Wethusseethatthepriceofacommodityisindeeddeterminedbyitscostofproduction，butinsuchwisethattheperiodsinwhichthepriceofthesecommoditiesrisesabovethecostsofproductionarebalancedbytheperiodsinwhichitsinksbelowthecostofproduction，andviceversa。
Ofcoursethisdoesnotholdgoodforasinglegivenproductofanindustry，butonlyforthatbranchofindustry。Soalsoitdoesnotholdgoodforanindividualmanufacturer，butonlyforthewholeclassofmanufacturers。
Thedeterminationofpricebycostofproductionistantamounttothedeterminationofpricebythelabor-timerequisitetotheproductionofacommodity，forthecostofproductionconsists，firstofrawmaterialsandwearandtearoftools，etc。，i。e。，ofindustrialproductswhoseproductionhascostacertainnumberofwork-days，whichthereforerepresentacertainamountoflabor-time，and，secondly，ofdirectlabor，whichisalsomeasuredbyitsduration。
WageLabourandCapital——Chapter4KarlMarxWageLabourandCapitalBywhatarewagesdeteremined？
Now，thesamegenerallawswhichregulatethepriceofcommoditiesingeneral，naturallyregulatewages，orthepriceoflabor-power。Wageswillnowrise，nowfall，accordingtotherelationofsupplyanddemand，accordingascompetitionshapesitselfbetweenthebuyersoflabor-power，thecapitalists，andthesellersoflabor-power，theworkers。Thefluctuationsofwagescorrespondtothefluctuationinthepriceofcommoditiesingeneral。
Butwithinthelimitsofthesefluctuationsthepriceoflabor-powerwillbedeterminedbythecostofproduction，bythelabor-timenecessaryforproductionofthiscommodity：labor-power。
What，then，isthecostofproductionoflabor-power？
Itisthecostrequiredforthemaintenanceofthelaborerasalaborer，andforhiseducationandtrainingasalaborer。
Therefore，theshorterthetimerequiredfortraininguptoaparticularsortofwork，thesmalleristhecostofproductionoftheworker，theloweristhepriceofhislabor-power，hiswages。Inthosebranchesofindustryinwhichhardlyanyperiodofapprenticeshipisnecessaryandthemerebodilyexistenceoftheworkerissufficient，thecostofhisproductionislimitedalmostexclusivelytothecommoditiesnecessaryforkeepinghiminworkingcondition。Thepriceofhisworkwillthereforebedeterminedbythepriceofthenecessarymeansofsubsistence。
Here，however，thereentersanotherconsideration。Themanufacturerwhocalculateshiscostofproductionand，inaccordancewithit，thepriceoftheproduct，takesintoaccountthewearandtearoftheinstrumentsoflabor。Ifamachinecostshim，forexample，1，000shillings，andthismachineisusedupin10years，headds100shillingsannuallytothepriceofthecommodities，inordertobeableafter10yearstoreplacetheworn-outmachinewithanewone。Inthesamemanner，thecostofproductionofsimplelabor-powermustincludethecostofpropagation，bymeansofwhichtheraceofworkersisenabledtomultiplyitself，andtoreplaceworn-outworkerswithnewones。Thewearandtearoftheworker，therefore，iscalculatedinthesamemannerasthewearandtearofthemachine。
Thus，thecostofproductionofsimplelabor-poweramountstothecostoftheexistenceandpropagationoftheworker。Thepriceofthiscostofexistenceandpropagationconstituteswages。Thewagesthusdeterminedarecalledtheminimumofwages。Thisminimumwage，likethedeterminationofthepriceofcommoditiesingeneralbycostofproduction，doesnotholdgoodforthesingleindividual，butonlyfortherace。Individualworkers，indeed，millionsofworkers，donotreceiveenoughtobeabletoexistandtopropagatethemselves；butthewagesofthewholeworkingclassadjustthemselves，withinthelimitsoftheirfluctuations，tothisminimum。
Nowthatwehavecometoanunderstandinginregardtothemostgenerallawswhichgovernwages，aswellasthepriceofeveryothercommodity，wecanexamineoursubjectmoreparticularly。
WageLabourandCapital——Chapter5KarlMarxWageLabourandCapitalTheNatureandGrowthofCapitalCapitalconsistsofrawmaterials，instrumentsoflabor，andmeansofsubsistenceofallkinds，whichareemployedinproducingnewrawmaterials，newinstruments，andnewmeansofsubsistence。Allthesecomponentsofcapitalarecreatedbylabor，productsoflabor，accumulatedlabor。Accumulatedlaborthatservesasameanstonewproductioniscapital。
Sosaystheeconomists。
WhatisaNegroslave？Amanoftheblackrace。Theoneexplanationisworthyoftheother。
ANegroisaNegro。Onlyundercertainconditionsdoeshebecomeaslave。
Acotton-spinningmachineisamachineforspinningcotton。Onlyundercertainconditionsdoesitbecomecapital。Tornawayfromtheseconditions，itisaslittlecapitalasgoldisitselfmoney，orsugaristhepriceofsugar。
Intheprocessofproduction，humanbeingsworknotonlyuponnature，butalsoupononeanother。Theyproduceonlybyworkingtogetherinaspecifiedmannerandreciprocallyexchangingtheiractivities。Inordertoproduce，theyenterintodefiniteconnectionsandrelationstooneanother，andonlywithinthesesocialconnectionsandrelationsdoestheirinfluenceuponnatureoperate——i。e。，doesproductiontakeplace。
Thesesocialrelationsbetweentheproducers，andtheconditionsunderwhichtheyexchangetheiractivitiesandshareinthetotalactofproduction，willnaturallyvaryaccordingtothecharacterofthemeansofproduction。
