,*APT] #c ,! ,EPIGONES ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,! CRISES ( ! N9ETE5? C5TURY DISPLAY$ *>ACT]I/ICS :I* W]E CONNECT$ EQUALLY ) ! LEVEL ATTA9$ BY CAPITALI/ DEVELOPM5T & ) POLITICAL EV5TS4 ,?US ! CRISIS ( #ahaf WAS )\T A D\BT CLOSELY CONNECT$ ) ! MANY YE>S ( W> PREC$+ ,NAPOLEON'S FALL4 ,9 P>TICUL> ,5GLI% CAPITAL1 DESPITE ! 9CREAS+ ME*ANIZATION ( LABOR1 HAD GR[N TOO QUICKLY 9 RELATION TO ITS VALORIZATION REQUIREM5TS TO BE ABLE TO AVOID CRISIS BY WAY ( FUR!R EXPANSION4 ,! /AGNATION ?AT SET 9 MANIFE/$ ITSELF AS OV]PRODUCTION1 :I*1 AS ,I ,CONSEQU5CE ( ! IMPOV]I%M5T ( CONT95TAL ,EUROPE1 C\LD NOT BE OV]COME BY MEANS ( =EIGN TRADE4 ,?IS RESULT$ 9 A VIOL5T COLLAPSE ( PRICES1 :I* HIT AGRICULTURE & ! TEXTILE 9DU/RY P>TICUL>LY H>D & L$ TO ! 9TRODUCTION ( PROTECTIVE T>IFFS 9 ORD] TO /ABILIZE ! /ILL PR$OM9ANT AGRICULTURAL PRODUCTION4 ,!RE W]E MANY BANKRUPTCIES & BANK FAILURES4 ,WAGES W]E RADICALLY R$UC$1 & GR[+ UNEMPLOYM5T 5G5D]$ MASS POV]TY1 SOCIAL UNRE/1 ! MA*9E BREAK+ ( ! ,LUDDITE MOVEM5T1 & ALSO ! !ORIES'1 CRITICAL ( CAPITALISM1 ( ,SISMONDI & ,ROB]T ,[5S4 ,! G5]AL PRICE COLLAPSE ( ! DEPRESSION P]IOD1 :I* WAS PUNCTUAT$ T5 YE>S LAT] BY A NEW CRISIS1 ONLY CAME TO A /OP 9 #a#h#a#i4 ,! CRISIS ( #ahcf BEGAN 9 ,5GL& & ! ,UNIT$ ,/ATES4 ,9 BO? C\NTRIES 9DU/RIAL DEVELOPM5T HAD L$ TO WIDESPREAD SPECULATION & TO A SITUATION 9 :I* ! PRODUCTION ( PR(IT NO LONG] MET ! NE$ = IT4 ,! CRISIS TOOK ! =M NOTABLY ( A MONEY & /OCK-M>KET CRISIS BUT AFFECT$ ! :OLE ECONOMY1 U%]+ 9 A LONG P]IOD ( DEPRESSION ?AT SOON SPREAD OV] ALL ( ,EUROPE4 ,! APP>5TLY P]MAN5T CRISIS L$ TO ! REVOLUTION>Y EV5TS ( #ahdh & TO ! FIR/ BEG9N+S ( AN ANTICAPITALI/ LABOR MOVEM5T4 ,EV5 DUR+ ! UPSW+S )9 ! DEPRESSION1 ! LIV+ CONDITIONS ( ! WORK]S IMPROV$ ONLY 9 UNESS5TIAL WAYS1 ONLY TO S9K ALL ! DEEP] ) ! FIR/ ECONOMIC D[NTURN4 ,! L[ LEVEL ( WAGES ?AT PREVAIL$ WAS AN EXPRESSION ( ! /ILL L[ PRODUCTIVITY ( LABOR4 ,! RELATIVELY SMALL AM\NT ( SURPLUS VALUE1 ALONG ) ! ACUITY ( COMPETITION1 /IMULAT$ ACCUMULATION1 :I* ( C\RSE SOON REA*$ ! LIMITS ,( EXPLOITATION SET BY ! /ILL N>R[ BASIS ( ! CAPITALI/ RELATIONS ( PRODUCTION4 ,! AUTONOM\S DEVELOPM5T ( CAPITAL WAS NOT YET SUFFICI5T TO 5L>GE ! M>KET DECISIVELY BY ITSELF4 ,CRISES APPE>$ AS COMM]CIAL CRISES & F\ND EXPRESSION 9 A DISA/R\S FALL ( COMMODITY PRICES1 :I* ALL[$ = NO FUR!R PRODUCTIVE 9VE/M5T4 ,UND] !SE CONDITIONS ONLY ACCID5TS LIKE ! DISCOV]Y ( ! ,CALI=NIA GOLD FIELDS L$ TO A RISE 9 PRICES & A NEW PROSP]ITY ,EV5TS LIKE ! ,AM]ICAN ,CIVIL ,W>1 :I* AT FIR/ WAS A FACTOR ( CRISIS1 LAT] DROVE 9DU/RIAL & CAPITALI/ DEVELOPM5T T[>D AT A MORE RAPID TEMPO4 ,) ! GEOGRAPHICAL EXT5SION ( CAPITAL PRODUCTION1 CRISES REQUIR$ AN EV5 MORE 9T]NATIONAL *>ACT]1 BUT AT ! SAME TIME 5ORM\SLY PROMOT$ EV]Y UPSW+ ( ! ECONOMY4 ,H[EV]1 ! ACTUAL DEVELOPM5T ( CAPITAL ALL[$ NO O!R PROGNOSIS ?AN ! ONE ,M>X HAD MADE2 HIS !ORY WAS DIRECTLY CONFIRM$ BY REALITY1 :I* ?US GAVE =CE TO ! REVOLUTION>Y EXPECTATIONS CONNECT$ ) IT4 ,AL?\< EV]Y CRISIS HAD A *>ACT] ( ITS [N1 TO BE EXPLA9$ ONLY BY REF]5CE TO ! TOTAL SITUATION FROM :I* IT HAD >IS51 CRISES NEV]!LESS W]E *>ACT]IZ$ 9 COMMON BY ! 9T]RUPTION ( ACCUMULATION & ! OV]PRODUCTION ACCOMPANY+ IT1 :I* GAVE RISE TO MASS MIS]Y4 ,& AL?\< ! CRISIS CYCLE WAS NOT A REGUL>LY P]IODIC ONE1 IT NONE!LESS REALLY EXI/$ AS AN IRREGUL> PROCESS ,AT ! 5D ( ! N9ETE5? C5TURY1 H[EV]1 AS ,FRI$RI* ,5GELS SAID1 CRISES APPE>$ TO BECOME LESS SEV]E & ! P]IODS ( PROSP]ITY TO L5G!N2 AT ! SAME TIME1 ! ECONOMIC CONDITION ( ! WORK]S IMPROV$4 ,! PRODUCTIVITY ( LABOR HAD BE5 SUFFICI5TLY 9CREAS$ TO MA9TA9 ! PR(ITABILITY ( CAPITAL AS IT ACCUMULAT$ OV] LONG] P]IODS ( TIME4 ,?IS SITUATION GAVE RISE TO SOCIAL DEMOCRATIC RE=MISM & ! AB&ONM5T ( ,M>X'S !ORY ( ACCUMULATION AS A !ORY ( CRISIS & COLLAPSE4 ,:ILE ,5GELS SAW 9 ! 9CREAS+ MILDNESS ( CRISIS ! G]M ( MORE VIOL5T CRISIS 9 ! FUTURE1 ,$U>D ,B]N/E9 MA9TA9$ 9 #ahii ?AT ,SIGNS ( AN ECONOMIC WORLD-WIDE CRA% ( UNHE>D ( VIOL5CE HAVE NOT BE5 E/ABLI%$1 NOR CAN ONE DESCRIBE ! IMPROVEM5T ( TRADE 9 ! 9T]VALS BETWE5 ! CRISES AS P>TICUL>LY %ORT-LIV$4 ,MU* MORE DOES A 444 QUE/ION >ISE 444 7#a7 :E!R ! 5ORM\S EXT5SION ( ! WORLD M>KET1 9 CONJUNCTION ) ! EXTRAORD9>Y %ORT5+ ( TIME NECESS>Y = ! TRANSMISSION ( NEWS & = ! TRANSPORT ( TRADE1 HAS SO 9CREAS$ ! POSSIBILITIES ( ADJU/M5T ( DI/URBANCES2 & 7#b7 :E!R ! 5ORM\SLY 9CREAS$ WEAL? ( ! ,EUROPEAN /ATES1 9 CONJUNCTION ) ! ELA/ICITY ( ! MOD]N CR$IT SY/EM & ! RISE ( 9DU/RIAL C>TELS1 HAS SO LIMIT$ ! REACT+ =CE ( LOCAL OR 9DIVIDUAL DI/URBANCES ?AT1 AT LEA/ = SOME TIME1 G5]AL COMM]CIAL CRISES SIMIL> TO ! E>LI] ONES >E TO BE REG>D$ AS IMPROBABLE4 ,B]N/E9 ANSW]$ HIS [N QUE/ION ) ! /ATEM5T ?AT 0! =MULA ( ! CRISIS 9 & = ,M>X WAS NO PICTURE ( ! FUTURE BUT A PICTURE ( ! PRES5T DAY1 0SO ?AT TODAY1 0UNLESS UN=ESE5 EXT]NAL EV5TS BR+ AB\T A G5]AL CRISIS 444 !RE IS NO URG5T REASON = CONCLUD+ ?AT SU* A CRISIS WILL COME TO PASS = PURELY ECONOMIC REASONS40 ,= ,B]N/E9 & = RE=MISM 9 G5]AL1 A !ORY ( CLASS /RUGGLE BAS$ ON A T5D5CY T[>D CRISIS WAS \TMOD$1 S9CE A REVOLUTION>Y SITUATION CREAT$ BY ! BREAKD[N ( CAPITALISM WAS NO LONG] TO BE EXPECT$4 ,9 HIS REPLY TO ,B]N/E9'S REVISIONISM1 ,K>L ,KAUTSKY EXPLA9$ ?AT !RE IS NO !ORY ( BREAKD[N 9 ,M>X1 BUT ?AT ?IS WAS A POLEMICAL 9V5TION ( ,B]N/E9'S4 0,CRISES10 ,KAUTSKY >GU$1 WORK 9 ! DIRECTION ( SOCIALISM BY HA/5+ ! CONC5TRATION ( CAPITAL & 9CREAS+ ! 9SECURITY ( ! PROLET>IANS' LIV+ CONDITIONS1 ?US %>P5+ ! IMPETUS ?AT PRESSES ! WORK]S 9TO ! >MS ( SOCIALISM4444 ,FUR!RMORE1 ! CON/ANT NE$ TO EXP& ! M>KET CONTA9S YET A FUR!R FACTOR2 IT IS CLE> ?AT ! CAPITALI/ MODE ( PRODUCTION BECOMES IMPOSSIBLE FROM ! HI/ORICAL MOM5T :5 ! M>KET CAN NO LONG] EXT5D 9 ! SAME TEMPO AS PRODUCTION2 ?AT IS1 AS SOON AS OV]PRODUCTION BECOMES *RONIC4 ,B]N/E9 UND]/&S HI/ORICAL NECESSITY TO MEAN A SITUATION ( CON/RA9T4 ,H]E WE HAVE SU* A SITUATION :I*1 IF & :5 IT APPE>S1 WILL 9FALLIBLY LEAD TO SOCIALISM4 ,?US ! UP%OT ( ,M>X'S !ORY1 ACCORD+ TO ,KAUTSKY1 IS ! BREAKD[N ( CAPITALISM1 AL?\< !RE IS NO ,M>XIAN !ORY ( BREAKD[N4 ,! ATTEMPT WAS MADE TO OV]COME ?IS CONTRADICTION ) ! HYPO!SIS ?AT *RONIC OV]PRODUCTION C\LD BE A LONG1 DRAGG$-\T PROCESS1 SO ?AT IT WAS EV5 D\BTFUL :E!R ! BREAKD[N W\LD ACTUALLY OCCUR4 ,! CLASS /RUGGLE C\LD PUT AN 5D TO CAPITALISM LONG BE=E ! SY/EM FELL AP>T4 ,HE9RI* ,CUN[ BR\X'S !ORY ( ACCUMULATION4 ,9 HIS ESSAYS ON ! !ME ( 0BREAKD[N10 ,CUN[ >GU$ ?AT ,M>X & ,5GELS HAD D]IV$ ! SY/EM'S COLLAPSE ON ! ONE H& FROM CAPITALI/ ACCUMULATION1 & ON ! O!R H& FROM ! SPLIT BETWE5 ! CAPITALI/ MODE ( PRODUCTION & ITS MODE ( EX*ANGE1 :I* BLOCKS ! FULL UTILIZATION ( ! EXI/+ PRODUCTIVE =CES444 4 ,! CAPITAL WEAL? ALREADY G5]AT$ F9DS NO FUR!R ADEQUATE VALORIZATION1 EI!R 9 ! PROCESS ( PRODUCTION OR 9 ! PROCESS ( COMMODITY CIRCULATION2 ! DEVELOP$ EXPANSIVE P[] ( 9DU/RY COMES 9TO EV] %>P] CONFLICT ) ! ME*ANISM ( ! CAPITALI/ =M ( ECONOMY1 UNTIL ! LATT] F9ALLY BUR/S4 ,( C\RSE1 ?IS PROCESS ( BREAKD[N WAS /ILL PUT (F 9TO ! DI/ANT FUTURE1 S9CE CAPITAL HAD LE>N$ TO OV]COME ITS CONTRADICTIONS1 GR[+ \T ( COMMODITY CIRCULATION1 BY MEANS ( ! EXPANSION ( ! CAPITAL & 9DU/RIAL M>KETS ON A GLOBAL SCALE4 ,F9ALLY1 H[EV]1 ! CONTRADICTION BETWE5 SOCIAL PRODUCTION & ITS MODE ( DI/RIBUTION REMA9$ DECISIVE & WAS EXPECT$ TO PUT AN 5D TO CAPITALI/ PRODUCTION4 ,9 ?IS WAY ATT5TION REMA9$ FIX$ ON ! CONTRADICTORY DEVELOPM5T ( PRODUCTION & DI/RIBUTION1 ON ! 9CREAS+ DIFFICULTY ) :I* SURPLUS VALUE IS REALIZ$ AS A RESULT ( CAPITALI/ICALLY LIMIT$ CONSUMPTION4 ,9 ORD] TO DEMON/RATE ! VIABILITY ( CAPITAL1 IT WAS NECESS>Y TO D5Y ! ABILITY ( ?IS DISPROPORTIONALITY TO M5ACE CAPITAL4 ,?IS ,TUGAN-,B>ANOVSKY ATTEMPT$ TO DO4 ,9 HIS BOOK ON COMM]CIAL CRISES HE DESCRIB$ ! CRISIS CYCLE AS DID ALL ! O!RS :O EXPLA9 CRISIS 9 T]MS ( A DI/URBANCE ( ! PROPORTIONALITY ( SUPPLY & DEM&4 ,?IS DISPROPORTIONALITY1 :I* ALSO CAN BE UND]/OOD AS A DISPROPORTIONALITY BETWE5 ! DIFF]5T BRAN*ES ( PRODUCTION1 ,TUGAN-,B>ANOVSKY HELD TO BE ! SOLE CAUSE ( CRISIS4 ,A DI/RIBUTION ( CAPITAL 9 ACCORDANCE ) ! REAL DEM& = COMMODITIES W\LD BE 5\< TO ELIM9ATE CRISES4 ,>IS+ FROM ! PLANLESSNESS ( CAPITALI/ COMPETITION1 !Y CAN BE MADE LESS SEV]E BY 9CREAS+ CONTROL OV] ! ECONOMY & CAN 9 PR9CIPLE BE OV]COME4 ,IF ACCORD+ TO ,TUGAN-,B>ANOVSKY ! ORIG9 ( CRISIS IS TO BE F\ND 9 ! DISPROPORTIONATE DI/RIBUTION ( CAPITAL1 IT IS NOT TO BE F\ND 9 ! DI/RIBUTION ( ! SOCIAL PRODUCT BETWE5 LABOR & CAPITAL4 ,! RE/RICTION ( CONSUMPTION DOES NOT = HIM IMPOSE A LIMIT ON ACCUMULATION OR ON ! REALIZATION ( SURPLUS VALUE1 S9CE RE/RICTION ( ! DEM& = CONSUM] GOODS IS 9 NO WAY ID5TICAL ) RE/RICTION ( ! DEM& = COMMODITIES P] SE4 0,! ACCUMULATION ( SOCIAL CAPITAL LEADS TO A RE/RICTION ( ! SOCIAL DEM& = CONSUM] GOODS & AT ! SAME TIME TO AN 5L>GEM5T ( ! TOTAL SOCIAL DEM& = COMMODITIES40 ,?US ! 0ACCUMULATION ( CAPITAL CAN BE ACCOMPANI$ BY AN ABSOLUTE DECL9E ( SOCIAL CONSUMPTION4 ,A RELATIVE DECL9E ( SOCIAL CONSUMPTION RELATIVE TO ! SUM TOTAL ( ! SOCIAL PRODUCT IS 9 ANY CASE 9EVITABLE40 ,TUGAN-,B>ANOVSKY APPEAL$ TO ,M>X ) REG>D TO TWO PO9TS4 ,LIKE ,M>X HE SAW ! FUNDAM5TAL CONTRADICTION 0BETWE5 PRODUCTION AS A MEANS TO SATISFY HUMAN NE$S & PRODUCTION AS A TE*NICAL ASPECT ( ! CREATION ( CAPITAL1 ?AT IS1 AS AN 5D 9 ITSELF0 ,HE ADMITT$ ?AT 0! POV]TY ( ! MASSES ( PEOPLE1 POV]TY NOT 9 AN ABSOLUTE BUT 9 A RELATIVE S5SE1 9 ! S5SE ( ! 9SIGNIFICANCE ( LABOR'S %>E ( ! TOTAL SOCIAL PRODUCT1 IS ONE ( ! PRECONDITIONS ( COMM]CIAL CRISES02 BUT IT W\LD BE FALSE TO SUPPOSE 0?AT ! DI/RESS ( ! WORK]S 444 MAKES ! REALIZATION ( EV] EXP&+ CAPITALI/ PRODUCTION IMPOSSIBLE BECAUSE ( 9SUFFICI5T DEM&1 444 S9CE CAPITALI/ PRODUCTION CREATES ITS [N M>KET = ITSELF0 ,ON ! CONTR>Y1 0! SMALL] ! %>E ( ! WORK]S1 ! GREAT] IS ! %>E ( ! CAPITALI/S & ! MORE QUICKLY CAPITAL ACCUMULATES-NECESS>ILY ACCOMPANI$ BY SL[D[NS & CRISES40 ,TO DEMON/RATE ! POSSIBILITY ( UNLIMIT$ ACCUMULATION ,TUGAN-,B>ANOVSKY MADE USE ( ! ,M>XIAN REPRODUCTION S*EMATA 9 ,VOLUME #b ( ,CAPITAL4 ,AS HE SAW IT1 !SE S*EMATA GRANT$ ! POSSIBILITY ( A CONT9U$ & CRISIS-FREE TOTAL REPRODUCTION ( CAPITAL SO LONG AS ! REQUISITE PROPORTIONS BETWE5 ! 9DIVIDUAL SPH]ES & BRAN*ES ( PRODUCTION >E MA9TA9$4 ,S9CE !SE PROPORTIONS >E DIFFICULT TO MA9TA9 BECAUSE ( ! AN>*Y ( ! ECONOMY1 CRISES OCCUR1 BUT NOT ! OBJECTIVE IMPOSSIBILITY ( FUR!R ACCUMULATION4 ,?US EV]Y !ORY ( BREAKD[N MU/ BE REJECT$1 & ! ABOLITION ( CAPITALI/ SOCIETY MU/ BE CONSID]$ A MATT] ( ! DEVELOPM5T ( SOCIALI/ CONSCI\SNESS4 ,9 DEAL+ ) ,M>X1 ,TUGAN-,B>ANOVSKY ( C\RSE =GOT ! !ORY ( VALUE ON :I* ! ,M>XIAN !ORY ( ACCUMULATION IS BAS$4 ,OR RA!R HE REF]R$ TO ,M>X )\T TAK+ ACC\NT ( HIS !ORY1 AS HE1 LIKE ,B]N/E9 & O!R RE=MI/S1 HAD ALREADY TAK5 UP ! SUBJECTIVE VALUE !ORY ( B\RGEOIS ECONOMICS4 ,?US1 AS HE HIMSELF SAID1 HE DID NOT UTILIZE 0! USUAL ,M>XIAN T]M9OLOGY 7CON/ANT CAPITAL1 V>IABLE CAPITAL41 SURPLUS VALUE710 S9CE1 ACCORD+ TO HIM1 09 ! CREATION ( ! SURPLUS PRODUCT-?US ( R5T-NO DI/9CTION BETWE5 HUMAN LABOR P[] & ! DEAD MEANS ( LABOR IS TO BE MADE4 ,ONE \IABLE CAPITAL = ! SAME REASON AS HUMAN LABOR P[]1 S9CE BO? YIELD SURPLUS VALUE40 ,CONSI/5TLY1 HE ACCEPT$ 7) SOME RES]VATIONS7 ! EQUILIBRIUM !ORY DESC5D$ FROM ,SAY1 NAMELY ! IDEA ?AT ) A PROPORTIONAL DI/RIBUTION ( SOCIAL PRODUCTION1 ! SUPPLY ( COMMODITIES MU/ BE EQUAL TO ! DEM&1 & HE 9T]PRET$ ,M>X'S REPRODUCTION S*EMATA 9 ?IS S5SE4 ,9 ?IS WAY ! CONTRADICTION ( ACCUMULATION /EMM+ FROM ! FALL 9 ! RATE ( PR(IT VANI%$ FROM HIS CONCEPTION1 & ) IT ALL ! LIMITS ( CAPITALI/ PRODUCTION4 ,ODDLY 5\<1 ?IS FACT W5T UNNOTIC$ 9 ! POLEMIC DIRECT$ AGA9/ ,TUGAN-,B>ANOVSKY )9 ,SOCIAL ,DEMOCRACY4 ,KAUTSKY1 ?