Abstract labor and concrete labor
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Abstract labour and concrete labour refer to a distinction made by
Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, economist, historian, sociologist, political theorist, journalist, critic of political economy, and socialist revolutionary. His best-known titles are the 1848 ...
in his
critique of political economy Critique of political economy or critique of economy is a form of social critique that rejects the various social categories and structures that constitute the mainstream discourse concerning the forms and modalities of resource allocation and ...
. It refers to the difference between human labour in general as economically valuable worktime versus human labour as a particular activity that has a specific useful effect within the (capitalist)
mode of production In the Marxist theory of historical materialism, a mode of production (German: ''Produktionsweise'', "the way of producing") is a specific combination of the: * Productive forces: these include human labour power and means of production (tools, ...
.


Overview

*As economically valuable worktime, human labour is spent to add value to products or assets (thereby conserving their capital value, and/or transferring value from inputs to outputs). In this sense, labour is an activity which creates/maintains
economic value In economics, economic value is a measure of the benefit provided by a good or service to an economic agent. It is generally measured through units of currency, and the interpretation is therefore "what is the maximum amount of money a speci ...
pure and simple, which could be realized as a sum of money once labour's product is sold or acquired by a buyer. The value-creating ability of labour is most clearly visible when all labour is stopped. If all labour is withdrawn, the value of the capital assets worked with will normally deteriorate, and in the end, if labour is permanently withdrawn, nothing will be left except a
ghost town Ghost Town(s) or Ghosttown may refer to: * Ghost town, a town that has been abandoned Film and television * ''Ghost Town'' (1936 film), an American Western film by Harry L. Fraser * ''Ghost Town'' (1956 film), an American Western film by All ...
situation. *As a useful activity of a particular kind, human labour can have a useful effect in producing particular tangible products which are used by others, or by the producers themselves. In this sense, labour is an activity which creates use-values, i.e. tangible products, results or effects which can be used or consumed. The creation of use-values is highlighted, when goods and services of poor quality are created, which are not supplied on time and mainly useless to the consumer. Labour must be applied to produce usable products, regardless of how much they are sold for, otherwise there are no use-values. If labour produces useless products or results, it is simply a waste of labour-time. So, Marx argues that human work is both (1) an activity which, by its useful effect, helps to create particular kinds of products, and (2) in an economic sense a ''value-forming'' activity that, if it is productively applied, can help create more value than there was before. If an employer hires labour, the employer thinks both about the value that the labour can add within his business, and about how useful the labour service will be for his business operations. That is, the right kind of work not only needs to get done, but it needs to get done in a way that it helps the employer to make money. If the labour makes no net addition to new value produced, then the employer makes no money from it, and the labour will be only an expense to him. If the labour is only a net expense (overhead), then it is commercially speaking ''unproductive'' labour. Yet it may be very necessary to employ this unproductive labour, if, without its performance, considerable capital value would be ''lost'' from the employer's financial investments, or if business would fail without it. That is, labour may be very necessary to ''maintain'' capital value, even if it does not actually ''add'' value to capital, and does not directly add to net profit. So, the employer also buys unproductive labour because the employer's costs in this respect are lower than the ''loss'' of value that would occur, if he did not employ unproductive labour to ''maintain'' capital value, and to prevent loss of capital value. For example, cleaning work might seem a very menial and low-value activity, but if business equipment fails, customers stay away, and the staff get sick or hurt, it costs the business a lot of extra money. However, Marx posited abstract labor, all labor-power, as homogeneous, productive labor due to the social nature of value. Labor power, whether managerial or otherwise, when exchanged directly with capital, is included in any calculation of the average socially necessary labor time for production of a specific commodity, and is still represented by variable capital and therefore value adding capital.


