9p
1801.6p

14,374.2c
4311.8c

IIc

= 468.4.

consumption

Total
s= 5731.6
Total
capital
= 22,288.3
p' = 25.72%

value

I.
II.

the

means of

Three:

I.
II.

plus

s= 5078.6
capital
= 19.748.6
= 25.72%

of

of

such
would

accord

equal-

profit

in

that
be in

bal-

Once we

production.
in

which

with

the

-191rate

average
production

in

exchange

must

rate

in

But

equalized.
no time

this

equality

various

capitalists

duction

schemes

in

that

indicate

would

conclusion
in

place

the

of

continued

to

the

will

demonstrate

ishes,
II

seem to

in

the

re-emerges,

prices.

that

main

of

fixed

capital

Part

previous
even with

III,

the

that

over-production
towards

application

form

in

over-production
of

prices

then

result
making.

one year,

of

unthat

department
in

take
II.
is

We have
along
as we

assumption,
in

is

original

department

we are

over

Once we remove

tendency
the

turns

is

a phenomenon

this

chapter,

assumptions

capital.
in

this

repro-

terms

value

must

I to

department

the

What the

capital

the

relation-

Preobrazhensky's
of

in

bears

between

I,

is

first

out

The value

department

are

there

production

in

II

products

whose external

A transfer

text

department

carried

together.

terms

an average

reality

connections

crises.

from

of

from

equilibrium

in

still-over-simplified

circulating

and the

hold.

direction,

assume that

with

in

in

equality

existence

is
All

that

when commodities

In

mutual

of

price

ephemeral.

process,

source

in

exchangeable

prices.

an over-production

reverse

the

is

terms

capital

departments

separate

a constant

the

production

these

reproduction

As we stated
product

holds

is

their

transacted

the

would

only

into

however,

of

that

of

which

show,

a moment in

mistakably

being

which

then,

is

an over-

an initial

transferring

converted

of

hides

values

to

according

link

the

the

it

and we have

over-production

prices

for

(and

terms

this

seem,

that

appearapce
are

of their

a vehicle

evaporates,

price

Yet

would

and then

terms

in

such

sequence

nominal

only

terms

is
I

equality

place).

It

profit

to department

ships

department

values.

of

value

this

take

are evaluated
of their

profit,

of

I van-

department

production.

-192NOTES TO APPENDIX TO CHAPTER 4

III,

Capital,

2.

See I.

3.

the product
We assume, as did Marx, that
to
of the previous
year,
it consists
into
that re-enter
that
the
of commodities
the extent
is
by
treated
the capitalas
a
value
element
capital,
productive
The debate over how these commodities
in the ensuing
ists
year.
deviation
be
their
to
own
reflect
re-evaluated,
of prices
should
is a complex one, and does not affect
from values,
the argument
forward
here.
putting
we are

I.

p.

153.

1.

Rubin,

"Value

and Production

Price,

" op cit.

-1935

CHAPTER
EXPANDED

So far

that

the pre-capitalist
for

the

existence

sector

provides

Second,

development.

of production.

the

What then,

is

sustain

VKA 17 Preobrazhensky
the

complete
in

the mixed

the

the

system

the

petty

italism,
is

in

is

to

brought

will

VKA 17 and,
telescope
We begin
economy under

the

condition

as with

the

and reshape
with
simple

danger

previous

is

part
two

of

and thereby

to

reproduction

reproduction,
with

exchange

of

The transfer

in pure

social

of

deficit

economy
of means
of

means

reproduction.

expanded

Preobrazhensky's

chapters,

cap-

The sec-

elastic.

the

cap-

and stagnation,

crisis

more

of

over-production

of
of

via

system

i. e.,

as a result

difficult

of

entire

disproportion,

part

equilibrium

an initial

is

capital-

a rearrangement

of

which

in

expanded

only

as well.

production,

re-emerge

of

not

the

departments

disproportionality

given

show/

towards

USSR.

the
how,

sector

it

with

original

most

of

its

of

final

the

with
outlet

is

expanded

by necessitating

that

course

production

of

equilibrium
but

the

question,

conditions

under

relations

an essential

In

analysis

to

show two

capitalism

petty

this

answer

and when there

of production,

to

to

to

two component

of

show how even when the

the

perhaps

role

pure

its

of

One is

within

petty

in

reproduction?

we saw as an essential

onto

with

of

economy

sector,

forces

equilibrium

is

the

tasks.

attains

of production,

This

growth

his main

as a whole

now shifted

is

for

sector

and which

ond task

tendency

out

capitalist

bourgeois

that

capitalism

commodity-socialist

the productive
ital

set

two

CAPITALISM

attempt
and
production/exchange

of

expanded

groundwork

Here we have
within

the

in

to

attempt

CONCRETE

proportionality

that

disequilibrium

chronic

UNDER

Preobrazhensky's

and maintaining

achieving

ism's

followed

we have

First,

things.

REPRODUCTION

we will

argument

by necessity

in
have

it.

a scheme similar
reproduction:

in

structure

to

that

for

our

mixed

-194KI.
KII.

2000c
1200c

PI.
PII.

1500c + 1500 consumption


1O50c + 2100 consumption

Right

in

duction
two

the
is

the

petty-commodity

sectors,

we see that
in

than

greater

to

production
in

capital"
PII.

Finally,

equal

to

the

the

in

production

scheme is

K expands,

in

between

interesting

ularly

in

portions

the

system

ly

covering

if

and when we took

forces

old

within

necessarily

compel

P and K, a problem

famine
all

(although

volume

of

its

Before

are

but

proceeding

case

Within

capital

in

ratio

of

means of

KI

composition

far

higher

of
in

than

but

not

yet

would

in

of

the

see that

we must

of

those

partic-

of

the

dispro-

be large-

case

for

stable;

of

the

the

revealed

make one cautionary

changes

this

though

but

between
which
goods

in

over-

case

Soviet
by case
remark.

would

Soviet

when both

is

this

exchange
ignored

with

on,

productive

of

material

as regards

especially
a variation

of

context

The last

not

later

rearrangement

by and large

the

is

an interest

when dealing

argument
within

as all

stayed

structure

Preobrazhensky
our

the

Case

K and we would

have

show

reproduction.

constant--this

within

in

dramatically

most

will

when

Production

cases.

analysis,

our

happens

see what

expanded

production

and we shall

more realistic,

mechanics

case

production).

pand simultaneously;
torically

of

total

we do this
P's

K.

almost,

possible

This

question

changes
which

three

originate

This

its

to

is

point

up the

become central

will

Preobrazhensky,

and P remains

would

ground.

P while

is

term)

K and P under

this

at

the

of

"organic

PI is

P falls.

be when K expands

two would

(the

P--the

Pro-

scheme.

in

than

in

We have
in

that

PI

production

says

motion.

while

this

of

PII.

do,

to

inter-relation

the

of

of

= 6150

production

composition

true

in
of

sense

volume

Total

greater

organic

fund

conditional

What we want
the

the

consumption

= 3000
= 3150

is

sector

= 5000

production

characteristics

The same is

KII.

the

Total

fund
fund

some interesting

we see

off

+ 500s = 3000
+ 400s = 2000

+ 500v
+ 400v

the

K and P exhisbe
may
economy,
one.
Preobra-

-195it

makes

zhensky

quite

bounds of

a value

departments

of

clear

analysis.

both

sectors

what is

left

between

PI and PII,

much of

a simplification.

over

after

capitalist

or petty

production

sector

any imbalance

between

Preobrazhensky

points
(a case

overstep

immediate

concern

economy,

in

Let

both

duction

at

same is

the

surplus

3)P as a whole

2% each year.

PI.
PII.

1470c
1029c

+ 1470 consumption
+ 2058 consumption

the

deficit

of

has grown.

Initially

was exactly

balanced

we had in
which

it

of production.

means of
it

P.

had to
PII,

will

There
exchange
on the

1200
of

PI required

other

because
in

tendencies
the

analyze

make a few

both

departments;

in

concrete

assumptions:
2)c/v

declining
our

mind,

our

a mixed

grows

reproat

capital

means of
means of

could

production
consumption
of

sector

capitalist

I(v+s/x)
750
-

same quantity
hand,

the

within

IIc

first

194 we see that,

one on page

surplus

the

moment,

fund
fund

production

equalled

by the

the

fund
fund3

the

scheme with

between

analysis,

to

this

and that

reproduction.

