A great book. A lucid introduction to Marx. Easy to read and well structured.
Here are my reading notes.
# To Remember
- A lot of Marx's rhetoric comes from Hegel (a dialectic leading to historical progress)
- Marx was mostly wrong on his economic predictions
- He is to be treated as a philosopher more than an economist if we are to get value out of his thought
- For him, the really real was the economic powers that shape our societies
# Concepts
## Surplus Value
In classical economics, the capitalist hiring workers in a competitive market would have to pay their workers the exact same amount as the value they are getting from their work. But Marx did not see this: he saw capitalists exploiting workers and paying them the bare minimum. How could capitalists extract more value than the value given by each worker? The explanation uses the concept of surplus value.
Surplus value, according to Marx, is created by the capitalist when the value extracted from the worker is higher than the wage paid. This can happen when workers sell their capacity to work (paid per hour) rather than their output. If the workers are not in a position to bargain for a higher wage, then the capitalist pockets the difference between the output value and the wage paid.
## Dialectical Materialism
Marx never used that phrase but it came to denote his vision of history. He was a materialist: he held the view that all reality can be explained by matter and interactions of matter with matter. There is no other "substance".
The dialectical part comes in highly influenced by Hegel. Marx thought history progressed towards a state where humans would know absolute freedom—where self-contradictory capitalism would be replaced by a more consistent economic system.
## Alienated Labor
Marx calls labor alienated when the worker produces something for somebody else. The product of the work is taken away from workers. The work is considered a toil—there's no pride in it. And the relationship among workers is economic, not human.
Alienated labor is key to why Marx thinks capitalism is self-contradictory.
# Some Quotes
> More generally, Hegel and other German philosophers of the idealist school began from such conceptions as Spirit, Mind, God, the Absolute, the Infinite, and so on, treating these as ultimately real, and regarding ordinary humans and animals, tables, sticks and stones, and the rest of the finite, material world as a limited, imperfect expression of the spiritual world. Feuerbach again reversed this, insisting that philosophy must begin with the finite, material world. Thought does not precede existence, existence precedes thought.
> The final sentence points the way forward. First the Young Hegelians, including Bauer and Feuerbach, see religion as the alienated human essence, and seek to end this alienation by their critical studies of Christianity. Then Feuerbach goes beyond religion, arguing that any philosophy which concentrates on the mental rather than the material side of human nature is a form of alienation. Now Marx insists that it is neither religion nor philosophy, but money that is the barrier to human freedom. The obvious next step is a critical study of economics. This Marx now begins.
> That, in brief, is Marx’s first critique of economics. Since in his view it is economic life rather than Mind or consciousness that is ultimately real, this critique is his account of what is really wrong with the present condition of humanity. The next question is: What can be done about it?
> The solution is the abolition of wages, alienated labour, and private property in one blow. In a word, communism. Marx introduces communism in terms befitting the closing chapter of a Hegelian epic: "Communism… is the genuine resolution of the antagonism between man and nature and between man and man; it is the true resolution of the conflict between existence and essence, objectification and self-affirmation, freedom and necessity, individual and species. It is the riddle of history solved and knows itself as this solution."
> These are the essential points of ‘the first Marxism’. It is manifestly not a scientific enterprise in the sense in which we understand science today. Its theories are not derived from detailed factual studies, or subjected to controlled tests or observations.
The first Marxism is more down to earth than Hegel’s philosophy of history, but it is a speculative philosophy of history rather than a scientific study. The aim of world history is human freedom. Human beings are not now free, for they are unable to organize the world so as to satisfy their needs and develop their human capacities. Private property, though a human creation, dominates and enslaves human beings. Ultimate liberation, however, is not in doubt; it is philosophically necessary. The immediate task of revolutionary theory is to understand in what way the present situation is a stage in the dialectical progress to liberation. Then it will be possible to encourage the movements that will end the present stage, ushering in the new age of freedom.
> The eleventh thesis on Feuerbach is engraved on Marx’s tombstone in Highgate Cemetery. It reads: ‘The philosophers have only interpreted the world in various ways; the point is, to change it’ (T 158). This is generally read as a statement to the effect that philosophy is unimportant; revolutionary activity is what matters. It means nothing of the sort. What Marx is saying is that the problems of philosophy cannot be solved by passive interpretation of the world as it is, but only by remoulding the world to resolve the philosophical contradictions inherent in it. It is to solve philosophical problems that we must change the world.
> What is important is that Marx’s theory of history is a vision of human beings in a state of alienation. Human beings cannot be free if they are subject to forces that determine their thoughts, their ideas, their very nature as human beings. The materialist conception of history tells us that human beings are totally subject to forces they do not understand and cannot control. Moreover the materialist conception of history tells us that these forces are not supernatural tyrants, for ever above and beyond human control, but the productive powers of human beings themselves. Human productive powers, instead of serving human beings, appear to them as alien and hostile forces. The description of this state of alienation is the materialist conception of history.
