- •Lecture 1. The subject and the method of Political Economy
- •The economic activity as a condition of existence and society development. The labour-process and its elementary factors.
- •Instruments of labour.
- •The productive forces and productive relations: their unity and interdependency.
- •Economic laws and their objective character.
- •The subject and functions of Political Economy.
- •The method of Political Economy.
- •Lecture 2. Commodity production
- •Commodity and its factors: use-value and value. Exchange value.
- •The magnitude of commodity value.
- •Commodity and its factors: use-value and value. Exchange value.
- •The magnitude of commodity value.
- •Lecture 3. Commodity and Money
- •The form of value and its historical development.
- •The appearance of money. The essence and functions of money
- •The Fetishism of Commodities.
- •The form of value and its historical development.
- •Elementary or Accidental Form of Value.
- •X commodity a is worth y commodity b.
- •20 Yards of linen are worth 1 coat.
- •Total or Expanded Form of Value.
- •The General Form of Value
- •1. The altered character of the form of value
- •The Money-Form
- •The appearance of money. The essence and functions of money
- •The measure of Values
- •The medium of Circulation
- •Commodity — Money — Commodity.
- •The mean of hoarding
- •The means of Payment
- •Universal Money
- •The Fetishism of Commodities.
- •Lecture 4. Labour-Process and process of producing surplus-value.
- •Transformation of money into capital.
- •Labour-power as a commodity.
- •Labour-Process and process of producing surplus-value.
- •The Transformation of money into capital.
- •The labour-power as a commodity.
- •The Labour-Process and the Process of Producing Surplus-Value.
- •Lecture 5. Capital and Labour-Power
- •The essence of the capital. Constant Capital and Variable Capital
- •The Rate and the Mass of Surplus-Value
- •Modes of surplus-value production
- •Working-day I. Working-day II. Working-day III.
- •The relative surplus-value.
- •The absolute surplus-value.
- •In what follows the chief combinations alone are considered.
- •The stages of labour division in condition of capitalism
- •Simple capitalist co-operation
- •Division of Labour and Manufacture
- •Machinery and Modern Industry
- •Lecture 6. Wages
- •The essence of wages
- •The main forms and systems of wages
- •National Differences of Wages
- •The essence of wages
- •The main forms and systems of wages
- •2.1. Time-Wages
- •Daily value of labour-power/working-day of a given number of hours’
- •Piece-Wages as transformed condition of Time-Wages
- •Daily value of labour-power/the working day of a given number of hours
- •National Differences of Wages
- •Lecture 7. The accumulation of capital
- •The substance and types of reproduction. Simple Reproduction.
- •Capitalist production on a progressively increasing scale.
- •The substance and factors which determine the magnitude of accumulation.
- •Technical, value and organic composition of capital and tendencies of their dynamics.
- •Forms of accumulation. Centralization and concentration of capital.
- •The accumulation of capital and the employment. Unemployment and its forms.
- •Lecture 8. The circuit of capital
- •The circuit of capital and its stages.
- •The Circuit of Money Capital
- •I. First Stage. M — c
- •II. Second Stage. Function of Productive Capital
- •III. Third Stage. C' — m'
- •IV. The Circuit as a Whole
- •The Circuit of Productive Capital
- •The Circuit of Commodity-Capital
- •Three Formulas of the Circuit
- •The Time of Circulation
- •The Costs of Circulation
- •The Time of Purchase and Sale
- •Costs of Storage
- •Costs of Transportation
- •Lecture 9. Turnover of capital
- •The Turnover Time and the Number of Turnovers
- •Fixed Capital and Circulating Capital
- •The Aggregate Turnover of Advanced Capital. Cycles of Turnover
- •The Turnover of Variable Capital. The Annual Rate and mass of Surplus-Value.
- •(Capital turned over annually) / (capital advanced)
- •(Quantity of surplus-value produced during the year) / (variable capital advanced)
- •(Real rate of surplus-value × variable capital advanced × n) / (variable capital advanced)
- •(Quantity of s produced in one turnover period) / (variable capital employed in one turnover period)
- •Lecture 10. The Reproduction and Circulation of the Aggregate Social Capital
- •2. The Two Departments of Social Production
- •In each department the capital consists of two parts:
- •The exchange of the Aggregate Social Commodity in the case of simple reproduction.
