The asymmetrical bargain: How fluid capital imposes insecurity on human labor

“ The commercial system which makes it easy for a capitalist to maintain income at cost of agony to the workingman does not recommend itself to the political student seeking the establishment of Justice in economic conditions. For, unfortunately, labor is not as "fluid" or insensible as capital. The workingman is a human being with the capacity for pain and [65] anxiety that characterizes our race; and every time that capital profits by its fluidity to flow from one industry to another, the lives of men, women, and children are threatened by want. ”

“ But it is not extravagant to assert that it imposes upon the majority a bet involving a thing quite as precious as life—I mean health. A man who bets his life and loses is free from pain on this earth at any rate; but the man who bets his health and loses is committed to a period of misery not only for himself, but for all those around him so long as breath is in his body.
The greatest evil that attends the competitive system of production is that it commits all engaged in it to a game the stake of which is the life happiness not only of himself, but of all dependent on him. ”

“ Having shown that the periodical resistance on the part of the working men against a reduction of wages, and their periodical attempts at getting a rise of wages, are inseparable from the wages system, and dictated by the very fact of labour being assimilated to commodities, and therefore subject to the laws regulating the general movement of prices ”

“ We have seen that the value of the labouring power, or in more popular parlance, the value of labour, is determined by the value of necessaries, or the quantity of labour required to produce them. If, then, in a given country the value of the daily average necessaries of the labourer represented six hours of labour expressed in three shillings, the labourer would have to work six hours daily to produce an equivalent for his daily maintenance. ”

“ Like that of every other commodity, its value is determined by the quantity of labour necessary to produce it. The labouring power of a man exists only in his living individuality. A certain mass of necessaries must be consumed by a man to grow up and maintain his life. But the man, like the machine, will wear out, and must be replaced by another man. Beside the mass of necessaries required for his own maintenance, he wants another amount of necessaries to bring up a certain quota of children that are to replace him on the labour market and to perpetuate the race of labourers. ”

“ Why, the consequence that generally obtains whenever, from whatever reason, the average rate of profit comes to differ in the different spheres of production. Capital and labour would be transferred from the less remunerative to the more remunerative branches; and this process of transfer would go on until the supply in the one department of industry would have risen proportionately to the increased demand, and would have sunk in the other departments according to the decreased demand. ”

“ A man who has no free time to dispose of, whose whole lifetime, apart from the mere physical interruptions by sleep, meals, and so forth, is absorbed by his labour for the capitalist, is less than a beast of burden. He is a mere machine for producing Foreign Wealth, broken in body and brutalized in mind. Yet the whole history of modern industry shows that capital, if not checked, will recklessly and ruthlessly work to cast down the whole working class to this utmost state of degradation. ”

“ In their attempts at reducing the working day to its former rational dimensions, or, where they cannot enforce a legal fixation of a normal working day, at checking overwork by a rise of wages, a rise not only in proportion to the surplus time exacted, but in a greater proportion, working men fulfil only a duty to themselves and their race. They only set limits to the tyrannical usurpations of capital. Time is the room of human development. ”

“ Your middle-class statisticians will tell you, for instance, that the average wages of factory families in Lancashire have risen. They forget that instead of the labour of the man, the head of the family, his wife and perhaps three or four children are now thrown under the Juggernaut wheels of capital, and that the rise of the aggregate wages does not correspond to the aggregate surplus labour extracted from the family. ”

“ The decline of our agricultural population is not merely a question of local interest. It is one of the most serious national importance, because the increasing proportion of children which year by year are brought up under the unhealthy conditions of town life is beginning to have its effect on the physique of the people and the stamina of the race. ”

“ But before doing so, we might ask, how does this strange phenomenon arise, that we find on the market a set of buyers, possessed of land, machinery, raw material, and the means of subsistence, all of them, save land in its crude state, the products of labour, and on the other hand, a set of sellers who have nothing to sell except their labouring power, their working arms and brains? That the one set buys continually in order to make a profit and enrich themselves, while the other set continually sells in order to earn their livelihood? ”

