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Constant and variable capital

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2504:(varies) within the production process, as the worker can produce value over and above what he needs to live (the "necessary labor time"), which is paid in wages. As the worker produces more than he is paid in wages, he thus creates new value. Although most commentaries on Marx do not acknowledge this, these changes could be both positive or negative. A misapplication of labour, or the devaluation of types of labour activity by the market can mean the loss of part of the capital invested, or all of it. However, Marx does generally assume that labour will accomplish the 2233: 153: 2400:). The latter distinction corresponds to the very common distinction in economics between fixed inputs (and costs) and variable inputs (and costs). It distinguishes inputs from the point of view of their user (the capitalist), in terms of the degree of flexibility that the user has in using them. On the other hand, constant capital refers to the non-human inputs into production, while variable capital refers to the human input (the hiring of 36: 2257: 2245: 2545:
argues that "Essentially, Marx reached the result that the means of production cannot generate surplus value by confusing depreciation, or the loss of value by a machine, with value creation". His argument is, that a machine can add value to new output in excess of the value of economic depreciation
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The flow value divided by the stock value provides a measure of the number of rotations of the stock (the speed of turnover or turnover time) in an accounting period. It is strongly related to the actual depreciation rate of fixed capital. Alternatively, the stock value divided by the flow value is
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Keen further argues that Marx speculated that machines could have a use-value greater than their exchange-value, much like labor. Keen argues that though Marx did not develop this point, if it was developed then this would mean that the amount of value a machine loses in depreciation will be less
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If workers receive a subsistence wage, and if the working day exhausts the capacity to labor, then it could be argued that in a day a worker “depreciates” by an amount equivalent to the subsistence wage—the exchange-value of labor power. However this depreciation is not the limit of the amount of
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Another argument is that Marx's theory does not account for things such as time. For example, yeast is added to crushed grapes to turn them into wine. No human labor is involved yet the value of the wine is higher than that of the grapes. Another example is that wine gains value as it ages, even
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to the new product by living labor. For example, if a machine that is used to make cars costs $ 1 million and it is used to make 10,000 cars before it is worn out and replaced, then each car would have $ 100 worth of that machine in it (constant capital involves both fixed costs and unit costs).
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Another clarification is that Marx may have used the terms fixed and variable capital to emphasize the idea that the input cost of compensation can be varied by the enterprise, which sets the compensation levels of its workers, whereas the price of the other input factors sold to the company is
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between people that is specific to certain historical conditions. Inanimate objects can only feature in value relations as tokens of prior human effort, since they are not social beings. Thus, it is not the machine with which new outputs are produced that itself adds value to those outputs, but
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An example of variable capital would be as follows: a worker is hired for $ 100 and uses $ 1000 of materials and components to create a product which is sold for $ 1300. This would be $ 1000 constant capital plus $ 100 variable capital plus $ 200 surplus value. The $ 200 surplus value was added
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It has also been argued that Marx's theory ignores time preference (the common preference for goods and services immediately rather than later). Workers generally prefer to be paid when their work is completed rather than when it is sold (which could be much later). For workers to be paid
2686:. Constant capital has both fixed and circulating components: for example, the fixed constant capital would include a factory and the machinery in it, while the circulating constant capital would include the raw materials used and the intermediate inputs produced by the factory. 2650:
of capital is broken as soon as living labour is withdrawn; then it becomes clear that the constant part of capital produces nothing, and declines in value. Because of its role as a traditional money commodity some individuals give a reference display of this fetish by seeing
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for constant capital inputs could change after they have been bought for use in production, but normally this cannot affect those inputs (having been withdrawn from the market for use in production), only the market valuation of the outputs created from those inputs.
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Variable capital is almost exclusively a component of circulating capital. However, the salaries of some "overhead" employees (who have long-term security from being fired or laid off) are in effect, fixed elements of variable capital.
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immediately, they must be given wages - thus their service has a value. It is argued that the labor theory of value would "have it both ways" - workers would receive the full future value of their product before it is actually sold.
