Understanding the Law of Profitability in Capitalist Accumulation
Explore the relationship between the rate of profit, class struggle, and capitalist accumulation. From the general law of accumulation to the law of profitability, examine how displacing labor affects the average rate of profit and learn about Marx's law of profitability. Discover the evidence from the UK and the impact of productivity on labor within the context of capitalist accumulation.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
The rate of profit and class struggle Michael Roberts
Accumulation Accumulate, accumulate! That is Moses and the prophets! Volume One, Chapter 25 Accumulation for accumulation s sake, production for production s sake: by this formula classical economy expressed the historical mission of the bourgeoisie Volume one Chapter 24.
The general law of capitalist accumulation The accumulation of capital, though originally appearing as its quantitative extension only, is effected, as we have seen, under a progressive qualitative change in its composition, under a constant increase of its constant, at the expense of its variable constituent.
From the law of accumulation to the law of profitability Displacing living labour from production depresses the average rate of profit, since only living, productive wage-labour creates surplus- value (the social substance of profit, rent and interest). The tendency for the rate of profit to fall is offset by counteracting factors, but these factors cannot entirely negate the law as such .
Marxs law of profitability ROP = S/C+V Here s the trick! ROP falls if C/V rises faster than S/V s/v/ c/v+1 C/V rises faster (tendency) BUT there are times when S/V rises faster (countertendency)
From the general law of accumulation to the law of profitability as such
Both secular and cyclical UK rate of profit (%) 28 Rising ROP and recovery 26 High ROP: recovery and post- war boom Neo-liberal recovery 24 22 Falling ROP and long depre ssion Falling ROP and national crisis 20 Rising ROP and long boom 18 Falling ROP, crisis Falling ROP and long depression 16 Post-war slump and depression 14 Marx publishes Capital Marx does French edition Engels publishes Vol 2 and 3 12 10 8 1855 1867 1873 1879 1885 1891 1897 1909 1915 1921 1933 1939 1945 1951 1957 1963 1975 1981 1987 1999 2005 1861 1903 1927 1969 1993
The evidence: Brazil Brazil rate of profit (%) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 1950 1953 1956 1959 1965 1968 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2007 2010 1962 1971 2004
UK profitability and the class struggle Pre-1914 strikes in the UK (wd lost) 45000 40000 35000 30000 25000 Rising profitability, recovering labour movement Falling profitability; stronger unions and labour 20000 15000 10000 5000 0 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916
The inter-wars years UK strikes 1916-44 (wd lost) 180000 160000 140000 120000 100000 Falling profitability; stronger unions and labour movement 80000 60000 Rising profitability, weak unions 40000 20000 0 191619181920192219241926192819301932193419361938194019421944
The post-1945 era Strikes in the UK 1946-2014 -working days lost 30000 Falling profitability; strong unions and labour movement 25000 20000 15000 Rising profitability, weak unions High profitability, recovering labour movement 10000 5000 Depression 0 1946 1949 1952 1955 1958 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012
Brazil: profitability and the class struggle
