TUGAN BARANOVSKI AND HIS 'LACK OF PROPORTION'

We have left this theorist to the end, although he already developed his

views in Russian in 1894, i.e. before Struve and Bulgakov, partly

because he only gave his theories their mature form in German at a later

date,[316] and also because the conclusions he draws from the premises

of the Marxist critics are the most far-reaching in their implications.

Like Bulgakov, Tugan Baranovski starts from Marx's analysis of social

reproduction which gave him the clue to this bewildering maze of

problems. But while Bulgakov, the enthusiastic disciple of Marx, only

sought to follow him faithfully and simply attributed his own

conclusions to the master, Tugan Baranovski, on the other hand, lays

down the law to Marx who, in his opinion, did not know how to turn his

brilliant exposition of the reproductive process to good account. Tugan

Baranovski's most important general conclusion from Marx's principles,

the pivot of his whole theory, is that, contrary to the assumptions of

the sceptics, capitalist accumulation is not only possible under the

capitalist forms of revenue and consumption, but is, in fact, completely

independent of both. It is not consumption, he says, but production

itself which makes for the best market. Production and the market are

therefore the same, and since the expansion of production is unlimited

in itself, the market, the capacity to absorb its products, has no

limits either.

'The diagram quoted', he says, 'was to prove conclusively a postulate

which, though simple enough, might easily give rise to objections,

unless the process be adequately understood--the postulate, namely, that

capitalist production creates a market for itself. So long as it is

possible to expand social production, if the productive forces are

adequate for this purpose, the proportionate division of social

production must also bring about a corresponding expansion of the demand

inasmuch as under such conditions all newly produced goods represent a

newly created purchasing power for the acquisition of other goods.

Comparing simple reproduction of the social capital with its

reproduction on a rising scale, we arrive at the most important

conclusion that in capitalist economy the demand for commodities is in a

sense independent of the total volume of social consumption. Absurd as

it may seem to "common-sense", it is yet possible that the volume of

social consumption as a whole goes down while at the same time the

aggregate social demand for commodities grows.'[317]

And again further on: 'Arising from the abstract analysis of the

reproductive process of social capital we have formed the conclusion

that nothing will be left over of the social product in view of the

proportionate division of the social capital.'[318]

Accordingly Tugan Baranovski subjects Marx's theory of crises to a

revision which he claims to have developed from Sismondi's

'over-consumption'. 'Marx is in substantial agreement with the general

view that the poverty of the workers, i.e. of the great majority of the

population, makes it impossible to realise the products of an ever

expanding capitalist production, since it causes a decline in demand.

This opinion is definitely mistaken. We have seen that capitalist

production creates its own market--consumption being only one of the

moments of capitalist production. In a planned social production if the

leaders of production were equipped with all _information_ about the

demand and with the _power_ to transfer labour and capital freely from

one branch of production to another, then, however low the level of

social consumption, the supply of commodities would not exceed the

demand.'[319]

The only circumstance which periodically causes the market to be flooded

is a lack of proportion in the enlargement of production. On this

assumption, therefore, Tugan Baranovski describes the course of

capitalist accumulation as follows: 'What would the workers ... produce

if production were organised on proportionate lines? Obviously their own

means of subsistence and production. With what object? To expand

production in the second year. The production of what products? Again of

means of production and subsistence for the workers--and so on _ad

infinitum_.'[320]

This game of question and answer, mind you, is not a form of

self-mockery, it is meant in all seriousness. 'If the expansion of

production has no practical limits, then we must assume that the

expansion of markets is equally unlimited, for _if social production is

proportionately organised, there is no limit to the expansion of the

market other than the productive forces available_.'[321]

Since production thus creates its own demand, foreign commerce of

capitalist states is also assigned that peculiar mechanistic function we

have already met in Bulgakov. A foreign market, for instance, is an

absolute necessity for England. 'Does not this prove that capitalist

production creates a surplus product for which there is no room on the

internal market? Why, come to that, does England require an external

market? The answer is not difficult: because a considerable part of

England's purchasing power is expended on obtaining foreign commodities.

The import of foreign commodities for the English home market also makes

it essential to export English commodities abroad. Since England cannot

manage without importing from abroad, exports are a vital condition for

that country, since without them she would not be able to pay for her

imports.'[322]

Here again agricultural imports are described as a stimulating and

decisive factor, quite in accordance with the scheme of the German

professors.

