KarlMarxWageLabourandCapitalIntroductiontoKarlMarx’sWageLaborandCapitalbyFredrickEngelsThispamphletfirstappearedintheformofaseriesofleadingarticlesintheNeueRheinischeZeitung，beginningonApril4th，1849。ThetextismadeupoffromlecturesdeliveredbyMarxbeforetheGermanWorkingmen’sClubofBrusselsin1847。Theserieswasnevercompleted。Thepromise"tobecontinued"，attheendoftheeditorialinNumber269ofthenewspaper，remainedunfulfilledinconsequenceoftheprecipitouseventsofthattime：
theinvasionofHungarybytheRussians[Tsaristtroopsinvadedhungaryin1849tokeeptheAustrianHapsburgdynastyinpower]，andtheuprisingsinDresden，Iserlohn，Elberfeld，thePalatinate，andinBaden[SpontaneousuprisingsinGermanyinMay-July1849，supportingtheImperialConstituionwhichwerecrushedinmid-July]，whichledtothesuppressionofthepaperonMay19th，1849。AndamongthepapersleftbyMarxnomanuscriptofanycontinuationofthesearticleshasbeenfound。
"Wage-LaborandCapital"hasappearedasanindependentpublicationinseveraleditions，thelastofwhichwasissuedbytheSwissCo-operativePrintingAssociation，inHottingen-Zurich，in1884。Hitherto，theseveraleditionshavecontainedtheexactwordingoftheoriginalarticles。Butsinceatleast10，000copiesofthepresenteditionaretobecirculatedasapropagandatract，thequestionnecessarilyforceditselfuponme，wouldMarxhimself，underthesecircumstance，haveapprovedofanunalteredliteralreproductionoftheoriginal？
Marx，inthe’40s，hadnotyetcompletedhiscriticismofpoliticaleconomy。Thiswasnotdoneuntiltowardtheendofthefifties。Consequently，suchofhiswritingsaswerepublishedbeforethefirstinstallmentofhisCritiqueofPoliticalEconomywasfinished，deviateinsomepointsfromthosewrittenafter1859，andcontainexpressionsandwholesentenceswhich，viewedfromthestandpointofhislaterwritings，appearinexact，andevenincorrect。Now，itgoeswithoutsayingthatinordinaryeditions，intendedforthepublicingeneral，thisearlierstandpoint，asapartoftheintellectualdevelopmentoftheauthor，hasitsplace；thattheauthoraswellasthepublic，hasanindisputablerighttoanunalteredreprintoftheseolderwritings。Insuchacase，Iwouldnothavedreamedofchangingasinglewordinit。Butitisotherwisewhentheeditionisdestinedalmostexclusivelyforthepurposeofpropaganda。Insuchacase，Marxhimselfwouldunquestionablyhavebroughttheoldwork，datingfrom1849，intoharmonywithhisnewpointofview，andIfeelsurethatIamactinginhisspiritwhenIinsertinthiseditionthefewchangesandadditionswhicharenecessaryinordertoattainthisobjectinallessentialpoint。
Therefore，Isaytothereaderatonce：thispamphletisnotasMarxwroteitin1849，butapproximatelyasMarxwouldhavewrittenitin1891。
Moreover，somanycopiesoftheoriginaltextareincirculation，thatthesewillsufficeuntilIcanpublishitagainunalteredinacompleteeditionofMarx’sworks，toappearatsomefuturetime。
Myalterationscentreaboutonepoint。Accordingtotheoriginalreading，theworkersellshislaborforwages，whichhereceivesfromthecapitalist；accordingtothepresenttext，hesellshislabor-power。
Andforthischange，Imustrenderanexplanation：totheworkers，inorderthattheymayunderstandthatwearenotquibblingorword-juggling，butaredealingherewithoneofthemostimportantpointsinthewholerangeofpoliticaleconomy；tothebourgeois，inorderthattheymayconvincethemselveshowgreatlytheuneducatedworkers，whocanbeeasilymadetograspthemostdifficulteconomicanalyses，exceloursupercilious"cultured"
folk，forwhomsuchticklishproblemsremaininsolubletheirwholelifelong。
Classicalpoliticaleconomy[1]borrowedfromtheindustrialpracticethecurrentnotionofthemanufacturer，thathebuysandpaysforthelaborofhisemployees。Thisconceptionhadbeenquiteserviceableforthebusinesspurposesofthemanufacturer，hisbookkeepingandpricecalculation。Butnaivelycarriedoverintopoliticaleconomy，itthereproducedtrulywonderfulerrorsandconfusions。
Politicaleconomyfindsitanestablishedfactthatthepricesofallcommodities，amongthemthepriceofthecommoditywhichitcalls"labor"，continuallychange；thattheyriseandfallinconsequenceofthemostdiversecircumstances，whichoftenhavenoconnectionwhatsoeverwiththeproductionofthecommoditiesthemselves，sothatpricesappeartobedetermined，asarule，bypurechance。Assoon，therefore，aspoliticaleconomysteppedforthasascience，itwasoneofitsfirsttaskstosearchforthelawthathiditselfbehindthischance，whichapparentlydeterminedthepricesofcommodities，andwhichinrealitycontrolledthisverychance。Amongthepricesofcommodities，fluctuatingandoscillating，nowupward，nowdownward，thefixedcentralpointwassearchedforaroundwhichthesefluctuationsandoscillationsweretakingplace。Inshort，startingfromthepriceofcommodities，politicaleconomysoughtforthevalueofcommoditiesastheregulatinglaw，bymeansofwhichallpricefluctuationscouldbeexplained，andtowhichtheycouldallbereducedinthelastresort。
