ഗ്രണ്‍ഡ്രിസെ പഠനം – 8

circulation realizes value in the market and living labour creates value in production.
capital is about the contradictory unity between production and realization. production and circulation.
main thesis is at p595
p678.

3 fold character or mode of circulation
in totality they coexists together interfere with each other.

1. total process of circulation.
circulation goes on money capital -> commodity -> production -> market -> money
at each point in the circulation marx calls capital get fixated.
in money form, it can do only what money can do. in commodity form it can do what commodity can do. etc

what can be done with capital depends on the moment.

2. small scale circulation between capital and labour capacity. how labour power circulating in the system. fixing labourer in the circulation process.
reproduction of labour power means reproduction of labourer. labourer get reproduced and take a use value, the power of creating value into the market and serves that power to the capitalist. capitalist buys that. labourer moves into production and gives out the power of creating value to the capitalist. in return labourer gets money. money used to purchase those commodity that keeps the labourer alive.
this is CMC circulation process. aim of this exchange structure is the exchange of use value. labourer pays the use value of being able to work and create value in order to get the money to buy the commodity that allow the labourer to live. so the labourer can reproduce the labour power is the end point exchange. since this is exchange of use value, it is qualitative shift. the labourer has the power to work and labour and gives up that power in return for commodity that allow the labourer to live.
[7:00]
this is a commodity exchange. money mediates that. so wage is a mediator of this commodity exchange. cmc circuit.
there is mcm circuit. it is completely different than cmc.
if you exchange money for money, then there is no point in exchange. means use value is not significant. the quantity is significant.
a qualitative exchange of cmc to quantitative mcm.
mcm+dm

3rd form of circulation. large scale circulation. it is circulation of fixed capital.
machine. it stays in the production. infrastructure, urbanization etc.

3 circulation processes.

p673.
[12:00]
4 pages.
very difficult what marx trying to fully trying to do with it.
main arg is clear – the value of labour power establishes the exchange value of the power to create value and capitalists buys that power of labour power. and uses it in production to create surplus value. in return labour get money. they goes to market and as a buyer they buy commodities that allows them to reproduces their life.

worker’s consumption.
p.676. “in circulation …
payment of wages…

Marx looking at here the circulation process of reproduction of labour power.
with the wage labourer goes to grocer and choose which commodity to buy
in a sense we see its looks like a certain autonomy in the part of worker is not autonomous. that circulation is inside the grand circulation of capital.
it is an illusion that this circulation process is outside of circulation of capital.

p.601. reverrent chamers… economic cycle.

[23:00]

labour process can be interrupted.
agriculture – time of labour is short. but production time is long.
moments certain production – capital lies follows ??, and labour stand still. no value is created in that time. value is only created when living labour is applied. living labour time is involved . very different from actual production process
turn over time
capital going to be fixated. or stuck is some particular form. it cannot move and perform the role as capital as value as motion.
p. 618. circulation in general.
circulation time
cost of circulation
[30:00]

p619. 620
how long it take to get back to the original money capital.
this is not a cycle. it is a spiral. an expanding circle. because its producing surplus value.
circulating capital is therefor is not a particular form of capital but rather capital itself.
capital is the process is the motion is total circulation process. circulating capital is capital itself.
so its the unity of production and realization process.
negation of itself?
[35:00]
when capital is in money form it is fixated as money. it may have difficulty in moving.
the process is not smooth continuous at all. at each moment, there can be blocks.
money spent on corn field is fixated.
when fixating it is negating the continuity. it is not capital at that time. non circulating capital. fixed capital. p620 he says he is talking about fixated capital.
reserve money in bank is a fixated capital. commodities in the shelfs. so these are not value in motion.
the process is spiral. moments in that is the moments of fixation.
capital tries to overcome the fixation as quickly as possible.
by trying to diminish the amount of fixated capital you can create more capital and surplus value.
this get into trouble.
p621. (p544 as the subject moving)
[40:00]
circulating capital get fixated. fixated capital then circulates.
dormant capital.
source of crisis.
in crisis money gets immobilized in the hands of bankers.
circulation process is the unity of what is circulating and what is fixated
p622. one part of capital is tied down and other part is circulating.
large inventory had big fixated capital. just in time inventory reduces that to 0. but build infrastructure and transportation.
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reduce amount of fixated capital.
just in time inventory.
p623. barriers in production based on capital.
credit system came in destructive way to reduce these barriers.
temperality.
circulation is not costless.
value and surplus value cannot be created in circulation. you can appropriate or realize more value by faster about it. its part of history of capital is about. regulating circulation time, accelerating circulation time, accelerating turn over time, reduce fallout period.
p627
[50]
some of value created directly proportional to labour time inversily proportional to circulation time.
if you accelerate circulation, or shorten turn over time you can create greater mass of surplus value.
no of time you goes though the process depend on circulation time/turn over time.
p628 (551)
this is the nature of production based on capital. circulation time becomes a determinant moment for labour time for creation of value.
The independence of labour time is thereby negated, and the production process is itself posited as determined by exchange,