\< GRANT+ ?AT 0A LACK ( PROPORTIONALITY 9 PRODUCTION CAN ALSO PROVOKE A CRISIS10 NEV]!LESS CONT9U$ TO 9SI/ ?AT 0! ULTIMATE REASON = P]IODIC CRISIS IS TO BE F\ND 9 UND]-CONSUMPTION40 ,HE DIRECT$ HIS 5]GIES AGA9/ ! EQUATION ( HUMAN LABOR P[] ) ! DEAD MEANS ( PRODUCTION1 9 ORD]1 H[EV]1 ONLY TO PO9T \T ?AT 09 ! LA/ 9/ANCE HUMAN LABOR ALONE IS ! VALUE-CREAT+ FACTOR1 SO ?AT 9 ! LA/ 9/ANCE ! EXT5SION ( HUMAN CONSUMPTION DET]M9ES ! EXT5SION ( PRODUCTION4 ,ON ?IS ACC\NT ! ACCUMULATION ( CAPITAL DEP5DS ON ! WORK]S' CONSUMPTION - AS !RE IS NO 9SUFFICI5CY ( CAPITALI/ CONSUMPTION - & ! EXPANSION ( CAPITAL IS TI$ TO HUMAN NE$S1 S9CE 0! CONSUMPTION ( ! MEANS ( PRODUCTION IS NO?+ O!R TAN ! PRODUCTION ( CONSUM] GOODS40 ,= ,CONRAD ,S*MIDT AS WELL ! VOLUME ( CONSUMPTION DET]M9$ ! VOLUME ( PRODUCTION1 & OV]PRODUCTION >OSE FROM ! RE/RICT$ CONSUMPTION ( ! WORK+ POPULATION ,CAPITALI/ COMPETITION1 ) ! 9CREAS+ DIFFICULTY ( F9D+ M>KETS1 MU/1 GIV5 ITS T5D5CY1 BE MANIFE/$ 9 AN 9CREAS+ D[NW>D PRESSURE ON PRICES & ?US 9 A FALL 9 ! RATE ( RETURN OR 9 ! AV]AGE RATE ( PR(IT - A FALL MAK+ ! CAPITALI/ TYPE ( ECONOMY EV] MORE UNPR(ITABLE & RISKY EV5 = ! MAJORITY ( PRIVATE 5TREPR5EURS1 :ILE AT ! SAME TIME ! LABOR M>KET BECOMES PROGRESSIVELY UNFAVORABLE TO ! WORK]S1 & ! RANKS ( ! 9DU/RIAL RES]VE >MY SWELL T]RIBLY4 ,S*MIDT TOO DID NOT APPEAL TO ,M>X'S !ORY ( ACCUMULATION1 & HE REJECT$ ! LABOR !ORY ( VALUE4 ,LIKE ,ADAM ,SMI? BE=E HIM1 HE EXPLA9$ ! FALL 9 ! RATE ( PR(IT BY ! 9T5SIFICATION ( COMPETITION4 ,AL?\< = HIM ! CRISIS >OSE FROM 9SUFFICI5T CONSUMPTION1 HE NEV]!LESS AGRE$ ) ,TUGAN-,B>ANOVSKY ?AT CRISIS DID NOT IMPLY AN EV5TUAL BREAKD[N ( CAPITALISM1 S9CE ! IMPROVEM5T 9 ! WORK]S' LIV+ CONDITIONS A*IEV$ ?R\< SOCIAL /RUGGLES W\LD WEAK51 IF NOT COMPLETELY ELIM9ATE1 ! ROOTS ( CRISIS1 ! RE/RICTION ( CONSUMPTION4 ,! VA/ DEBATE AB\T ! CRISIS & COLLAPSE ( CAPITALISM 7:I* WE WILL NOT DISCUSS FUR!R H]E7 REFLECT$ ! AMBIGUITIES 9 ,M>X'S DEPICTION ( CRISIS4 ,AS ALREADY PO9T$ \T1 = ,M>X ! CRISIS WAS DUE1 ON ! ONE H&1 TO ! FALL 9 ! RATE ( PR(IT 9H]5T 9 ACCUMULATION & 9DEP5D5TLY ( ALL ! PH5OM5A ( CRISIS VISIBLE ON ! SURFACE ( SOCIETY2 BUT ON ! O!R H&1 IT ALSO ORIG9AT$ 9 ! UND]CONSUMPTION ( ! WORK]S4 ,?US ,KAUTSKY C\LD APPEAL TO ,M>X ) AS MU* RIANOVSKY4 ,! CONFUSION BECAME ALL ! GREAT] S9CE ! UND]CONSUMPTION !ORY C\LD SUPPORT ! CONCLUSION ?AT CAPITALISM MU/ BREAK D[N4 ,! DEBATES ON CRISIS & BREAKD[N HAVE CONT9U$ TO ! PRES5T DAY1 9 P>T ?ANKS TO ! AMBIGUITY ( ,M>X'S /ATEM5TS1 AL?\< ! LATT] 9DE$ SIGNIFY NO MORE ?AN ,M>X'S [N UNSUR5ESS1 AS !Y W]E WRITT5 MANY YE>S BE=E ! PUBLICATION ( ,VOLUME #a ( ,CAPITAL & AT A LAT] MOM5T W\LD MO/ PROBABLY HAVE BE5 RE=MULAT$ 9 A LESS CONTRADICTORY WAY4 ,H[EV] ?IS MAY BE1 BO? ! ACTUAL DEVELOPM5T ( CAPITALISM & ! ANALYSIS ( ACCUMULATION 9 T]MS ( VALUE & SURPLUS VALUE UNAMBIGU\SLY %[ ?AT ! CONT9U+ ACCUMULATION ( CAPITAL IS L9K$ TO ! DISPROPORTIONALITY BETWE5 PRODUCTION & CONSUMPTION CORRESPOND+ TO ! VALORIZATION ( CAPITAL1 & ?AT ONLY ! MA9T5ANCE ( ?IS SITUATION MAKES IT POSSIBLE TO OV]COME ! CRISES ?AT OCCUR4 ,( C\RSE1 IF ! CRISIS CAN NO LONG] BE OV]COME 9 A CAPITALI/ WAY1 P]MAN5T DEPRESSION MU/ SET 91 ) AN ABSOLUTE PAUP]IZATION ( ! WORK]S & UNEMPLOY$4 ,?IS /ATE ( AFFAIRS W\LD EXHIBIT ! CONTRADICTION ( CAPITAL AS A CONFLICT BETWE5 ! CAPITALI/ MODE ( PRODUCTION & ! CONSUMPTION NE$S ( SOCIETY4 ,) ,TUGAN-,B>ANOVSKY'S REF]5CE TO ! ,M>XIAN REPRODUCTION S*EMATA 9 ,VOLUME #b ( ,CAPITAL1 ! DEBATE ON CRISIS TOOK ON A NEW DIM5SION4 ,! PROBLEM ( CRISIS WAS SE5 NO LONG] AS A QUE/ION ( ! OV]-ACCUMULATION ( CAPITAL OR ( UND]CONSUMPTION BUT AS ONE ( SOCIAL EQUILIBRIUM OR ( ! PROPORTIONALITY ( ! REPRODUCTION PROCESS4 ,IT WILL BE NECESS>Y H]E TO GO BRIEFLY 9TO ! ,M>XIAN REPRODUCTION S*EMATA4 ,! PROCESS ( PRODUCTION IS AT ! SAME TIME A PROCESS ( REPRODUCTION1 :I* IS COMPLET$ ?R\< CIRCULATION4 ,= !ORETICAL 5DS & = ! ILLU/RATION ( ?IS PROCESS IT IS SUFFICI5T TO DIVIDE TOTAL SOCIAL PRODUCTION 9TO TWO DEP>TM5TS 9 ORD] TO REPRES5T ! CONDITIONS ( AN IMAG9>Y1 FRICTIONLESS EX*ANGE4 ,AL?\< CAPITALI/ PRODUCTION IS ! CREATION ( EX*ANGE VALUE1 IT NEV]!LESS REMA9S TI$ TO USE VALUE4 ,:ILE EV]Y CAPITALI/ SEEKS ONLY TO 5L>GE HIS CAPITAL AS CAPITAL1 HE CAN ACCOMPLI% ?IS ONLY 9 ! FRAMEWORK ( SOCIAL PRODUCTION1 :I* IS AT ! SAME TIME A SOCIAL METABOLISM CONC]N$ ) USE VALUES4 ,9 ! SOCIAL FRAMEWORK A !ORETICALLY CONCEIVABLE EQUILIBRIUM ( CAPITALI/ EX*ANGE PRESUPPOSES ! PRODUCTION 9 ! CORRECT PROPORTIONS ( ! USE VALUES NECESS>Y = REPRODUCTION4 ,JU/ AS COMPETITION CANNOT BE EXPLA9$ BY COMPETITION1 ! CIRCULATION PROCESS CANNOT BE EXPLA9$ 9 T]MS ( CIRCULATION4 ,IT PRESUPPOSES DEF9ITE LABOR-TIME RELATIONS AS VALUE & USE-VALUE RELATIONS & A DEF9ITE DIVISION ( !M TO MAKE REPRODUCTION POSSIBLE4 ,IT GOES )\T SAY+ ?AT ! ,M>XIAN REPRODUCTION S*EMATA DO NOT REF] TO ! REAL PRODUCTION PROCESS BUT TO ! REQUIREM5TS ( CAPITALI/ REPRODUCTION ?AT UND]LIE ! REAL PROCESS1 :I* >E 9DE$ NOT CONSCI\SLY TAK5 9TO ACC\NT 9 CAPITALISM BUT MU/ NEV]!LESS BE SATISFI$ 9 ONE WAY OR ANO!R IF ! ACCUMULATION ( CAPITAL IS TO GO ON4 ,! FUNCTION ( ! REPRODUCTION S*EMATA IS SIMPLY TO 9DICATE ?AT ACCUMULATION AS WELL AS PRODUCTION REQUIRES DEF9ITE PROPORTIONS ( K9DS ( PRODUCT1 :I* MU/ BE E/ABLI%$ VIA ! M>KET4 ,! S*EMATA >E =MULAT$ 9 SU* A WAY ?AT ) BO? SIMPLE & 5L>G$ REPRODUCTION !RE IS AN EQUILIBRIUM ( EX*ANGE BETWE5 ! TWO DEP>TM5TS ( PRODUCTION4 ,?IS1 H[EV]1 DOES NOT MEAN ?AT ! ACTUAL CAPITALI/ REPRODUCTION PROCESS PROCE$S OR CAN PROCE$ FOLL[+ ! PATT]N ( ! S*EMATA ( SIMPLE OR 5L>G$ REPRODUCTION4 ,! ILLU/RATIVE & EXPLANATORY FUNCTION ( ! REPRODUCTION S*EMATA WAS !N CONFUS$ ) ?AT ( REPRES5T+ A PROCESS ACTUALLY OCCUR+ 9 REALITY1 & ! RELATIONS ( EX*ANGE DEF9$ BY !M W]E TREAT$ AS EXAMPLES EI!R PROV+ OR DISPROV+ ! T5D5CY ( ! SY/EM TO EQUILIBRIUM4 ,= ,TUGAN-,B>ANOVSKY ! REPRODUCTION S*EMATA PROVID$ PRO( ( ! POSSIBILITY ( UNLIMIT$ CAPITAL ACCUMULATION1 SO LONG AS ! NECESS>Y PROPORTIONS W]E MA9TA9$4 ,?IS IDEA WAS TAK5 UP BY ,RUDOLF ,HILF]D+4 ,LIE AGRE$ ) ,TUGAN-,B>ANOVSKY1 & ) ,M>X1 ?AT CAPITALI/ PRODUCTION DEP5DS NOT ON CONSUMPTION BUT ON ! NE$ ( CAPITAL = VALORIZATION4 ,BUT HE ALSO WANT$ TO DO JU/ICE1 9 SOME FA%ION1 TO ! IDEA ( UND]CONSUMPTION & SO MA9TA9$ ?AT 0! CONDITIONS ( VALORIZATION REBEL AGA9/ ! EXT5SION ( CONSUMPTION1 & AS !Y >E DECISIVE1 ! CONTRADICTION GR[S TO ! PO9T ( CRISIS4 ,TO BE SURE1 HE IMM$IATELY TOOK ?IS BACK1 PO9T+ \T ?AT 0! P]IODIC *>ACT] ( CRISIS 444 CANNOT BE EXPLA9$ 9 G5]AL FROM A P]MAN5T PH5OM5ON 7NAMELY1 UND]CONSUMPTION740 ,= ,HILF]D+ ! CRISIS IS1 09 G5]AL1 A DI/URBANCE ( CIRCULATION0 ?AT VIOLATES ! NECESS>Y EQUILIBRIUM CONDITIONS ( ! SOCIAL REPRODUCTION PROCESS4 ,= HIM ! ,M>XIAN S*EMATA ALSO %[ ?AT ,9 CAPITALI/ PRODUCTION REPRODUCTION BO? ON ! SIMPLE & ON ! 5L>G$ SCALE CAN PROCE$ UNDI/URB$ SO LONG AS ! .Y.> PROPORTIONS >E MA9TA9$4 ,CONV]SELY1 ! CRISIS CAN >ISE EV5 ) SIMPLE REPRODUCTION IF1 = EXAMPLE1 ! NECESS>Y PROPORTION BETWE5 US$-UP & NEWLY 9VE/$ CAPITAL IS VIOLAT$4 ,IT DOES NOT 9 ! LEA/ FOLL[ FROM ?IS ?AT ! CAUSE ( CRISIS MU/ BE ! UND]CONSUMPTION ( ! MASSES 9H]5T 9 CAPITALI/ PRODUCTION4 ,A TOO RAPID EXPANSION ( CONSUMPTION W\LD 9 ITSELF GIVE RISE TO CRISIS AS MU* AS W\LD A /ABILIZATION OR CONTRACTION ( ! PRODUCTION ( MEANS ( PRODUCTION4 ,JU/ AS LITTLE CAN ! POSSIBILITY ( G5]AL OV]PRODUCTION ( COMMODITIES BE D$UC$ FROM ,M>X'S S*EMATA2 RA!R !Y ALL[ = ANY EXPANSION ( PRODUCTION ON ! BASIS ( ! EXI/+ =CES ( PRODUCTION4 ,= ,HILF]D+ CAPITAL'S PROP5SITY TO CRISIS DUE TO DISPROPORTIONALITY *ANG$ ) ! RE/RICTION ( COMPETITION BY ! TRU/IFICATION & ( CAPITAL4 ,AL?\< ! OV]PRODUCTION CAN 9 P>T BE OV]COME ?R\< A BETT] ADAPTATION TO DEM&1 A CRISIS 9VOLVES AN OV]PRODUCTION NOT ( COMMODITIES BUT ( CAPITAL4 ,?IS MEANS ONLY 0?AT CAPITAL HAS BE5 9VE/$ 9 PRODUCTION TO SU* A DEGREE ?AT ITS CONDITIONS ( VALORIZATION HAVE COME 9TO CONFLICT ) ITS REALIZATION CONDITIONS1 SO ?AT ! M>KET+ ( COMMODITIES NO LONG] YIELDS ! PR(IT ON :I* A FUR!R EXPANSION1 A FUR!R ACCUMULATION1 DEP5DS4 ,SALES /AGNATE BECAUSE ! EXPANSION ( PRODUCTION COMES TO A HALT40 ,S9CE = ,HILF]D+ ! CRISIS IS A 0DI/URBANCE ( CIRCULATION10 HIS EXPLANATION IS BAS$ NOT ON ! FALL 9 ! RATE ( PR(IT RESULT+ FROM A GR[+ ORGANIC COMPOSITION ( CAPITAL BUT ON A LACK ( SALES RELATIVE TO TOO QUICKLY GR[+ PRODUCTION OR ON A CONTRADICTION BETWE5 ! 0VALORIZATION CONDITIONS & ! REALIZATION CONDITIONS0 ( CAPITAL - ?US1 AFT] ALL1 ON A DIV]G5CE BETWE5 SUPPLY & DEM&1 EV5 IF 9DEP5D5T ( ! RE/RICT$ CONSUMPTION ( ! WORK]S4 ,SU* 0DI/URBANCES ( CIRCULATION0 >E MADE NOT LESS BUT MORE ACUTE BY ! ADVANCE ( C>TELIZATION1 )\T !REBY LEAD+ TO A BREAKD[N1 S9CE AN ECONOMIC BREAKD[N IS ,= ,HILF]D+ 09 G5]AL NOT RATIONALLY CONCEIVABLE40 ,! ABOLITION ( CAPITALI/ SOCIETY CAN !RE=E BE A*IEV$ ONLY BY A POLITICAL PROCESS1 :I* 9 ANY CASE IS PREP>$ = TO AN EV] GREAT] EXT5T BY ! C>TELIZATION ( CAPITAL & ! ABSORPTION ( 9DU/RIAL CAPITAL BY BANK CAPITAL1 A PROCESS DESCRIB$ BY ,HILF]D+ AS ! =MATION ( F9ANCE CAPITAL4 0,F9ANCE CAPITAL SIGNIFIES ! T5D5CY TO E/ABLI% SOCIAL CONTROL OV] PRODUCTION4 ,BUT IT IS SOCIALIZATION 9 AN ANTAGONI/IC =M2 CONTROL OV] SOCIAL PRODUCTION REMA9S 9 ! H&S ( AN OLIG>*Y4 ,! /RUGGLE = ! DISPOSSESSION ( ?IS OLIG>*Y IS ! F9AL PHASE ( ! CLASS /RUGGLE BETWE5 ! B\RGEOISIE & ! PROLET>IAT40 ,= ?IS IT IS SUFFICI5T 0= SOCIETY TO TAKE CONTROL ( F9ANCE CAPITAL ?R\< ! CONSCI\S ORGAN ( ! PEOPLE1 ! /ATE CAPTUR$ BY ! PROLET>IAT1 9 ORD] IMM$IATELY TO EXT5D CONTROL OV] ! MO/ IMPORTANT BRAN*ES ( PRODUCTION40 ,:ILE 9 ,HILF]D+'S VIEW !RE W]E NO ECONOMIC LIMITS TO CAPITALI/ ACCUMULATION1 IT WAS NEV]!LESS A PROCESS M>K$ BY CRISES ?AT ONLY ! SOCIALIZATION ( PRODUCTION BY SOCIALISM C\LD OV]COME4 ,UND] CAPITALI/ MANAGEM5T ACCUMULATION COMPELL$1 ALONG ) ! P]PETUAL EXPANSION ( PRODUCTION1 ! EXPORT ( CAPITAL & A /RUGGLE = M>KETS & = S\RCES ( RAW MAT]IALS 9 ORD] TO 9CREASE ! SURPLUS VALUE ( ! NATIONALLY ORGANIZ$ CAPITAL4 ,IMP]IALISM1 A DIRECT CONSEQU5CE ( ! CAPITALIZATION ( ! WORLD ECONOMY1 WAS AS MU* A FACTOR ( CRISIS AS ! OV]COM+ ( CRISIS4 ,9SEP>ABLE FROM CAPITALISM1 IMP]IALISM TOOK ON P>TICUL>LY OM9\S =MS >\ND ! TURN ( ! C5TURY1 AS ! IMP]IALI/ P[]S PREP>$ = NEW CONFRONTATIONS4 ,IMP]IALI/IC POLICY & COLONIALISM F\ND OPPON5TS & SUPPORT]S EV5 9 ! ,SOCIAL ,DEMOCRATIC CAMP1 A SITUATION REFLECT$ 9 ,ROSA ,LUXEMBURG'S WORK ON ! ACCUMULATION ( CAPITAL4 ,TAK+ ,HE9RI* ,CUN['S CRISIS !ORY AS A PO9T ( DEP>TURE1 BUT COMPLETELY IGNOR+ ,HILF]D+'S1 ,LUXEMBURG SAW IMP]IALISM AS AN IMM$IATE CONSEQU5CE ( CAPITALI/ PRODUCTION4 ,?IS %E WI%$ TO PROVE SCI5TIFICALLY4 ,! ATTEMPT TO GIVE A 0/RICTLY ECONOMIC DEMON/RATION0 ( ! NECESSITY ( IMP]IALISM L$ H]1 9 H] [N WORDS1 0TO ,M>X'S DIAGRAMS AT ! 