3. The Additional Variable Capital

Hitherto we have been dealing only with additional constant capital. Now we must direct our attention to a consideration of the additional variable capital.

We have explained at great length in Book I that labour power is always available under the capitalist system of production, and that more labour can be rendered fluid, if necessary, without increasing the number of labourers or the quantity of labour power employed. We therefore need not go into this any further, but shall rather assume that the portion of the newly created money capital capable of being converted into variable capital will always find at hand the labour power into which it is to transform itself. It has also been explained in Book I that a given capital may expand its volume of production within certain limits without any accumulation. But here we are dealing with the accumulation of capital in its specific meaning, so that the expansion of production implies the conversion of surplus value into additional capital, and thus also an expansion of the capital forming the basis of production.

The gold producer can accumulate a portion of his golden surplus value as virtual money capital. As soon as it becomes sufficient in amount, he can transform it directly into new variable capital, without first having to sell his surplus product. He can likewise convert it into elements of the constant capital. But in the latter case he must find at hand the material elements of his constant capital. It is immaterial whether, as was assumed in our presentation hitherto, each producer works to stock up and then brings his finished product to the market or fills orders. The actual expansion of production, i.e., the surplus product, is assumed in either case, in the one case as actually available, in the other as virtually available, capable of delivery.