For

our

agricultural

be:

+ 546v + 250 consumption


+ 447v + 200 consumption

year

the

11).

experiences

With

2204c
1353c

production

this

in

value

de-

exchange

abstract

We want

scheme.

KI.
KII.

all,

for

we saw that

of

when we come to
2
1920's.

of

of

set

of

and
too

each other,

process
true

balances,

obviously

I of

with

Chapter

more

start

we compare

for

its

of

the

the

up in

out

the

our

KI and KII;

If

origin

to

half

a rate

disrupt

we have

lay

to

exchange

the

is

2 and 3,

and department

the

KI and KII,

this

reality

Chapters

between

the

between

into

take

for

account

the

within

exchange

we can build

us go back

by 1% in

that

USSR in

the

1)K accumulates

the

is

in

enter

limits

the

In

sector

out

operating

exchange

place.

them will

still

need

internal

we will

upon which

situation

when examining

Above,

the

we cannot

Thus

has taken

I of

and PH

we are

we merely

all

partment

KII

that

= 450.
of

This

peasant

of

1500,

peasant-produced

provide

only

1050 for

means
PI's

-196and could

consumption

instance

In this
means of

the

Socially,

iliary

goods,

this
etc.,

an identical

between

the

116 in

of
icit

it

two

from

solution

here.

then

the

It

run

place
ible

risk

from

less

spheres
since

petty-commodity

but
then

this
look
PI.
PII.

P's

of

its

history

we tried
production.

would
like

all

the

of

is

This

values,

possible

take

place

productive

is

It

P is

also
ousts

capitalism
less

by simply

PII,

of

while

constant

making
would

PH
fall

PI stayed

shift-

a possible
would

an actual

as expansion

Then P as a whole
in

not

consumption,

demands.

do this

if

peasantry

product

a def-

such

capitalism

each peasant

with

as a more or

is

this

because

exchange

KI and KII,

since

elasticity--the

physical

P has shrunk

capitalism,

Certainly
desirable,

of

K has jumped

economy as a whole

between

capital

shows us that

to

consumption,

within

the

pure

rearrangement

production

production

Suppose
in

of

aux-

PI needs

and that

within

for

for

former.

loss

great

450

of

consump-

be made up by mutual

and some means of

having

raw materials,

production

a deficit

standpoint,

production

sume more or
of various

if
P.

450 in

means of

means of

however,

massive

technical

the

itself

sumption

drop

of

means of

countryside,

Before,

the

not,

within

some means of

position,

to

is

It

entirely

of

production.

latter

surplus

450 in

The deficit

problems.

We have

be much better

would

the

a rearrangement

the

requires

can no longer

sectors.

require

of

its

commodities.

foods.

The surplus

means of

would

ing

we have

The disproportion

to 441.

KII

exch angeable

industrially-produced

of

or processed

557.

450 to

surplus

come from

which

Now, however,
from

its

its

PI exchanges

easy.

means that

quantity

such as textiles

is
for

KII

1050 of

only

solution
to

production

tion.

purchase

crisis.

forces

took

flexmore
much

farm

producing

and with
can simply
or

concon-

contraction

a realistic

sup-

and subordinates
process.
absorb

the

by 2%, or
the

same.

entire
123,
P would

this:

1SOOc + 1500 consumption


1009c + 2018 consumption

fund
fund

= 3000
= 3027

Total

production

= 6027

-197Even this

would
to

duction

it

but

exchange

K, and its

in

tion

exported

the

second

first

would

like

this:

+ 546v
+ 447v

for

capital

capital

the

the

first

surplus

of

year

next

KII's

be less

severe,

The only

its

Total

works,
is

consumption
In

same amount.

surplus

by 1% in

way out

disproportion

the

and its

value,

both

departments,

its

= 5533

production

be (rounding

would

produc-

means of
for

pro-

means of

would

year's

half

= 3296
= 2247

means of

To show how this

imported

growing

+ 546s
+ 447s

of

S57 - 491 = 66.


P.

K accumulating
of

shortfall

within

production

491 in

consumption

to

that

trade--the

look

2204c
1353c

means of
equal

have

only

The overall

supposes

with

product

still

capital

and means of
year,

would

of

the

composition

Its

KII.

rearrange

organic

KI.
KII.

with
surplus

by foreign

is

PI

be large,

Preobrazhensky
overcome

do.

still

would
be to

will

not

fractions

off

for

sim-

plification):
2426c
1524c

KI.
KII.
This

however,

time,

decline

in

level.

We then
PI.
PII.

that

disproportion

the

decline

matters

are

557 to

655.

year
cit
tions

in

society

PI

continues

to

fund
fund

= 2940
= 2967

Total

over

ability

and made PIT

entire

the

worse.
to

has actually

is

absorb

as bad as it

getting

the

PIT

making

not

P evenly

PI's

when we let
for

is

still

441--it

by 2% we let

production

on PII;

+ 1470 consumption
+ 1978 consumption

when we tried

the

previous

fall

P's

the
at

produce

entire
the

old

have:

1470c
989c

As before,

when we cut

sector

fund
fund

273 consumption
+
+ 223.5 consumption

596v
+
+ 499.5v

K's

up has

make it
declined
fall

in

P rest

the

grown

decline

to

on PII).

Even if
for

to

only

the

whole
from

481 (from

case

in

the

a
first

The overall

defi-

these

condi-

we modified
both

on the

has climbed

deficit

compared

655 - 481 = 174.4


shoulder

Yet

two departments.
internal

fall,

year's

been had we distributed

have

would

first

the

of

all

= 5907

years,

keeping

PI

-198-

stable

581.5

of only

The social

the

worse than
fall

same magnitude.

to the

ratios

Only

social

in means of
it

sumption
surplus

peasant

primarily

KIl,

mediate

goods

means of
capitalism
petty

P was

from

Preobrazhensky

the
does

new arrangement

656 in

fund

or

PH
according

in

the

two

655 of

KII;

it

this

of

in

helps

reveal

means of

same time

had to

its

secure
in

produced
within

the

upon petty

base

us to

of

the

its

means of

of

of

historical

of

the

see both

the

production

of

actual
just

absolute
in

and a shift

sector,
and other

the
of

the

those

or-

peasant

whereby

by capitalist

raw materials

an increase

con-

marketable

process

capitalist

Thus

its
of

production

was ousted

countryside.

production,
favor

whole

P, towards

allows

means of

655

PI can sell

can dispose

consumption

the

Now, however,

655.

capitalist-produced

needs

deficit

KII's

production.

equilibrium.

latter

the

as be-

year,

PI has a mar-

so that

at

= 5907

production

production

remained

course,

the

Total

this

means of

for
from

= 3150
= 2757

restructured

can attain

terms,

in

in

escape

consumption

by 2% for

as a whole

production,

production

entire

PI by 210 and cutting

the

fund
fund

has been
of

what

ment of production

P.

this

to

fallen

has,

requires

the

we cannot

within

capital

P has

production

At

decline

year

within

we distribute

If

production

production

riculture.

problem

production

now production

In real

the

shouldered

first

be 74,

would

in

and obtain

igin.

the

+ 1575 consumption
+ 1838 consumption

economy

production

where PII

production

commodity-product

of means of

year

means of

commodity-product

and PII).

constant

we get:
1575c
919c

ketable

the

of

production

fore.

PI

total

by the

Total

first

rearrange

by increasing

PI.
PII.

of

a disposable

as bad as when the

not

actually

departments

deficit

how we approach

No matter

have

still

the

by both

evenly

need to

in

case

P (though

in

shared

this

PI would

throughout,

agbut
inter-

rearrange-

such

kinds

encroachment
relative
goods

weight
capitalism

of
of
of

-199for

required

torical

its

the

of

has

assumed

satisfied

the

material

two

the

of

ments

of

ist

sector.

lines

We have
deal

and will
We will

not

deficit

larger

slightly
which

for

KII

of

through

the

duction

in

process
This
instead

of

reproduction

means of

in
this

reproduction

of

lead

where,

same, we reversed

is,

reduced

the

I by the
in

the

pro-

more difficult

KI.

sector,

"over-pro-

will

expanded

disproportion,

initial

the

If

examines.
we have

consumption

to

As Preo-

same manner--

the

with

capitalist

us back

before,

than

increasing

Preobrazhensky

means of
the

the

P (thereby

to

problem

in

in

the

case

as a whole.

economy

where

production?

we would

the

employed

second

KII

out-

PI has a

less.

production

combination

from

production

means of

in

capital-

example,

In that

achieved
within

least

basic

this

of

somewhat

the

still

or

capital

automatically

a deficit

in

alone,

the

in

terms

depart-

the

its

process

value

at

in

the

IV as well.

means of

capital

"over-production"

of

For

of

then

in

problem
Part

Part

various

case,

variant

is

exchangeable

is

the

simultaneously.

production

equilibrium

us to

the

with

disproportion

the

this

see in

the

in

been necessary

in

production

of

either

takes

duction"

their

transferring

of

have

the

his-

of

of

exchanged
in

been

extensively

much time

what

actual

economy

description

this

not

examined

rearrangement
PI),

this

we shall

Soviet

production

already

amount

notes,

of

would

it

the

the

reflect

but--as

that

capital

means of

ameliorates

brazhensky

Had

spend

K and P expand

both

that

needs

with

this

of

throughout

sectors.

some rearrangement

course

however,

add,

equilibrium

also

tion

future

necessary

does

only

development,

capitalist

We should

twenties.