Andso，classicalpoliticaleconomyfoundthatthevalueofacommoditywasdeterminedbythelaborincorporatedinitandrequisitetoitsproduction。
Withthisexplanation，itwassatisfied。Andwe，too，may，forthepresent，stopatthispoint。But，toavoidmisconceptions，Iwillremindthereaderthattodaythisexplanationhasbecomewhollyinadequate。Marxwasthefirsttoinvestigatethoroughlyintothevalue-formingqualityoflaborandtodiscoverthatnotalllaborwhichisapparently，orevenreally，necessarytotheproductionofacommodity，impartsunderallcircumstancestothiscommodityamagnitudeofvaluecorrespondingtothequantityoflaborusedup。If，therefore，wesaytodayinshort，witheconomistslikeRicardo，thatthevalueofacommodityisdeterminedbythelabornecessarytoitsproduction，wealwaysimplythereservationsandrestrictionsmadebyMarx。Thusmuchforourpresentpurpose；furtherinformationcanbefoundinMarx’sCritiqueofPoliticalEconomy，whichappearedin1859，andinthefirstvolumeofCapital。
But，assoonastheeconomistsappliedthisdeterminationofvaluebylabortothecommodity"labor"，theyfellfromonecontradictionintoanother。
Howisthevalueof"labor"determined？Bythenecessarylaborembodiedinit。Buthowmuchlaborisembodiedinthelaborofalaborerofadayaweek，amonth，ayear。Iflaboristhemeasureofallvalues，wecanexpressthe"valueoflabor"onlyinlabor。Butweknowabsolutelynothingaboutthevalueofanhour’slabor，ifallthatweknowaboutitisthatitisequaltoonehour’slabor。So，thereby，wehavenotadvancedonehair’sbreadthnearerourgoal；weareconstantlyturningaboutinacircle。
Classicaleconomics，therefore，essayedanotherturn。Itsaid：thevalueofacommodityisequaltoitscostofproduction。But，whatisthecostofproductionof"labor"？Inordertoanswerthisquestion，theeconomistsareforcedtostrainlogicjustalittle。Insteadofinvestigatingthecostofproductionoflaboritself，which，unfortunately，cannotbeascertained，theynowinvestigatethecostofproductionofthelaborer。Andthislattercanbeascertained。Itchangesaccordingtotimeandcircumstances，butforagivenconditionofsociety，inagivenlocality，andinagivenbranchofproduction，it，too，isgiven，atleastwithinquitenarrowlimits。
Welivetodayundertheregimeofcapitalistproduction，underwhichalargeandsteadilygrowingclassofthepopulationcanliveonlyontheconditionthatitworksfortheownersofthemeansofproduction——tools，machines，rawmaterials，andmeansofsubsistence——inreturnforwages。
Onthebasisofthismodeofproduction，thelaborer’scostofproductionconsistsofthesumofthemeansofsubsistence（ortheirpriceinmoney）
whichontheaveragearerequisitetoenablehimtowork，tomaintaininhimthiscapacityforwork，andtoreplacehimathisdeparture，byreasonofage，sickness，ordeath，withanotherlaborer——thatistosay，topropagatetheworkingclassinrequirednumbers。
Letusassumethatthemoneypriceofthesemeansofsubsistenceaverages3shillingsaday。Ourlaborergets，therefore，adailywageof3shillingsfromhisemployer。Forthis，thecapitalistletshimwork，say，12hoursaday。Ourcapitalist，moreover，calculatessomewhatinthefollowingfashion：
Letusassumethatourlaborer（amachinist）hastomakeapartofamachinewhichhefinishesinoneday。Therawmaterial（ironandbrassinthenecessarypreparedform）costs20shillings。Theconsumptionofcoalbythesteam-engine，thewear-and-tearofthisengineitself，oftheturning-lathe，andoftheothertoolswithwhichourlaborerworks，represent，foronedayandonelaborer，avalueof1shilling。Thewagesforonedayare，accordingtoourassumption，3shillings。Thismakesatotalof24shillingsforourpieceofamachine。
But，thecapitalistcalculatesthat，onanaverage，hewillreceiveforitapriceof27shillingsfromhiscustomers，or3shillingsoverandabovehisoutlay。
Whencedothey3shillingspocketedbythecapitalistcome？Accordingtotheassertionofclassicalpoliticaleconomy，commoditiesareinthelongrunsoldattheirvalues，thatis，theyaresoldatpriceswhichcorrespondtothenecessaryquantitiesoflaborcontainedinthem。Theaveragepriceofourpartofamachine——27shillings——wouldthereforeequalitsvalue，i。e。，equaltheamountoflaborembodiedinit。But，ofthese27shillings，21shillingswerevalueswerevaluesalreadyexistingbeforethemachinistbegantowork；20shillingswerecontainedintherawmaterial，1shillinginthefuelconsumedduringtheworkandinthemachinesandtoolsusedintheprocessandreducedintheirefficiencytothevalueofthisamount。
