Marx's theory of relative surplus value has been recently questioned by Michael Lebowitz (2003, 2010). According to him the value of labor power cannot be determined by the value of a given set of consumption goods. He argues that this procedure fails to explain relative surplus value when money wages fail to fall. Unless productivity is able to explain both the cheapening of commodities and the weakening of the working class, the theory of relative surplus value is incomplete for it is unable to explain the reduction in money wages. This article explores the possible effects of changing productivity in gold production, a factor that Marx left out of the analysis in order to emphasize the necessary reduction in money wages when the value of gold is given. It is shown that relative surplus value can come about quite independently of any reduction in money wages.
relative surplus value; nominal wages; productivity of labor
