The important thing, in their horror in front of the falling rate of profit,
Ia, however, feel that the capitalist mode of production
forms in the development of productive meetings with the limits,
that in and of itself have nothing to do with the production of wealth,
this limit and the limited special witnesses
and the only historical character of this mode of production,
and that it is not the mode of production ever
Ia for the production of wealth, but rather reached a certain stage
conflicts with its further development "
[Marx's Manuscript of the third volume of Capital]
Apparently it is not possible to get rid of Marx. It seemed to say that
made. Just twenty years ago "with the collapse - the most tragic farce that (the tragedies
would follow soon) - regimes in Eastern Europe and the victory of capitalism in
sauce Thatcher-Reagan, even on Marx and his theories seemed
finally dropped the curtain. It seemed that the page of Marxism
had been definitively turned and that the writings of Marx were now destined
historians and a handful of nostalgic timeless. The volumes of
of the works of Marx and Engels in the former East Berlin of the early nineties
crowded the stalls of used books between the indifference of passers-by seemed
be the best proof of this destiny.
Unfortunately, however, to address and eliminate the contradictions of reality not
enough to argue that they do not exist. This is true for individuals as
companies. Even the capitalist society of our day, or "economy
market" if you prefer. And so, in 2007, came the crisis that still lasts.
The worst dal1929 forward. These years and then show us a face of the capital
very different from that smug and triumphant, in the late eighties.
The result is to undermine many of the certainties which had been built on the
world view and philosophy of story spread on a mass level in the last
decades. How can you not have doubts about the market "in a
situation where wealth is destroyed thousands of billions of euro, and
a few months 50 million unemployed (almost I ' entire Italian population!)
adding worldwide 180 million existing? What "efficiency"
is this? How can I deny this gigantic waste of resources
human and material? E most importantly, how can I avoid this?
ln bottom, these are questions and these questions have brought Karl Marx
the headlines. In ways unthinkable just a few months ago
. The beard of the philosopher of Trier returns to appear in the pages of newspapers and periodicals
: from the pages of the Financial Times, the copertna of Foreign-bit
Iícy and even that of the "Friday" of the Republic. And again, the president
French Nicolas Sarkozy, who takes pictures while you browse your capital, or
German Finance Minister Peer Steinbrück that his goodness, grant that "there are
parts of Marx's theory that are not so bad [1] .
is too easy to argue that these are marred by misunderstandings rediscovered
(one for all: see Marx in a theoretical "pre-Keynesian" the importance of
I'intervento-state economy). At one point, however, renewed attention
against Marx hits the right: the current crisis, Marx tells us more
and better than legions of economists of our day. Why allows us to situate
in a long-term trend of capitalist society: the fall of
rate of profit.
1. The law
The law of falling tendency of the rate of profit is one of the aspects
most debated and misunderstood the theory of Marx. I will not go into the merits of
this debate, but I will expose to the general lines of thought
of Marx, which emerge from the manuscript of the third volume of Capital [2] ,
comparing it with what has happened in recent years.
For Marx the value of the goods is given by the work embedded in it. Only
human labor (living labor) can create value and preserve the one included in
machinery (dead labor) and then provide it to the capitalist his profits through
unpaid work ( surplus labor), or extra work than
is necessary to reproduce the labor force (labor required), this surplus labor
produces an added an added value compared to the value of
work force hired since the beginning of the capitalist production process. Just
because of this peculiarity of human labor to create new value Marx defines
's Operating capital used to buy the labor power variable capital
and what used to purchase machinery and Working capital means constant.
Now, the problem is that with the development of the capitalist mode of production
! In place "a relative decrease of variable capital in relation to capital
constant and then in relation to total capital put in motion "
Marx calls this phenomenon also talking of a "progressive higher
organic composition of capital." This is actually another expression
the gradual development of the productive power of social work , which is manifested in the fact that in general, through the increased use of machinery, capital fixed more raw and auxiliary materials are processed into products
same time , ie with less work. "The relative decrease of variable capital in relation to constant capital means that, remain the same degree of
exploitation of labor, the rate of profit , ie the ratio of surplus value
and the anticipated total capital (the sum of variable capital and constant capital) decreases . This is in brief the law of the fall trend rate of profit. The term "fall", which usually translates in Italian
German Fall, can be misleading, as it gives I'idea of \u200b\u200ba "collapse" sharp and sudden
. In fact, the Marxist theory gave rise to some interpretations "crolliste. These interpretations are wrong already at the level of interpretation (as well as having clearly proved wrong in terms of diagnosis of the development of capitalism): it is Marx himself to insist on the simple character of "trend" for more non-linear law (the Wherefore already excludes the suddenness). And after all the Fall term (and related I'aggettivo); has a meaning that is not reducible to the sudden fall and is in addition frequently replaced by a noun whose meaning gradually gives more sense of what Abnahme (decrease).