What, then, is the general line of reasoning on which Tugan Baranovski

supports his daring solution of the problem of accumulation, the new

revelation on the problem of crises and a whole lot of others? Hard to

believe, but quite incontrovertible for all that, Tugan Baranovski's

proof consists exclusively and entirely--in Marx's diagram of enlarged

reproduction, no more no less. Although he repeatedly refers rather

pompously to his 'abstract analysis of the reproductive process of

social capital', to the 'conclusive logic' of his analysis, this entire

analysis is nothing but a copy of Marx's diagram of enlarged

reproduction, with a different set of figures. Nowhere in the entire

works of Tugan Baranovski shall we find a trace of any other argument.

In Marx's diagram, admittedly, accumulation, production, realisation and

exchange run smoothly with clockwork precision, and no doubt this kind

of 'accumulation' can continue _ad infinitum_, just as long, that is to

say, as ink and paper do not run out. And it is this harmless written

exercise with mathematical equations which Tugan Baranovski quite

seriously considers a _demonstration_ of such a course in real events.

'The diagrams we have adduced are bound to prove conclusively that....'

On another occasion he counters Hobson, who is convinced that

accumulation is impossible, with the following words: 'Diagram No. 2 of

the reproduction of social capital on a rising scale corresponds to the

case of capital accumulation Hobson has in mind. But does this diagram

show a surplus product to come into being? Far from it.'[323]

Hobson is refuted and the matter settled because 'in the diagram' no

surplus product comes into being.

Admittedly, Tugan Baranovski knows quite well that in hard fact things

do not work out so smoothly. There are continual fluctuations in the

exchange relations and periodical crises. But these crises happen only

because in the expansion of production the proper proportions are not

maintained, because, that is to say, the proportions of 'diagram No. 2'

are not observed in the first place. If they were, there would be no

crisis, and capitalist production could get along as nicely as it does

on paper, in every detail. Tugan Baranovski is committed to the view

that we can ignore the crises if we consider the reproductive process as

a continuous process. Although the 'proportion' may be upset at any

moment, yet on average it will always be re-established by different

deviations, by price-fluctuations from day to day, and in the long run

by periodical crises. That on the whole this 'proportion' is more or

less maintained is proved by the fact that capitalist economy is still

going strong--otherwise it would long ago have ended in chaos and

collapse. In the long run, then, Tugan Baranovski's 'proportion' is

observed by and large, and we must conclude that reality obeys 'diagram

No. 2'. And since this diagram can be indefinitely extended, it follows

that capitalist accumulation can also proceed _ad infinitum_.

What is striking in all this is not Tugan Baranovski's conclusion that

the diagram corresponds to the actual course of events--as we have seen,

Bulgakov also shared this belief; the really startling fact is that

Tugan Baranovski sees no necessity for as much as _inquiring_ whether

the diagram is correct, that, instead of proving the diagram, he

considers this, the arithmetical exercise on paper, as proof of the

actual state of affairs. Bulgakov honestly tried to project Marx's

diagram on the real concrete relations of capitalist economy and of

capitalist exchange; he endeavoured to overcome the difficulties

resulting from it, though without success, it is true, remaining to the

last involved with Marx's analysis, which he himself recognised to be

incomplete and fragmentary. But Tugan Baranovski does not need any

proof, he does not greatly exercise his brains: since the arithmetical

sums come out satisfactorily, and may be continued _ad lib._, this is to

him proof that capitalist accumulation can also proceed without let or

hindrance--provided the said 'proportion' obtains, which it will have to

do by hook or by crook, as he himself would not dream of denying.

Tugan Baranovski, however, has one indirect proof that the diagram with

its strange results corresponds to, and truly reflects, reality. This is

the fact that capitalist production, quite in accordance with Marx's

diagram, puts human consumption second to production, that it conceives

of the former as a means and of the latter as an end in itself, just as

it puts human labour, the 'worker', on a par with the machine.

'Technical progress is expressed by the fact that the means of labour,

the machine, increases more and more in importance as compared to living

labour, to the worker himself. Means of production play an ever growing

part in the productive process and on the commodity market. Compared to

the machine, the worker recedes further into the background and the

demand resulting from the consumption of the workers is also put into

the shade by that which results from productive consumption by the means

of production. The entire workings of capitalist economy take on the

character of a mechanism existing on its own, as it were, in which human

consumption appears as a simple moment of the reproductive process and

the circulation of capitals.'[324]

Tugan Baranovski considers this discovery as a fundamental law of the

capitalist mode of production, which is confirmed by a quite tangible

phenomenon: with the progress of capitalist development Department I

goes on growing relatively to, and at the expense of, Department II. It

was Marx himself who, as we all know, set up this law in which he

grounded the schematic exposition of reproduction, though in the further

development of his diagram he ignored subsequent alterations for

simplicity's sake. This, the automatic growth of the producer goods as

compared with the consumer goods department affords Tugan Baranovski the

only objective proof of his theory: that in capitalist society human

consumption becomes increasingly unimportant, and production more and

more an end in itself. This thesis forms the corner-stone of his entire

theoretical edifice.

