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Marxist Crisis Theory and the Rate of Profit in the U.S. Economy during 1975-2008
- Source :
- Economic and Political Studies. 1:44-78
- Publication Year :
- 2013
- Publisher :
- Informa UK Limited, 2013.
-
Abstract
- The cyclical fall in the rate of profit reveals the basic mechanism of the cyclical fluctuation of the economy. A new synthesis of the Marxist crisis theory necessitates calculating the rate of profit as well as considering factors such as capital-labor relations, realization of value, the organic composition of capital, and money and credit. Empirical studies suggest that the U.S. profit rate in real economy showed no signs of effective recovery during 1975-2008. The shrinking profit share caused by growing employment of non-production workers turns out to be the major factor contributing to the cyclical fall in the rate of profit, which in turn may be traced to the reorganization of the production process before the 1990s and the growing flexibility of employment relations after the 1990s. With long-term stagnation of the rate of profit, a new, financialised model of accumulation that heavily depends on increasing liquidity in the economy took shape in the United States, making the U.S. economy ...
- Subjects :
- Economics and Econometrics
Sociology and Political Science
Monetary economics
Crisis theory
Profit (economics)
Market liquidity
Organic composition of capital
Market economy
Political Science and International Relations
Rate of profit
Economics
Financialization
Marxist philosophy
Industrial relations
Subjects
Details
- ISSN :
- 24704024, 20954816, and 19752008
- Volume :
- 1
- Database :
- OpenAIRE
- Journal :
- Economic and Political Studies
- Accession number :
- edsair.doi...........8ccb84eecf63261aa12a981890bf76d9