Withthediscoverofanewinstrumentofwarfare，thefirearm，thewholeinternalorganizationofthearmywasnecessarilyaltered，therelationswithinwhichindividualscomposeanarmyandcanworkasanarmyweretransformed，andtherelationofdifferentarmiestoanotherwaslikewisechanged。
Wethusseethatthesocialrelationswithinwhichindividualsproduce，thesocialrelationsofproduction，arealtered，transformed，withthechangeanddevelopmentofthematerialmeansofproduction，oftheforcesofproduction。Therelationsofproductionintheirtotalityconstitutewhatiscalledthesocialrelations，society，and，moreover，asocietyatadefinitestageofhistoricaldevelopment，asocietywithpeculiar，distinctivecharacteristics。Ancientsociety，feudalsociety，bourgeois（orcapitalist）society，aresuchtotalitiesofrelationsofproduction，eachofwhichdenotesaparticularstageofdevelopmentinthehistoryofmankind。
Capitalalsoisasocialrelationofproduction。Itisabourgeoisrelationofproduction，arelationofproductionofbourgeoissociety。Themeansofsubsistence，theinstrumentsoflabor，therawmaterials，ofwhichcapitalconsists——havetheynotbeenproducedandaccumulatedundergivensocialconditions，withindefinitespecialrelations？Aretheynotemployedfornewproduction，undergivenspecialconditions，withindefinitesocialrelations？Anddoesnotjustthedefinitesocialcharacterstamptheproductswhichservefornewproductionascapital？
Capitalconsistsnotonlyofmeansofsubsistence，instrumentsoflabor，andrawmaterials，notonlyasmaterialproducts；itconsistsjustasmuchofexchangevalues。Allproductsofwhichitconsistsarecommodities。
Capital，consequently，isnotonlyasumofmaterialproducts，itisasumofcommodities，ofexchangevalues，ofsocialmagnitudes。Capitalremainsthesamewhetherweputcottonintheplaceofwool，riceintheplaceofwheat，steamshipsintheplaceofrailroads，providedonlythatthecotton，therice，thesteamships——thebodyofcapital——havethesameexchangevalue，thesameprice，asthewool，thewheat，therailroads，inwhichitwaspreviouslyembodied。Thebodilyformofcapitalmaytransformitselfcontinually，whilecapitaldoesnotsuffertheleastalteration。
Butthougheverycapitalisasumofcommodities——i。e。，ofexchangevalues——itdoesnotfollowthateverysumofcommodities，ofexchangevalues，iscapital。
Everysumofexchangevaluesisanexchangevalue。Eachparticularexchangevalueisasumofexchangevalues。Forexample：ahouseworth1，000poundsisanexchangevalueof1，000pounds：apieceofpaperworthonepennyisasumofexchangevaluesof1001/100thsofapenny。Productswhichareexchangeableforothersarecommodities。Thedefiniteproportioninwhichtheyareexchangeableformstheirexchangevalue，or，expressedinmoney，theirprice。Thequantityoftheseproductscanhavenoeffectontheircharacterascommodities，asrepresentinganexchangevalue，ashavingacertainprice。Whetheratreebelargeorsmall，itremainsatree。Whetherweexchangeironinpennyweightsorinhundredweights，forotherproducts，doesthisalteritscharacter：itsbeingacommodity，orexchangevalue？Accordingtothequantity，itisacommodityofgreateroroflesservalue，ofhigheroroflowerprice。
Howthendoesasumofcommodities，ofexchangevalues，becomecapital？
Thereby，thatasanindependentsocialpower——i。e。，asthepowerofapartofsociety——itpreservesitselfandmultipliesbyexchangewithdirect，livinglabor-power。
Theexistenceofaclasswhichpossessnothingbuttheabilitytoworkisanecessarypresuppositionofcapital。
Itisonlythedominionofpast，accumulated，materializedlaboroverimmediatelivinglaborthatstampstheaccumulatedlaborwiththecharacterofcapital。
Capitaldoesnotconsistinthefactthataccumulatedlaborserveslivinglaborasameansfornewproduction。Itconsistsinthefactthatlivinglaborservesaccumulatedlaborasthemeansofpreservingandmultiplyingitsexchangevalue。
WageLabourandCapital——Chapter6KarlMarxWageLabourandCapitalRelationofWage-LabourtoCaptialWhatisitthattakesplaceintheexchangebetweenthecapitalistandthewage-labor？
Thelaborerreceivesmeansofsubsistenceinexchangeforhislabor-power；
thecapitalistreceives，inexchangeforhismeansofsubsistence，labor，theproductiveactivityofthelaborer，thecreativeforcebywhichtheworkernotonlyreplaceswhatheconsumes，butalsogivestotheaccumulatedlaboragreatervaluethanitpreviouslypossessed。Thelaborergetsfromthecapitalistaportionoftheexistingmeansofsubsistence。Forwhatpurposedothesemeansofsubsistenceservehim？Forimmediateconsumption。
ButassoonasIconsumemeansofsubsistence，theyareirrevocablylosttome，unlessIemploythetimeduringwhichthesemeanssustainmylifeinproducingnewmeansofsubsistence，increatingbymylabornewvaluesinplaceofthevalueslostinconsumption。Butitisjustthisnoblereproductivepowerthatthelaborersurrenderstothecapitalistinexchangeformeansofsubsistencereceived。Consequently，hehaslostitforhimself。
Letustakeanexample。Foroneshillingalaborerworksalldaylonginthefieldsofafarmer，towhomhethussecuresareturnoftwoshillings。
