There's nothing wrong with the calculation. What's happened is that productive capital 
has spread from the "center" to the "periphery" (here, Haiti), so that the first type 
of surplus-value creation is occurring on almost a world scale. 

------------------------
Jim Devine [EMAIL PROTECTED] &  http://bellarmine.lmu.edu/~jdevine




> -----Original Message-----
> From: g kohler [mailto:[EMAIL PROTECTED]
> Sent: Sunday, November 09, 2003 2:15 PM
> To: [EMAIL PROTECTED]
> Subject: [PEN-L] sweatshop surplus-value
> 
> 
> further to the dicussion on surplus-value etc - and thanks for your
> comments! - and using Jim Devine's expression (below) of 
> "pool of global
> surplus-value", QUESTION: what does a worker in a sweatshop 
> factory in Haiti
> contribute to the pool of *global* surplus-value (SV)?
> 
> My example is from a labour education film. The women work in 
> a textile
> factory in Haiti, making sweatshirts. The wage is 0.70 US 
> dollars per hour
> (70 cents). One woman sows over 1,000 sweatshirts per day. 
> The factory is
> owned and run by a local Haitian entrepreneur. The 
> sweatshirts are shipped
> to the Disney chain in USA (and have a Mickey Mouse picture 
> in front). The
> US retail price for one shirt is US$18.00. (When the workers 
> heard about
> that price, they laughed in disbelief.)
> 
> To make the example more precise, it would be nice to know 
> the wholesale
> price that the Haitian entrepreneur receives when shipping 
> the shirts to
> Disney. For argument's sake I assume that the wholesale price 
> FOB at the
> Haitian border is one dollar per shirt.
> 
> (a) calculation of SV within Haiti -
> 
> (a1) materials - assuming 60 cents per shirt: 1000 * $0.60 = $600
> 
> (a2) labour in Haiti - 8 hours of labour @ $ 0.70 = $5.60 for the day
> (overtime not paid).
> 
> (a3) Haitian wholesale receipts FOB - 1000 * $1.00 = $1,000
> 
> (a4) SV Haitian side = a3 - a1 - a2 = $394.40
> 
> What is wrong so far? One woman receives $5.60 for the day 
> and produces $394
> of SV ? (From the film example, it was not clear whether the 
> 1000+ shirts
> per day were sown by one woman or, perhaps, by two in 
> sequence, working as a
> team?)
> 
> (b) calculation of SV within USA -
> 
> (b1) materials on entering USA (= a2 = products leaving Haiti 
> at wholesale
> price) = 1000 * $1.00 = $1000
> 
> (b2) USA retail receipts 1,000 * $18.00 = $18,000
> 
> (b3) labour in USA - hard to say, I assume 33 percent of 
> retail price -- 1/3
> * $18,000 = $6000
> 
> (b4) SV US side = b2 - b1 - b3 = $ 11,000.00
> 
> What else is wrong so far?
> 
> (c) global aggregation
> 
> (c1) pool of global SV generated = a4 + b4 = $11,394
> (=SV Haitian side + SV USA side)
> 
> The woman received $5.60 for the day and contributed $11,394 
> to the global
> pool of surplus-value.
> 
> Grotesque. What is wrong with the calculation, or is it that 
> grotesque?
> 
> Gernot Kohler
> 
> 
> 
> in reply to:
> 
> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> 
> 
> =?utf-8?Q?RE=3A_=5BPEN-L=5D_Gernot_K=C3=B6hler_on_Man?=
> 
> =?utf-8?Q?del/Brenner?=
> 
> by Devine, James
> 
> 08 November 2003
> 
> It seems to me that there are _three_ forms of surplus-value being
> discussed.
> 
> 
> (1) "standard" Marxian surplus-value, i.e., the excess labor 
> done beyond
> that
> 
> needed to cover the costs of hiring proletarians under the 
> capitalist mode
> of
> 
> production.
> 
> 
> (2) the surplus-product of exploited direct producers in 
> other modes of
> 
> production such as slavery and serfdom, which can be translated into
> 
> surplus-value. Back in 1850, for example, a slave in the US 
> South produced a
> 
> surplus-product which added to the pool of surplus-value of the global
> 
> capitalist social formation.
> 
> 
> (3) pure transfer: looting of the periphery, which adds to the value
> 
> appropriated by the center and depletes value received by the 
> periphery at
> the
> 
> same time and by the same amount. There is no increase in the 
> global pool of
> 
> surplus-value.
> 
> 
> Obviously, these three are often hard to separate in the real 
> (empirical)
> 
> world, but these abstract concepts help us understand that world.
> 
> 
> As Doug notes, the question of how the surplus-value is 
> utilized is crucial.
> 
> Paul Baran also asked this question. Because the three types 
> of surplus get
> 
> mixed up, it's hard to come to a hard-and-fast conclusion, 
> but as a first
> 
> approximation I'd say that
> 
> 
> (1) the first type mostly goes to capitalist luxury spending and to
> accumulate
> 
> more fixed capital in the center, allowing the center to grow in power
> relative
> 
> to the periphery and the capitalists to grow in power 
> relative to the center
> 
> proletariat.
> 
> 
> (2) in the example of Southern US slave mode of production, 
> the part of the
> 
> second type of surplus-value that wasn't transfered to the 
> center (and to
> the
> 
> capitalist mode of production) went to slaveowner luxuries and to the
> 
> accumulation of slaves and land. It doesn't go to the kind of
> technologically
> 
> progressive industry that (1) goes to. This "progressive" is 
> defined in
> 
> capitalist terms, so that eventually the slave mode of 
> production would have
> 
> lost out to the capitalist mode of production in the 
> competition within the
> 
> capitalist social formation. In the meantime, the slave mode 
> is dominated by
> 
> the capitalist one within the social formation.
> 
> 
> (3) the third type helps the center at the expense of the peripherty,
> 
> reinforcing the internally-generated accumulation process of (1).
> 
> 
> Jim Devine
> 
> 
> 
> . . . snip>
> 

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