J.D. Ponce on Karl Marx: An Academic Analysis of Capital - Volume 3: Economy Series, #3

By J.D. Ponce

This exciting essay focuses on the explanation and analysis of the third volume of Capital, by Karl Marx, one the most influential works in history and whose understanding, due to its complexity and depth, escapes comprehension on a first reading.
Whether you have already read the third volume of Capital or not, this essay will allow you to immerse yourself in each and every one of its meanings, opening a window to Marx's philosophical thought and his true intention when he created this immortal work.

• Language: English
• Publisher: J.D. Ponce
• Release date: Feb 26, 2024
• ISBN: 9798224543793

Book preview

J.D. PONCE ON

KARL MARX

An Academic Analysis of capital – volume 3

© 2024 by J.D. Ponce

INDEX

PRELIMINARY CONSIDERATIONS

Chapter I: INTRODUCTION TO VOLUME 3

Chapter II: COST-PRICE AND PROFIT

Chapter III: THE RATE OF PROFIT

Chapter IV: RATE OF PROFIT AND RATE OF SURPLUS-VALUE

Chapter V: TURNOVER AND THE RATE OF PROFIT

Chapter VI: CONSTANT CAPITAL

Chapter VII: PRICE FLUCTUATIONS

Chapter VIII: CAPITAL, PRODUCTION AND PROFIT

Chapter IX: GENERAL RATE OF PROFIT

Chapter X: GENERAL WAGE FLUCTUATIONS

Chapter XI: LAW OF THE TENDENCY OF PROFIT’S RATE TO FALL

Chapter XII: COMMERCIAL CAPITAL

Chapter XIII: COMMERCIAL PROFIT

Chapter XIV: THE TURNOVER OF MERCHANT’S CAPITAL

Chapter XV: MONEY-DEALING CAPITAL

Chapter XVI: HISTORICAL FACTS ABOUT MERCHANT’S CAPITAL

Chapter XVII: INTEREST-BEARING CAPITAL

Chapter XVIII: DIVISION OF PROFIT AND RATE OF INTEREST

Chapter XIX: INTEREST AND PROFIT OF ENTERPRISE

Chapter XX: THE EXTERNALIZATION OF CAPITALIST RELATIONS

Chapter XXI: CREDIT AND FICTITIOUS CAPITAL

Chapter XXII: ACCUMULATION OF MONEY-CAPITAL

Chapter XXIII: ROLE OF CREDIT IN CAPITALIST PRODUCTION

Chapter XXIV: MEDIUM OF CIRCULATION AND CAPITAL

Chapter XXV: COMPONENT PARTS OF BANK CAPITAL

Chapter XXVI: MONEY-CAPITAL AND REAL CAPITAL

Chapter XXVII: MEDIUM OF CIRCULATION IN THE CREDIT SYSTEM

Chapter XXVIII: THE CURRENCY PRINCIPLE

Chapter XXIX: PRECIOUS METAL AND RATE OF EXCHANGE

Chapter XXX: PRE-CAPITALIST RELATIONSHIPS

Chapter XXXI: DIFFERENTIAL RENT

Chapter XXXII: ABSOLUTE GROUND-RENT

Chapter XXXIII: BUILDING SITE RENT. RENT IN MINING. PRICE

Chapter XXXIV: GENESIS OF CAPITALIST GROUND-RENT

Chapter XXXV: THE TRINITY FORMULA

Chapter XXXVI: DAS KAPITAL IMPACT ON POLITICAL REGIMES

Chapter XXXVII: MARX’S 50 KEY QUOTES

Preliminary Considerations

Karl Marx's early life played a transformative role in shaping his ideologies and setting the foundation for his later revolutionary thoughts. Born on May 5, 1818, in Trier, Germany, Marx grew up in a town dominated by the burgeoning industrial revolution, which engendered rapid social and economic transformations.

Marx's father, Heinrich Marx, was a lawyer known for his liberal views and intellectual pursuits. Heinrich imbued his son with a critical mindset and a deep sense of justice, fostering a fertile environment for intellectual exploration within their middle-class home. Discussions around politics, philosophy, and social issues were commonplace, and Marx's intellectual curiosity flourished under the guidance of his father.

