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is not paid.
"The value of a commodity is determined by the
total quantity of labor contained in it.
But part of that
quantity of labor is realized in a value for which an equiva
lent has been paid in the form of wages; part of it is realized
in a value for which no equivalent has been paid.
Part of the
labor contained in the commodity is paid labor; part is unpaid
The capitalist appropriates this unpaid labor.
Interest, and Industrial Profit are only different names for
different parts of the surplus value of the commodity, or the
unpaid labor enclosed in it, and they are equally derived from this source, and from this source alone.
should, therefore, use their organized forces "as a lever for
3 the ultimate abolition of the wages system.
Such, in outline, are the two theories associated with
of Karl Marx.
In studying the constructive side of
industrial unionism, we find its most pronounced advocates continually weaving their philosophy on the scarlet warp of
First, as to the labor theory of value, two illustra
tions will suffice.
The Brewery Workers say in their constitution:
to the interest of the propertied class to buy labor at the
cheapest possible price; to produce as much as can be produced,
and to heap up wealth.
The few hundreds of thousands who com
pose the propertied class take from the workers the greater
part of the wealth they have created.
of all the product of
1. Ibid, 87. 2. Ibid, 90. 3. Ibid, 128.
their toil the millions of workers receive only just as much as
enables them to eke out a miserable existence..... It is organ
ized labor that will finally succeed.... in introducing a con
dition of things in which euch shall enjoy the full product of his toil.
Daniel De Leon and his followers in the American Social
ist Labor Party and the Workers' International Industrial Union (W. I. I. U.) likewise made the Marxian theory of value their
"The profits that the capitalist pockets,"
said De Leon, in an address to strikers in New Bedford, "represent wealth that the wage workers produced, and that the capital
2 ist.....steals from them; and the American Socialist Labor
Party echoes his thought: "The Socialists say that the present system is robbery, daily, hourly, robbery. We say, and we prove, that all wealth is produced by labor - mental and physical. We
say that the present tools of production and all social wealth
are the result of the labor of all ages, past and present; that
private ownership in the means of production became a social wrong as soon as these means of production had outgrown the
3 possibility of private operation."
"ages," they say, "are kept small due to the competi
with the fact that the manufacturer gets profits, that the
banker gets interest, and that the landlord gets rent.
value we produce pays all this.... The workers' need to eat,
1. Constitution of United Brewery and Soft Drink Workers, Preamble. 2. Daniel De Leon, "What Means this Strike?" 3. "The Amer. Socialist Labor Party." - official pamphlet.