[lbo-talk] Stock Markets vs the Real Economy

Julio Huato juliohuato at gmail.com
Tue Aug 9 12:51:42 PDT 2011


I know I'm abusing my posting privileges here, but I just thought this from Marx (Capital 1, ch. 15) may be of interest in the context of this thread:

"The increase of the means of production and subsistence, accompanied by a relative diminution in the number of labourers, causes an increased demand for labour in making canals, docks, tunnels, bridges, and so on, works that can only bear fruit in the far future. Entirely new branches of production, creating new fields of labour, are also formed, as the direct result either of machinery or of the general industrial changes brought about by it. But the place occupied by these branches in the general production is, even in the most developed countries, far from important. The number of labourers that find employment in them is directly proportional to the demand, created by those industries, for the crudest form of manual labour. The chief industries of this kind are, at present, gas-works, telegraphs, photography, steam navigation, and railways. According to the census of 1861 for England and Wales, we find in the gas industry (gas-works, production of mechanical apparatus, servants of . the gas companies, &c), 15,211 persons; in telegraphy, 2,399; in photography, 2,366; steam navigation, 3,570; and in railways, 70,599, of whom the unskilled "navvies," more or less permanently employed, and the whole administrative and commercial staff, make up about 28,000. The total number of persons, therefore, employed in these five new industries amounts to 94,145.

"Lastly, the extraordinary productiveness of modern industry, accompanied as it is by both a more extensive and a more intense exploitation of labour-power in all other spheres of production, allows of the unproductive employment of a larger and larger part of the working-class, and the consequent reproduction, on a constantly extending scale, of the ancient domestic slaves under the name of a servant class, including men-servants, women-servants, lackeys, &c. According to the census of 1861, the population of England and Wales was 20,066,244; of these, 9,776,259 males, and 10,289,965 females. If we deduct from this population all who are too old or too young for work, all unproductive women, young persons and children, the "ideological" classes, such as government officials, priests, lawyers, soldiers, &c.; further, all who have no occupation but to consume the labour of others in the form of rent, interest, &c.; and, lastly, paupers, vagabonds, and criminals, there remain in round numbers eight millions of the two sexes of every age, including in that number every capitalist who is in any way engaged in industry, commerce, or finance. Among these 8 millions are:

" PERSONS

"Agricultural labourers (including shepherds, farm servants, and maidservants living in the houses of farmers) 1,098,261

"All who are employed in cotton, woollen, worsted, flax, hemp, silk, and jute factories, in stocking making and lace making by machinery

642,607

"All who are employed in coal mines and metal mines 565,835

"All who are employed in metal works (blastfurnaces, rolling mills, &c.), and metal manufactures of every kind 396,998

"The servant class 1,208,648

"All the persons employed in textile factories and in mines, taken together, number 1,208,442; those employed in textile factories and metal industries, taken together, number 1,039,605; in both cases less than the number of modern domestic slaves. What a splendid result of the capitalist exploitation of machinery!"



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