[1] For a totally different interpretation see Sweezy; _The Theory of
Capitalist Development_, chap. xi, Section 9.
[2] See p. 166.
[3] Cf. the quotation from _Capital_, vol. iii, p. 331.
[4] See p. 132.
[5] See p. 135.
[6] See p. 130.
[7] Exchanges between industries, however, must take place at 'prices of
production' not at _values_. See below, p. 15, note.
[8] See p. 113.
[9] See p. 361.
[10] See p. 134.
[11] Later it is assumed that real wages can be depressed by taxation
(p. 455).
[12] See p. 116.
[13] See p. 85.
[14] See p. 355.
[15] See p. 76, note 355.
[16] See p. 79.
[17] In the numerical example quoted in chap. vi. (p. 117) the rate of
profit is much higher in Department II than in I. Marx has made the rate
of exploitation equal in the two departments, and the ratio of constant
to variable capital higher in Department I. This is evidently an
oversight. The two departments must trade with each other at market
prices, not in terms of _value_. Therefore _s_{1}_ must represent the
profits accruing to Department I, not a proportion (half in the example)
of the _value_ generated in Department I. _s_{1}/v_{1}_ should exceed
_s_{2}/v_{2}_ to an extent corresponding to the higher organic
composition of capital in Department I. The point is interesting, as it
shows that when off guard Marx forgot that he could make prices
proportional to _values_ only when the organic composition of capital is
the same in all industries.
[18] See p. 129.
[19] See p. 130.
[20] Since, in this model, the organic composition of capital is the
same in the two departments, prices correspond to _values_.
[21] Of total gross output, 2/3 is replacement of constant capital;
surplus is 1/6 of gross output, and of surplus half is saved; thus
savings are 1/12 of gross output; of saving 4/5 is added to constant
capital; thus 1/15 of gross output is added to constant capital. The
output of Department I is therefore 2/3 + 1/15 or 11/15 of total gross
output. Similarly, the output of Department II is 4/15 of total gross
output.
[22] This model bears a strong family resemblance to Mr. Harrod's
'Warranted rate of growth'. _Towards a Dynamic Economics_, lecture III.
[23] See p. 119.
[24] See p. 125.
[25] See p. 128.
[26] See p. 91.
[27] See p. 115.
[28] See p. 102. The phrase '_zahlungsfähige nachfrage_', translated
'effective demand', is not the effective demand of Keynes (roughly,
current expenditure) but appears often to mean demand for new capital,
or, perhaps, prospective future demand for goods to be produced by new
capital.
[29] This assumption is made explicit later (p. 342).
[30] See pp. 131 et seq.
[31] See Sweezy, loc. cit.
[32] See p. 40.
[33] See p. 303.
[34] See p. 258.
[35] This point is, however, later admitted (p. 337).
[36] See p. 252.
[37] See p. 259. Marx himself failed to get this point clear. Cf. my
_Essay on Marxian Economics_, chap. v.
[38] Cf. Kalecki, _Essays in the Theory of Economic Fluctuations_, pp.
14 et seq.
[39] See p. 323.
[40] See p. 314. Marx did not find himself in this dilemma because he
held that there is a fundamental 'contradiction' in capitalism which
shows itself in a strong tendency for the rate of profit on capital to
fall as technical progress takes place. But Rosa Luxemburg sees that the
tendency to a falling rate of profit is automatically checked and may
even be reversed if real-wage rates are constant (p. 338).
[41] See p. 217, note.
[42] One passage suggests that she sees the problem, but thinks it
irrelevant to the real issue (p. 342).
[43] See p. 338.
[44] See p. 337.
[45] In this model the rate of exploitation is different in the two
departments. This means that the numbers represent money value, not
_value_.
[46] Rosa Luxemburg seems to regard this process as impossible, but for
what reason is by no means clear (p. 341).
[47] See p. 352.
[48] See p. 352.
[49] See p. 358.
[50] See p. 370.
[51] See p. 428.
[52] See p. 435.
[53] See p. 421.
[54] See p. 455.
[55] See p. 387.
[56] Hicks, _Value and Capital_, p. 302, note. Mr. Hicks himself,
however, regards the increase in population as the mainspring.
[57] Cf. _A Survey of Contemporary Economics_ (ed. Ellis), p. 63.
_SECTION ONE_
THE PROBLEM
OF REPRODUCTION
_CHAPTER I_