Thefarmernotonlyreceivesthereplacedvaluewhichhehasgiventothedaylaborer，hehasdoubledit。Therefore，hehasconsumedtheoneshillingthathegavetothedaylaborerinafruitful，productivemanner。Fortheoneshillinghehasboughtthelabor-poweroftheday-laborer，whichcreatesproductsofthesoiloftwicethevalue，andoutofoneshillingmakestwo。Theday-laborer，onthecontrary，receivesintheplaceofhisproductiveforce，whoseresultshehasjustsurrenderedtothefarmer，oneshilling，whichheexchangesformeansofsubsistence，whichheconsumesmoreorlessquickly。Theoneshillinghasthereforebeenconsumedinadoublemanner——reproductivelyforthecapitalist，forithasbeenexchangedforlabor-power，whichbroughtforthtwoshillings；unproductivelyfortheworker，forithasbeenexchangedformeansofsubsistencewhicharelostforever，andwhosevaluehecanobtainagainonlybyrepeatingthesameexchangewiththefarmer。Capitalthereforepresupposeswage-labor；
wage-laborpresupposescapital。Theyconditioneachother；eachbringstheotherintoexistence。
Doesaworkerinacottonfactoryproduceonlycotton？No。Heproducescapital。Heproducesvalueswhichserveanewtocommandhisworkandtocreatebymeansofitnewvalues。
Capitalcanmultiplyitselfonlybyexchangingitselfforlabor-power，bycallingwage-laborintolife。Thelabor-powerofthewage-laborercanexchangeitselfforcapitalonlybyincreasingcapital，bystrengtheningthatverypowerwhoseslaveitis。Increaseofcapital，therefore，isincreaseoftheproletariat，i。e。，oftheworkingclass。
Andso，thebourgeoisieanditseconomistsmaintainthattheinterestofthecapitalistandofthelaboreristhesame。Andinfact，sotheyare！Theworkerperishesifcapitaldoesnotkeephimbusy。Capitalperishesifitdoesnotexploitlabor-power，which，inordertoexploit，itmustbuy。Themorequicklythecapitaldestinedforproduction——theproductivecapital——increases，themoreprosperousindustryis，themorethebourgeoisieenrichesitself，thebetterbusinessgets，somanymoreworkersdoesthecapitalistneed，somuchthedearerdoestheworkersellhimself。Thefastestpossiblegrowthofproductivecapitalis，therefore，theindispensableconditionforatolerablelifetothelaborer。
Butwhatisgrowthofproductivecapital？Growthofthepowerofaccumulatedlaboroverlivinglabor；growthoftheruleofthebourgeoisieovertheworkingclass。Whenwage-laborproducesthealienwealthdominatingit，thepowerhostiletoit，capital，thereflowbacktoititsmeansofemployment——i。e。，itsmeansofsubsistence，undertheconditionthatitagainbecomeapartofcapital，thatisbecomeagaintheleverwherebycapitalistobeforcedintoanacceleratedexpansivemovement。
Tosaythattheinterestsofcapitalandtheinterestsoftheworkersareidentical，signifiesonlythis：thatcapitalandwage-laboraretwosidesofoneandthesamerelation。Theoneconditionstheotherinthesamewaythattheusurerandtheborrowerconditioneachother。
Aslongasthewage-laborerremainsawage-laborer，hislostisdependentuponcapital。Thatiswhattheboastedcommunityofinterestsbetweenworkerandcapitalistsamountsto。
Ifcapitalgrows，themassofwage-laborgrows，thenumberofwage-workersincreases；inaword，theswayofcapitalextendsoveragreatermassofindividuals。
Letussupposethemostfavorablecase：ifproductivecapitalgrows，thedemandforlaborgrows。Itthereforeincreasesthepriceoflabor-power，wages。
Ahousemaybelargeorsmall；aslongastheneighboringhousesarelikewisesmall，itsatisfiesallsocialrequirementforaresidence。Butlettherearisenexttothelittlehouseapalace，andthelittlehouseshrinkstoahut。Thelittlehousenowmakesitclearthatitsinmatehasnosocialpositionatalltomaintain，orbutaveryinsignificantone；
andhoweverhighitmayshootupinthecourseofcivilization，iftheneighboringpalacerisesinequalofeveningreatermeasure，theoccupantoftherelativelylittlehousewillalwaysfindhimselfmoreuncomfortable，moredissatisfied，morecrampedwithinhisfourwalls。
Anappreciableriseinwagespresupposesarapidgrowthofproductivecapital。Rapidgrowthofproductivecapitalcallsforthjustasrapidagrowthofwealth，ofluxury，ofsocialneedsandsocialpleasures。Therefore，althoughthepleasuresofthelaborerhaveincreased，thesocialgratificationwhichtheyaffordhasfallenincomparisonwiththeincreasedpleasuresofthecapitalist，whichareinaccessibletotheworker，incomparisonwiththestageofdevelopmentofsocietyingeneral。Ourwantsandpleasureshavetheirorigininsociety；wethereforemeasuretheminrelationtosociety；wedonotmeasuretheminrelationtotheobjectswhichservefortheirgratification。Sincetheyareofasocialnature，theyareofarelativenature。
Butwagesarenotatalldeterminedmerelybythesumofcommoditiesforwhichtheymaybeexchanged。Otherfactorsenterintotheproblem。
Whattheworkersdirectlyreceivefortheirlabor-powerisacertainsumofmoney。Arewagesdeterminedmerelybythismoneyprice？
Inthe16thcentury，thegoldandsilvercirculationinEuropeincreasedinconsequenceofthediscoveryofricherandmoreeasilyworkedminesinAmerica。Thevalueofgoldandsilver，therefore，fellinrelationtoothercommodities。Theworkersreceivedthesameamountofcoinedsilverfortheirlabor-powerasbefore。Themoneypriceoftheirworkremainedthesame，andyettheirwageshadfallen，forinexchangeforthesameamountofsilvertheyobtainedasmalleramountofothercommodities。Thiswasoneofthecircumstanceswhichfurtheredthegrowthofcapital，theriseofthebourgeoisie，inthe18thcentury。