Origin

In the introduction to his ''
Grundrisse The ''Grundrisse der Kritik der Politischen Ökonomie'' (''Foundations of a Critique of Political Economy'') is an unfinished manuscript by the German philosopher Karl Marx. The series of seven notebooks was rough-drafted by Marx, chiefly for ...
'' manuscript, Marx argued that the category of abstract labour "expresses an ancient relation existing in all social formations"; but, he continued, ''only'' in modern bourgeois society (exemplified by the United States) is abstract labour ''fully realized'' in practice. Because only there does a system of price-equations exist within a universal market, which can practically reduce the value of ''all'' forms and quantities of labour uniformly to sums of money, so that any kind of labour becomes an interchangeable, tradeable good or "input" with a known price tag – and is also practically ''treated'' as such. In the ''
Grundrisse The ''Grundrisse der Kritik der Politischen Ökonomie'' (''Foundations of a Critique of Political Economy'') is an unfinished manuscript by the German philosopher Karl Marx. The series of seven notebooks was rough-drafted by Marx, chiefly for ...
'', Marx also distinguished between "particular labour" and "general labour", contrasting communal production with production for exchange. Marx published about the categories of abstract and concrete labour for the first time in ''
A Contribution to the Critique of Political Economy ''A Contribution to the Critique of Political Economy'' (german: Zur Kritik der Politischen Ökonomie) is a book by Karl Marx, first published in 1859. The book is mainly a critique of political economy achieved by critiquing the writings of the ...
'' (1859) and they are discussed in more detail in chapter 1 of ''
Capital, Volume I ''Capital. A Critique of Political Economy. Volume I: The Process of Production of Capital'' (german: Das Kapital. Kritik der politischen Ökonomie Erster Band. Buch I: Der Produktionsprocess des Kapitals) is the first of three treatises that ma ...
'', where Marx writes:


Abstract labour and exchange

Marx himself considered that all economising reduced to the economical use of human labour-time; "to economise" ultimately meant saving on human energy and effort. However, according to Marx, the achievement of abstract thinking about human labour, and the ability to quantify it, is closely related to the historical development of economic exchange in general, and more specifically commodity trade (the trade in wares and merchandise). The expansion of trade requires the ability to measure and compare all kinds of things, not just length, volume and weight, but also time itself. Originally, the units of measurement used were taken from everyday life—the length of a finger or limb, the volume of an ordinary container, the weight one can carry, the duration of a day or a season, the number of cattle. Socially ''standardized'' measurement units began to be used probably from circa 3000 BC onwards in ancient
Egypt Egypt ( ar, مصر , ), officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia via a land bridge formed by the Sinai Peninsula. It is bordered by the Medit ...
and
Mesopotamia Mesopotamia ''Mesopotamíā''; ar, بِلَاد ٱلرَّافِدَيْن or ; syc, ܐܪܡ ܢܗܪ̈ܝܢ, or , ) is a historical region of Western Asia situated within the Tigris–Euphrates river system, in the northern part of the ...
, and then state authorities began to supervise the use of measures, with rules to prevent cheating. Once standard measuring units existed, mathematics could begin to develop. In fact, Marx argues the abstraction of labour in thought is the reflex of a real process, in which commercial trade in products not only alters the way labour is ''viewed'', but also how it is practically ''treated''. In other words, when labour becomes a commercial object traded in the marketplace, then the form and content of work in the workplace will be transformed as well. This transformation is practically possible, because labour already contains the potential to adapt to the requirements of capitalist business. This potential has already been shaped up by previous schooling and training. If different products are exchanged in market trade according to specific trading ratios, Marx argues, the exchange process at the same time ''relates, values and commensurates'' the quantities of human labour expended to produce those products, regardless of whether the traders are consciously aware of that (see also
value-form The value-form or form of value (german: Wertform) is a concept in Karl Marx's critique of political economy. Marx's account of the value-form is differently adopted in later forms of Marxism, in the Frankfurt School and in post-Marxism. When so ...
). Therefore, Marx implies, the exchange process itself ''involves the making of a real abstraction'', namely abstraction from (or indifference to) the particular characteristics of concrete (specific) labour that produced the commodities whose value is equated in trade. At first, the relationship between quantities of traded commodities symbolically represents the relative costs in labour time. Next, money-prices begin to represent symbolically the commodities being traded. In this way, a system of symbolic representation emerges which can facilitate the exchange of the most diverse products with great efficiency. In the end, commodities become simply objects of value, and since their value can rise and fall, they can be bought and sold purely for capital gain. Closely related to this, is the growth of a ''cash economy'', and Marx claims that: In a more complex division of labour, it becomes difficult or even impossible to equate the value of all different labour-efforts directly. But
money Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are as ...
enables us to express and compare the value of ''all'' different labour-efforts—more or less accurately—in money-units (initially, quantities of gold, silver, or bronze). Marx then argues that labour viewed concretely in its specifics creates useful things, but labour-in-the-abstract is value-forming labour, which conserves, transfers and/or creates
economic value In economics, economic value is a measure of the benefit provided by a good or service to an economic agent. It is generally measured through units of currency, and the interpretation is therefore "what is the maximum amount of money a speci ...
(see
Valorisation In Marxism, the valorisation or valorization of capital is the increase in the value of capital assets through the application of value-forming labour in production. The German original term is "''Verwertung''" (specifically ''Kapitalverwertung'') ...
). In 1844, Marx said that: In the feudal society of medieval Europe, Marx comments,


