this post was submitted on 15 Jan 2024
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Welcome to baby Marxist rehabilitation camp.

We are reading Volumes 1, 2, and 3 in one year. (Volume IV, often published under the title Theories of Surplus Value, will not be included in this particular reading club, but comrades are encouraged to do other solo and collaborative reading.) This bookclub will repeat yearly until communism is achieved.

The three volumes in a year works out to about 6½ pages a day for a year, 46⅔ pages a week.

I'll post the readings at the start of each week and @mention anybody interested. Let me know if you want to be added or removed.

Congratulations to those who've made it this far. We are almost finished the first three chapters, which are said to be the hardest. So far we have just been feeling it out, now is when we start to find our stride. Remember to be methodical and remember that endurance is key.


Just joining us? It'll take you about 4-5 hours to catch up to where the group is.

Archives: Week 1 – Week 2


Week 3, Jan 5-21, we are reading Volume 1, Chapter 3 Section 3 'Money', PLUS Volume 1, Chapter 4 'The General Formula for Capital', PLUS Volume 1, Chapter 5 'Contradictions in the General Formula'


Discuss the week's reading in the comments.


Use any translation/edition you like. Marxists.org has the Moore and Aveling translation in various file formats including epub and PDF: https://www.marxists.org/archive/marx/works/1867-c1/

Ben Fowkes translation, PDF: http://libgen.is/book/index.php?md5=9C4A100BD61BB2DB9BE26773E4DBC5D

AernaLingus says: I noticed that the linked copy of the Fowkes translation doesn't have bookmarks, so I took the liberty of adding them myself. You can either download my version with the bookmarks added, or if you're a bit paranoid (can't blame ya) and don't mind some light command line work you can use the same simple script that I did with my formatted plaintext bookmarks to take the PDF from libgen and add the bookmarks yourself.


Resources

(These are not expected reading, these are here to help you if you so choose)

(page 2) 47 comments
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[–] [email protected] 5 points 10 months ago (3 children)

Also, are we reading the Penguin version or the original English version?

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[–] [email protected] 5 points 10 months ago (3 children)

I'm trying to understand the why burying the silver makes commodities cheap:

Vanderlint, who fancies that the prices of commodities in a country are determined by the quantity of gold and silver to be found in it, asks himself why Indian commodities are so cheap. Answer: Because the Hindus bury their money. From 1602 to 1734, he remarks, they buried 150 millions of pounds sterling of silver, which originally came from America to Europe.

India was exporting Australian gold in exchange for American silver, then burying the silver. Since money was forcibly scarce in India, it discouraged or slowed down exchange of commodities relative to nations that kept lots of Silver in circulation?

So the relative prices appeared low to a European who was used to reckoning the price of goods in Silver. Though to a domestic Indian buyer, the "cheap" price was normal because their wages and cost of living would be similarly low.

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[–] [email protected] 5 points 10 months ago (2 children)

So what is a "crisis", exactly? Too much demand for cash?

[–] [email protected] 5 points 10 months ago

I was thinking like Weimar Germany or Zimbabwe with hyperinflation of paper money and a scramble for coins?

[–] [email protected] 5 points 10 months ago (1 children)

I took it to be more abstract, like a crisis could be anything that disrupts the continuous circulation of commodities. Could be on the front end, if capitalists turn to misers because market conditions worry them, or could be a sudden change in the socially necessary labor needed to produce something destroying the price etc. Once the continuous circulation is necessary to distribute the things society requires to reproduce itself any shock to the system could cause the cycle to break down.

But that could be unwarranted. He just kinda hints that we have the ingredients for a crisis now if I remember right.

[–] [email protected] 2 points 9 months ago* (last edited 9 months ago)

Agreed with everything here, except replace "continuous circulation of commodities" with "capitalist production and circulation as a whole". There can be crises of circulation and crises of production; usually they interlinked e.g. a crisis of overproduction or insufficient effective demand. There can also be monetary crises which arise from the inequality of price and value.

[–] [email protected] 5 points 10 months ago (1 children)
[–] [email protected] 3 points 10 months ago (1 children)

Do you have a different link? This one doesn't work here

[–] [email protected] 3 points 10 months ago (1 children)
[–] [email protected] 2 points 10 months ago

I found a YouTube link in your comment. Here are links to the same video on alternative frontends that protect your privacy:

[–] [email protected] 4 points 9 months ago* (last edited 9 months ago)

I'm still a bit behind, but something I never noticed in Ch3 is how a transaction is a realization in two senses: a commodity realizes its value, but also money realizes its use-value. The former is more often discussed by Marxists so I thought it was interesting for Marx to point out the double-sided nature of it.

Why is it important? Because a monetary crisis could occur in which extant money is unable to realize its own use-value as being immediately exchangeable.