Letustakeanothercase。Inthewinterof1847，inconsequenceofbadharvest，themostindispensablemeansofsubsistence——grains，meat，butter，cheese，etc。——rosegreatlyinprice。Letussupposethattheworkersstillreceivedthesamesumofmoneyfortheirlabor-powerasbefore。Didnottheirwagesfall？Tobesure。Forthesamemoneytheyreceivedinexchangelessbread，meat，etc。Theirwagesfell，notbecausethevalueofsilverwasless，butbecausethevalueofthemeansofsubsistencehadincreased。
Finally，letussupposethatthemoneypriceoflabor-powerremainedthesame，whileallagriculturalandmanufacturedcommoditieshadfalleninpricebecauseoftheemploymentofnewmachines，offavorableseasons，etc。Forthesamemoneytheworkerscouldnowbuymorecommoditiesofallkinds。Theirwageshavethereforerisen，justbecausetheirmoneyvaluehasnotchanged。
Themoneypriceoflabor-power，thenominalwages，donotthereforecoincidewiththeactualorrealwages——i。e。，withtheamountofcommoditieswhichareactuallygiveninexchangeforthewages。Ifthenwespeakofariseorfallofwages，wehavetokeepinmindnotonlythemoneypriceoflabor-power，thenominalwages，butalsotherealwages。
Butneitherthenominalwages——i。e。，theamountofmoneyforwhichthelaborersellshimselftothecapitalist——northerealwages——i。e。，theamountofcommoditieswhichhecanbuyforthismoney——exhauststherelationswhicharecomprehendedinthetermwages。
Wagesaredeterminedaboveallbytheirrelationstothegain，theprofit，ofthecapitalist。Inotherwords，wagesareaproportionate，relativequantity。
Realwagesexpressthepriceoflabor-powerinrelationtothepriceofcommodities；relativewages，ontheotherhand，expresstheshareofimmediatelaborinthevaluenewlycreatedbyit，inrelationtotheshareofitwhichfallstoaccumulatedlabor，tocapital。
WageLabourandCapital——Chapter7KarlMarxWageLabourandCapitalTheGeneralLawthatDeterminestheRiseandFallofWagesandProfitsWehavesaid："Wagesarenotashareoftheworkerinthecommoditiesproducedbyhim。Wagesarethatpartofalreadyexistingcommoditieswithwhichthecapitalistbuysacertainamountofproductivelabor-power。"
Butthecapitalistmustreplacethesewagesoutofthepriceforwhichhesellstheproductmadebytheworker；hemustsoreplaceitthat，asarule，thereremainstohimasurplusabovethecostofproductionexpendedbyhim，thatis，hemustgetaprofit。
Thesellingpriceofthecommoditiesproducedbytheworkerisdivided，fromthepointofviewofthecapitalist，intothreeparts：
First，thereplacementofthepriceoftherawmaterialsadvancedbyhim，inadditiontothereplacementofthewearandtearofthetools，machines，andotherinstrumentsoflaborlikewiseadvancedbyhim；
second，thereplacementofthewagesadvanced；andthird，thesurplusleftover——i。e。，theprofitofthecapitalist。
Whilethefirstpartmerelyreplacespreviouslyexistingvalues，itisevidentthatthereplacementofthewagesandthesurplus（theprofitofcapital）areasawholetakenoutofthenewvalue，whichisproducedbythelaboroftheworkerandaddedtotherawmaterials。Andinthissensewecanviewwagesaswellasprofit，forthepurposeofcomparingthemwitheachother，assharesintheproductoftheworker。
Realwagesmayremainthesame，theymayevenrise，neverthelesstherelativewagesmayfall。Letussuppose，forinstance，thatallmeansofsubsistencehavefallen2/3rdsinprice，whiletheday’swageshavefallenbut1/3rd——forexample，fromthreetotwoshillings。Althoughtheworkercannowgetagreateramountofcommoditieswiththesetwoshillingsthanheformerlydidwiththreeshillings，yethiswageshavedecreasedinproportiontothegainofthecapitalist。Theprofitofthecapitalist——themanufacturer’sforinstance——hasincreasedoneshilling，whichmeansthatforasmalleramountofexchangevalues，whichhepaystotheworker，thelattermustproduceagreateramountofexchangevaluesthanbefore。Theshareofcapitalsinproportiontotheshareoflaborhasrisen。Thedistributionofsocialwealthbetweencapitalandlaborhasbecomestillmoreunequal。Thecapitalistcommandsagreateramountoflaborwiththesamecapital。Thepowerofthecapitalistclassovertheworkingclasshasgrown，thesocialpositionoftheworkerhasbecomeworse，hasbeenforceddownstillanotherdegreebelowthatofthecapitalist。
What，thenisthegenerallawthatdeterminestheriseandfallofwagesandprofitintheirreciprocalrelation？
Theystandininverseproportiontoeachother。Theshareof（profit）
increasesinthesameproportioninwhichtheshareoflabor（wages）falls，andviceversa。Profitrisesinthesamedegreeinwhichwagesfall；itfallsinthesamedegreeinwhichwagesrise。
Itmightperhapsbearguedthatthecapitalistclasscangainbyanadvantageousexchangeofhisproductswithothercapitalists，byariseinthedemandforhiscommodities，whetherinconsequenceoftheopeningupofnewmarkets，orinconsequenceoftemporarilyincreaseddemandsintheoldmarket，andsoon；thattheprofitofthecapitalist，therefore，maybemultipliedbytakingadvantageofothercapitalists，independentlyoftheriseandfallofwages，oftheexchangevalueoflabor-power；orthattheprofitofthecapitalistmayalsorisethroughimprovementsintheinstrumentsoflabor，newapplicationsoftheforcesofnature，andsoon。