Abstract labour and capitalism

If the production process itself becomes organised as a specifically ''capitalist'' production process, then the abstraction process is deepened, because production labour itself becomes directly treated and organised in terms of its commercial exchange value, and in terms of its capacity to create new value for the buyer of that labour. Quite simply, in this case, a quantity of labour-time is equal to a quantity of money, and it can be calculated that X hours of labour—regardless of who in particular performs them—create, or are worth, Y amounts of new product value. In this way, labour is ''practically'' rendered abstract. The abstraction is completed when a labour market is established which very exactly quantifies the money-price applying to all kinds of different occupational functions, permitting equations such as: ''x'' amount of qualified labour = ''y'' amounts of unskilled labour = ''z'' number of workers = ''p'' amount of money = ''q'' amount of goods. This is what Marx calls a ''value relationship'' ("Wertverhältnis" in German). It can also be calculated that it costs a certain amount of time and money to train a worker to perform a certain task, and how much value that adds to the workers' labour, giving rise to the notion of human capital. As a corollary, in these conditions workers will increasingly treat the paid work they do as something distinct or separate from their personality, a means to an end rather than an end in itself. Work becomes "just work", it no longer ''necessarily'' says anything at all about the
identity Identity may refer to: * Identity document * Identity (philosophy) * Identity (social science) * Identity (mathematics) Arts and entertainment Film and television * ''Identity'' (1987 film), an Iranian film * ''Identity'' (2003 film), ...
,
creativity Creativity is a phenomenon whereby something new and valuable is formed. The created item may be intangible (such as an idea, a scientific theory, a musical composition, or a joke) or a physical object (such as an invention, a printed Literature ...
or
personality Personality is the characteristic sets of behaviors, cognitions, and emotional patterns that are formed from biological and environmental factors, and which change over time. While there is no generally agreed-upon definition of personality, m ...
of the worker. With the development of an average skill level in the workforce, the same job can also be done by many different workers, and most workers can do many different jobs; nobody is necessarily tied to one type of work all his life anymore. Thus we can talk of "a job" as an abstract function that could be filled by anybody with the required skills. Managers can calculate that with a certain budget, a certain number of paid working hours are required or available to do the work, and then divide up the hours into different job functions to be filled by suitably qualified personnel.
Marx's theory of alienation Karl Marx's theory of alienation describes the estrangement (German: ''Entfremdung'') of people from aspects of their human nature (''Gattungswesen'', 'species-essence') as a consequence of the division of labor and living in a society of strati ...
considers the human and social implications of the abstraction and commercialization of labour. His concept of reification reflects about the inversions of object and subject, and of means and ends, which are involved in commodity trade. Marx regarded the distinction between abstract and concrete labour as being among the most important innovations he contributed to the theory of
economic value In economics, economic value is a measure of the benefit provided by a good or service to an economic agent. It is generally measured through units of currency, and the interpretation is therefore "what is the maximum amount of money a speci ...
, and subsequently Marxian scholars have debated a great deal about its theoretical significance.


Evolutionary or historically specific

For some, abstract labour is an economic category which applies only to the capitalist mode of production, i.e. it applies only, when human
labour power Labour power (in german: Arbeitskraft; in french: force de travail) is a key concept used by Karl Marx in his critique of capitalist political economy. Marx distinguished between the capacity to do work, labour power, from the physical act of w ...
or work-capacity is universally treated as a commodity with a certain monetary cost or earnings potential. Thus Professor John Weeks claims that Other Marx-scholars, such as
Makoto Itoh is a Japanese economist and is considered internationally to be one of the most important scholars of Karl Marx's theory of value. He teaches at Kokugakuin University, Tokyo, and is professor emeritus of the University of Tokyo. He belongs to t ...
, take a more evolutionary view. They argue that the abstract treatment of human labour-time is something that evolved and developed in the course of the whole history of
trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct excha ...
, or even precedes it, to the extent that primitive
agriculture Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people t ...
already involves attempts to economise labour, by calculating the comparative quantities of labour-time involved in producing different kinds of outputs. In this sense, Marx argued in his book ''A Contribution to the Critique of Political Economy'' (1859) that However in the same writing he also says Throughout the writing he never ceases to say that abstract labour is "universal" and strictly manifests itself as social labour, not existing in small isolation. Marx repeats this point in ''Capital Volume 1'' (1867) implying that abstract labour arises only when products are produced solely as commodities, something limited strictly to the capitalist mode of production:


Skilled labour

Another controversy concerns the differences between unskilled (simple) and skilled (qualified) labour. Skilled labour costs more to produce than unskilled labour, and can be more productive. Generally Marx assumed that—irrespective of the price for which it is sold—skilled
labour power Labour power (in german: Arbeitskraft; in french: force de travail) is a key concept used by Karl Marx in his critique of capitalist political economy. Marx distinguished between the capacity to do work, labour power, from the physical act of w ...
had a higher value (it costs more to produce, in money, time, energy and resources), and that skilled work could produce a product with a higher value in the same amount of time, compared to unskilled labour. This was reflected in a skill hierarchy, and a hierarchy of wage-levels. In this sense,
Friedrich Engels Friedrich Engels ( ,"Engels"
'' Anti-Duhring: Marx believed that the capitalist mode of production would over time replace people with machines, and encourage the easy replacement of one worker by another, and thus that most labour would tend to reduce to an average skill level and standardized norms of work effort. However he provided no specific calculus by which the value of skilled work could be expressed as a multiple of unskilled work, nor a theory of what regulates the valuation of skill differences. This has led to some theoretical debate among Marxian economists, but no definitive solution has yet been given. In the first volume of ''
Das Kapital ''Das Kapital'', also known as ''Capital: A Critique of Political Economy'' or sometimes simply ''Capital'' (german: Das Kapital. Kritik der politischen Ökonomie, link=no, ; 1867–1883), is a foundational theoretical text in materialist phi ...
'' Marx had declared his intention to write a special study of the forms of labour-compensation, but he never did so. In contemporary society, a division is emerging between creative, skilled and specialized jobs attracting extraordinarily large salaries, and routine jobs paying very low salaries, where the enormous differences in pay rates are difficult to explain. The economist Anwar Shaikh from the New School for Social Research has analyzed input-output data, wage data and labour data for the US economy, to create an ''empirically testable'' theory of the market valuation of skill differences. The counterargument is, that the valuation of skills depends to a great extent on the ''balance of class forces'' between the rich educated class, and the "lower-skilled" working class. The
rent-seeking Rent-seeking is the act of growing one's existing wealth without creating new wealth by manipulating the social or political environment. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic effic ...
educated class, on this view, can often raise its income far beyond the real worth of its work, if its specialist skills happen to be in short supply or in demand, or if they are hired through the "old boy" networks. That is to say, to an extent, the assumed skill level of the employee may be more imaginary, than real; it all depends on how skills, experience and qualifications are defined and valued. Skilled labour may be over-valued and unskilled labour under-valued at the same time. The conservative US journalist David Brooks, citing Oren Cass, highlighted in a 2018 op-ed that: The conservative Friedman Foundation noted that, although from 1950 to 2009 the total staffing at US public schools grew four times faster than the increase in students, scholastic achievement did not increase. While the number of teachers increased two and a half times faster, the number of administrators, teaching assistants and other staff grew seven times faster than the increase in students – i.e., almost three times as fast as the increase in teachers. To solve this problem, the Foundation proposed a more market-oriented approach, with more financial incentives and penalties. In 2018, the average student loan debt for US college graduates stood at $39,400 per graduate, up six percent from the previous year. Some 44 million Americans at that time owed $1.48 trillion+ in student loan debt, the bulk of which cannot be discharged through declaring bankruptcy.


