The Economics of Modern Imperialism

This work focuses exclusively on the modern economic aspects of imperialism. We define it as a persistent and long-term net appropriation of surplus value by the high-technology imperialist countries from the low-technology dominated countries. This process is placed within the secular tendential fall in profitability, not only in the imperialist countries but also in the dominated ones. We identify four channels through which surplus value flows to the imperialist countries: currency seigniorage; income flows from capital investments; unequal exchange through trade; and changes in exchange rates. We pay particular attention to the theorisation and quantification of international UE and of exchange-rate movements. Concerning UE, we extend Marx’s transformation procedure to the international setting. We use two variables in the analysis of UE: the organic composition of capital and the rate of exploitation, and we measure which of these two variables is more important in contributing to UE transfers. We research a time span longer than in any previous study. We also introduce the distinction between narrow and broad unequal exchange according to whether two countries are assumed to trade only with each other or also with the rest of the world. As for the analysis of the exchange rates as a channel for appropriation of international surplus value, we reject conventional approaches because they are rooted in equilibrium theory. We find very strong empirical evidence that exchange rates tend towards the point at which the productivities are equalised. This is only a tendency because this equalisation is inherently incompatible with the nature of imperialism. Finally, given its topicality, we apply our analysis to the relation between the US and China and find that China is not an imperialist country according to our definition and data.

Prediction and caution after COVID-19 crisis: The ecological and epidemiological risks of financial speculation

Since the COVID-19 pandemic spread worldwide, optimistic ecological and economic analyses have arisen. On one hand, the lockdowns that have taken place are pointed out as a means of reducing gas emissions, environmental exploitation, and consequently, factors that reduce the risk of zoonoses. On the other hand, macroeconomic policies that support state intervention in the economy and social benefits are seen as a signal for a more social and eco-friendly organized capitalism. The objective of our article is to call for caution on these predictions, indicating a post-pandemic countertrend according to which the relationship between economy and environment might be even more unstable and conflictual after the pandemic. Here, we discuss the relevance of Karl Marx’s fictitious capital concept as a fundamental key to thinking about financial market pressures on the environment. Hereby, we aim to raise the concern that the financial policies adopted in the course of the crisis have encouraged speculative instruments that lead to the overaccumulation of fictitious capital. This, in turn, requires the increased exploitation and expropriation of the environment in order to realize the overaccumulated rights and claims on future surplus value. Thus, we argue that the risk of environmental destruction will not be reduced as claimed by optimistic assumptions, but on the contrary will increase in the next few years. Such a risk does not dismiss, but rather suggests that new zoonoses may also arise.

The reality of the law of value

In the wake of Böhm-Bawerk’s criticism that Marx’s law of value runs contrary to empirical facts, Marxian economics has developed mainly in two different directions: one based on the simple commodity production and the other on the mathematical identity of value with prices of production (the transformation problem). The author agrees with neither, arguing that Marx intended to base the law of value on the production process of capital, as in Capital Volume 1, independently of Capital Volume 3. However, the notion of this process and the law of value have not been sufficiently explained in Volume 1. Marx presents the value of a commodity as socially necessary labour objectified in Chapter 1 on the commodity, and later applies this rule to capitalist commodity products in Chapter 7. Pointing out the defects of this method, this article relocates the presentation of the dual nature of labour to the Labour Process (Chapter 7, Section 1), and the proof of the substance of value or the law of value to the Valorization Process (Chapter 7, Section 2). The Labour Process plays a key role in Volume 1, but it contains a fatal flaw. Consequently, Section 2 ends up with insufficient explanation. By reconstructing the Labour Process and the Process of Creating Value and Surplus value, the author confirms the meaning and reality of the law of value in Chapter 7, Section 2.

Catholicism and the Frankfurt School

The paper traces the development from the medieval, traditional union, through the modern disunion, toward a possible post-modern reunion of the sacred and the profane. It concentrates on the modern disunion and conflict between the religious and the secular, revelation and enlightenment, faith and autonomous reason in the Western world and beyond. It deals specifically with Christianity and the modern age, particularly liberalism, socialism and fascism of the 2Oth and the 21st centuries. The problematic inclination of Western Catholicism toward fascism, motivated by the fear of and hate against socialism and communism in the 20th century, and toward exclusive, authoritarian, and totalitarian populism and identitarianism in the 21st. century, is analyzed, compared and critiqued. Solutions to the problem are suggested on the basis of the Critical Theory of Religion and Society, derived from the Critical Theory of Society of the Frankfurt School. The critical theory and praxis should help to reconcile the culture wars which are continually produced by the modern antagonism between the religious and the secular, and to prepare the way toward post-modern, alternative Future III - the freedom of All on the basis of the collective appropriation of collective surplus value. Distribution and recognition problems are equally taken seriously.

A study of the labor process from a technology transformation perspective: the case of internet virtual teams

This article presents an empirical study of the labor process of internet virtual teams. It argues that organizations with a “horizontally virtual and vertically real” structure face a dilemma in the virtual team labor process. While a culture of engineers, which embodies equality, liberty, and cooperation, is the cultural basis of the virtual team, management is bureaucratic, emphasizing individual interests and hierarchical features. The coexistence of the two leads to cooperation and division of labor in virtual teams. Essentially, this is a compromising institutional arrangement adopted by corporations to triangulate technology culture and managerial control to obtain surplus value. Based on the preceding discussion, this paper ends by proposing a new theoretical framework for studying the labor process under the technological conditions of the internet.

Rentier capitalism in question

Rentier capitalism is an idea that has been drawing increasing attention. This article identifies the incoherence of the idea and then addresses its weaknesses as a critique of contemporary political economy. In the first place, it derives from a view of capitalism which privileges exchange rather than production. This explains its view of the relation between the monopoly control of assets and competition. While there may indeed be a current tendency to invest in assets, that does not necessarily act as a deadweight on production; rather it can act as an incentive to rationalize the labor process with a view to increasing the extraction of surplus value. It is suggested that one of the ways in which industrial capital accommodates itself to increasing rents, license fees and the like, is through a turn to extracting value in its absolute form; which may in then shed light on the stagnation of wage levels that has accompanied the turn to investing in assets.

The Chilean economy, an analysis of the dynamics of profits, investments and production: A Marxist approach

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.

Theory and Practice of Crisis in Political Economy: The Case of the Great Recession in Spain

This paper addresses Marx’s theory of crisis in order to analyze the Great Recession in Spain, a peripheral economy within the Eurozone. It demonstrates that underlying the problem of the “housing bubble” is an incapacity to generate surplus value, which in turn explains certain particularities related to capital composition, productivity, wages, and finance. The article further carries out a critique of both orthodox and heterodox approaches that focus on (1) profit squeeze caused by labor market rigidities, (2) underconsumption due to stagnant wages, and (3) finances, interest rates, and indebtedness JEL classification: B14, E11, E20, E43, J30