[Marxism] Proletarianization and Overaccumulation

[Charles Brown <cdb1003@xxxxxxxxxxx>]

Let us examine the matter a little more closely. "Overproduction" and 
"Underconsumption" are two sides of the same coin. "Over" or too much 
production of what and relative to what ? Too much is produced when 
the rate of profit starts to fall. Too much _from the perspective of 
the capitalists_. Not from the perspective of the working class.
 What is overaccumulation and what is over accumulated 
so as to cause the rate of profit to fall ? 


So, what is it that makes the amount of production or accumulation 
cause the rate of profit to start falling ? Socalled 
"overproductionists" emphasize the operation of Marx "Law of the 
tendency of the rate of profit to fall " or the FROP, falling rate of 
profit, for short. Marx reasons ( In Vol. I of _Capital_ that increase in the 
Organic 
Composition of Capital or OCC causes a tendency for the rate of profit 
to fall. Why ? The OCC is the ratio of the Constant Capital (means of 
production, plant, equipment, raw materials, instruments of 
production) to Variable Capital ( human labor): Constant Capital 
(numerator)/Variable Capital(denominator) of a mathematical fraction. 
As the numerator increases and the denominator decreases, the OCC goes 
up; it goes down vica versa, of course 


Marx explained in Vol. I of _Capital_, in the discussion of Relative 
Surplus value ( as opposed to Absolute Surplus Value) that capitalists 
are constantly trying to increase relative surplus value by looking 
for ways to "revolutionize the instruments of production" . The 
_Manifesto of the Communist Party_ had said the same thing. The 
bourgeoisie are constantly revolutionizing the instruments of 
production. Individual capitalists are always looking for innovations 
in the instuments of production, constant capital, so as to get a leg 
up on the competition. "Revolutions" of instruments of production are 
inventions and innovations of machines of all types which increase 
productivity, that is, allow the production of the same number of unit 
commodities, with fewer hours of labor , or more unit commodities with 
the same hours of labor. This increases the rate of surplus value 
relatively ( absolute surplus value is increased by lengthening the 
workday). Eventually, the innovations spread to the whole industry, 
reducing the workforce size. This is a critical process to Waistline's 
analysis of what is happening with robotization in industry today. It 
also increases the OCC in an industry. 


The increase in the OCC eventually tends to lower the average rate of 
profit when it goes industry wide, because labor, variable capital, is 
the only source of new value and new surplus value, which is the basis 
of profit. Capitalists accrue surplus value and profit from their 
variable capital investment, their investment in labor, not from their 
investment in constant capital, in more efficient machines and other 
instruments of production ( well , of course the one capitalist who gets the 
leg up on the rest with innovative instruments of production increases profit 
compared to others until they catch up) 


Thus, Marx concludes this all creates a tendency for the rate of 
profit to fall. He discusses this in Vol. III ,under the law of the tendency of 
the rate of profit to fall.


It is the accumulation of too much constant capital relative to 
variable capital that causes the rate of profit to fall in the 
law of the tendency of the rate of profit to fall. 


Overproduction is production of more commodities than can be sold. In 
other words, it is production of more commodities than the mass of 
consumers, the mass of wage-laborers, can buy. This is the sense in 
which overproduction and underconsumption are two-sides of the same 
coin. This is a second way in which the rate of profit tends to fall. 
It creates the classic situation of "inventories growing, warehouses 
filling up with unsold goods" It is also the point of contradiction of 
the famous anarchy of production. Many different companies just 
produce in an uncoordinated or overall unplanned manner. It is the 
point at which supply and demand don't equal each other. This mismatch 
is inherent in exploitation. 


It is inherent in exploitation because societies' wage-laborers as a 
whole are not paid enough to buy all that they produce. 

"Overproduction" does not refer to the OCC/FROP logic above. There is not too 
much _production_ of constant capital, of too much constant capital relative to 
variable capital. There is too much _accumulation_ or deployment of constant 
capital relative to variable capital. It is purchase and deployment of constant 
capital in increased ratio to variable capital that raises the Organic 
Composition of the total capital and causes the FROP. It is not production of 
commodities that raises the Organic Composition of the total capital and leads 
to the FROP. So, it is overaccumulation, not overproduction that causes the 
FROP, or the falling rate of profit.

But also lowering the rate of profit constantly is the unrealized profit due to 
exploited wage-laborers in society as a whole not being paid enough to buy all 
the personal consumption goods that they produce. The price of labor power is 
less than the total value of the commodities that expended labor power produces 
(Vol. I _Capital_, first sections). The difference between these being surplus 
value, exploited by the capitalist. The workers therefore aren't as I said paid 
enough to buy all they produce. Our reform solution is to give the workers back 
the surplus value, so they can buy the rest of what they produce. This like all 
reforms won't work or at least won't happen short of more fundamental change of 
power and state power, state laws. But demanding its institution, puts 
everybody right up to the wall at the end of capitalism. It exposes more 
readily the basic foundation of exploitation of capitalism, wage-labor etc.

So, I'd say S Artesian is an overaccumulationist, not an 
overproductionist, in that he relies on the law of the tendency of the 
rate of profit to fall, the FROP underlying his analysis. 

Of course, it is a specific instance of the FROP that causes the capitalists to 
start a given recession by getting rid of constant capital. That should be 
noted in discussions with workers. But, focus on that overaccumulation suggest 
that the solution to any given crisis should be sought in trying to raise the 
profit rate "back up". No, we say seek the solution to a crisis in giving the 
mass of workers money to buy the "surplus" commodities produced that correspond 
to surplus value exploited by the capitalist. End the "poverty and restricted 
consumption of the masses" to end a crisis ! That should be the Marxist demand. 


Charles 




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