The Grundrisse as a The Grundrisse as a Research Manuscript Research Manuscript

Capital in general and many Capital in general and many CapitalsCapitals

Michael R. KrMichael R. Kräätke tke

The Structure of the GrundrisseThe Structure of the Grundrisse

A brief chapter on Money (unfinished and badly A brief chapter on Money (unfinished and badly organized) organized)

A very long chapter on Capital (unfinished)A very long chapter on Capital (unfinished)

Focus: The concept of Capital in general Focus: The concept of Capital in general

No chapter on Value – only at the very end No chapter on Value – only at the very end comes the insight: there shoud be a first chapter comes the insight: there shoud be a first chapter on the commodity / the concept of valueon the commodity / the concept of value

A short, unfinished introduction (not for A short, unfinished introduction (not for publication) publication)

The Grundrisse as a research The Grundrisse as a research manuscriptmanuscript

Marx in discussion with himself Marx in discussion with himself Marx criticizing and correcting himselfMarx criticizing and correcting himselfMarx experimenting with the dialectical form of Marx experimenting with the dialectical form of exposition / presentationexposition / presentationMarx making discoveries (for instance: schemes of Marx making discoveries (for instance: schemes of reproduction / absolute and relative surplus value)reproduction / absolute and relative surplus value) Marx resuming the critique of the classical economists Marx resuming the critique of the classical economists Still missing: Crucial parts of his analytical framework Still missing: Crucial parts of his analytical framework (for instance: variable and constant capital)(for instance: variable and constant capital)

The Grundrisse as a research The Grundrisse as a research manuscriptmanuscript

Not one plan, but several versions of the Not one plan, but several versions of the overall plan (6 books) plusoverall plan (6 books) plus

several plans for the first book (on capital)several plans for the first book (on capital)

Long digressions (for instance: on the Long digressions (for instance: on the precapitalist modes of production)precapitalist modes of production)

Collections of material (from excerpts, Collections of material (from excerpts, from statistical / historical notebooks)from statistical / historical notebooks)

The Grundrisse as a research The Grundrisse as a research manuscriptmanuscript

Strongest argument (thesis at this stage): Marx Strongest argument (thesis at this stage): Marx starts changing his original plan for book I (on starts changing his original plan for book I (on Capital) already in this msCapital) already in this ms

Marx uses larger passages of this ms as Marx uses larger passages of this ms as material in his later ms (in particular in the ms of material in his later ms (in particular in the ms of 1861 – 1863)1861 – 1863)

The text is full of anticipations – jumping ahead The text is full of anticipations – jumping ahead and dealing with topics that should come much and dealing with topics that should come much later (Marx to himself: all that does not belong later (Marx to himself: all that does not belong here! Has to be presented much later)here! Has to be presented much later)

Development of the Concept of Development of the Concept of Capital Capital

Marx’ intention: to “develop” the concept of Marx’ intention: to “develop” the concept of capital – in general capital – in general To analyze and “develop” all the inner To analyze and “develop” all the inner contradictions of that basic relationship – capital contradictions of that basic relationship – capital versus labourversus labourTo (re)construct the process of the “making” of To (re)construct the process of the “making” of capital – what is behind the formula of M – C – capital – what is behind the formula of M – C – M’ ?M’ ? But how? How useful is the distinction between But how? How useful is the distinction between “capital in general” and “many capitals” as an “capital in general” and “many capitals” as an organizing principle for the development of this organizing principle for the development of this crucial concept?crucial concept?

Marx’ analysis of capital in the Marx’ analysis of capital in the Grundrisse Grundrisse

Starting with the exchange between capital and Starting with the exchange between capital and labour (analyzing the labour contract)labour (analyzing the labour contract) The process of exploitation (immediate The process of exploitation (immediate production process)production process) The results of the immediate production processThe results of the immediate production process Capital and labour on the market again - Capital and labour on the market again - another contradiction: exchange between capital another contradiction: exchange between capital and capital , exchange between capital and and capital , exchange between capital and wage labourers – its own and those employed wage labourers – its own and those employed by other capitalists/capitals by other capitalists/capitals

The limits of Capital in generalThe limits of Capital in general

First limit: The analysis of relative surplus First limit: The analysis of relative surplus value production value production

Second limit: The analysis of accumulationSecond limit: The analysis of accumulation

Third limit: The analysis of the Third limit: The analysis of the reproduction process of capital reproduction process of capital

Fourth limit: The analysis of competition as Fourth limit: The analysis of competition as a structure and a processa structure and a process

Fifth limit: The analysis of credit Fifth limit: The analysis of credit

The Limits of Capital in GeneralThe Limits of Capital in General

Because Marx runs into trouble – many Because Marx runs into trouble – many times – he has to give up the original times – he has to give up the original organizing concept of organizing concept of