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solely by the activity of the worker - of the $ 1100 investment, only the $ 100 variable capital expanded. The $ 1000 constant capital was transferred from the materials and components to the product and thus produced no new value.
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powers and characteristics which it does not truly have. Economists talk about the "productivity of capital" to describe the yield or return on capital, but capital itself "produces" nothing, people do that.
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period. Which measure is used depends on the purposes and assumptions of one's analysis, for example, whether one is interested in the unit-costs of output or in the rate of return on capital invested.
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According to some Marxists, the first two types of objection above cut to the heart of the main dispute between Marx and mainstream economic theory—their different conceptions of
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value that can be added by a worker in a day’s labor—the use-value of labor. Value added is unrelated to and greater than value lost; if it were not, there could be no surplus.
424: 394: 2381:(incidental expenses). Variable capital, by contrast, refers to the capital outlay on labour costs insofar as they represent workers' earnings, the sum total of wages. 214: 2496:. Marx argues that only living labour creates new value. The higher value of output, compared to input costs, is (other things being equal) attributable to the 2443:
The concept of "constant capital" is closely related to the concept of "real capital" which is used by Marx to distinguish physical capital goods from
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rather the people operating the machine who permit its value to be conserved and who operate the transfer of part of its value to the new outputs.
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devaluations or revaluations of types of assets in response to changing demand conditions, which are influenced by price inflation. In
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The faster the turnover of constant capital (i.e., the shorter the turnover time), other things being equal, the higher the rate of
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Max Gulker, "Coffee and Wine: The subjective theory of value at work", American Institute for Economic Research, 30 January 2018
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For Marx's critics, value, if it exists at all, is a technical feature of economic calculus or is simply another word for the
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as the only 'real' money, even in the current time when most money is lacking any substantial form whatsoever, even paper.
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though for Marx the aging process shouldn't add value. This would indicate value could arise from sources other than labor.
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and business accounts, for example, the change in the value of inventories held is adjusted for changes in their
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As noted above, the distinction between constant and variable capital overlaps with the distinction between
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than the value it contributes to output, allowing it to be a source of surplus value alongside labor.