Thereremains6shillings，whichhavebeenaddedtothevalueoftherawmaterial。But，accordingtothesuppositionofoureconomists，themselves，these6shillingscanariseonlyfromthelaboraddedtotherawmaterialbythelaborer。His12hours’laborhascreated，accordingtothis，anewvalueof6shillings。Therefore，thevalueofhis12hours’laborwouldbeequivalentto6shillings。Sowehaveatlastdiscoveredwhatthe"valueoflabor"is。
"Holdonthere！"criesourmachinist。"Sixshillings？ButIhavereceivedonly3shillings！Mycapitalistswearshighanddaythatthevalueofmy12hours’laborisnomorethan3shillings，andifIweretodemand6，he’dlaughatme。Whatkindofastoryisthat？"
Ifbeforethiswegotwithourvalueoflaborintoaviciouscircle，wenowsurelyhavedrivenstraightintoaninsolublecontradiction。Wesearchedforthevalueoflabor，andwefoundmorethanwecanuse。Forthelaborer，thevalueofthe12hours’laboris3shillings；forthecapitalist，itis6shillings，ofwhichhepaystheworkingman3shillingsaswages，andpocketstheremaining3shillinghimself。Accordingtothis，laborhasnotonebuttwovalues，and，moreover，twoverydifferentvalues！
Assoonaswereducethevalues，nowexpressedinmoney，tolabor-time，thecontradictionbecomesevenmoreabsurd。Bythe12hours’labor，anewvalueof6shillingsiscreated。Therefore，in6hours，thenewvaluecreatedequals3shilling——themountwhichthelaborerreceivesfor12hours’
labor。For12hours’labor，theworkingmanreceives，asanequivalent，theproductof6hours’labor。Weare，thus，forcedtooneoftwoconclusions：
eitherlaborhastwovalues，oneofwhichistwiceaslargeastheother，or12equals6！Inbothcases，wegetpureabsurdities。Turnandtwistaswemay，wewillnotgetoutofthiscontradictionaslongaswespeakofthebuyingandsellingof"labor"andofthe"valueoflabor"。Andjustsoithappenedtothepoliticaleconomists。Thelastoffshootofclassicalpoliticaleconomy——theRicardianschool——waslargelywreckedontheinsolubilityofthiscontradiction。Classicalpoliticaleconomyhadrunitselfintoablindalley。ThemanwhodiscoveredthewayoutofthisblindalleywasKarlMarx。
Whattheeconomistshadconsideredasthecostofproductionof"labor"
wasreallythecostofproduction，notof"labor"，butofthelivinglaborerhimself。Andwhatthislaborersoldtothecapitalistwasnothislabor。
"Sosoonashislaborreallybegins，"saysMarx，"itceasestobelongtohim，andthereforecannolongerbesoldbyhim。"
Atthemost，hecouldsellhisfuturelabor——i。e。，assumetheobligationofexecutingacertainpieceofworkinacertaintime。But，inthisway，hedoesnotselllabor（whichwouldfirsthavetobeperformed），butnotforastipulatedpaymentheplaceshislabor-poweratthedisposalofthecapitalistforacertaintime（incaseoftime-wages），orfortheperformanceofacertaintask（incaseofpiece-wages）。Hehiresoutorsellshislabor-power。Butthislabor-powerhasgrownupwithhispersonandisinseparablefromit。Itscostofproduction，therefore，coincideswithhisowncostofproduction；whattheeconomistcalledthecostofproductionoflaborisreallythecostofproductionofthelaborer，andtherewithofhislabor-power。And，thus，wecanalsogobackfromthecostofproductionoflabor-powertothevalueoflabor-power，anddeterminethequantityofsociallaborthatisrequiredfortheproductionofalabor-powerofagivenquantity，asMarxhasdoneinthechapteron"TheBuyingandSellingofLaborPower"。[Capital，Vol。I]
Nowwhattakesplaceaftertheworkerhassoldhislabor-power，i。e。，afterhehasplacedhislabor-poweratthedisposalofthecapitalistforstipulated-wages——whethertime-wagesorpiece-wages？Thecapitalisttakesthelaborerintohisworkshoporfactory，whereallthearticlesrequiredfortheworkcanbefound——rawmaterials，auxiliarymaterials（coal，dyestuffs，etc。），tools，andmachines。Here，theworkerbeginstowork。
Hisdailywagesare，asabove，3shillings，nditmakesnodifferencewhetherheearnsthemasday-wagesorpiece-wages。Weagainassumethatin12hourstheworkeraddsbyhislaboranewvalueof6shillingstothevalueoftherawmaterialsconsumed，whichnewvaluethecapitalistrealizesbythesaleofthefinishedpieceofwork。Outofthisnewvalue，hepaystheworkerhis3shillings，andtheremaining3shillingshekeepsforhimself。If，now，thelaborercreatesin12hoursavalueof6shilling，in6hourshecreatesavalueof3shillings。Consequently，afterworking6hoursforthecapitalist，thelaborerhasreturnedtohimtheequivalentofthe3shillingsreceivedaswages。After6hours’work，botharequits，neitheroneowingapennytotheother。
"Holdonthere！"nowcriesoutthecapitalist。"Ihavehiredthelaborerforawholeday，for12hours。But6hoursareonlyhalf-a-day。Soworkalonglivelythereuntiltheother6hoursareatanend——onlythenwillwebeeven。"And，infact，thelaborerhastosubmittotheconditionsofthecontractuponwhichheenteredof"hisownfreewill"，andaccordingtowhichheboundhimselftowork12wholehoursforaproductoflaborwhichcostonly6hours’labor。
