Essays on Marx's Theory of Value

Essays on Marx's Theory of Value by Isaak Illich Rubin is one of the best books I've read on Marx's critique of capitalism. It contains a very detailed explanation of many aspects of Marx's critique of political economy.

The book is available here.

Fetishism

The most important aspect of this book is Rubin's reintegration of the fetishism of the commodity as underpinning Marx's entire critique of capitalism. In this way, political economy becomes

not a science of the relations of things to things, as was thought by vulgar economists, nor of the relations of people to things, as was asserted by the theory of marginal utility, but of the relations of people to people in the process of production. (Introduction)

This is not necessarily easy to understand, nor does it seem initially particularly convincing (or perhaps it appears to be uselessly obvious?) but it enabled Marx to look behind the veil of money, employment, interest and rent, work-time and industrial production; to expose these interactions as ideological constructions that we have created between each other. Our day-to-day lives are lives where we act out our roles in a capitalist society as though these relationships between commodities and people are really existing categories rather than socially constructed phantoms of our consciousness.

One can only wonder why Marx's critics did not notice this inseparable connection between his labor theory of value and his theory of the reification or fetishization of the production relations among people. They understood Marx's theory of value in a mechanical-naturalistic, not in a sociological, sense. (Chapter 8)

Since Rubin's time - he wrote these essays in the 1920s - it hasn't just been Marx's critics that didn't notice the inseparable connection, but the bulk of his biggest fans: Marxists.

Since the things come forth with a determined, fixed social form, they, in turn, begin to influence people, shaping their motivation, and inducing them to establish concrete production relations with each other. Possessing the social form of "capital," things make their owner a "capitalist" and in advance determine the concrete production relations which will be established between him and other members of society. It seems as if the social character of things determines the social character of their owners. Thus the "personification of things" is brought about. (Chapter 3)

Economists

Rubin's ability to summarise economists is superb. He does so in one paragraph:

Vulgar economists commit two kinds of errors: 1) either they assign the "economic definiteness of form" to an "objective property" of things (C., II, p. 164), i.e., they derive social phenomena directly from technical phenomena; for example, the ability of capital to yield profit, which presupposes the existence of particular social classes and production relations among them, is explained in terms of the technical functions of capital in the role of means of production; 2) or they assign "certain properties materially inherent in instruments of labor" to the social form of the instruments of labor (Ibid.), i.e., they derive technical phenomena directly from social phenomena; for example, they assign the power to increase the productivity of labor which is inherent in means of production and represents their technical function, to capital, i.e., a specific social form of production (the theory of the productivity of capital). (Chapter 3)

According to Rubin, Marx's approach is the inverse to how economists analyse the world:

Starting with the social forms as given, the Classical Economists tried to reduce complex forms to simpler forms by means of analysis in order finally to discover their material-technical basis or content. However, Marx, starting from a given condition of the material process of production, from a given level of productive forces, tried to explain the origin and character of social forms which are assumed by the material process of production. (Chapter 4)

Value

Rubin links value with prices, in a way that all the Klimans, Bortkiewiczs, Cockshotts, and Sraffas persistently fail to do:

The basic error of the majority of Marx's critics consists of: 1) their complete failure to grasp the qualitative, sociological side of Marx's theory of value, and 2) their confining the quantitative side to the examination of exchange ratios, i.e., quantitative relations of value among things; they ignored the quantitative interrelations among the quantities of social labor distributed among the different branches of production and different enterprises, interrelations which lie at the basis of the quantitative determination of value. (Chapter 8)

The deviation of market prices from values is the mechanism by means of which the overproduction and underproduction is removed and the tendency toward the reestablishment of equilibrium among the given branches of production of the national economy is set up. (Chapter 8)

The average prices do not correspond to the actual movements of concrete market prices, but explain them. This theoretical, abstract formula of the movement of prices is, in fact, the "law of value." From this it can be seen that every objection to the theory of value which is based on the fact that concrete market prices do not coincide with theoretical "values," is nothing more than a misunderstanding. Total agreement between market price and value would mean the elimination of the unique regulator which prevents different branches of the social economy from moving in opposite directions. (Chapter 9)

This "moving in opposites directions" is the result of the uncontrolled overproduction and underproduction in the anarchic commodity economy.

