U
The department scheme was applied by Marx first to simple
reproduction where it does not raise any problems. The
economy is divided into two departments, investment goods
(dep I ) and consumption goods ( dep II ). In each the
value of the product ( 0 ) is composed of ‘materials
and replacement of capital ( constant capital, C ),
of wagespaid ( variable capital, W ) and the remaining
value, surplus ( M ) which corresponds to net profit.
Thus
C-| + W-| + M-| = 0-| j
II
C2 Wg + M2 — O2
The product of dep II must be bought up by the sum of
wages and surplus of the two depaartments:
w i + 3_
+ M 1 + m 2 =3
C 1 + C 2
= 0.
G 2 = w, + Mj
In his arithmetical examples Marx fixed first a certain
rate of exploitation M * W and a certain "organic
composition" C -f W , and tried to constrain his choice
of concrete numbers by this assumptions.
When Marx tried to apply hisschemata to the case of
accumulation ("extended reproduction" ) he ran into
difficulties. His procedures and examples have been
analysed and criticised at great length by Rosa Luxemburg
( Akkumulationdes Kapitals)