Similarlywithpiece-wages。Letussupposethatin12hoursourworkermakes12commodities。Eachofthesecostsashillinginrawmaterialsandwear-and-tear，andissoldfor2。5shillings。Onourformerassumption，thecapitalistgivesthelaborer。25ofashillingforeachpiece，whichmakesatotalof3shillingsfor12pieces。Toearnthis，theworkerrequires12hours。Thecapitalistreceives30shillingsforthe12pieces；deducting24shillingsforrawmaterialsandwear-and-tear，thereremains6shillings，ofwhichhepays3shillingsinwagesandpocketstheremaining3。Justasbefore！Here，also，theworkerlabors6hoursforhimself——i。e。，toreplacehiswages（half-an-hourineachofthe12hours），and6hoursforthecapitalist。
Therockuponwhichthebesteconomistswerestranded，aslongastheystartedoutfromthevalueoflabor，vanishesassoonaswemakeourstarting-pointthevalueoflabor-power。Labor-poweris，inourpresent-daycapitalistsociety，acommoditylikeeveryothercommodity，butyetaverypeculiarcommodity。Ithas，namely，thepeculiarityofbeingavalue-creatingforce，thesourceofvalue，and，moreover，whenproperlytreated，thesourceofmorevaluethanitpossessesitself。Inthepresentstateofproduction，humanlabor-powernotonlyproducesinadayagreatervaluethanititselfpossessesandcosts；butwitheachnewscientificdiscovery，witheachnewtechnicalinvention，therealsorisesthesurplusofitsdailyproductionoveritsdailycost，whileasaconsequencetherediminishesthatpartoftheworking-dayinwhichthelaborerproducestheequivalentofhisday’swages，and，ontheotherhand，lengthensthatpartoftheworking-dayinwhichhemustpresentlaborgratistothecapitalist。
Andthisistheeconomicconstitutionofourentiremodernsociety：
theworkingclassaloneproducesallvalues。Forvalueisonlyanotherexpressionforlabor，thatexpression，namely，bywhichisdesignated，inourcapitalistsocietyoftoday，theamountofsociallynecessarylaborembodiedinaparticularcommodity。But，thesevaluesproducedbytheworkersdonotbelongtotheworkers。Theybelongtotheownersoftherawmaterials，machines，tools，andmoney，whichenablethemtobuythelabor-poweroftheworkingclass。Hence，theworkingclassgetsbackonlyapartoftheentiremassofproductsproducedbyit。And，aswehavejustseen，theotherportion，whichthecapitalistclassretains，andwhichithastoshare，atmost，onlywiththelandlordclass，isincreasingwitheverynewdiscoveryandinvention，whilethesharewhichfallstotheworkingclass（percapita）risesbutlittleandveryslowly，ornotatall，andundercertainconditionsitmayevenfall。
But，thesediscoveriesandinventionswhichsupplantoneanotherwithever-increasingspeed，thisproductivenessofhumanlaborwhichincreasesfromdaytodaytounheard-ofproportions，atlastgivesrisetoaconflict，inwhichpresentcapitalisticeconomymustgotoruin。Ontheonehand，immeasurablewealthandasuperfluidityofproductswithwhichthebuyerscannotcope。Ontheotherhand，thegreatmassofsocietyproletarianized，transformedintowage-laborers，andtherebydisabledfromappropriatingtothemselvesthatsuperfluidityofproducts。Thesplittingupofsocietyintoasmallclass，immoderatelyrich，andalargeclassofwage-laborersdevoidofallproperty，bringsitaboutthatthissocietysmothersinitsownsuperfluidity，whilethegreatmajorityofitsmembersarescarcely，ornotatall，protectedfromextremewant。
Thisconditionbecomeseverydaymoreabsurdandmoreunnecessary。Itmustbegottenridof；itcanbegottenridof。Anewsocialorderispossible，inwhichtheclassdifferencesoftodaywillhavedisappeared，andinwhich——perhapsafterashorttransitionperiod，which，thoughsomewhatdeficientinotherrespects，willinanycasebeveryusefulmorally——therewillbethemeansoflife，oftheenjoymentoflife，andofthedevelopmentandactivityofallbodilyandmentalfaculties，throughthesystematicuseandfurtherdevelopmentoftheenormousproductivepowersofsociety，whichexistswithusevennow，withequalobligationuponalltowork。AndthattheworkersaregrowingevermoredeterminedtoachievethisnewsocialorderwillbeprovenonbothsidesoftheoceanonthisdawningMayDay，andonSunday，May3rd。[EngelsisreferingtotheMayDaycelebrationsof1891]
FREDERICKENGELS
London，April30，1891。
Footnotes[1]
"Byclassicalpoliticaleconomy，Iunderstandthateconomywhich，sincethetimeofW。Petty，hasinvestigatedtherealrelationsofproductioninbourgeoissociety，incontradistinctiontovulgareconomy，whichdealswithappearancesonly，ruminateswithoutceasingonthematerialslongsinceprovidedbyscientificeconomy，andthereseeksplausibleexplanationsofthemostobtrusivephenomenaforbourgeoisdailyuse，butfortherestconfinesitselftosystematizinginapedanticway，andproclaimingforeverlastingtruths，triteideasheldbytheself-complacentbourgeoisiewithregardtotheirownworld，tothemthebestofallpossibleworlds。"
（KarlMarx，Capital，Vol。I，p。93f。）