'In all the industrial countries', he proclaims, 'we are confronted with

the same type of development--the development of national economy

everywhere follows the same fundamental law. The mining industry which

creates the means of production for modern industry comes more and more

to the fore. The relative decrease in the export of immediately

consumable manufactured goods from Britain is thus also an expression of

the fundamental law governing capitalist development. The further

technical progress advances, the more do consumer goods recede as

compared with producer goods. Human consumption plays an ever decreasing

part as against the productive consumption of the means of

production.'[325]

Although this 'fundamental law' like all his other 'fundamental' laws,

in so far as they mean anything at all, is borrowed ready-made from

Marx, Baranovski does not rest content with this and immediately

proceeds to preach the Marxist gospel to Marx himself. Scrabbling about

like a blind hen, Marx has turned up another pearl--Tugan will give him

that--only he does not know what to do with it. It needed a Tugan

Baranovski to know how to make it useful to science, and in his hand the

newly discovered law suddenly throws a new light on the whole workings

of capitalist economy. This law of the expansion in the department of

producer goods at the cost of that of consumer goods reveals clearly,

concisely, exactly, and in measurable terms, that capitalist society

attaches progressively less importance to human consumption, putting man

on the same level as the means of production, and that Marx was

therefore completely wrong both in assuming that man alone, not the

machine, too, can be the creator of surplus value, and in saying,

further, that human consumption represents a limit for capitalist

production which is bound to cause periodical crises in the present, and

the collapse and terrible end of capitalist economy in the near future.

In short, the 'fundamental law' governing the increase of producer as

compared to consumer goods reflects the singular nature of capitalist

society as a whole which Marx had not understood and which to interpret

happily fell to the lot of Tugan Baranovski.

We have seen above the decisive part played by the 'fundamental law' of

capital in the controversy between the Russian Marxists and the

sceptics. Bulgakov's remarks we already know; another Marxist already

referred to, Vladimir Ilyin, expresses himself in similar terms in his

polemics against the 'populists':

'It is well known that the law of capitalist production consists in the

fact that the constant capital grows more rapidly than the variable

capital, that is to say an ever increasing part of the newly formed

capital falls to the department of social production which creates

producer goods. In consequence, this department is absolutely bound to

grow more rapidly than the department creating consumer goods, that is

to say, the very thing happens which Sismondi declared to be

"impossible", "dangerous", etc. In consequence, consumer goods make up a

smaller and smaller share of the total bulk of capitalist production,

and this is entirely in accordance with the historical "mission" of

capitalism and its specific social structure: the former in fact

consists in the development of the productive forces of society

(production as an end in itself), and the latter prevents that the mass

of the population should turn them to use.'[326]

In this respect, of course, Tugan Baranovski goes even farther. With his

love of paradox he actually permits himself the joke of submitting a

mathematical proof that accumulation of capital and expansion of

production are possible even if the absolute volume of production

decreases. In this connection, Karl Kautsky has pointed out, he had

recourse to a somewhat dubious scientific subterfuge, namely that he

shaped his daring deductions exclusively for a specific moment: the

transition from simple to enlarged reproduction--a moment which is

exceptional even in theory, but certainly of no practical significance

whatever.[327]

As to Tugan Baranovski's 'fundamental law', Kautsky declares it to be a

mere illusion due to the fact that Tugan Baranovski considered the

organisation of production only in the old countries of capitalist big

industry.

'It is correct', Kautsky says, 'that with a progressive division of

labour, there will be comparatively fewer and fewer factories etc. for

the production of goods direct for personal consumption, together with a

relative increase in the number of those which supply both the former

and one another with tools, machines, raw materials, transport

facilities and so on. While in original peasant economy an enterprise

that cultivated the flax also made the linen with its own tools and got

it ready for human consumption, nowadays hundreds of enterprises may

share in the manufacture of a single shirt, by producing raw cotton,

iron rails, steam engines and railway trucks that bring it to port, and

so on. With international division of labour it will happen that some

countries--the old industrial countries--can only slowly expand their

production for personal consumption, while making large strides in their

production of producer goods which is much more decisive for the

heartbeat of economic life than the production of consumer goods. From

the point of view of the nation concerned, we might easily form the

opinion that producer goods can be turned out on a constantly rising

scale with a more rapid rate of increase than in the production of

consumer goods, and that their production is not bound up with that of

the latter.'