Butinthefirstplaceitmustbeadmittedthattheresultremainsthesame，althoughbroughtaboutinanoppositemanner。Profit，indeed，hasnotrisenbecausewageshavefallen，butwageshavefallenbecauseprofithasrisen。Withthesameamountofanotherman’slaborthecapitalisthasboughtalargeramountofexchangevalueswithouthavingp[aidmoreforthelaboronthataccount——i。e。，theworkispaidforlessinproportiontothenetgainwhichityieldstothecapitalist。
Inthesecondplace，itmustbeborneinmindthat，despitethefluctuationsinthepricesofcommodities，theaveragepriceofeverycommodity，theproportioninwhichitexchangesforothercommodities，isdeterminedbyitscostofproduction。Theactsofoverreachingandtakingadvantageofoneanotherwithinthecapitalistranksnecessarilyequalizethemselves。
Theimprovementsofmachinery，thenewapplicationsoftheforcesofnatureintheserviceofproduction，makeitpossibletoproduceinagivenperiodoftime，withthesameamountoflaborandcapital，alargeramountofproducts，butinnowisealargeramountofexchangevalues。Ifbytheuseofthespinning-machineIcanfurnishtwiceasmuchyarninanhourasbeforeitsinvention——forinstance，100poundsinsteadof50pounds——inthelongrunIreceiveback，inexchangeforthis100poundsnomorecommoditiesthanIdidbeforefor50；becausethecostofproductionhasfallenby1/2，orbecauseIcanfurnishdoubletheproductatthesamecost。
Finally，inwhatsoeverproportionthecapitalistclass，whetherofonecountryoroftheentireworld-market，distributethenetrevenueofproductionamongthemselves，thetotalamountofthisnetrevenuealwaysconsistsexclusivelyoftheamountbywhichaccumulatedlaborhasbeenincreasedfromtheproceedsofdirectlabor。Thiswholeamount，therefore，growsinthesameproportioninwhichlaboraugmentscapital——i。e。，inthesameproportioninwhichprofitrisesascomparedwithwages。
WageLabourandCapital——Chapter8KarlMarxWageLabourandCapitalTheInterestsofCapitalandWage-LabourareDiametricallyopposedEffectofgrowthofproductiveCapitalonWagesWethusseethat，evenifwekeepourselveswithintherelationofcapitalandwage-labor，theinterestsofcapitalsandtheinterestsofwage-laborarediametericallyopposedtoeachother。
Arapidgrowthofcapitalissynonymouswitharapidgrowthofprofits。
Profitscangrowrapidlyonlywhenthepriceoflabor——therelativewages——decreasejustasrapidly。Relativewagesmayfall，althoughrealwagesrisesimultaneouslywithnominalwages，withthemoneyvalueoflabor，providedonlythattherealwagedoesnotriseinthesameproportionastheprofit。If，forinstance，ingoodbusinessyearswagesrise5percent，whileprofitsrise30percent，theproportional，therelativewagehasnotincreased，butdecreased。
If，therefore，theincomeoftheworkerincreasedwiththerapidgrowthofcapital，thereisatthesametimeawideningofthesocialchasmthatdividestheworkerfromthecapitalist，andincreaseinthepowerofcapitaloverlabor，agreaterdependenceoflaboruponcapital。
Tosaythat"theworkerhasaninterestintherapidgrowthofcapital"，meansonlythis：thatthemorespeedilytheworkeraugmentsthewealthofthecapitalist，thelargerwillbethecrumbswhichfalltohim，thegreaterwillbethenumberofworkersthancanbecalledintoexistence，themorecanthemassofslavesdependentuponcapitalbeincreased。
Wehavethusseenthateventhemostfavorablesituationfortheworkingclass，namely，themostrapidgrowthofcapital，howevermuchitmayimprovethemateriallifeoftheworker，doesnotabolishtheantagonismbetweenhisinterestsandtheinterestsofthecapitalist。Profitandwagesremainasbefore，ininverseproportion。
Ifcapitalgrowsrapidly，wagesmayrise，buttheprofitofcapitalrisesdisproportionatelyfaster。Thematerialpositionoftheworkerhasimproved，butatthecostofhissocialposition。Thesocialchasmthatseparateshimfromthecapitalisthaswidened。
Finally，tosaythat"themostfavorableconditionforwage-laboristhefastestpossiblegrowthofproductivecapital"，isthesameastosay：
thequickertheworkingclassmultipliesandaugmentsthepowerinimicaltoit——thewealthofanotherwhichlordsoverthatclass——themorefavorablewillbetheconditionsunderwhichitwillbepermittedtotoilanewatthemultiplicationofbourgeoiswealth，attheenlargementofthepowerofcapital，contentthustoforgeforitselfthegoldenchainsbywhichthebourgeoisiedragsitinitstrain。
Growthofproductivecapitalandriseofwages，aretheyreallysoindissolublyunitedasthebourgeoiseconomistsmaintain？Wemustnotbelievetheirmerewords。Wedarenotbelievethemevenwhentheyclaimthatthefattercapitalisthemorewillitsslavebepampered。Thebourgeoisieistoomuchenlightened，itkeepsitsaccountsmuchtoocarefully，tosharetheprejudicesofthefeudallord，whomakesanostentatiousdisplayofthemagnificenceofhisretinue……Theconditionsofexistenceofthebourgeoisiecompelittoattendcarefullytoitsbookkeeping。Wemustthereforeexaminemorecloselyintothefollowingquestion：
