Expanded model of Absolute Surplus Value

Synopsis:

This post adds a given aspect to the Absolute Surplus Value{1} model of Ben Fine and Alfredo Saad-Filho, given in their book "Marx's Capital". Kindly note that the author of this post is only adding a particular aspect[already mentioned in the book] but not included in the given model[diagrammatic representation].

The Given Model:



Source courtesy: Marx's Capital, 4th ed., Fine and Filho, Page no. 41, Viva Books.



Expansion of the given model:

Adding the variable- 'Labour Intensity' to the above model refines and makes the representation much more dynamic. Hence, following analyses are possible using the expanded model.

Prepared by: Bhagirath Baria, based on the model by Fine and Silho

Absolute Value:

 

Lengthening the working day or increasing the intensity of work[measurable by productivity per hour per labourer] or both results in increased surplus value[s] accrued to the firm owner/organizer/capitalist. The given model[as in 'Marx's Capital'] focuses on the working day variable while mentions in theory about the possibility of increasing the surplus value through increased intensity of work.

 

"There are other ways of producing absolute surplus value. For example, if work becomes more intense during a given working day more labour would be performed in the same period, and absolute surplus value would be produced. The same result can be achieved through making work continuous without breaks either of limited duration or even for rest and refreshment."{2}

 

Hence, when both the possibilities are included- 1). Lengthening of the working day and 2). Increased intensity of work during given hours; 3 possible situations may arise. Note, we are not here dealing with an Equilibrium/Disequilibrium situation. This model depicts the possible changes in order to increase the production of surplus value, and hence increase the rate of exploitation.

 

Lets understand each of the three possibilities:

 

Point E0: The given state of working day and labour intensity. Following a change in any of the two variables- working day or labour intensity, surplus value increases.

 

Point E1: Labour intensity remaining constant, working day lengthens. Hence the area E0E1X1X0 represents the increased exploitation of labour by capital, hence an increase in surplus value. This increase in Working time driven.

 

Point E2: Working day remaining constant, Labour intensity increases. Hence, increased surplus value as depicted by the area RNE0E2. Here, some further modifications and debate is required.

 

Point E3: Both Working day and Labour intensity increase. Hence increase in surplus value by the sum of areas- RNE0E2 + E2E0E1E3 + EOE1X1XO = RE3X1X0E0N

Conclusion:

Thus we see that the expanded model provides a much more dynamic analysis of the capitalist reality. It does not explain abstract ideas divorced from political realities. Most of Marx's works were a part and parcel of his political project of overthrowing capitalism, hence, his works aim to explain realities of the society and economy around. This helps his analyses to be much more realistic and provides a radical alternative to all sorts of heterodoxy as well as mainstream understanding about Socio-economic reality.

Notes & References:

1). As in Marx's Capital, 4th ed., Fine and Filho, Page no. 41, Viva Books.
2). ibid.
3). 'v' refers to variable capital in Marx's terminology- the amount of money in the form of capital whose value labour transfers to finished commodities in the production activity. 's' refers to surplus value- the amount of value created by labour in excess of variable capital[raw materials, etc]. s' refers to the increased surplus value due to above explained measures.