El Capital

Capital, volume 1, Chapter 1.

Background:

The first chapter of Capital is both the most important, in that it introduces the basic concepts of Marx's theory of value, and the most difficult.

Marx first began to work out his theory of value in the Grundrisse (1857), but the discussion there is very convoluted and incomplete. The first version of Chapter One of Capital is to be found in the Critique of Political Economy (1859), whose first chapter is in many ways the best introduction to Chapter One of Capital. The discussion of the Critique differs in a number of ways from that of Capital:

i) In the Critique Marx does not make the fundamental distinction between value and exchange-value that is made in Capital

ii) in the Critique the argument has a much more 'Hegelian' flavour: the argument is entirely formulated in terms of the development of the contradiction between (exchange)-value and use-value

iii) the logical and historical development of the argument are both present, but are separated: a logical analysis is followed by a historical one, whereas in Capital the two are more closely integrated

iv) Marx devotes much more attention to money in the Critique (and in the Grundrisse) than he does in Capital, (the discussion of money in Capital refers the reader back to the Critique)

v) The explanation of the theory of value in the Critique is rather different from that in Capital. In the Critique the discussion of commodity fetishism is more closely integrated into the discussion of the theory of value and it is clear that for Marx it is the 'qualitative' rather than the 'quantitative' dimension that is important: i.e. the theory of value is a theory of the way in which, through money and exchange, private labours are brought into social relation with one another. In Capital the exposition emphasises the quantitative dimension first: the theory of value as a theory of the ratio in which commodities exchange, before discussing the qualitative dimension.

The version of the first chapter of Capital in the English translations is a revised version that first appeared in the third German edition. In the first two editions the first chapter was shorter (roughly the first two sections of the later version and shorter versions of the third and fourth sections), and there was also an Appendix on 'The form of value' that was integrated into the third section in the rewrite. The change was made in an attempt to make the first chapter more comprehensible but it does introduce some differences in emphasis. (A translation of the first version of Ch. 1 and the Appendix is published, in a very tortuous translation, in Value Studies by Marx (A. Dragstedt, ed.). A much better translation of the Appendix has been published in Capital and Class, 4, 1978.)

Chapter One of Capital offers us a sociological theory of the market. Marx does not see the market simply as an institution in which individuals meet to exchange commodities, to be understood in isolation from the production of commodities, for exchange itself has implications for production. It is through the price mechanism that apparently independent producers are persuaded to produce in accordance with social needs: if too much of a commodity is produced, the price falls and less will be produced: producers will direct their labour into the production of other goods.

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