2. Factors contrast
The decrease in the rate of profit can be partially offset
the concentration of capital. It means that, while decreasing the proportion of
constant than variable capital, a larger number of workers
work for a single capital is "the mass of profit increases at the same time and despite the falling rate of profit." It is hardly necessary
recall in this connection that the process of concentration of capital
giant has made progress in recent years, creating some real giants
A New York have also created a directory especially for them: the "Global Titans "
monopoly rents they can afford. In some areas the concentration
is so advanced that we are in a state of quasi-monopoly
by a single firm: for example, has calculated that over 80% of the world's computer turns on Microsoft operating systems.
But the raise of the mass of profits is not enough to invalidate the effects of the law. It is the same as Marx observed that "if we consider I'enorme development of the productive forces of social work eg. Only in recent years than in all previous periods, especially when you consider I'enorme mass of fixed capital that enters the process total share of production in addition to the machinery itself, instead of the difficulties that have so far discussed by economists, namely as an explanation to the falling rate of profit, takes over the opposite: how can we explain the fact that this fall is larger or faster? ". Marx's answer is this: should
factors come into play against the current, which hinder and contradict I'efficacia
of the general law, giving the character than just a trend, so
where we have defined the fall of the general rate of profit as
a downward trend " .
The main factors of contrast are these:
1) Increasing the degree of labor exploitation , ie growth
capital gains, especially through the extension of working time
(absolute surplus value) and I'intensificazione labor (relative surplus value) . And
what has happened in recent years both in developing countries, which are delocalized
industrial plants, as in the advanced capitalist countries.
From this point of view is absolutely emblematic of the rise time
equal employment wage (ie the raise of absolute surplus value) produced
few years ago in private companies in a country like Germany.
The increase in the rate of surplus value is realized so that even if not eliminate
the general law of falling rate of profit "means that it acts more like
trend, ie as a law whose completion is paralyzed,
brakes, slowed down, weakened by circumstances acting in the opposite direction. "
2) compression of wages at below its value. According to Marx
this is "one of the most important causes that slow down the tendency to fall
the rate of profit." In this regard it is important to note that the value
of the workforce is historically determined. In this respect, there is no doubt
that the reduction of wages took place in recent years, in parallel processes
precariousness of the labor force, places them in many cases well below their
historical average of 2-3 earlier decades. This is even more evident
if one takes into account the attack on the various components of indirect wages
and delayed (increased cost of public services, widespread decline
of social protection, privatization of pension systems, etc.). .
But we speak the digits. In the U.S., income inequality
reached the highest point in the twenties. The same goes for Britain
I'andata after Blair's Labour Party to power in 1997: here, according
government figures published in May 2009, the gap inequality is
highest ever [3] . But the reduction in the share of gross domestic product
goes to wages, and against the growth of the share allocated to profits, a trend that is affecting all countries in mature capitalism, as highlighted in a search
Bank for International Settlements in 2007: in Italy "for example,
from 1983 to 2005 workers have lost 8 percentage points, went further
profits (which are in the period rose 23% to 31 % of the total) [4] The same
European Commission Employment in Europe 2007 has had to admit:
"in most EU countries the share distribution of work
reached a peak in the late '70s and early '80s, then
reduced to levels below those before the first oil shock. " Finally,
according to a survey of International Labour Office in Geneva, wages
world average in 1995-2007 remained below growth of GDP. In
most countries the share of income going to wages has fallen further
in 2001-2007 than during 1995-2000. Throughout the period
it decreased compared to the profits [5] .
3) fall in the prices of the elements of constant capital . In this regard
Marx notes, "the same trend that increases the mass of constant capital
in relation to that variable, reduces through productive force I'accresciuta
labor value of the elements of constant capital, and thus prevents
the value of constant capital - which also constantly grows - grows in
same proportion in which it grows the volume of material of constant capital, ie
I'entità material means of production that are set in motion by
same workforce. "It follows that in fact the change in the proportion between capital
variable and constant capital is in fact much lower than what you might
inferred rising material of the entity (machinery
etc..) composing it.
4) Overpopulation on this aspect in recent years has
expressed in particular in the form of pressure of a huge military industrial
present in reserves of emerging countries, especially in Asia, but also,
eg., in Eastern Europe. This resulted in a massive relocation
of industrial production to the newly industrialized countries. More
in general, the heightened competition from products manufactured in countries with lower cost
of the workforce has exerted a strong influence on wage moderation
industrially advanced countries. This explains the fact, apparently
controintutivo (but certainly in contrast to the rhetoric
the beneficial effects of globalization), which in the past ten years the countries in which
foreign trade has grown as a proportion of GDP were also the countries that have
known, on average, greater decrease in the share of GDP
went to wages [6] . With regard to this factor against the Marx notes
between I'altro as one of the consequences "of the cheap price and mass
of employees available, or made redundant," in turn stemming from overpopulation on workers, there is the fact that "in many branches of
production remains more or less the merely formal subsumption of labor under
capital, and lasts longer as the overall level of development
at first sight would make possible. "This means products that are lagging behind
and more labor intensive than in the abstract would be allowed by the development
technology, due to the fact that the low price of labor power makes
still affordable. In this regard it is interesting to observe such
that the much-vaunted role of services in providing jobs in the United States of
late nineties can be attributed mostly to low-wage jobs and low
labor productivity, made possible by the availability of much labor surplus [7] And a similar argument could be made in relation to
reluctance of many industrialists to invest our own in technological innovation.
