Technical Changes and the Rate of Profit in the Canadian Wood, Furniture, and Paper Industries

1988 ◽  
Vol 20 (12) ◽  
pp. 1623-1643 ◽  
Author(s):  
M Webber ◽  
S Tonkin

In this paper the rate of profit is examined and the components of changes in the rate of profit are identified of the wood, furniture, and paper industries of Canada for the years 1952 to 1981. The rate of profit in the wood industry generally rose, until a dramatic fall since 1979 onwards; this fall was largely due to a collapse of market prices and to the effects of that collapse on the technical composition of capital (via changes in the rate of capacity utilization). Profit rates in the furniture industry have generally been rising because the rate of exploitation has risen, even though techniques of production have changed only slowly. In the paper industry profit rates have generally fallen, in response to rapid changes in technology. There is generally short-run variation in the technical composition of capital, which, therefore, is affected by market conditions as well as the technology embodied in fixed capital.

2019 ◽  
pp. 15-35
Author(s):  
David Harvey

David Harvey apresenta uma crítica à importância dada à lei da queda tendencial da taxa de lucro, sugerindo que Marx derivou a “lei” de pressupostos “draconianos” e que Engels foi bem mais entusiasta dela do que Marx, que nunca voltou adiante à teoria apesar de sua evidente incompletude. Portanto, ele argumenta, não deveríamos levar suas conclusões teóricas muito longe. Em sua visão, Marx concebeu as crises como erupções momentâneas e violentas que resolviam as contradições existentes, que podem ser consideradas oportunidades para a reconstrução capitalista ao invés de um sinal do fim eminente do capitalismo. Harvey defende que a taxa de lucro pode ser estabilizada por uma variedade de fatores como uma desvalorização do capital constante devido à mudança tecnológica, a monopolização ou a aceleração do tempo de rotação tanto na produção como na circulação. Ele argumenta, ainda, que um aumento da produtividade que não seja associado a perdas de emprego não reduziria a produção de mais-valia. Ademais, uma queda nas taxas de lucro pode resultar de muitos outros motivos além do aumento da composição orgânica do capital. ABSTRACTDavid Harvey’s article argues against the importance given to the law of the tendency of the rate of profit to fall (TRPF), suggesting that Marx derived the “law” under “draconian” assumptions and that Engels was far more enthusiastic about it than Marx, who never went back to the theory later in his life despite its evident incompleteness. Therefore, he argues, we should not take his theoretical conclusions too far. In his view, Marx perceived crises as momentary and violent eruptions that resolve the existing contradictions which can be considered as opportunities of capitalist reconstruction rather than a sign of the imminent end of capitalism. Harvey argues that the rate of profit can be stabilized by a variety of factors such as a devaluation of the existing constant capital due to technical change, monopolization, or accelerating turnover times in both production and circulation. He argues, moreover, that a productivity increase that is not associated with job losses would not reduce surplus value production. Moreover, a fall in profit rates could result from a number of reasons rather than an increase in the organic composition of capital. Tradução: Cássio Arruda Boechat ([email protected])


2019 ◽  
Vol 49 (1) ◽  
pp. 163-203
Author(s):  
Nuno Miguel Cardoso Machado

Abstract Marx's theory of crisis is usually associated with the law of the tendential fall in the rate of profit presented in volume three of Capital. According to Marx, the rising organic composition of capital - the fact that variable capital grows in absolute terms, but falls relatively because of the faster growth of constant capital - results in the fall of the general rate of profit, which undermines the reproduction of capital. In this article I will argue that: i) there is a "first version" of Marx's theory of crisis, outlined especially in the Grundrisse, which ascribes the secular crisis of the capitalist economy to the absolute decline of living labour and, therefore, to the falling mass of socially produced surplus-value; ii) only this "first version" of the theory of crisis allows the absolute internal limit of capital to be deduced consistently.


1999 ◽  
Vol 1 (3) ◽  
pp. 239-262 ◽  
Author(s):  
Miguel A. Delgado ◽  
Jordi Jaumandreu ◽  
Ana Martín Marcos

Capital ◽  
2008 ◽  
Author(s):  
Karl Marx

The organic composition of capital depends at any given time on two circumstances: first, on the technical relation of labour-power employed to the mass of the means of production employed; secondly, on the price of these means of production. This composition, as we have...


