Suppose you need a trench dug. It needs to be 50 centimetres deep, 120 centimetres wide and 30 metres long. You’ve never had to undertake such a project before. You have a choice of tools: pointed stick, shovel or back hoe. It would take you no time to learn how to use the pointed stick, a small amount of time to learn how to dig with a shovel, but learning how to use the backhoe would take you a substantial amount of time. What would you choose to do?
Now, think about this. You have a choice. You can mobilize 1000 people to dig your trench, 100 people to dig it with a shovel or 1 person to do it with a backhoe. All three of these options would take exactly the same amount of time. What would you choose to do?
I know what I would do in this situation. I’d hire the guy with the backhoe. I wouldn’t for a minute contemplate hiring 1000 people with pointed sticks to dig my trench. That’s because it’s realistic for me to make this decision in the time and place in which I live. Obviously, if I lived 30,000 years ago, I would not have the option of using a backhoe. A pointed stick would be my only option and I would easily be able to mobilize all the help I need among my tribal members.
It seems like a no-brainer to think that history has been a steady progress towards more and more sophisticated technology: pointed sticks to shovels to backhoes. However, not everything is what it seems. Let’s see what this situation looks like for someone starting from scratch. Let’s make the scenario really simple. Let’s have you dig a trench 3 metres long, 30 centimetres deep and 20 centimetres in width.
The pointed stick is indeed a very simple tool and can be gotten with very little effort, sometimes by just picking one up off of the ground under a tree. Simple tools like this allow a person to get right down to work. A little sharpening with a sharp rock might help if an already pointed stick couldn’t just be found, and some hardening over a fire could make the tool more durable.
The shovel is a whole other thing. To make a shovel, even a fairly basic one, requires some wood and shaped metal, preferably a hard metal. So, while the person with the pointed stick is hard at work digging the trench, the person who has chosen to dig the trench with a shovel is looking around for a suitable piece of wood for the handle. That shouldn’t be difficult, although the wood may need some shaping. But then finding a suitable metal by mining will be more challenging. Extracting the metal from the ore by smelting then forging the metal and shaping it before fitting it on the handle will complete the project. Chances are pretty good too that more than one person will be involved in the making of a shove. There may be a specialist wood worker, a miner, a smelter and a blacksmith. By the time the shovel is ready for work, the pointed stick wielding worker may well have finished digging his trench.
The backhoe is hopeless if the challenge is to start from scratch. The guy with the pointed stick would have already cut half a million trenches in the time it would take a person, or even an army of people, to build a backhoe from scratch.
The Social Character of Human Production
What this all means is that human labour must always be assessed in its social context. All of the tools mentioned above have a certain amount of labour in their making. The sum total of the time it takes to dig a trench with a pointed stick, a shovel or a backhoe is only part of the story. The time it takes to fashion said tools must also be taken into account when calculating the time it takes to make something or accomplish a particular task. The labour embedded in the tool prior to when the digging actually starts is called crystallized labour or dead labour because it’s no longer active, having already played its part in creating the necessary tools to do the job. There is very little crystallized labour in a pointed stick, a lot more in a shovel, and a massive amount more in a backhoe. So, which tool is the most efficient? It depends on the social conditions under which the task is undertaken.
The reality is that the more sophisticated the tool, the more crystallized labour contained in it. In the case of the backhoe, there are centuries of accumulated knowledge, techniques of raw material acquisition, processing, shaping and assembly probably including thousands of workers in many parts of the globe over many, many years. It also includes the work performed in the petrochemical industries that bring the machine alive so it can perform its duties. The pointed stick and the shovel have no need for extraneous inputs in their operation. Of course, once a backhoe exists it can, with one operator and enough diesel fuel, cut in a month as many trenches as a person with a pointed could cut in a lifetime.
