How to Make Your Money Work for You, According to Karl Marx (Part 2: Exploiting Labour)

Part 1: Purchasing Labour

With two little boys at home, I don’t get out much, so a visit to a new craft brewery in Niagara was an exciting event. Playing it safe, I opted to start with the IPA. It had a nice grapefruit and tangerine aroma that lead into hints of tropical fruit notes followed by a slightly over the top bitterness. There was more than enough potential in this first beer to convince me to purchase a variety of tall cans. In the process of the exchange, I got chatting with the owner who was excited about the growing craft beer movement in Ontario but was worried that the ambition of a few breweries had elevated their production levels beyond the “craft” status. Relaying this story to a friend, I was told that any beer was craft so long as it wasn’t owned by InBev — the corporation responsible for almost 50% of the beer produced in North America that had generated revenue of about 47.06 billion U.S. dollars worldwide in 2014. Bubbling under the surface of the Niagara craft brewer’s concern was, well, beer. He was concerned that the larger the operation, the more likely it was that the passion for beer is eclipsed by the motivation to make money.

In the last post, we learned that according to Marx the only way to generate original value is through labour, the trick that we have yet to discover is how a capitalist generates value using capital alone. This mystery, as we will discover, isn’t all that complicated: to generate value without imputing one’s own labour, the capitalist must exploit someone else’s labour-power. The trick is to find a way of accomplishing this feat without violating the rules of economic exchange.

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