5) foreign trade. According to Marx, this factor is a factor
to contrast with the falling rate of profit for various reasons.
First, thanks to foreign trade volume of production increases
allowing an expansion of scale of production and consequently a reduction
the unit costs of production: this "makes it cheaper both the
elements of constant capital, and those that form directly to the capital
variable (means of subsistence). "I n this way it acts in a manner favorable
increase in the rate of profit, on the one hand by increasing the rate of surplus value
(because the value of the force working-set, and then a majority
of the working day can be represented by not working paid) and
another by reducing the value of constant capital (which slows down the raise
organic composition of capital). You doubt the role that this factor
played in recent years, in terms of low inflation and higher margins
compression of wages.
ln Secondly, Ia technological superiority of the goods produced in a given country can
allow superprofits in to compete with goods produced elsewhere
with less advanced technology, "the capital invested in foreign trade
can yield a higher rate of profit "- Marx notes
this regard - because here" you are competing with goods produced by other
countries with less production conditions favorable and so the more advanced countries
sells its goods above their value, although most of the cheap
competing countries. "In this regard it should be noted that, as regards the countries
to mature capitalism (or - as Lenin said - "more than mature"), this,
that for a long time played an important role (
giving rise to many theories on the "unequal exchange" as a permanent feature
domain in the countries of the center of capitalism than the 'periphery' )
has lost its weight in recent years, thanks to the impressive progress
in technology from countries such as India, China and other countries of Southeast Asia.
ln Third, "as On the other hand, regards the capital invested in colonies "
(but we could easily replace this term with" countries emerging "),
" they can yield higher profit rates, because in those countries the rate
profit is generally higher because of the child development and in the second
place .. . there is a greater exploitation of labor. You can not see because the
higher rates of profit, that the funds so invested in certain branches
returnees, should not be here ... fall within the general leveling of
general rate of profit and therefore should not raise a specific
share. " It is easy to see how this issue applies perfectly to many
today's foreign direct investment made in developing countries or "economies
rapid development," as they say now. The same applies for the short term.
The effects of medium-long term foreign trade, however, are not so favorable
the rate of profit. In fact, as noted by Marx (with obvious reference
England of his day), "the same foreign trade develops
capitalist mode of production and therefore the decrease in home capital
variable than constant and produces the other hand, overproduction
relationship abroad, so he again opposed to the long I'effetto.
should be emphasized, however, a peculiarity of the current situation: the 'expansion of
trade has certainly been significant in recent decades primarily in
geographical sense (think of what it meant I'apertura markets ended the first
capital such as those of Eastern Europe); but it must also be in the sense of quality.
In other words, it is towards a expansion of the sphere of trade,
or of what is marketable and will be exploited. Among the countermeasures
the falling rate of profit there is in fact putting the benefit of property
joint, ie value in use until yesterday and tried to free it and try to transform
in exchange values \u200b\u200b(eg water resources), and of what I'ampliamento
that is covered by a patent (in this regard, it now goes by the genome, certain
types of plant, property intellectual). From this point of view, the trend is
that the colonization of every aspect of existence by capital.
6) Increase in productive capital interest . The latter factor,
Marx merely mentioning is the destination for an increasing share of capital
interest in productive capital, ie speculative investment, eg.
in bonds or shares. As we shall see, this is a big factor today
importance.
3. The fall in the rate profit I'antidoto of credit, the crack
We examined factors counter the downward trend of
rate of profit, and sees the presence in the most recent economic developments.
But as things stand with regard to the same fall in the rate of
profit? Although this trend I'agire factors
contrast seen above, is confirmed by the data in our possession or not? The answer is certainly yes
. This is true for a long period of time. In the period
dal1973 to 2003, the rate of growth of GDP per capita was just over
half the rate of growth recorded in the years 1950 -1973. If the calculation
China is excluded, it would be lower by almost two thirds [8] . And within
this same series is always less than the growth over the years.
