The Capitalist Mode of Production: Understanding Capital in a Marxist Perspective

Marxism is a political and economic theory that seeks to understand and critique capitalist systems. One of the key concepts in Marxist theory is the capitalist mode of production. This article delves into the Marxist understanding of the capitalist mode of production, how it operates, and the social relations that underpin this system.

Capital and State Power: Beyond Economic Monopoly

Marxist theory argues that the rise of kings and queens was not a direct result of controlling the mode of production. Instead, these rulers gain power through control over violence and taxation. The state does not need to produce anything; it merely extracts production from the people through violence. As systems evolved, tax rates adjusted, ensuring the state's continued control. This reveals a historical precedence where military power preceded economic power, an observation Marx articulates when stating, "As capitalist were forced to give their property to the state through taxes and fees." Kings and queens did not require economic monopoly to maintain power; instead, they leveraged control over violence and taxation.

Modern State and Capitalism

Today, with the decline of gold as a currency, governments no longer rely on traditional taxation to seize private property. They can simply print money, allowing them to purchase goods and services from the private sector at will. Since government-issued currency is the only legally binding currency within a state, the private sector is beholden to sell to the government. Eminent domain laws and other enforcement mechanisms ensure these transactions, even going so far as to enforce labor through military recruitment and drafts.

The Expanding Nature of Capital

In Marxist terminology, capital as a self-expanding value encompasses more than just the dynamics of production and exchange. It represents a social relation, a process of capitalist exploitation of wage labor. Marx challenges the common notion that things like commodities, value, and money are mere static objects. For Marx, these constructs are social relations, and the capitalist mode of production is a manner of organization that encourages fetishistic thinking, the belief that these social relations can be reduced to tangible, material things.

The Commodity and Social Relations

Marxist theory highlights the commodity fetishism—the ideation that commodities have intrinsic, independent value. When a commodity such as porridge is seen on a shelf, its appearance as a material thing with a price tag can obscure the labor and social conditions that went into its production. Marx’s example illustrates that without understanding the social form under which labor is conducted, one cannot glean meaningful information about the production process. For instance, the labor involved in producing porridge could be performed under different conditions, such as slavery, serfdom, wage labor, etc.

For wealth to generally take the commodity-form, there must be a distinct social division of labor. A minority class (capitalists) possesses the means of production, while a majority class (wage workers) is employed in exchange for a wage. The fact that a commodity like porridge is available for purchase with money signifies the social relation of capital exploiting wage labor. This relation is masked by the commodity-form, leading to the normalization of capitalist exploitation.

Affirming the Structural Relations

The commodity’s price tag appears to relate intrinsic value, but in reality, it is an expression of a social process. Understanding this process requires looking beyond the surfaces to the underlying social relations. The Marxist perspective emphasizes the need to understand capitalism as a system of social relations, rather than a collection of static, material objects. This critical understanding can help individuals see beyond the obscure nature of capitalist exploitation.

Conclusion

The capitalist mode of production is a complex social relation, where the state and capitalists exploit wage labor through a system of commodification and value exchange. This exploitation is often normalized through the fetishistic belief that commodities and values have intrinsic, independent existence. By understanding capitalism as a process rather than a static condition, one can challenge and critique the underlying social relations that perpetuate exploitation.

Marxist theory offers a critical perspective that illuminates the hidden social relations within capitalist systems, advocating for a society where labor relations are fair and equitable.