MARXIAN POLITICAL ECONOMY 57 we assumed that the processes of circulation occur without interruptions; the assumption is convenient in so far as it enables us to concentrate on the process of production for now. Later., we will briefly, investigate the phases of circulation. We found that capitalist reproduction could be (logically) either simple reproduction or expanded reproduction. The former occurs when the entire surplus value is unproductively consumed, and the means of production at the disposal of society remain the same as before. Production can therefore be carried on only at the same level as before. Expanded reproduction occurs when a part of the surplus value, obtained from the inital total social capital, is reconverted into capital, that is, accumulated. For capitalist production to take place, there must be a prior division in society between a small group owning means of production and possessing moneyed wealth, and a large group of propertyless people compelled (and Tree9) to sell their labour power. The processes by which this division is brought about constitutes primitive or primary accumulation, discussed extensively by Marx, and later Lenin, Baran and others. As capitalist accumulation proceeds, the initial capital, as a component of social capital, recedes in importance. More and more of existing capital is nothing but past and present surplus value. In this way, the laws of private appropriation under (simple) commodity production—enrichment through one's own labour—are replaced by the laws of capitalist appropriation—enrichment through others9 labour. The working class reproduces and expands the power of capital over itself, the wealth of the capitalists, and its own bare livelihood and subordination. Bourgeois economists try to argue that the capitalists suffer the pains of^abstinence'in not immediately enjoying in consumption the entire surplus value, and that profits are a reward for ^abstinence'. The facts as we have seen, are quite otherwise. The bourgeoisie enjoys an ever rising standard of life, and it is the working masses that have often to st abstain" from the most elementary necessities. The magnitude of accumulation is determined by: (a) the division of surplus value between consumption and accumulation; (b) the productivity of labour; and (c) the degree of exploitation of labour. Advances in science and technology, and the elastic limits to the degree of exploitation, make the notion of social capital as being rigidly fixed, and of accumulation being rigidly determined, by the so-called ^labour-fund5', nonsensical. A V BALU (To be continued) 1 'Year5 refers to the period of production. For simplicity of exposition, we are assuming an average period of production fur social production as a whole. a Consumption of means of production in the labour process by productive labourers,