Meaning: This quote by Rudolf Hilferding delves into the concept of surplus value and its distribution among different parties involved in the production process. Hilferding was an influential Marxist economist and a key figure in the development of the theory of finance capital. He was also a prominent member of the German Social Democratic Party and a critic of capitalism.

In this quote, Hilferding is discussing the distribution of surplus value among different stakeholders in the production process. Surplus value is a central concept in Marxist economics, referring to the difference between the value of a worker's labor and the wages they are paid. According to Marxist theory, the capitalist mode of production allows capitalists to extract surplus value from the labor of workers, resulting in exploitation.

Hilferding's quote highlights the idea that when the surplus value is reduced, it must be distributed among different parties involved in the production process. These parties typically include the capitalist, the workers, and possibly other stakeholders such as shareholders or managers. The modification of their respective parts in the production of surplus value refers to the changing roles and contributions of these parties in generating surplus value.

Furthermore, Hilferding emphasizes that this modification of the distribution of surplus value must find expression in a modification of the prices. This suggests that changes in the distribution of surplus value among different parties will have an impact on the prices of goods and services. In a capitalist economy, prices are determined by the interaction of supply and demand, as well as production costs, including the cost of labor. Therefore, any changes in the distribution of surplus value among different stakeholders will likely affect the cost of production and, consequently, the prices of goods and services.

Hilferding's perspective aligns with the Marxist critique of capitalism, which focuses on the exploitation of labor and the unequal distribution of surplus value. His analysis underscores the interconnectedness of production, surplus value, and prices within the capitalist system. By highlighting the need for a modification of prices to reflect changes in the distribution of surplus value, Hilferding points to the complex economic relationships that underpin capitalist production and exchange.

In summary, Rudolf Hilferding's quote delves into the distribution of surplus value among different parties involved in the production process and the impact of this distribution on prices. His perspective reflects the Marxist critique of capitalism, emphasizing the exploitation of labor and the interconnectedness of production, surplus value, and prices within the capitalist system. Hilferding's insights continue to be relevant for understanding the dynamics of capitalist economies and the distribution of economic value among different stakeholders.