WageLabourandCapital——ChapterIKarlMarxWageLabourandCapitalPreliminaryFromvariousquarterswehavebeenreproachedforneglectingtoportraytheeconomicconditionswhichformthematerialbasisofthepresentstrugglesbetweenclassesandnations。Withsetpurposewehavehithertotouchedupontheseconditionsonlywhentheyforcedthemselvesuponthesurfaceofthepoliticalconflicts。
Itwasnecessary，beyondeverythingelse，tofollowthedevelopmentoftheclassstruggleinthehistoryofourownday，andtoproveempirically，bytheactualanddailynewlycreatedhistoricalmaterial，thatwiththesubjugationoftheworkingclass，accomplishedinthedaysofFebruaryandMarch，1848，theopponentsofthatclass——thebourgeoisrepublicansinFrance，andthebourgeoisandpeasantclasseswhowerefightingfeudalabsolutismthroughoutthewholecontinentofEurope——weresimultaneouslyconquered；thatthevictoryofthe"moderaterepublic"inFrancesoundedatthesametimethefallofthenationswhichhadrespondedtotheFebruaryrevolutionwithheroicwarsofindependence；andfinallythat，bythevictoryovertherevolutionaryworkingmen，Europefellbackintoitsolddoubleslavery，intotheEnglish-Russianslavery。TheJuneconflictinParis，thefallofVienna，thetragi-comedyinBerlininNovember1848，thedesperateeffortsofPoland，Italy，andHungary，thestarvationofIrelandintosubmission——thesewerethechiefeventsinwhichtheEuropeanclassstrugglebetweenthebourgeoisieandtheworkingclasswassummedup，andfromwhichweprovedthateveryrevolutionaryuprising，howeverremotefromtheclassstruggleitsobjectmightappear，mustofnecessityfailuntiltherevolutionaryworkingclassshallhaveconquered；——thateverysocialreformmustremainaUtopiauntiltheproletarianrevolutionandthefeudalisticcounter-revolutionhavebeenpittedagainsteachotherinaworld-widewar。Inourpresentation，asinreality，BelgiumandSwitzerlandweretragicomiccaricaturishgenrepicturesinthegreathistorictableau；theonethemodelStateofthebourgeoismonarchy，theotherthemodelStateofthebourgeoisrepublic；
bothofthem，StatesthatflatterthemselvestobejustasfreefromtheclassstruggleasfromtheEuropeanrevolution。
Butnow，afterourreadershaveseentheclassstruggleoftheyear1848developintocolossalpoliticalproportions，itistimetoexaminemorecloselytheeconomicconditionsthemselvesuponwhichisfoundedtheexistenceofthecapitalistclassanditsclassrule，aswellastheslaveryoftheworkers。
Weshallpresentthesubjectinthreegreatdivisions：
TheRelationofWage-LabortoCapital，theSlaveryoftheWorker，theRuleoftheCapitalist。
TheInevitableRuinoftheMiddleClassesandtheso-calledCommonsunderthepresentsystem。
TheCommercialSubjugationandExploitationoftheBourgeoisclassesofthevariousEuropeannationsbytheDespotoftheWorldMarket——England。
Weshallseektoportraythisassimplyandpopularlyaspossible，andshallnotpresupposeaknowledgeofeventhemostelementarynotionsofpoliticaleconomy。Wewishtobeunderstoodbytheworkers。And，moreover，thereprevailsinGermanythemostremarkableignoranceandconfusionofideasinregardtothesimplesteconomicrelations，fromthepatenteddefendersofexistingconditions，downtothesocialistwonder-workersandtheunrecognizedpoliticalgeniuses，inwhichdividedGermanyisevenricherthaninduodecimoprincelings。Wethereforeproceedtotheconsiderationofthefirstproblem。
WageLabourandCapital——Chapter2KarlMarxWageLabourandCapitalWhatareWages？
HowaretheyDetermined？
Ifseveralworkmenweretobeasked：
"Howmuchwagesdoyouget？"，onewouldreply，"Igettwoshillingsaday"，andsoon。Accordingtothedifferentbranchesofindustryinwhichtheyareemployed，theywouldmentiondifferentsumsofmoneythattheyreceivefromtheirrespectiveemployersforthecompletionofacertaintask；forexample，forweavingayardoflinen，orforsettingapageoftype。Despitethevarietyoftheirstatements，theywouldallagreeupononepoint：thatwagesaretheamountofmoneywhichthecapitalistpaysforacertainperiodofworkorforacertainamountofwork。
Consequently，itappearsthatthecapitalistbuystheirlaborwithmoney，andthatformoneytheysellhimtheirlabor。Butthisismerelyanillusion。
Whattheyactuallyselltothecapitalistformoneyistheirlabor-power。
Thislabor-powerthecapitalistbuysforaday，aweek，amonth，etc。Andafterhehasboughtit，heusesitupbylettingtheworkerlaborduringthestipulatedtime。Withthesameamountofmoneywithwhichthecapitalisthasboughttheirlabor-power（forexample，withtwoshillings）hecouldhaveboughtacertainamountofsugarorofanyothercommodity。Thetwoshillingswithwhichhebought20poundsofsugaristhepriceofthe20
poundsofsugar。Thetwoshillingswithwhichhebought12hours’useoflabor-power，isthepriceof12hours’labor。Labor-power，then，isacommodity，nomore，nolesssothanisthesugar。Thefirstismeasuredbytheclock，theotherbythescales。