5D ( ! SECOND VOLUME ( ,CAPITAL1 :I* HAVE SEEM$ WEIRD TO ME = A LONG TIME1 & :I* ,I N[ F9D FULL ( HOT AIR4 0 ,BY 0HOT AIR0 %E MEANT ! EQUILIBRIUM CONCEPTION ( CAPITALI/ REPRODUCTION %E TOOK ,M>X TO HAVE4 ,LUXEMBURG'S ANALYSIS ( ,M>X'S S*EMATA ( 5L>G$ REPRODUCTION L$ H] TO ! REV]SE ( ,M>X'S APP>5T RESULTS1 NAMELY TO ! IMPOSSIBILITY ( EQUILIBRIUM4 0,IF WE TAKE ! S*EMA LIT]ALLY10 %E WROTE1 0444 IT APPE>S ?AT CAPITALI/ PRODUCTION W\LD ITSELF REALIZE ITS 5TIRE SURPLUS VALUE1 & ?AT IT W\LD USE ! CAPITALIZ$ SURPLUS VALUE EXCLUSIVELY = ITS [N NE$S40 ,BUT1 ACCORD+ TO ,LUXEMBURG1 ?IS W\LD MEAN ?AT 0!SE CAPITALI/S >E ?US FANATICAL SUPPORT]S ( AN EXPANSION ( PRODUCTION = ! SAKE ( ! EXPANSION ( PRODUCTION4 ,!Y SEE TO IT ?AT EV] MORE MA*9ES >E BUILT = ! SAKE ( BUILD+ ) !IR HELP EV] MORE NEW MA*9ES02 ?AT IS1 !Y ACCUMULATE !IR SURPLUS VALUE NOT AS CAPITAL BUT 9 ! =M ( A PO9TLESS PRODUCTION ( MEANS ( PRODUCTION4 ,?IS CONCEPTION SURPLUS VALUE W\LD BE CREAT$ 0FROM ! V]Y BEG9N+44 4 9 A NATURAL =M EXCLUSIVELY DESIGN$ = ! REQUIREM5TS ( ACCUMULATION40 ,?IS1 H[EV]1 IS NOT ! CASE 9 REALITY1 AS CAPITAL MU/ FIR/ SELL 9 ORD] TO BE ABLE TO ACCUMULATE4 ,BUT :]E >E ! CAPITALI/S TO F9D ! BUY]S :O WILL ALL[ !M TO REALIZE !IR SURPLUS VALUE8 ,CAPITALI/ ACCUMULATION1 = ,LUXEMBURG1 IS 0! HEAP+ UP ( MONEY CAPITAL10 :I* PRESUPPOSES ! REALIZATION ( ! SURPLUS VALUE PRODUC$4 ,H[ CAN ?IS BE ACCOMPLI%$1 IF ! CAPITALI/S AS A CLASS >E !MSELVES ALWAYS ! ONLY BUY]S ( !IR TOTAL PRODUCT AP>T FROM ! PORTION :I* !Y MU/ AT ! MOM5T PAY ! WORK+ CLASS = ITS MA9T5ANCE IF !Y MU/ ALWAYS BUY !IR COMMODITIES FROM !MSELVES & MU/ 0CA% 90 ! SURPLUS VALUE CONTA9$ 9 !M ) !IR [N MONEY !N ! HEAP+ UP ( PR(ITS :I* IS ACCUMULATION MU/ BE IMPOSSIBLE = ! CLASS ( CAPITALI/S AS A :OLE4 ,%E F\ND ! ANSW] TO H] QUE/IONS 09 ! DIALECTICAL CONTRADICTION ?AT CAPITALI/ ACCUMULATION NE$S NON-CAPITALI/ SOCIAL =MATIONS AS ! SETT+ = ITS DEVELOPM5T1 ?AT IT PROCE$S BY ASSIMILAT+ ! V]Y CONDITIONS :I* ALONE CAN 5SURE ITS [N EXI/5CE40 ,9T]NAL CAPITALI/ TRADE CAN1 AS %E SAW IT1 0AT BE/ REALIZE ONLY C]TA9 QUANTITIES ( VALUE CONTA9$ 9 ! SOCIAL PRODUCT3 ! CON/ANT CAPITAL ?AT HAS BE5 US$ UP1 ! V>IABLE CAPITAL1 & ! CONSUM$ P>T ( ! SURPLUS VALUE4 ,?AT P>T ( ! SURPLUS VALUE :I* IS E>M>K$ = CAPITALIZATION1 H[EV]1 MU/ BE REALIZ$ 0EXT]NALLY40 0,?US CAPITALISM1 ?ANKS TO ITS 9T]ACTIONS ) NON-CAPITALI/ SOCIAL /RATA & C\NTRIES1 EXP&S ITSELF MORE & MORE1 9 ?AT IT ACCUMULATES AT !IR EXP5SE BUT AT ! SAME TIME ]ODES & DISPLACES !M /EP BY /EP 9 ORD] TO TAKE !IR PLACE4 ,BUT ! MORE CAPITALI/ C\NTRIES P>TICIPATE 9 ?IS HUNT AFT] T]RITORIES = ACCUMULATION1 & ! SC>C] ! NON-CAPITALI/ >EAS /ILL OP5 TO ! GLOBAL EXPANSION ( CAPITAL BECOME1 ! MORE BITT] WILL BE ! COMPETITIVE /RUGGLE ( CAPITAL OV] EA* SU* T]RITORY & ! MORE ITS CAMPAIGNS 9 ! WORLD !AT] WILL TURN 9TO A S]IES ( ECONOMIC & POLITICAL CATA/ROPHES3 WORLD CRISES1 W>S1 REVOLUTIONS4 ,IMP]IALISM CAN BE EXPLA9$ AP>T FROM ,LUXEMBURG'S 0/RICTLY ECONOMIC REASON+40 ,IT CAN BE TREAT$ 9 CONNECTION ) ACCUMULATION1 )\T REF]5CE TO ! NE$ = NON-CAPITALI/ M>KETS = ! REALIZATION ( SURPLUS VALUE1 AS = EXAMPLE 9 ,HILF]D+'S !ORY4 ,! IMPORTANCE ( ,LUXEMBURG'S WORK1 H[EV]1 LAY NOT SO MU* 9 ! EXPLANATION ( IMP]IALISM AS 9 ! DEMON/RATION ?AT CAPITALISM HAS ABSOLUTE1 IMPASSABLE LIMITS1 & ?AT ! MORE CLOSELY ! SY/EM APPROA*ES !M1 ! GREAT] ! SOCIAL %OCKS WILL BE4 ,IT WAS ! IDEA ( ,TUGAN-,B>ANOVSKY & ,HILF]D+1 BAS$ ON ! REPRODUCTION S*EMATA1 ?AT NO?+ /&S OBJECTIVELY 9 ! WAY ( ACCUMULATION1 :I* IMPELL$ ,LUXEMBURG TO 9VE/IGATE ! EQUILIBRIUM CONDITIONS ( ! S*EMATA & !REBY TO CONCLUDE ?AT ! IMPOSSIBILITY ( REALIZ+ SURPLUS VALUE )9 ! CAPITAL-LABOR RELATION%IP GIVES RISE TO A P]PETUAL ELEM5T ( DISEQUILIBRIUM1 9 ! =M ( AN UNSALABLE QUANTITY ( COMMODITIES ?AT CANNOT BE TURN$ 9TO MONEY & ! VALUE ( :I* CAN ONLY BE REALIZ$ AS CAPITAL \TSIDE ! SY/EM4 ,?US IT WAS NOT ! PROBLEM ( ! PRODUCTION ( SURPLUS VALUE & ! DIFFICULTIES IT 5C\NT]S AS ACCUMULATION PROCE$S BUT ?AT ( ! REALIZATION ( SURPLUS VALUE :I* ,LUXEMBURG SAW AS DECISIVE = ! FUTURE ( CAPITALISM4 ,! P]IODIC CRISES W]E ACCORD+LY = H] CRISES ( OV]PRODUCTION1 *>ACT]IZ$ BY QUANTITIES ( UNSOLD GOODS1 & C\LD NOT BE OV]COME )9 ! SY/EM4 ,?IS IDEA HAD A C]TA9 PLAUSIBILITY1 AS CAPITALISM HAD 9 FACT SPREAD GEOGRAPHICALLY & 9CORPORAT$ ONE NEW C\NTRY AFT] ANO!R 9TO ! WORLD ECONOMY2 BUT IT HAD NO?+ TO DO ) ,M>X'S !ORY ( ACCUMULATION4 ,AS A RESULT ,LUXEMBURG'S !ORY CAME 9 = EXT5SIVE CRITICISM BO? FROM ! RI\ND ,M>X'S !ORY ( ACCUMULATION & CRISIS L$ TO ! DEVELOPM5T ( TWO ANTI!TICAL VIEWS1 EA* GIV+ RISE TO SEV]AL V>IANTS4 ,ONE 9SI/$ ?AT ! ACCUMULATION ( CAPITAL HAS ABSOLUTE LIMITS & ?AT AN ECONOMIC BREAKD[N ( ! CI/]N IS 9EVITABLE4 ,! O!R HELD ?IS TO BE ABSURD1 MA9TA9+ ?AT ! SY/EM W\LD NOT DISAPPE> FROM ECONOMIC CAUSES4 ,IT GOES )\T SAY+ ?AT ! RE=MI/S1 IF ONLY TO JU/IFY !MSELVES1 ADOPT$ ! LATT] POSITION4 ,BUT EV5 ULTRALEFTI/S - ,ANTON ,PANNEKOEK1 = EXAMPLE - SAW ! IDEA ?AT ! BREAKD[N ( CAPITALISM W\LD BE A 0PURELY ECONOMIC0 PROCESS AS A FALSIFICATION ( HI/ORICAL MAT]IALI/ !ORY4 ,PANNEKOEK ?\ANOVSKY'S CONCLUSION ?AT ACCUMULATION HAS NO LIMITS OR TO ,LUXEMBURG'S BREAKD[N !ORY4 ,HE ?\X DESCRIB$ !M & ! CONCRETE PH5OM5ON ( CRISIS1 PRODUC$ BY ! AN>*Y ( ! ECONOMY1 W]E SUFFICI5T TO PROVOKE ! DEVELOPM5T ( REVOLUTION>Y CONSCI\SNESS AMONG ! PROLET>IAT & ?US TO LEAD TO PROLET>IAN REVOLUTION4 ,AL?\< ,PANNEKOEK ATTACK$ ,TUGAN-,B>ANOVSKY'S H>MONIZ+ 9T]PRETATION ( ,M>X'S REPRODUCTION S*EMATA ON ! GR\NDS ?AT ! CIRCUIT ( CAPITAL IS 9 REALITY A PROCESS %OT ?R\< ) CRISES & ?AT ! FUNCTION ( ,M>X'S =MULAS 9 HIS !ORETICAL ANALYSIS WAS ONLY ?AT ( A PRELIM9>Y & SIMPLIFI$ DESCRIPTION1 HE ALSO HELD ,LUXEMBURG'S CRITIQUE TO BE A MISUND]/&+1 S9CE 9 HIS OP9ION CAPITAL IS ABLE TO REALIZE ITS SURPLUS VALUE )\T ! HELP ( A NON-CAPITALI/ M>KET4 ,BY ! SAME TOK51 IMP]IALISM1 :ILE AN 9CONTE/ABLE FACT1 WAS NOT A NECESS>Y PRESUPPOSITION ( CAPITALI/ PRODUCTION4 ,! :OLE HYPO!SIS ( A F9AL & AUTOMATIC BREAKD[N ( CAPITAL1 HE ?\X'S APPROA*1 9 :I* ! OBJECTIVE & SUBJECTIVE CONDITIONS ( REVOLUTION CANNOT BE SEP>AT$4 ,! REVOLUTION DEP5DS ON ! WILL ( ! WORK+ CLASS1 EV5 IF ?IS WILL DEVELOPS 9 RESPONSE TO ECONOMIC CIRCUM/ANCES4 ,?US ! PROLET>IAT IS NOT GO+ TO MEET A F9AL CRISIS BUT WILL EXP]I5CE MANY CRISES1 UNTIL ! DECISIVE ELEM5T1 REVOLUTION>Y CONSCI\SNESS1 IS SUFFICI5TLY CON/ITUT$ TO PUT AN 5D TO ! CAPITALI/ SY/EM4 ,LUXEMBURG'S ,ACCUMULATION ( ,CAPITAL MET ) ALMO/ UNIV]SAL REJECTION AMONG ! !ORETICIANS ( ,SOCIAL ,DEMOCRACY1 NOT SO MU* BECAUSE %E D>$ TO CRITICIZE ,M>X OR TO EXPLA9 ! REALITY ( IMP]IALISM BY ! REALIZATION DIFFICULTIES 5C\NT]$ BY ACCUMULATION1 BUT BECAUSE BY EVOK+ ! 9EVITABLE 5D ( CAPITALISM %E SUPPORT$ A POLITICS ( PROLET>IAN CLASS /RUGGLE DIAMETRICALLY OPPOS$ TO ! DOM9ANT RE=MI/ ATTITUDE4 ,ON ! O!R H&1 IT WAS JU/ H] 9SI/5CE ON ! 9ESCAPABLE 5D ( CAPITAL ?AT ASSUR$ H] A FOLL[+ AMONG ! WORK]S ( ! LEFT OPPOSITION1 :E!R OR NOT !Y ACCEPT$ H] SPECIFIC >GUM5T = IT1 AS !Y DID NOT C>E V]Y MU* :E!R & H[ CAPITAL W\LD BREAK D[N FROM !SE OR FROM ANY O!R CAUSES1 AS LONG AS IT WAS DOOM$ TO BREAK D[N FROM SOME CAUSE4 ,AMONG ! MANY !ORETICIANS :O >GU$ AGA9/ ,LUXEMBURG1 ,OTTO ,BAU] & ,NIKOLAI ,BUKH>9 M]IT P>TICUL> ATT5TION4 ,BUKH>9'S DELAY$ CRITIQUE REFLECT$ NOT ONLY !ORETICAL 9T]E/ BUT ALSO ! /RUGGLE ! ,BOL%EVIKS W]E WAG+ AT ?AT TIME AGA9/ 0,LUXEMBURGISM0 9 ORD] TO CLEAN ! TRADITION L9K$ TO H] \T ( ! COMMUNI/ P>TIES4 ,BUKH>9 F\ND NO?+ TO OBJECT TO 9 ,M>X'S REPRODUCTION S*EMATA & REJECT$ ,LUXEMBURG'S CRITIQUE ON ?IS SUBJECT4 ,( C\RSE1 ! CIRCUIT ( CAPITAL1 REPRES5T$ AT A V]Y HI< LEVEL ( AB/RACTION1 REQUIR$ LAT] COMPLETION ON A L[]1 MORE CONCRETE LEVEL ( AB/RACTION4 ,9 ANY CASE1 ! REPRODUCTION S*EMATA ADMITT$ ( NEI!R ,TUGAN-,B>ANOVSKY'S NOR ,LUXEMBURG'S 9T]PRETATIONS4 ,ACCORD+ TO ,M>X & ,L591 EV5 9 A 0PURE0 CAPITALI/ SY/EM NO?+ /&S 9 ! WAY ( ACCUMULATION & ! REALIZATION ( SURPLUS VALUE4 ,BUKH>9 SAW ! BASIS ( ,LUXEMBURG'S FALSE !ORY 9 H] ID5TIFICATION ( ! ACCUMULATION ( CAPITAL ) ?AT ( MONEY CAPITAL4 ,%E IMAG9$ ?AT ! %>E ( ! SURPLUS VALUE ?AT MU/ BE ACCUMULAT$ AS ADDITIONAL CAPITAL MU/ FIR/ BE TRANS=M$ 9TO MONEY ALREADY AT H& )9 ! SY/EM4 ,ONLY !N W\LD ! SURPLUS VALUE BE REALIZ$1 & ! EXP&$ REPRODUCTION W\LD BE ! REPRODUCTION ( CAPITALI/ ACCUMULATION4 ,)\T ?IS METAMORPHOSIS ( SURPLUS VALUE FROM ! COMMODITY =M 9TO ! MONEY =M1 ACCUMULATION C\LD NOT TAKE PLACE4 ,BUKH>91 H[EV]1 PO9T$ \T ?AT1 LIKE CAPITAL ITSELF SURPLUS VALUE APPE>S 9 V>I\S =MS3 AS COMMODITIES1 AS MONEY1 AS MEANS ( PRODUCTION1 & AS LABOR P[]4 ,= EA* ( !SE ! MONEY =M IS NOT TO BE ID5TIFI$ ) ! TOTAL SURPLUS VALUE 9 ITS V>I\S =MS4 ,SURPLUS VALUE MU/ GO ?R\< ITS MONEY PHASE1 ONLY NOT AS A :OLE1 AT ONE TIME1 BUT RA!R BIT BY BIT1 ?R\< 9NUM]ABLE COMM]CIAL TRANSACTIONS1 9 ! C\RSE ( :I* A GIV5 SUM ( MONEY CAN REPEAT$LY ACCOMPLI% ! TRANS=MATION ( COMMODITIES 9TO MONEY & MONEY 9TO COMMODITY4 ,! TOTAL SURPLUS VALUE DOES NOT HAVE TO 5C\NT] A SUM ( MONEY EQUIVAL5T TO IT1 AL?\< EV]Y COMMODITY1 9 ORD] TO BE REALIZ$1 MU/ BE TURN$ 9TO MONEY4 ,! FACT ?AT ! GR[+ CAPITAL IS ACCOMPANI$ BY AN 9CREAS+ MASS ( MONEY DOES NOT MEAN ?AT CAPITAL & MONEY CAPITAL HAVE TO ACCUMULATE AT ! SAME R ATE4 ,CAPITAL IS OBJECTIFI$ 9 MANY =MS1 ( :I* ?AT ( MONEY IS ONE1 BUT NOT ! EXCLUSIVE1 FUNCTIONAL =M ( REALIZ$ SURPLUS VALUE4 ,?IS CRITIQUE ( ,LUXEMBURG'S !ORY WAS RELAT$ TO ,BUKH>9'S [N CRISIS !ORY1 :I* RELI$ ON ,L594 ,IT DID NOT DIFF] ESS5TIALLY FROM ! DISPROPORTIONALITY !ORIES ( ,TUGAN-,B>ANOVSKY & ,HILF]D+1 AL?\< ,BUKH>9 ATTEMPT$ TO TAKE A POSITION OPPOS$ TO ,TUGAN-,B>ANOVSKY4 ,?IS PUTATIVE OPPOSITION CONSI/$ 9 ! 9CLUSION ( UND]CONSUMPTION )9 ! DISPROPORTIONALITY BETWE5 ! PRODUCTION ( PRODUC]'S GOODS & ?AT ( CONSUM]S' GOODS4 ,ONE MI9 IT WAS ! DECISIVE FACTOR ?AT DI/+UI%$ ,M>X'S !ORY FROM ,TUGAN-,B>ANOVSKY'S4 ,H]E WE F9D \RSELVES FAC+ ! QUE/ION RAIS$ E>LI]1 :E!R ,M>X HAD TWO CRISIS !ORIES1 ONE D]IV+ CRISIS FROM ! !ORY ( VALUE AS ! FALL+ RATE ( PR(IT1 & ! O!R D]IV+ IT FROM ! 9SUFFICI5T CONSUMPTION ( ! WORK]S4 ,NEI!R ,L59 NOR ,BUKH>9 SAW A CONTRADICTION H]E4 ,ON ! ONE H&1 !Y MA9TA9$ ?AT ! PRODUCTION ( MEANS ( PRODUCTION TOOK PLACE 9 COMPLETE 9DEP5D5CE ( ?AT ( CONSUM] GOODS2 ON ! O!R H&1 IT WAS = !M ! 9SUFFICI5T CONSUMPTION ( ! WORK]S ?AT SET LIMITS TO ! ACCUMULATION PROCESS1 BECAUSE ,M>X HAD DECL>$ ?AT 9 ! F9AL ANALYSIS ! PRODUCTION ( MEANS ( PRODUCTION ALWAYS ONLY S]VES CONSUMPTION4 ,ACCORD+LY !Y HELD ,TUGAN-,B>ANOVSKY'S HYPO!SIS ( ! LIMITLESS EXPANSION ( CAPITAL TO BE FALSE1 EV5 ?\< !Y DID NOT D5Y ! POSSIBILITY ( A BALANC$ PROPORTIONALITY ( ! DIFF]5T DEP>TM5TS ( PRODUCTION4 ,IT WAS ?US NOT ! FALL+ RATE ( PR(IT RESULT+ FROM ACCUMULATION :I* ,L59 & ,BUKH>9 OPPOS$ TO ,TUGAN-,B>ANOVSKY'S IMAG9>Y UNLIMIT$ CAPITAL EXPANSION BUT ! UND]-CONSUMPTION ( ! WORK]S1 :I*1 9 ! CONTEXT ( ALL ! O!R DISPROPORTIONALITIES1 LIMIT$ ACCUMULATION 9 A P>TICUL> WAY4 ,IT FOLL[$ ?AT ! 9CREAS+ CONSUMPTION ( ! WORK]S W\LD HELP MAKE POSSIBLE ! REALIZATION ( ! SURPLUS VALUE DE/9$ ,I ACCUMULATION4 ,?US ,BUKH>9 SUGGE/$ ?AT V>IABLE CAPITAL >E TOGE!R ) CON/ANT CAPITAL1 ) ! RESULT ?AT AN 9CREAS+ P>T ( ! SURPLUS VALUE C\LD BE REALIZ$4 ,( C\RSE1 9 PRACTICE ?IS C\LD ONLY MEAN ?AT ! CAPITALI/S W\LD GIVE BACK TO ! WORK]S A P>T ( ! SURPLUS VALUE JU/ EXTRACT$ FROM !M2 !Y C\LD HAVE SAV$ !MSELVES ! TR\BLE IF !Y HAD ONLY TAK5 ?AT MU* LESS SURPLUS VALUE FROM ! WORK]S 9 ! FIR/ PLACE6 ,AL?