3. Profit

Whence does the capitalist class derive its income? The gains of merchant’s and lender’s capital consisted originally of the portions which they withheld from the property of those dependent on them, who might represent any of the various classes. It is otherwise with industrial capital. It so happens that in proportion as the capitalist system of production develops, the industrial form of capital overshadows all others and forces them into its service. Furthermore, it can do this only in so far as it returns to them a part of the surplus value which it has drawn from the workers. As a result of this development the surplus produced by the proletarians becomes more and more the only source from which the whole capitalist class draws its income.

As the small industrialist and the small farmer are disappearing and their influence upon modern society is felt ever less, so also are disappearing the old forms of merchant’s and interest-bearing capital, both of which made their gains by exploiting the non-capitalist classes. Already there are nations without independent artisans and small farmers. England is an instance in point. But no one can conceive of a single modern state without large production. Whoever desires to understand the modern forms of capital must proceed from the industrial form that capital has assumed. The real and increasingly important source from which flow capitalist gains is to be found in the surplus value produced by capital industry.

We have in the preceding chapter become acquainted with the surplus value which the industrial proletarian produces and the industrial capital appropriates. We have also seen how the amount of the surplus value produced by the individual laborer increases at a more rapid rate than does his wage; this is brought about by the increase in the amount of labor, introducing labor-saving machinery and cheaper forms of labor. At the same time there is an increase in the number of proletarians. So the amount of the surplus accruing to the capitalist class swells constantly more and more.

Unfortunately, however, “life’s unalloyed enjoyment is not the lot of mortal man.” However distasteful it may be to him, the capitalist is compelled to “divide” with the landowner and the state. And the share claimed by each of these increases from year to year.