,*APT] #e ,]NE/ ,M&EL'S ,LATE ,CAPITALISM ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,9 ! FIELD ( PRES5T-DAY ,M>XISM1 ,]NE/ ,M&EL OCCUPIES A LEAD+ POSITION4 ,HIS 9DU/RY & AMBITION HAVE PRODUC$ A SMALL LIBR>Y ( ,M>XISM TO :I* EV5 B\RGEOIS ECONOMI/S PAY SOME RESPECT4 ,9 HIS BOOK ,LATE ,CAPITALISM1 ,M&EL PRACTICES A SORT ( SELF-CRITICISM ) RESPECT TO HIS E>LI] WORKS4 ,9 P>TICUL> HE CRITICIZES HIS ,M>XI/ ,ECONOMIC ,!ORY1 FIR/1 = ITS 0EXAGG]AT$LY DESCRIPTIVE *>ACT]10 & !N = ITS 0TOO SMALL EF=T TO EXPLA9 ! CONTEMPOR>Y HI/ORY ( CAPITALISM BY ITS IMMAN5T LAWS ( MOTION0 7P4 #g1 ,G]MAN $474,S9CE ! LAT] BOOK CONTA9S ,M&EL'S CORRECTIONS ( HIS E>LI] WORKS1 ,LATE ,CAPITALISM MU/ BE SE5 AS REPRES5T+1 IF NOT ,M&EL'S F9AL CONCEPTION1 AT LEA/ HIS IDEAS ( ! MOM5T1 :I* MAKES A LOOK BACK AT HIS ,ECONOMIC ,!ORY L>GELY SUP]FLU\S4 ,9 ! C\RSE ( HIS V>I\S WORKS1 ,M&EL CAME TO ! CONCLUSION1 :I* %\LD HAVE BE5 OBVI\S FROM ! BEG9N+1 0?AT \R EXPLANATION ( ! HI/ORY ( ! CAPITALI/ MODE ( PRODUCTION IS ONLY POSSIBLE ?R\< A M$IATION BETWE5 ! LAWS ( MOTION ( 'CAPITAL 9 G5]AL' & ! CONCRETE =MS ( APPE>ANCE ( ! 'MANY CAPITALS0' 7P4#g1 ,G]MAN $42 SEE ,5GLI% $41 PP4 #h-#i74 ,! CONTEMPOR>Y CONCRETE =M ( APPE>ANCE ,M&EL COND5SES 9TO ! CONCEPT ( 0LATE CAPITALISM10 AL?\< ?IS DOES NOT FEEL QUITE RIX'S ,CAPITAL & ,L59'S ,IMP]IALISM \T ( DATE0 7P4#a74 ,S9CE ,L59 ALSO CLAIM$ TO HOLD TO ! ANALYTICAL F9D+S1 ,M>X'S ,CAPITAL1 ONE CANNOT SPEAK ( ! ANALYTICAL F9D+S ( ,L59'S ,IMP]IALISM3 IT ONLY REPRES5TS ,L59'S 9T]PRETATION ( A P>TICUL> SITUATION1 NAMELY ! ,FIR/ ,WORLD ,W>1 ON ! BASIS ( ! 9CORRECTLY UND]/OOD1 TO BE SURE1 ,M>XIAN LAWS ( MOTION ( CAPITAL4 ,?US ,M&EL CAN MAKE BUT LITTLE APPEAL TO ,L591 EV5 :5 HIS POLITICAL POSITION COMPELS HIM TO PLACE ,L59 NEXT TO ,M>X1 AL?\<1 AS ,M&EL HIMSELF PO9TS \T1 ,L59 0DOES NOT PROVIDE A SY/EMATIC !ORY ( ! CONTRADICTIONS ( CAPITALI/ DEVELOPM5T0 7P4#c#h1 N474 ,UP TO N[1 ACCORD+ TO ,M&EL1 ! RELATION%IP BETWE5 ! LAWS ( MOTION & ! HI/ORY ( CAPITALISM HAS NOT BE5 SATISFACTORILY EXPLA9$4 ,HE WANTS TO FILL ?IS GAP1 :I* NECESS>ILY BR+S HIM 9TO OPPOSITION ) NE>LY EV]Y PREVI\S 9T]PRETATION ( CAPITALI/ DEVELOPM5T4 ,M&EL NEV]!LESS DEVOTES ! CU/OM>Y 9TRODUCTORY PAGES TO ! 0DIALECTICAL ANALYSIS10 N[ BECOME A 0COMMONPLACE0 :I* TRADITIONALLY PREC$ES EV]Y EXPLANATION ( DEVELOPM5T1 9 ORD] TO EMPHASIZE ?AT 0TO R$UCE ,M>X'S ME?OD TO A 'PROGRESSION FROM ! AB/RACT TO ! CONCRETE' 444 IS TO IGNORE ITS FULL RI*NESS0 7P4 #a#d74 ,! CONCRETE IS ! REAL />T+ PO9T1 AS IT IS ! GOAL1 ( ! PROCESS ( KN[L$GE4 ,! TRU? ( ! LAWS ( DEVELOPM5T PRODUC$ BY !ORY MU/ BE EMPIRICALLY PROV54 ,AL?\< !RE IS NO?+ TO OBJECT TO H]E1 ! QUE/ION REMA9S :5CE ! EMPIRICAL PRO( WILL COME4 ,M&EL ATTACKS ?OSE :O ?9K ?AT ! CAPITALI/ MODE ( PRODUCTION /&S 9 ! WAY ( A DIRECT EMPIRICAL V]IFICATION ( ! ,M>XIAN !ORY1 & :O !RE=E RE/RICT !MSELVES TO ! AB/RACT ANALYSIS ( DEVELOPM5TAL T5D5CIES4 ,9 OPPOSITION TO !M1 HE WANTS TO DESCRIBE NOT ONLY ! 0T5D5CIES0 DISCOV]$ BY ! AB/RACT ANALYSIS BUT ALSO ! DEVELOPM5T ( CAPITALISM AS A CONCRETE1 HI/ORICAL PROCESS1 S9CE ,M>X 0CATEGORICALLY & RESOLUTELY REJECT$ ?IS QUASI-TOTAL RIFT BETWE5 !ORETICAL ANALYSIS & EMPIRICAL DATA0 7P4#b74 ,9 ?IS RESPECT !RE IS C]TA9LY LITTLE TO BE F\ND 9 ,M>X1 UNLESS ONE SEES EMPIRICAL PRO( ( HIS !ORY ( CAPITALISM 9 ! FACT ?AT ! PRODUCTION PROCESS1 EXAM9$ 9 ! FIR/ VOLUME ( ,CAPITAL 9 ISOLATION FROM ! RE/ ( ! SY/EM1 IS REPRES5T$ 9 ! ?IRD VOLUME AS ! PROCESS ( PRODUCTION AS A :OLE 9 ! CONCRETE =MS 9 :I* IT IS EXP]I5C$4 ,BUT EV5 9 T]MS ( ! PROCESS AS A :OLE1 & DESPITE ! MANY ILLU/RATIONS TAK5 FROM REALITY1 ONE CANNOT SPEAK ( QUANTITATIVE & EMPIRICAL PRO( ( ! VALIDITY ( ,M>X'S DEVELOPM5TAL !ORY1 S9CE ! DATA NECESS>Y = SU* A PRO( >E 9 CAPITALISM NEI!R AVAILABLE NOR TO BE EXPECT$4 ,BUT1 ,M&EL OBJECTS1 0,9 ! FIR/ VOLUME ( ,CAPITAL ,M>X CALCULAT$ ! MASS & RATE ( SURPLUS VALUE = AN ,5GLI% SP9N+ MILL1 BAS+ HIMSELF ON EXACT DATA 7DECL>ATIONS7 FROM A ,MAN*E/] MANUFACTUR]1 AS !Y HAD BE5 GIV5 HIM BY ,5GELS4440 7P4#b#a N474 ,N[ IT GOES )\T SAY+ ?AT ONE CAN REPRES5T ! PROCESS ( SURPLUS-VALUE EXTRACTION ON ! BASIS ( ! DATA1 GIV5 9 PRICES1 = EA* CAPITALI/ 5T]PRISE4 ,!SE DATA CAN ALSO ILLU/RATE ! DEGREE ( EXPLOITATION ( ! WORK]S BY ! CAPITALI/S1 & SIMIL> DATA ON 9VE/M5TS CAN BE US$ TO ILLU/RATE ! ORGANIC COMPOSITION ( V>I\S CAPITALS4 ,9 NONE ( !SE CASES1 H[EV]1 IS ANY LIX'S !ORY1 NOT PROV+ ?AT CAPITALI/ PRODUCTION IS ! PRODUCTION ( SURPLUS VALUE & IS BAS$ ON ! EXPLOITATION ( LABOR P[] - SOME?