“ Higher wages are never a cause for higher profits, although they may be one of the consequences of higher profits during some particular phases of the industrial cycle. ”
Karl Marx, Das Kapital (1894). copy citation
| Author | Karl Marx |
|---|---|
| Source | Das Kapital |
| Topic | profit consequences |
| Date | 1894 |
| Language | English |
| Reference | |
| Note | |
| Weblink | https://www.marxists.org/archive/marx/works/download/pdf/Capital-Volume-... |
Context
“The industrial capitalist invests it in means of production and in labour-power.
The rising demand for labour-power can never by itself be a cause for a rising rate of interest, in so far as the latter is determined by the rate of profit. Higher wages are never a cause for higher profits, although they may be one of the consequences of higher profits during some particular phases of the industrial cycle.
The demand for labour-power can increase because the exploitation of labour takes place under especially favourable circumstances, but the rising demand for labour-power, and thus for variable capital, does not in itself increase the profit;”
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