Because of a thousand capitalistic devices, labor cannot buy back even half of the total product.
“But to return. We will say labor buys back two billions. Then it stands to reason that labor can consume only two billions. There are still two billions to be accounted for, which labor cannot buy back and consume.”
“Labor does not consume its two billions, even,” Mr. Kowalt spoke up. “If it did, it would not have any deposits in the savings banks.”
“Labor’s deposits in the savings banks are only a sort of reserve fund that is consumed as fast as it accumulates. These deposits are saved for old age, for sickness and accident, and for funeral expenses. The savings bank deposit is simply a piece of the loaf put back on the shelf to be eaten next day. No, labor consumes all of the total product that its wages will buy back.
“Two billions are left to capital. After it has paid its expenses, does it consume the remainder? Does capital consume all of its two billions?”
Ernest stopped and put the question point blank to a number of the men. They shook their heads.
“I don’t know,” one of them frankly said.
“Of course you do,” Ernest went on. “Stop and think a moment. If capital consumed its share, the sum total of capital could not increase. It would remain constant. If you will look at the economic history of the United States, you will see that the sum total of capital has continually increased. Therefore capital does not consume its share. Do you remember when England owned so much of our railroad bonds? As the years went by, we bought back those bonds. What does that mean? That part of capital’s unconsumed share bought back the bonds. What is the