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Rosa Luxemburg

bourgeois society evolved in a period of rapid capitalistic development, Rosa Luxemburg was active in a time of increasing instability for capitalism, “wherein the formulated contradictions of capital production showed themselves in the concrete forms of imperialistic competition and in intensified class struggles”. While the actual proletarian critique of political economy, according to Marx, consisted at first in the workers' fight for better working conditions and higher living standards, which would prepare the future struggles for the abolition of capitalism, in Rosa Luxemburg's view this 'final' struggle could no longer be relegated to a distant future but was already present in the extending class struggles. The daily fight for social reforms was inseparably connected with the historical necessity of the proletarian revolution. According to Marx, capitalism's basic contradiction, from which spring all it’s other difficulties, is to be found in the value and surplus value relations of capital production. “It is the production of exchange-value in its monetary form, derived from the use-value form of labor-power, which produces, besides its own exchange-value equivalent, a surplus-value for the capitalists. The drive for exchange-value turns into the accumulation of capital, which manifests itself in a growth of capital invented in means of production relatively faster than that invested in labor-power”. While this process expands the capitalist system, through the increasing productivity of labor associated with it, it also tends to reduce the rate of profit on capital, as that part of capital invested in labor-power--which is the only source of surplus-value--diminishes relative to the total social capital. This long and complicated process cannot be dealt with satisfactorily in this short article, but must at least be mentioned in order to differentiate Marx's theory of accumulation from that R...

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