In a commodity economy, no one controls the distribution of labor among the individual branches of production and the individual enterprises. No clothmaker knows how much cloth is needed by society at a given time nor how much cloth is produced at a given time in all cloth-making enterprises. The production of cloth thus either outruns the demand (overproduction) or lags behind it (underproduction). (Chapter 8)

Prices

Chapters 17 and 18 were the most challenging for me. Chapter 17 explains how supply and demand relate to value. Chapter 18 concerns the relationship between production prices and average profits, on one side, and value, on the other. This is more famously described as the transformation problem (the linked Wikipedia page needs a complete re-write, by the way.) Rubin provides no mechanistic transformation of value to production prices, but links them as layers in a general scientific theory.

The increase of productivity of labor, expressed in the labor-value of products, cannot influence the distribution of labor any other way than through its influence on the distribution of capital. Such influence on the distribution of capital is in turn possible only if changes in the productivity of labor and labor-value cause changes in costs of production or in the average rate of profit, i.e., influence the production price. (Chapter 18)

The labor theory of value is a theory of simple commodity economy, not in the sense that it explains the type of economy that preceded the capitalist economy, but in the sense that it describes only one aspect of the capitalist economy, namely production relations among commodity producers which are characteristic for every commodity economy. (Chapter 18)

This layering works in much the same way as the theory of the cell gives way to organs, systems and organisms in biology. Perhaps a better analogy is the distinction between the matter of the brain and the formation of human consciousness. We know that human consciousness stems from chemical and electrical impulses in the brain, but we'll probably always be clueless as to how that manifests as what we experience as consciousness. In a similar sort of way, there is no mechanical transformation of value into price. However, we know the sociological truth that workers have nothing to sell but their labour-power. Workers are employed in a system that is so productive that they can easily out-produce what they need to survive, as workers, from day-to-day. This excess produce is captured and shared (between those that own everything) via an intellectually sophisticated and enforced social relationship, money. The only thing different between this - capitalism - and slavery or serfdom is that the excess produce isn't completely consumed by those that own everything, but used to expand this way of life.

NB This is not to suggest that the value-price relationship suffers from the same issue as the brain-mind relationship, an explanatory gap. The relationship between value and price is fully explained. It's merely that the relationship cannot be fully explained solely in economic or mathematical terms.

Rubin

Rubin's life in soviet Russia appears to have been especially traumatic. From his Wikipedia page:

Rubin was arrested on December 23, 1930, and accused of being a member of the All-Union Bureau of Mensheviks, a fictitious secret organisation. [...] On January 28, 1931, Rubin was brought to another cell, where he was shown another prisoner and told that if he did not confess, the prisoner would be shot. Rubin refused and the prisoner was executed before him. The process was repeated the next night. After the second shooting, Rubin negotiated a "confession" with his interrogators, who insisted that he implicate his mentor David Riazanov as a member of a secret Menshevik conspiracy.

Rubin served most of his prison term in solitary confinement, during which he continued his research as best he could. When he fell ill with a suspected cancer, he was removed to a hospital and encouraged to make further confessions in return for favourable treatment, but declined the offer. He was released on a commuted sentence in 1934 and allowed to work in Aktyubinsk, Kazakhstan, as an economic planner. Rubin was arrested once more during the Great Purge in 1937. After this arrest he was never seen alive again.

Critique of the Gotha Programme

The Critique of the Gotha Programme (text) was written by Karl Marx in 1875 as a response to a document by the nascent Social Democratic Party of Germany. It was one of Marx's last writings (he died in 1883). The Wikipedia page describes the SPD as "one of the first Marxist-influenced parties in the world." It's difficult to see how that could be true given Marx's deep criticisms of the Gotha Program (which was adopted by the party). It is not until the Gotha Program was eventually replaced by the Erfurt Program (text) in 1891 that the statement on Wikipedia starts to have some truth to it. Engels wrote a critique of the Erfurt Program.

As usual, I've made the text into an e-book: http://sdrv.ms/10zf70H

Wealth, Value and Labour

I remember reading this document ten years ago and being immediately confused by Marx's distinction between wealth and value. I remember Anthony patiently trying to explain it to me. I kind of half got it, but not really. It's taken fifteen years for me to understand the entire scientific critique of political economy that Marx presents. Even a year or two ago I still refused to accept it on scientific grounds. I could not fully grasp the basic distinctions and categories. Turns out that Marx was correct.