\< IT IS SOMETIMES 7BUT NOT ALWAYS7 TRUE ?AT ADDITIONAL MEANS ( PRODUCTION REQUIRE ADDITIONAL LABOR P[]1 ?IS 9 NO WAY ALT]S ! FACT ?AT ! RATIO ( CON/ANT TO V>IABLE CAPITAL %IFTS 9 ! C\RSE ( ACCUMULATION 9 FAVOR ( CON/ANT CAPITAL4 ,DESPITE ! ABSOLUTE 9CREASE ( ! NUMB] ( WORK]S1 !Y BECOME FEW] RELATIVE TO ! MORE RAPIDLY GR[+ CON/ANT CAPITAL1 SO ?AT ! SURPLUS VALUE EXTRACT$ FROM !M 9CREASES1 & ! PROBLEM ( ITS REALIZATION IF !RE IS SU* A PROBLEM NOT ONLY REMA9S BUT BECOMES MORE SEV]E4 ,N[ ,M>X'S !ORY ( ACCUMULATION AS A :OLE IS BAS$ ON ! ASSUMPTION ?AT ! WORK]S >E ALWAYS PAID ACCORD+ TO !IR VALUE1 MEASUR$ BY !IR PRODUCTION & REPRODUCTION CO/S4 ,! SURPLUS VALUE CAN !RE=E ONLY GO TO ! CAPITALI/S & MU/ BE REALIZ$ BY !M ?R\< !IR [N CONSUMPTION & !IR ACCUMULATION4 ,ASSUM+ = ! MOM5T ?AT NO?+ /&S 9 ! WAY ( ?IS REALIZATION1 ,M>X PO9T$ \T ?AT EV5 UND] !SE B5IGN CIRCUM/ANCES1 ACCUMULATION DEPRESSES ! PR(IT RATE UNTIL ACCUMULATION F9ALLY F\ND]S ON ! LACK ( PR(IT4 ,?IS DOES NOT MEAN ?AT ! PROCESS ( REALIZATION PROCE$S AS SMOO?LY AS ! G5]AL !ORY ( ACCUMULATION MAKES IT APPE>2 BUT IT DOES MEAN ?AT1 QUITE 9DEP5D5TLY ( ALL ITS DIFFICULTIES ) REALIZATION1 CAPITAL MEETS A LIMIT 9 SURPLUS-VALUE PRODUCTION ITSELF ,IF ! ACCUMULATION PROCESS CAN BE DEPICT$ 9 AB/RACTION FROM ! CIRCULATION PROCESS1 ! PROCESS ( REPRODUCTION CAN ALSO BE TRAC$ )\T CONSID]+ ! REALIZATION PROBLEMS IT 5C\NT]S 9 REALITY 9 ORD] TO EXPLA9 ! MEAN+ ( ! CIRCUIT ( CAPITAL4 ,ONE CAN F9D ?IS MODE ( PROC$URE REASONABLE OR NOT2 AT ANY RATE ,M>X BELIEV$ ?AT AL?\< HIS AB/RACT MODEL ( ! CAPITALI/ PROCESS ( CIRCULATION DID NOT CORRESPOND TO REALITY 9 SOME WAYS1 IT C\LD NEV]!LESS CONTRIBUTE TO A BETT] UND]/&+ ( REALITY4 ,BUT JU/ AS ,TUGAN-,B>ANOVSKY'S CONCLUSIONS CANNOT BE JU/IFI$ BY APPEAL+ TO ! REPRODUCTION S*EMATA1 !Y ALSO CANNOT BE CONTE/$ BY ! MEAN+LESS ASS]TION ?AT ! WORK]S REALIZE A P>T ( ! CAPITALI/S' SURPLUS VALUE & ?AT A CRISIS MU/ SET 9 IF ?IS NO LONG] HAPP5S TO A SUFFICI5T DEGREE4 ,= ,BUKH>9 ! CRISIS RESULTS FROM A CONFLICT BETWE5 PRODUCTION & CONSUMPTION OR 7:AT IS ! SAME7 FROM OV]PRODUCTION4 ,! AN>*Y ( CAPITALI/ PRODUCTION 9CLUDES 9 ITS V>I\S DISPROPORTIONALITIES ?AT BETWE5 PRODUCTION & CONSUMPTION4 ,FROM ?IS IT W\LD FOLL[ ?AT )\T !SE DISPROPORTIONALITIES ! CAPITALI/ REPRODUCTION PROCESS C\LD PROCE$ FRICTIONLESSLY4 ,& AS ! CRISIS ONLY APPE>S P]IODICALLY1 PROSP]ITY APPE>S :5 ! ELEM5TS ( ! SY/EM >E ADEQUATELY PROPORTIONAL4 ,MOREOV]1 IT FOLL[S FROM ?IS ?AT ) ! CORRECT PROPORTIONALITY ! PROCESS ( REPRODUCTION W\LD PROCE$ AS PORTRAY$ 9 ,M>X'S S*EMATA4 ,IF WE BE> ?IS 9 M9D1 IT BECOMES COMPREH5SIBLE :Y ,L59 TOOK ! SIDE ( ,OTTO ,BAU] 9 ! DEBATE BETWE5 ,LUXEMBURG & ,BAU]1 ) :I* WE %ALL N[ DEAL4 ,?AT IT OCCURR$ TO NEI!R ,L59 NOR ,BUKH>9 TO 9VE/IGATE ! PROBLEM ( CRISIS FROM ! /&PO9T ( ! !ORY ( VALUE IS ALREADY EVID5T 9 ! FACT ?AT ,BUKH>9 AGRE$ WIT ,LUXEMBURG ?AT IF ! FALL 9 ! RATE ( PR(IT W]E TO BE RESPONSIBLE = ! 5D ( CAPITALISM1 ?IS 0W\LD TAKE AS LONG AS ! COOL+ ( ! SUN40 ,AT ! SAME TIME1 H[EV]1 HE TURN$ ?IS REM>K AGA9/ ,LUXEMBURG H]SELF S9CE H] !ORY ALSO DEP5DS ON ! CONT9U\S FALL 9 ! RATE ( PR(IT1 ?\< DUE TO ! DISAPPE>ANCE ( NON-CAPITALI/ M>KETS4 ,S9CE ! :OLE DEBATE AB\T ! ,M>XIAN REPRODUCTION S*EMATA CAN BE FOLL[$ 9 ! ORIG9AL WRIT+S ( ! P>TICIPANTS1 & S9CE ! P>TICUL>1 >BITR>ILY *OS5 MAGNITUDES ( !SE DIAGRAMS >E ( NO CONSEQU5CE = US1 IT IS 5\< H]E TO REPEAT3 ,M>X WANT$ TO %[ ?AT ) C]TA9 EX*ANGE RATIOS BETWE5 ! DEP>TM5T ( PRODUCTION PRODUC+ MEANS ( PRODUCTION & ?AT PRODUC+ CONSUM] GOODS1 BO? CAN NOT ONLY R5EW !IR CON/ANT & V>IABLE CAPITAL BUT ALSO GR[ ?R\< CAPITALIZ+ !IR SURPLUS VALUE4 ,M>X REPRES5T$ ?IS PROCESS FIR/ AS A CLOS$ CIRCUIT1 I4E41 AS ! 0SIMPLE REPRODUCTION0 ( A GIV5 /ATE ( ! ECONOMY1 & !N AS A PROCESS ( EXPANSION1 OR 0EXP&$ REPRODUCTION10 9 :I* SIMPLE REPRODUCTION IS 9CLUD$ AS A P>T ( ! TOTAL PROCESS4 ,! /ATIC CASE APPE>$ TO ALL ! P>TICIPANTS 9 ! DEBATE AS EQUALLY CLE>2 ONLY :5 IT CAME TO EXP&$ REPRODUCTION W]E M9DS DIVID$4 ,= ) ! 9CLUSION ( CIRCULATION ! /ATIC CIRCUIT BECOME 0A SPIRAL1 W9D+ HI<] & HI<]1 AS IF UND] ! COMPULSION ( A MA!MATICALLY MEASURABLE NATURAL LAW40 ,ACCORD+ TO ,M>X1 ,LUXEMBURG EXPLA9$1 REPRODUCTION EXP&S 9 /RICT CON=MITY ) ! LAWS ( CIRCULATION3 ! MUTUAL SUPPLY ( ! TWO DEP>TM5TS ( PRODUCTION ) ADDITIONAL MEANS ( PRODUCTION & CONSUM] GOODS PROCE$S AS AN EX*ANGE ( EQUIVAL5TS4 ,IT IS AN EX*ANGE ( COMMODITIES 9 ! C\RSE ( :I* ! V]Y ACCUMULATION 9 ONE DEP>TM5T IS ! CONDITION ( ACCUMULATION 9 ! O!R & MAKES ?IS POSSIBLE4 ,! COMPLICAT$ PROBLEM ( ACCUMULATION IS ?US CONV]T$ 9TO A DIAGRAMMATIC PROGRESSION ( SURPRIS+ SIMPLICITY4 ,JU/ BECAUSE ( ?IS IT IS NECESS>Y TO TAKE C>E LE/ WE %\LD ONLY HAVE A*IEV$ !SE SURPRIS+LY SMOO? RESULTS ?R\< SIMPLY WORK+ \T C]TA9 FOOLPRO( MA!MATICAL EX]CISES 9 ADDITION & SUBTRACTION1 & WE MU/ FUR!R 9QUIRE :E!R IT IS NOT M]ELY BECAUSE MA!MATICAL EQUATIONS >E EASILY PUT ON PAP] ?AT ACCUMULATION WILL CONT9UE AD 9F9ITUM )\T ANY FRICTION4 ,NEV]!LESS ,LUXEMBURG BEGAN BY BUSY+ H]SELF V]Y 9T5SIVELY ) !SE EQUATIONS 9 ORD] TO E/ABLI% ?AT ,M>X'S CALCULATIONS DID NOT WORK \T RIX4 ,HE MA9TA9$1 TO BEG9 )1 ?AT EV]Y SOCIETY ) AN 9CREAS+ POPULATION HAS TO 5L>GE ITS PRODUCTIVE APP>ATUS1 SO ?AT ACCUMULATION IS UNAVOIDABLE4 ,ONE P>T ( ! SURPLUS VALUE IS TRANS=M$ 9TO CAPITAL2 ?IS MEANS ?AT ONE P>T ( ! SURPLUS VALUE ACCUMULAT$ GOES TO V>IABLE1 ANO!R TO CON/ANT CAPITAL4 ,! CAPITALI/S C>RY \T ?IS ACCUMULATION 9 ORD] TO 9CREASE !IR PR(ITS1 BUT ITS SOCIAL EFFECT IS ! PROVISION ( ! CONSUM] & PRODUC] GOODS NECESS>Y = POPULATION GR[?4 ,:ILE 9 ?IS WAY1 ACCORD+ TO ,BAU]1 ! CAPITALI/S 9CREASE !IR CAPITAL1 DESPITE !IR SELF-9T]E/$NESS1 9 A WAY ?AT CON=MS TO SOCIAL NE$S1 AS A RESULT ( ! AN>*IC *>ACT] ( PRODUCTION ! DANG] ALWAYS EXI/S ?AT ACCUMULATION WILL LAG BEH9D POPULATION GR[? OR GET AHEAD ( IT4 ,?US ! FIR/ ?+ TO 9VE/IGATE IS 0H[ ! ACCUMULATION ( CAPITAL %\LD BE C>RI$ \T IF IT IS TO REMA9 9 EQUILIBRIUM ) POPULATION GR[?40 ,TAK+ V>I\S HYPO!TICAL />T+ PO9TS 7SU* AS ?AT ( A #e P]C5T YE>LY GR[? ( POPULATION & SO ( V>IABLE CAPITAL & A CON/ANT RATE ( SURPLUS VALUE71 ,BAU] CALCULAT$ A S]IES ( TRANS=MATIONS ( ! ECONOMIC SY/EM4 ,HIS TABLES 9DICAT$ ?AT ) AN 9CREAS+ ORGANIC COMPOSITION ( CAPITAL1 ! RATE ( ACCUMULATION MU/ RISE YE>LY IF ! EQUILIBRIUM BETWE5 ACCUMULATION & POPULATION IS TO BE MA9TA9$4 ,BAU] DEALT FIR/ ) ! TOTAL CAPITAL1 SUBSEQU5TLY DIFF]5TIAT+ BETWE5 ! TWO DEP>TM5TS ( PRODUCTION4 ,A HI<] ORGANIC COMPOSITION ( CAPITAL IMPLIES ! TRANSF] ( A P>T ( ! SURPLUS VALUE ACCUMULAT$ 9 CONSUM] GOODS PRODUCTION 9TO ! DEP>TM5T PRODUC+ MEANS ( PRODUCTION4 ,9 ,BAU]'S OP9ION !RE IS NO?+ TO PREV5T ?IS1 S9CE IT RESULTS DIRECTLY FROM ! REQUIREM5TS ( PRODUCTION & ! RELATIONS ( EX*ANGE4 ,BAU] DID NOT D5Y ! >BITR>Y ELEM5TS ,ROSA ,LUXEMBURG CRITICIZ$ 9 ,M>X'S S*EMATA2 BUT BELIEV+ ?AT ,M>X'S REASON+ WAS NEV]!LESS CORRECT1 HE S\BITR>Y ELEM5TS W]E ! HYPO!SES DEF9+ ! />T+ PO9T ( ACCUMULATION2 GIV5 !SE ! MAGNITUDES REPRES5T$ 9 HIS S*EMATA FOLL[$ ) MA!MATICAL NECESSITY4 ,! ONLY RESULT ( 9T]E/ TO US H]E IS ?AT ALL ! COMMODITIES ( BO? DEP>TM5TS C\LD BE SOLD & REALIZ$4 ,BAU] !N ASK$ H[ ,LUXEMBURG C\LD HAVE COME TO ! OPPOSITE VIEW & ?\ BY YE>4 ,H[EV]1 ?IS WAS ONLY A SIMPLIFY+ ASSUMPTION1 MADE = HEURI/IC REASONS -- 9 REALITY ! SURPLUS VALUE CREAT$ 9 ONE YE> MAY BE REALIZ$ OV] A P]IOD ( MANY YE>S4 ,! UNREALIZABILITY ( A P>T ( ! SURPLUS VALUE IS 0ONLY A TRANSITORY PHASE 9 ! :OLE CIRCUIT1 :I* EXT5DS OV] MANY YE>S40 ,ONCE ?IS IS UND]/OOD & ! TIME SCALE COV]$ BY ! S*EMA PROLONG$1 A H>MONI\S PROCESS ( ACCUMULATION RESULTS4 ,! WORK]S' CONSUM+ P[] GR[S AS QUICKLY AS !IR NUMB]S4 ,! CAPITALI/S' CONSUM+ P[] GR[S FIR/ AS RAPIDLY1 S9CE ) ! NUMB] ( WORK]S ! MASS ( SURPLUS VALUE ALSO 9CREASES4 ,! CONSUM+ P[] ( ! :OLE SOCIETY ?US GR[S AS RAPIDLY AS ! VALUE PRODUCT4 ,ACCUMULATION ALT]S NO?+ 9 ?IS2 IT MEANS ONLY ?AT FEW] CONSUM] GOODS & MORE PRODUCTION GOODS >E REQUIR$ ?AN ) SIMPLE REPRODUCTION4 ,! EXT5SION ( ! DOMA9 ( PRODUCTION1 :I* IS A PRESUPPOSITION ( ACCUMULATION1 IS H]E MADE POSSIBLE BY ! GR[? ( ! POPULATION4 ,H[ CAN SU* H>MONI\S CIRCUM/ANCES LEAD TO A CRISIS8 ,! EQUILIBRIUM ( ACCUMULATION & POPULATION GR[? CAN ONLY BE MA9TA9$1 ACCORD+ TO ,BAU]1 0:5 ! RATE ( ACCUMULATION GR[S SO RAPIDLY ?AT DESPITE ! RIS+ ORGANIC COMPOSITION ( CAPITAL1 ! V>IABLE CAPITAL GR[S AS QUICKLY AS ! POPULATION40 ,O!RWISE A SITUATION ( UND]ACCUMULATION >ISES4 ,?IS LEADS TO UNEMPLOYM5T & D[NW>D PRESSURE ON WAGES1 BUT ALSO TO A RISE 9 ! RATE ( SURPLUS VALUE4 ,ASSUM+ A CON/ANT RATE ( ACCUMULATION1 IF ! RATE ( SURPLUS VALUE RISES1 ! PORTION ( SURPLUS VALUE ACCUMULAT$ WILL ALSO GR[4 0,?US ! MASS ( SURPLUS VALUE 9VE/$ 9 ! 5L>GEM5T ( ! V>IABLE CAPITAL ALSO GR[S4 ,IT WILL CONT9UE ?US TO 9CREASE UNTIL ! EQUILIBRIUM BETWE5 ! GR[? ( ! V>IABLE POPULATION & ! GR[? ( ! POPULATION IS REE/ABLI%$40 ,9 ?IS WAY ! UND]ACCUMULATION IS ALWAYS C\NT]ACT$ AGA91 SO ?AT ! P]IODIC CRISIS REPRES5TS ONLY A TRANSITORY PHASE ( ! 9DU/RIAL CYCLE4 ,UND]ACCUMULATION IS ! OBV]SE ( ! OV]ACCUMULATION DESCRIB$ BY ,M>X4 ,PROSP]ITY IS OV]ACCUMULATION4 ,IT PROVIDES ITS [N C\NT]ACTION 9 ! CRISIS4 ,! DEPRESSION ?AT FOLL[S IS A P]IOD ( UND]ACCUMULATION4 ,IT RESOLVES ITSELF BY CREAT+ \T ( ITSELF ! CONDITIONS ( A RETURN TO PROSP]ITY4 ,! P]IODIC RETURN ( PROSP]ITY1 CRISIS1 & DEPRESSION IS ! EMPIRICAL EXPRESSION ( ! FACT ?AT ! ME*ANISM ( ! CAPITALI/ MODE ( PRODUCTION BY ITSELF OV]COMES OV]ACCUMULATION & UND]-ACCUMULATION1 P]PETUALLY ADAPT+ ! ACCUMULATION ( CAPITAL TO ! GR[? ( ! POPULATION4 ,ROSA ,LUXEMBURG HAD ! OPPORTUNITY TO ANSW] H] CRITICS4 ,AGA9/ ! !ORETICIANS ( H>MONI\S DEVELOPM5T1 %E HELD ?AT UND] ! ASSUMPTION ( LIMITLESS CAPITALI/ ACCUMULATION1 0SOCIALISM LOSES ! GRANITE B$ROCK ( OBJECTIVE HI/ORICAL NECESSITY4 ,WE >E LO/ 9 ! FOG ( ! PRE-,M>XI/ SY/EMS & S*OOLS ?AT WANT TO D]IVE SOCIALISM FROM ! PURE 9JU/ICE & WICK$NESS ( ! MOD]N WORLD OR FROM ! PURE REVOLUTION>Y WILL ( ! WORK+ CLASS4 ,?AT OBJECTIVE NECESSITY C\LD ALSO HAVE ANO!R F\NDATION DID NOT 5T] H] M9D4 ,!RE=E %E F\ND NO?+ TO REVISE 9 H] !ORY4 ,DESPITE H] 9SIX'S REPRODUCTION S*EMATA TO BE ABLE TO GIVE H] !ORY ( IMP]IALISM ANO!R BASIS4 ,GIV+ SPECIAL ATT5TION TO ,BAU]'S CRITICISM1 BUT )\T GO+ 9TO HIS CALCULATIONS1 ,LUXEMBURG ATTACK$ HIS !ORY ( POPULATION1 REJECT+ IT AS S5SELESS4 ,9 ?IS %E /OOD COMPLETELY ON ! T]RA9 ( ,M>X'S !ORY1 = :I* IT IS ! ME*ANISM ( PRODUCTION & ACCUMULATION ?AT ADAPTS ! NUMB] ( EMPLOY$ WORK]S TO ! VALORIZATION REQUIREM5TS ( CAPITAL1 & NOT ACCUMULATION ?AT IS ADAPT$ TO POPULATION GR[?4 ,%E ALSO REJECT$ ,BAU]'S SPECULATION ?AT %E HAD 9T]PRET$ ,M>X'S S*EMATA AS REF]R+ TO CAL5D> YE>S1 AL?\< )\T GO+ DEEP] 9TO ! IMPLICATIONS ( ?IS4 ,%E DREW ATT5TION TO ! NECESS>Y DI/9CTION BETWE5 ! REALIZATION ( ! SURPLUS VALUES PRODUC$ BY ! 9DIVIDUAL CAPITALS & ?OSE PRODUC$ BY ! TOTAL CAPITAL1 )\T NOTIC+ ?AT ! TOTAL SURPLUS VALUE CAN ONLY BE REALIZ$ VIA ! REALIZATION ( ! 9DIVIDUAL CAPITALS' SURPLUS VALUES1 = ! TOTAL CAPITAL EXI/S ONLY AS ! SUM ( ALL ! 