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... demonstrated to be incorrect, and even more so with the current crisis than in earlier
crises (though there have been some efforts by a couple Trotskyist writers on economics
to explain away the evidence). There are a lot of theoretically problems with this theory
too, and even Marx talked about man ...
Chapter 7 - Karl Marx
... It is important to note that increases in the
quantity of capital is likely to bring with it an
increase in the quality of capital
(technological improvements) which will
increase the return to capital.
WHICH FORCE WILL WIN? It is diminishing
returns vs. technological improvements
There is really no ...
... Malthus commented (in 1822) that these exceptions: ‘are both theoretically and
practically so considerable as entirely to destroy the position that commodities
exchange with each other according to the quantity of labour that has been employed
upon them’. Marx attempted to solve the problem in the s ...
Marxist economics MARXISM IS COMPLICATED by the fact that
... founding fathers of their discipline, such as Adam Smith and David Ricardo. In particular, Marx based
much of his work on the labor theory of value, then a bedrock of economic thought, whereas modern
pro-capitalist economists theorize that value is generated from other sources than labor.
The labor ...
Profit and the Firm
• A firm that cannot remain profitable loses its value
and will eventually fail.
• Investors may tolerate or even accept temporary
losses in the hope of higher future profits, but there
is a limit to their patience.
» The demise of many internet and technology companies in recent
years is a ...
The `Marginal Revolution` in Economics against the Labour Theory
... battle: John Stuart Mill (1806-1873), contemporary and opponent of Karl Marx and
English liberal theorist, was first to call into question the concept of value. Against the
Labour Theory of Value, the heart of Political Economy up to that time, Mill stepped into
the shoes of Jeremy Bentham (1784-183 ...
how not to write about the rate of profit
... production as constituted by the creation of value by labour and the appropriation of
part of it (surplus-value) by capital. It is only (as, once again, Harvey knows as well
as anyone) towards the very end of Capital, III, in Part 6, that he proceeds to uncover
the “real value relation” underlying t ...
ARCHIVE: MARX, CLASSICAL POLITICAL ECONOMY AND THE
... The outcome was a strengthened phase in the vulgarisation and transformation of Classical political economy .[19) The last remaining vestiges of the original
content of the theory were eradicated : those real contradictions of capital which
were still admitted and pointed out by Malthus and Say (Mal ...
Louis Althusser and the Forms of Concealment of Capitalist
... subjection of ‘humankind’ to the ‘object world’ created be ‘human labour’.10 The
anthropological approach to fetishism is thus formulated, which we criticised in the
case of Lukács as extensive-universalising11 and which appears, with forms barely
different, in recent analyses of fetishism that pre ...
Institutional Marxian Political Economy: A Conceptual Marriage
... become a “pure” capitalist economy by eventually eliminating the pre-capitalist residue and
commodifying labour with the creation of a relative surplus population through cyclical crises.
Marx was quite successful in abstracting a “pure” capitalist economy from tendencies capital
exhibited in his t ...
How capitalists learned to stop worrying and love the crisis
... Following J.B. Clark (1899), neoclassical manuals assert that, under perfect competition, the income of every ‘factor of
production’ is equal to its (marginal) productive contribution. In this way, capitalists, workers and the owners of raw materials
receive in income what they add to the economy’s ...
What do we know about the labor share and the profit share? Part I
... falling, posing a serious puzzle to economists since then. It is this puzzle, the
reasons why the labor share has been falling while it used to be constant, that
this paper aims at elucidating. Just what do we know about the labor and
In this first of a four-part series we investigate ...
... antecedent, let us first of all recall that, according to Marx’s “law of value” 5,
prices are only a transfigured form of values, which are determined by the total
amount of labour socially necessary to produce a commodity. Prices in
particular sectors will deviate upwards (downwards) from values, ...
Marx`s Theory of the Money Commodity
... the utopian socialists and British Owenites with exaggerating the potential of
monetary reforms to alter the social system. They falsely imagined that the defects
of the economic system could be removed by tinkering with money, just as the
‘bourgeois apologists’ Bastiat and Carey did, even if in a d ...
Beyond the 2008 Financial “Crisis”
... A revolution has put an end to this “classical” economics of value, a
revolution of value itself, which carries value beyond its commodity form
into its radical form. - Jean Baudrillard
Capital and “Value”
Tendency of the rate of profit to fall
The tendency of the rate of profit to fall (TRPF) is a hypothesis in economics and political economy, most famously expounded by Karl Marx in chapter 13 of Das Kapital, Volume 3. Although no longer accepted in mainstream economics, the existence of such a tendency was more widely accepted in the 19th century.In his 1857 Grundrisse manuscript, Karl Marx called the tendency of the rate of profit to fall ""the most important law of political economy"" and sought to give a causal explanation for it, in terms of his theory of capital accumulation. The tendency is already foreshadowed in chapter 25 of Capital, Volume I (on the ""general law of capital accumulation""), but in Part 3 of the draft manuscript of Marx's Capital, Volume III, edited posthumously for publication by Friedrich Engels, an extensive analysis is provided of the tendency. Marx regarded the TRPF as proof that capitalist production could not be an everlasting form of production, since, in the end, the profit principle itself would suffer a breakdown. However, because Marx never published any finished manuscript on the TRPF himself, because the tendency is hard to prove or disprove theoretically, and because it is hard to test and measure the rate of profit, Marx's TRPF theory has been a topic of controversy for more than a century.