PUT THE POLITICIANS ON THE MINIMUM WAGE AND WATCH HOW FAST THINGS CHANGE
Civilisation has operated in two ways - To make one part of society more affluent and the other more wretched than would have been the lot of either in a natural state
There are Natural Rights and Civil Rights. Life, Liberty and the Pursuit of Happiness
Where Our Power to Execute Our Natural Rights is Perfect, Government has No Legitimate Jurisdiction
When the Forces for War are Greater than the Forces for Peace   Then the World is in Danger
Politics is not a Dirty Word. It is a Way of Life. How is Your Way of Life Today ?
profit

The Sunday Story – What is Profit

 
profit
THE ESSENCE OF CAPITALIST EXPLOITATION
 
The Radical 
8th April 2018

 
FROM POLITICAL ECONOMY  BY JOHN EASTON
A MARXIST TEXTBOOK THAT’S EASY TO UNDERSTAND  
This Week 
What is Profit
Profit -the Motive Force of Capitalism
How the Merchant Capitalist made his Profits 
Profit in a Modern Capitalist Society
 
Next week 
 
The Cycle of Capitalist Production 
How the value of the Product is Made up
Wages 
 
Value of Labour-Power
The Living Standards of the Workers
The Secret of Surplus Value 
 
The Rate of Surplus Value and the Class Struggle 
Wages and the Struggle Between Capitalist and Worker 
Abolition of the “Wages System”
 
What is Profit
 
Capitalists pretend that the amounts they take in profits are not great, but the facts show what

 
an enormous total is in reality taken by the propertied class in rent,interest and profit.

 
The richest 1 percent now owns more of the country’s wealth than at any time in the past 50 years.
 
The Richest 1% own half the world’s wealth, study finds
 
The world’s richest people have seen their share of the globe’s total wealth increase from 42.5%

 
at the height of the 2008 financial crisis to 50.1% in 2017, or $140tn (£106,000,000,000,000),

 
according to Credit Suisse’s global wealth report published on Tuesday.
 

At the other end of the spectrum, the world’s 3.5 billion poorest adults each have assets of less

 
than $10,000 (£7,600). Collectively these people, who account for 70% of the world’s working age

 
population, account for just 2.7% of global wealth.
 

In ancient slave society the source of the wealth of the slave owner was for all to see. 
 
What the slave produced, the slave – owner owned.
 
Feudal exploitation was likewise open and without mystery
 
But capitalist exploitation is different. 
 
There is no law compelling the worker to work for the capitalist.
 
There is no law saying how much the caitalist is to get and how much the worker.
 
The riddle of the capitalist’s profit can only be solved by delving into the hidden laws and

 
workings of the capitalist system.
 

The worker sells his power to work and the capitalist buys it.
 
The worker stays poor, the capitalist becomes rich and powerful. 
 
What is the Capitalists secret. 
 
What is Profit and where does it come from
 
Profit -the Motive Force of Capitalism
 
The process of the circulation of capital is represented by the formula M–C–M+
 
Simply, the capitalists starts with a sum of money M
 
Which he converts into Commodities C (machinery,raw materials

 
and labour power to work on the raw material)
 

Then sells the product for more money than he started with M+
 
” The repetition or renewal of the act of selling in order to buy more is for consumption, or the

 
satisfaction of wants….. Use Values must therefore never be looked at as the real aim of the

 
capitalist, neither must the profit of a single transaction.

 
The restless never ending process of profit -making alone is what he aims at” – Marx
 

How the Merchant Capitalist made his Profits
 
This was different from the modern capitalist.
 
In medival times communities had little dependence on trade 
 
as in most things they were self sufficient.
 
So the Merchant combined trade with piracy, plunder and violence.
 
Profits were made on supply and demand -plenty and scarcity.
 
They bought cheaply and sold dearly
 
Merchants were not associated with production of the surpluses that they appropriated.
 
Profit in the Modern Capitalist Society
 
Extra profits are made by buying cheap and selling dear,
 
but it is not in this way that the capitalist class as a whole makes its vast profits.
 
Self sufficient communities are few and far between, but all production is for exchange
 
EXCHANGE IS EVERYWHERE – The accumulation of commodities. 
 
Goods produced for sale on the market.
 
The bulk of sales are between capitalists 
 
Say Iron Ore – sales by the capitalist whose workers produce raw materials sells to a capitalist
 
 whose workers produce semi-manufactured goods – steel tubes, 
 
who sells to another capitalist whose workers produce a finished product – bicycles
 
Who sells to a wholesaler
 
Who sells to a retailer.
 
Not forgetting the sub-contractors supplying components – bells or brakes
 
With the suppliers of machinery ,of fuel and so forth.
 
Profit is made by buying below value and selling above value
 
What one capitalist gains another loses, 
 
and the capitalist class as a WHOLE IS NO BETTER OFF 
 
The capitalist class as a whole cannot over – reach itself.
 
How can their wealth then be explained ?
 
The bulk of the consumers to whom the final products are sold are the workers.
 
So the workers are exploited twice once on production and once on purchase
 
But this is still not the root cause of capitalist exploitation in capitalist society.
 
but it a way of swindling the workers.
 
And to remind you the Rochdale Coop Movement was set up to prevent this. 
 
Generally speaking, the market does not discriminate against any one class of purchasers.
 
So capitalist profit as a whole, in a capitalist society –
 
is not derived from buying cheap and selling dear.
 
Next time 
 
We find out what does :-
 
M — C — P –New C — M+
 
The Cycle of Capitalist Production 
How the Value of the Product is Made Up
Wages
 
Maybe its time to start copying all the articles from the beginning

 
and making a folder of them for future reference 
 

1 THE RISE AND FALL OF CAPITALISM IN HUMAN HISTORY
2  THE ORIGINS OF CAPITALISM 
3  THE ORIGINS OF CAPITALISM -CONTINUED 
4  THE ORIGINS OF CAPITALISM – CONCLUDED
5  THE ESSENCE OF CAPITALIST EXPLOITATION – What is Profit
 
 
ALSO – IN SUPPORT OF A “SOCIALIST MARKET ECONOMY”(Agricultural)
“In order for a “Market” to “Exist” there must be Buyers as well as Sellers” -Giles Wynne
 

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