V (1)

Karl Marx' fallacies leave out of account the existence of raw material. Undoubtedly the truism to which he appeals, that that which is greater than a particular magnitude cannot constitute a portion of such magnitude, is applicable to all raw material, which is incapable by itself of producing any profit. If it is not used it even runs the danger of deteriorating, and the capital employed in acquiring it would lose its utility.

But raw material, when brought into contact with other raw material and worked up by means of plant, is transformed into a product, and what is the value which such product acquires? Surely that which is given to it by the consumer who requires it and whom Karl Marx suppresses in order to establish his fallacious argument.

And now what is the part allotted to human labour? The capitalist takes charge of it and provides it with the raw material and the plant necessary to bring it into play, and receives from it either services or products for which he pays, and this payment we call wages. Plant, raw materials and wages result in the production of a commodity, and it is the difference between the net cost and the price at which this commodity is sold which constitutes the profit.