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View Full Version : Difference between capital and labour-power



Queen Mab
12th January 2014, 21:27
In Volume II of Capital, Marx says:


Apologetic economists present the matter in a wrong light, as is best seen if we keep our eyes fixed exclusively, without taking for the time being any notice of what follows, on the act of circulation M L (equal to M C), the conversion of money into labour-power on the part of the capitalist buyer, which is L M (equal to C M), the conversion of the commodity labour-power into money on the part of the seller, the labourer. They say: Here the same money realises two capitals; the buyer the capitalist converts his money-capital into living labour-power, which he incorporates in his productive capital; on the other hand the seller, the labourer, converts his commodity, labour-power, into money, which he spends as revenue, and this enables him to keep on reselling his labour-power and thereby to maintain it. His labour-power, then, represents his capital in commodity-form, which yields him a continuous revenue. Labour-power is indeed his property (ever self-renewing, reproductive), not his capital. It is the only commodity which he can and must sell continually in order to live, and which acts as capital (variable) only in the hands of the buyer, the capitalist. The fact that a man is continually compelled to sell his labour-power, i.e., himself, to another man proves, according to those economists, that he is a capitalist, because he constantly has commodities (himself) for sale. In that sense a slave is also a capitalist, although he is sold by another once and for all as a commodity; for it is in the nature of this commodity, a labouring slave, that its buyer does not only make it work anew every day, but also provides it with the means of subsistence that enable it to work ever anew. (Compare on this point Sismondi and Say in the letters to Malthus. [3] )

Why is Marx saying that labour only acts as capital in the hands of the capitalist? Can anyone help explain this passage to me?

Zanthorus
13th January 2014, 00:14
The opinion that Marx is attempting to counter is that because the worker sells a commodity (labour-power) for money, he is also a capitalist. By focusing on the sphere of circulation the capitalist and the worker appear to the apologetic economist as associates participating in an equal exchange, money for labour-power. The relationship appears as one of equality. But capital isn't just money, it is money that generates a profit, through the appropriation of surplus-value. Surplus-value originates from the discrepancy between the value of labour-power, which is merely the capacity to labour, and value produced during the labour itself. Labour can't be turned into capital without being set to work by a capitalist.

Does that explanation help?

Queen Mab
13th January 2014, 00:47
Thanks. I guess I was tripped up by the Marxian as opposed to the bourgeois definition of capital.

Comrade #138672
14th January 2014, 15:46
Even though labor power is sold as a commodity (by the worker), it does not function as capital (for the worker), because it cannot be employed as capital (by the worker). It is used by the workers to buy their means of subsistence, so that they can sustain themselves and reproduce their labor power, only so it can be sold again to the capitalist class.