+ KN[N LONG BE=E ,M>X & FELT BY EV]Y WORK] 9 HIS [N LIFE4 ,IT IS IMPOSSIBLE TO PROVE ! DETRIM5TAL CONSEQU5CES ( VALUE & SURPLUS VALUE PRODUCTION BY EMPIRICAL /ATI/ICS AS LONG AS CAPITALISM'S 9T]NAL CONTRADICTIONS CAN BE OV]COME BY ACCEL]AT$ ACCUMULATION4 ,:AT ,M&EL CLAIMS TO %[1 NAMELY H[ 0! REAL HI/ORY ( ! PA/ HUNDR$ YE>S0 CAN BE REPRES5T$ 0AS ! HI/ORY ( ! UNFOLD+ DEVELOPM5T ( ! 9T]NAL CONTRADICTIONS ( ?IS MODE ( PRODUCTION0 7P4 #b#b71 COMES D[N1 = HIM AS = EV]YONE ELSE1 TO ! CONC5TRATION & RELAT$ C5TRALIZATION ( CAPITAL & TO CAPITALISM'S SUSCEPTIBILITY TO CRISIS4 ,! T5D5CY TO CRISIS >ISES FROM ! VALORIZATION REQUIREM5TS ( CAPITAL UND] ! CONDITIONS ( BL9D M>KET PROCESSES4 ,! 0REGULATION0 ( ! CAPITALI/ ECONOMY BY ! LAW ( VALUE MEANS ?AT ! CONTRADICTORY MOVEM5T ( CAPITAL CANNOT BE CONT9U\SLY KN[N & FOLL[$ DIRECTLY 9 ITS CONCRETE MANIFE/ATIONS4 ,IF ?IS C\LD BE DONE1 !RE W\LD BE NO NE$ = ! !ORY ( VALUE TO UND]/& ! HI/ORY ( ! LA/ HUNDR$ YE>S4 ,= ,M&EL ! LAW ( VALUE IS NOT A KEY TO ! UND]/&+ ( CAPITALI/ DEVELOPM5T BUT A SORT ( LAW ( NATURE ?AT MU/ ALSO APPLY TO ! PRE-CAPITALI/ P]IOD4 ,9 ?IS CONNECTION HE CITES ,5GELS1 :O 9 A LETT] TO ,W]N] ,SOMB>T 7& ALSO 9 O!R PLACES7 DECL>$ ?AT 9 PRE-CAPITALI/ TIMES1 AT ! 0BEG9N+ ( EX*ANGE10 COMMODITIES W]E EVALUAT$ BY REF]5CE TO !IR LABOR-TIME CONT5T1 SO ?AT VALUE HAD 0A DIRECTLY REAL EXI/5CE40 ,ONLY 9 CAPITALISM IS LABOR-TIME VALUE SO ?OR\E LA-BOR+ UND] A MISCONCEPTION ?AT IS NOT ALLEVIAT$ BY ,M>X'S SUGGE/ION ?AT ! VALUE CONCEPT HAS HI/ORICAL AS WELL AS !ORETICAL SIGNIFICANCE4 ,IT MAKES NO DIFF]5CE :ATSOEV] :E!R COMMODITIES W]E EX*ANG$ 9 PRECAPITALI/ TIMES 9 ACCORDANCE ) !IR LABOR-TIME CONT5TS OR NOT4 ,9 CAPITALISM1 9 ANY CASE1 ?IS POSSIBILITY IS EXCLUD$1 S9CE H]E WE F9D ! SPECIAL COMMODITY LABOR P[] ?AT PRODUCES A SURPLUS VALUE 9 ADDITION TO ITS VALUE4 ,! PRODUCTION ( VALUE & SURPLUS VALUE OBVI\SLY HAD ROOTS 9 PRE-CAPITALI/ EX*ANGE1 & 9 ?IS S5SE !SE SOCIAL CATEGORIES HAVE A HI/ORICALLY FACTUAL ASPECT >IS+ FROM ! G5]AL NECESSITY ( TAK+ ! LABOR TIME 9VOLV$ 9 PRODUCTION 9TO ACC\NT4 ,BUT LABOR TIME & VALUE >E NOT ! SAME ?+4 ,:E!R OR NOT ! EX*ANGE ( LABOR-TIME EQUIVAL5TS TAKES PLACE1 IT HAS NO?+ TO DO ) ! VALUE *>ACT] ( CAPITALI/ PRODUCTION1 :I* REFLECTS ! SOCIAL RELATIONS ( PRODUCTION PECULI> TO ?IS SY/EM4 ,CAPITALISM IS RUL$ BY VALUE NOT BECAUSE PRODUCTION IS REGULAT$ BY LABOR TIME BUT BECAUSE ! EXPLOITATION ( ! WORK]S IS ACCOMPLI%$ BY MEANS ( EX*ANGE4 ,TO SAY ?AT ! VALUE ( ! COMMODITY LABOR P[] IS DET]M9$ LIKE ?AT ( EV]Y O!R COMMODITY IS TO EXPLA9 ! ORIG9 ( SURPLUS VALUE 7?AT IS1 EXTRA LABOR = ! CAPITALI/S74 ,:ILE ! COMMODITY M>KET IS CON/ITUT$ BY ! EX*ANGE ( ! PRODUCTS ( ! TOTAL LABOR TIME EMPLOY$1 !RE IS NO EX*ANGE ( LABOR-TIME EQUIVAL5TS1 S9CE ! CAPITALI/S HAVE NO?+ TO EX*ANGE BUT ONLY APPROPRIATE A PORTION ( ! WORK]S' TOTAL PRODUCT4 ,?US ! LAW ( VALUE CAN HAVE NEI!R A 0DIRECTLY0 NOR AN 09DIRECTLY0 REAL EXI/5CE 9 EX*ANGE4 ,! LAW ( VALUE DOES NOT OP]ATE 9 REALITY AS 9 ! !ORETICAL MODEL DEVELOP$ TO UND]/& REALITY4 ,IT IS BAS$ ON ! DUAL *>ACT] ( LABOR AS A PROCESS BO? ( PRODUCTION & ( CAPITAL EXPANSION1 :I* APPE>S 9 ! DUAL *>ACT] ( ! COMMODITY1 9CLUD+ ! COMMODITY LABOR P[]1 AS USE VALUE & EX*ANGE VALUE4 ,CAPITALI/ PRODUCTION IS ! PRODUCTION ( EX*ANGE VALUE1 & ! USE VALUE ( COMMODITIES IS ONLY A MEANS TO ?IS 5D4 ,) ! 9CREAS+ PRODUCTIVITY ( LABOR ! QUANTITY ( GOODS PRODUC$ 9CREASES :ILE !IR EX*ANGE VALUE FALLS1 ! ONE *ANGE C\NT]ACT+ ! O!R4 ,9 ?IS WAY ! 