Not

expansion.

movement

IV--mirrors

of

have

either

keeping

total

the

relative

of

capital

volume

same amount);
capitalist

or

sector

to

in

production

the

sector

capitalist

weights

of

departments

employed

in

II,

we could

keep

the

expanded

a scheme of

construct

I and II

and increased
the

same as before

volume
for

(that

produc-

of

capital

both

depart-

-200but

ments,

would

We have already
IIc

cause

the

v,

edly.

In the

and there
ital
or,

have

forth

is

We are
weights

left
the

of

brazhensky

the

social

first

that
of

turn

PIT rising--here,
level,

the

194,

keep pace

with

I(v+s/x),

in

it

is

KI.

Cap-

KI to

take

could

KII,

place

PI and an increase
any further,

example

of

in

from

in-

to

value

production

shift

this

little

of

in

capital

for

practical
department

features

historical

capitalist
the

of

capi-

is

still
of

adding

600 to

for
too,

6100.

capital
KI

a redistribution
the

total

P will

now look

same as in

the

than

and taking

in

KI has

in
the

in

P is

increased

following:

at

at

KII.

PI falling

kept

both

has

that

much from

that
P, with

within

like

All

first

the

of capital

IIc/v).

employed

production

= 5000

production

compositions

greater

Preo-

scheme:

is

sector

volume

KII,

Total

relative

I and II.

departments

following

organic

the

reversing

in

the

with

as are

Ic/v

the

calls

down mark-

production

alternative,
invested

this

(i. e.,

is

be-

slow

the

the

one of

capital

in

on page

expense
in

is

but

would

conceivable,

II

IIc;

the

value

direction,

composition

in

is

surplus

means of

pursue

2400c + 600v + 600s = 3600


840c + 280v + 280s = 1400

departments
changed

of

amount

larger

to

reverse

happen

10
with

production

example

not

organic

illustrates

KI.
KII.

the

easily.

its

of

fail
of

a reduction
does

quite

What would

surplus

example,

theoretically

development.

talist

share

in

capital

possibility

an absolutely

fact

in

move in

of

by an even greater

this

of

would

department

to

169).

to

preceding

The higher

as opposed

previous

to

Preobrazhensky

importance.

Total

growth

our

P, calling

it

(page

bean over-production

then

even though

last

a smaller

IIc

as we saw from

in PII.

This

of

future

would

would

within

the

rate

above

composition

this

with

was adding

be devoting

would

crease

it

organic

I(v+s/x)

outdistance

because

it

it

mentioned

would

beginning,

the

raise

We can dispense

H.

department

that

sharply

around

and
the

-2011184c
1244c

PI.
PII.

Here we have
KI(v+s/x)
by the

KIIc

exceeds

bourgeois

by just

fund

tion

over-production

petty

for

market

means of

KI's

this

surplus
of

composition

The first

thing

KI(v+s/x)

over

can provide
for

in

both

its

In

sectors.

departments

made up

PI's

consump-

shortage

of

disturbed

as

K we accumulate

and increase

Distributing

each.

since

a necessary

scheme is

this

60,

This

than

greater

and a source
of

K of

840
60).
=
is

PIIc

equilibrium

both

the

the

organic

accumulated

is

KIIc

new product

the

fund

consumption

1207c
1269c

The deficit
cause PIIc
rise

of
is

is

that

the
to

now equal

department,

each

in

both

will

significant

production

as a market

for

in
PII's

than

yield

the

+ 300 - 947 = 8.2.

by 47,

ratio

P will

in

production
larger

rises

production,

of

by 74)

PH

constant

If

and disto

capital

be as follows:

fund
fund

+ 1207 consumption
+ 2538 consumption
means of

655.2

only

to

according

of means of

surplus

P by 2% (PI

in

slightly

What is

of means of

in

fund
fund

+ 300 consumption
+ 140 consumption

we notice

tribute

serve

and therefore

+ 655.2v
+ 312.9v

production

PIIc.

amount,

by 1% in

we increase

uniform

where

of

capital

2644.8c
947.1c

PI.
PII.

sector,

accumulation

value

(900

= 6100

production
in

production

amount

The

Total

we get:

accordingly,
KI.
KII.

means of

commodities

consumption.

the

of

= 2368
= 3732

by this

surplus

soon as we introduce
half

fund
fund

+ 1184 consumption
+ 2488 consumption

the

from

P has now risen

fund

consumption

a somewhat

higher

absolute

KI can no longer

PI,

that

PII.

It

has only

8.2

excess

means of

consumption.

offer.

be-

62,

and so a

increase

make up the

is

to

of

60 to

in

deficit

Nor can it

II
department
Thus we end up with the case where the expansion
of
II
the
department
has
petty
of
of the capitalist
sector
replaced
II's
for
bourgeois
both
production
the
of
sale
sector
as a market
this
As
KI.
of
to
a
result
and as a supplier
of consumer goods
its
53.8,
PIT
8.2,
62
constant
of
or
situation,
cannot restore
for
hand,
that
it
On
lacks
amount of
the
one
a martket
capital.
hand, it suffers
its
a corresponding
and, on the other
own goods,
form.
in
their
material
of means of production
shortage

-202can be achieved
either
PII,
or byltransferring
l
next year.

Equilibrium
throughout
PI in the
This

is

proportion
This

on.

emerges

condition

+ 655.2v
+ 312.9v

the

And arranging

KI.
KII.

2912.2c
1066.7c

PI.
PII.

1231c
1294c

fund

ing

not

production

for

ment II

the

of
is

there

Whereas

whole,

it

deficit

PII,

but

capitalist

before

for

way around,
the

whole

the

amount

means of

social
of

63 + 24.1

plus

the

economy as a whole:

fund
fund

between

PIIc

and the

What is

more strik-

make up any of

this

deficit

in means of

even
KII

fact

internal

the

cover

now exceeds
in

the

that

K could

But now this

the

deficit
"We thus

a goods

famine

in means of

The cause,

depart-

as

sector
as a

system

make up some of

K and P.

"12

of

by 24.1--

capitalist
for

existed

needs

KI(v+s/x)

both

= 87.1.

P to

allowing

63.

disproportion

from

production

goes

to

once more,

production.

and emanates

dis-

the

and reproduction

year,
for

production

by the

was attenuated

next

disproportion

sector.

the

we assume that

fund
fund

can't

means of

of

year

consumption
consumption

the

KI not
it

present

picture

PI has grown
can

if

the

+ 327.6
+ 154.4

sector,

only

a deficit

well.

K for

following

715v
+
+ 349.5v

of

starkly

to

be:

K will

in

the

petty-commodity

that

the

+ 1231 consumption
+ 2588 consumption

consumption
is

in

back production
forces
from PII

+ 655.2s
+ 312.9s

capital

grow by 2%, we have

In the

in

product

2644.8c
947.1c

KI.
KII.

even more

somehow overcome

year's

by cutting
productive

exists
have

all

the

throughout

production

Preobrazhensky

P's

to

concludes,

is:

both
in
capital
of
the rise
the organic
composition
the
rapid
more
the
second...
and
of
capitalist
sector,
lower
due
the
organic
to
in
KII,
rate of accumulation
which was
Thus,
KI.
to
department
in this
as compared
composition
of capital
develops
here,
mechanicalthe
as
process
of expanded reproduction
above
out
ly, the tendency
that
pointed
we
of a capitalist
economy
overforces
its way to the fore--the
towards
systematic
tendency
capital,
of
in branches
low
composition
accumulation
organic
with a
production
is,
in the present
branch
that
in
capitalist
of
the
case
in turn
And that
compels society-whether
of means of consumption.
firstly...
...
departments

in

-203more or less elastically


or through
a crisis--to
its
redistribute
forces
by increasing
the capital
invested
productive
in branches
of the production
of means of production.
last
This
its
during

is characteristic
example,
which
of capitalist
economy
is of special
interest
period
of development,
to us for
it
the additional
that
in part
(although
reason
also
reproduces
in an overly
form)
the processes
general
and abstract
that
we,
in the economy of the USSR,
can currently
mutatis
mutandis,
observe
insofar
from
that
the standpoint
as we study
economy
of economic
13
in
the system
equilibrium
as a whole.