The opinion, that producer goods can be produced independent of

consumption, is of course a mirage of Tugan Baranovski's, typical of

vulgar economics. Not so the fact cited in support of this fallacy: the

quicker growth of Department I as compared with Department II is beyond

dispute, not only in old industrial countries but wherever technical

progress plays a decisive part in production. It is the foundation also

of Marx's fundamental law that the rate of profit tends to fall. Yet in

spite of it all, or rather precisely for this reason, it is a howler if

Bulgakov, Ilyin and Tugan Baranovski imagine to have discovered in this

law the essential nature of capitalist economy as an economic system in

which production is an end in itself and human consumption merely

incidental.

The growth of the constant at the expense of the variable capital is

only the capitalist expression of the general effects of increasing

labour productivity. The formula _c_ greater than _v_ (_c > v_),

translated from the language of capitalism into that of the social

labour process, means only that the higher the productivity of human

labour, the shorter the time needed to change a given quantity of means

of production into finished products.[328]

This is a universal law of human labour. It has been valid in all

pre-capitalist forms of production and will also be valid in the future

in a socialist order of society. In terms of the material use-form of

society's aggregate product, this law must manifest itself by more and

more social labour time being employed in the manufacture of producer

than of consumer goods. In a planned and controlled social economy,

organised on socialist lines, this transformation would in fact be more

rapid even than it is in contemporary capitalist economy. In the first

place, rational scientific techniques can only be applied on the largest

scale when the barriers of private ownership in land are abolished. This

will result in an immense revolution in vast provinces of production

which will ultimately amount to a replacement of living labour by

machine labour, and which will enable us to tackle technical jobs on a

scale quite impossible under present day conditions. Secondly, the

general use of machinery in the productive process will be put on a new

economic basis. At present the machine does not compete with living

labour but only with that part of it that is paid. The cost of the

labour power which is replaced by the machine represents the lowest

limit of the applicability of the machine. Which means that the

capitalist becomes interested in a machine only when the costs of its

production--assuming the same level of performance--amount to less than

the wages of the workers it replaces. From the point of view of the

social labour process which is the only one to matter in a socialist

society, the machine competes not with the labour that is necessary to

maintain the worker but with the labour he actually performs. In other

words, in a society that is not governed by the profit motive but aims

at saving human labour, the use of machinery is economically indicated

just as soon as it can save more human labour than is necessary for

making it, not to mention the many cases where the use of machinery is

desirable even if it does not answer this economic minimum--for reasons

of health and similar considerations, in the interest of the workers

themselves. However that may be, the tension between the respective

economic usefulness of the machine in (_a_) a capitalist, and (_b_) a

socialist society is at least equal to the difference between labour and

that part of it that is paid; it is, in other words, the precise

equivalent of the whole capitalist surplus value. Consequently, if the

capitalist profit motive is abolished and a social organisation of

labour introduced, the marginal use of the machine will suddenly be

increased by the whole extent of the capitalist surplus value, so that

an enormous field, not to be gauged as yet, will be open to the

triumphal march of the machine. This would be tangible proof that the

capitalist mode of production, alleged to spur on to the optimum

technical development, in fact sets large social limits to technical

progress, in form of the profit motive on which it is based. It would

show that as soon as these limits are abolished, technical progress will

develop such a powerful drive that the technical marvels of capitalist

production will be child's play in comparison.

In terms of the composition of the social product, this technical

transformation can only mean that, compared to the production of

consumer goods, the production of producer goods--measured in units of

labour time--must increase more rapidly in a socialist society than it

does even to-day. Thus the relation between the two departments of

social production which the Russian Marxists took to reveal typical

capitalist baseness, the neglect of man's need to consume, rather proves

to be the precise manifestation of the progressive subjection of nature

to social labour, which will become even more striking when production

is organised solely with a view to human needs. The only objective proof

for Tugan Baranovski's 'fundamental law' thus collapses as a

'fundamental' confusion. His whole construction, including his 'new

theory of crises', together with the 'lack of proportion', is reduced to

its foundations on paper: a slavish copy of Marx's diagram of enlarged

reproduction.

The Accumulation of Capital · 第 95 / 118 题