9CREAS+ PRODUCTIVITY ( LABOR RESULTS 9 ! ACCUMULATION ( CAPITAL1 & ! OPPOSITE MOVEM5TS ( USE VALUE & EX*ANGE VALUE HAVE NO VISIBLE DETRIM5TAL EFFECT ON CAPITALI/ DEVELOPM5T4 ,! ACCUMULATION ( CAPITAL ?US EXPRESSES ! GR[+ PRODUCTIVITY ( LABOR1 :ILE ! GR[? ( PRODUCTIVE CAPITAL 9 TURN IMPROVES ! PRODUCTIVITY ( LABOR4 ,?IS PROCESS 9DICATES ?AT EXPANSION ( CAPITAL IS TI$ TO *ANGES 9 LABOR-TIME RELATIONS4 ,MORE TOTAL LABOR TIME IS EXPRESS$ 9 MORE PRODUCTS1 OR MORE PRODUCTS EXPRESS$ 9 LABOR TIME1 IS NE$$ IF ! GOAL ( CAPITALI/ PRODUCTION1 ! GR[? ( CAPITAL1 IS TO BE ATTA9$4 ,EV]Y CAPITALI/ FIRM ATTEMPTS TO EXP& PRODUCTION 9 ORD] TO MAKE ! MAXIMUM PR(IT1 & ! G5]AL RESULT ( !SE ATTEMPTS IS ! ACCEL]AT+ ACCUMULATION ?AT OV]COMES ! DECL9E ( EX*ANGE VALUES BY ! MORE RAPID GR[? ( ! MASS ( USE VALUES4 ,! 9CREASE 9 ! PRODUCTIVITY ( LABOR IMPLIES ?AT ! USE VALUE-= ! CAPITALI/S-( ! COMMODITY LABOR P[] RISES MORE RAPIDLY ?AN ITS EX*ANGE VALUE4 ,9 O!R WORDS1 PRODUCTIVITY RACES AHEAD WAGES4 ,EXPRESS$ 9 T]MS ( LABOR TIME1 ?IS MEANS ?AT A GR[+ P>T ( ! TOTAL LABOR TIME-9 ANY P>TICUL> 5T]PRISE OR 9 ! SOCIETY AS A :OLE - MU/ S]VE ! 5DS ( ACCUMULATION1 :ILE A DECREAS+ P>T APPE>S AS ! EX*ANGE VALUE ( LABOR P[]4 ,9 PRACTICAL T]MS ?IS IMPLIES ?AT LESS LABOR MU/ VALORIZE 7EXP&7 A GREAT] CAPITAL1 I4E41 ?AT ! ORGANIC COMPOSITION ( CAPITAL *ANGES 9 FAVOR ( CON/ANT RELATIVE TO V>IABLE CAPITAL4 ,9 ?IS S5SE CAPITAL IS ONLY CONT9U+ ! G5]AL DEVELOPM5T ( SOCIETY1 9S(> AS ?IS CAN BE DESCRIB$ AS ! IMPROVEM5T ( ! =CES ( PRODUCTION & ! 9CREASE ( PRODUCTION ) LESS LABOR1 AL?\< ON ! BASIS ( A SET ( SOCIAL RELATIONS COMPELL+ ACCUMULATION ?IS IS OCCURR+ AT A PREVI\SLY UNKN[N TEMPO & TO A PREVI\SLY UNKN[N EXT5T4 ,9 ! *ANGE ( ! ORGANIC COMPOSITION ( CAPITAL1 :I* IS ONLY ANO!R EXPRESSION = ! GR[+ PRODUCTIVITY ( LABOR1 ! CONTRADICTORY MOVEM5T ( EX*ANGE VALUE & USE VALUE MANIFE/S ITSELF AS A CONTRADICTORY MOVEM5T ( ACCUMULATION & PR(IT4 ,! 9CREAS+ USE VALUE ( LABOR P[]1 OR ! RISE 9 ! RATE ( SURPLUS VALUE1 CONFRONTS ! T5D5CY ( ! RATE ( PR(IT TO FALL OR ! T5D5CY ( EX*ANGE VALUE TO DECL9E RELATIVE TO USE VALUE4 ,BUT ?IS TOO IS A MATT]1 AT FIR/1 ( MUTUALLY C\NT]ACT+ T5D5CIES4 ,SO LONG AS ! RATE ( SURPLUS VALUE CAN BE 9CREAS$ MORE RAPIDLY ?AN ! RATE ( PR(IT FALLS1 !SE T5D5CIES >E FACTORS /IMULAT+ ACCUMULATION )\T BE+ DI/+UI%ABLY VISIBLE 9 IT4 ,ASIDE FROM ! FACT ?AT ! PRICE ME*ANISM ( ! M>KET ECONOMY1 TOGE!R ) ! COMPETITION-5=C$ T5D5CY TO ! =MATION ( AN AV]AGE RATE ( PR(IT1 MAKES EXACT OBS]VATION ( *ANGES 9 ! LABOR-TIME RELATIONS UND]LY+ ?IS PROCESS IMPOSSIBLE1 CAPITALISM'S ECONOMIC DATA >E PRODUC$ FROM ! VIEWPO9T ( CAPITAL1 NOT FROM ?AT ( ,M>X'S !ORY ( VALUE4 ,!SE DATA CANNOT BE TRANSLAT$ DIRECTLY 9TO ,M>XIAN CATEGORIES1 AL?\< ! LATT] >E EMBODI$ 9 M>KET EV5TS & F9D 9 SU* PH5OM5A AS ! FALL ( PRICES ( PRODUCTION & ( ! LEVEL ( ! AV]AGE RATE ( PR(IT 9 ! C\RSE ( CAPITALI/ ACCUMULATION SOME CONFIRMATION ( !IR RELEVANCE4 ,EV5 IF IT W]E POSSIBLE TO TRANS=M ALL ! AVAILABLE DATA 9TO ! T]MS ( ! LABOR !ORY ( VALUE1 H[EV]1 ?IS W\LD /ILL LEAD ONLY TO ! DISCOV]Y ?AT ) SUFFICI5T SURPLUS VALUE1 CAPITAL ACCUMULATES1 & ?AT ) LESS IT DOES NOT A PIECE ( KN[L$GE ?AT CAN BE ASC]TA9$ DIRECTLY FROM ! DATA ( ! B\RGEOISIE & ( :I* EV]YONE BECOMES AW>E 9 ! C\RSE ( ! ACTUAL CRISIS CYCLE1 )\T ANY NE$ ( FUR!R 9VE/IGATION4 ,! DEMON/RATION ?AT COMMODITY PRICES MU/ BE D]IV$ FROM LABOR-TIME VALUES IS NOT ! GOAL ( ,M>X'S !ORY ( VALUE BUT ITS />T+ PO9T4 ,! AIM ( ! VALUE !ORY IS RA!R TO GA9 9SIILY ! EQUIVAL5T ( ! LABOR TIME1 EMBODI$ 9 PRODUCTS1 REQUIR$ TO PRODUCE & REPRODUCE IT2 ?IS IS NOT CONTRADICT$ BY OCCASIONAL & P>TIAL DEP>TURES FROM ! NORM4 ,! USE VALUE ( LABOR P[] YIELDS PR(IT1 ! CAPITALI/ %>E ( ! TOTAL LABOR TIME1 LIKEWISE 9 ! =M ( PRODUCTS4 ,GIV5 A CON/ANT NUMB] ( WORK]S1 ! PROCESS ( ACCUMULATION W\LD REQUIRE A CONT9U\S 9CREASE 9 !IR EXPLOITATION1 :I* CAN BE ACCOMPLI%$ EI!R BY L5G!N+ ! ABSOLUTE LABOR TIME OR BY %ORT5+ ! LABOR TIME NECESS>Y TO SECURE ! WORK]S' EXI/5CE4 ,IF ! POSSIBILITIES ( ! FIR/ ME?OD >E EXHAU/$ 9 ! C\RSE ( ACCUMULATION1 ?OSE ( ! SECOND WILL ALSO BE EXHAU/$1 S9CE ! NECESS>Y LABOR TIME IS NOT R$UCIBLE TO Z]O4 ,IF EXPLOITATION CAN NO LONG] BE 9CREAS$1 ACCUMULATION WILL COME TO AN 5D4 ,! NUMB] ( WORK]S MU/ !RE=E 9CREASE ABSOLUTELY IF ! PROCESS ( ACCUMULATION IS TO CONT9UE4 ,& ( C\RSE ! ACCUMULAT+ CAPITAL REQUIRES FUR!R GR[? 