9DIVIDUAL CAPITALS4 ,:ILE ! MAGNITUDES PO/ULAT$ BY ,M>X'S REPRODUCTION S*EMATA W]E = H] A 0SCI5TIFIC FICTION10 OP]AT+ ) !ORETICAL ASSUMPTIONS AB\T TOTAL CAPITAL & TOTAL SURPLUS VALUE CAN ITSELF BE ONLY A HEURI/IC PROC$URE2 A MEANS TO ! UND]/&+ ( REALITY1 NOT REALITY ITSELF4 ,9 G5]AL ,LUXEMBURG WAS NEV] CLE> AB\T ! FUNCTION ( ! REPRODUCTION S*EMATA1 AS CAN BE SE5 FROM H] HYPO!SIS ?AT !Y 0ANTICIPATE ! ACTUAL T5D5CY ( CAPITALI/ DEVELOPM5T40 ,M>X ASSUM$1 %E WROTE1 0?AT ! COMPLETE & ABSOLUTE DOM9ATION ( ! :OLE E>? BY CAPITALISM1 ! FUR!/ EXT5SION ( ! WORLD M>KET & ! WORLD ECONOMY1 T[>D :I* CAPITAL & ! :OLE ( PRES5T-DAY ECONOMIC & POLITICAL DEVELOPM5T 9 FACT >E HEAD+1 HAD ALREADY BE5 A*IEV$40 ,IF ?IS WAS ,M>X'S PROC$URE1 !N IT W\LD SPEAK NOT = ,LUXEMBURG BUT AGA9/ H]1 = )\T A D\BT ! REPRODUCTION S*EMATA %[ ?AT EV5 UND] ! CONDITIONS !Y ASSUME1 ! CIRCUIT ( CAPITAL IS CONCEIVABLE ON AN EXP&$ SCALE4 ,S9CE ACCORD+ TO ,LUXEMBURG CAPITALISM CAN SIMPLY NOT EXI/ UND] !SE CONDITIONS1 ,M>X ON H] 9T]PRETATION W\LD HAVE IMAG9$ AN ABSOLUTE IMPOSSIBILITY4 ,9 FACT1 H[EV]1 ,M>X'S 9T5TION WAS TO VIEW ! PROCESS ( REPRODUCTION 9 ITS BASIC =M 9 :I* OBSCUR+ M9OR CIRCUM/ANCES HAVE BE5 ELIM9AT$-9 ORD] TO GET RID ( ! FALSE SUBT]FUGES ?AT FURNI% ! SEMBLANCE ( 0SCI5TIFIC0 ANALYSIS :5 ! PROCESS ( SOCIAL REPRODUCTION IS IMM$IATELY MADE ! SUBJECT ( ! ANALYSIS 9 ITS COMPLICAT$ CONCRETE =M4 ,?US ,M>X WAS DEAL+ NOT ) A FUTURE /ATE ( CAPITALISM BUT ) ! 9VE/IGATION ( ! FUNDAM5TAL /RUCTURE ( CAPITALI/ REPRODUCTION1 ITS 9N] RELATIONS1 UNOBS]VABLE AT ! SURFACE LEVEL4 ,:ILE ,ROSA ,LUXEMBURG DID NOT GO 9TO ,OTTO ,BAU]'S CALCULATIONS1 ,H5RYK ,GROSSMANN ACCORD$ !M ALL ! GREAT] ATT5TION4 ,GROSSMANN COMPLETELY REJECT$ H] !ORY1 BUT HE ALSO REJECT$ ,BAU]'S CRITIQUE ( IT4 ,HIS [N 9T]PRETATION ( ,M>X'S !ORY ( ACCUMULATION />T$ FROM ,M>X'S !ORY ( VALUE & TREAT$ ! PROBLEM ( ACCUMULATION AS ONE ( VALORIZATION ?AT >ISES \T ( CAPITALI/ PRODUCTION1 AL?\< IT MANIFE/S ITSELF 9 ! PROCESS ( CIRCULATION4 ,BUT HE C\LD NOT RESI/ 5T]+ 9TO ! :OLE DISCUSSION AB\T ACCUMULATION1 & P>TICUL>LY 9TO ,BAU]'S CONTRIBUTION TO IT4 ,GROSSMANN EMPHASIZ$ ?AT ,BAU] HAD SUCCE$$ 09 CON/RUCT+ A REPRODUCTION S*EMA ?AT 9DE$ MEETS444 ! =MAL REQUIREM5TS ?AT CAN 9 G5]AL BE SET = ?IS TYPE ( CON/RUCTION & PRES5TS NONE ( ! DEFECTS = :I* ,ROSA ,LUXEMBURG CRITICIZ$ ,M>X'S REPRODUCTION S*EMA40 ,C]TA9LY ,BAU]'S POPULATION !ORY IS 0A PURE & SIMPLE AB&ONM5T ( ! ,M>XIAN !ORY ( POPULATION10 BUT 09 & ( ITSELF ,BAU]'S REPRODUCTION S*EMA HAS NO?+ TO DO ) HIS POPULATION !ORY & CAN BE CONSID]$ 9DEP5D5TLY ( IT4 ,ON ! BASIS ( ,BAU]'S ASSUMPTIONS1 ,GROSSMANN %[$ ?AT EXT5D+ ,BAU]'S CALCULATIONS FROM ! P]IOD ( F\R YE>S WORK$ \T BY ,BAU] TO ONE ( ?IRTY-FIVE YE>S L$ TO RESULTS FULLY AT ODDS ) ,BAU]'S CONCLUSIONS4 ,BAU] KNEW1 ( C\RSE1 ?AT ! RIS+ ORGANIC COMPOSITION ( CAPITAL IMPLIES A FALL+ RATE ( PR(IT1 A PH5OM5ON ?AT CAN F C\RSE BE ACCOMPANI$ BY A MORE RAPID GR[? ( ! RATE ( SURPLUS VALUE4 ,BUT 9 HIS S*EMA ! RATE ( SURPLUS VALUE REMA9S CON/ANT 9/EAD ( 9CREAS+ ) ! GR[+ ORGANIC COMPOSITION1 A CONTRADICTION ?AT ,LUXEMBURG HAD ALREADY PO9T$ \T 9 H] ,ANTI-,KRITIK4 ,ACCORD+ TO ,BAU] ?IS CONTRADICTION C\LD BE ELIM9AT$ BY SUPPLEM5T+ HIS S*EMA BY 9TRODUC+ A RIS+ RATE ( SURPLUS VALUE1 AL?\< HE HIMSELF DID NOT UND]TAKE ?IS TASK4 ,W]E ?IS DONE1 ! RATE ( PR(IT W\LD FALL 9 HIS S*EMA1 9 :I* ! CON/ANT CAPITAL GR[S AT TWICE ! RATE ( ! V>IABLE CAPITAL4 ,BUT ?IS FALL ( ! RATE ( PR(IT DOES NOT PREV5T ! GR[? ( CAPITAL & 9CREAS+ CAPITALI/ CONSUMPTION DUR+ ! P]IOD CONSID]$ BY ,BAU]4 ,BY EXT5D+ ,BAU]'S S*EMA BEYOND ?IS P]IOD1 ,GROSSMANN %[$ ?AT ON ,BAU]'S [N ASSUMPTIONS !RE NECESS>ILY COMES A PO9T AFT] :I* ! SURPLUS VALUE NO LONG] SUFFICES TO CONT9UE ACCUMULATION4 ,?US1 9 ,GROSSMANN'S EYES1 ,BAU]'S S*EMA ITSELF PROVID$ PRO( ?AT ! SY/EM FACES AN OBJECTIVE LIMIT SET BY ! T5D5CY1 9H]5T 9 IT1 ( ! PR(IT RATE TO FALL4 ,! LAW ( ! FALL+ RATE ( PR(IT1 H[EV]1 HAS NO?+ TO DO ) ! REPRODUCTION S*EMATA1 EI!R ,M>X'S OR ,OTTO ,BAU]'S4 ,IT FOLL[S FROM ! RIS+ ORGANIC COMPOSITION ( 9DEP5D5TLY ( ! EX*ANGE RELATIONS BETWE5 ! TWO *IEF DEP>TM5TS ( PRODUCTION4 ,ACCORD+ TO ,M>X CRISES CAN >ISE ALSO FROM DISPROPORTIONALITIES )9 ! PRODUCTION & CIRCULATION PROCESSES4 ,BUT AS !SE DISPROPORTIONALITIES MALDI/RIBUTIONS ( CAPITAL AMONG BRAN*ES ( PRODUCTION CAN ALSO 9 TURN BE OV]COME BY WAY ( !SE SAME CRISES1 ! PROCESS ( REPRODUCTION CAN BE REPRES5T$ AS CRISIS FREE1 JU/ AS AN EQUILIBRIUM ( SUPPLY & DEM&1 :I* 9 REAL LIFE DOES NOT EXI/1 CAN BE IMAG9$4 ,CRISES ( ?IS K9D1 >IS+ EXCLUSIVELY FROM ! DISPROPORTIONALITIES ( ! SY/EM1 >E ONLY AN EXPRESSION ( ! AN>*Y ( CAPITALISM & NOT ( ! EXPLOITATIVE *>ACT] ( ! RELATIONS ( PRODUCTION ?AT UND]LIE ?IS AN>*Y2 !Y >E RESOLV$1 !RE=E1 BY ! R$I/RIBUTION ( SURPLUS VALUE1 )\T ! PRODUCTION ( ADDITIONAL SURPLUS VALUE4 ,! CRISES ?AT >ISE FROM ! NATURE ( CAPITALI/ PRODUCTION1 9 CONTRA/1 DO NOT SOLVE !MSELVES BUT CAN BE C\NT]ACT$ ONLY BY ! ADJU/M5T ( SURPLUS VALUE PRODUCTION VALORIZATION NE$S ( ! ALT]$ CAPITAL /RUCTURE ONLY1 ?AT IS1 BY AN 9CREASE 9 EXPLOITATION4 ,OTTO ,BAU] DID NOT CONC]N HIMSELF ) CRISIS RESULT+ FROM ! RELATIONS ( PRODUCTION & ! PRODUCTION ( CAPITAL4 ,HE EXPLA9$ CRISIS AS A RESULT ( DISPROPORTIONALITY1 NOT AS ,TUGAN-,B>ANOVSKY & ,HILF]D+ UND]/OOD IT BUT AS ! DISPROPORTIONALITY BETWE5 ACCUMULATION & POPULATION GR[?4 ,ON ?IS BASIS HE %[$ ?AT ,M>X'S REPRODUCTION S*EMATA CAN BE US$ TO PROVE ! POT5TIAL = ACCUMULATION ( A 0PURE0 CAPITALISM4 ,) ?IS ,GROSSMANN AGRE$1 BUT AT ! SAME TIME HE %[$ ?AT ?IS DID NOT ELIM9ATE ! CRISIS PROBLEM1 S9CE IT IGNOR$ ! VALORIZATION PROBLEM 9VOLV$ ) ACCUMULATION4 ,S9CE ! :OLE DISCUSSION ( CRISIS TURN$ >\ND ,M>X'S REPRODUCTION S*EMATA1 IT WAS NECESS>Y = ,GROSSMANN TO DEAL ) !M4 ,?IS WAS ALL ! MORE IMPORTANT AS ! PREOCCUPATION ) ! S*EMATA GAVE RISE TO ! IMPRESSION ?AT ?IS WAS ,M>X'S REAL CRISIS !ORY1 :ILE ! !ORY1 ADVANC$ 9 ! FIR/ VOLUME ( ,CAPITAL1 ( BREAKD[N 5G5D]$ BY ACCUMULATION WAS TAK5 TO BE AN IDEA LAT] AB&ON$ BY ,M>X4 ,9 ?IS 9T]PRETATION CRISIS REMA9$ A MATT] SOLELY ( ! DISPROPORTIONALITY ( ! SY/EM1 :I* AWAK5$ ! CONVICTION ?AT ANY CRISIS C\LD BE OV]COME ?R\< ! RE/ORATION ( ! LO/ PROPORTIONALITY & ?AT CRISES C\LD P]HAPS BE COMPLETELY ELIM9AT$ BY A BETT] ORGANIZATION ( ! SY/EM4 ,9DE$ IT WAS JU/ !SE VIEWS ?AT L$ ,ROSA ,LUXEMBURG TO ATTACK ! H>MONIZ+ 9T]PRETATIONS ( ! REPRODUCTION S*EMATA1 ) ! UP%OT ?AT 9 ! 5D %E D5I$ ?AT !Y HAD ANY HEURI/IC VALUE4 ,= ,GROSSMANN NO CONCLUSIONS AB\T REALITY CAN BE DRAWN DIRECTLY FROM ! REPRODUCTION S*EMATA4 ,9 ! =M ,M>X GAVE !M1 !Y 9DICAT$ NEI!R AN EQUILIBRIUM NOR A DISEQUILIBRIUM /ATE ( ! ECONOMY4 ,S9CE !Y DEALT ONLY ) ! VALUE SIDE ( REPRODUCTION1 !Y W]E UNABLE TO 0REPRES5T ! REAL PROCESS ( ACCUMULATION ) RESPECT TO BO? VALUES & USE VALUES40 ,!Y MU/ BE UND]/OOD1 ,GROSSMANN ?\X'S ME?OD ( APPROXIMATIONS1 :I* REQUIRE SUBSEQU5T MODIFICATION & COMPLETION TO GIVE A FULL PICTURE ( REALITY4 ,) ! REPRODUCTION S*EMATA 0,M>X WANT$ TO BR+ \T ?AT ! EX*ANGE ( COMMODITIES IS A NECESS>Y PRESUPPOSITION ( ! CAPITALI/ MODE ( PRODUCTION2 HE !RE=E NECESS>ILY HAD TO DESCRIBE NOT ONE CAPITALI/ BUT AT LEA/ TWO 9DEP5D5T COMMODITY PRODUC]S OR PRODUCTION GR\PS02 H5CE ! TWO DEP>TM5TS ( ! REPRODUCTION S*EMATA4 ,BUT ! REPRODUCTION S*EMA 0DOES NOT CLAIM TO BE 9 ITSELF A REPLICA ( CONCRETE CAPITALI/ REALITY2 IT IS ONLY A L9K 9 ,M>X'S *A9 ( APPROXIMATIONS1 :I*1 TOGE!R ) ! SIMPLIFY+ ASSUMPTIONS ?AT LIE AT ! BASE ( ! S*EMA & ! SUBSEQU5T MODIFICATIONS 9 ! DIRECTION ( A PROGRESSIVE CONCRETIZATION1 =M A COH]5T :OLE40 ,?IS P>TICUL> /EP 9 A S]IES ( APPROXIMATIONS LEAD+ TO AN UND]/&+ ( CAPITAL AS A TOTAL PROCESS WAS ( P>TICUL> IMPORTANCE = ,GROSSMANN1 AS 9 HIS VIEW IT WAS ! C5TRAL ELEM5T 9 ! /RUCTURAL PLAN ( ,CAPITAL4 ,PO9T+ \T ?AT ,M>X HAD ALT]$ ! PLAN ( HIS WORK H #a#h#f#c1 ,GROSSMANN HELD IT TO BE V]Y LIKELY '?AT ?IS WAS CONNECT$ ) ,M>X'S DISCOV]Y1 MADE AT ! SAME TIME1 ( ! REPRODUCTION S*EMA4 ,?IS 9T]PRETATION IS SUPPORT$ BY ! 0ME?ODOLOGICAL VIEWPO9T ACTUALLY ADOPT$ 9 ! F9AL V]SION ( ,CAPITAL ! >RANGEM5T ( ! EMPIRICAL MAT]IAL BY REF]5CE TO ! FUNCTIONS ?AT CAPITAL C>RIES \T 9 ITS CIRCUIT4 ,9 #a#h#e#g1 :5 HE WROTE ! ,GRUNDRISSE1 H[EV]1 ,M>X HAD ALREADY DEVELOP$ A REPRODUCTION S*EMA1 ?\< A SIMPL] ONE1 ILLU/RAT+ ! CIRCULATION BETWE5 DIFF]5T DEP>TM5TS ( PRODUCTION4 ,GROSSMANN C\LD NOT HAVE KN[N ?IS AT ! TIME ( HIS [N WORK1 S9CE ,M>X'S E>LI] TEXT HAD NOT YET BE5 PUBLI%$1 BUT ! IDEA ( ! REPRODUCTION S*EMATA DID NOT1 !RE=E1 HAVE TO AWAIT ,M>X'S DISCOV]Y ( #a#h#f#c4 ,AL?\< ! LATT] MAY WELL HAVE 9FLU5C$ ! F9AL =M ( ! S*EMATA1 IT DID NOT DET]M9E ! /RUCTURAL PLAN ( ,CAPITAL4 ,9 ANY CASE1 :AT IS IMPORTANT IS ?AT ALREADY 9 ! ,GRUNDRISSE1 ,M>X SUBORD9AT$ ! PROBLEM ( EX*ANGE TO ?AT ( ! VALORIZATION ( CAPITAL4 ,9 ! PROCESS HE CALL$ SIMPLE REPRODUCTION1 ,AT A GIV5 PO9T 9 ! DEVELOPM5T ( ! PRODUCTIVE =CES-= ?IS WILL DET]M9E ! RELATION ( NECESS>Y LABOR TO SURPLUS LABOR-A FIX$ RELATION BECOMES E/ABLI%$1 9 :I* ! PRODUCT IS DIVID$ 9TO ONE P>T-CORRESPOND+ TO RAW MAT]IAL1 MA*9]Y1 NECESS>Y LABOR1 SURPLUS LABOR & F9ALLY SURPLUS LABOR DIVIDES 9TO ONE P>T :I* GOES TO CONSUMPTION & ANO!R :I* BECOMES CAPITAL AGA94 ,?IS 9N] DIVISION1 9H]5T 9 ! CONCEPT ( CAPITAL1 APPE>S 9 EX*ANGE 9 SU* A WAY ?AT ! EX*ANGE ( ! CAPITALS AMONG ONE ANO!R TAKES PLACE 9 SPECIFIC & RE/RICT$ PROPORTIONS-EV5 IF !SE >E CON/ANTLY *ANG+ 9 ! C\RSE ( PRODUCTION4444 ,EX*ANGE 9 & = ITSELF GIVES !SE CONCEPTUALLY OPPOSITE MOM5TS AN 9DIFF]5T BE+2 !Y EXI/ 9DEP5D5TLY ( ONE ANO!R2 !IR 9N] NECESSITY BECOMES MANIFE/ 9 ! CRISIS1 :I* PUTS A =CIBLE 5D TO !IR SEEM+ 9DIFF]5CE T[>D EA* O!R4 ,! VALORIZATION ( CAPITAL IS = ,M>X 0PRODUCTION ( NEW & L>G] VALUES10 SO ?AT ! REPRODUCTION ( CAPITAL CAN BE UND]/OOD ONLY AS ACCUMULATION4 ,EV]Y REVOLUTION 9 ! PRODUCTIVE =CES ALT]S ! RELATIONS ( EX*ANGES1 0:OSE F\NDATION FROM ! /&PO9T ( CAPITAL & H5CE ALSO ( ?AT ( REALIZATION ?R\< EX*ANGE ALWAYS REMA9S ! RELATION ( NECESS>Y TO SURPLUS LABOR OR444 ( ! DIFF]5T MOM5TS ( OBJECTIFI$ TO LIV+ LABOR40 ,H[EV] ?IS MAY AFFECT EX*ANGE1 0! RELATION ( SURPLUS LABOR TO NECESS>Y LABOR0 MU/ REMA9 0! SAME = ?IS IS EQUAL TO ! CON/ANCY ( ! VALORIZATION ( CAPITAL40 ,! CRISIS MAKES ITS APPE>ANCE 09 ORD] TO RE/ORE ! CORRECT RELATION BETWE5 NECESS>Y & SURPLUS LABOR1 ON :I*1 9 ! LA/ ANALYSIS1 EV]Y?+ RE/S40 ,EX*ANGE1 ,M>X CONT9UES1 DOES NOT *ANGE ! 9N] *>ACT]I/ICS ( VALORIZATION2 BUT IT PROJECTS !M TO ! \TSIDE1 GIVES !M A RECIPROCALLY 9DEP5D5T =M1 & !REBY LETS !IR UNITY EXI/ M]ELY AS AN 9N] NECESSITY1 :I* MU/ !RE=E COME =CIBLY TO ! SURFACE 9 CRISES4 ,BO? >E !RE=E POSIT$ AS ! ESS5CE ( CAPITAL3 ! DEVALUATION ( CAPITAL 9 ! PRODUCTION PROCESS1 AS WELL AS ! SUSP5SION ( DEVALUATION & ! CREATION ( ! CONDITIONS = ! VALORIZATION ( CAPITAL40 ,! CRISIS APPE>S H]E NOT AS ! RESULT ( ! DISAPPE>ANCE ( A PROPORTIONALITY 9 ! RELATION BETWE5 PRODUCTION & CONSUMPTION1 BUT AS A MEANS TO RE/ORE ! 0PROPORTIONALITY0 BETWE5 NECESS>Y LABOR & SURPLUS LABOR ?AT HAS BE5 LO/ ?R\< ! UNCOORD9AT$ MOVEM5T1 R5D]$ 9DEP5D5T1 ( EX*ANGE & PRODUCTION4 ,9 O!R WORDS3 ! PROCESS ( PRODUCTION & ( CIRCULATION1 AL?\< A NECESS>Y UNITY1 IS ACTUALLY UNIFI$ & IS CO-ORD9AT$ TEMPOR>ILY ONLY ?R\< ! CRISIS4 ,REGULATION H]E MEANS ESS5TIALLY NO?