We have

now finished

ysis

of

concrete

with

the

that

seems fairly

capitalism,

petty-commodity

development

tion.

This

farming;
of

is

towards
the

and this
means of

department

growth

of

latter

an adequate

tendency

ousting

of

in

necessitates

turn

to

of

raw materials.
to

capitalist

the

permit
arise

so far

of

a picture

means of

with

by cap-

to

ensure

the

fundamental

composition
the

of

all

absorb

We have,

production.

as we

analysis,

a value

petty
the

material

capitalist

strictly

consump-

of

this

addition,

sector

capi-

for

a market
and to

the

meticu-

of

expansion

provide

that

peasant

within

the

In

what

agriculture

sector,

extent

the

at

course

petty-commodity

base

been dealing

The natural

over-production

the

that

have emphasized

the

of

disproportionalities
all,

end we arrive
we can see with

it.

anal-

interacting

constantly

the

II

does not

of production

In

production--both

be modified

will

a capitalism

constructed

signifies

production

of

Preobrazhensky's

of

unspectacular--although

talist

italist

reconstruction

economy.

Preobrazhensky

lousness

after

our

many times.

Conclusion

Before
duction
focus

lished

in
of

we move on to
the

our

economy

study--a

the

Soviet

few comments

Union
are

in

under

expanded

of

analysis

NEP--which

is

we have

order

on what

in

VKA 17 solely

reprothe

main

estab-

so far.
Preobrazhesnky

mise

of

Preobrazhensky's

that

of values

equilibrium
between

conducted
conditions
departments

his

analysis
be
can/satisfied

and between

on the
sectors

in

on the

basis
the

of

correct

pre-

exchange
pro-

-204He goes

portions.

to

analyze

have all

less

more or

that

tent

Preobrazhensky

from

gin

the

of

to

worked

out
the

general,

systematically

the

concrete

structures

of

capitalist

allow

the

to

partially

flicts.

In doing

this

example,

the

that

essential

particular

crete,
ify

them or

are

modern

of

composition

from

strictly

We said

the

note

capitalism

in

tal

the

understand

which
then

the

Soviet
that

of

studying

It
this

economy

economy,

can we ask the

of

our

Soviet

quality

we can first
all

most

important

of

its

of

define

question,

In

this

not
of

the

only
be-

better
can
we
We can only
analysis

tendencies

was deviating.

why these

an

developmen-

Preobrazhensky's
pure

main

regard

capitalism

so that

con-

establish

is

inherited.

contradictions,

although

our

describes

the

arise

important

capitalism,

are,

material

that,

we know what

that

capital

that

was to

con-

How, for

the

discussion

Russian

Bolsheviks

the

with

of

economy,

capitalism

pathbreaking
if

circulation.

specifically

important

legacy

immanent

analyzing

Preobrazhensky

particular

economic
the

is

the

mod-

factors:

as VKA 17 was concerned,

but

and exchange

transfers

contemporary

the

must becon-

its

of

ex-

how the

VKA 17 and VKA 18 are

both

the

production.

and disproportions

part

the capitalism

general,

of

this

to

and study

of

involve

capitalism

production

effect

process

theory

for

Revolution.

appreciate

of the

in

as far

that

the
of

Marxist

least

tendencies

fully

outset

framework

we should

fore

in

modern

affect

and exchange;

argument
the

the

system;

production

at

at

analytical

the

petty

complicating

helps

system

breakdowns

to

interest,

credit

least

at

ameliorate

we can introduce

to

Preobrazhensky's
tributions

system

inherent
they

contradictions

of

say more

patterns

detailed,

Preobrazhensky

tendencies

we should

undermined

economy

a necessary

as soon as we be-

certain

historically,

has

is

this

be modified
is
This/a
question

been resolved

capitalism

Thus any analysis

in

us that

caution

have

economy.

development

in capitalist

to

pains

and will

a concrete

Although

about.

great

assumption,

simplifying
gin

to

deviations

from
Only
take

-205and how they

place

can be overcome.

Furthermore,
analysis

of expanded

of

to

during

infrastructure
brings

which

Preobrazhensky

There

he points

from

of production

the

detailed

built

argument
this
of

briefly.

subject
captialist

italist

in one department

advanced

out

credit

of
of

system,

accumulate

geois

banking

system.

commodities

it

it

pays

hicle

for

the

of proportionality

In

is,

the

the

of

it

class

capitalist
require

it,

via

from
its

least

ensuing

a key
the

as best

these

P would
in

deposit
would

would
according
as the

its

of

sales.

domination

capital

source

pre-cap-

purchase

the

both

P and utilize

this

to

return

resources

subsequent

would

the

in

from

values

an over-production

the

then

cap-

Preobrazhensky

that

would

of

elements

rearranging

we should

has been

out

VKA 17.
of

of

accumulation

any

society's

system--at

light

exchange,

of

of

notes

By definition,

expansion.

of

or

the

close

alienation

capitalism

making

to

returns

redistribution

industrial

transfer

schemes,

when there

or

the
the

the
In

sector.

which

desire

might

nature
3) and

non-equivalent

The New Economics


for

reserves,

That

complex

the

as a means of

another

production

without

which

further

of
at

reproduction

money holdings,

out--and

system--for

petty

composi-

in Chapter
of

for

even those

the

destruction

has been monetary

monetary

thus

the

state

In many cases,

sector.

The schemes

material

above

In VKA 17 Preobrazhensky

expansion

commodities

to

the

up around

out

question

mechanisms

by the

the

sector,

considered

sector.
of

each

on briefly

touched

one sector

sector

the

he had not

series

for

allow

in

than

the

which

war.
to

capitalist

a whole

the private

civil

finally,

that

out

to

by the

about

only

and developed.

we drew

outlines

the

us,

have

will

brought

ways in

particular

be much more complex

each department

basic

the disproportions

within

concretized

will

in

(whose

of exchange

ital

be further

They

production

This

show the

reproduction

capitalism.

concrete
tion

have

will

deviations

such

over

bour-

obtain

the

money

the

credit

become a veto

the

needs

spontaneous

-206-

For

Soviet

the

had always

is

This

turn

through

critical

importance

control

over

the

between

means of

which

plays

state

could

transfer

To the

extent

that

the

regularities--and

is

them by drawing

need

Second,
is

sectors
without

petty

sales"
to

production

economy of

USSR dis-

the

disproportions--detailed

basic

the

into

production

petty

from

state

subsequent

exchange

and its

affairs.

"purchases

the

values
the

accumulation.

and non-socialist

out

carrying

state

VKA 17, non-equivalent


ing

the

the

within

Gosbank

of

the

Preobra-

all,

socialist

financial

country's

of

accumulation

primitive

from

values
First

monetary

the

the

the

such

accented

primary

state

that

alienating

important.

especially

argued

exchange

industry.

means of

allow.

for

non-equivalent
the

this

would

be a vehicle

to have total

itself

is

would

economy

peasant

capitalism

economy

sector

petty-commodity
zhensky

of

production

and anarchic

for

precondition

exchange

in

the

with

overcomstate

sec-

tor.
his

Throughout
tifiable
that

assumption
of

it

capitalist

was P which

This

process
both

which
into

the

instance
peasant

age of

is

true,

the

Soviet
tion,

that

petty-commodity

sector

was subordinate

in

reproduction

to

the

imbalances
was the

imperialism.

to

the

that

as under

the

state

body

whose outcome

but

is

of

Preobrazhensky's

economy

develop

becomes
depends

USSR this

cannot

of
not

on the

petty

just

only

production

an economic

conscious

vice

versa.

well

is

but

a specific

not

his-

already

If

contingent.
work

except
to
but

intervention

the

of

subordination
is

given,

schemes

and continued

exchange

not

capitalism,

subordination
this

the
is

sector

state

entire

in

to

accumulation

primitive

so well,

Non-equivalent

fact

general

of

period

the

K, and not

within

describe

and Preobrazhensky

progressive
industry,

As a result,

subordination

and the
that

the

production.

achieved,

conclusion,
of

the

economy

torically
it

Marx

of

analysis

made the

adapted
of

jus-

historically

Preobrazhensky

this

points

to

on the

basis

the

needs

a political
of

the

of
quesSoviet

14

-207is

What

state.

survival

continued
it

more,

a necessary

USSR and the

the

of

is

this

although

construction

is

not

sufficient.