9 ! NUMB] ( WORK]S1 :ILE AT ! SAME TIME ! POT5TIAL = EXPLOITATION ( !SE WORK]S IS PROGRESSIVELY DIM9I%$4 ,?IS N>R[+ ( ! BASIS ( ACCUMULATION APPE>S 9 ! *ANG+ ORGANIC COMPOSITION ( CAPITAL4 ,:ILE MORE & MORE WORK]S >E 9VOLV$ 9 ! PRODUCTION PROCESS1 ! NUMB] ( WORK]S FALLS RELATIVE TO ! GR[+ MASS ( CAPITAL 7:I* IS ONLY ANO!R WAY ( SAY+ ?AT LESS LABOR IS US$ TO PRODUCE MORE COMMODITIES74 ,AS A RESULT ! PRODUCTION ( SURPLUS VALUE T5DS TO DECL9E1 AS ! USE VALUE ( LABOR P[] - ITS PRODUCTION = CAPITAL CANNOT BE EXT5D$ TO FILL ! TOTAL LABOR TIME BUT MU/ /OP AT ! PO9T :]E ! EX*ANGE VALUE ( LABOR P[] W\LD FALL BEL[ ITS REPRODUCTION REQUIREM5TS4 ,! CONTRADICTION ( CAPITALI/ ACCUMULATION1 !N1 LIES 9 ! FACT ?AT ! V]Y PROCESS ?AT 9CREASES ! NUMB] ( WORK]S EXPLOIT$1 & ) ?IS ! MASS ( PR(IT1 AT ! SAME TIME CALLS ! CONT9UATION ( ACCUMULATION 9TO QUE/ION4 ,! 9CREAS+ PRODUCTIVITY ( LABOR DECREASES ! QUANTITY ( LABOR TIME EMPLOY$1 & !RE=E ! SURPLUS VALUE PRODUC$1 9 RELATION TO ! GR[+ MASS ( CAPITAL4 ,?IS IS MANIFE/$ 9 ! FALL 9 ! RATE ( PR(IT 7:I* IS ! RATIO ( SURPLUS VALUE TO ! TOTAL CAPITAL74 ,! RATE ( ACCUMULATION AT ANY MOM5T DET]M9ES BO? ! GR[? ( LABOR P[] & ITS DISPLACEM5T BY ! EXT5SION ( PRODUCTION & ! 9CREASE ( EXPLOITATION4 ,! 9CREASE ( EXPLOITATION1 H[EV]1 IS ! PR]EQUISITE = ! EXT5SION ( PRODUCTION2 & SO LONG AS ! LATT] DOES NOT COME UP AGA9/ OBJECTIVE LIMITS1 ! =M] HAS AN UNOB/RUCT$ PA?4 ,!SE OBJECTIVE LIMITS >E SET BY LABOR-TIME RELATIONS1 SPECIFICALLY BY ! RELATION BETWE5 VALUE & SURPLUS VALUE1 BETWE5 WAGES & PR(ITS4 ,IF ! SURPLUS VALUE PRODUC$ BY A GIV5 QUANTITY ( LABOR P[] CANNOT BE 9CREAS$1 IT BECOMES IMPOSSIBLE TO EXPLOIT ADDITIONAL LABOR P[]1 S9CE ?IS W\LD REQUIRE ADDITIONAL MEANS ( PRODUCTION1 MADE AVAILABLE BY ACCUMULATION4 ,! COMPLEX 9T]RELATION%IP ( ALL !SE FACTORS %\LD BE 5\< TO %[ ?AT ! CONSEQU5CES ( ! PROCESS ( CAPITALI/ ACCUMULATION CAN ONLY BE REPRES5T$ AB/RACTLY1 BY AN ANALOGICAL MODEL BAS$ ON ! FUNDAM5TAL CAPITALI/ SOCIAL RELATIONS4 ,AL?\<1 ACCORD+ TO ! LOGIC ( ! !ORY ( VALUE1 ! :OLE DEVELOPM5T ( CAPITALISM IS TO BE EXPLA9$ 9 T]MS ( ! CAPITAL-LABOR RELATION1 ! 9CR$IBLE COMPLEXITY ( ! REAL CAPITALI/ WORLD =MS AN IMP5ETRABLE AGGLOM]ATION ( APP>5TLY UNCONNECT$ FACTORS1 :I* 9 PRACTICE CANNOT BE MADE USE ( TO PROVIDE EMPIRICAL PRO( = ! AB/RACT !ORY4 7,IT %\LD BE NOT$ ?AT IF ?IS IS A 0DEFICI5CY10 ,M>X'S !ORY %>ES IT ) B\RGEOIS 0ECONOMIC SCI5CE10 :I*1 DESPITE ITS EXCLUSIVE CONC]N ) PRICES1 IS ALSO COMPELL$ TO CON/RUCT MODELS IF IT IS TO BECOME COMPREH5SIBLE - A /ATE ( AFFAIRS 9 NO WAY ALT]$ BY EI!R ! !ORETICAL OR ! PRACTICAL USE ( ! MOD]N APP>ATUS ( ECONOMETRICS47 ,IT IS ?US AN ESS5TIAL FEATURE ( CAPITALISM ?AT ! QUANTITATIVE L9K+ ( M>KET PH5OM5A TO ,M>X'S BASIC CATEGORIES1 :I* ,M&EL CLAIMS HE IS ATTEMPT+ 7P4#b#a71 IS QUITE IMPOSSIBLE TO A*IEVE4 ,EV5 AP>T FROM ?IS1 :AT DATA !RE >E = M>KET PH5OM5A >E QUITE 9ACCURATE4 ,AL?\< ECONOMIC /ATI/ICS HAS COME A LONG WAY1 IT IS /ILL L>GELY A MATT] ( UNRELIABLE & 9ADEQUATE 9DICES ?AT CAN H>DLY BE TAK5' S]I\SLY AS A BASIS = CONCLUSIONS AB\T ! LAWS ( MOTION ( CAPITAL4 ,:AT P>TIAL NOTICE HAS BE5 TAK5 ( ! DEVELOPM5T ( PRODUCTION PRICES & COMMODITY PRICES1 ( 9VE/M5T & EMPLOYM5T1 ( 9COME & ITS DI/RIBUTION1 ( TRADE RELATIONS1 ETC41 PROVIDES NO UND]/&+ ( CAPITALI/ ACCUMULATION ?AT CAN BE CORRELAT$ ) ,M>X'S BASIC CATEGORIES4 ,CAPITAL PRODUCES = ! M>KET1 TO :I* IT AB&ONS ! REGULATION ( SOCIAL PRODUCTION )9 ! FRAMEWORK ( ! PRODUCTION ( SURPLUS VALUE4 ,ITS REPRES5TATIVES CAN !RE=E UND]/& NEI!R ! ALLOCATION ( ! TOTAL LABOR TIME NECESS>Y = ! SATISFACTION ( ! SOCIAL NE$S PECULI> TO CAPITALISM NOR ! VALORIZATION DIFFICULTIES ?AT >ISE FROM ! ACCUMULATION PROCESS4 ,)\T REG>D = SOCIAL CONSEQU5CES1 UNKN[ABLE 9 ANY CASE1 EA* FIRM SEEKS TO MAXIMIZE ! PR(IT IT CAN REALIZE ON ! M>KET1 & 9 ACCORDANCE ) ?IS GOAL IT SEEKS TO R$UCE ITS CO/S ( PRODUCTION TO ! M9IMUM4 ,?IS G5]AL EF=T ALT]S ! RELATION ( SOCIAL SURPLUS VALUE TO ! MASS ( ! EXI/+ CAPITAL1 9FLU5C+ ! CONT9UATION ( ! ACCUMULATION PROCESS 9 A POSITIVE OR NEGATIVE WAY4 ,?IS 9FLU5CE IS NEGATIVE :5 ! ORGANIC COMPOSITION ( CAPITAL DOES NOT P]MIT AN 9CREASE 9 PR(ITS SUFFICI5T TO CONT9UE ACCUMULATION UND] ! GIV5 CONDITIONS ( PRODUCTION4 ,! SL[D[N 9 ACCUMULATION ITSELF 9DICATES ?AT NOT 5\< SURPLUS VALUE IS BE+ PRODUC$ OR1 TO PUT ! SAME ?