Capital in general – many capitalsCapital in general – many capitals

As a matter of fact, he starts introducing As a matter of fact, he starts introducing “many capitals” / differentiations of “many capitals” / differentiations of capital /capital – capital relations capital /capital – capital relations

- and develops new concepts - and develops new concepts

Marx runs into troubleMarx runs into trouble

Pursuing his program of research, Marx learns Pursuing his program of research, Marx learns about the inherent limits / deficiencies of his about the inherent limits / deficiencies of his organizing principle – Capital in general / many organizing principle – Capital in general / many capitalscapitals

Accumulation belongs to the process of capitalAccumulation belongs to the process of capital

but: Accumulation cannot be analyzed without but: Accumulation cannot be analyzed without making a difference between capital and capital making a difference between capital and capital (original capital and surplus capital) (original capital and surplus capital)

Marx runs into troubleMarx runs into trouble

Accumulation is linked to the reproduction Accumulation is linked to the reproduction process of capital process of capital Inconceivable without “several capitals” – Inconceivable without “several capitals” – capitals producing different inputs, capitals in capitals producing different inputs, capitals in exchange with each other exchange with each other Accumulation as a process is linked to the Accumulation as a process is linked to the process of competition (for instance: the process of competition (for instance: the concentration and centralization of capital)concentration and centralization of capital)Accumulation is the process of expanded Accumulation is the process of expanded reproduction of capital and of its structural reproduction of capital and of its structural change (development of capital)change (development of capital)

Marx runs into troubleMarx runs into trouble

Surplus value production – the core Surplus value production – the core precondition of the making of capital precondition of the making of capital Two central “methods” of surplus production – Two central “methods” of surplus production – absolute and relative absolute and relative Relative surplusproduction can only be Relative surplusproduction can only be explained within the analytical framework of explained within the analytical framework of several / many capitals (with differential rates of several / many capitals (with differential rates of technological development) – the reduction of technological development) – the reduction of necessary labour time (necessary for the necessary labour time (necessary for the reproduction of the worker) depends upon the reproduction of the worker) depends upon the productivity of labour in the production of productivity of labour in the production of consumer goods consumer goods

Changing plans (rebuilding the ship Changing plans (rebuilding the ship on sea)on sea)

Marx learns that he cannot stick to “capital in Marx learns that he cannot stick to “capital in general” as he thought general” as he thought He has to deal with the subdivisions of capitalHe has to deal with the subdivisions of capital He has to deal with capital – capital relations He has to deal with capital – capital relations (exchanges and rivalries)(exchanges and rivalries) He has to distinguish “social capital” / “individual He has to distinguish “social capital” / “individual capital” / particular forms of capitalcapital” / particular forms of capital Already in the Grundrisse he gives up his first Already in the Grundrisse he gives up his first distinction (capital in general / many capitals) distinction (capital in general / many capitals) and replaces it by another and more complex and replaces it by another and more complex distinction (general / particular / individual)distinction (general / particular / individual)

Marx’ ambition in GrundrisseMarx’ ambition in Grundrisse

Written in 1857/58 – during the first great world Written in 1857/58 – during the first great world crisis (affecting not only the few industrial / crisis (affecting not only the few industrial / industrializing countries but also the “rest of the industrializing countries but also the “rest of the world”)world”)Marx’ ambition: refutation of Say’s law, Marx’ ambition: refutation of Say’s law, overcoming the fallacies of the “general glut overcoming the fallacies of the “general glut debate” debate” Discovering the law / inner necessity of crisis in Discovering the law / inner necessity of crisis in modern capitalismmodern capitalism Discovering / explaining the long term Discovering / explaining the long term tendencies of capitalism (its historical laws of tendencies of capitalism (its historical laws of development)development)

Credit and Crisis Credit and Crisis

What is the final goal of Marx’ analysis?What is the final goal of Marx’ analysis? To explain why and how capitalism is a self-To explain why and how capitalism is a self-destructive social system – undermining itself, destructive social system – undermining itself, destroying necessary preconditions which it can destroying necessary preconditions which it can not reproduce / replacenot reproduce / replace To explain the limits of credit (which is a device To explain the limits of credit (which is a device to overcome many of the restrictions imposed to overcome many of the restrictions imposed upon capital)upon capital) To explain how and why the credit system in the To explain how and why the credit system in the end accelerates and aggravates the crises of end accelerates and aggravates the crises of capitalism capitalism

Why Credit? Why Credit?

Credit as a social device – rising from the exchange Credit as a social device – rising from the exchange processprocess Credit presupposes capital – Capital presupposes credit Credit presupposes capital – Capital presupposes credit Credit links together money as money and money as Credit links together money as money and money as capital capital Credit provides the base for new forms of associated Credit provides the base for new forms of associated capital (the highest form, according to Marx) capital (the highest form, according to Marx) Credit facilitates / accelerates the process of Credit facilitates / accelerates the process of accumulation accumulation Credit provides the most sophisticated form of social Credit provides the most sophisticated form of social regulation of relations of production and exchange which regulation of relations of production and exchange which are compatibel with capitalism (and already point beyond are compatibel with capitalism (and already point beyond the capitalist mode of production, according to Marx)the capitalist mode of production, according to Marx)

Why Crisis? Why Crisis?