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magnitude, i.e., the total value of raw materials and fixed means of production used up in an
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Marx calls the constant part of the capital "constant" because according to his
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Marx's Revenge: The Resurgence of Capitalism and the Death of Statist Socialism
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of living labor-power only. Variable capital is "variable" because its value
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charged. Keen uses an analogy with labor to demonstrate the problem:
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The concept of constant vs. variable capital contrasts with that of
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in use at a specific point in time. It can also be measured as a
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object that labor is not the only source of value-added goods.
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Their Morals and Ours: The class foundations of moral practice
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Debunking Economics; The Naked Emperor of the Social Sciences
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An Introduction to the Three Volumes of Karl Marx's Capital
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The Origin of the Family, Private Property and the State
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The particular fetish of the money commodity as capital
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of equipment and materials being used in production is
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Marxist Internet Archive: Glossary of Terms 2281: 175:The Condition of the Working Class in England 2450: 170:Economic and Philosophic Manuscripts of 1844 2923: 2909: 2861:"The Labour Theory of Value (an analysis)" 2808:Journal of the History of Economic Thought 2798: 2758: 2756: 2754: 2288: 2274: 315:Ideology and Ideological State Apparatuses 190:The Eighteenth Brumaire of Louis Bonaparte 120:Learn how and when to remove this message 2863:, Liberty International, 12 October 1988 2751: 2589:For Marx, however, economic value is a 27:Capital invested in means of production 14: 3150: 2433:what Marx called the "turnover time". 2412:Constant capital can be measured as a 1096:Socialism with Chinese characteristics 2904: 2891:Fixed Capital and Circulating Capital 2880:Constant Capital and Variable Capital 2859:Donald Ernsberger, Jarret Wollstein, 2009:Critique: Journal of Socialist Theory 385:Change the World Without Taking Power 2930: 2416:magnitude, i.e., the total value of 58:adding citations to reliable sources 29: 2570: 2539:, affecting the profit calculation. 2483: 2326:. 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2862: 2856: 2849: 2843: 2834: 2827: 2821: 2814:(1): 107–121. 