Inwhatmannerdoesthegrowthofproductivecapitalaffectwages？
Ifasawhole，theproductivecapitalofbourgeoissocietygrows，theretakesplaceamoremany-sidedaccumulationoflabor。Theindividualcapitalsincreaseinnumberandinmagnitude。Themultiplicationsofindividualcapitalsincreasesthecompetitionamongcapitalists。Theincreasingmagnitudeofincreasingcapitalsprovidesthemeansofleadingmorepowerfularmiesofworkerswithmoregiganticinstrumentsofwarupontheindustrialbattlefield。
Theonecapitalistcandrivetheotherfromthefieldandcarryoffhiscapitalonlybysellingmorecheaply。Inordertosellmorecheaplywithoutruininghimself，hemustproducemorecheaply——i。e。，increasetheproductiveforcesoflaborasmuchaspossible。
Buttheproductiveforcesoflaborisincreasedaboveallbyagreaterdivisionoflaborandbyamoregeneralintroductionandconstantimprovementofmachinery。Thelargerthearmyofworkersamongwhomthelaborissubdivided，themoregiganticthescaleuponwhichmachineryisintroduced，themoreinproportiondoesthecostofproductiondecrease，themorefruitfulisthelabor。Andsotherearisesamongthecapitalistsauniversalrivalryfortheincreaseofthedivisionoflaborandofmachineryandfortheirexploitationuponthegreatestpossiblescale。
If，now，byagreaterdivisionoflabor，bytheapplicationandimprovementofnewmachines，byamoreadvantageousexploitationoftheforcesofnatureonalargerscale，acapitalisthasfoundthemeansofproducingwiththesameamountoflabor（whetheritbedirectoraccumulatedlabor）alargeramountofproductsofcommoditiesthanhiscompetitors——if，forinstance，hecanproduceawholeyardoflineninthesamelabor-timeinwhichhiscompetitorsweavehalf-a-yard——howwillthiscapitalistact？
Hecouldkeeponsellinghalf-a-yardoflinenatoldmarketprice；butthiswouldnothavetheeffectofdrivinghisopponentsfromthefieldandenlarginghowownmarket。Buthisneedofamarkethasincreasedinthesamemeasureinwhichhisproductivepowerhasextended。Themorepowerfulandcostlymeansofproductionthathehascalledintoexistenceenablehim，itistrue，tosellhiswaresmorecheaply，buttheycompelhimatthesametimetosellmorewares，togetcontrolofaverymuchgreatermarketforhiscommodities；consequently，thiscapitalistwillsellhishalf-yardoflinenmorecheaplythanhiscompetitors。
Butthecapitalistwillnotsellthewholeyardsocheaplyashiscompetitorssellthehalf-yard，althoughtheproductionofthewholeyardcostshimnomorethandoesthatofthehalf-yardtotheothers。Otherwise，hewouldmakenoextraprofit，andwouldgetbackinexchangeonlythecostofproduction。
Hemightobtainagreaterincomefromhavingsetinmotionalargercapital，butnotfromhavingmadeagreaterprofitonhiscapitalthantheothers。
Moreover，heattainstheobjectheisaimingatifhepriceshisgoodsonlyasmallpercentagelowerthanhiscompetitors。Hedrivesthemoffthefield，hewrestsfromthematleastpartoftheirmarket，byundersellingthem。
Andfinally，letusrememberthatthecurrentpricealwaysstandseitheraboveorbelowthecostofproduction，accordingasthesaleofacommoditytakesplaceinthefavorableorunfavorableperiodoftheindustry。Accordingasthemarketpriceoftheyardoflinenstandsaboveorbelowitsformercostofproduction，willthepercentagevaryatwhichthecapitalistwhohasmadeuseofthenewandmorefaithfulmeansofproductionsellabovehisrealcostofproduction。
Buttheprivilegeofourcapitalistisnotoflongduration。Othercompetingcapitalistsintroducethesamemachines，thesamedivisionoflabor，andintroducethemuponthesameorevenuponagreaterscale。Andfinallythisintroductionbecomessouniversalthatthepriceofthelinenislowerednotonlybelowitsold，butevenbelowitsnewcostofproduction。
Thecapitaliststhereforefindthemselves，intheirmutualrelations，inthesamesituationinwhichtheywerebeforetheintroductionofthenewmeansofproduction；andiftheyarebythesemeansenabledtoofferdoubletheproductattheoldprice，theyarenowforcedtofurnishdoubletheproductforlessthantheoldprice。Havingarrivedatthenewpoint，thenewcostofproduction，thebattleforsupremacyinthemarkethastobefoughtoutanew。Givenmoredivisionoflaborandmoremachinery，andthereresultsagreaterscaleuponwhichdivisionoflaborandmachineryareexploited。Andcompetitionagainbringsthesamereactionagainstthisresult。
WageLabourandCapital——Chapter9KarlMarxWageLabourandCapitalEffectofCapitalistCompetitionontheCapitalistClasstheMiddleClassandtheWorkingClassWethusseehowthemethodofproductionandthemeansofproductionareconstantlyenlarged，revolutionized，howdivisionoflabornecessarilydrawsafteritgreaterdivisionoflabor，theemploymentofmachinerygreateremploymentofmachinery，workuponalargescaleworkuponastillgreaterscale。Thisisthelawthatcontinuallythrowscapitalistproductionoutofitsoldrutsandcompelscapitaltostrainevermoretheproductiveforcesoflaborfortheveryreasonthatithasalreadystrainedthem——
thelawthatgrantsitnorespite，andconstantlyshoutsinitsear：March！
march！Thisisnootherlawthanthatwhich，withintheperiodicalfluctuationsofcommerce，necessarilyadjuststhepriceofacommoditytoitscostofproduction。
