Unproductive Labor as Profit-Rate-Maximizing Labor

Abstract

Too often, Marxist economists approach the notion of “unproductive labor” negatively. Unproductive labor within enterprises is, however, not useless. Its purpose is the maximization of the profit rate. In Marx's analysis of capital, the entire process is divided into the valorization of capital (the extraction of surplus value) and the circulation of capital. Unproductive labor does not create new value or surplus value, but contributes to the two aspects, increasing surplus value and accelerating the circulation of capital. Thus, the profit rate—the aim of capitalist production—is increased. In Capital, these tasks are introduced as performed by the capitalist, but Marx also explains that, within modern corporations, they are delegated to a salaried personnel: managerial and clerical (also commercial) personnel. As a result of the strong polarization in the division of labor between the two components, managerial and clerical, this analysis leads to a Marxian theory of managerial capitalism.