2813: 2809: 2802: 2795: 2793: 2785: 2780: 2765: 2759: 2757: 2755: 2750: 2741: 2738: 2736: 2733: 2731: 2730:Surplus value 2728: 2726: 2723: 2721: 2718: 2716: 2713: 2711: 2708: 2706: 2703: 2701: 2698: 2697: 2691: 2687: 2685: 2681: 2680:fixed capital 2676: 2674: 2670: 2666: 2656: 2654: 2649: 2644: 2641: 2637: 2633: 2629: 2625: 2621: 2617: 2613: 2603: 2599: 2596: 2592: 2587: 2585: 2580: 2578: 2564: 2560: 2556: 2555: 2553: 2544: 2541: 2538: 2534: 2530: 2529: 2528: 2525: 2523: 2513: 2509: 2507: 2503: 2499: 2495: 2491: 2481: 2478: 2477:market prices 2473: 2470: 2466: 2462: 2458: 2448: 2446: 2441: 2439: 2434: 2430: 2427: 2423: 2419: 2415: 2405: 2403: 2399: 2395: 2394:David Ricardo 2391: 2387: 2382: 2380: 2376: 2372: 2368: 2364: 2359: 2357: 2353: 2349: 2345: 2341: 2337: 2333: 2329: 2325: 2322: 2318: 2314: 2310: 2306: 2302: 2291: 2286: 2284: 2279: 2277: 2272: 2271: 2269: 2268: 2263: 2258: 2253: 2251: 2241: 2239: 2229: 2227: 2224: 2223: 2222: 2221: 2214: 2211: 2209: 2206: 2202: 2199: 2198: 2197: 2194: 2192: 2189: 2187: 2184: 2180: 2177: 2175: 2172: 2170: 2169:Revolutionary 2167: 2165: 2162: 2160: 2157: 2155: 2152: 2150: 2149:Authoritarian 2147: 2146: 2145: 2142: 2140: 2137: 2135: 2132: 2128: 2125: 2123: 2120: 2119: 2118: 2115: 2113: 2110: 2108: 2105: 2103: 2100: 2098: 2095: 2093: 2090: 2088: 2085: 2083: 2080: 2078: 2075: 2073: 2070: 2068: 2065: 2064: 2058: 2057: 2050: 2047: 2045: 2042: 2040: 2037: 2035: 2032: 2030: 2027: 2025: 2022: 2020: 2017: 2015: 2012: 2010: 2007: 2005: 2002: 2000: 1997: 1995: 1992: 1990: 1987: 1986: 1980: 1979: 1972: 1969: 1967: 1964: 1962: 1959: 1957: 1954: 1952: 1951:Moufawad-Paul 1949: 1947: 1944: 1942: 1939: 1937: 1934: 1932: 1929: 1927: 1924: 1922: 1919: 1917: 1914: 1912: 1909: 1907: 1904: 1902: 1899: 1897: 1894: 1892: 1889: 1887: 1884: 1882: 1879: 1877: 1874: 1872: 1869: 1867: 1864: 1862: 1859: 1857: 1854: 1852: 1849: 1847: 1844: 1842: 1839: 1837: 1834: 1832: 1829: 1827: 1824: 1822: 1819: 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1402: 1399: 1397: 1394: 1392: 1389: 1387: 1384: 1382: 1379: 1377: 1374: 1372: 1369: 1367: 1364: 1362: 1359: 1357: 1354: 1352: 1349: 1347: 1344: 1342: 1339: 1337: 1334: 1332: 1329: 1327: 1324: 1322: 1319: 1317: 1314: 1312: 1309: 1307: 1304: 1302: 1299: 1297: 1294: 1292: 1289: 1287: 1284: 1282: 1279: 1277: 1274: 1272: 1269: 1267: 1264: 1262: 1259: 1257: 1254: 1252: 1249: 1247: 1244: 1242: 1239: 1237: 1234: 1232: 1229: 1227: 1224: 1222: 1219: 1217: 1214: 1212: 1209: 1207: 1204: 1202: 1199: 1197: 1194: 1192: 1189: 1187: 1184: 1182: 1179: 1177: 1174: 1172: 1169: 1167: 1164: 1162: 1159: 1157: 1154: 1152: 1149: 1147: 1144: 1142: 1139: 1137: 1134: 1132: 1129: 1127: 1124: 1122: 1119: 1118: 1115: 1110: 1109: 1102: 1099: 1097: 1094: 1092: 1089: 1087: 1084: 1082: 1079: 1077: 1074: 1072: 1069: 1067: 1064: 1062: 1061:Eurocommunism 1059: 1057: 1054: 1052: 1049: 1047: 1046:Austromarxism 1044: 1042: 1039: 1038: 1035: 1030: 1029: 1018: 1015: 1013: 1010: 1008: 1005: 1003: 1000: 998: 995: 993: 992:Communization 990: 988: 985: 983: 980: 979: 978: 977: 973: 972: 967: 966:Praxis School 964: 962: 959: 957: 954: 952: 949: 947: 944: 942: 939: 937: 934: 933: 932: 931: 928: 925: 924: 919: 916: 914: 911: 909: 906: 902: 899: 897: 894: 892: 889: 887: 884: 883: 882: 879: 877: 874: 873: 872: 871: 868: 865: 864: 856: 855: 848: 845: 843: 840: 838: 835: 833: 830: 828: 825: 823: 820: 818: 815: 813: 810: 808: 805: 803: 800: 798: 795: 793: 790: 788: 785: 784: 778: 777: 770: 767: 765: 762: 760: 757: 755: 752: 750: 747: 745: 742: 741: 738: 733: 732: 725: 724:Working class 722: 720: 717: 715: 712: 710: 707: 705: 702: 700: 697: 695: 692: 690: 687: 685: 682: 680: 677: 675: 672: 670: 667: 663: 660: 658: 655: 653: 650: 648: 645: 644: 643: 640: 638: 635: 633: 630: 628: 625: 623: 620: 618: 615: 613: 610: 608: 605: 603: 600: 598: 595: 594: 591: 586: 585: 578: 575: 573: 570: 568: 565: 563: 560: 558: 555: 553: 550: 546: 543: 541: 538: 537: 536: 533: 531: 528: 526: 523: 521: 518: 516: 513: 511: 508: 506: 