2015 ◽  
Vol 7 (12) ◽  
pp. 84
Author(s):  
Sunday B. Akpan ◽  
Glory E. Emmanuel ◽  
Inimfon V. Patrick

<p>Nigeria is currently the largest importer of milled rice in the world. The country has implemented several trade policies, set up institutions and incentives to boost domestic production with the intention to meet both domestic and international demands. Despite these attempts and favorable climatic, manpower and edaphic conditions in the country, Nigeria still spent millions of dollars on annual basis on rice imports. Based on this assertion, the study rather examined the roles of political and economic environments on rice import demand from 1960 to 2014 in Nigeria. Time series data were obtained from FAO, Central Bank of Nigeria and National Bureau of Statistics as well as World Bank. Augmented Dickey-Fuller-GLS unit root test showed that all series were integrated of order one. The long-run and short-run elasticity of rice import demand were determined using the techniques of co-integration and error correction models. The trend in rice import revealed that, the country had witnessed significant average positive exponential growth rate of about 15.975% in rice import from 1960 to 2014. The empirical results revealed that, the long run import demand function of rice responded negatively to the world price, industrial capacity utilization, nominal exchange rate, and the value of gross domestic production; whereas, it reacted positively to period of civilian rule, nominal value of external reserve, period of liberalization and the net volume of credit to the entire economy. The symmetric adjustment coefficient of rice import demand to a long run equilibrium stood at 39.65% per annum. In the short run, rice import had a significant negative and elastic relationship with the domestic and world price of rice; while it has significant positive inelastic association with external reserve and net credit to the economy. Based on these results; it is recommended that, the Nigeria government should designed programmes and incentives to boost industrial capacity utilization in the country. Markets determine nominal exchange rate should prevail in the economy. The country should regulate its foreign reserve policy by setting a threshold, above which excess deposit should be plough back to the domestic economy inform of investments rather than support excessive importation.</p>


2015 ◽  
Vol 49 (2) ◽  
pp. 303-312 ◽  
Author(s):  
Lefteris Tsoulfidis

The purpose of this article is twofold. On the one hand, to present a growth account of the evolution of the value composition of capital and in so doing to deal with some of the issues raised by Zarembka’s (2015) contribution. And on the other hand, to review some crucial relations between the variables that relate to the movement of the rate of profit and the current predicament.


1995 ◽  
Vol 27 (2) ◽  
pp. 386-399 ◽  
Author(s):  
Michael E. Salassi

AbstractOrdinary least squares and seemingly unrelated regression procedures were used to analyze the impacts of changes in rice prices and production costs on U.S. rice planted acreage. National and regional response models were estimated over the 1970-92 period. Supply-inducing prices of rice were estimated as a function of effective rice support prices and seasonal average market prices. Expected production costs per acre were estimated using lagged actual total variable cash production expenses per acre adjusted by the previous 3-year average annual change in variable expenses. Estimated short-run price and production cost elasticities were found to be inelastic at the national level. However, the magnitude of the production cost elasticities were found to be greater than the price elasticities. Estimated long-run elasticities at the U.S. level were inelastic for changes in price but elastic for changes in production costs. Although acreage response varied across regions, similar relationships were found between price and production cost elasticities.


2020 ◽  
Vol 8 (4) ◽  
pp. 589-615
Author(s):  
Gilberto Tadeu Lima ◽  
Jaylson Jair da Silveira

This paper investigates the impact on capacity utilization and economic growth as variables driven by effective demand of income distribution featuring the possibility of profit-sharing with workers. Firms choose to compensate workers with either a base wage or a share of profits on top of this base wage. In accordance with robust empirical evidence, workers in sharing firms have higher productivity than workers in non-sharing firms. The distribution of employee compensation strategies and labor productivity across firms is evolutionarily time-varying. Two major results carrying relevant theoretical and policy implications are obtained. First, heterogeneity in employee compensation strategies across firms (and therefore earnings inequality across workers) may emerge as a long-run equilibrium outcome. Second, beyond the short run, a higher fraction of profit-sharing firms may result in either higher or lower rates of capacity utilization and economic growth.


Sign in / Sign up

Export Citation Format

Share Document