“ By repeating this same process daily, the capitalist will daily advance three shillings and daily pocket six shillings, one-half of which will go to pay wages anew, and the other half of which will form surplus value, for which the capitalist pays no equivalent. It is this sort of exchange between capital and labour upon which capitalistic production, or the wages system, is founded, and which must constantly result in reproducing the working man as a working man, and the capitalist as a capitalist. ”

“ If then the quantity of socially necessary labour realized in commodities regulates their exchangeable values, every increase in the quantity of labour wanted for the production of a commodity must augment its value, as every diminution must lower it. ”

“ If we consider commodities as values, we consider them exclusively under the single aspect of realized, fixed, or, if you like, crystallized social labour. In this respect they can differ only by representing greater or smaller quantities of labour, as, for example, a greater amount of labour may be worked up in a silken handkerchief than in a brick. But how does one measure quantities of labour? By the time the labour lasts, in measuring the labour by the hour, the day, etc. Of course, to apply this measure, all sorts of labour are reduced to average or simple labour as their unit. ”

“ All of you feel sure that what they daily sell is their Labour; that, therefore, Labour has a Price, and that, the price of a commodity being only the monetary expression of its value, there must certainly exist such a thing as the Value of Labour. However, there exists no such thing as the Value of Labour in the common acceptance of the word. We have seen that the amount of necessary labour crystallized in a commodity constitutes its value. Now, applying this notion of value, how could we define, say, the value of a ten hours working day? ”

“ I might answer by a generalization, and say that, as with all other commodities, so with labour, its market price will, in the long run, adapt itself to its value; that, therefore, despite all the ups and downs, and do what he may, the working man will, on an average, only receive the value of his labour which resolves into the value of his labouring power, which is determined by the value of the necessaries required for its maintenance and reproduction, which value of necessaries finally is regulated by the quantity of labour wanted to produce them. ”

“ The quantity of labour by which the value of the workman's labouring power is limited to the quantity of labour which his labouring power is apt to perform. Take the example of our spinner. We have seen that, to daily reproduce his labouring power, he must daily reproduce a value of three shillings, which he will do by working six hours daily. But this does not disable him from working ten or twelve or more hours a day. But by paying the daily or weekly value of the spinner's labouring power, the capitalist has acquired the right of using that labouring power during the whole day or week. ”

“ Suppose, moreover, six hours of average labour to be also realized in a quantity of gold equal to 3s. Then 3s. would be the Price, or the monetary expression of the Daily Value of that man's Labouring Power. If he worked daily six hours he would daily produce a value sufficient to buy the average amount of his daily necessaries, or to maintain himself as a labouring man.
But our man is a wages labourer. He must, therefore, sell his labouring power to a capitalist. If he sells it at 3s. daily, or 18s. weekly, he sells it at its value. Suppose him to be a spinner. ”

“ If one hour of labour realizes itself in a value of sixpence, if the working day of the labourer comprises twelve hours, if half of this time is unpaid labour, that surplus labour will add to the commodity a surplus value of three shillings, that is, of value for which no equivalent has been paid. This surplus value of three shillings constitutes the whole fund which the employing capitalist may divide, in whatever proportions, with the landlord and the money-lender. ”

“ But as the value of labour, or the wages paid to the workman, would be three shillings only, no equivalent would have been paid by the capitalist for the six hours of surplus labour worked by the workman, and realized in the value of the commodity. By selling this commodity at its value for eighteen shillings, the capitalist would, therefore, realize a value of three shillings, for which he had paid no equivalent. ”

“ He sells not only what has cost him an equivalent, but he sells also what has cost him nothing, although it has cost his workman labour. The cost of the commodity to the capitalist and its real cost are different things. I repeat, therefore, that normal and average profits are made by selling commodities not above, but at their real values.
XI. The Different Parts into Which Surplus Value is Decomposed The surplus value, or that part of the total value of the commodity in which the surplus labour or unpaid labour of the working man is realized, I call Profit. ”