Labor is not the source of all wealth. Nature is just as much the source of use values (and it is surely of such that material wealth consists!) as labor, which itself is only the manifestation of a force of nature, human labor power. The above phrase is to be found in all children's primers and is correct insofar as it is implied that labor is performed with the appurtenant subjects and instruments. But a socialist program cannot allow such bourgeois phrases to pass over in silence the conditions that lone give them meaning.

I'm not alone in my failure to understand Marx's critique. The SPD didn't understand it in 1875. They don't understand it today. Most Marxists don't understand it. To the great misfortune of millions of people, the pre-existing communists of the USSR, China, Cuba, Vietnam, etc. didn't understand it either. Marx is clear, but it is difficult to understand, especially if you grow up in a world almost entirely dominated by the bourgeois mode of production. To make matters worse, there are a lot of people who don't want to understand it or don't want you to understand it.

The bourgeois have very good grounds for falsely ascribing supernatural creative power to labor; since precisely from the fact that labor depends on nature it follows that the man who possesses no other property than his labor power must, in all conditions of society and culture, be the slave of other men who have made themselves the owners of the material conditions of labor. He can only work with their permission, hence live only with their permission.

The only other modern scientific theory that has come under sustained attack is the theory of evolution. That attack, almost entirely by religious forces, continues into the 21st century. Nevertheless, even at its most ferocious, the scale of the attack on evolution barely registers compared to the scale of the attack on the scientific critique of capitalist society.

Higher and lower stages of communism

The Critique of the Gotha Programme gets you thinking about a future communism. One of the notable things Marx discusses is the lower and higher orders of communism. I used to find this splitting of the idea of communism problematic, but I don't think I do anymore. Marx's justification is:

What we have to deal with here is a communist society, not as it has developed on its own foundations, but, on the contrary, just as it emerges from capitalist society; which is thus in every respect, economically, morally, and intellectually, still stamped with the birthmarks of the old society from whose womb it emerges.

Lower order communism is best described as "To each according to his contribution."

[...] the individual producer receives back from society — after the deductions have been made — exactly what he gives to it. What he has given to it is his individual quantum of labor. For example, the social working day consists of the sum of the individual hours of work; the individual labor time of the individual producer is the part of the social working day contributed by him, his share in it. He receives a certificate from society that he has furnished such-and-such an amount of labor (after deducting his labor for the common funds); and with this certificate, he draws from the social stock of means of consumption as much as the same amount of labor cost. The same amount of labor which he has given to society in one form, he receives back in another.

Marx described higher order communism as:

In a higher phase of communist society, after the enslaving subordination of the individual to the division of labor, and therewith also the antithesis between mental and physical labor, has vanished; after labor has become not only a means of life but life's prime want; after the productive forces have also increased with the all-around development of the individual, and all the springs of co-operative wealth flow more abundantly — only then then can the narrow horizon of bourgeois right be crossed in its entirety and society inscribe on its banners: From each according to his ability, to each according to his needs!

Of course, money needs to be abolished immediately. However, there is no longer a need for labour vouchers. We have these wonderful machines - computers and the Internet - that we could use to track peoples' contributions and ensure necessities are distributed correctly. The logistics of this isn't trivial; keeping track of billions of people wouldn't be easy. However, Facebook already tracks one billion accounts. It isn't a monumental effort to extend this infrastructure so we could record vital information on the entire population of the planet. A new form of distribution needs to be quickly realised. A disruption to distribution (or a failure to transform existing distribution) is where there is a huge risk to lives from starvation and disease.

If the material conditions of production are the co-operative property of the workers themselves, then there likewise results a distribution of the means of consumption different from the present one. Vulgar socialism (and from it in turn a section of the democrats) has taken over from the bourgeois economists the consideration and treatment of distribution as independent of the mode of production and hence the presentation of socialism as turning principally on distribution.