> as Engels put it in his graveside speech: ‘mankind must first of all eat, drink, have shelter and clothing, before it can pursue politics, science, art, religion, etc.’ But if politics, science, art, and religion, once they come into existence, have as much effect on the productive forces as the productive forces have on them, the fact that mankind must eat first and can only pursue politics afterwards is of historical interest only; it has no continuing causal importance.
> The references to ‘mankind’s destiny’ and to England as ‘the unconscious tool of history’ imply that history moves in a purposive way towards some goal. (The whole paragraph is reminiscent of Hegel’s account of how ‘the cunning of reason’ uses unsuspecting individuals to work its purposes in history.)
Marx’s idea of the goal of world history was, of course, different from Hegel’s. He replaced the liberation of Mind by the liberation of real human beings. The development of Mind through various forms of consciousness to final self-knowledge was replaced by the development of human productive forces, by which human beings free themselves from the tyranny of nature and fashion the world after their own plans. But for Marx the progress of human productive forces is no less necessary, and no less progress towards a goal, than the progress of Mind towards self-knowledge is for Hegel.
> If this interpretation is correct the materialist theory of history is no ordinary causal theory. Few historians – or philosophers for that matter – now see any purpose or goal in history. They do not explain history as the necessary path to anywhere. They explain it by showing how one set of events brought about another. Marx, in contrast, saw history as the progress of the real nature of human beings, that is, human beings satisfying their wants and exerting their control over nature by their productive activities. The materialist conception of history was not conceived as a modern scientific account of how economic changes lead to changes in other areas of society. It was conceived as an explanation of history which points to the real forces operating in it, and the goal to which these forces are heading.
That is why, while recognizing the effect of politics, law, and ideas on the productive forces, Marx was in no doubt that the development of the productive forces determines everything else. This also makes sense of Marx’s dedication to the cause of the working class. Marx was acting as the tool – a fully conscious tool – of history. The productive forces always finally assert themselves, but they do so through the actions of individual humans who may or may not be conscious of the role they are playing in history.
> In a society based on the production of commodities there is, Marx says, a ‘mystical veil’ over these ‘life-processes of society’ which would not exist if we produced ‘as freely associated men’, consciously regulating our production in a planned way. Then the value of a product would be its use-value, the extent to which it satisfies our desires. Classical economists like Adam Smith and David Ricardo lifted the veil far enough to see that the value of a product (i.e. its exchange-value) represents the labour-time it took to produce it; but they took this as a law of nature, a self-evident necessary truth. On the contrary, says Marx, it bears the stamp of a society ‘in which the process of production has the mastery over man, instead of being controlled by him’.
> The realm of freedom actually begins only where labour which is determined by necessity and mundane considerations ceases.
> Marx, Engels, and later Marxists treat Capital as a contribution to the science of economics. Taken in this way it is open to several objections. For instance, Marx asserts that all profit arises from the extraction of surplus-value from living labour; machines, raw materials, and other forms of capital cannot generate profit, though they can increase the amount of surplus-value extracted. This seems obviously wrong. Future capitalists will not find their profits drying up as they dismiss the last workers from their newly automated factories. Many of Marx’s other theories have been refuted by events: the theory that wages will always tend downwards to the subsistence level of the workers; the theory of the falling rate of profit; the theory that under capitalism economic crises will become more and more severe; the theory that capitalism requires an ‘industrial reserve army’ of paupers; and the theory that capitalism will force more and more people down into the working class.
> It is a picture of human alienation, writ large as the dominance of past labour, or capital, over living labour. The value of the picture lies in its capacity to lead us to see its subject in a radically new way. It is a work of art, of philosophical reflection and of social polemic, all in one, and it has the merits and the defects of all three of these forms of writing. It is a painting of capitalism, not a photograph.
> mistaken that one can only wonder why anyone sympathetic to Marx would attempt to argue that his greatness lies in the scientific aspects of his work. Judged by the standards of Marx’s time, the gap between rich and poor has narrowed dramatically throughout the industrialized world. Though the gap has widened again in the last decade of the twentieth century, it is still nothing like what it was during the nineteenth century. This is largely because real wages have risen. Factory workers today earn considerably more than they need in order to remain alive and reproducing. The rate of profit has not gone into a steady decline. Capitalism has gone through several crises, but nowhere has it collapsed as a result of its alleged internal contradictions. Proletarian revolutions have broken out in the less developed nations, rather than the more developed ones.
> because we are not subject to deliberate interference by other humans, Marx says we are not free because we do not control our own society.
> The evidence is not yet all in; but we have enough to reach the provisional judgement that it will not be as easy as Marx thought to bring the conflicting interests of human beings into harmony.
> The tragedy of Marxism is that a century after Marx wrote these words, our experience of the rule of workers in several different countries bears out Bakunin’s objections, rather than Marx’s replies. Marx saw that capitalism is a wasteful, irrational system, a system which controls us when we should be controlling it. That insight is still valid; but we can now see that the construction of a free and equal society is a more difficult task than Marx realized.