+ BUT ! REE/ABLI%M5T ( VALORIZATION1 :I* ( C\RSE MU/ MANIFE/ ITSELF ALSO 9 %IFTS ( ! RELATION BETWE5 ! SPH]ES ( PRODUCTION & 9 ?OSE ( CIRCULATION4 ,! *ANGES 9 ! PROCESS ( CAPITAL AS A :OLE >E ?US DET]M9$ BY ! *ANGES ( PR(IT & ( ACCUMULATION4 ,! CONCRETE =MS !SE PH5OM5A TAKE C\LD1 ACCORD+ TO ,M>X1 BE DEVELOP$ ONLY ) A TREATM5T ( COMPETITION & AN ANALYSIS ( REAL CAPITAL4 ,! TITLES ( ! ?REE VOLUMES ( ,CAPITAL 0,! ,PROCESS ( ,PRODUCTION10 0,! ,PROCESS ( ,CIRCULATION10 & 0,! ,PROCESS ( ,CAPITALI/ ,PRODUCTION AS A ,:OLE0 ILLU/RATE ! /RUCTURE ( ! WORK4 ,! PROCESS AS A :OLE1 AS A UNITY ( ! PRODUCTION & CIRCULATION PROCESSES1 REPRES5TS ! REAL PROCESS ( CAPITALI/ REPRODUCTION4 ,IT IS PRESUPPOS$ BY ! SEP>ATE ANALYZES ( PRODUCTION & CIRCULATION1 :I* IS AS MU* AS TO SAY ?AT ! VOLUMES ON ! PROCESS ( PRODUCTION & CIRCULATION1 BAS$ ON ! !ORY ( VALUE1 DEAL ) MATT]S ?AT APPE> 9 A DIFF]5T =M 9 REALITY4 ,?IS DOES NOT MEAN ?AT ! ANALYSIS ( PRODUCTION 9 T]MS ( VALUE1 OR ( CIRCULATION 9 T]MS ( ! EX*ANGE ( VALUES1 IS NOT AN ANALYSIS ( ! REAL WORLD4 ,IT IS1 BUT ITS CATEGORIES REPRES5T ! WORLD AS EXP]I5C$ 9 A MODIFI$ =M4 ,JU/ AS 0CAPITAL 9 G5]AL1 AS DI/9CT FROM ! P>TICUL> REAL CAPITALS1 IS ITSELF A REAL EXI/5CE10 ! EX*ANGE ( VALUES1 LIKE ! LABOR-TIME VALUE ( COMMODITIES1 ALSO REALLY EXI/S1 AL?\< !SE TOO CAN ONLY BE SE5 9 ! CAPITALI/ ECONOMY'S SUBMISSION TO ! LAWS ( VALUE 9TR9SIC TO IT4 ,! TRANS=MATION ( VALUES 9TO PRICES ( PRODUCTION MAKES NEI!R VALUE NOR REPRODUCTION S*EMATA FRAM$ 9 T]MS ( VALUE FICTIONAL1 S9CE ! BASIS ( ! PRICES ( PRODUCTION 5C\NT]$ 9 REALITY IS NO?+ O!R ?AN ! LABOR-TIME VALUES4 ,?US A /UDY ( CIRCULATION 9 ISOLATION FROM ! SY/EM AS A :OLE DOES NOT REQUIRE 9VE/IGATION ( ! ACTUAL EX*ANGE RELATIONS ( REPRODUCTION4 ,EV5 ON ! AB/RACT BASIS ( ! REPRODUCTION S*EMATA1 ! PROCESS ( REPRODUCTION REQUIRES A DEF9ITE PROPORTIONALITY ( EX*ANGE RELATIONS4 ,IT WAS TO REPRES5T !M ?AT ,M>X DEVIS$ ! S*EMATA1 :I* MAKE NO FUR!R CLAIM TO DESCRIPTION ( REALITY SAVE ?AT !Y REPRES5T A PROCESS ?AT MU/ BE C>RI$ \T 9 ACTUAL REPRODUCTION1 AL?\< 9 =MS DIFF]5T FROM ?OSE ( ! AB/RACT MODEL4 ,AS ACCUMULATION CAN ONLY PROCE$ :5 !RE IS A PROPORTIONAL OR ADEQUATE RELATION ( SURPLUS LABOR TO LABOR AS SU*1 ?IS RELATION MU/ ALSO APPE> 9 ! PROPORTIONS OBTA9+ BETWE5 ! TWO DEP>TM5TS ( PRODUCTION & ! EX*ANGES BETWE5 !M4 ,:]E ?IS PROPORTIONALITY IS NOT PRES5T1 CRISIS WILL 5SUE 9 ORD] TO PRODUCE ! PROPORTIONALITY REQUIR$ = FUR!R ACCUMULATION4 ,IF ONE WANT$ TO CALL ! PRES5CE ( ! NECESS>Y PROPORTIONALITY BETWE5 PR(IT & ACCUMULATION AN 0EQUILIBRIUM0 /ATE 7:I* IT C]TA9LY IS NOT71 ONE C\LD DESCRIBE ! ABS5CE ( ?IS PROPORTIONALITY AS A /ATE ( 0DISEQUILIBRIUM40 ,BUT BO? T]MS W\LD SIGNIFY NO MORE ?AN A RATE ( PR(IT EI!R SUFFICI5T OR 9SUFFICI5T = ACCUMULATION4 ,TO ,GROSSMANN'S OBS]VATION ?AT ! REPRODUCTION S*EMATA >E NOT DESIGN$ 0TO REPRES5T ! REAL PROCESS ( ACCUMULATION 9 T]MS ( VALUE & USE VALUE10 IT MU/ BE ADD$ ?AT ,M>X DID NOT 9T5D ! S*EMATA AS PICTURES ( ! 0REAL PROCESS ( ACCUMULATION02 ! S*EMATA NEV]!LESS DEAL ) VALUES AS MU* AS ) USE VALUES4 ,!IR FUNCTION WAS PRECISELY TO 9DICATE ?AT :ILE 9 REF]5CE TO ! 9DIVIDUAL CAPITALS1 ! BODILY =M ( ! COMMODITIES PRODUC$ WAS :OLLY IMMAT]IAL = ! ANALYSIS1 444 . HIS M]ELY =MAL MANN] ( PRES5TATION IS NO LONG] ADEQUATE 9 ! /UDY ( ! TOTAL SOCIAL CAPITAL & ( ! VALUE ( ITS PRODUCTS4 ,! RECONV]SION ( ONE PORTION ( ! VALUE ( ! PRODUCT 9TO CAPITAL & ! PASS+ ( ANO!R PORTION 9TO ! 9DIVIDUAL CONSUMPTION ( ! CAPITALI/ AS WELL AS ! WORK+ CLASS =M A MOVEM5T )9 ! VALUE ( ! PRODUCT ITSELF 9 :I* ! RESULT ( ! AGGREGATE CAPITAL F9DS EXPRESSION2 & ?IS MOVEM5T IS NOT ONLY A REPLACEM5T ( VALUE BUT ALSO A REPLACEM5T 9 MAT]IAL & IS !RE=E AS MU* B\ND UP ) ! RELATIVE PROPORTIONS ( ! VALUE COMPON5TS ( ! TOTAL SOCIAL PRODUCT AS ) !IR USE VALUE1 !IR MAT]IAL %APE4 ,! ANALYSIS ( PRODUCTION 9 T]MS ( VALUE WAS = ,M>X ! UNAVOIDABLE PRECONDITION = UND]/&+ CAPITAL & ITS LAWS ( MOTION1 EV5 ?\< NOT VALUE BUT PRICES ( PRODUCTION GOV]N ! M>KET1 & ! PRICES CO9CIDE ) VALUES ONLY 9 ! !ORETICAL ANALYSIS ( ! TOTAL CAPITAL4 ,9 ! SAME WAY1 ! ANALYSIS ( ! CIRCULATION PROCESS 9 T]MS ( VALUE WAS A NECESS>Y FIR/ /EP 9 ! SCI5TIFIC UND]/&+ ( CAPITALI/ PRODUCTION1 AL?\< H]E TOO EX*ANGE IS GOV]N$ BY PRICES ( PRODUCTION1 :I* 9 ! FIR/ PLACE REFLECT ! USE VALUES ( COMMODITIES4 ,:AT ,M>X S\ WAS ?AT 9DEP5D5TLY ( ! MODIFICATIONS ( ! VALUE RELATIONS DUE TO M>KET RELATIONS1 ! VALUE RELATIONS !MSELVES ALREADY C>RY ! G]M ( CRISIS4 ,AS A RESULT1 JU/ BY BE+ BAS$ ON VALUE-REGULAT$ EX*ANGE1 :I* IS AT ! SAME TIME AN EX*ANGE ( USE VALUES1 ! REPRODUCTION ( CAPITAL IS A PROCESS %OT ?R\< ) CRISES4 ,! FACT ?AT ! PRODUCTION ( COMMODITIES IS ! G5]AL =M ( CAPITALI/ PRODUCTION IMPLIES ! ROLE :I* MONEY IS PLAY+ 9 IT NOT ONLY AS A M$IUM ( CIRCULATION BUT ALSO AS MONEY CAPITAL1 & IT 5G5D]S C]TA9 CONDITIONS ( NORMAL EX*ANGE PECULI> TO ?IS MODE ( PRODUCTION & !RE=E ( ! NORMAL C\RSE ( REPRODUCTION1 :E!R IT BE ON A SIMPLE OR ON AN EXT5D$ SCALE-CONDITIONS :I* *ANGE 9TO SO MANY CONDITIONS ( ABNORMAL MOVEM5T1 9TO SO MANY POSSIBILITIES ( CRISES1 S9CE A BALANCE IS ITSELF AN ACCID5T [+ TO ! SPONTANE\S NATURE ( ?IS PRODUCTION4 ,M>X !N %[$ H[ ! D\BLE *>ACT] ( ! COMMODITY1 AS VALUE & USE VALUE1 TRANS=MS EV5 ! APP>5T EQUILIBRIUM ( SIMPLE REPRODUCTION 9TO DISEQUILIBRIUM4 ,?US1 = EXAM-PIE1 ! WE> & TE> & REPLACEM5T ( FIX$ CAPITAL CAN PRODUCE DISLOCATIONS 9 ! VALUE-DEF9$ CONDITIONS ( EX*ANGE1 DE/ROY+ ANY POSSIBILITY ( EQUILIBRAT$ REPRODUCTION4 ,)\T GO+ 9TO ,M>X'S EXAMPLES ( ! APPE>ANCE ( DISPROPORTIONALITY )9 SIMPLE REPRODUCTION1 IT H]E NE$S TO BE /RESS$ ONLY ?AT !Y APPLY EXCLUSIVELY TO CAPITALI/ REPRODUCTION4 ,ONCE ! CAPITALI/ =M ( REPRODUCTION IS ABOLI%$1 IT IS ONLY A MATT] ( ! VOLUME ( ! EXPIR+ PORTION-EXPIR+ & !RE=E TO BE REPRODUC$ 9 K9D ( FIX$ CAPITAL44 4 V>Y+ 9 V>I\S SUCCESSIVE YE>S4 ,IF IT IS V]Y L>GE 9 A C]TA9 YE> 444 !N IT IS C]TA9LY SO MU* SMALL] 9 ! NEXT YE>4 ,! QUANTITY ( RAW MAT]IALS1 SEMI-F9I%$ PRODUCTS1 & AUXILI>Y MAT]IALS DOES NOT DECREASE 9 CONSEQU5CE4 ,H5CE ! AGGREGATE PRODUCTION ( MEANS ( PRODUCTION W\LD HAVE TO 9CREASE 9 ! ONE CASE & DECREASE 9 ! O!R4 ,?IS CAN BE REM$I$ ONLY BY A CONT9U\S RELATIVE OV]PRODUCTION4 ,!RE MU/ BE ON ! ONE H& A C]TA9 QUANTITY ( FIX$ CAPITAL PRODUC$ 9 EXCESS ( ?AT :I* IS DIRECTLY REQUIR$2 ON ! O!R H&1 & P>TICUL>LY1 !RE MU/ BE A SUPPLY ( RAW MAT]IALS1 ETC41 9 EXCESS ( ! DIRECT ANNUAL REQUIREM5TS444 - ,?IS SORT ( OV]PRODUCTION IS TANTAM\NT TO CONTROL BY SOCIETY OV] ! MAT]IAL MEANS ( ITS [N REPRODUCTION4 ,BUT )9 CAPITALI/ SOCIETY IT IS AN ELEM5T ( AN>*Y4 ,?US ! PO9T ( ! S*EMATA ( SIMPLE & 5L>G$ REPRODUCTION IS NOT ! DEMON/RATION ( ! POSSIBILITY ( A FRICTIONLESS EX*ANGE BR++ ! TWO DEP>TM5TS ( PRODUCTION 9TO EQUILIBRIUM BUT ! DEMON/RATION ?AT SU* A HYPO!TICAL SITUATION @9 C\LD >ISE NEI!R 9 CAPITALISM NOR 9 A SOCIALI/ SOCIETY4 ,MOREOV]1 :ILE 9 SOCIALISM OV]PRODUCTION W\LD BE 9DISP5SABLE TO ASSURE ! SATISFACTION ( SOCIAL NE$S & W\LD !RE=E BE CONSID]$ NORMAL1 ! SAME SITUATION 9 CAPITALISM1 :]E IT MU/ APPE> AS AN EXCESS OR DEFICI5CY ( REPRODUCTION1 REPRES5TS A PROBLEM B\ND TO MANIFE/ ITSELF 9 DISORGANIZATION & CRISIS4 ,IT DID NOT OCCUR TO ,M>X ?AT ! IDEA ( A H>MONI\S C\RSE ( CAPITALI/ ACCUMULATION C\LD BE D]IV$ FROM HIS REPRODUCTION S*EMATA1 IF ONLY BECAUSE ! FIR/ VOLUME ( ,CAPITAL1 :I* UNAMBIGU\SLY PR$ICT$ ! BREAKD[N ( CAPITALISM1 PREC$$ !M4 ,P]HAPS1 H[EV]1 TO =E/ALL ALL H>MONIZ+ 9T]PRETATIONS1 IT W\LD HAVE BE5 BETT] NOT TO TREAT ! CIRCULATION PROCESS ON ! BASIS ( VALUE EX*ANGE1 S9CE CALCULATION ) VALUES ONLY MAKES S5SE 9 REF]5CE TO ! TOTAL CAPITAL4 ,GROSSMANN'S EXPLANATION1 ?AT ! REPRODUCTION S*EMATA W]E NECESS>Y BECAUSE ! EX*ANGE ( COMMODITIES REQUIRES AT LEA/ TWO EX*ANG+ SOCIAL GR\PS1 IS NOT CONV9C+1 = ?IS OBVI\S FACT NE$S NO DEMON/RATION1 & S9CE ACTUAL EX*ANGE TAKES PLACE 9 PRICE1 NOT VALUE1 T]MS1 SO ?AT ! DIVISION ( ! SY/EM 9TO TWO P>TS CAN BE REPRES5T$ US+ PRICES ( PRODUCTION1 )\T ANY PRELIM9>Y DESCRIPTION US+ VALUES4 ,ROSA ,LUXEMBURG'S OBJECTIONS W]E DIRECT$ AT ,M>X'S CON/RUCTION ( HIS REPRODUCTION S*EMATA 9 VALUE T]MS1 ON :I* BASIS %E %[$ ?AT ! EQUILIBRIUM ASSUM$ BY ,M>X CANNOT BE MA9TA9$ 7SOME?+ ,M>X HIMSELF HAD DEMON/RAT$1 AL?\< ) DIFF]5T >GUM5TS74 ,GROSSMANN CORRECT$ ,LUXEMBURG BY %[+ ?AT ! DISEQUILIBRIUM 9 ! VALUE-BAS$ REPRODUCTION S*EMA C\LD LEAD TO EQUILIBRIUM 9 A S*EMA BAS$ ON PRICES ( PRODUCTION4 ,?US HE %[$ ?AT ! PORTION ( ! SURPLUS PRODUCT %E HAD ?\X'S REPRODUCTION S*EMA REPRES5T$ ! M$IAN L9E ( ACCUMULATION1 ?US ! IDEAL NORMAL PA? ON :I* ACCUMULATION TAKES PLACE EQUALLY 9 BO? DEP>TM5TS ( PRODUCTION4 ,9 REALITY !RE >E DEP>TURES FROM ?IS M$IAN L9E1 BUT !SE DEVIATIONS >E ONLY UND]/&ABLE ON ! BASIS ( ?AT IDEAL AV]AGE L9E4 ,ROSA ,LUXEMBURG'S ]ROR CONSI/S EXACTLY 9 ! FACT ?AT %E TREATS AS AN EXACT DESCRIPTION ( ! REAL PROCESS :AT IS SUPPOS$ TO REPRES5T AN IDEAL NORMAL C\RSE AMONG MANY POSSIBLE CASES4 ,?IS EXPLANATION1 H[EV]1 BR+S US BACK TO ! !ORIES ( ,TUGAN-,B>ANOVSKY1 ,HILF]D+1 & ,OTTO ,BAU]1 :I* 9DE$ ALSO DEAL ONLY ) AN 0IDEAL NORMAL C\RSE10 :I* 9 REALITY W\LD BE DISRUPT$ BY ALL MANN] ( DISPROPORTIONALITIES OR 0DEVIATIONS0 FROM ! 0M$IAN L9E40 ,) !SE AU?ORS TOO IT IS A MATT] ONLY ( A !ORETICALLY CONCEIVABLE 0NORMAL C\RSE0 ( ACCUMULATION 9 :I* ! 0DEVIATIONS0 FROM ! 0M$IAN0 ALWAYS LEAD BACK TO IT1 SO ?AT EQUILIBRIUM ASS]TS ITSELF AS A T5D5CY1 ?US JU/IFY+ ! ASSUMPTION ?AT ! SY/EM HAS NO OBJECTIVE LIMITS4 ,9 ?IS WAY ,GROSSMANN'S ATTEMPT TO C\NT]POSE A ,M>XIAN EQUILIBRIUM TO ,LUXEMBURG'S DIS-EQUILIBRIUM 7ONCE AS ! 0MIDL9E0 ( ! FICTIVE REPRODUCTION 9 VALUE T]MS & !N AS ! SOLUTION ( ! DIS-EQUILIBRIUM BY MEANS ( ! TRANS=MATION ( VALUES 9TO PRICES BY COMPETITION7 LEADS TO ! COMPLETELY UNNECESS>Y CONCESSION ?AT ! REPRODUCTION S*EMATA1 9 ONE V]SION OR ANO!R1 DEMON/RATE ! POSSIBILITY ( A FRICTIONLESS EX*ANGE BETWE5 ! DEP>TM5TS ( PRODUCTION4 ,= ,M>X1 AS /AT$ ABOVE1 ! DIFFICULTIES BASIC TO CAPITALISM >ISE NOT FROM ! EX*ANGE RELATIONS BETWE5 ! DIFF]5T CAPITALS1 AL?\< !SE ALSO EXI/1 BUT FROM ! PRODUCTION RELATIONS :I* APPE> AS EX*ANGE RELATIONS4 ,! REALIZATION ( SURPLUS VALUE IS A PROBLEM ?AT CAPITAL MU/ SOLVE = ITSELF & IS A CONSEQU5CE ( ! PRODUCTION RELATION ( EXPLOITATION ?AT UND]LIES IT4 ,IF CAPITAL C\LD NOT REALIZE ! SURPLUS VALUE1 IT C\LD NOT EXI/1 = IT IS NO?+ BUT SURPLUS VALUE4 ,! V]Y EXI/5CE ( CAPITAL PROVES ?AT IT IS ABLE TO TRANS=M SURPLUS VALUE 9TO CAPITAL4 ,! 9CREAS+ ACCUMULATION FURNI%ES ! PRO( ?AT IT IS 9 A POSITION TO REALIZE AN 9CREAS+ MASS ( SURPLUS VALUE4 ,! REALIZATION ( SURPLUS VALUE HAS1 9 G5]AL1 NO?+ TO DO ) ! WORK]S1 S9CE !Y PRODUCE BO? !IR [N VALUE & ! SURPLUS VALUE & REALIZE !IR [N VALUE 9 !IR CONSUMPTION4 ,! SURPLUS VALUE IS REALIZ$ 9 ACCUMULATION & CAPITALI/ CONSUMPTION 7:I* 9CLUDES ! UNPRODUCTIVE CO/S ( ! SOCIETY74 ,:AT MATT]$ TO ,ROSA ,LUXEMBURG WAS NOT SO MU* ! REALIZATION ( ! SURPLUS VALUE ITSELF1 :I* C\LD NOT BE D\BT$1 BUT ! ME*ANISM ?R\< :I* IT TOOK PLACE4 ,?IS ME*ANISM WAS NOT VISIBLE 9 ! REPRODUCTION S*EMATA1 AS IT WAS ALREADY IMPLICIT 9 ! ASSUMPTION ?AT ! SURPLUS VALUE IS REALIZ$ 9 ! CIRCULATION ( CAPITAL4 ,N[1 ,M>X C\LD ALSO HAVE ELABORAT$ A REPRODUCTION S*EMA 9 :I* ?IS WAS NOT ! CASE2 BUT ?IS W\LD HAVE BE5 PO9TLESS1 AS ! ACCUMULATION ( CAPITAL1 !ORETICALLY & PRACTICALLY1 PRESUPPOSES ! REALIZATION ( SURPLUS VALUE4 ,LUXEMBURG ?