Criticism

Marx did not think there was anything particularly mysterious about the fact that people valued products because they have to spend time working to produce them, or to buy them. However, academics have made many objections to his idea. The conceptual issues associated with the idea of abstract labour have been one of the main reasons why many economists abandoned the
labour theory of value The labor theory of value (LTV) is a theory of value that argues that the economic value of a good or service is determined by the total amount of " socially necessary labor" required to produce it. The LTV is usually associated with Marxian ...
. It may be that the problems have never been resolved because they have been approached far too abstractly, using conceptual distinctions not really adequate for the purpose. Without referring explicitly to Marx's work on the
labour theory of value The labor theory of value (LTV) is a theory of value that argues that the economic value of a good or service is determined by the total amount of " socially necessary labor" required to produce it. The LTV is usually associated with Marxian ...
of
David Ricardo David Ricardo (18 April 1772 – 11 September 1823) was a British political economist. He was one of the most influential of the classical economists along with Thomas Malthus, Adam Smith and James Mill. Ricardo was also a politician, and a ...
, the marginal utility theorist
William Stanley Jevons William Stanley Jevons (; 1 September 183513 August 1882) was an English economist and logician. Irving Fisher described Jevons's book ''A General Mathematical Theory of Political Economy'' (1862) as the start of the mathematical method in ec ...
clearly stated the main criticism of the concept of abstract labour in his 1871 treatise:


Response to these Criticisms

Replying to this type of criticism, the Russian Marxist Isaak Illich Rubin argued that the concept of abstract labour was really much more complex than it seemed at first sight. He distinguished between "physically equal" labour; labour which is "socially equated" by means of consensual social evaluation or comparison; and labour efforts equated via the exchange of products using money as a universal equivalent. To these three aspects we could add at least five others, which are also mentioned by Marx: *the existence of normal labour-averages applying to different work tasks, which function as "labour norms" in any society; *the gradation of many different labour efforts along one general, hierarchical dimension of worth, for the purpose of compensation; *the universal exchangeability of labour efforts themselves, in a developed labour market; *the general mobility of labour from one job or worksite to another; and *the ability of the same workers to do all kinds of different jobs. Some further aspects of the concept of abstract labour are provided by Marxian anthropologist
Lawrence Krader Lawrence Krader (December 9, 1919 – November 15, 1998) was an American socialist anthropologist and ethnologist. Early life Krader was born on December 9, 1919 in Jamaica, New York. In 1936, at the Philosophy Department of the City College of ...
and the mathematician Ulrich Krause. Possibly, these conceptual issues can be resolved, through a better empirical appreciation of the political economy of education, skills and the labour market.


Recent discussion

In his book ''
Crack Capitalism ''Crack Capitalism'' (2010) is a book by sociologist John Holloway that carries on with the political ideas developed in his earlier '' Change the World Without Taking Power''. Holloway sees the problem of political activism, in terms of those str ...
'', John Holloway considers abstract labour as the most radical foundational category of Marx's theory, and therefore he recommends the struggle against abstract labour as the centrepiece of the political struggle against capitalism. The British computer scientist Paul Cockshott in 2013 wrote a piece critical of the German Marxist academic Michael Heinrich who, Cockshott argued, wrongly reinterpreted the concept of abstract labour so that it is no longer a scientifically testable concept.Paul Cockshott, "Heinrich's idea of abstract labour". ''Critique: A Journal of Socialist Theory'', Vol. 41 No. 2, 2013, pp. 287–297. Michael Heinrich, ''An Introduction to the Three Volumes of Karl Marx's Capital.'' New York: Monthly Review Press, 2012.


See also

* Abstraction *
Critique of political economy Critique of political economy or critique of economy is a form of social critique that rejects the various social categories and structures that constitute the mainstream discourse concerning the forms and modalities of resource allocation and ...
* Exchange value *
Labour power Labour power (in german: Arbeitskraft; in french: force de travail) is a key concept used by Karl Marx in his critique of capitalist political economy. Marx distinguished between the capacity to do work, labour power, from the physical act of w ...
*
Labour theory of value The labor theory of value (LTV) is a theory of value that argues that the economic value of a good or service is determined by the total amount of " socially necessary labor" required to produce it. The LTV is usually associated with Marxian ...
* Law of value *
Socially necessary labour time Socially necessary labour time in Marx's critique of political economy is what regulates the exchange value of commodities in trade and consequently constrains producers in their attempt to economise on labour. It does not 'guide' them, as it ca ...
*
Value-form The value-form or form of value (german: Wertform) is a concept in Karl Marx's critique of political economy. Marx's account of the value-form is differently adopted in later forms of Marxism, in the Frankfurt School and in post-Marxism. When so ...
*
Working time Working(laboring) time is the period of time that a person spends at paid labor. Unpaid labor such as personal housework or caring for children or pets is not considered part of the working week. Many countries regulate the work week by law, ...


References

{{reflist Marxian economics Theory of value (economics) Labour economics Labor studies Abstraction Marxian critique of political economy