+ 9 O!R WORDS1 ?AT TOO MU* CAPITAL HAS BE5 ACCUMULAT$ 9 RELATION TO ! GO+ RATE ( EXPLOITATION4 ,?IS /ATE ( AFFAIRS1 5G5D]$ BY *ANGES 9 LABOR-TIME RELATIONS1 APPE>S FROM ! CAPITALI/ VIEWPO9T NOT AS A PROBLEM ( SURPLUS-VALUE PRODUCTION BUT AS A PH5OM5ON ( ! M>KET1 S9CE ! LATT] IS NOT ONLY VIEW$ AS ! REGULATOR ( ! ECONOMY BUT ACTUALLY IS ITS ONLY REGULATOR4 ,IT MU/ BE DEMON/RAT$ 9 ! M>KET :E!R OR NOT ! PREC$+ PRODUCTION WAS ADEQUATE TO 0SOCIAL NE$S10 & :E!R OR NOT ?IS PRODUCTION HAS YIELD$ A SURPLUS VALUE SUFFICI5T = A PR(ITABLE EXPANSION ( CAPITAL4 ,W]E IT POSSIBLE TO EXPLA9 M>KET PROCESSES 9 T]MS ( ! LAW ( VALUE1 IT C\LD BE %[N1 9 ! NEGATIVE CASE1 ?AT ! RELATION%IP ( LABOR TO SURPLUS LABOR DOES NOT MEET ! VALORIZATION REQUIREM5TS ( CAPITAL1 & 7S9CE ! NE$S ( SOCIETY 9 G5]AL >E DEF9$ )9 ! FRAMEWORK SET BY !SE VALORIZATION REQUIREM5TS7 ?AT ! DISCREPANCY BETWE5 SURPLUS VALUE & CAPITAL'S NE$ TO EXP& AFFECTS ALL ECONOMIC RELATIONS4 ,S9CE ! M>KET IS ! ACTUAL REGULATOR ( ! CAPITALI/ ECONOMY1 ! *ANGES 9 LABOR-TIME RELATIONS OCCURR+ 9 ! SPH]E ( PRODUCTION WORK !IR WAY ?R\< ! SY/EM 9 ! =M ( M>KET PROCESSES1 AL?\< 9 TRU? IT IS ! VALUE RELATIONS AT ! PO9T ( PRODUCTION ?AT GOV]N ! M>KET4 ,! P[] ( ! LAW ( VALUE OV] SOCIAL PRODUCTION MANIFE/S ITSELF ABOVE ALL 9 ECONOMIC CRISIS1 :I* IS EXP]I5C$ 9 ! M>KET1 NOT DIRECTLY AS ! OV]ACCUMULATION ( CAPITAL BUT 9 ! =M ( 9SUFFICI5T DEM& & ! OV]PRODUCTION ( COMMODITIES4 ,! FACT ?AT ! REALITY ( ! LAW ( VALUE IS DEMON/RAT$ 9 ! CAPITALI/ CRISIS 9DICATES ?AT ?IS LAW HAD BE5 9FR+$ ?R\<\T ! PREVI\S PRODUCTION P]IOD1 TO ! PO9T :]E ! LABOR-TIME RELATIONS GOV]N+ ! PRODUCTION ( SURPLUS VALUE & SO ! PROCESS ( CAPITAL'S SELF-EXPANSION1 TOGE!R ) ! ALLOCATION ( ! TOTAL SOCIAL LABOR TIME B\ND UP ) IT1 OBJECTIVELY EXCLUD$ AN UNLIMIT$ CONT9UATION ( ACCUMULATION4 ,JU/ AS ! LAW ( VALUE WORKS ITS WAY ?R\< CRISIS1 ! OV]COM+ ( CRISIS IS NO?+ BUT ! RE/ORATION - REALIZ$ 9 ! M>KET BUT ESS5TIALLY CONC]N+ ! SPH]E ( PRODUCTION - ( LABOR-TIME RELATIONS YIELD+ A MASS ( PR(IT ADEQUATE = FUR!R ACCUMULATION4 #b ,9/EAD ( EXPLA9+ ! CRISIS CYCLE & CAPITALI/ DEVELOPM5T AS GOV]N$ BY ! LAW ( VALUE1 ,M&EL DOES ! REV]SE3 HE SEEKS CONFIRMATION ( ! LAW ( VALUE 9 ! SURFACE APPE>ANCES ( CAPITALI/ ACCUMULATION4 ,HE BASES ?IS ATTEMPT ON ! IDEA ?AT HI/ORY CANNOT BE R$UC$ TO !ORY4 ,AL?\< !RE IS )\T D\BT MORE TO ! HI/ORY ( CAPITALISM ?AN IS COV]$ BY ! !ORY ( VALUE1 ! LATT] IS NONE!LESS NECESS>Y IF ! G5]AL DEVELOPM5TAL TR5D ( ! HI/ORY IS TO BE RECOGNIZ$4 ,ACCORD+ TO ,M&EL1 H[EV]1 ALL PREVI\S ,M>XI/ !ORIES ( CAPITALI/ DEVELOPM5T L$ TO NO USEFUL RESULT1 S9CE !Y ILLEGITIMATELY ATTEMPT 0TO R$UCE ?IS PROBLEM TO A S+LE FACTOR0 7P4#c#d71 :ILE 9 HIS VIEW1 REF]5CE TO 0! 9T]PLAY ( ALL ! LAWS ( MOTION ( CAPITAL0 IS NECESS>Y 9 ORD] TO EXPLA9 A P>TICUL> RESULT ( ?IS DEVELOPM5T 7P4#d#b74 ,HIS UND]/&+ ( ?IS LEADS ,M&EL TO OPPOSE1 TO BEG9 )1 ,ROSA ,LUXEMBURG1 ,H5RYK ,GROSSMANN1 ,NIKOLAI ,BUKH>91 & ,RUDOLF ,HILF]D+1 ALL ( :OM >E SUPPOS$ TO HAVE D]IV$ !IR !ORIES ( ACCUMULATION EXCLUSIVELY FROM ! REPRODUCTION S*EMATA ( ! SECOND VOLUME ( ,CAPITAL1 ?ANKS TO :I* !IR WORK MU/ BE JUDG$ A FAILURE4 ,:ILE ?IS CRITICISM MAY TELL AGA9/ ,LUXEMBURG1 ,BUKH>91 & ,HILF]D+1 IT DOES NOT BE> ON ,GROSSMANN1 :O EXPLA9$ CAPITALISM'S T5D5CY TO BREAKD[N ON ! BASIS ( ! LAW ( VALUE & ACCUMULATION4 ,AL?\< ,M&EL'S REJECTION ( ! !ORIES ( DEVELOPM5T BAS$ ON ! REPRODUCTION S*EMES MU/ BE SECOND$1 HIS P]=MANCE 9 ?IS REG>D 9DICATES 9SUFFICI5T KN[L$GE ( ! MAT]IAL1 SOME?