- •I. Production of Means of Production:
- •II. Production of Articles of Consumption:
- •The exchange of the Aggregate Social Commodity in the case of Reproduction on an Expanded Scale.
- •Schematic Presentation of Accumulation
- •Lecture 11. Cost-Price and Profit
- •Cost-Price and profit
- •The Rate of Profit
- •Factors which determine the rate of profit.
- •Formation of a General Rate of Profit and Transformation of the Values of Commodities into Prices of Production
- •The Law of the Tendency of the Rate of Profit to Fall
- •Counteracting Influences
- •Lecture 12. Commercial Capital and Commercial Profit
- •Commercial Capital as the isolated part of industrial capital.
- •Commercial profit and mechanism of its formation.
- •Commercial Capital as the isolated part of industrial capital.
- •Commercial profit and mechanism of its formation.
- •Lecture 13. Money Capital and the interest
- •Interest-Bearing Capital
- •The interest.
- •Division of Profit. Rate of Interest. Natural Rate of Interest.
- •The Credit
- •The Role of Credit in Capitalist Production
- •II. Reduction of the costs of circulation.
- •III. Formation of stock companies. Thereby:
- •Lecture 14. Agrarian relations in the case of capitalist economics
- •Economic relations in agriculture.
- •The essence of capitalist ground-rent. Ground-rent and rent.
- •Monopoly in land ownership. The origin of Differential Rent. Differential Rent I
- •1) Fertility.
- •2) The location of the land.
- •Differential Rent II
- •Absolute Ground-Rent and monopolistic Ground-Rent – their unity and differences.
- •Price of Land
- •I. The price of land may rise without the rent rising, namely:
- •II. The price of land may rise, because the rent increases.
- •Lecture 15. National income
- •The essence of national income. The Trinity Formula
- •Production of Gross domestic product and National income.
- •Distribution Relations and Production Relations
- •The essence of national income. The Trinity Formula
- •2. Production of Gross domestic product and National income.
- •Distribution Relations and Production Relations
Lecture 13. Money Capital and the interest
-
Interest-Bearing Capital
-
The interest.
-
Division of Profit. Rate of Interest. Natural Rate of Interest.
-
The Credit
-
The Role of Credit in Capitalist Production
-
Interest-Bearing Capital
Let us first consider the singular circulation of interest-bearing capital. We shall then secondly have to analyze the peculiar manner in which it is sold as a commodity, namely loaned instead of relinquished once and for all.
The point of departure is the money which A advances to B. This may be done with or without security. The first-named form, however, is the more ancient, save advances on commodities or paper, such as bills of exchange, shares, etc. We are dealing here with interest-bearing capital in its usual form.
In B's possession the money is actually converted into capital, passes through M — C — M' and returns to A as M', as M+DM, where DM represents the interest.
The movement, therefore, is M — M — C — M' — M'.
What appears duplicated here, is 1) the outlay of money as capital, and 2) its reflux as realized capital, as M' or M+DM.
In the movement of merchant's capital, M — C — M', the same commodity changes hands twice, or more than twice, if merchant sells to merchant. But every such change of place of the same commodity indicates a metamorphosis, a purchase or sale of the commodity, no matter how often the process may be repeated, until it enters consumption.
On the other hand, the same money changes hands twice in C — M — C, but this indicates the complete metamorphosis of the commodity, which is first converted into money and then from money back into another commodity.
But in interest-bearing capital the first time M changes hands is by no means a phase either of the commodity metamorphosis, or of reproduction of capital. It first becomes one when it is expended a second time, in the hands of the active capitalist who carries on trade with it, or transforms it into productive capital. M's first change of hands does not express anything here, beyond its transfer from A to B — a transfer which usually takes place under certain legal forms and stipulations.
This double outlay of money as capital, of which the first is merely a transfer from A to B, is matched by its double reflux. As M', or M + DM, it flows back out of the process to B, the person acting as capitalist. The latter then transfers it back to A, but together with a part of the profit, as realized capital, as M + DM, in which DM is not the entire profit, but only a portion of the profit — the interest. It flows back to B only as what he had expended, as functioning capital, but as the property of A. To make its reflux complete, B must consequently return it to A. But in addition to the capital, B must also turn over to A a portion of the profit, a part which goes under the name of interest, which he had made with this capital since A had given him the money only as a capital, i.e., as value which is not only preserved in its movement, but also creates surplus-value for its owner. It remains in B's hands only so long as it is functioning capital. And with its reflux — on the stipulated date — it ceases to function as capital. When no longer acting as capital, however, it must again be returned to A, who had never ceased being its legal owner.