Theircommodity，labor-power，theworkersexchangeforthecommodityofthecapitalist，formoney，and，moreover，thisexchangetakesplaceatacertainratio。Somuchmoneyforsolongauseoflabor-power。For12hours’weaving，twoshillings。Andthesetwoshillings，dotheynotrepresentalltheothercommoditieswhichIcanbuyfortwoshillings？
Therefore，actually，theworkerhasexchangedhiscommodity，labor-power，forcommoditiesofallkinds，and，moreover，atacertainratio。Bygivinghimtwoshillings，thecapitalisthasgivenhimsomuchmeat，somuchclothing，somuchwood，light，etc。，inexchangeforhisday’swork。Thetwoshillingsthereforeexpresstherelationinwhichlabor-powerisexchangedforothercommodities，theexchange-valueoflabor-power。
Theexchangevalueofacommodityestimatedinmoneyiscalleditsprice。
Wagesthereforeareonlyaspecialnameforthepriceoflabor-power，andareusuallycalledthepriceoflabor；itisthespecialnameforthepriceofthispeculiarcommodity。whichhasnootherrepositorythanhumanfleshandblood。
Letustakeanyworker；forexample，aweaver。Thecapitalistsupplieshimwiththeloomandyarn。Theweaverapplieshimselftowork，andtheyarnisturnedintocloth。Thecapitalisttakespossessionoftheclothandsellsitfor20shillings，forexample。Nowarethewagesoftheweaverashareofthecloth，ofthe20shillings，oftheproductofthework？
Bynomeans。Longbeforetheclothissold，perhapslongbeforeitisfullywoven，theweaverhasreceivedhiswages。Thecapitalist，then，doesnotpayhiswagesoutofthemoneywhichhewillobtainfromthecloth，butoutofmoneyalreadyonhand。Justaslittleasloomandyarnaretheproductoftheweavertowhomtheyaresuppliedbytheemployer，justsolittlearethecommoditieswhichhereceivesinexchangeforhiscommodity——
labor-power——hisproduct。Itispossiblethattheemployerfoundnopurchasersatallforthecloth。Itispossiblethathedidnotgeteventheamountofthewagesbyitssale。Itispossiblethathesellsitveryprofitablyinproportiontotheweaver’swages。Butallthatdoesnotconcerntheweaver。Withapartofhisexistingwealth，ofhiscapital，thecapitalistbuysthelabor-poweroftheweaverinexactlythesamemanneras，withanotherpartofhiswealth，hehasboughttherawmaterial——theyarn——andtheinstrumentoflabor——theloom。Afterhehasmadethesepurchases，andamongthembelongsthelabor-powernecessarytotheproductionoftheclothheproducesonlywithrawmaterialsandinstrumentsoflaborbelongingtohim。Forourgoodweaver，too，isoneoftheinstrumentsoflabor，andbeinginthisrespectonaparwiththeloom，hehasnomoreshareintheproduct（thecloth），orinthepriceoftheproduct，thantheloomitselfhas。
Wages，therefore，arenotashareoftheworkerinthecommoditiesproducedbyhimself。Wagesarethatpartofalreadyexistingcommoditieswithwhichthecapitalistbuysacertainamountofproductivelabor-power。
Consequently，labor-powerisacommoditywhichitspossessor，thewage-worker，sellstothecapitalist。Whydoeshesellit？Itisinordertolive。
Buttheputtingoflabor-powerintoaction——i。e。，thework——istheactiveexpressionofthelaborer’sownlife。Andthislifeactivityhesellstoanotherpersoninordertosecurethenecessarymeansoflife。
Hislife-activity，therefore，isbutameansofsecuringhisownexistence。
Heworksthathemaykeepalive。Hedoesnotcountthelaboritselfasapartofhislife；itisratherasacrificeofhislife。Itisacommoditythathehasauctionedofftoanother。Theproductofhisactivity，therefore，isnottheaimofhisactivity。Whatheproducesforhimselfisnotthesilkthatheweaves，notthegoldthathedrawsuptheminingshaft，notthepalacethathebuilds。Whatheproducesforhimselfiswages；andthesilk，thegold，andthepalaceareresolvedforhimintoacertainquantityofnecessariesoflife，perhapsintoacottonjacket，intocoppercoins，andintoabasementdwelling。Andthelaborerwhofor12hourslong，weaves，spins，bores，turns，builds，shovels，breaksstone，carrieshods，andsoon——isthis12hours’weaving，spinning，boring，turning，building，shovelling，stone-breaking，regardedbyhimasamanifestationoflife，aslife？Quitethecontrary。Lifeforhimbeginswherethisactivityceases，atthetable，atthetavern，inbed。The12hours’work，ontheotherhand，hasnomeaningforhimasweaving，spinning，boring，andsoon，butonlyasearnings，whichenablehimtositdownatatable，totakehisseatinthetavern，andtoliedowninabed。Ifthesilk-worm’sobjectinspinningweretoprolongitsexistenceascaterpillar，itwouldbeaperfectexampleofawage-worker。
Labor-powerwasnotalwaysacommodity（merchandise）。Laborwasnotalwayswage-labor，i。e。，freelabor。Theslavedidnotsellhislabor-powertotheslave-owner，anymorethantheoxsellshislabortothefarmer。
Theslave，togetherwithhislabor-power，wassoldtohisowneronceforall。Heisacommoditythatcanpassfromthehandofoneownertothatofanother。Hehimselfisacommodity，buthislabor-powerisnothiscommodity。