+ ?AT CANNOT BE MADE UP = BY APPEAL+ TO ! WRIT+S ( ,ROMAN ,ROSDOLSKY4 ,IT DID NOT OCCUR TO ,M>X1 AS ,M&EL PECULI>LY MA9TA9S IT DID1 TO PROVE BY MEANS ( ! REPRODUCTION S*EMATA 0?AT IT IS POSSIBLE = ! CAPITALI/ MODE ( PRODUCTION TO EXI/ AT ALL0 7P4 #b#e74 7,IT C\LD NOT HAVE OCCURR$ TO HIM SIMPLY BECAUSE NO ONE D\BT$ ! EXI/5CE ( CAPITALISM47 ,ACCORD+ TO ,M&EL ,M>X SAW CAPITALISM'S EXI/5CE AS DEP5D5T ON AN EQUILIBRIUM ( ! RELATIONS ( EX*ANGE BETWE5 ! PRODUCTION ( PRODUC] GOODS & ?AT ( CONSUM] GOODS1 AL?\< ! REALITY ( CAPITALISM IS 0A DIALECTICAL UNITY ( P]IODS ( EQUILIBRIUM & P]IODS ( DISEQUILIBRIUM0 7P4 #b#f74 ,?US = ,M&EL ,M>X'S REPRODUCTION S*EMATA REPRES5T A ONE-SID$1 UNDIALECTICAL VIEW ( CAPITALI/ REPRODUCTION1 9CAPABLE ( YIELD+ 9SIT ?IS T5D5CY = ! TWO ,DEP>TM5TS .<( PRODUCTION.> & ALL ?AT CORRESPONDS TO !M TO DEVELOP UN-EV5LY40 ,( !SE S*EMES 0,M>X'S REPRODUCTION S*EMATA WILL ONLY CON/ITUTE A SPECIAL CASE - JU/ AS ECONOMIC EQUILIBRIUM IS ONLY A SPECIAL CASE 4440 7P4#b#g74 ,N[ ,ROSA ,LUXEMBURG1 UNLIKE ,BUKH>9 & ,HILF]D+1 HAD1 TO BE SURE1 SE5 ,M>X'S REPRODUCTION S*EMATA AS IMPLY+ A P]PETUAL DI/URBANCE ( EQUILIBRIUM2 BUT ?IS1 ACCORD+ TO ,M&EL1 IS ALSO WRONG1 S9CE CAPITALISM IS REALLY A DIALECTICAL UNITY ( EQUILIBRIUM & DISEQUILIBRIUM4 ,= ,M&EL ! ONE >ISES FROM ! O!R1 BO? CONCEPTS REF]R+ TO ACTUAL /ATES ( ! ECONOMY4 ,= ,M>X1 9 CONTRA/1 ANY EQUILIBRIUM1 :E!R 9 ! RELATIONS BETWE5 DEP>TM5TS ( PRODUCTION OR 9 ! M>KET G5]ALLY1 WAS A PURE ACCID5T1 OB/RUCT$ AS A RULE BY DISPROPORTIONALITY4 ,?IS DID NOT PREV5T HIM FROM />T+ FROM ! ASSUMPTION ( EQUILIBRIUM 9 ORD] TO EXPOSE ! ESS5TIAL TRAITS ( CAPITAL PRODUCTION & ACCUMULATION4 ,?US1 = EXAMPLE1 HE US$ ! ASSUMPTION ( AN EQUILIBRIUM ( SUPPLY & DEM& 9 ORD] TO LAY B>E ! LAWS ( MOTION UND]LY+ COMPETITION4 ,9 ! SAME WAY ! REPRODUCTION S*EMATA REPRES5T ASSUMPTIONS ?AT C]TA9 CONTRADICT REALITY BUT CAN NEV]!LESS HELP 9 EXPLA9+ IT4 ,A PRODUCTION PROCESS IS AT ! SAME TIME A PROCESS ( REPRODUCTION ?AT REQUIRES CIRCULATION = ITS COMPLETION4 ,= ! DEMON/RATION ( ?IS PROCESS IT IS SUFFICI5T TO ANALYZE TOTAL SOCIAL PRODUCTION 9TO TWO DEP>TM5TS 9 ORD] TO REPRES5T ! CONDITIONS ( IMAG9>Y FRICTIONLESS EX*ANGE4 ,AL?\< CAPITALI/ PRODUCTION ESS5TIALLY ! CREATION ( EX*ANGE VALUE1 IT NEV]!LESS REMA9$ TI$ TO USE VALUE4 ,:ILE ! 9DIVIDUAL CAPITALI/ /RIVES ONLY TO 5L>GE HIS CAPITAL AS ACCUMULAT$ SURPLUS VALUE1 HE CAN DO ?IS ONLY )9 ! FRAMEWORK ( SOCIAL METABOLISM1 :I* IS ALSO A SOCIAL METABOLISM OP]AT+ ON USE VALUES4 ,9 ! SOCIAL CONTEXT ! !ORETICALLY CONCEIVABLE EQUILIBRIUM ( CAPITALI/ EX*ANGE PRESUPPOSES AN EQUILIBRIUM ( ! USE VALUES NECESS>Y = REPRODUCTION4 ,JU/ AS COMPETITION CANNOT BE EXPLA9$ BY COMPETITION1 ! CIRCULATION PROCESS CANNOT BE EXPLA9$ 9 T]MS ( CIRCULATION4 ,! POSSIBILITY ( REPRODUCTION1 SIMPLE OR EXP&$1 DEP5DS ON ! CIRCULATION ( GOODS CONTA9+ DEF9ITE QUANTITIES ( LABOR TIME1 REPRES5T$ 9 ! =M ( VALUES & USE VALUES & DI/RIBUT$ 9 A DEF9ITE WAY4 ,TO %[ ?IS IS ! SOLE TASK ( ! REPRODUCTION S*EMATA4 ,!Y >E DEPICTIONS NOT ( ! REAL PROCESS ( REPRODUCTION BUT ( ! NECESSITIES UND]LY+ ?IS PROCESS4 ,S9CE !Y MAKE !MSELVES FELT ONLY ?R\< CAPITALI/ CATEGORIES1 !SE NECESSITIES >E UNNOTIC$1 BUT NEV]!LESS MU/ BE RESPECT$1 BEH9D ! BACKS ( ! PRODUC]S IF ! ACCUMULATION ( CAPITAL IS TO BE POSSIBLE4 ,! REPRODUCTION S*EMATA >E A FUR!R ILLU/RATION ( ! WORK+ ( ! LAW ( VALUE 9 ! CAPITALI/ PRODUCTION & REPRODUCTION PROCESS4 ,?IS MEANS ?AT ! PROCESS REPRES5T$ AB/RACTLY 9 ! S*EMATA IS 9 REALITY %OT ?R\< ) DISPROPORTIONALITIES & CRISES4 ,! REPRODUCTION S*EMATA CON/ITUTE NEI!R AN EQUILIBRIUM NOR A DISEQUILIBRIUM MODEL BUT SIMPLY ! DEMON/RATION ?AT ACCUMULATION DEP5DS ON A C]TA9 PROPORTIONALITY BETWE5 ! DEP>TM5TS ( PRODUCTION1 :I* MU/ BE E/ABLI%$ 9 ! M>KET BUT IS DET]M9$ BY ! LAW ( VALUE4 ,= ,M&EL1 H[EV]1 ! REPRODUCTION S*EMATA >E A ME?OD ( EQUILIBRIUM ANALYSIS TO :I* HE WANTS TO ADD AN APP>ATUS ( DISEQUILIBRIUM ANALYSIS4 ,9 ?IS HE FOLL[S 9 ! FOOT/EPS ( ,ROSDOLSKY1 = :OM ! REPRODUCTION S*EMATA ON ! ONE H& REPRES5T A 0HEURI/IC DEVICE0 BUT ON ! O!R PICTURE A REAL /ATE ( ! ECONOMY4 ,?US ,ROSDOLSKY WRITES1 = EXAMPLE1 ?AT 9 ! CAPITALI/ MODE ( PRODUCTION ! PROPORTIONAL DEVELOPM5T ( ! V>I\S BRAN*ES ( PRODUCTION1 & ! EQUILIBRIUM BETWE5 PRODUCTION & CONSUMPTION1 CAN ONLY BE OBTA9$444 9 ! MID/ ( CONT9U\S DIFFICULTY & DI/URBANCES4 ,NATURALLY1 ?IS EQUILIBRIUM MU/ AT LEA/ BE ATTA9$ = %ORT P]IODS ( TIME1 OR ELSE ! CAPITALI/ SY/EM W\LD NOT FUNCTION AT ALL4 ,9 ?IS S5SE1 H[EV]1 ,M>X'S S*EMES ( REPRODUCTION >E 9 NO WAY A M]E AB/RACTION1 BUT A PIECE ( ECONOMIC REALITY1 AL?