The state

There are some interesting comments on the state in The Critique of the Gotha Programme. Marx is very critical of the idea of the "free state." Engels, in his letter to August Bebel, sums it up really well:

All the palaver about the state ought to be dropped, especially after the Commune, which had ceased to be a state in the true sense of the term. The people’s state has been flung in our teeth ad nauseam by the anarchists, although Marx’s anti-Proudhon piece and after it the Communist Manifesto declare outright that, with the introduction of the socialist order of society, the state will dissolve of itself and disappear. Now, since the state is merely a transitional institution of which use is made in the struggle, in the revolution, to keep down one’s enemies by force, it is utter nonsense to speak of a free people’s state; so long as the proletariat still makes use of the state, it makes use of it, not for the purpose of freedom, but of keeping down its enemies and, as soon as there can be any question of freedom, the state as such ceases to exist. We would therefore suggest that Gemeinwesen ["commonalty"] be universally substituted for state; it is a good old German word that can very well do service for the French “Commune.”

Marx has some good stuff on the state and education:

"Elementary education by the state" is altogether objectionable. Defining by a general law the expenditures on the elementary schools, the qualifications of the teaching staff, the branches of instruction, etc., and, as is done in the United States, supervising the fulfillment of these legal specifications by state inspectors, is a very different thing from appointing the state as the educator of the people!

Ultimately, Marx seals the fate that the SPD succumbed to.

The German Workers' party — at least if it adopts the program — shows that its socialist ideas are not even skin-deep; in that, instead of treating existing society (and this holds good for any future one) as the basis of the existing state (or of the future state in the case of future society), it treats the state rather as an independent entity that possesses its own intellectual, ethical, and libertarian bases.

The Civil War in France

I recently read Karl Marx's The Civil War in France. It's about the Franco-Prussian War and the Paris Commune, 1870-71. This was the book that really began Marx's rise to infamy - accused of plotting the whole uprising from London. It was written during the war and subsequent revolution in Paris.

If, like me, you're not overly familiar with the history of 19th Century France (and Prussia), here is a short description of the main characters you'll encounter reading this book:

• M. Thiers - French historian, prime minister, suppressor of the Paris Commune, president of the Third Republic
• Louis Bonaparte - Emperor of the Second Empire, started the war with Prussia
• Otto von Bismarck -  Minister President of Prussia, credited with unifying modern Germany
• Blanqui - French socialist, absent leader of the Paris Commune
• Louis-Philippe I - King of France until the 1848 revolution

Large chunks of this book aren't very interesting for a modern reader. These sections are largely concerned with military strategy and the criticism of various personalities (mostly Bonaparte and Thiers). At the time, revealing these people for what they were was an important thing to do, but they're now long dead.

There are six chapters. I've summarised them below:

Chapter 1 is amazing in that it contains communiques from French and Prussian workers opposing the war.

The English working class stretch the hand of fellowship to the French and German working people. They feel deeply convinced that whatever turn the impending horrid war may take, the alliance of the working classes of all countries will ultimately kill war. The very fact that while official France and Germany are rushing into a fratricidal feud, the workmen of France and Germany send each other messages of peace and goodwill; this great fact, unparalleled in the history of the past, opens the vista of a brighter future.

Chapter 2 is mostly concerned with military tactics, towns of Germany and France and a history of the two nation's conflicts. The chapter ends with an extremely ominous (and prophetic) warning:

Let the sections of the International Working Men’s Association in every country stir the working classes to action. If they forsake their duty, if they remain passive, the present tremendous war will be but the harbinger of still deadlier international feuds, and lead in every nation to a renewed triumph over the workman by the lords of the sword, of the soil, and of capital.

In Chapter 3, Marx gets stuck into Thiers, describing him as a "monstrous gnome" and elucidating the build-up to the massacre. I thought chapters 3 and 4 were the least relevant to anyone reading nowadays.

In chapters 5 and 6 Marx writes about the events of the Paris Commune; its successes and its destruction.

In spite of all the tall talk and all the immense literature, for the last 60 years, about emancipation of labor, no sooner do the working men anywhere take the subject into their own hands with a will, than uprises at once all the apologetic phraseology of the mouthpieces of present society with its two poles of capital and wages-slavery (the landlord now is but the sleeping partner of the capitalist), as if the capitalist society was still in its purest state of virgin innocence, with its antagonisms still undeveloped, with its delusions still unexploded, with its prostitute realities not yet laid bare. The Commune, they exclaim, intends to abolish property, the basis of all civilization!