Theserfsellsonlyaportionofhislabor-power。Itisnothewhoreceiveswagesfromtheowneroftheland；itisrathertheownerofthelandwhoreceivesatributefromhim。Theserfbelongstothesoil，andtothelordofthesoilhebringsitsfruit。Thefreelaborer，ontheotherhand，sellshisveryself，andthatbyfractions。Heauctionsoffeight，10，12，15hoursofhislife，onedaylikethenext，tothehighestbidder，totheownerofrawmaterials，tools，andthemeansoflife——i。e。，tothecapitalist。Thelaborerbelongsneithertoanownernortothesoil，buteight，10，12，15hoursofhisdailylifebelongtowhomsoeverbuysthem。Theworkerleavesthecapitalist，towhomhehassoldhimself，asoftenashechooses，andthecapitalistdischargeshimasoftenasheseesfit，assoonashenolongergetsanyuse，ornottherequireduse，outofhim。Buttheworker，whoseonlysourceofincomeisthesaleofhislabor-power，cannotleavethewholeclassofbuyers，i。e。，thecapitalistclass，unlesshegivesuphisownexistence。Hedoesnotbelongtothisorthatcapitalist，buttothecapitalistclass；anditisforhimtofindhisman——i。e。，tofindabuyerinthiscapitalistclass。
Beforeenteringmorecloselyupontherelationofcapitaltowage-labor，weshallpresentbrieflythemostgeneralconditionswhichcomeintoconsiderationinthedeterminationofwages。
Wages，aswehaveseen，arethepriceofacertaincommodity，labor-power。
Wages，therefore，aredeterminedbythesamelawsthatdeterminethepriceofeveryothercommodity。Thequestionthenis，Howisthepriceofacommoditydetermined？
WageLabourandCapital——Chapter3KarlMarxWageLabourandCapitalBywhatisthepriceofacommoditydetermined？
Bythecompetitionbetweenbuyersandsellers，bytherelationofthedemandtothesupply，ofthecalltotheoffer。Thecompetitionbywhichthepriceofacommodityisdeterminedisthreefold。
Thesamecommodityisofferedforsalebyvarioussellers。Whoeversellscommoditiesofthesamequalitymostcheaply，issuretodrivetheothersellersfromthefieldandtosecurethegreatestmarketforhimself。Thesellersthereforefightamongthemselvesforthesales，forthemarket。
Eachoneofthemwishestosell，andtosellasmuchaspossible，andifpossibletosellalone，totheexclusionofallothersellers。Eachonesellscheaperthantheother。Thustheretakesplaceacompetitionamongthesellerswhichforcesdownthepriceofthecommoditiesofferedbythem。
Butthereisalsoacompetitionamongthebuyers；thisuponitssidecausesthepriceoftheprofferedcommoditiestorise。
Finally，thereiscompetitionbetweenthebuyersandthesellers：thesewishtopurchaseascheaplyaspossible，thosetosellasdearlyaspossible。
Theresultofthiscompetitionbetweenbuyersandsellerswilldependupontherelationsbetweenthetwoabove-mentionedcampsofcompetitors——i。e。，uponwhetherthecompetitioninthearmyofsellersisstronger。Industryleadstwogreatarmiesintothefieldagainsteachother，andeachoftheseagainisengagedinaabattleamongitsowntroopsinitsownranks。Thearmyamongwhosetroopsthereislessfightingcarriesofthevictoryovertheopposinghost。
Letussupposethatthereare100balesofcottoninthemarketandatthesametimepurchasersfor1，000balesofcotton。Inthiscase，thedemandis10timesgreaterthanthesupply。Competitionamongthebuyers，then，willbeverystrong；eachofthemtriestogetholdofonebale，ifpossible，ofthewhole100bales。Thisexampleisnoarbitrarysupposition。
Inthehistoryofcommercewehaveexperiencedperiodsofscarcityofcotton，whensomecapitalistsunitedtogetherandsoughttobuyupnot100bales，butthewholecottonsupplyoftheworld。Inthegivencase，then，onebuyerseekstodrivetheothersfromthefieldbyofferingarelativelyhigherpriceforthebalesofcotton。Thecottonsellers，whoperceivethetroopsoftheenemyinthemostviolentcontentionamongthemselves，andwhothereforearefullyassuredofthesaleoftheirwhole100bales，willbewareofpullingoneanother’shairinordertoforcedownthepriceofcottonattheverymomentinwhichtheiropponentsracewithoneanothertoscrewituphigh。So，allofasudden，peacereignsinthearmyofsellers。
Theystandopposedtothebuyerslikeoneman，foldtheirarmsinphilosophiccontentmentandtheirclaimswouldfindnolimitdidnottheoffersofeventhemostimportunateofbuyershaveaverydefinitelimit。
If，then，thesupplyofacommodityislessthanthedemandforit，competitionamongthesellersisveryslight，ortheremaybenoneatallamongthem。Inthesameproportioninwhichthiscompetitiondecreases，thecompetitionamongthebuyersincreases。Result：amoreorlessconsiderableriseinthepricesofcommodities。
Itiswellknownthattheoppositecase，withtheoppositeresult，happensmorefrequently。Greatexcessofsupplyoverdemand；desperatecompetitionamongthesellers，andalackofbuyers；forcedsalesofcommoditiesatridiculouslylowprices。