\< ! PROPORTIONALITY ( ! BRAN*ES ( PRODUCTION PO/ULAT$ BY !SE S*EMES CAN ONLY BE TEMPOR>Y1 & 0SPR+ AS A CONT9UAL PROCESS FROM DISPROPORTIONALLTY40 ,!RE >E ?US1 ACCORD+ TO ,ROSDOLSKY & ,M&EL1 P]IODS ( EQUILIBRIUM & P]IODS ( DISEQUILIBRIUM1 )\T ! FIR/ ( :I* CAPITAL CANNOT SURVIVE4 ,! CONTRADICTIONS 9TR9SIC TO CAPITAL ?US ONLY APPE> FROM TIME TO TIME1 :I* SUGGE/S ! QUE/ION1 :Y !Y >E SOMETIMES !RE & AT O!R TIMES NOT4 ,ROSDOLSKY ANSW]S1 CIT+ ,M>X1 ) ! OBS]VATION ?AT ACCUMULATION IS BROK5 BY 0PAUSES10 NAMELY 0P]IODS ( RE/1 DUR+ :I* !RE IS A M]E QUANTITATIVE EXT5SION444 ON ! EXI/+ TE*NICAL BASIS10 = :I* ! REPRODUCTION S*EMATA >E VALID1 S9CE !Y %[ 0! POSSIBILITY ( EXT5D$ REPRODUCTION ?R\< ! MUTUAL ADJU/M5T ( ! PRODUCTION-GOODS & CONSUMPTION-GOODS 9DU/RIES1 & H5CE ALSO ! POSSIBILITY ( ! REALIZATION ( SURPLUS-VALUE40 ,?IS ( C\RSE IMPLIES ?AT ! CAPITALI/ SY/EM CAN ONLY FUNCTION :5 ACCUMULATION IS V]Y SL[ & ?AT ANY QUICK5+ ( ! PACE MU/ LEAD TO CRISIS4 ,& ,ROSDOLSKY ACTUALLY EXPLA9S ?AT ) ! 9TRODUCTION ( TE*NOLOGICAL PROGRESS 9TO ! REPRODUCTION S*EMES1 0! CONDITIONS = EQUILIBRIUM ( PRODUCTION TURN 9TO CONDITIONS = ! DI/URBANCE ( EQUILIBRIUM10 SO ?AT ! EQUILIBRIUM S*EMATA MU/ BE SUPPLEM5T$ BY ,M>X'S !ORY ( CRISIS & COLLAPSE4 ,( C\RSE1 IT IS CORRECT ?AT CAPITAL CAN ACCUMULATE EV5 )\T TE*NOLOGICAL PROGRESS SIMPLY BY ! EXPANSION ( PRODUCTION4 ,ONLY !N IT REA*ES ! LIMITS ( ACCUMULATION MORE QUICKLY1 S9CE UND] SU* CIRCUM/ANCES IT HAS ONLY ! RES\RCES ( ABSOLUTE SURPLUS VALUE 7D]IV$ FROM L5G!N+ ! WORK+ DAY7 TO DRAW ON4 ,BUT AP>T FROM ?IS IT IS OBVI\S1 ACCORD+ TO ,M>X-& ALSO ASIDE FROM HIM-?AT ! CAPITALI/ MODE ( PRODUCTION1 UND] ! COMPULSION ( ACCUMULATION1 9CREASES ! PRODUCTIVE =CES TO AN EXT5T UNDREAM$ ( E>LI] BY CONC5TRAT+ ON RELATIVE SURPLUS VALUE & ONLY 9 ?IS WAY DEVELOPS ITS FULL POT5TIAL4 ,IT IS ! ACCEL]ATION ( ! RATE ( ACCUMULATION1 NOT ITS RET>DATION1 ?AT KEEPS CAPITALISM VIABLE BY ALL[+ IT TEMPOR>ILY TO OV]COME ITS IMMAN5T CONTRADICTIONS1 ONLY TO BR+ !M =? AGA9 AT A HI<] LEVEL ( ACCUMULATION4 ,ROSDOLSKY'S1 & SO ,M&EL'S1 /RANGE CONCEPTION ( ! REPRODUCTION S*EMATA CAN BE ACC\NT$ = BY REF]5CE TO !IR !ORY ( CRISIS4 ,AL?\< ,M&EL IS ( ! OP9ION ?AT NO CRISIS !ORY CAN BE D]IV$ FROM EQUILIBRIUM ANALYSIS1 ! REV]SE SEEMS POSSIBLE TO HIM4 ,BO?1 ,ROSDOLSKY & LATT]LY ALSO ,M&EL1 >E ADH]5TS ( AN UND]CONSUMPTION !ORY ( CRISIS1 NAMELY ! PRIMITIVE IDEA ?AT ! REALIZATION ( ! SURPLUS VALUE IS DIFFICULT BECAUSE ! WORK]S CANNOT BUY BACK !IR SURPLUS PRODUCT4 ,GIV5 ?IS IDEA IT IS UND]/&ABLE1 IF 9CORRECT1 TO HYPO!SIZE ?AT CAPITAL ACCUMULATES BE/ :5 IT ACCUMULATES LEA/1 & ?AT :5 ACCUMULATION IS RE/RICT$1 IT APPROA*ES A /ATE ( EQUILIBRIUM 9 :I* CONSUMPTION EQUALS PRODUCTION2 =1 SAYS ,ROSDOLSKY1 0AS LONG AS ACCUMULATION PROGRESSES1 & A PORTION ( ACCUMULAT$ SUN PLUS-VALUE IS US$ TO EMPLOY ADDITIONAL LABOR-P[]1 I4E41 WORK]S1 !N !SE WILL HELP TO REALIZE ! SURPLUS-VALUE CREAT$ 9 ! PREVI\S P]IOD ( PRODUCTION BY SP5D+ !IR WAGES40 ,& ,ROSDOLSKY SAYS ?IS EV5 ?\< HE ALSO SEES ?AT ! SURPLUS VALUE IS ! P>T ( ! SOCIAL PRODUCT ?AT IS TAK5 FROM ! WORK]S & :OSE VALUE CAN !RE=E ONLY BE REALIZ$ ?R\< ACCUMULATION & CAPITALI/S' CONSUMPTION4 ,H[ ! REALIZATION ( ! SURPLUS VALUE ?R\< ACCUMULATION CAN DECREASE ! GAP BETWE5 PRODUCTION & CONSUMPTION REMA9S HIS SECRET4 ,AL?