Marx's mother, Henriette Pressburg, belonged to a wealthy Dutch family, and her connections exposed young Karl to broader social issues and the experiences of the affluent. Henriette's father, Isaac Pressburg, was an influential figure in Marx's early life, introducing him to the world of Jewish culture and religion. Pressburg's teachings ignited in Marx a sense of historical consciousness, allowing him to view societal change from a broader perspective. This exposure to Judaism, coupled with his secular upbringing, contributed to Marx's nuanced understanding of religion's role in society.

During his childhood, Marx witnessed the stark social and economic disparities prevalent in Trier. The stark contrast between the privileged bourgeoisie and the impoverished proletariat left a profound impression on his young mind. Marx observed firsthand the exploitative conditions that the working class endured under early capitalism, planting the seeds for his lifelong commitment to social justice and equality. This awareness of class struggle would become a central theme in Marx's later writings.

Marx's voracious appetite for knowledge led him to engage with the works of Enlightenment philosophers during his student years. Immanuel Kant's emphasis on reason and individual autonomy deeply resonated with him. Kant's idea that society should be based on rational principles and respect for individual rights influenced Marx's vision of a future society that would transcend class divisions and exploitative structures. Likewise, Jean-Jacques Rousseau's discourse on societal contract and the importance of considering the needs of the collective also influenced Marx's thinking by shaping his understanding of the relationship between individuals and the community.

At the University of Bonn and later at the University of Berlin, Marx immersed himself in radical leftist circles and political activism. His involvement in student groups exposed him to a diversity of ideas and perspectives, further fueling his intellectual development. It was during this time that Marx forged lifelong friendships and alliances with individuals who shared his passion for social justice. These connections would prove instrumental in the formation of his revolutionary theories.

Education and Intellectual Development:

Karl Marx's journey of education and intellectual development played a pivotal role in shaping his revolutionary ideas and theories later in life. At the tender age of six, Marx embarked on his academic journey at the local elementary school, where he demonstrated exceptional intellect and a profound love for books. His voracious reading and exploration of various literary genres exposed him to the diverse narratives and imaginative realms crafted by esteemed writers such as William Shakespeare, Miguel de Cervantes, and Johann Wolfgang von Goethe. These literary encounters nurtured Marx's intellectual curiosity, refined his language skills, and sparked his imaginative prowess.

In 1830, Marx's intellectual odyssey advanced when he enrolled at the prestigious Friedrich-Wilhelm Gymnasium in Trier. Known for its rigorous curriculum, the school planted the seeds of critical thinking and scholarly pursuits within young Marx. The Gymnasium's emphasis on philosophy, literature, history, and languages broadened his intellectual horizons and laid the groundwork for his future pursuits.

During this influential period, Marx's fascination with languages blossomed, particularly Latin and Greek. He ardently dedicated himself to mastering ancient languages and engaging with classical works, including the works of Caesar, Ovid, Homer, and Plato. Proficient in Latin and Greek, Marx not only gained an appreciation for the literary achievements of antiquity but also expanded his language skills, enabling him to engage with complex texts in their original form. This linguistic mastery would prove instrumental in his later writings and engagement with philosophical ideas.

While Marx flourished academically, the cultural atmosphere in Germany also profoundly influenced his intellectual development. The early 19th century marked the pinnacle of the Romantic Movement, setting a fertile stage for Marx's creativity and individualistic leanings. Enthusiastically embracing the tenets of romanticism, Marx delved into the works of prominent German romantics, including Friedrich Schiller, Novalis, and Heinrich Heine. Through their emphasis on emotion, intuition, and the celebration of nature and the individual, Marx was exposed to a world of poetic expression that resonated deeply with his sensibilities. These romantic ideals would later find echoes throughout his writings, illustrating the indelible impact of his early encounters with impassioned artistic movements.