World growth in the nineties has been lower than average
previous decades. [9]
And specifically regarding the rate of profit? The deeper
Recent research shows a general trend in long-term
declining rate of profit in recent decades and its convergence towards the
down and to similar levels in the main countries of 'industrialized West,
albeit uneven developments among them. Particularly telling data
on Germany, France and Italy, which show a halving of
rate of profit between the early sixties and the early years of this decade. [10]
I'Italia With specific regard to the governor of the Bank of Italy, Mario Draghi
, I'artefice privatization of the Nineties, said quote:
"over the past two decades has been one of our
stagnant productivity, low investment, low wages, low consumption, high taxes." [11] Japan,
that moved from relatively higher levels of profit rate, shows a decrease
even more from 1970 to the early years of the decade
in progress. United States and Great Britain, who moved from lower levels, seem
instead highlight some recovery since the eighties. [12]
But it is a recovery for spiked I'appunto the giant bubble of financial assets
and credit growth that has exploded in the summer of 2007.
As we have already mentioned on these pages [cf. No.125], this superfluous
finance and debt had a triple function:
1) mitigate the consequences of falling wages and lead to substantial release of the dynamics of consumption than of income due to the development of consumer credit and wealth effect produced by a succession of speculative bubbles
(last in order of time, the new economy bubble and the real estate);
2) avert the outbreak of the crisis in time overproduction in the
(typical case of the automotive industry, where sales were artificially inflated
use for years with very stringent credit installment
I'acquisto for passenger cars, which had charged rates close to zero);
3,) allow the crisis in the capital of exploitation in industry
high profitability in financial and speculative [for a detailed explanation
see these three aspects. still no.l25]. Particularly striking in the case of
United States, where in the early eighties, the financial sector boasted l0% of
total profits, while in 2007 this proportion rose to 40%. In addition, between
2002 to 2007, roughly half of U.S. GDP growth was driven by
real estate. And with all this, if we consider the average profits of enterprises
U.S. before taxes after 1940, there is still a constant
decline: from l94l to 1956 the rate of profit was 28%, from
1957 to 1980 was 20%, to drop again to the l4% in the period l98l-2004. [13]
last of these periods the level of industrial capacity utilization is
always been less than the '82% [14]
Then came Ia reckoning. That act is in a real crisis in general,
through which it is occurring on a massive worldwide destruction
capital necessary to restore conditions of higher profitability
capital .
Marx wrote about it:
"The contradictions, seizures and acute crisis manifests the growing inadequacy of the productive development of society for the relations of production
which had so far. The violent destruction of capital, not as a result
circumstances and terns to it, but as a condition of its self-preservation, is
the most effective where it is known that has done his time and that
must give way to a higher level of social production " [15] seems difficult to give
wrong.
[1] Der Spiegel, September 29, 2008
[2] The quotations are my translation from Part of the falling rate of profit of the manuscript of Book III of Capital forthcoming in a volume of Marx's writings on the crisis that will come out at the publisher "Derive Landing"
[3] J. Plender Mind the gap. Why face a crisis of business May legittimacy in Financial Times, April 8, 2008. See the situation Britannica M. Engels, A Faustian pact That Backfired spectacularly in Financial Times, May 26, 2009
[4] L. Ellis - K. Smith, The global upward trend in the profit share , Bank for International Settlements, July 2007. The research was taken up in an excellent article by M. Ricci , The decline in salaries in the Republic , May 3, 2008. See also M. Mucchetti, Back to the topic of redistribution, in Corriere della Sera , August 24, 2008.
[5] Global Wage Report 2008 / 9 , International Labour Office, Geneva, November 2008. See in particular pages xiii, 20, 59. But all the research is of great interest.
[6] Global Wage Report 2008 / 9, cit., P. 22
[7] On this point see N. Colajanni, The American miracle: a model for Europe?, Milano, Sperling & Kupfer, 2000, p. 30 ff.
[8] A. Kliman, The destruction of capital and the current economic crisis , January 15, 2009.
[9] In this respect refer to the data contained in J. Halevy, Stagnation and Crisis: U.S. Asia US-Japan and China , in L. Vasapollo (ed.), labor against capital. Insecurity, exploitation, relocation , Jaca Book, Milano 2005, pp.181 ff.
[10] M. Li, F. Xiao, A. Zhu, Long waves, institutional changes, and historical trends: a study of the long-term movement of the profit rate in the capitalist world economy in Jousnal of World-Systems Research, vol. XIII, No. 1, 2007, pp. 33-54, part. Pp. 38-40
[11] Final Thoughts , Bank of Italy, May 29, 2009
[12] M. Li, F. Xiao, A. Zhu, cit.
[13] A. Kliman, cit.
[14] J. Bellamy Foster, F. Magdoff, Financial Implosion and Stagnation, Back to the real economy in Monthly Review, December 2008.
[15] K. Marx, the fundamental features of Critique of Political Economy, tr. com. of g. Backhaus, K. now Marx, F. Engels, Collected Works , Editori Riuniti, Rome 1986, p. 137
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