To find a parallel for the conduct of Thiers and his bloodhounds we must go back to the times of Sulla and the two Triumvirates of Rome. The same wholesale slaughter in cold blood; the same disregard, in massacre, of age and sex, the same system of torturing prisoners; the same proscriptions, but this time of a whole class; the same savage hunt after concealed leaders, lest one might escape; the same denunciations of political and private enemies; the same indifference for the butchery of entire strangers to the feud.

If the acts of the Paris working men were vandalism, it was the vandalism of defence in despair, not the vandalism of triumph, like that which the Christians perpetrated upon the really priceless art treasures of heathen antiquity; and even that vandalism has been justified by the historian as an unavoidable and comparatively trifling concomitant to the titanic struggle between a new society arising and an old one breaking down.

All the chorus of calumny, which the Party of Order never fail, in their orgies of blood, to raise against their victims, only proves that the bourgeois of our days considers himself the legitimate successor to the baron of old, who thought every weapon in his own hand fair against the plebeian, while in the hands of the plebeian a weapon of any kind constituted in itself a crime.

Working men’s Paris, with its Commune, will be forever celebrated as the glorious harbinger of a new society. Its martyrs are enshrined in the great heart of the working class. Its exterminators history has already nailed to that eternal pillory from which all the prayers of their priest will not avail to redeem them.

Engels, in his 1891 Introduction, makes some very interesting comments about the state and the Dictatorship of the Proletariat, especially relevant in light of the horrors done in his and Marx's name in the 20th Century.

From the outset the Commune was compelled to recognize that the working class, once come to power, could not manage with the old state machine; that in order not to lose again its only just conquered supremacy, this working class must, on the one hand, do away with all the old repressive machinery previously used against it itself, and, on the other, safeguard itself against its own deputies and officials, by declaring them all, without exception, subject to recall at any moment.

Of late, the Social-Democratic philistine has once more been filled with wholesome terror at the words: Dictatorship of the Proletariat. Well and good, gentlemen, do you want to know what this dictatorship looks like? Look at the Paris Commune. That was the Dictatorship of the Proletariat.

I read the edition at marxists.org. I've re-formatted it as an e-book (including the bulk of the appendix) and made it available at: The Civil War in France.

Reading Capital Politically

I have recently re-read Reading Capital Politically by Harry Cleaver. It's a book that injects contemporary discussion (until 1979) and class analysis into a reading of the first chapter of Karl Marx's Capital, Vol 1. I re-read an e-book edition (below) that I put together from Harry Cleaver's university webpage (which currently - Dec 2012 - no longer contains the files).

My edition is generally not as good as the PDF edition. The main disadvantage is that the footnotes aren't hyper-linked. However, it has the advantage of containing all the prefaces to the various editions that Cleaver has written over the years. It is current as of the preface to the German translation of November 2011. (I excluded the 2011 Polish preface as it is very similar to the German preface.) In that respect, it's the most complete version. I've also done some minor editing.

The formats that you can download are:

• HTML
• MOBI
• EPUB
• PDF

Below are some quotes that I found illuminating:

[...] the continuing spread of Taylorist and Fordist deskilling produced such an alienation of young workers from work that, by the 1960s, the desire to take over work and make it less alienating was being more and more replaced by its simple refusal. They didn’t want control; they wanted out.

For Marx, value was only understandable within the context of surplus value. It was not just a form, separable from its content. Value does have a form, exchange value, but it also has a content: imposed labor and the link between value and surplus value is that in the normal course of capital accumulation, the capitalists only impose labor when they can impose surplus labor.

The capitalists are capitalists, not when they consume the surplus, but when they invest it, i.e., when they impose more work. And this is exactly what the socialist critique of capitalist development fails to deal with. By focusing uniquely on the question of who owns or controls the surplus and demanding workers' control, it fails to come to grips with the substance of value and surplus value: endlessly imposed work.

Why did Marx hate money so much? Because it is the quintessential distillation of homogenized labor, of the reduction of all of human life to labor.

