第1章

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。