Reproduction and Crisis in Capitalist Economies

Author(s):  
Deepankar Basu

An economic crisis in capitalism is a deep and prolonged interruption of the economy-wide circuit of capital. Crises emerge from within the logic of capitalism’s operation, and are manifestations of the inherently contradictory process of capital accumulation. The Marxist tradition conceptualizes two types of crisis tendencies in capitalism: a crisis of deficient surplus value and a crisis of excess surplus value. Two mechanisms that become important in crises of deficient surplus value are the rising organic composition of capital and the profit squeeze: two mechanisms that are salient in crises of excess surplus value are problems of insufficient aggregate demand and increased financial fragility. This chapter offers a synthetic and synoptic account of the Marxist literature on capitalist crisis.

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.


2019 ◽  
pp. 36-54
Author(s):  
Michael Roberts

Michael Roberts oferece uma crítica abrangente a Harvey e argumenta que Marx nunca abandonou a lei da queda tendencial da taxa de lucro como uma explicação relevante para as crises. Ele nunca voltou à teoria simplesmente porque estava satisfeito com ela. Ao invés de desenvolver a teoria, tentou descobrir como usá-la para explicar a natureza cíclica do capitalismo bem como sua natureza transitória. Roberts defende que os pressupostos da lei são realistas e podem ser reduzidos a apenas dois: que a força de trabalho é a única fonte de valor e que a acumulação de capital leva ao aumento da composição orgânica do capital. O autor se opõe à visão de que cada crise tenha uma origem diferente e “conjuntural”. A natureza recorrente das crises capitalistas implica que tenham uma causa comum.ABSTRACTMichael Roberts offers a comprehensive critique of Harvey and argues that Marx never abandoned the TRPF as a relevant explanation of crises. He never went back to the theory in his later years simply because he was satisfied with it. Rather than developing the theory he tried to figure out how to use it to explain the cyclical nature of capitalism as well as its transitory nature. Roberts contends that Marx’s assumptions for the TRPF are realistic and can be reduced to just two: labor power is the only source of value, and capital accumulation leads the organic composition of capital to rise. He argues against the view that each crisis has a different or ‘conjunctural’ origin. The recurrent nature of capitalist crises implies that they must have a common cause. Tradução: Cássio Arruda Boechat ([email protected])


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])


2008 ◽  
Vol 16 (4) ◽  
pp. 181-203 ◽  
Author(s):  
Jim Kincaid

A further critique of Fine and Saad-Filho's reading of Marxist political economy: (a) it neglects the monetary dimension of Marx's analysis; (b) it focuses too much on production, and on the organic composition of capital, treated in isolation from the overall circuit of capital. An alternative theorisation is proposed, stressing what will now be called emergence patterns in Marx's value theory (his term was laws of tendency), and giving due weight to circulation, realisation, competition and capital allocation.


1997 ◽  
Vol 21 (3) ◽  
pp. 115-136 ◽  
Author(s):  
Alfredo Saad-Filho

This article analyses the transformation of values into prices of production from the point of view of differences in the organic composition of capital. Marx's transformation has two stages. In the first, the value of the means of production used up is irrelevant; in the second, the economy is analysed at the level of price. The transformation helps to explain the distribution of labour and surplus value across the economy, and substantiates the claim that value is produced by labour alone. However, it does not allow the vector of prices of production to be calculated.


2021 ◽  
pp. 030981682110547
Author(s):  
Gonzalo Durán ◽  
Michael Stanton

This article aims to examine the dynamics of the Chilean economy as a consequence of actions taken by companies whose aim is to make profits. As such, the economic analysis used is Marxist and makes use of those classical indicators described in Capital (Rate of Surplus-Value, Organic Composition of Capital and Rate of Profit). It is maintained that with the Marxist method, we can discover that behind the accumulation of incomes lies the fact that out of each 8 hours worked, only 3 finance wages and 5 benefit the owners of capital. That fraction of the unpaid labour received by capital but invested back as new capital, plus that ‘excess’ surplus value that is consequence of high copper prices, raises the physical, but not necessarily the value, capital-per-worker ratio. As a consequence, that relation of exploitation to capital accumulation, which Marx called the Rate of Profit, is found to fall, rise and then fall again. We understand that various approaches have been made to calculate the classical indicators and include some of them as alternative methods in our results.


1983 ◽  
Vol 5 (1) ◽  
pp. 136-162
Author(s):  
Robert Boyer

The deepening of the economic crisis in recent years has not failed to arouse lively discussion of the origins of the problem and the stakes involved. Against this background many analyses have been proposed of the labor movement, union strategies, and industrial relations. This is hardly surprising, given the fact that the effects of the crisis have been felt in almost every sphere of society.


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...


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