The Three Sources and Three Component Parts of Marxism (Extract)

Having recognised that the economic system is the foundation on which the political superstructure is erected, Marx devoted his greatest attention to the study of this economic system. Marx’s principal work, Capital, is devoted to a study of the economic system of modern, i.e. capitalist, society.

Classical political economy, before Marx, evolved in England, the most developed of the capitalist countries. Adam Smith and David Ricardo, by their investigations of the economic system, laid the foundations of the labour theory of value. Marx continued their work; he provided a proof of the theory and developed it consistently. He showed that the value of every commodity is determined by the quantity of socially necessary labour time spent on its production.

Where the bourgeois economists saw a relation between things (the exchange of one commodity for another) Marx revealed a relation between people. The exchange of commodities expresses the connection between individual producers through the market. Money signifies that the connection is becoming closer and closer, inseparably uniting the entire economic life of the individual producers into one whole. Capital signifies a further development of this connection: man’s labour-power becomes a commodity. The wage-worker sells his labour-power to the owner of land, factories and instruments of labour. The worker spends one part of the day covering the cost of maintaining himself and his family (wages), while the other part of the day he works without remuneration, creating for the capitalist surplus-value, the source of profit, the source of the wealth of the capitalist class.

The doctrine of surplus-value is the cornerstone of Marx’s economic theory.

Capital, created by the labour of the worker, crushes the worker, ruining small proprietors and creating an army of unemployed. In industry, the victory of large-scale production is immediately apparent, but the same phenomenon is also to be observed in agriculture, where the superiority of large-scale capitalist agriculture is enhanced, the use of machinery increases and the peasant economy, trapped by money-capital, declines and falls into ruin under the burden of its backward technique. The decline of small-scale production assumes different forms in agriculture, but the decline itself is an indisputable fact.

By destroying small-scale production, capital leads to an increase in productivity of labour and to the creation of a monopoly position for the associations of big capitalists. Production itself becomes more and more social – hundreds of thousands and millions of workers become bound together in a regular economic organism – but the product of this collective labour is appropriated by a handful of capitalists. Anarchy of production, crises, the furious chase after markets and the insecurity of existence of the mass of the population are intensified.

By increasing the dependence of the workers on capital, the capitalist system creates the great power of united labour.

Marx traced the development of capitalism from embryonic commodity economy, from simple exchange, to its highest forms, to large-scale production.

And the experience of all capitalist countries, old and new, year by year demonstrates clearly the truth of this Marxian doctrine to increasing numbers of workers.

Capitalism has triumphed all over the world, but this triumph is only the prelude to the triumph of labour over capital.