In the Middle Ages the alchemists (the witch doctors of their day) spent much time searching for the philosopher’s stone. This stone if found was to change the base metals into gold. But their searching was in vain. They should have lived in the 18th, 19th and 20th centuries, when they might well have thought that their wishes had come true. In this period the wealth of a few increases and continues to increase without any effort on the part of those who own it. This surely must be the philosopher’s stone in action. But the explanation is a very different one—it lies in the formula M-C-M'.
This formula means money-commodities-MONEY, the second item “Money’’ being greater than the first. In this formula lies the explanation of capitalist production. The capitalists start with money which they change into commodities and back again into money—more money than they began with. Where does this extra money come from? The explanation is to be found in one of the commodities they purchase. This commodity is the labour power of the workers. This commodity, like all other commodities, is bought and sold at a price based on its value. This value is determined by the amount of socially necessary labour involved in the production of the food, clothing and shelter the workers must have in order to function as workers. And so the worker is not cheated on the sale of his labour power, or his wages. From a legal point of view it is a perfectly fair transaction. But this commodity labour power has a quality not possessed by any other commodity, which makes it to the capitalist the most treasured commodity of all. It can increase values beyond the value it contains itself. Other commodities can only transmit their own values into the commodities produced. Here then is our philosopher’s stone. And here also in the formula quoted above is the explanation of the world we live in. The formula, for example, explains wars. In order to bring in the extra amount of money shown in the last item of the formula the commodities produced have to be sold. The workers can only receive the amount their wages will purchase. And so there is an endless conflict between the various groups of world capitalist powers to find markets for the commodities produced by their workers. These conflicts lead to war.
This formula also explains the general and continued poverty of the working class. The workers can never obtain more than the value of their labour power. This means that they can only receive back a portion of what they produce. The part left over, which we socialists call surplus value, belongs to their masters. And so while workers may not be destitute, yet compared with a few, the capitalist class, they are poor. This formula also explains the intensification of exploitation. The capitalists must find markets in competition with their rivals. Production must be cheapened, and the only way to cheapen production is by lessening the labour time involved. And so we have speeding up. The formula given above explains all of the attributes of the capitalist system of wealth production.
The alchemists never solved this problem. They were unable to find the philosopher’s stone which would change base metals into gold. But we have found out how it is possible for wealth to increase under capitalism while the condition of the working class remains unchanged. And now we must take the next step. The next step is to bring about a state of affairs in which the formula M-C-M' ceases to exist—in other words Socialism, so that those who produce may enjoy the fruits of their labour. For the bringing about of that we invite the co-operation of each member of the working class. The working class must do that—we cannot do it for them. If we could we should have done it long ago.
And now—how will things be produced under Socialism? In the first place there will be no commodities—that is things produced primarily for sale. In fact there will be no buying or selling, and because of this no money. The one test for production will be the satisfaction of human needs.
There are those, of course, who argue against us that when we can have anything we want people will make pigs of themselves, but the pig turns away from the trough when he has had enough. But all of these arguments arise from the conditions we live under now. No member of the working class has enough. His needs are never satisfied. Given conditions where needs can be satisfied then mankind will take what is needed and leave the rest.
There are of course many other arguments put forward against Socialism, which space precludes us from dealing with here. We would say, however, that it is worthy of your serious consideration. Get to grips with the problem and you will soon be on our side.
Clifford Groves
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