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Production with a Surplus — Wage Above Subsistence

  • J. E. Woods
Chapter
Part of the Radical Economics book series (RAE)

Abstract

By no longer restricting the wage to a given subsistence level, but permitting it to share in the surplus, I am immediately faced with the following question: does the wage contain a subsistence component? If so, it is necessary to divide the wage into subsistence and surplus components. For ease of exposition, I adopt Sraffa’s expedients of treating the whole of the wage as variable and paid at the end of the production period.1 In so doing, it is possible that commodities entering the wage basket, hitherto basic, can become non-basic simply because they no longer appear as means of production. I avoid this problem by assuming that wheat plays a dual role, as means of production and consumption, though now it is basic simply because of the former.

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Copyright information

© J. E. Woods 1990

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  • J. E. Woods

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