505:Crisis theory 503: 500: 496: 493: 492: 489: 484: 483: 476: 473: 471: 468: 466: 463: 461: 458: 456: 453: 451: 448: 446: 443: 442: 439: 434: 433: 426: 423: 421: 418: 416: 413: 411: 408: 406: 403: 401: 398: 396: 393: 391: 388: 386: 383: 381: 378: 376: 373: 371: 368: 366: 363: 361: 358: 356: 353: 351: 348: 346: 343: 341: 338: 336: 333: 331: 328: 326: 323: 321: 318: 316: 313: 311: 308: 306: 303: 301: 298: 296: 293: 291: 288: 286: 283: 281: 278: 276: 273: 271: 268: 266: 263: 261: 258: 256: 253: 251: 248: 246: 243: 241: 238: 236: 233: 231: 228: 226: 223: 221: 218: 216: 213: 211: 208: 206: 203: 201: 198: 196: 193: 191: 188: 186: 183: 181: 178: 176: 173: 171: 168: 167: 164: 159: 158: 154: 150: 149: 146: 143: 142: 138: 134: 133: 124: 121: 113: 110:February 2009 102: 99: 95: 92: 88: 85: 81: 78: 74: 71: â€“  70: 66: 65:Find sources: 59: 55: 49: 48: 43:This article 41: 37: 32: 31: 19: 3084:(short) vs. 3011:Intellectual 2855: 2842: 2833: 2825: 2820: 2811: 2807: 2783: 2779: 2768:. Retrieved 2688: 2677: 2668: 2664: 2662: 2645: 2609: 2600: 2588: 2581: 2574: 2550: 2536: 2526: 2522:value theory 2519: 2510: 2508:of capital. 2506:valorisation 2501: 2498:exploitation 2489: 2487: 2476: 2474: 2468: 2464: 2454: 2442: 2435: 2431: 2411: 2383: 2360: 2339: 2335: 2330:invested in 2319:and used in 2304: 2300: 2299: 2134:Municipalism 1946:Bhattacharya 1091:Situationist 1066:Instrumental 719:State theory 684:Immiseration 679:Human nature 669:Exploitation 499:accumulation 116: 107: 97: 90: 83: 76: 64: 52:Please help 47:verification 44: 3001:Information 2976:Educational 2957:Circulating 2897:, Chapter 8 2889:Karl Marx, 2886:, Chapter 8 2663:The ratio, 2628:reification 2494:labor power 2469:transferred 2408:Measurement 2402:labor power 2097:Communalism 1496:Wallerstein 1086:Revisionist 817:Film theory 797:Criminology 792:Archaeology 704:Proletariat 689:Imperialism 602:Bourgeoisie 577:Wage labour 470:Reification 265:On Practice 3152:Categories 3116:Fictitious 3099:analytical 3041:Reputation 3006:Intangible 2996:Individual 2770:2019-12-25 2746:References 2616:capitalism 2543:Steve Keen 2426:accounting 2396:and other 2332:production 2154:Democratic 2019:Mediations 1631:Przeworski 1571:Poulantzas 1421:Sivanandan 1376:Bettelheim 1276:Horkheimer 1271:MariĂĄtegui 1246:Pashukanis 1171:Liebknecht 1101:Wertkritik 1041:Analytical 901:Trotskyism 876:Autonomist 867:Structural 847:Philosophy 787:Aesthetics 572:Value-form 540:Capitalist 445:Alienation 438:Philosophy 195:Grundrisse 80:newspapers 3031:Political 2981:Financial 2931:Types of 2876:Karl Marx 2516:Criticism 2465:conserved 2375:buildings 2367:machinery 2317:Karl Marx 2201:Economism 2164:Reformist 2144:Socialism 2092:Communism 2072:Anarchism 1926:Coulthard 1851:McDonnell 1811:Screpanti 1721:Rowbotham 1586:Harnecker 1396:Althusser 1336:Deutscher 1176:Kollontai 1166:Luxemburg 1146:Plekhanov 1076:Nkrumaism 987:Classical 961:Political 886:Guevarism 842:Sociology 822:Geography 642:Democracy 590:Sociology 545:Socialist 510:Commodity 3132:Monopoly 3111:Variable 3106:Constant 3056:Symbolic 3026:Physical 2966:Cultural 2961:Floating 2947:Academic 2694:See also 2622:was for 2127:Old Left 2122:New Left 1989:Antipode 1983:Journals 1886:Heinrich 1861:Roediger 1856:Douzinas 1846:Hennessy 1801:Holloway 1716:Hartsock 1706:Eagleton 1691:Federici 1666:Bannerji 1641:Therborn 1621:RanciĂšre 1616:Easthope 1596:Anderson 1591:Altvater 1491:O'Connor 1486:MĂ©szĂĄros 1481:Guattari 1436:Thompson 1426:Miliband 1406:Williams 1391:Hobsbawm 