The double meaning of crisis – both a symptom of the The double meaning of crisis – both a symptom of the obsolescence of capitalism / and an element that slows obsolescence of capitalism / and an element that slows down the decay of capitalism (enables fresh starts again down the decay of capitalism (enables fresh starts again and again – just because of the destruction of large and again – just because of the destruction of large portions of value and capital)portions of value and capital) The dynamics of crisis – as a crucial phase in a longer The dynamics of crisis – as a crucial phase in a longer process / as a decisive period of the trade cycle, process / as a decisive period of the trade cycle, industrial cycleindustrial cycle The different “forms of crisis” (among others: monetary The different “forms of crisis” (among others: monetary crisis, credit crisis, financial crisis, industrial crisis …)crisis, credit crisis, financial crisis, industrial crisis …) The longterm tendency of crisis – to become world-The longterm tendency of crisis – to become world-wide, to become more and more severewide, to become more and more severe

The range and scope of Marx’ The range and scope of Marx’ theory of crisis theory of crisis

Crisis means the “explosion” of all Crisis means the “explosion” of all contradictions of the capitalist mode of contradictions of the capitalist mode of productionproduction Crises are inevitable / necessary in capitalism Crises are inevitable / necessary in capitalism as a temporary means to create new as a temporary means to create new opportunities for capitalist development opportunities for capitalist development A multifaceted phenomenon – the general crisis A multifaceted phenomenon – the general crisis comprises several particular crises comprises several particular crises Explanation has to be complex as well Explanation has to be complex as well Accordingly, there seem to be several Marxian Accordingly, there seem to be several Marxian “theories” of crisis (in fact, there are several “theories” of crisis (in fact, there are several causal chains that Marx follows and combines)causal chains that Marx follows and combines)

General conclusion – the meaning General conclusion – the meaning of the Grundrisseof the Grundrisse

The Grundrisse are not the “better or The Grundrisse are not the “better or richer version” of Capitalricher version” of Capital

They are just one stage in the long They are just one stage in the long learning process of its author (learning learning process of its author (learning how to build the critical theory) – althoug a how to build the critical theory) – althoug a very important onevery important one

The Grundrisse are a first big step The Grundrisse are a first big step towards Capital, no more, no lesstowards Capital, no more, no less

Conclusion – Lessons that Marx Conclusion – Lessons that Marx drew drew

Writing “A Contribution to the Critique of Writing “A Contribution to the Critique of Political Economy” (1858, published in 1859)Political Economy” (1858, published in 1859) Two versions (fragmentary “Urtext” and text as Two versions (fragmentary “Urtext” and text as published in 1859published in 1859 Lesson A: “The dialectical mode of exposition / Lesson A: “The dialectical mode of exposition / presentation is only right, if one is aware of its presentation is only right, if one is aware of its limits” (Urtext)limits” (Urtext) Lesson B: Analysis of the commodity (form) and Lesson B: Analysis of the commodity (form) and the exchange relation (process) is indispensable the exchange relation (process) is indispensable to develop the concept of moneyto develop the concept of money

What happens to the new vista’ s What happens to the new vista’ s opened up by the Grundrisse?opened up by the Grundrisse?

They do not disappear / are not forgottenThey do not disappear / are not forgotten Most of them are preserved / remembered in Most of them are preserved / remembered in Capital Capital The later ms show Marx’ efforts to tackle the The later ms show Marx’ efforts to tackle the problems he has run into when writing the problems he has run into when writing the Grundrisse Grundrisse

for instance: Capital as a self-reproducing for instance: Capital as a self-reproducing system which cannot produce all its system which cannot produce all its prerequesites (as human labour, natural prerequesites (as human labour, natural resources, society)resources, society)

Against the conventional viewAgainst the conventional view

Capital is not inferior to the GrundrisseCapital is not inferior to the Grundrisse Capital is not narrow and closed – as compared Capital is not narrow and closed – as compared to the Grundrisse to the Grundrisse Capital is not less “dialectical” than the Capital is not less “dialectical” than the GrundrisseGrundrisse There is no regression – from the Grundrisse to There is no regression – from the Grundrisse to Capital Capital Marx has learned a lot through the Grundrisse – Marx has learned a lot through the Grundrisse – there is progress from the Grundrisse to Capital / there is progress from the Grundrisse to Capital / as there is progress from the manuscript as there is progress from the manuscript “Money, Credit and Crises” of 1856 to the “Money, Credit and Crises” of 1856 to the GrundrisseGrundrisse