New York University
November 26, 2012
Platypus Review 56
..Loren Goldner | David Harvey
Andrew Kliman | Paul Mattick
Last autumn, chapters of the Platypus Affiliated Society in New York, London, and Chicago hosted similar events on the theme of “Radical Interpretations of the Present Crisis.” The speakers participating in New York included Loren Goldner, David Harvey, Andrew Kliman, and Paul Mattick. The transcript of the event in London appeared in Platypus Review 55 (April 2013). What follows is an edited transcript of the conversation that PAS-NYC hosted on November 14, 2012 at the New School.
Loren Goldner: The title of my talk tonight is “Fictitious Capital and Contracted Social Reproduction.” It is important to note that as we convene tonight, there are general strikes across the southern flank of Europe, the miners’ strikes in South Africa, and at least 50 strikes a day in China. While we convene to talk about the crisis, there are people in motion trying to do something about it.
Marx writes in his Grundrisse, “Capital itself is the moving contradiction, [in] that it presses to reduce labor time to a minimum, while it posits labor time, on the other side, as sole measure and source of wealth.” Unpacking that one sentence can get us very far in understanding the crisis and the history of at least the last hundred years.
Capital can be broken down into Marx’s categories: surplus value (s), variable capital (v), and constant capital (c). Within constant capital there is a breakdown into (i) fixed capital, which refers generally to machinery and tools, and (ii) circulating capital, which refers to things such as raw materials.
With these categories I would like to address the question of fictitious capital, which I define as claims on the social wealth and social surplus that correspond to no existing social surplus. The origins of fictitious capital are the advancing productivity of labor in capitalism, which is an anarchic system, one that is constantly devaluing the constant capital invested by the capitalist class. Capital volumes 1 and 2 describe a pure capitalist system, in which there are only two social classes: the wage-labor proletariat and the capitalist class or the bourgeoisie. Other classes enter the picture, for instance peasants, in the long historical chapter on accumulation. But Marx is trying to set up a pure model and then move on to the more everyday appearances of the system. Continue reading