Marx starts by making a few things clear. It was thus the same as he later meant by value. In Wage-Labour and Capital Marx uses it to mean cost in terms of the total amount of labour required to produce it, including the part the capitalist did not need to pay for, i.e. what they have to pay for raw materials, labour-power, energy, wear and tear, etc. In Capital Marx used the term to mean what it costs the capitalist to produce a commodity, i.e. Engels, however, did not point out – and change – the different sense in which Marx employed the term “cost of production” in 1847 compared with later.

Engels re-issued it in 1891 but with certain changes to take into account Marx’s advances in economic theory after 1847, in particular the distinction between “labour” and “labour-power” which was not made in the original version. Written by Marx towards the end of 1847, it was aimed to be a popular exposition of the basics of how capitalism functioned and the subjugation of wage labour. Wage Labour and Capital is one excellent example of just such a classic. Their power to slice through the fog of mystique, confusion and distortion which passes for contemporary news and commentary can be both astonishing and inspiring. Their works may not be particularly easy reading – but newcomers may be pleasantly surprised how easy they can get into them – but they were written by people who were active participants – as well as commentators – in 19th century working class struggle and who were passionate and eloquent in their commitment and analysis. In fact, some hold that the development of capitalism has accorded even more closely with their basic analysis than was perhaps the case at the time. Writing during the earlier phases of capitalism’s development and working to get a handle on the whole phenomenon, their writings provide a clarity and a perspective on capitalism and the need for workers to replace it by socialism, rarely achieved since. Nonetheless, there is enormous value to be gained from studying the classical works of Marx and Engels. Marxism itself has been defined as the distillation of all the lessons and understandings gained from working class struggles against capitalism, expressed in a scientific manner. The whole point of a scientific approach to politics and economics is that it is based on facts, evidence and objective testing and reassessment. This is not to say that we think Marx and Engels were correct on every subject then, still less now. The Socialist Party can be described as a Marxist party, in that it recognises the immense contribution made by Karl Marx and Frederick Engels in the 19th century in developing a scientific understanding of capitalism as a distinct and transient society, one which was historically progressive in its time, but which is now outdated and needing to be replaced.

Marx wage labor and capital