Following his time at the Friedrich-Wilhelm Gymnasium, Marx's thirst for intellectual exploration compelled him to enroll at the University of Bonn in 1835 to pursue studies in law. However, his time at Bonn was marked by rebellion and a lack of academic dedication. Marx's restless spirit sought intellectual stimulation beyond conventional academic boundaries, plunging him into campus politics and debates on issues of social significance. Engaging with fellow students in impassioned discussions on political ideologies and social struggles, Marx's fervor for social critique intensified, setting the stage for his future intellectual pursuits.

Recognizing the need for a more intellectually stimulating environment, Marx transferred to the University of Berlin in 1836. Berlin, a cosmopolitan city renowned as a center for intellectual excellence, nurtured Marx's radical inclinations and provided fertile ground for his intellectual growth. Surrounded by brilliant minds and provocative thinkers from across Europe, Marx found himself immersed in a vibrant community of philosophers, historians, and social theorists who would shape his evolving worldview.

Marx's transformative encounter with the works of Georg Wilhelm Friedrich Hegel at the University of Berlin ignited a foundational shift in his thinking. Hegel's dialectical method and his concepts of thesis, antithesis, synthesis left an indelible imprint on Marx's intellectual trajectory. Recognizing the dynamic interplay of opposing forces and the evolution of ideas through conflict, Marx adopted dialectical thinking as a core component of his own theoretical framework. The seeds of dialectical materialism were sown during this period, setting the stage for Marx's future critique of capitalism and his vision of a revolutionary society.

Notably, Marx's intellectual absorption did not rest solely on Hegel's philosophy. He also encountered the works of Ludwig Feuerbach, a significant influence on the shaping of his ideas. Feuerbach's critique of religion and the call for the humanization of philosophical concepts resonated deeply with Marx. Embracing Feuerbach's materialist perspective, Marx began directing his intellectual energy toward exploring the material conditions underpinning social, economic, and political structures. This intellectual convergence propelled Marx into further exploration and analysis, shaping his perspectives on religion, ideology, and the role they played in maintaining social order.

Beyond his formal education, Marx's insatiable appetite for knowledge led him to explore various fields. He voraciously read works in economics, sociology, and history, expanding beyond the confines of his academic curriculum. In his study of political economy, Marx immersed himself in the works of classical economists such as Adam Smith and David Ricardo, absorbing their theories of labor, value, and capital. This engagement with economics deepened his understanding of the inherent contradictions and exploitative nature of the capitalist system, forming the bedrock of his future critique.

Simultaneously, Marx delved into the writings of French socialists, including Saint-Simon and Fourier, who offered insightful critiques of the existing social order. By combining elements of classical economic theory, historical materialism, and the contributions of earlier French thinkers, Marx synthesized a comprehensive and interdisciplinary framework for understanding society and its dominant modes of production.

Marx's Relationships and Family Life:

Karl Marx's personal life was intricately intertwined with his revolutionary ideas and intellectual pursuits. His most significant relationship was with his wife, Jenny von Westphalen. They met in their youth and quickly forged a deep and passionate love that endured throughout their lives. Jenny, a woman of aristocratic background, supported Marx in his revolutionary endeavors, even when it meant enduring financial hardship and constant upheaval. Their marriage was marked by shared intellectual pursuits and a mutual dedication to the cause of socialism.

Their courtship was not without its challenges. Jenny's family initially disapproved of her relationship with Marx due to his radical political beliefs and lack of wealth. Despite these obstacles, the couple remained steadfast in their commitment to one another and the ideals they held dear. The union between Karl and Jenny was a marriage of revolutionary minds, nourished by their shared desire for social justice and equality.

Jenny von Westphalen, Marx's lifelong companion, played a crucial role in his intellectual and personal development. She was not only a constant source of emotional support but also an intellectual equal, engaging in deep discussions on political theory and social issues. Jenny's aristocratic background provided Marx with access to influential circles, and her connections often aided his revolutionary activities. Throughout their life together, Jenny stood by Marx's side, sharing his tumultuous journey as he grappled with poverty, exile, and persecution.