[–] [email protected] 4 points 10 months ago* (last edited 10 months ago)

FOWKES: "but increases its magnitude, adds to itself a surplus-value, or is valorized [verwertet sich]*[Along with the concept of surplus-value, the concept of Verwertung is introduced here for the first time. Since there is no extant English word which adequately conveys Marx's meaning, we have adopted throughout the word 'valorization '.]

AVELING: "but adds to itself a surplus-value or expands itself."


then, just before footnote 6 in Ch.4, where Fowkes has "valorisation", Aveling&Moore have "expansion of value"

[–] [email protected] 3 points 10 months ago (2 children)

FOWKES: There is a contradiction immanent in the function of money as the means of payment. When the payments balance each other, money functions only nominally, as money of account, as a measure of value. But when actual payments have to be made, money does not come onto the scene as a circulating medium, in its merely transient form of an intermediary in the social metabolism, but as the individual incarnation of social labour, the independent presence of exchange-value, the universal commodity

AVELING: The function of money as the means of payment implies a contradiction without a terminus medius. In so far as the payments balance one another, money functions only ideally as money of account, as a measure of value. In so far as actual payments have to be made, money does not serve as a circulating medium, as a mere transient agent in the interchange of products, but as the individual incarnation of social labour, as the independent form of existence of exchange-value, as the universal commodity


This is a hard paragraph. What is Grandpa saying here?

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[–] [email protected] 3 points 9 months ago

In either C-M-C or M-C-M, the middle letter is used as a tool to acquire the other letter, which is the alpha and omega.

[–] [email protected] 3 points 9 months ago (1 children)

I don't get the meaning of footnote 16 to Ch.5

'When a man is in want of a demand, does Mr Malthus recommend him to pay some other person to take off his goods?' is a question put by an infuriated Ricardian to Malthus, who, like his disciple Parson Chalmers, economically glorifies this class of simple buyers or consumers. See An Inquiry into Those Principles, Respecting the Nature of Demand and the Necessity of Consumption, Lately Advocated by Mr Malthus etc.,

It appears in a section where Marx is saying that profit can't come from selling at a mark-up, but I don't get how it fits in there.

[–] [email protected] 3 points 9 months ago (1 children)

If surplus value comes from selling at a mark-up, then that is equivalent to saying surplus value originates in the buyers who are able to perpetually buy things at a mark-up. This class would have a hoard of value that grows continuously, which is not offset from a loss somewhere else like Marx says about the towns of Asia Minor in the body text after footnote 16.

[–] [email protected] 2 points 9 months ago (1 children)

Wait, do I remember hearing there's an exception made somewhere in Marxist theory for monopolies/natural monopolies? Coz then it would make sense

[–] [email protected] 3 points 9 months ago (1 children)

An exception for what? Value creation? Surplus value is always surplus labor. Fiddling with prices never changes the amount of labor embodied in a commodity.

Maybe the confusing part is that Marx is agreeing with the Ricardians and dissing the Malthusians, not the other way around. Marx thought Malthus was an idiot but respected Ricardo.

[–] [email protected] 3 points 9 months ago (1 children)

What did he disagree with Malthus on?

[–] [email protected] 3 points 9 months ago

This point is a big one. Marx wrote a chapter on Malthus in Theories of Surplus Value, and called this idea, the “vulgarised conception of profit upon expropriation,” an “absurd, stupid idea.” He also accused Malthus of plagiarizing his ideas in order to one-up Ricardo who was winning the race for top political economist at the time.

Malthus also had certain ideas about population which today are taken up by eugenecists and utopian economists, so that’s not going very well for him either. I don’t remember exactly in Capital but I think Marx brings up Malthus in the chapter on the industrial reserve army. In the same chapter of TSV Marx writes, “Malthus, ‘the profound thinker’, has different views. His supreme hope, which he himself describes as more or less utopian, is that the mass of the middle class should grow and that the proletariat (those who work) should constitute a constantly declining proportion (even though it increases absolutely) of the total population. This in fact is the course taken by bourgeois society.”

I’m sure there are other points, but I think Marx considered Malthus one of the vulgar economists.

[–] [email protected] 2 points 9 months ago (1 children)

Marx seems to be describing currency/money as a commodity used for exchange, and one that is tied to an actual physical commodity (precious medals commonly). That seems pretty different from the modern day fiat currency. Does that change anything about the cycle of commodities exchanged for money? Or about how commodities circulate in world trade (since there doesn't really seem to be a true universal money as he describes)?

[–] [email protected] 1 points 9 months ago

Fiat money has been discussed a bit in these threads. I don't imagine Marx could have seen it coming (the globe was on the gold standard til 1971). Let's just wait & see where he takes it.

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