The rate of profit and class struggle

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.

Accumulation

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.”

Rising organic composition

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’.

Marx’s law of profitability • ROP = S/C+V Here’s the trick! ROP falls if C/V rises faster than S/V C/V rises faster (tendency) BUT there are times when S/V rises faster (countertendency)

Profitability and crises

The evidence: the UK

And productivity of labor

From the general law of accumulation to the law of profitability as such

Both secular and cyclical

The evidence: Brazil

UK profitability and the class struggle

The inter-wars years

The post-1945 era

Brazil: profitability and the class struggle

The rate of profit and class struggle