Preobrazhensky's

nomy, with

its

regularities

and,

ety,

inexorable

to the

isolation,

ist

West,

italist
modified,

in

the

the Soviet
if

the

conditions

Union

be properly

in

capital;

and circulating

must

the

of

fact

that

itatively
the

sion
the

different

than
will

of reproduction
alist
tionality

economy,
the

and a chronic

first

these

eco-

points

Union's

countries

socialthe

of

cap-

may be

contradictions

among them
the

periods

was able

accumulation

reproduction

on the

one hand,

and the

Soviet

Union

goods

famine,

theory

of

extensively

of

could

achieve

on the
expanded
with

other.

in

given
So,

reproducfixed

reproduction,

given

and represent

qual-

determine
far

in

the

conclubetween
elements

material

commodity-soci-

and degree

of

proporbase

industrial
weak

its

before

passing

on to

reproduction

in

the

Soviet

the

of

the

accumulation

question

both

greater

important

a mixed

expansion

to

which

contradiction

and circulation

expanded

the
in

Our most

an unresolvable

and

is

period
of

equilibrium

do.

a number

be answered

must

we will

production,

Soviet

capitalism

proportions

turnover

to

are

that

expanded

of

There

this

during

dictates

of

which

is

the

study

concrete

during

directly

USSR" (VKA 22),

the

of

but

Union

means of

existed

of

upon

Soviet

different

VKA 17 leads

concrete

both

by analyzing

of

in

mid-twenties.

under

deal

Soviet

advanced

the

touch

be reproduced

there

of

the

not

and material

Preobrazhensky's
we will

for

Preobrazhensky

conditions

to

Paramount

kinds

be that

the

soci-

Soviet

the

of

contradictions,

System

the

analysis

the

of

have

they

quantitative

detail

his

understood.

fixed

tion

it

of

he did

that
impasse

economic

in

he applied

implicit

of questions

a socialist

its

forward

put

Equilibrium

later,

economy under

the

Otherwise

place.

Preobrazhensky

"Economic

a year

where,

all,

the

resolved.

never

The argument
to that

in

of

analysis

an end to

revolution

take

must

but

that

conclusion
through

above

for

condition

economy
of

-208fixed

capital

study

of

expanded

ism and in
zhensky's

under

pure

reproduction

Soviet

the

own theory

Union
of

for

capitalism;

the

fixed

of
must

build--a

goods

famine

it

is

capital
study
is

upon

the

under
without

provocative

latter

that

the

concrete

capital-

which

Preobra-

but

incomplete.

NOTES TO CHAPTER 5
1.

be a realistic
This would certainly
for Russian capitalassumption
ism prior
to the Revolution,
in this
which,
as we will
note later
is the particular
Preobrazhensky
is describing
chapter,
capitalism
fact
helps
that
between
the
the arguments
strengthen
continuity
--a
in VKA 17 and VKA 22.

2.

VKA 17,

3.

For the method of calculating


Ibid,
p. 67.
accumulation
allowing
for a growth
in the organic
composition
of capital,
see Ch. 4, pp.
in his examples through173-76,
We should
above.
also note that
I
takes the exchange fund of department
out VKA 17 Preobrazhensky
as equal to the variable
capital
after
accumulation
plus the conThis is clearly
sumed part of surplus
value.
a lower sum than if
has already
the year's
taken
after
we took I(v+s/x)
production
it is true that
in II must find
Although
the capitalists
place.
in the martheir
additional
means of production
available
already
ket at the start
that
a part
of the year,
show in Part III
we will
by department
I durof these means of production
are only produced
ign the production
is carried
out on the basis of accumuyear that
lation
beginning--that
is,
they are embodied in the
at the year's
is produced
by the accumulated
capvariable
new surplus
value that
ital.
As a result,
Preobrazhensky
the deficits
measures in his
had
examples are somewhat lower than those he would have obtained
he carried
through
to the end of the year and then calproduction
This does not change
I.
the exchange fund of department
culated
the argument,
tendencies
at work over time,
as he is describing
figures.
If the sums involved
enough
and not absolute
are large
into
that deficits
of means of prosurpluses
would be transformed
duction,
in
disappear
these surpluses
the course of one or
would
further
two year's
conditions.
production
under the same prevailing

4.

There

S.

65-66,70.

is an error
in the figures
reads 655 - 483 = 173, instead

If

we did

PI.
PII.
6.

pp.

this

P would

in
of

(VKA 17, p. 68), which


the text
655 - 481 = 174, which is correct.

be:

1500c + 1500 consumption


969c + 1938 consumption

fund
fund

3000
=
= 2907

We can calculate
by using
this
rearrangement
If x=
total
in PI, and y=
total
production
then-.
5907
x+y=
1/2x + 1/3y = 655
This

gives

production

in

P as:

Total

= 5907

simultaneous
production

equations.
in PII,

-209PI.
PII.

1574.4c
919.4c

Here production
655 available
7.

+ 1574.4
+ 1838.8

consumption
consumption

fund
fund

P has remained
within
for exchange with K.

= 3148.8
= 2858.2
the

same,

Total

while

= 5907
PI now has

Preobrazhensky
VKA 17, p. 69.
makes the somewhat obscure
comment
demonstrates
because this
that
that,
total
result
social
producdeclines,
it disproves
tion
Rosa
can grow while
petty
production
Luxemburg's
in capitalist
theory
of the role
of petty
production
development.
It seems to us that
is simply
this
wrong,
and does
differences
between the two thinkers.
the real
much to obscure
In the first
Luxemburg was well
place,
aware of the inadequacy
of
if,
Marx's
that
schemes and of the fact
given the lower organic
in department
for equal
II,
of capital
composition
you allowed
in departof accumulation
rates
of surplus
value,
over-production
in the organic
Likewise
ment II would result.
with the rise
comLuxemburg notes that
to be consistent
position
of capital:
with
it to rise,
Marx's
analysis
we must allow
and then over-production
itself.
in II would again manifest
And, like
Preobrazhensky,
she
in
that this
concluded
could only be resolved--and
was resolved
from department
life--by
II to departthe transfer
real
of capital
It was here that
that
the limits
ment I.
she emphasized
of Marx's
that
schemes--which
stressed
commodities
must exchange in rather
form--would
the dictates
precise
material
of
seem to contradict
development
The transfer
took place.
capitalist
of
as it really
takes place.
capital
would seem to be impossible,
yet it constantly
for Luxemburg was not the main contradiction
Nevertheless,
this
inin the apparent
the schemes; for her the latter
within
resided
for the accumulation
and act
ability
of money to keep pace with,
force
for the accumulation
This,
as the motive
of commodities.
her
led
just
have
mentioned
along with the other
contradictions
we
to conclude
that
system,
as a closed
capitalism
could not develop
but must do so in perpetual
inter-relation
producwith the petty
it would appear that
Here, too,
tion
sectors
of the world
economy.
in the case we are dealing
were
with here she and Preobrazhensky
increasEven while
will
saying much the same thing:
capitalism
ingly
the
encroach
upon the pre-capitalist
economy, it requires
into
latter
that enters
to increase
the share of its production
in Preobrazhensky's
This is true
current
exchange with capitalism.
in K (which is growing)
example,
where P must make up the deficit
by rearranging
its production
the share availso as to increase
able for exchange with the capitalist
sector.
Preobrazhensky's
is
difference
Luxemburg
more profound,
real
with
Prefor it calls
into
her
question
method of exposition.
entire
between the capitalist
and
obrazhensky
the inter-relation
analyzed
historical
from
the
by
pre-capitalist
modes of production
starting
genesis
of the problem,
where the two systems of economy constantly
interact,
through
the other
precisely
and where one subordinates
in
this
this
interconnection.
way
Preobrazhensky
process
can
of
show how capitalism's
subordination
exchange with,
and eventual
disproportions
its
of the pre-capitalist
some of
economy ameliorates
it
hand,
and heightens
Luxemburg,
posits,
others.
on the other
despite
seems to us, an abstract
"pure"
which,
capitalism
model of
her protests
the
of
hence
nature
about the formal,
conditional
and
in
the
them
treats
schemes, fails
to transcend
in
the
them and
end