The crystallized labour included in any tool is part of the necessary capital required to produce anything. The tools themselves are capital. Another thing: the amount of capital necessary to produce the backhoe is social capital. It’s taken masses of people centuries to come up with the backhoe. It’s not the work of any single individual. A major aspect of this process is that pooled capital is subject to appropriation by people who organize the productive process but who don’t actually produce anything themselves as individuals. A backhoe is a product of the accumulation of capital and its control by a small minority of the population. So, historically what has happened is that the productive forces, particularly the tools and knowledge needed to make things happen have been increasingly socialized then privately appropriated. That’s history, folks. But what exactly does appropriation mean?
Appropriation means that ownership of the means of production has historically been privatized or concentrated in the hands of a few individuals as soon as there appeared the need for a division of labour or specialization in the productive process. The objective of appropriation early on was to remove control over the process from the people who actually used the tools and did the work. Frederick Winslow Taylor, in the early 20thCentury, created scientific management, a process whereby specialized workers, craftsmen, were removed as active agents in the factory to be replaced by managers who broke down the productive process into its constituent parts assigning workers, now disenfranchised, to accomplish just one task along an assembly line. Workers no longer individually created products but contributed only to one task in the process of the creation of a product. The quintessential expression of scientific management early on was implemented by Henry Ford in his assembly-line production of automobiles.
Workers were not too pleased about having their control over the productive process wretched from their large calloused hands so the early 20thCentury featured some of the most active labour protests and strikes in history. Needless to say, the process by which control over production shifted from workers to owners and managers started much earlier than in the 20thCentury as did labour strife. Regardless, the 20thCentury has proven to be THE century of capital’s monopolization of the productive process. In doing so, it has broken down the production of commoditiesinto specialized activities and has globalized the process, a situation made possible by shipping containers, cheap air transport, the internet, just-in-time production tied to supply chains, and the vassalization of countries.It’s clear that the few individuals and the organizations they represent who control global wealth are finding it increasingly difficult to find effective investments. The reasons are simple in conception but complex when aggregate global capitalist activity is considered.
A Shrinking Rate of Profit
As Marx noted, the only way a capitalist can make a profit through surplus value is by not paying his workers full value for their labour. In fact, profit is essentially the appropriation of unpaid wages. Veblen contested this Marxian notion in his The Place of Science in Modern Civilizationbecause, as he argued, who says workers deserve the right to the full value of their labour. Nevertheless, it’s still true that for many millennia human production has predominantly been a social affair so why shouldn’t we all share equally in what we produce? Well, we could and we might still, but we haven’t to date except for the odd ‘primitive’ situation millennia ago or in more and more marginalized indigenous tribal situations today.
So, as we carry on today with increasing automation, computerization, AI, and technological innovation, the margins of profit continue to shrink because the more capital or dead labour is used in the productive process, the less room there is to extract surplus value from the process and make a profit. If, for example, Macdonald’s were to successfully replace all of its workforce with robots, it would find it more and more difficult to make a profit by paying its workforce less than the value that it produces. And, of course, robots don’t buy hamburgers, don’t pay taxes. The value of labour embodied in them as capital will allow for some profit to be extracted from the business of making hamburgers, but that basis for the creation of profit will quickly dry up. As the graph below shows, the amount of capital expended in the productive process is increasing historically while the share of labour in the process is steadily decreasing and/or devalued. Where we are along this process is anyone’s guess but I’m certain that we’re well past the midpoint and probably closing in on the far right side of the graph.
So, as workers we have been systematically excluded from ownership and control over the productive process. Still, Marx found reason to be optimistic about the future. That’s the subject of my next post.
These estimates are completely arbitrary of course but are included to approximate the variation in values that are obvious in the scenario introduced.
Vassalization: My word for the process by which the finance capitalist global oligarchy has come to treat countries. Certainly, since the 1970s but as a process going back to at least Bretton Woods, finance capital has turned countries or nation-states into vassals. From this perspective, countries are no longer sovereign or democratic, but instead are subordinate managers of the working class and guarantors of private property and private accumulation of capital.