The form of lending, which is peculiar to this commodity, to capital as commodity, and which also occurs in other transactions instead of that of sale, follows from the simple definition that capital obtains here as a commodity, or that money as capital becomes a commodity.
Commodities loaned out as capital are loaned either as fixed or as circulating capital, depending on their properties. Money may be loaned out in either form. It may be loaned as fixed capital, for instance, if it is paid back in the form of an annuity, whereby a portion of the capital flows back together with the interest.
The manner of reflux is, therefore, always determined by the actual circuit described by capital in the act of reproduction and by its specific varieties. But as for loaned capital, its reflux assumes the form of return payments, because its advance, by which it is transferred, possesses the form of a loan.
The loaned capital flows back in two ways. In the process of reproduction it returns to the functioning capitalist, and then its return repeats itself once more as transfer to the lender, the money-capitalist, as return payment to the real owner, its legal point of departure.
The loaning capitalist gives away his capital, transfers it to the industrial capitalist, without receiving any equivalent. His transfer is not an act belonging to the real circulation process of capital at all. It serves merely to introduce this circuit, which is effected by the industrial capitalist. This first change of position of money does not express any act of the metamorphosis — neither buying nor selling. Ownership is not relinquished, because there is no exchange and no equivalent is received. The return of the money from the hands of the industrial capitalist to those of the loaning capitalist merely supplements the first act of giving away the capital. Advanced in the form of money, the capital again returns to the industrial capitalist through the circular process in the form of money. But since it did not belong to him when he invested it, it cannot belong to him on its return. Passing through the process of reproduction cannot by any means turn the capital into his property. He must therefore restore it to the lender. The first expenditure, which transfers the capital from the lender to the borrower, is a legal transaction which has nothing to do with the actual process of reproduction. It is merely a prelude to this process. The return payment, which again transfers the capital that has flowed back from the borrower to the lender is another legal transaction, a supplement of the first. One introduces the actual process, the other is an act supplementary to this process. Point of departure and point of return, the giving away and the recovery of the loaned capital, thus appear as arbitrary movements promoted by legal transactions, which take place before and after the actual movement of capital and have nothing to do with it as such. It would have been all the same as concerns this actual movement if the capital had from the first belonged to the industrial capitalist and had returned to him, therefore, as his own.
In the actual movement of capital its return is a phase in the process of circulation. The money is first converted into means of production; production transforms them into commodities; through sale of the commodities they are reconverted into money and return in this form into the hands of the capitalist who had originally advanced the capital in the form of money. But in the case of interest-bearing capital, the return, like alienation, is the result of a legal transaction between the owner of the capital and a second party. We see only the alienation and the return payment. Whatever passes in the interim is obliterated.
But since money advanced as capital has the property of returning to the person who advanced it, to the one who expended it as capital, and since M — C — M' is the immanent form of the movement of capital, the owner of the money can, for this very reason, loan it out as capital, as something that has the property of returning to its point of departure, of preserving, and increasing, its value in the course of its movement. He gives it away as capital, because it returns to its point of departure after having been employed as capital, hence can be restored by the borrower after a certain period precisely because it has come back to him.
Loaning money as capital — its alienation on the condition of it being returned after a certain time-presupposes, therefore, that it will be actually employed as capital, and that it actually flows back to its starting-point. The real cycle made by money as capital is, therefore, the premise for the legal transaction by which the borrower must return the money to the lender. If the borrower does not use the money as capital, that is his own business. The lender loans it as capital, and as such it is supposed to perform the functions of capital, which include the circuit of money-capital until it returns to its starting-point in the form of money.
The acts of circulation, M — C and C — M', in which a certain amount of value functions as money or commodities, are but intermediate processes, mere phases of the total movement. As capital, it performs the entire movement M — M'. It is advanced as money or a sum of values in one form or another, and returns as a sum of values. The lender of money does not expend it in purchasing commodities, or, if this sum of values is in commodity-form, does not sell it for money. He advances it as capital, as M — M', as a value, which returns to its point of departure after a certain term. He lends instead of buying or selling. This lending, therefore, is the appropriate form of alienating value as capital, instead of alienating it as money or commodities. It does not follow, however, that lending cannot also take the form of transactions which have nothing to do with the capitalist process of reproduction.