-210almost
naturalistic
manner we have argued against
rigid,
throughAs a result,
Luxemburg's
is too static
study.
analysis
out this
infer
to actually
conclusions
of the dynamic character
she wants.
Because she deals
only with a closed
capitalist
system and an equally closed
production
system of petty
she sees little
more than a
between them--something
inevitably
that
relationship
reciprocal
Capitalism
leads towards
theory:
a breakdown
will
eventually
use
buffer,
bourgeois
In
and then cataclysm
must result.
up its petty
(pp. 14-15,77)
Preobrazhensky
Zakat Kapitalizma
again criticized
in capitalist
Luxemburg's
theory
of the role
of petty
production
it seems to us, in a manner that was
but this
development,
time,
The significance
of the petty
producer
much more to the point.
for capitalist
does not lie
in its
production
as a market
sector
(which
is relatively
but in the fact
that
size
small),
absolute
both
this
a crucual
capitalism
margin of elasticity,
sector
gives
it requires
for expanded
it with commodities
in terms of supplying
This elasproducts.
and as a market for capitalist
reproduction
to smooth out and overcome a number of
ticity
permits
capitalism
dimensions
if it were
disproportions
that
would acquire
critical
indeed a closed
system.
in Part
Luxemburg
IV,
We will
that
to assume
was wrong
show,
also
lead
to
the reproduction
that
reflect--and
schemes
cannot
cannot
composition
of the socof--the
problem
of the material
a solution
debetween
dealing
ial
the
transfer
of
capital
with
product
when
For her discussion
of the inherent
sectors.
partments
and between
Marx's
of Capschemes
see The Accumulation
contradictions
within
336-46.
Ch. XXV, especially
ital,
pp.

8.

VKA 17,

9.

Ibid,
p.
italist
in
tion

p.

70.

in the cap71.
Preobrazhensky
takes expanded reproduction
he
but
before,
be
the
to
expands producnow
same
as
sector
P by 2%. We then have the following:

KI.
KII.

2204c
1353c

+ 546v
+ 447v

+ 250 consumption
+ 200 consumption

Pl.
PII.

1530c
1071c

+ 1530 consumption
+ 2142 consumption

fund
fund

fund
fund

is
is
98,
a
KII's
which
overall
shortage
of means of production
A re(then it was 116).
in P fell
bit
less than when production
is
forces
whether
necessary,
arrangement
productive
of society's
both
togethit takes place
P,
sectors
within
or
exclusively
within
in
P
the
if
We get the same result
rise
of
all
er.
we allow
even
6273,
to
in
P
up
Then total
goes
to accrue to PI.
still
production
but PH remains
constant,
at 3150.
PI.
PH.
PI then
a deficit

1561.5c
1050c
has

We should
lation
in
The value
hence the

+ 1561.5 consumption
2100 consumption
+

511.5 available
of 45.5.

for

fund
fund
exchange

with

K, which

still

leaves

is
2%
accumuby
this
not
P
also note that
when we expand
it
the strict
under capitalism.
that
of
sense
we speak
and
law
by
value,
of
labor
the
is
of
power
not regulated
for
propetty
has
category
no meaning
of surplus
value

-211duction.
of its

We cannot,
P accumulates
then,
say that
a certain
portion
surplus
It has a survalue,
or even its
surplus
product.
fund,
over and above the necessary
plus product
but this
consumption
future
can go to augment either
production
or present
consumption
in any number of percentage
divisions.
This no doubt explains
why
Preobrazhensky
in P in percentage
sets growth
terms,
for
not just
but for each of the categories,
total
production,
e. g., the confund.
As a result
PIIc grows by
capital
and the consumption
stant
2%, since at the present
level
is indepenthis
of analysis
growth
dent of the mass of "variable
in PII,
capital"
and depends only on
This also explains
the total
product
of the department.
why when
P expands and when the "organic
is lower
composition
of capital"
in PH than in PI, we do not get over-production
in PII.
10.

Even in the Soviet


economy of the period
of primitive
socialist
accumulation,
where the organic
composition
of capital
was higher
in the department
(deof state
production
of means of consumption
II),
backwardness
this
partment
of Russia's
was a legacy
and the
destruction
base.
The whole tendency
of her industrial
of develSee below,
this
Ch. 10.
opment was towards
reversing
relationship.

11.

VKA 17,

12.

Ibid,

13.

Emphasis added.
In "Ekonomicheskie
Zametki
Ibid,
III"
pp. 74-5.
Preobrazhensky
detailed
in
a series
of conditions
of equilibrium
in great
the Soviet
those he discussed
system which closely
parallel
detail
in VKA 22.
He noted that
the growth of constant
capital
if department
can only keep pace with that
of means of consumption
I of the state
faster
II,
than department
sector
grows relatively
is the result
higher
this
and that
of
of its
organic
composition
He then poses the rhetorical
that
to the effect
capital.
question
be obvious
this
to every serious
should
ecoof the Soviet
student
frankly
Quite
this
nomy.
given the
peculiar,
a little
we find
rather
original
and sophisticated
analysis
with which PreobrazhenZain VKA 17.
See "Ekonomicheskie
this
sky derived
relationship
III, " op cit,
metki
pp. 78-9.

14.

See From NEP To Socialism,


and
reference,
specific
pp. 56-7 for this
for Preobrazhensky's
Lectures
Six and Nine (chapters
two and five)
interesting
discussion
quite
could use the credit
of how the state
in
influence
development
to
the
and banking
of agriculture
system
desired
directions.
particular,

p.

pp.

73-74.

74.

-212PART III
THE EXPANDED REPRODUCTION OF FIXED CAPITAL
CHAPTER
RESERVES

We have

reached
We have,

the material

composition
Further,

in

takes

producers,

confining

analysis.

We now must

in

place

the

analysis

up to

bases of

reproduction

as an economy

creating

more

analysis

of

ibrium
basis
ial
they

to
that

surplus

concrete

of

their

needs
require

capitalists
So far

of

each department,
and the

various

must

both
types

in
of

of

the

also

means of

the

our

of

purpose

our

that

means of

equil-

on the
mater-

particular

consumption

of

exists,

complicate

the

ex-

material

commodities

of

of

the

assumption

satisfy

terms

under
tracks

the

to

value

society's

really

for

have

exchange

of

analysis
as it

re-

bourgeois

reproduced

value

we will

expanded

and discover

try

both

economy

simple

production
consumed

by

and workers.
as we know,

or has undertaken

this

Fortunately,

however,

made a first

step

schemes to

by the

Exchange

values.

our

by abandoning

simply

of

a purely

modify

to

surplus

Second,

to

components
are

have

capitalist

capitalism

can be satisfied

instance

various

that

and petty

We must

apply

accumulates

value.

latter

we will

we must
the

capitalist

proportions

material

First,

now.

the

laws

upon the

condition.
of

this

of

some

constraints

means by which

the

the

this

values

For

panded reproduction.

i. e.,

drop

their

capital,

productive

in

the

examined

studied

we must break

where

places

an economy

ourselves

to

addition

analysis

production

we have

production

how,

our

REPRODUCTION

one hand,

on the
of

EXPANDED

in

a point

new ground.

reproduction.

UNDER

allow

in
for

neither
further

Preobrazhensky

this
the

direction,
fact

of

concretization

Preobrazhensky,

that

in

his

anyone

nor

book

the

fixed

capital

is

undertook

reproduction

schemes.