“ Any analysis will show that much of the profits which are, in common thought, confounded with interest are in reality due, not to the power of capital, but to the power of concentrated capital, or of concentrated capital194 acting upon bad social adjustments. ”

“ Capital, impelled to appropriate productive forces for purposes of exploitation, ransacks the whole world, it procures its means of production from all corners of the earth, seizing them, if necessary by force, from all levels of civilisation and from all forms of society. The problem of the material elements of capitalist accumulation, far from being solved by the material form of the surplus value that has been produced, takes on quite a different aspect. ”

“ The market prices of commodities, and the market rates of profit, follow these phases, now sinking below their averages, now rising above them. Considering the whole cycle, you will find that one deviation of the market price is being compensated by the other, and that, taking the average of the cycle, the market prices of commodities are regulated by their values. Well! During the phase of sinking market prices and the phases of crisis and stagnation, the working man, if not thrown out of employment altogether, is sure to have his wages lowered. ”

“ Not to be defrauded, he must, even with such a fall of market prices, debate with the capitalist in what proportional degree a fall of wages has become necessary. If, during the phases of prosperity, when extra profits are made, he did not battle for a rise of wages, he would, taking the average of one industrial cycle, not even receive his average wages, or the value of his labour. ”

“ With the increase of capital, the difference between the capital employed and the capital consumed increases. In other words, there is increase in the value and the material mass of the instruments of labour, such as buildings, machinery, drain-pipes, working-cattle, apparatus of every kind that function for a longer or shorter time in processes of production constantly repeated, or that serve for the attainment of particular useful effects, whilst they themselves only gradually wear out, therefore only lose their value piece meal, therefore transfer that value of the product only bit by bit. ”

“ But if of a capital of 600, 500 is laid out in machinery, materials, and so forth, and 100 only in wages, the same capital must increase from 600 to 3,600 in order to create a demand for 600 workmen instead of 300. In the progress of industry the demand for labour keeps, therefore, no pace with the accumulation of capital. It will still increase in a constantly diminishing ratio as compared with the increase of capital. ”

“ Lincoln had to meet special and peculiar problems, and therefore there was no need and no opportunity for him to devote attention to those other problems which we face, and which in his day were so much less intense than in ours. Nevertheless, he very clearly put the proper democratic view when he said: “I hold that while man exists it is his duty to improve not only his own condition but to assist in ameliorating mankind.” And again: “Labor is prior to, and independent of, capital; capital is only the fruit of labor, and could never have existed but for labor. ”

“ We are all Americans; our common interests are as broad as the continent; the most vital problems are those that affect us all alike. The regulation of big business, and therefore the control of big property in the public interest, are pre-eminently instances of such functions which can only be performed efficiently and wisely by the Nation; and, moreover, so far 72as labor is employed in connection with inter-State business, it should also be treated as a matter for the National Government. ”

“ A heavily progressive inheritance tax on all such fortunes (heaviest on absentees) has the good qualities of an income tax, without its drawbacks; it is far more beneficial to the community at large, and far less burdensome to private individuals, as well as far more easily collected. A moderate, but progressive, income tax, carefully devised to fall genuinely on those who ought to pay, would, I believe, be a good thing; but a heavy and heavily progressive inheritance tax on great fortunes would be a far better thing. ”

“ Now, as it is essential in every community that every man should contribute to the maintenance of all, and as justice seems to demand that the workers should be rewarded according to results, it is claimed that private property solves the problem of production in a manner both effectual and just.
The competitive system, however, and the false notion of property to which the competitive system gives rise by setting every man to work for himself regardless of all the rest, prevents men from proceeding upon the far more economical plan of coöperation. ”

“ Socialism will not impair liberty. On the contrary, it will for the first time give to humanity economic liberty without which so-called individual and political liberty are fruitless. It proposes to regulate production, consecrate property, and concentrate wealth only to the extent necessary to assure to every man the maximum of security and the maximum of leisure; thereby putting an end to pauperism, prostitution, and in great part, to crime, and furnishing to man environment most conducive to his advancement and happiness. ”