Despite the obstacles they faced, Marx and Jenny had a passionate and loving relationship. They cherished their family life, finding solace and comfort amidst the turbulence of their revolutionary pursuits. However, tragedy marred their family life as well. Out of their seven children, only three survived into adulthood. The untimely deaths of their children took a toll on Marx's emotional well-being and strained their relationship at times. The loss of their beloved children deeply affected both Marx and Jenny, further fueling their determination to create a better world for future generations.

Beyond his immediate family, Marx's friendships and associations played a vital role in his personal and intellectual development. One such close friendship was with Friedrich Engels, who became Marx's collaborator in writing The Communist Manifesto and many other works. Engels offered not only intellectual stimulation but also unwavering support throughout Marx's life. Their partnership helped solidify and expand the foundation of Marxist ideology.

Marx's relationships with his contemporaries extended beyond Engels. He engaged with a wide array of thinkers, activists, and revolutionaries, fostering a network of connections that enriched his understanding of socio-political issues. His correspondences and interactions with individuals such as Pierre-Joseph Proudhon, Mikhail Bakunin, Wilhelm Liebknecht, and Ferdinand Lassalle reveal both shared goals and ideological disagreements. These interactions, debates, and collaborations shaped Marx's ideas and helped refine his understanding of socialist theory.

However, Marx's commitment to his revolutionary ideals often placed a strain on his relationships. His zealous dedication to his work and the political cause sometimes overshadowed personal connections, leading to periods of neglect and strained dynamics. The demands of revolutionary activity required Marx's constant attention and limited his ability to fully immerse himself in the traditional roles of husband and father. Nevertheless, Jenny, ever-supportive, understood the immense importance of Marx's work and fervently believed in his vision.

While Marx's relationships and family life experienced challenges, they also provided a support network and grounding force for his revolutionary pursuits. They offered him moments of respite from the struggles of an ever-evolving political landscape, enabling him to navigate the complexities of his writing and continue his intellectual crusade.

Understanding Marx's relationships and family dynamics is crucial for comprehending the depth and complexity of his work. By examining the intertwined nature of his personal and intellectual life, we gain insight into the driving forces behind one of history's most influential thinkers. The enduring love and support Marx received from Jenny, the camaraderie with Engels, and the intellectual exchange with his contemporaries all played essential roles in shaping his ideas and fueling his revolutionary spirit. These relationships formed the foundation upon which Marx's thoughts and theories were grounded, ultimately shaping the trajectory of socialism and revolution.

Indeed, the connections Marx formed within his family and broader intellectual circles were not merely incidental but fundamental to his intellectual development. Marx's family upbringing provided him with a solid educational foundation, steeped in the works of Enlightenment thinkers such as Rousseau and Voltaire. His father, Heinrich, a lawyer and advocate for progressive causes, instilled in Marx a sense of justice and an awareness of societal inequality.

Marx's mother, Henriette, also greatly influenced him. Henriette came from a line of rabbis and was deeply religious, fostering in Marx an early awareness of the tensions between religion and the material realities of the world. Her compassion for the poor and marginalized further shaped Marx's empathetic worldview.

The intellectual environment in which Marx grew up was both stimulating and politically charged. His formative years in Trier, Germany, exposed him to a vibrant intellectual scene, with discussions ranging from political reform to revolutionary ideas. Marx's exposure to German philosophy, particularly Hegel's dialectical thinking, laid the groundwork for his own understanding of historical materialism and class struggle.

Marx's relationships with his friends and comrades were characterized by intense intellectual debates and collaborations. He engaged with thinkers like Max Stirner, Bruno Bauer, and Moses Hess, among others, in rigorous debates that pushed the boundaries of their respective ideologies. Marx's interactions with these individuals played a crucial role in honing his own theoretical framework and shaping his critique of capitalist society.

Marx's friendships were not confined to male intellectuals; he also maintained close relationships with women who contributed significantly to his intellectual development. Figures such as Clara Zetkin and Eleanor Marx-Aveling, his daughter, offered fresh perspectives and added depth to his understanding of gender oppression within capitalist systems. These dialogues challenged Marx to consider the intersections of class, gender, and race, enriching