Kapitalizma,

Zakat

when he modified

else

the
not

reproduction

replaced

in

-213but

year,

single
dealt

this

with

from

what

in
schemes

his

tend

world

analysis

question

logic

his

to

either

Kapitalizma

Zakat
that

of

its

2.

con-

he was fol-

that

reproduction

and so did
to

or

Pre-

he was trying

period,

economy

Chapter

the

of

already

a different

aware

in

we take

once

in

capital

studies

Soviet

the

in

reproduction

he was well

crisis

We have

years.

previous

and 22,1

capitalist

of

fixed

of

Although
of

reproduction

of expanded

a series
simple

under

do.

we will

VKA 17,18,

the

explain

up this

immanent

the

lowing

over

amortized

phenomenon

took

obrazhensky
text

is

material

the

to

not

ex-

regularities
into

composition

account.
In this

and the

basic

sky's

we make the

schemes

in

further

concretization

in one year,
fixed

and

of

gested.

in

We will

of
had

VKA 17,

the

namely

department
of

the

consumption

to

those

Part

by

showing

clude
led

"pure

capitalism.

famine

in

sis

fixed

of

III

the

Soviet
capital

italism

of

capitalist

economy

of

the

In

the

Soviet

present

out

which

"

in

Union

chapter

means

to

petty

IV,

Part
have
see

how

producers

during

we will

this

takes

cause

applies
and

the

solve

an

recurring.
in

the

the

to

means
con-

so-cal-

under

to

return
to

II

We will

we analyze
to

sug-

produce

place

II

he

problem

that

we

Volume

department

from

when

it

and

production.

of

a transfer

to

adequate

solving

production

social

we will

order

and

such
in

Later,

Union,

of

in

the

there

solutions

chronic

capital

of

replaced

From

what

not

is

for

method

produce

how

is
that

transfer

branches

and

solution

the

not

primarily

problem,

as soon as

of both

capital.

value,

capital

systematic

form

I,

surplus

is

capital

constant

Preobrazhen-

show that,

under-accumulation

same

Marx's

constant

worked

its

this
of

that

see

Preobrazhensky

fixed

from

start

and will

that

of

treated

Theories

under-accumulation

we will

Kapitalizma

portions

how Marx
and

chapters

has a systematic

circulating

Capital

Zakat

capitalism

discuss

will

three

next

goods

this

analycap-

concrete

commodity-socialist

NEP.

begin

by taking

another

look

at

ex-

-214from

panded reproduction
and we will

see that

the process

of

serves,
sites.

We will
of

allowing

the

I.

accumulation

Let
that

us start

Here s/x

We note

that

the

one)

in

both

departments,

will

be maintained

ment I will
stant

capital.

within

the

500s(a)
set

this

already

means of
tion
for

of

187.5s(a)
partment

400 of
These

for
I,

that

to

these

its

indispensable

the

of

in

role

to

similar

of

100 exist

I will

capital,

therefore

exist

their

to

and I(v+s/x)

IIc

either

to

in

to

the

I's

the

department

wrong

hire

the

to

the

will

must

exchange

natural

form.

those

wages of
of

labor.

their
and,

personal

them with
II

its

more workers

commodity-capital

exchange

form

100 of

intensity

for

con-

material

other

raise

Depart-

additional

correct
the

or

and it

capital;
in

of

for

fund

unsuitable

Likewise,

new constant

same (four

the

as follows:

take

motion

physically

consumption.

capitalist
accumulation.

between

proceed

in

exist

as part

I must

is

capital

should

an increase

support

for

towards

goes

= 8250

reproduction.

into

capital

they

that

Total

goes

proportionality

400 already

are

that

500 accumulation

variable

workers.

since

prerequi-

treatment

reproduction

value

part

Department

production,

means of

material

re-

capital.

expanded

scheme accumulation

new constant

the

commodity

Reproduction

surplus

expanded

additional

As we know,

analysis;

reproduction,

of

specific

fixed

of

so that

with

employed

quite

composition

department.

for

of

equals

organic

take

existence

and their

Expanded

portion

and s(a)

this

simple

+ 500s/x
+ 500s(a)
= 6000
+ 187.5s/x
+ 187.5s(a)
= 2250

consumption,

With

value

and Preobrazhensky.

the

equals

a simple

up Preobrazhensky's

a scheme for

+ 1000v
+ 375v

4000c
1500c

I.
II.

the

capitalism

of

with

by Marx

used

by taking

of

we move from

has

accumulation

Bases

The Material

view

once

itself

under

ongoing

of

presupposes

conclude

reserves

point

here,

even

accumulation

while

function

the

as

consump-

department

II

150 of

its

take
these
This

with
leaves

de-

-215-

its

increase

to

37.5

II's

The arrangement

own product.
the

of

ning

next

production

immediately

Now, we notice

to

means of

production

requires

new constant

in means of
deficit

towards

half

their

Thus it

is

changes

are

50 are

laborers
course

in

resents

that

they

month,
start

to

appear

end of

which

an aliquot

part,

on the
II

the

department

I are

This

difficulty

their

the

in

market
not

arises

Even if
is

a more

or

It

not

will
last

and ready
from

the

for

I would

put

would

all

ex-

a real

it

which

can offer
The

year.

The new

produced.
products

during

in

to

value

consume

part

them,

of

production

rep-

and in
the
and

short,
flow,

the

100,

we assume that

needs

be:

= 9075

creates

steady

have all

means of

a sur-

Total

relatively

less

them when it

when the

finished

equal

have

year.

year,

out

when

created

production

are

capitalists

production

year,

and after

in

production.

means of

will

production

as they

constantly

these

of

the

of

start

gradually,

which

= 6600
= 2475

production

50

to make up this

product

however,

turning

extending

time

the

of

the

at

of

have

social

This,

I are

product

department
of

the

year,

a surplus

production

at

department

devote

part

II

a deficit

production

production,

means of

latter

department

550s(a)
+
+ 206.25s(a)

= IIc.

the

order

would

in

year's

100 in

only

the

Then the

the

is

In

economy.

capitalists

I(v+s/x)

available

the

of

begin-

the

100 additional
while

There

I had purchased
the

I has

II,

the end of

until

end of

department

to

the

550s/x
+
+ 206.25s/x

that

made,

150.

to

consumption.

the

at

wait

which

+ 1100v
+ 412.5v

only

immediately
other

of

Department

problem.

to

I has only

department

equal

throughout

personal

4400c
1650c

I.
II.

for

capital

from

natura

thus:

with

department

power

product,

in

obtains

social

department

that

capital

have

we would

plus

is

exchange

production

the new labor

the

of

year

it

which

500s/x
+ 1100v +
+ 412. Sv + 187.5s/x

4400c
1650c

I.
II.

capital,

variable

say,
i. e.,

them until
produced

every
at

the

right
by

sale.

different

material

needs

of

depart-

-216II
I
and
ments

departments

separate

I requires

ment

sents

past,

exist

as the

other

hand,

labor.

products

of

year,

value,
tal-value

at

the

to department
resent
the

II

surplus

into

set

or currently
ity
of

for

ready
the

year.

of

the
It

newly

revenue,

beginning

end and whose

the

of

result

are

employed,

and will

not

until

Like

variable

the

commodity
that

possessed
current

that

in means of

production

commodities

it

requires.

is

It
it

original

the

its

leaves

never

They repof

product

I has

department

the

of

the

at

But

is

it

The surplus
and above
in

end

value

surplus

be produced

lab-

as a commod-

or

added.

50

remaining

the

capital.

must

capisurplus

completed

over

the

in

the

value

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year

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value

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as a use-value
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be created.

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of

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or

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created

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that

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tal

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does

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50

I has produced

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least

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of

at

when we recall

-217in

Marx,

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italist

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tion

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capital

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ready

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ists

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The specific

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ds/x,
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year.
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have

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a surplus

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enter
is

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market

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paid

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power).

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to

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the

case

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its

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productive

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time

production

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capital

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capital

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into

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reserve

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tion

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includes

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the

Volume

XV of

a particular

convert
stage

Chapter

in

must
I

stor-

as department

and sold.
means of

production

and how complex

will

vary,

we presume

-218-

We must

of IIc.

the

not reveal

not

wages are

in

fund

consumption

discussion

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dustrial

is

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for

advanced

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or two weeks.
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al capital,
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they

value

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power;

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sumption

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value

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an equivalent

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complexities

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consumption.

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in

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forget

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change.

al

in

I(v+s/x)

of

the circulation

to

that

1600 in money
personal

have
surplus

con-

a capitalvalue

I's

-219will

new workers
italist
year

have

a capital-value

produced
modities

to

need them;

duction

of
II

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as an unsold
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realization
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to

s/x

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tech-

and whose value


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capital,

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last

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department

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as means of pro-

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produced

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production

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2 we saw how Marx

ed and circulating

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takes

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small

transactions,

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additional

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least

at

on how slowly

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at

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capital)

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of

of constant

productive

essential

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tal

part,

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may exist

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larger

purchased

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currently
exist

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being

perpetually

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it

of

go for

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throughout

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capitalists

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part

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(the

year

1650 Ilc.

of

be exchanged

structure

nical

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consumption).

means of

is

during

create

and of

that

reserves

means of

even under

subsistence

even

ignoring

for

reproduction,

simple

and replacement
that

of

fix-

both

of

fixed
this

capital
condition,

-220that

and assuming
these

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are

reserves

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fact

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turn

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to

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bodied

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a shortage

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past.