Nomatterhowpowerfulthemeansofproductionwhichacapitalistmaybringintothefield，competitionwillmaketheiradoptiongeneral；andfromthemomentthattheyhavebeengenerallyadopted，thesoleresultofthegreaterproductivenessofhiscapitalwillbethathemustfurnishatthesameprice，10，20，100timesasmuchasbefore。Butsincehemustfindamarketfor，perhaps，1，000timesasmuch，inordertooutweighthelowersellingpricebythegreaterquantityofthesale；sincenowamoreextensivesaleisnecessarynotonlytogainagreaterprofit，butalsoinordertoreplacethecostofproduction（theinstrumentofproductionitselfgrowsalwaysmorecostly，aswehaveseen），andsincethismoreextensivesalehasbecomeaquestionoflifeanddeathnotonlyforhim，butalsoforhisrivals，theoldstrugglemustbeginagain，anditisallthemoreviolentthemorepowerfulthemeansofproductionalreadyinventedare。Thedivisionoflaborandtheapplicationofmachinerywillthereforetakeafreshstart，anduponanevengreaterscale。
Whateverbethepowerofthemeansofproductionwhichareemployed，competitionseekstorobcapitalofthegoldenfruitsofthispowerbyreducingthepriceofcommoditiestothecostofproduction；inthesamemeasureinwhichproductionischeapened-i。e。，inthesamemeasureinwhichmorecanbeproducedwiththesameamountoflabor——itcompelsbyalawwhichisirresistibleastillgreatercheapeningofproduction，thesaleofevergreatermassesofproductforsmallerprices。Thusthecapitalistwillhavegainednothingmorebyhiseffortsthantheobligationtofurnishagreaterproductinthesamelabor-time；inaword，moredifficultconditionsfortheprofitableemploymentofhiscapital。Whilecompetition，therefore，constantlypursueshimwithitslawofthecostofproductionandturnsagainsthimselfeveryweaponthatheforgesagainsthisrivals，thecapitalistcontinuallyseekstogetthebestofcompetitionbyrestlesslyintroducingfurthersubdivisionoflaborandnewmachines，which，thoughmoreexpensive，enablehimtoproducemorecheaply，insteadofwaitinguntilthenewmachinesshallhavebeenrenderedobsoletebycompetition。
Ifwenowconceivethisfeverishagitationasitoperatesinthemarketofthewholeworld，weshallbeinapositiontocomprehendhowthegrowth，accumulation，andconcentrationofcapitalbringintheirtrainanevermoredetailedsubdivisionoflabor，anevergreaterimprovementofoldmachines，andaconstantapplicationofnewmachine——aprocesswhichgoesonuninterruptedly，withfeverishhaste，anduponanevermoregiganticscale。
Butwhateffectdotheseconditions，whichareinseparablefromthegrowthofproductivecapital，haveuponthedeterminationofwages？
Thegreaterdivisionoflaborenablesonelaborertoaccomplishtheworkoffive，10，or20laborers；itthereforeincreasescompetitionamongthelaborersfivefold，tenfold，ortwentyfold。Thelaborerscompetenotonlybysellingthemselvesonecheaperthantheother，butalsobyonedoingtheworkoffive，10，or20；andtheyareforcedtocompeteinthismannerbythedivisionoflabor，whichisintroducedandsteadilyimprovedbycapital。
Furthermore，tothesamedegreeinwhichthedivisionoflaborincreases，isthelaborsimplified。Thespecialskillofthelaborerbecomesworthless。
Hebecomestransformedintoasimplemonotonousforceofproduction，withneitherphysicalnormentalelasticity。Hisworkbecomesaccessibletoall；thereforecompetitorspressuponhimfromallsides。Moreover，itmustberememberedthatthemoresimple，themoreeasilylearnedtheworkis，somuchthelessisitscosttoproduction，theexpenseofitsacquisition，ndsomuchthelowermustthewagessink——for，likethepriceofanyothercommodity，theyaredeterminedbythecostofproduction。Therefore，inthesamemannerinwhichlaborbecomesmoreunsatisfactory，morerepulsive，docompetitionincreaseandwagesdecrease。
Thelaborerseekstomaintainthetotalofhiswagesforagiventimebyperformingmorelabor，eitherbyworkingagreatnumberofhours，orbyaccomplishingmoreinthesamenumberofhours。Thus，urgedonbywant，hehimselfmultipliesthedisastrouseffectsofdivisionoflabor。Theresultis：themoreheworks，thelesswageshereceives。Andforthissimplereason：themoreheworks，themorehecompetesagainsthisfellowworkmen，themorehecompelsthemtocompeteagainsthim，andtoofferthemselvesonthesamewretchedconditionsashedoes；sothat，inthelastanalysis，hecompetesagainsthimselfasamemberoftheworkingclass。
Machineryproducesthesameeffects，butuponamuchlargerscale。Itsupplantsskilledlaborersbyunskilled，menbywomen，adultsbychildren；
wherenewlyintroduced，itthrowsworkersuponthestreetsingreatmasses；
andasitbecomesmorehighlydevelopedandmoreproductiveitdiscardstheminadditionalthoughsmallernumbers。
Wehavehastilysketchedinbroadoutlinestheindustrialwasofcapitalistsamongthemselves。Thiswarhasthepeculiaritythatthebattlesinitarewonlessbyrecruitingthanbydischargingthearmyofworkers。Thegenerals（thecapitalists）viewithoneanotherastowhoandischargethegreatestnumberofindustrialsoldiers。