1366:Emmanuel 1346:Beauvoir 1311:Lefebvre 1256:Benjamin 1221:Bukharin 1201:Zinoviev 1196:Grossman 1181:Bogdanov 1156:Connolly 1136:Lafargue 1081:Orthodox 1051:Centrist 1002:Leninism 997:Feminist 946:Humanist 927:Hegelian 455:Ideology 137:a series 135:Part of 3097:Marxist 3086:Patient 3075:By term 3066:Working 3061:Venture 3016:Natural 2940:By form 2933:capital 2630:of the 2620:capital 2502:changes 2328:capital 2321:Marxian 2226:Outline 2179:Utopian 1956:Srnicek 1941:Toscano 1936:Seymour 1891:Prashad 1841:Sankara 1836:Berardi 1821:Hampton 1796:Burawoy 1766:Panitch 1761:Haraway 1751:Cleaver 1736:Brenner 1701:Balibar 1656:Postone 1646:Losurdo 1576:Vattimo 1546:Gonzalo 1541:Jameson 1531:Parenti 1471:Liebman 1466:Guevara 1356:Nkrumah 1351:Sombart 1326:Padmore 1296:Kalecki 1291:Marcuse 1251:Bordiga 1236:Gramsci 1191:Trotsky 1151:Du Bois 1141:Kautsky 1017:Western 896:Titoism 781:Aspects 737:History 657:Radical 495:Capital 200:Capital 145:Marxism 94:scholar 3088:(long) 3082:Liquid 3051:Social 3046:Sexual 3036:Public 2648:fetish 2634:or of 2591:social 2438:profit 2344:German 2309:German 2174:Social 2159:Market 1961:Horvat 1916:Fisher 1911:Linera 1906:Lordon 1896:Kelley 1881:Marcos 1876:Ghandy 1866:Foster 1791:Fraser 1786:Wright 1776:Jessop 1771:Clarke 1756:Bishop 1746:Massey 1726:Mouffe 1676:Newton 1671:Spivak 1661:Rodney 1626:Berman 1581:Badiou 1561:Laclau 1556:Harvey 1551:Dussel 1511:Debord 1506:Tronti 1476:Heller 1461:Castro 1456:Berger 1441:Bauman 1431:Cabral 1416:Mandel 1411:Freire 1401:Hinton 1381:Draper 1361:Sweezy 1331:Sartre 1321:Adorno 1286:Brecht 1241:Galiev 1216:Korsch 1211:LukĂĄcs 1186:Stalin 1131:Morris 1126:Engels 1114:People 891:Maoism 812:Ethics 652:Soviet 375:Empire 96:  89:  82:  75:  67:  2991:Human 2986:Fixed 2893:, in 2882:, in 2804:(PDF) 2640:human 2584:price 2577:value 2461:value 2414:stock 2386:fixed 2356:value 1971:Saito 1966:Hamza 1831:ĆœiĆŸek 1816:TamĂĄs 1781:Davis 1741:Davis 1731:Geras 1696:Wolff 1681:Sakai 1636:Cohen 1611:Sison 1606:Vogel 1566:Bahro 1536:Negri 1526:Nairn 1451:Kosik 1446:Fanon 1386:Jones 1341:Hoxha 1316:James 1301:Fromm 1231:Serge 1206:Bloch 1161:Lenin 982:Black 607:Class 101:JSTOR 87:books 2682:and 2653:gold 2646:The 2624:Marx 2467:and 2422:flow 2388:vs. 2373:and 2371:land 1931:Malm 1901:Dean 1871:West 1826:Cano 1806:Rose 1711:Kurz 1686:Wood 1651:Ture 1601:Löwy 1521:Hall 1516:Amin 1501:Mies 1371:Hill 1281:Dutt 1266:Basu 1121:Marx 1012:Post 974:Both 956:Open 73:news 1306:Cox 1261:Mao 1007:Neo 56:by 3154:: 2878:, 2812:15 2810:. 2806:. 2791:^ 2753:^ 2675:. 2579:. 2447:. 2440:. 2369:, 2365:, 2358:. 2346:: 2342:; 2311:: 2307:; 1921:Li 1226:Ho 139:on 2959:/ 2924:e 2917:t 2910:v 2773:. 2669:v 2667:/ 2665:c 2490:v 2340:v 2338:( 2305:c 2303:( 2289:e 2282:t 2275:v 501:) 497:( 123:) 117:( 112:) 108:( 98:· 91:· 84:· 77:· 50:. 20:)

Index

Constant capital

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"Constant and variable capital"
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a series
Marxism
Karl Marx and Friedrich Engels
Theoretical works
Economic and Philosophic Manuscripts of 1844
The Condition of the Working Class in England
The German Ideology
The Communist Manifesto
The Eighteenth Brumaire of Louis Bonaparte
Grundrisse
Capital
Critique of the Gotha Programme
Dialectics of Nature
The Origin of the Family, Private Property and the State
What Is to Be Done?
The Accumulation of Capital
Philosophical Notebooks
Terrorism and Communism

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