\T FROM ! REPRODUCTION S*EMATA1 S9CE %E C\LD NOT SEE H[ ! TRANS=MATION ( ! ACCUMULAT$ SURPLUS VALUE 9TO MONEY C\LD BE ACCOMPLI%$4 ,IT WAS CLE> TO H] ?AT =EIGN TRADE BETWE5 CAPITALI/ NATIONS PROVID$ NO SOLUTION H]E BUT ONLY REPEAT$ ! PROBLEM ON A WID] PLANE4 ,!RE MU/ BE BUY]S :O DO NOT !MSELVES SELL BUT EX*ANGE MONEY = ! SURPLUS VALUE CREAT$ 9 ! CAPITALI/ L&S 9 ! =M ( COMMODITIES4 ,%E DID NOT EXPLA9 :]E !SE BUY]S W\LD OBTA9 ! NECESS>Y MONEY1 BUT IT MU/ D]IVE FROM NON-CAPITALI/ EXPLOITATION RELATIONS1 :I* ACCORD+LY MU/ BE FRUITFUL 5\< TO ABSORB A#a#a ! SURPLUS VALUE PRODUC$ 9 ! CAPITALI/ C\NTRIES & DE/9$ = !IR ACCUMULATION4 ,?US ! PRODUCTION ( SURPLUS VALUE 9DE$ DEP5DS ON ! EXPLOITATION ( ! WORK]S 9 ! CAPITALI/ C\NTRIES1 BUT )\T 5SUR+ ITS ACCUMULATION1 SO ?AT ! ACCUMULATION ( CAPITAL HAS AS ITS ULTIMATE CONDITION ! EXPLOITATION ( NON-CAPITALI/ C\NTRIES4 ,IT FOLL[S FROM ?IS FANTA/IC IDEA ?AT ! TOTAL ACCUMULAT$ CAPITAL ( ! CAPITALI/ WORLD IS ONLY MADE POSSIBLE BY ! EXPLOITATION ( ! NON-CAPITALI/ WORLD & ?AT ! LATT] MU/ ABSORB A QUANTITY ( COMMODITIES ) A VALUE GREAT 5\< TO BE ADEQUATE1 :5 REALIZ$ 9 MONEY1 = ACCUMULATION TO CONT9UE4 ,IF ?IS W]E POSSIBLE1 :I* IT IS NOT1 IT W\LD ONLY MEAN AS IS TRUE = =EIGN TRADE 9 G5]AL ?AT 0! 9VOLVEM5T ( =EIGN COMM]CE 9 ANALYZ+ ! ANNUALLY REPRODUC$ VALUE ( PRODUCTS CAN444 ONLY CONFUSE )\T CONTRIBUT+ ANY NEW ELEM5T ( ! PROBLEM OR ( ITS SOLUTION40 ,MONEY IS ALSO A COMMODITY2 & ! EX*ANGE ( COMMODITIES = MONEY1 :E!R )9 CAPITALI/ >EAS ALONE OR ON ! WORLD M>KET1 REMA9S ! EX*ANGE ( COMMODITIES1 9 :I* ! MONEY =M ( ! COMMODITY IS ONLY ONE PHASE ( ! PROCESS ( CIRCULATION4 ,M>X ALSO RECOGNIZ$ A PROBLEM ( REALIZATION4 ,BUT = HIM IT WAS A PROBLEM SPECIFIC TO ! CAPITALI/ WORLD1 :I* C\LD NOT BE SOLV$ ?R\< ! EXI/5CE ( NON-CAPITALI/ C\NTRIES4 ,! AN>*Y )9 CAPITALI/ PRODUCTION & ACCUMULATION P]MAN5TLY EXCLUDES ! REALIZATION ( A P>T ( ! PRODUC$ SURPLUS VALUE1 SO ?AT ! REALIZ$ SURPLUS VALUE IS ALWAYS DIFF]5T FROM ?AT PRODUC$4 ,:E!R COMMODITIES >E OV]- OR UND]PRODUC$ RELATIVE TO ! M>KET CAN ONLY BE DISCOV]$ AFT] !IR PRODUCTION4 ,! VALUE & SURPLUS VALUE CONTA9$ 9 UNSALEABLE COMMODITIES IS LO/ & CANNOT BE CAPITALIZ$4 ,:5 ! PRODUCTION ORI5T$ T[>D EXPANSION REA*ES A PO9T ?AT PUTS ITS VALORIZATION 9 JEOP>DY1 IT CEASES TO EXP& & !REBY PRODUCES AN UNSALEABLE MASS ( COMMODITIES :OSE VALUE CANNOT BE REALIZ$ BY ACCUMULATION & SO CANNOT BE REALIZ$ AT ALL4 ,9 ?IS WAY ! SUSP5SION ( ACCUMULATION APPE>S AS A PROBLEM ( REALIZATION1 S9CE 9 FACT PRODUC$ COMMODITIES CANNOT BE SOLD4 ,OV]PRODUCTION1 AS ! APPE>ANCE 9 ! M>KET ( ! OV]ACCUMULATION ( CAPITAL1 IS ONLY P]CEIV$ 9 ! =M ( ! 9CREAS+ DIFFICULTIES ( REALIZATION & IS !RE=E EXPLA9$ 9 T]MS ( !M1 AL?\< ITS REAL ORIG9 IS ! 7UN-OBS]VABLE7 9CREAS+ DIV]G5CE BETWE5 PRODUCTION & VALORIZATION4 ,?US = ,M>X !RE >E TWO SORTS ( REALIZATION PROBLEM3 FIR/1 ! EV] PRES5T EXPRESSION ( CAPITALI/ AN>*Y2 & SECOND1 ! CRISIS PROBLEM1 AS ! APPE>ANCE ON ! M>KET ( ! DIV]G5CE BETWE5 ! PR(IT PRODUC$ & ! SURPLUS VALUE REQUIREM5TS ( AN 5L>G$ REPRODUCTION4 ,IT IS !RE=E NOT ! ACCUMULATION ( CAPITAL ?AT DEP5DS ON ! REALIZATION ( SURPLUS VALUE1 BUT ! REALIZATION ( SURPLUS VALUE ?AT DEP5DS ON ACCUMULATION4 ,TO SAY ?IS1 H[EV]1 IS NOT TO EXPLA9 ! ME*ANISM ( ! REALIZATION PROCESS4 ,= EV]Y 9DIVIDUAL CAPITAL ! SUM ( MONEY RESULT+ FROM ! SALE ( ITS COMMODITIES MU/ BE GREAT] ?AN ! SUM ( ! CAPITAL ADVANC$4 ,9 ! SAME WAY 9 COMP>ISON TO ! TOTAL CAPITAL EXPRESS$ 9 MONEY ! TOTAL SURPLUS VALUE MU/ AM\NT TO A GREAT] VALUE 9 MONEY T]MS4 ,:AT IS ! S\RCE ( ?IS ADDITIONAL MONEY8 ,M>X SAW NO PROBLEM H]E BUT LOCAT$ ?IS S\RCE PROVISIONALLY1 BUT COMPLETELY ADEQUATELY = ! PURPOSES ( HIS AB/RACT ANALYSIS ( ! CIRCULATION PROBLEM1 9 GOLD PRODUCTION & CR$IT4 ,ONLY A DISCUSSION ( ! CONCRETE M>KET RELATIONS W\LD1 9 HIS OP9ION1 MAKE IT NECESS>Y TO GO MORE DEEPLY 9TO ! BROAD] DEVELOPM5T ( ! MONEY FUNCTION )9 ! CIRCULATION PROCESS ( SURPLUS VALUE4 ,9 ! E>LI] DISCUSSION ( ! ANSW]S GIV5 BY ,BUKH>9 & ,OTTO ,BAU] TO ,ROSA ,LUXEMBURG'S QUE/ION AS TO ! S\RCE ( ! MONEY = ! TRANS=MATION ( COMMODITY VALUES 9TO ADDITIONAL CAPITAL1 WE ALREADY 5C\NT]$ ,M>X'S ANSW]S TO ?IS QUE/ION ,9 ADDITION1 ?IS PROBLEM WAS = ,M>X NOT SO MU* A QUE/ION :E!R GOLD PRODUCTION C\LD FURNI% A SUFFICI5T & SO P]PETUALLY 9CREAS+ SUPPLY ( MONEY1 BUT JU/ ! REV]SE3 HE SAW IT AS IMPORTANT = CAPITAL TO RE/RICT ! PRODUCTION ( GOLD = MONET>Y USE AS MU* AS POSSIBLE 9 ! 9T]E/ ( ACCUMULATION4 ,! 5TIRE AM\NT ( LABOR P[] & SOCIAL MEANS ( PRODUCTION EXP5D$ 9 ! ANNUAL PRODUCTION ( GOLD & SILV] 9T5D$ AS 9/RUM5TS ( CIRCULATION CON/ITUTES A BULKY ITEM ( ! FAUX FRAIS ( ! CAPITALI/ MODE ( PRODUCTION1 ( ! PRODUCTION ( COMMODITIES 9 G5]AL4 ,IT IS AN EQUIVAL5T AB/RACTION FROM SOCIAL UTILIZATION ( AS MANY ADDITIONAL MEANS ( PRODUCTION & CONSUMPTION AS POSSIBLE1 I4E41 ( REAL WEAL?4 ,TO ! EXT5T ?AT ! CO/S ( ?IS EXP5SIVE MA*9]Y ( CIRCULATION >E DECREAS$1 ! GIV5 SCALE ( PRODUCTION OR ! GIV5 DEGREE ( ITS EXT5SION REMA9+ CON/ANT1 ! PRODUCTIVE P[] ( SOCIAL LABOR IS EO IPSO9CREAS$4 ,H5CE1 SO F> AS ! EXP$I5CIES DEVELOP+ ) ! CR$IT SY/EM HAVE ?IS EFFECT1 !Y 9CREASE CAPITALI/ WEAL? DIRECTLY1 EI!R BY P]=M+ A L>GE PORTION ( ! SOCIAL PRODUCTION & LABOR PROCESS )\T ANY 9T]V5TION ( REAL MONEY1 OR BY RAIS+ ! FUNCTIONAL CAPACITY ( ! QUANTITY ( MONEY REALLY FUNCTION+4 ,AS A MEANS ( CIRCULATION1 COMMODITY MONEY 9 GOLD & SILV] REPRES5TS A GREAT & UNNECESS>Y EXP5SE4 ,= ?IS REASON CAPITAL HAS ALWAYS /RIV5 TO REPLACE COMMODITY MONEY BY SYMBOLIC MONET>Y 9/RUM5TS4 ,COMMODITY MONEY LO/ ITS E>LI] IMPORTANCE ) ! DEVELOPM5T ( BANK+ & CR$IT4 ,AS ! SOCIAL CATEGORY ( MONEY IS ALREADY 9CLUD$ 9 ?AT ( ! COMMODITY1 ! GOLD /&>D WAS A HI/ORICAL BUT NOT A NECESS>Y PH5OM5ON ( COMMODITY CIRCULATION4 ,S9CE ALL COMMODITIES POT5TIALLY REPRES5T MONEY1 & MONEY HAS ALL COMMODITIES AT ITS COMM&1 ON ! NATIONAL LEVEL & REC5TLY 9CREAS+LY ON ! 9T]NATIONAL LEVEL ALSO1 ANY 9/RUM5T ( PAYM5T CAN S]VE AS A MEANS ( EX*ANGE4 ,MONEY IS CREAT$ )9 ! BANK+ SY/EM4 ,! VOLUME ( CR$IT (F]$ BY ! BANKS IS DET]M9$ BY ! GOV]NM5TAL CREATION ( MONEY ?R\< NOTE ISSUES & TREASURY C]TIFICATES & BY V>Y+ RES]VE REQUIREM5TS SET BY ! GOV]NM5T AS A FUNCTION ( DEPOSITS4 ,IF CR$IT IS ONLY P>TIALLY COV]$ BY BANK RES]VES1 IT IS NEV]!LESS G5]ALLY GU>ANTE$ BY CAPITAL [N$ BY ! BORR[]S4 ,:]E !RE IS NO CAPITAL EQUIVAL5T AT H&1 !RE IS ALSO NO CR$IT1 :I* ?US RELATES NOT TO ! MONEY ON H& BUT TO ! EXI/+ CAPITAL4 ,9 ! PROCESS ( CIRCULATION ! ACCUMULAT$ CAPITAL TAKES ON ! COMMODITY =M AT ONE MOM5T & ! MONEY =M AT ANO!R4 ,MEANS ( PRODUCTION & COMMODITIES CAN BE TRANS=M$ 9TO MONEY & VICE V]SA1 SO ?AT ! [N]%IP ( CAPITAL CAN BE EXPRESS$ AS [N]%IP ( MONEY4 ,AL?\< 0CAPITAL0 MEANS MONEY1 IT ALSO 9CLUDES ALL COMMODITIES1 SO ?AT ANY COMMODITY HAS ! CAPACITY TO TAKE ! PLACE ( MONEY4 ,AL?\< ! QUANTITIES PUT ON ! M>KET MU/ BE TRANS=M$ 9TO MONEY1 !Y EMBODY ONLY A P>T ( ! EXI/+ CAPITAL1 SO ?AT ONLY A P>T ( CAPITALI/ PROP]TY NE$S TO TAKE ON ! MONEY =M4 ,9 G5]AL ! NECESS>Y VOLUME ( MONEY IS DET]M9$ BY ! PRICES ( ! COMMODITIES 5T]+ 9TO CIRCULATION & BY ! TURNOV] VELOCITY ( MONEY1 MODIFI$ BY ! MUTUAL CANCELLATION OR ! PO/PONEM5T ( PAYM5TS4 ,ASIDE FROM ! FACT ?AT MONEY HAS BE5 ACCUMULAT$ = C5TURIES 9 ! =M ( COMMODITY MONEY 7:I* HAS CONT9UALLY 9CREAS$ ALSO ?R\< ! PRODUCTION ( PRECI\S METALS7 & !RE=E BE DIRECTLY EX*ANG$ AGA9/ O!R COMMODITIES1 CAPITALI/ ACCUMULATION HAS FRE$ ITSELF FROM !SE LIMITATIONS BY ! ME*ANISM ( CR$IT1 BAS$ ON CAPITAL ALREADY ACCUMULAT$4 ,! TRANS=MATION ( SURPLUS VALUE 9TO ADDITIONAL CAPITAL CAN HE ACCOMPLI%$ )\T ADDITIONAL COMMODITY MONEY1 & CAPITAL CAN BE ACCUMULAT$ 9 ITS COMMODITY =M4 ,NO ACTUAL COMMODITY MONEY CORRESPONDS TO ! CR$IT MONEY NECESS>Y = ?IS2 IT IS ! 0SYMBOLIC =M0 ( AN ADDITIONAL SUM ( MONEY ?AT DOES NOT EXI/ 9 REALITY2 BUT IT SUFFICES TO C>RY \T ! TRANS=MATION ( ! COMMODITY VALUES 9TO ADDITIONAL CAPITAL3 ADDITIONAL CAPITAL 9 TURN DET]M9ES ! FUTURE EXPANSION ( CR$IT4 ,?US IT IS ! ACCUMULATION ( CAPITAL ITSELF :I* SOLVES ! PROBLEM ( ! ADDITIONAL MONEY NECESS>Y & ELIM9ATES ! DIFFICULTIES ( REALIZATION BY MEANS ( ! TE*NIQUES ( F9ANCE4 ,= MONEY TO FUNCTION AS CAPITAL1 IT MU/ FIR/ ( ALL CEASE TO BE MONEY I4E41 IT MU/ BE 9VE/$ 9 MEANS ( PRODUCTION & LABOR P[]4 ,! TRANS=MATION ( SURPLUS VALUE 9TO MONEY IS ONLY A /AGE1 C>RI$ ?R\< 9 ! M>KET1 9 ITS TRANS=MATION 9TO ADDITIONAL CAPITAL4 ,IT IS ( NO CONSEQU5CE AT ALL :E!R ?IS TRANS=MATION IS ACCOMPLI%$ ) COMMODITY MONEY OR SYMBOLIC MONEY4 ,! LATT]1 H[EV]1 CAN BE 9CREAS$ AT WILL & SO ADAPT$ TO ! NE$S ( ACCUMULATION4 ,ITS GR[? ACCOMPANIES ?AT ( ! ACCUMULAT+ CAPITAL BUT IS ALSO LIMIT$ BY ! LATT]4 ,9 ?IS WAY WE RETURN TO ! PO9T :I* APPE>$ SO UNLIKELY TO ,ROSA ,LUXEMBURG1 NAMELY ! PRODUCTION = ! SAKE ( PRODUCTION1 :I* %E BELIEV$ IMPOSSIBLE 9 A CLOS$ SY/EM1 HAV+ FAIL$ TO F9D AN EXPLANATION = ! ADDITIONAL MONEY REQUIR$4 ,IF CAPITAL CAN REALIZE ITS SURPLUS VALUE ?R\< ACCUMULATION1 !N ! 5L>G$ CAPITALS >E REPRES5T$ AS 9CREAS$ SUMS ( MONEY CAPITAL4 ,BUT ACCUMULATION DEP5DS NOT ON MONEY OR CR$IT BUT ON PR(ITABILITY4 ,IF PR(ITS FALL1 & ) !M ! RATE ( ACCUMULATION1 !N ! DEM& = CR$IT DECL9ES ALONG ) ! TOTAL DEM&4 ,! 9SUFFICI5T DEM& APPE>S AS A LACK ( MONEY & ! CRISIS ( PRODUCTION ALSO AS A F9ANCIAL CRISIS4 ,IT !RE=E SEEM$ IMPORTANT TO ,M>X 0FIR/ & =EMO/ TO ASSUME H]E1 AS EV]Y:]E1 METALLIC CIRCULATION 9 ITS SIMPLE/1 MO/ PRIMITIVE BECAUSE !N 9 ! FLUX & REFLUX1 ! SQU>+ ( BALANCES1 %ORT ALL ELEM5TS APPE>+ UND] ! CR$IT SY/EM AS CONSCI\SLY REGULAT$ PROCESSES PRES5T !MSELVES AS EXI/+ 9DEP5D5TLY ( ! CR$IT SY/EM1 & ! MATT] APPE>S 9 PRIMITIVE =M 9/EAD ( ! LAT]1 REFLECT$ =M40 ,9 ADDITION1 AT ! TIME ,M>X WAS WRIT+ ,CAPITAL1 ! EXPANSION ( PRODUCTION & ! CREATION ( NEW MONEY CAPITAL W]E FAVOR$ BY A CR$IT SY/EM ( :I* 0METALLIC CIRCULATION REMA9.<$ !.> BASIS10 A SITUATION ?AT HAS *ANG$ ) MOD]N MODES ( CR$IT CREATION4 ,BUT ! P]PETUAL DEVELOPM5T ( NEW ME?ODS = REALIZ+ SURPLUS VALUE 9 ADDITIONAL CAPITAL IS ONLY ( HI/ORICAL 9T]E/ & ONLY %[S ! EFFECT ( ! 9CREAS+ WEID = ACTUAL SOCIAL NE$S OR EV5 = ! VALORIZATION REQUIREM5TS ( CAPITAL IS EXACTLY :AT IS *>ACT]I/IC ( SURPLUS VALUE PRODUCTION & NO?+ TO BE WOND]$ AT4 ,COMPETITION ON ! BASIS ( VALUE PRODUCTION IMPELS EV]Y CAPITAL1 9 ! 9T]E/S ( SELF-PRES]VATION1 TO ACCUMULATE4 ,IT MU/ GR[ OR GO UND]1 & ! TOTAL RESULT ( ALL !SE /RIV+S IS ! GR[? ( ! TOTAL CAPITAL & ! RESULT+ *ANGES ( ! VALUE RELATIONS1 :I* BR+ ) !M ! FALL 9 ! PR(IT RATE AS SOON AS ! BL9D DRIVE TO ACCUMULATE OV]%OOTS ! ACTUAL PRODUCTIVITY ( LABOR4 ,IF ! SURPLUS VALUE IS NOT SUFFICI5T TO PURSUE ! PROCESS ( ACCUMULATION PR(ITABLY1 IT CAN ALSO NOT BE REALIZ$ ?R\< ACCUMULATION2 IT BECOMES ! UNREALIZ$ SURPLUS VALUE ( OV]PRODUCTION4 ,:]E !RE IS NO SURPLUS VALUE TO BE TRANS=M$ 9TO ADDITIONAL CAPITAL1 !RE ALSO NO ADDITIONAL MONEY & NO CR$IT CAN TRANS=M SURPLUS VALUE 9TO CAPITAL4 ,9 ORD] TO AVOID ?IS CRISIS /ATE1 CAPITAL MU/ ACCUMULATE )\T CEASE1 BUT ?IS IS ONLY POSSIBLE ) A SIMULTANE\S1 CONT9U\S 9CREASE 9 LABOR PRODUCTIVITY1 :I* KEEPS ! T5D5CY ( ! RATE ( PR(IT TO FALL LAT5T4 ,?AT SU* A COORD9ATION ( MAT]IAL PRODUCTION ) ! VALUE REQUIREM5TS ( CAPITAL ACCUMULATION IS D5I$ TO CAPITAL IS APP>5T 9 ! CRISES1 :I* MU/ RE/ORE FROM \TSIDE ! LO/ 9N] COH]5CE ( CAPITALI/ PRODUCTION IF A FUR!R EXPANSION ( CAPITAL IS TO BE POSSIBLE4 ,SURPLUS VALUE IS ! DECISIVE ELEM5T ( CAPITALI/ PRODUCTION4 ,IT CAN BECOME TOO SMALL AS A RESULT ( ! T5D5CY ( ! RATE ( PR(IT TO FALL1 BUT IT CAN NEV] BE TOO BIG4 ,?IS HOLDS NOT ONLY = ! SOCIETY AS A :OLE BUT ALSO = EA* 9DIVIDUAL CAPITAL4 ,CAPITALI/ PRODUCTION !RE=E ALWAYS AIMS AT ! 