Butwhatisarise，andwhatafallofprices？Whatisahighandwhatalowprice？Agrainofsandishighwhenexaminedthroughamicroscope，andatowerislowwhencomparedwithamountain。Andifthepriceisdeterminedbytherelationofsupplyanddemand，bywhatistherelationofsupplyanddemanddetermined？
Letusturntothefirstworthycitizenwemeet。Hewillnothesitateonemoment，but，likeAlexandertheGreat，willcutthismetaphysicalknowwithhismultiplicationtable。Hewillsaytous："IftheproductionofthecommoditieswhichIsellhascostme100pounds，andoutofthesaleofthesegoodsImake110pounds——withintheyear，youunderstand——
that’sanhonest，sound，reasonableprofit。ButifintheexchangeIreceive120or130pounds，that’sahigherprofit；andifIshouldgetasmuchas200pounds，thatwouldbeanextraordinary，andenormousprofit。"Whatisit，then，thatservesthiscitizenasthestandardofhisprofit？Thecostoftheproductionofhiscommodities。Ifinexchangeforthesegoodshereceivesaquantityofothergoodswhoseproductionhascostless，hehaslost。Ifhereceivesinexchangeforhisgoodsaquantityofothergoodswhoseproductionhascostmore，hehasgained。Andhereckonsthefallingorrisingoftheprofitaccordingtothedegreeatwhichtheexchangevalueofhisgoodsstands，whetheraboveorbelowhiszero——thecostofproduction。
Wehaveseenhowthechangingrelationofsupplyanddemandcausesnowarise，nowafallofprices；nowhigh，nowlowprices。Ifthepriceofacommodityrisesconsiderablyowingtoafailingsupplyoradisproportionatelygrowingdemand，thenthepriceofsomeothercommoditymusthavefalleninproportion；forofcoursethepriceofacommodityonlyexpressesinmoneytheproportioninwhichothercommoditieswillbegiveninexchangeforit。If，forexample，thepriceofayardofsilkrisesfromtwotothreeshillings，thepriceofsilverhasfalleninrelationtothesilk，andinthesamewaythepricesofallothercommoditieswhosepriceshaveremainedstationaryhavefalleninrelationtothepriceofsilk。Alargequantityofthemmustbegiveninexchangeinordertoobtainthesameamountofsilk。Now，whatwillbetheconsequenceofariseinthepriceofaparticularcommodity？Amassofcapitalwillbethrownintotheprosperousbranchofindustry，andthisimmigrationofcapitalintotheprovincesofthefavoredindustrywillcontinueuntilityieldsnomorethanthecustomaryprofits，or，ratheruntilthepriceofitsproducts，owningtooverproduction，sinksbelowthecostofproduction。
Conversely：ifthepriceofacommodityfallsbelowitscostofproduction，thencapitalwillbewithdrawnfromtheproductionofthiscommodity。Exceptinthecaseofabranchofindustrywhichhasbecomeobsoleteandisthereforedoomedtodisappear，theproductionofsuchacommodity（thatis，itssupply），will，owningtothisflightofcapital，continuetodecreaseuntilitcorrespondstothedemand，andthepriceofthecommodityrisesagaintothelevelofitscostofproduction；or，rather，untilthesupplyhasfallenbelowthedemandanditspricehasrisenaboveitscostofproduction，forthecurrentpriceofacommodityisalwayseitheraboveorbelowitscostofproduction。
Weseehowcapitalcontinuallyemigratesoutoftheprovinceofoneindustryandimmigratesintothatofanother。Thehighpriceproducesanexcessiveimmigration，andthelowpriceanexcessiveemigration。
Wecouldshow，fromanotherpointofview，hownotonlythesupply，butalsothedemand，isdeterminedbythecostofproduction。Butthiswouldleadustoofarawayfromoursubject。
Wehavejustseenhowthefluctuationofsupplyanddemandalwaysbringthepriceofacommoditybacktoitscostofproduction。Theactualpriceofacommodity，indeed，standsalwaysaboveorbelowthecostofproduction；
buttheriseandfallreciprocallybalanceeachother，sothat，withinacertainperiodoftime，iftheebbsandflowsoftheindustryarereckoneduptogether，thecommoditieswillbeexchangedforoneanotherinaccordancewiththeircostofproduction。Theirpriceisthusdeterminedbytheircostofproduction。
Thedeterminationofpricebythecostofproductionisnottobeunderstoodinthesenseofthebourgeoiseconomists。Theeconomistssaythattheaveragepriceofcommoditiesequalsthecostofproduction：thatisthelaw。Theanarchicmovement，inwhichtheriseiscompensatedforbyafallandthefallbyarise，theyregardasanaccident。Wemightjustaswellconsiderthefluctuationsasthelaw，andthedeterminationofthepricebycostofproductionasanaccident——asis，infact，donebycertainothereconomists。
Butitispreciselythesefluctuationswhich，viewedmoreclosely，carrythemostfrightfuldevastationintheirtrain，and，likeanearthquake，causebourgeoissocietytoshaketoitsveryfoundations——itispreciselythesefluctuationsthatforcethepricetoconformtothecostofproduction。
Inthetotalityofthisdisorderlymovementistobefounditsorder。Inthetotalcourseofthisindustrialanarchy，inthiscircularmovement，competitionbalances，asitwere，theoneextravagancebytheother。