Rather than the usual Marxist image of the capitalist with a whip, better the image of would-be managers riding the tiger's back trying to coerce or cajole their mount along different lines of development, frequently coming within a hair's breath of falling off when the tiger rears or comes to a sudden halt, always in danger of the tiger turning around and ripping these upstarts from its back.

To the degree any group of people ruptures capitalist command and carves out their own space, capital responds by doing its best to isolate that space, to sever its connections with the rest of the system, to prevent it from drawing on the productivity of global social production and forcing it to rely on its own limited resources.

[...] the wage is not the only form through which the reduction of humans to abstract labor under capital is accomplished. Not in the Third World, not in the First. In all worlds where it holds sway the central problem for capital is the imposition of work, how it manages to do that is purely secondary.

But what, some may ask, of the peasants who produce a surplus they sell on the market? Are these not petty bourgeois producers and outside the working class? The answer is that they are still very much part of the working class if the result of their work is only self-reproduction. It does not even matter if they hire waged labor, if they are only earning subsistence. These peasants are essentially piece workers for capital and the per-unit price they obtain for their agricultural products is their piece rate.

It quickly becomes apparent to anyone who has read Engels and Stalin that Althusser and friends have added almost nothing to the original discussions of historical materialism except a more obscure vocabulary and a deeper scientific gloss. We are still left with a lifeless sociological taxonomy of modes of production, the unresolvable problems of the interactions between the base/superstructure dualism, the mystery of the articulation of modes, the absence of class struggle, and a fetishism of production that justifies contemporary socialism.

[...] despite the originality and usefulness of their research into the mechanisms of capitalist domination in both the economic and cultural spheres, and indeed precisely in the formulation of those mechanisms as one-sidedly hegemonic, Critical Theorists have remained blind to the ability of working-class struggles to transform and threaten the very existence of capital. Their concept of domination is so complete that the "dominated" virtually disappears as an active historical subject. In consequence, these philosophers have failed to escape the framework of mere ideological critique of capitalist society.

As Tronti pointed out, under the conditions of the unskilled mass worker, work itself could only be seen as a means of social control to be abolished, not upgraded. This understanding led directly to the realization that the basic characteristic of working-class struggle in this period is not only an escape from capital but also an escape from existence as working class. The aim of the mass worker is to cease to be a worker, not to make a religion of work.

[Quoting Marx:] "Bourgeois economy thus provides the key to the economy of antiquity, etc. But it is quite impossible [to gain this insight] in the manner of those economists who obliterate all historical differences and who see in all social phenomena only bourgeois phenomena. If one knows rent, it is possible to understand tribute, tithe, etc., but they do not have to be treated as identical."

The Society of the Spectacle

I recently re-read The Society of the Spectacle. I read the Knabb translation.

There is a pdf of the book online and physical copies are available. I needed it for my Kindle, however, so I downloaded the HTML, cleaned up the document and converted it to a mobi format.

UPDATE: Notes from the Sinister Quarter has created a superior version of this book. Go and get it from their website.

Below are some interesting quotes I found during this reading:

Kennedy survived as an orator to the point of delivering his own funeral oration, since Theodore Sorenson continued to write speeches for his successor in the same style that had contributed so much toward the dead man’s public persona.

Wherever abundant consumption is established, one particular spectacular opposition is always in the forefront of illusory roles: the antagonism between youth and adults. But real adults — people who are masters of their own lives — are in fact nowhere to be found.

Like the old religious fetishism, with its convulsionary raptures and miraculous cures, the fetishism of commodities generates its own moments of fervent exaltation. All this is useful for only one purpose: producing habitual submission.

The plain facts of history, however, are that the “Asiatic mode of production” (as Marx himself acknowledged elsewhere) maintained its immobility despite all its class conflicts; that no serf uprising ever overthrew the feudal lords; and that none of the slave revolts in the ancient world ended the rule of the freemen. The linear schema loses sight of the fact that the bourgeoisie is the only revolutionary class that has ever won;

Imprisoned in a flattened universe bounded by the screen of the spectacle that has enthralled him, the spectator knows no one but the fictitious speakers who subject him to a one-way monologue about their commodities and the politics of their commodities. The spectacle as a whole serves as his looking glass. What he sees there are dramatizations of illusory escapes from a universal autism.