5L>GEM5T ( SURPLUS VALUE 9 ORD] TO SECURE ITS [N EXI/5CE4 ,= CAPITAL ! 9CREAS+ SURPLUS VALUE ALWAYS SEEMS 9SUFFICI5T1 NO MATT] :AT ITS MAGNITUDE4 ,IF ! M>KET LIMITS CAPITAL 9 ONE BRAN* ( PRODUCTION1 CAPITAL EMIGRATES 9TO ANO!R OR OP5S UP NEW BRAN*ES1 UNTIL !SE TOO REA* ! LIMITS IMPOS$ BY ! M>KET4 ,9 ! C\RSE ( ACCUMULATION ! MAT]IAL SIDE ( M>KET RELATIONS !REBY *ANGES1 BR++ ) IT ! ELABORATION ( NEW NE$S AS AN EXPRESSION ( ! EXP&+ PRODUCTIVE =CES ( SOCIETY & !IR APPLICATION ON A GREAT] SCALE & 9 BROAD] >EAS4 ,MAT]IAL WEAL? GR[S ALONG ) ! DEVELOPM5T ( ACCUMULATION 9 VALUE T]MS4 ,! CAPITALI/S' CONSUMPTION CAN 9CREASE 5ORM\SLY1 ! MASS ( ! UNPRODUCTIVE /RATA ( SOCIETY CAN GR[1 & EV5 ! WORK]S CAN IMPROVE !IR SITUATION ?ANKS TO ! FALL 9 ! VALUE ( CONSUM] GOODS4 ,) ALL ?IS ! PRESSURE ON SURPLUS VALUE ALSO GR[S1 COMPELL+ ALWAYS NEW ATTEMPTS TO 9CREASE IT 9 ORD] TO KEEP ! PROCESS GO+4 ,UND] !SE CONDITIONS !RE CAN BE NO EXCESS ( SURPLUS VALUE BUT ONLY A LACK ( IT1 :I* MU/ F9ALLY APPE> ON ! M>KET AS OV]PRODUCTION & 9SUFFICI5T DEM&4 ,EV]Y EQUILIBRIUM /ATE IS !RE=E A /ATE ( CRISIS1 :I* 9 ?IS DYNAMIC ECONOMY CAN LEAD ONLY TO A BREAKD[N OR TO A NEW TAKE(F4 ,ANY CONCEPT ( EQUILIBRIUM ?US CONTRADICTS CAPITALI/ REALITY & CAN AT MO/ S]VE AS A ME?ODOLOGICAL MEANS = ! 9VE/IGATION ( P>TICUL> PROP]TIES ( ! DYNAMIC C\RSE ( ! ECONOMY4 ,NEV]!LESS1 ,M>XI/S1 9 UNISON ) B\RGEOIS ECONOMI/S1 HAVE SPOK5 ( SUPPOS$ EQUILIBRIUM T5D5CIES ( ! CAPITALI/ ECONOMY & ITS DEVELOPM5T4 ,TO TAKE ONLY ONE EXAMPLE1 ACCORD+ TO ,BUKH>9 ,! :OLE CON/RUCTION ( ,CAPITAL444 BEG9S ) ! ANALYSIS ( A COMPLETELY /ABLE EQUILIBRIUM SY/EM4 ,COMPLICAT+ FACTORS >E GRADUALLY 9TRODUC$4 ,! SY/EM FLUCTUATES1 BECOMES DYNAMIC4 ,ITS FLUCTUATIONS1 H[EV]1 REMA9 REGULAT$ BY LAWS1 & DESPITE ! SUDD5 BREAKD[NS ( EQUILIBRIUM 7CRISES71 ! SY/EM AS A :OLE CONT9UES4 ,! DISRUPTION ( EQUILIBRIUM LEADS TO A NEW EQUILIBRIUM1 SO TO SPEAK1 ( A HI<] ORD]4 ,ONLY AFT] WE UND]/& ! LAWS ( EQUILIBRIUM CAN WE GO ON TO 9VE/IGATE ! SY/EM'S FLUCTUATIONS4 ,! CRISES !MSELVES >E TREAT$ NOT AS ! DE/RUCTION BUT M]ELY AS DI/URBANCES ( EQUILIBRIUM2 & YET ,M>X ?\Y TO DISCOV] ! LAW ( ?IS MOVEM5T & TO UND]/& NOT ONLY H[ ! EQUILIBRIUM IS DI/URB$ BUT ALSO H[ IT IS REE/ABLI%$4 ,BUKH>9 SUMM>IZES HIS EQUILIBRIUM CONCEPTION 9 ! FOLL[+ WAY2 ,! LAW ( VALUE IS ! LAW ( EQUILIBRIUM GOV]N+ ! SY/EM ( SIMPLE COMMODITY PRODUCTION4 ,! LAW ( PRODUCTION PRICE IS ! LAW ( EQUILIBRIUM GOV]N+ ! MODIFI$ COMMODITY SY/EM1 ! CAPITALI/ SY/EM4 ,! LAW ( M>KET PRICE SIMIL>LY GOV]NS ! FLUCTUATIONS ( ?IS SY/EM4 ,! LAW ( COMPETITION GOV]NS ! CONT9UAL REE/ABLI%M5T ( DISRUPT$ EQUILIBRIUM4 ,! LAW ( CRISES GOV]NS ! NECESS>Y P]IODIC DI/URBANCE ( ! SY/EM'S EQUILIBRIUM & ITS RE/ORATION4 ,?IS PO/ULATE ( EQUILIBRIUM IS ! />T+ PO9T ( ALL DISPROPORTIONALITY & UND]CONSUMPTION !ORIES1 :I* ACCORD+LY VIEW CRISES AS DI/URBANCES ( EQUILIBRIUM & !IR OV]COM+ AS ITS RE/ORATION4 ,M>X1 9 CONTRA/1 USES ! IDEA ( EQUILIBRIUM ONLY AS A PROVISORY ME?ODOLOGICAL HYPO!SIS ) A ROLE TO PLAY 9 ! ELABORATION ( HIS AB/RACT !ORY BUT ) NO CLAIM TO REPRES5T PROCESSES 9 REALITY4 ,(T5 IT IS A MATT] ( PURE TAUTOLOGY1 AS ) ! ASSUMPTION ( AN EQUILIBRIUM ( SUPPLY & DEM&1 :I* PLAYS NO ROLE EI!R 9 ! ANALYSIS ( ! TOTAL CAPITAL OR 9 ?AT ( ! PROCESS ( PRODUCTION 9 ISOLATION FROM ! TOTAL SY/EM2 & (T5 ! CONCEPT IS A />T+ PO9T = ! DESCRIPTION ( ! DEVELOPM5T ( CAPITAL1 & :I* 9 ! FRAMEWORK ( ?AT DEVELOPM5T ITSELF NO LONG] HAS ANY SIGNIFICANCE4 ,= ,M>X IT IS NOT EQUILIBRIUM T5D5CIES ?AT GOV]N ! ECONOMY BUT ! LAW ( VALUE1 :I* ASS]TS ITSELF 9 ! SAME WAY AS 0! LAW ( GRAVITY 444 :5 A P]SON'S H\SE COLLAPSES ON TOP ( HIM40 ,CRISIS !RE=E REPRES5TS NOT AN 9SURM\NTABLE DI/URBANCE ( EQUILIBRIUM BUT A TEMPOR>Y BREAKD[N ( ! VALORIZATION ( CAPITAL1 :I* NEI!R BE=E NOR AFT] ITS COLLAPSE IS *>ACT]IZ$ BY ANY EQUILIBRIUM4 ,! FACT ?AT ! CRISIS IS OV]COME LIKEWISE 9DICATES NOT ! RE/ORATION ( A LO/ EQUILIBRIUM BUT %[S ?AT DESPITE ! CONT9U+ DYNAMIC ( ! SY/EM1 IT WAS POSSIBLE TO 9CREASE ! SURPLUS VALUE 5\< = A FUR!R R\ND ( EXPANSION4 0,) RESPECT TO ! VOLUME ( PRODUCTION !RE IS NO EQUILIBRIUM /ATE TO :I* ! SY/EM RETURNS AFT] SOME DEVIATIONS444 4 .<,T.>HE 9DU/RIAL CYCLE IS NO OSCILLATION >\ND SOME MEAN GIV5 BY SOME NECESSITY40 ,EV5 ?\< ,M>X WRITES 9 ONE PLACE ?AT 0P]MAN5T CRISES DO NOT EXI/10 ?IS DOES NOT MEAN1 AS ,BUKH>9 MA9TA9$1 ?AT 0! DI/URBANCE ( ! EQUILIBRIUM LEADS TO A NEW EQUILIBRIUM ( A HI<] ORD]0 BUT ONLY ?AT ! ACCUMULATION 9T]RUPT$ AT A C]TA9 LEVEL ( CAPITALI/ PRODUCTION CAN BE CONT9U$ AT ANO!R LEVEL4 ,?AT ?IS CANNOT ALWAYS BE ! CASE FOLL[S FROM ! AB/RACT ANALYSIS ( VALUE-DET]M9$ ACCUMULATION4 ,BUT SO LONG AS CAPITAL IS ACTUALLY ABLE TO ADAPT ! SURPLUS VALUE TO ! NE$S ( ACCUMULATION BY WAY ( CRISIS1 EV]Y CRISIS IS TEMPOR>Y4 ,BUT EV5 A CRISIS !ORY DISREG>D+ ALL CONSID]ATIONS ( EQUILIBRIUM MU/ DEAL ) ! PROBLEM ( H[ CAPITALISM CAN COLLAPSE :5 IT CAN OV]COME ALL ( ITS CRISES4 ,?US1 = EXAMPLE1 ,OTTO ,B5$IKT DEM&$ ( ,H5RYK ,GROSSMANN1 = :OM ! BREAKD[N ( ! SY/EM W\LD BE AN 9SURM\NTABLE CRISIS1 0:Y ITS 'ECONOMIC 5D PO9T' IS DIFF]5T FROM ! SURM\NTABLE CRISIS8 ,:Y IS ! LA/ CRISIS NO LONG] SURM\NTABLE80 ,FOLL[+ ,L59'S DISPROPORTIONALITY !ORY1 ,B5$IKT CAME TO ! CONCLUSION ?AT ASIDE FROM ITS VALIDITY OR LACK ( IT1 ,GROSSMANN'S CRISIS !ORY IS JU/ A !ORY ( CRISIS & NOT A !ORY ( BREAKD[N4 ,ACCORD+ TO ,B5$IKT ! QUE/ION ( CRISIS CONC]NS NEI!R ! POSSIBILITY NOR ! IMPOSSIBILITY ( CONT9U\S ACCUMULATION1 0BUT A GR[+1 9EVITABLE DIALECTICAL PROCESS ( DI/URBANCES1 CONTRADICTIONS1 & CRISES NOT AN ABSOLUTE1 PURELY ECONOMIC IMPOSSIBILITY ( ACCUMULATION1 BUT A CON/ANT ALT]NATION BETWE5 ! OV]COM+ ( CRISIS & ITS REPRODUCTION AT A HI<] LEVEL UNTIL ! DE/RUCTION ( ?IS S*EMA BY ! PROLET>IAT40 ,GROSSMANN C\LD HAVE GIV5 ! SAME ANSW] AS ,B5$IKT HIMSELF GAVE1 ALONG ) ALL ! DISCUSSANTS ( ! CRISIS PROBLEM1 ) EI!R DIFF]5T RE=MI/ OR REVOLUTION>Y V>IATIONS4 ,9 ! F9AL ANALYSIS !RE CANNOT BE A0 PURELY ECONOMIC0 OR 0A 0AUTOMATIC BREAKD[N40 ,= ,TUGAN-,B>ANOVSKY1 ,HILF]D+1 & ,OTTO ,BAU] IT IS E?ICAL & POLITICALLY CONSCI\S SOCIAL MOVEM5TS ?AT WILL TRANS=M ! EVIL 9TO A BETT] SOCIAL ORD]2 = ,ROSA ,LUXEMBURG & ,ANTON ,PANNEKOEK IT IS ! CLASS-CONSCI\S WORK]S :O1 LONG BE=E ANY !ORETICALLY DET]M9ABLE F9AL /AGE ( CAPITALI/ EXPANSION1 WILL PUT AN 5D TO CAPITALISM2 SO ALSO = ,GROSSMANN 0NO ECONOMIC SY/EM1 NO MATT] H[ WEAK5$1 COLLAPSES BY ITSELF 9 AN AUTOMATIC FA%ION4 ,IT MU/ BE 'OV]?R[N4' 444 .<,T.>HE SO-CALL$ 'HI/ORICAL NECESSITY' DOES NOT OP]ATE AUTOMATICALLY BUT REQUIRES ! ACTIVE P>TICIPATION ( ! WORK+ CLASS 9 ! HI/ORICAL PROCESS40 ,BUT ?IS IS A MATT] = ! CLASS /RUGGLE1 NOT = ECONOMIC !ORY1 :I* CAN ONLY BR+ TO LI9 AS WELL MA9TA9$ 0?AT ! PROCESS ( CAPITALI/ DECAD5CE NECESS>ILY SETS 9 ONCE ! 5L>G$ NEGATIVE REPRODUCTION HAS SWALL[$ UP ! SOCIAL SURPLUS VALUE4 ,!ORETICAL 9VE/IGATION CANNOT DET]M9E ) ABSOLUTE C]TA9TY EXACTLY :5 ! P]IOD ( DECAD5CE BEG9S & BY :AT SPECIFIC FIGURES ?IS PROCESS IS *>ACT]IZ$4 ,?IS IS ALREADY A QUE/IO FACTI4 ,! CONCRETE SITUATION 9 ! ,EUROPEAN ECONOMY 9 ! YE>S #a#i#a#h-#b %[S CLE>LY ?AT ! P]IOD ( DECAD5CE HAS ALREADY BEGUN & ?AT !RE >E NO SIGNS ( A RESURRECTION ( ! OLD SY/EM ( PRODUCTION RELATIONS0 ,A CONSI/5T APPLICATION ( ! UND]CONSUMPTION !ORY C\LD ALSO LEAD TO ! CONCLUSION ?AT CAPITALISM MU/ COLLAPSE4 ,= 9/ANCE1 ,NATALIE ,MOSZK[SKA WROTE ?AT IF ! GAP BETWE5 PRODUCTION & CONSUMPTION REA*ES A C]TA9 SIZE1 & IF ! DEFICI5CY ( CONSUMPTION REA*ES A C]TA9 AMPLITUDE1 RELATIVE PAUP]IZATION BECOMES ABSOLUTE4 ,PRODUCTION IS R$UC$1 & ! WORK]S >E ?R[N 9TO ! /REETS4 ,IF CLASSIC CAPITALISM WAS *>ACT]IZ$ BY RELATIVE PAUP]IZATION1 LATE CAPITALISM IS *>ACT]IZ$ BY ABSOLUTE PAUP]IZATION4 ,& ?IS ABSOLUTE PAUP]IZATION1 NOT SUPPORTABLE = LONG1 LEADS TO ! 5D ( CAPITALISM4 ,?AT ! ECONOMIC CONDITIONS DUR+ & AFT] ! ,FIR/ ,WORLD ,W> GAVE SUPPORT TO ! IDEA ( CAPITALI/ DECL9E IS NOT SURPRIS+4 ,EV5 9 ! B\RGEOIS CAMP ?IS P]IOD NOT ONLY AWAK5$ A DEEP PESSIMISM BUT ALSO UND]M9$ ! E>LI] CONVICTION ?AT SOCIETY CAN MA/] ITS CRISES4 ,9DE$1 ,ADOLF ,L[E REM>K$ ?AT 0! CRISES 9TR9SIC TO ! ECONOMIC SY/EM HAVE LO/ !IR VIRUL5CE2 BUT IF WE CONSID] AN 9T]NATIONAL DE/RUCTION ( VALUE LIKE ! WORLD W> AS ! MOD]N =M ( CRISIS 9 ! AGE ( IMP]IALISM1 & !RE IS MU* TO BE SAID = ?IS VIEW1 !RE IS LITTLE ROOM = EXTRAVAGANT HOPES = SPONTANE\S '/ABILIZATION4' ,9 SU* A SITUATION !RE WAS NOT MU* S5SE 9 MA9TA9+ ?AT = CAPITAL !RE IS 0NO SITUATION ABSOLUTELY )\T A WAY \T0 OR 9 ASSUM+ ! OPPOSITE4 ,UND] ! CIRCUM/ANCES BO? W]E CONCEIVABLE4 ,S9CE = ,M>XISM IT IS NOT ! ECONOMY ?AT CONDITIONS ! GIV5 CLASS RELATIONS BUT ! CAPITALI/ RELATIONS ( PRODUCTION - QUA CLASS RELATIONS - ?AT UND] ! CONDITIONS ( ! M>KET ECONOMY TAKE ON ! FETI%I/IC =M ( ECONOMIC RELATION%IPS1 EV]Y 0PURELY ECONOMIC0 CONCEPTION ( CAPITAL & ITS LAWS ( MOTION IS FROM ! />T 9APPROPRIATE4 ,NEV]!LESS1 AL?\< = ,M>X 0! :OLE ECONOMIC %IT 5DS 9 ! CLASS /RUGGLE10 HE TOOK PA9S DUR+ DECADES ( WORK TO DEMON/RATE ! TRANSITORY NATURE ( CAPITALISM EV5 :5 VIEW$ 9 T]MS ( ITS [N ECONOMIC CATEGORIES4 ,! TR5D ( CAPITALI/ ACCUMULATION T[>D ITS ABOLITION CAN ONLY BE DEMON/RAT$ ) A MODEL RESPECT+ ! ESS5TIAL BASES ( ! SY/EM4 ,9 ,M>X'S !ORETICAL CON/RUCTION CAPITAL MU/ P]I% AS A RESULT ( ITS CONTRADICTIONS2 & S9CE HI/ORY ITSELF DOES NO?+ BUT IS MADE BY PEOPLE1 IT FOLL[S DIRECTLY ?AT ! HI/ORICAL LIMIT ( CAPITAL LIES 9 PROLET>IAN REVOLUTION4 ,CONV]SELY1 H[EV]1 SU* AN UPHEAVAL PRESUPPOSES A DIS9TEGRATION ( CAPITALISM4 ,?R\< ITS ACCUMULATION CAPITAL PRODUCES ITS [N GRAV$IGG]S1 SO ?AT ! PROCESS ( ACCUMULATION ALREADY CONTA9S ITS F9AL 5D1 & ONE CAN RIS AS A POSSIBLE F9AL CRISIS ( CAPITAL MADE ! WI% ! FA!R TO ! ?\DS4 ,9 PR9CIPLE 9 DEVELOP$ CAPITALISM ANY GREAT CRISIS CAN BECOME ! F9AL CRISIS4 ,IF IT DOES NOT1 IT REMA9S A PRESUPPOSITION ( FUR!R ACCUMULATION4 ,?IS IS NOT TO SAY ?AT !RE CANNOT >ISE A SITUATION ( 0P]MAN5T0 CRISIS1 S9CE ?IS CONCEPT MU/ ALSO BE CON/RU$ NOT AS REF]R+ TO ET]NITY BUT ONLY 9 CONTRA/ TO TEMPOR>Y1 QUICKLY SURM\NT$ CRISES4 ,9 ?IS S5SE ! 0P]MAN5T0 CRISIS IS JU/ AS CONCEIVABLE )9 ! ,M>XIAN SY/EM AS SURM\NTABLE CRISES4 ,:5 ,M>X D5I$ ?AT !RE >E P]MAN5T CRISES1 HE WAS REF]R+ ONLY TO ! BUS9ESS CYCLE ( ! PREVI\S C5TURY & TO ,ADAM ,SMI?'S !ORY ( ACCUMULATION1 9 :I* ! PR(IT RATE MU/ ALWAYS FALL4 ,?AT UND] ! PRES5T-DAY CONDITIONS ( WORLD CAPITAL A /ATE ( P]SI/5T ECONOMIC & POLITICAL CRISIS CAN >ISE IS JU/ AS POSSIBLE AS ?AT ! CRISIS WILL GIVE CAPITAL A *ANCE TO BEG9 A NEW EXPANSION4 ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #c1 #bba 3 ,*APT] #c -- ,ADD$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/