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those

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ed reproduction.
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reproduction
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even
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-221tion

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production

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us

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-222the longer

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combined

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of

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in

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terial

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find

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begin

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the

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ting

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modity-socialist

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material

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much the

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-223In

problem.
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ysis

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duction

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sky's

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27 articles

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validate

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concretizations
reproduction.

analysis

forward

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he wanted
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1928.

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attempt

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matter
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go on the
was aware

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we

anticipation
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himself,

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arguments

passages

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leave

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fact

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solving

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in

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time.?

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to make in
cite

us

Marx's

any one of

-224them, but

the

perhaps

most

is

concise

following:

the

As a consequence
of the incompleteness
of his work, Marx's
theory
and of reproduction
must be developed
of crises
and elaborated
as
the analysis
to the conditions
approximating
regards
of real
capFirst
italism.
this
of all,
approximation
must denote the estabfeatures
lishment
of the characteristic
of the reproduction
procapitalism
cess in the epoch of classical
and in the epoch of monfurther
A
concretization
must consist
opoly.
the
of elucidating
fixed
of
capital,
of reserves
problem
of fixed
and circulating
in bringchanges in the organic
composition
capital,
of capital,
ing the periphery
into
of petty,
the inpre-capitalist
production
of changes in the conditions
vestigation,
under which labor
power
The premise
is sold,
investigation
the
etc.
of
must be world,
The investigation
from an
and not national
economy.
must proceed
development
of the working
account
of the law of uneven capitalist
decay.
From there
it is
of uneven capitalist
and, consequently,
to elaborate
necessary
not only a theory
of simple
and expanded
but also a theory
of declining
reproduction,
reproduction,
which
in countries
in ecothe conditions
must elucidate
of reproduction
The investigation
from the deformanomic decline.
must proceed
tion of the law of value,
tenof the intertwining
of monopolist
dencies
with those of free competition,
and must trace
out the influence
of these important
changes on the general
conditions
of
in the epoch of imperialism.
expanded reproduction
and of crises
from the silent
The investigation
cannot proceed
premise
of capifor
internal
talism's
tendencies
towards
and its ability
expansion
but must analyze
that expansion,
the causes of the progressive
down of economic development,
thus inevitably
slowing
abandoning
Finally,
the region
the investigation
of pure economic analysis.
that
the existence
must trace
out the influence
of the USSR exerts
8
on the process
of capitalist
reproduction.
Of this

list,

the

and incorporated

about
problem
of the

of

fixed

concrete

had already
thermore,
it

This

only

we must

one that

Preobrazhensky

into

work

and circulating
analysis

of

anticipated
in

his

our

or

nearly

all

of

extensiviely

the
these

starts

Department

I:

10,000 stock of fixed


4000(1000f
+ 3000c)c

Department

II:

3750 stock of fixed


1500(375f
+ 1125c)c

Production

in

scheme shows

I=
the

6000;
following:

with

this

in

the

aspect

other

he

passage

Fur-

1920's.
to

see that

the

solve

concretizations.

Preobrazhensky

off

is

another,

in

we will

problem

written

already

every

he proposes

with

of

or

Virtually

capitalism

own analysis

retain

one fashion

in

capital.

dealt

had not

the

production

following
capital
+ 1000v
capital
+ 375v
in

Department

II

scheme:
(2000 in reserve)
+ 500s(a)
+ 500s/x
(750 in reserve)
+ 187.5s(a)
+ 187.5s/x

2250;
=

total

I has a supply

8250
=
of

fixed

-225-

capital

the

stock,

We have

each year.

[or,

In exactly
of 3750,

of

cent

per

fixed
II's

year.

So far

and two-thirds

that

of

smoothly

much is

identical

this
thing

department

between
in

of both

departments

rate

depreciation

the total
both

stock
In

cases.

of the

constant

are equal
circulating

in

Chapter
is

of

fixed

terms

of

their

in

values

constant

capital

being

10 per

already

two departments
I is

same organic

the

regard:

the

of

the

the

Nor

would
This

is

to

there

anyin

capital
This,

each
too,

structure

They have

the

same

10: 3 in

is

parts

and circulating
product,

annual
used

one.

fixed
up

Therefore,

we

between

proportion

capital

fixed

of

section

technical

and the

of

ratio

three

first

two
com-

reproduction

the

constant

show up in

two departments,

the

de-

of

I,

not

the

constant

more,

capital,

the

supply

1125.

components.

this

circulating

that

the

of

What is

to

capital

department

new.

and circulating

fixed

circula-

The rate

in

in

nothing

breakdown

identical

of

capital
the

involve

2.

by c(c)].

expanded

scheme we presented

the

the

c [or

we have

have

by the

any disproportionalities.

revealing

fixed

its

so that

whose

equals

production

one),

mechanics
about

have seen before

of

to

capital

of

and between

They

product

department

capital

scheme that

II.

annual

value

reserve.

same as in

year.

product

has a fixed
in

in

department

the

to

this

Total

and without

exceptional

subscript,

held

proportions

(four

Its

chapter.

in

before.

of

capital

proceed

and the

II

the

the

annual

and this--by

fixed

the

Of this

10% per

3000,

in

the

of

constant

nothing

are ones we have used

is

is

capital

The overall

encountered.

position

(20%)

circulating
is

there

that

by the

capital

is

of

by c(f)],

one fifth

on its

preciation

into

and tear

is

stock

portion

same way department

the

which

total

reproduced

the

fund.

a reserve

capital

capital--is

constant

is

constant

alternatively,

of

portion

the

of

designated

as wear

enters

subscript,
ting

circulating

2000

which

the

of

portion

of

the nature

of

depreciation

average

The circulating

value

10,000,

to

equal

these,

too,
to

capital
both

in

-226basic

the

of

terms

in terms

their

of

technical

scheme to

in this

in

of production

difference

capital

10 per

tear,

cent,

I,

fill

show, will

be different

ialism

and monopoly
where

the

free

part

of

Ic

fund

for

is

1000,
all

constant

be insignificant
s(a)
cal

circulating

IIc

fixed

If

(presuming

about

46.9,

all

This

an inordinately

nine

years,

society

this

of
fixed

Ic.
it

of

long
to

fund
not

would
is

what
went

is

to

new fixed

time,

increase

its

Ic,

in

stock

the

to
it

of

go to

techni-

125 would
increase
187.5,

IIc)

only

this

rate,

fixed

would
I,

the

only

vicinity

re-

Sup-

department

equals

At

this

1375.

given

to

s(a)

capital.

somewhere

that

departments

In

increasing

to

capital-

The fixed

capital,

II,

imper-

of

dent;
a
make
even

have

capi-

combined

of

both

augment

375 would

devoted

the

a total
in

at

epoch

notes

than

to

wants

classical

with

How

means of

looking

the

needed.

and circulating
other

in

or

making

In department

go towards

take

to

produces

two departments.

375,

and

Suppose

by 1500.

Preobrazhensky

the

wear

this.

we are

greater

means

a fixed

Preobrazhensky

first

accumulation

the

of
all

could

for

the

capital;

portion

which

of

is

is

that

whether

is

of

capital.

capital

department

in

comparison

between

proportions

represent

that

capital.
in

500.

equals

capital

of

fixed

for

capital

fixed

of

I and

value

one years

Dealing

fixed

total

that

with

dominates,

department

to

competition

capitalism.

1500 in

pose we devoted
increasing

free

of

competition

new demand for


placement

period

in

each contain

concerned

upon

nothing

and IIc

The answer,

depending

is

there

Ic

fixed

only

new demand?

this

during

the

and

the

of

orders

is

which

talism

ism,

its

4000c

represent

stocks
is

two departments

disproportionality.

of

the

equal

total

Preobrazhensky

department

production,

is

their

of

somehow increases

society

that

no longer

whose value

The problem

will

II

is

the

production,

sources

two departments.

the

component

of

any basic

department

in

between

values

proportions

suggest

The one crucial


the 1500c

of

exchange

of
capital

the

of

25%, or
it
eight

would
or

by the

-227-

required

the

of

premise

cause the

state

tion

the

gave

to

for

new orders

to

assumption

have

we will

fixed

capital

bases

a period

that
of

of

the

very
be-

arose

past

accumul