Theeconomiststellus，tobesure，thatthoselaborerswhohavebeenrenderedsuperfluousbymachineryfindnewvenuesofemployment。Theydarenotassertdirectlythatthesamelaborersthathavebeendischargedfindsituationsinnewbranchesoflabor。Factscryouttooloudlyagainstthislie。Strictlyspeaking，theyonlymaintainthatnewmeansofemploymentwillbefoundforothersectionsoftheworkingclass；forexample，forthatportionoftheyounggenerationoflaborerswhowereabouttoenteruponthatbranchofindustrywhichhadjustbeenabolished。Ofcourse，thisisagreatsatisfactiontothedisabledlaborers。TherewillbenolackoffreshexploitablebloodandmusclefortheMessrs。Capitalists——thedeadmayburytheirdead。Thisconsolationseemstobeintendedmoreforthecomfortofthecapitaliststhemselvesthantheirlaborers。
Ifthewholeclassofthewage-laborerweretobeannihilatedbymachinery，howterriblethatwouldbeforcapital，which，withoutwage-labor，ceasestobecapital！
Butevenifweassumethatallwhoaredirectlyforcedoutofemploymentbymachinery，aswellasalloftherisinggenerationwhowerewaitingforachanceofemploymentinthesamebranchofindustry，doactuallyfindsomenewemployment——arewetobelievethatthisnewemploymentwillpayashighwagesasdidtheonetheyhavelost？Ifitdid，itwouldbeincontradictiontothelawsofpoliticaleconomy。Wehaveseenhowmodernindustryalwaystendstothesubstitutionofthesimplerandmoresubordinateemploymentsforthehigherandmorecomplexones。How，then，couldamassofworkersthrownoutofonebranchofindustrybymachineryfindrefugeinanotherbranch，unlesstheyweretobepaidmorepoorly？
Anexceptiontothelawhasbeenadduced，namely，theworkerswhoareemployedinthemanufactureofmachineryitself。Assoonasthereisinindustryagreaterdemandforandagreaterconsumptionofmachinery，itissaidthatthenumberofmachinesmustnecessarilyincrease；consequently，also，themanufactureofmachines；consequently，also，theemploymentofworkersinmachinemanufacture；——andtheworkersemployedinthisbranchofindustryareskilled，eveneducated，workers。
Sincetheyear1840thisassertion，whichevenbeforethatdatewasonlyhalf-true，haslostallsemblanceoftruth；forthemostdiversemachinesarenowappliedtothemanufactureofthemachinesthemselvesonquiteasextensiveascaleasinthemanufactureofcottonyarn，andthelaborersemployedinmachinefactoriescanbutplaytheroleofverystupidmachinesalongsideofthehighlyingeniousmachines。
Butinplaceofthemanwhohasbeendismissedbythemachine，thefactorymayemploy，perhaps，threechildrenandonewoman！Andmustnotthewagesofthemanhavepreviouslysufficedforthethreechildrenandonewoman？
Mustnottheminimumwageshavesufficedforthepreservationandpropagationoftherace？What，then，dothesebelovedbourgeoisphrasesprove？Nothingmorethanthatnowfourtimesasmanyworkers’livesareusedupastherewerepreviously，inordertoobtainthelivelihoodofoneworkingfamily。
Tosumup：themoreproductivecapitalgrows，themoreitextendsthedivisionoflaborandtheapplicationofmachinery；themorethedivisionoflaborandtheapplicationofmachineryextend，themoredoescompetitionextendamongtheworkers，themoredotheirwagesshrinktogether。
Inaddition，theworkingclassisalsorecruitedfromthehigherstrataofsociety；amassofsmallbusinessmenandofpeoplelivingupontheinterestoftheircapitalsisprecipitatedintoheranksoftheworkingclass，andtheywillhavenothingelsetodothantostretchouttheirarmsalongsideofthearmsoftheworkers。Thustheforestofoutstretchedarms，beggingforwork，growseverthicker，whilethearmsthemselvesgroweveryleaner。
Itisevidentthatthesmallmanufacturercannotsurviveinastruggleinwhichthefirstconditionofsuccessisproductionuponanevergreaterscale。Itisevidentthatthesmallmanufacturersandtherebyincreasingthenumberofcandidatesfortheproletariat——allthisrequiresnofurtherelucidation。
Finally，inthesamemeasureinwhichthecapitalistsarecompelled，bythemovementdescribedabove，toexploitthealreadyexistinggiganticmeansofproductiononanever-increasingscale，andforthispurposetosetinmotionallthemainspringsofcredit，inthesamemeasuredotheyincreasetheindustrialearthquakes，inthemidstofwhichthecommercialworldcanpreserveitselfonlybysacrificingaportionofitswealth，itsproducts，andevenitsforcesofproduction，tothegodsofthelowerworld——inshort，thecrisesincrease。Theybecomemorefrequentandmoreviolent，iffornootherreason，thanforthisalone，thatinthesamemeasureinwhichthemassofproductsgrows，andtheretheneedsforextensivemarkets，inthesamemeasuredoestheworldmarketshrinkevermore，andeverfewermarketsremaintobeexploited，sinceeverypreviouscrisishassubjectedtothecommerceoftheworldahithertounconqueredorbutsuperficiallyexploitedmarket。
Butcapitalnotonlylivesuponlabor。Likeamaster，atoncedistinguishedandbarbarous，itdragswithitintoitsgravethecorpsesofitsslaves，wholehecatombsofworkers，whoperishinthecrises。
Wethusseethatifcapitalgrowsrapidly，competitionamongtheworkersgrowswithevengreaterrapidity——i。e。，themeansofemploymentandsubsistencefortheworkingclassdecreaseinproportionevenmorerapidly；but，thisnotwithstanding，therapidgrowthofcapitalisthemostfavorableconditionforwage-labor。