german idealism and materialism
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this conclusion on two economic theories: the labour theory of value, and the
theory of surplus value.
Following a suggestion which goes back ultimately to Aristotle, Marx believed
that the true value of any product was in proportion to the amount of labour put
into it. That thesis enables us to decide what a product is worth only if we have
a way of measuring the value of labour. The way to do that is to work out the
cost of keeping the labourer alive and well for the time it takes to do the job.
Hence, if it takes a labourer a day to produce a quantity of flour, that flour is
worth the cost of one day’s subsistence.
Under capitalism, however, prices in the market are determined not by true
value, but by supply and demand. The capitalist, who owns the raw material and
the means of production, having paid the worker a wage equal to his day’s
subsistence, say £1, can often sell the product for many times that sum, say £10.
The difference between the subsistence wage and the market price is the surplus
value, in this case £9. Under capitalism, no part of this surplus value is returned
to the worker, it is all pocketed by the employer. The effect is that only one-tenth
of the labourer’s work is for his own benefit; nine-tenths of it is just to produce
profit for the capitalist (see Plate 15).
As technology develops, and the labourer’s productivity increases accordingly,
surplus value increases and the proportion of his work which is returned to him
becomes smaller and smaller. Finally this exploitation is bound to reach a point at
which the proletariat finds it intolerable, and rises in revolt. The capitalist system
will be replaced by the dictatorship of the proletariat, which will abolish private
property and introduce a socialist state in which the means of production are
totally under central government control. But the socialist state will itself be only
temporary, and it will wither away to be replaced by a communist society in
which the interests of the individual and the community will be identical.
The theory of surplus value suffers from a fatal weakness. Marx offers no
convincing reason why the capitalist, no matter how great his profits, should pay
no more than a subsistence wage. But this thesis is an essential element in his
prediction that capitalism would inevitably lead to revolution, and do so soonest
in those states where technology, and therefore exploitation, was progressing
fastest. In fact, employers soon began, and have since continued, to pay wages
well above subsistence level in advanced industrialized countries. It was not in
them but in backward Russia that the first proletarian revolution occurred.
If we treat Marxism as a scientific hypothesis, to be judged by the success of its
predictions, it must be said that it has been totally discredited by the course of
history since Marx’s death. But whatever Marx himself may have thought, his
theories are essentially philosophical rather than scientific; and judged from that
standpoint, they can claim both successes and failures. On the one hand, though
few historians nowadays accept that events are determined totally by economic
factors, no historian, not even a historian of philosophy, would dare to deny the
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