It is the necessary tendency of capital to strive to equate circulation time to 0; i.e. to suspend itself,

p630 ()

magnitude of the capital can be replaced by the velocity of turnover, and the
velocity of turnover by the magnitude of the capital.

(554)
Circulation time only expresses the velocity of circulation; the velocity of
circulation only the barrier to circulation. Circulation without circulation
time – i.e. the transition of capital from one phase to the next at the speed of
thought – would be the maximum, i.e. the identity of the renewal of the
production process with its termination.
[55]
633
necessary cost.
reduce

In so far as they reduce these faux frais, they add to production, not by creating value, but by reducing the negation of created values.
dead capital is negated capital.

transport on 635
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tension between adequate resources and risks of disruption like striking workers.
p 637.
3. currency, 4. credit system
credit system has important role in smoothing out the turn over time, when accelerated turnover time is necessary.
p 638.
circulation.
[1:05]
circulation is not external. it is capital same as in production.
have to see capital as a unity of production and circulation.
capital as a total circulation process. circulation used in 2 senses. 1. circulation as a whole within which production is one moment in that circulation process. 2. circulation in the market is second meaning.
positing of whole process.
[1:10]
circulation process as a whole is a unity of production and circulation.
within the production process the capitalists exercises total control. dont have total control in circulation process. conditions of market. anarchy of market exchange. consumer desire.
p.639
p.640
circulation process of labourers. labour power.
p.645 fixed capital and circulating capital.
[1:15]
1. fixed capital doesnt circulate in material way.
a large machine in a factory. used as means of production. but it is not consumed in the production process. sawing machine does not end up as shirt in cotton factory. it is does not materially transferred into shirt. cotton is is transferred to shirt.
2. fixed capital will last more than one turn over cycles.
say 15 years it is continuously owned by capitalist.
marx says, end up in a fiction. value of machine is transferred into value of product even though there is no material transfer. how much is transferred? there is a depreciation process.
there are other elements of production process like machine. but do not have characteristics staying inside the production process multiple turn over cycles. they are consumed immediately. they also have value transferred which is not a physical value.
eg, energy.
[1:20]
energy is not converted into cotton and into shirt.
value of energy in one year will be spread over all the shirts made in that year.
fixed capital is consumed slowly.
p.648
circulating fixed capital is a big issue.
competition for better machine.
[] how circulation of fixed capital happens?
[1:25]
by competition its not individual get freed, but capital is set free.
free competition.
free movement of capital ricardo.
capitalist system want competition. but capitalist dont like competition. they try to avoid competition.
ruining competition is stopped by state.
final result of competition is some kind of monopoly.
[1:30]
monopoly coming out of competition.
this is a dissolution of mode of production resting on competition.
negation of free competition is a negation of individual freedom is a crazy idea.
this kind of individual freedom is a suspension of all kinds of individual freedom.
[1:35]
marx was critical against malthuse
malthuse – poverty of masses comes out of natural processes.
marx – poverty of masses because of wage labour system.
fixed capital and general intellect – high points of grundrisse.
wonderful stuff p680-711
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reducing circulation time to 0, then the turnover time also reduced to 0.
reduction of consumption time, marketing time 0.
eg netflix.
instantaneous consumption.
barrier to consumption will not be significant.
1890s knife and fork dh uses still.
so much of the consumption in our contemporary society is experiential rather than things.
we are now consuming experience. international tourism,
[1:43]
in netflix consumption time is very very short.
lot of consumption happening now is experiential, rather than things. we consume experience. international tourism. sports events, netflix series.
the impulse to reduce circulation time is defining way of life
mode of consumption is almost instantaneous. capital accumulation needs new vehicles to accelerate the circulation of capital.
Q1.
product differentiation
capital tries to avoid competition through product differentiation (each product is to be different).
you think that there is infinite variety of shampoo, each one has special quality etc. but there is a limit to product differentiation. there is limit you can push the reputational value