\< CAPITALISM'S SUSCEPTIBILITY TO CRISIS CAN BE NEI!R D5I$ NOR AFFIRM$ BY REF]5CE TO ! REPRODUCTION S*EMATA1 ! LATT] >E /ILL BAS$ ON ! LAW ( VALUE1 :I* REPRES5TS ! CONTRADICTION 9TR9SIC TO CAPITALI/ PRODUCTION & ACCUMULATION4 ,! S*EMATA >E NOT NE$$ TO PROVE ! CONTRADICTORY MOVEM5TS ( CAPITAL1 = !Y >E ALREADY GIV5 9 ! !ORY ( VALUE4 ,ON ! BASIS ( ?IS !ORY IT IS QUITE ! SAME IF ACCUMULATION PROCE$S QUICKLY OR SL[LY1 IF CAPITAL F9DS ITSELF 9 A 0P]IOD ( RE/0 OR 9 A /ATE ( HECTIC EXPANSION1 S9CE UND] ALL CIRCUM/ANCES AN ADEQUATE P>T ( ! TOTAL PRODUCT MU/ BE CLAIM$ AS SURPLUS VALUE IF ACCUMULATION IS TO TAKE PLACE4 ,O!RWISE !RE W\LD BE ONLY SIMPLE REPRODUCTION1 :I* IS CONTR>Y TO ! CAPITALI/ MODE ( PRODUCTION & IMPLIES A /ATE ( CRISIS4 ,IT IS ( C\RSE TRUE ?AT ACCUMULATION REQUIRES ADDITIONAL LABOR P[] & ?US ADDITIONAL CONSUMPTION1 )\T !REBY AFFECT+ ! REALIZATION ( SURPLUS VALUE4 ,! ABSOLUTE 9CREASE 9 CONSUMPTION ?R\< ACCUMULATION IS AT ! SAME TIME ITS DECREASE RELATIVE TO ! EXP&$ PRODUCTION4 ,:AT ,M&EL & ,ROSDOLSKY HAVE 9 M9D IS ( C\RSE ! RAPID RISE 9 ! ORGANIC COMPOSITION ( CAPITAL ATT5DANT ON TE*NOLOGICAL *ANGE1 :I*1 TOGE!R ) ! DISPLACEM5T ( WORK]S BY MA*9]Y1 DECREASES CONSUMPTION4 ,BUT S9CE ACCUMULATION CAN TAKE PLACE ONLY ) A RELATIVE R$UCTION ( CONSUMPTION1 ?IS HAS NO?+ TO DO ) ! PROBLEM ( ! REALIZATION ( SURPLUS VALUE BUT IS SIMPLY ! CONDITION ?AT HAS *>ACT]IZ$ CAPITALISM FROM ! />T & FROM :I* IT CANNOT ESCAPE )\T ABOLI%+ ITSELF4 ,?US IT IS ,ROSDOLSKY'S & ,M&EL'S UND]CONSUMPTION !ORY ?AT LEAD !M TO PROJECT A PROVISIONAL !ORETICAL ASSUMPTION1 US$ BY ,M>X TO ANALYZE ! PROCESS ( REPRODUCTION1 ONTO ! REAL PROCESS ( CIRCULATION4 ,?IS MISUND]/&+ W\LD HAVE BE5 SP>$ !M HAD !Y ANALYZ$ ACCUMULATION ) ! HELP ( ! !ORY ( VALUE4 #c ,:ILE ,M>X EXPLA9$ ALL ! FUNDAM5TAL PH5OM5A ( CAPITALISM ON ! BASIS ( ! LAW ( VALUE1 ,M&EL TAKES AS HIS />T+ PO9T SIX DI/9CT DEVELOPM5TAL T5D5CIES1 OR 0BASIC V>IABLES ( ! CAPITALI/ SY/EM4 ,HE EMPHASIZES 0?AT UP TO A C]TA9 PO9T ALL ! BASIC V>IABLES ( ?IS MODE ( PRODUCTION CAN P>TIALLY & P]IODICALLY P]=M ! ROLE ( AUTONOM\S V>IABLES - NATURALLY NOT TO ! PO9T ( COMPLETE 9DEP5D5CE BUT 9 AN 9T]PLAY CON/ANTLY >TICULAT$ ?R\< ! LAWS ( DEVELOPM5T ( ! :OLE CAPITALI/ MODE ( PRODUCTION0 7P4#c#i74 ,BY 0BASIC V>IABLES0 ,M&EL MEANS3 ! ORGANIC COMPOSITION ( CAPITAL 9 G5]AL & ( ! TWO DEP>TM5TS 7( PRODUC] GOODS & ( CONSUM] GOODS1 AS 9 ! REPRODUCTION S*EMA7 9 P>TICUL>2 ! DIVISION ( CON/ANT CAPITAL BETWE5 FIX$ & CIRCULAT+ CAPITAL1 AGA9 9 G5]AL & = ! TWO DEP>TM5TS SEP>ATELY2 ! DEVELOPM5T ( ! RATE ( SURPLUS VALUE2 ! DEVELOPM5T ( ! RATE ( ACCUMULATION2 ! DEVELOPM5T ( ! TURNOV] TIME ( CAPITAL2 & ! EX*ANGE RELATIONS L9K+ ! TWO DEP>TM5TS ( PRODUCTION4 ,! HI/ORY ( CAPITALISM1 & ITS LAW-GOV]N$ REGUL>ITY1 CAN1 ACCORD+ TO ,M&EL1 0ONLY BE EXPLA9$ & UND]/OOD AS A FUNCTION ( ! 9T]PLAY ( !SE SIX V>IABLES0 7P #c#i74 ,IT DOES NOT OCCUR TO HIM ?AT ) ?IS HE IS SAY+ ?AT ! HI/ORY & 9N] REGUL>ITY ( CAPITAL CAN ONLY BE UND]/OOD BY REF]5CE TO ! HI/ORY & 9N] REGUL>ITY ( CAPITAL4 ,! CONSEQU5CES ( ! PRODUCTION ( VALUE & SURPLUS VALUE %[ !MSELVES1 AMONG O!R WAYS1 9 ! PH5OM5A ( ACCUMULATION PICK$ \T BY ,M&EL1 ALL ( :I* >E GOV]N$ BY ! LAW ( VALUE & 9 ACCORDANCE ) IT >E MANIFE/$ BY FLUCTUATIONS 9 ! RATE ( PR(IT4 ,= ,M&EL1 H[EV]1 !SE FLUCTUATIONS 0>E ONLY RESULTS :I* MU/ !MSELVES BE EXPLA9$ BY ! 9T]PLAY ( ! V>IABLES0 7P4#c#i74 ,AGA91 IT DOES NOT OCCUR TO HIM ?AT HE IS EXPLA9+ ! PR(IT RATE BY ! RATE ( PR(IT :5 HE EXPLA9S ! HI/ORY & 9N] REGUL>ITY ( CAPITAL BY ITS HI/ORY & 9N] REGUL>ITY4 ,IT IS 9 ?IS WAY ?AT ,M&EL WI%ES TO BRIDGE ! GAP BETWE5 !ORY & REALITY4 ,AB/RACTLY CONSID]$1 ALL ! FUNDAM5TAL PH5OM5A ( CAPITAL FOLL[ FROM ! PO/ULATES ( ! VALUE !ORY4 ,BUT 9 REALITY1 ,M&EL ASSUMES1 ! V>I\S ASPECTS ( CAPITALI/ ACCUMULATION RESULT+ FROM ! LAW ( VALUE HAVE AUTONOM\S FUNCTIONS1 AT LEA/ AT TIMES1 & 9DEP5D5TLY 9FLU5CE ! PROCESS AS A :OLE4 ,!RE=E SPECIAL ATT5TION MU/ BE DEVOT$ TO !SE ASPECTS1 & !IR EFFECTS MU/ BE EMPIRICALLY 9VE/IGAT$4 ,?IS NATURALLY PRESUPPOSES A CRIT]ION BY :I* ! EMPIRICALLY DET]M9$ FACTS CAN BE MADE COMPREH5SIBLE & !IR CONNECTIONS ) O!R SU* FACTS EXHIBIT$4 ,= CAPITALISM ! !ORY ( VALUE IS ?IS CRIT]ION1 AS IT DEALS ) ! BASIC PRODUCTION RELATIONS ( ?IS SY/EM4 ,! VALUE ANALYSIS MAKES IT POSSIBLE TO DISCOV] ! G5]AL T5D5CY ( CAPITALI/ DEVELOPM5T FROM ANY P>TICUL> SET ( *ANGES 9 ,M&EL'S V>IABLES1 :ILE ! OBS]VATION ( !SE V>IABLES1 )\T APPLICATION ( ! VALUE ANALYSIS1 P]MITS NO CONCLUSION AB\T ! TR5D ( DEVELOPM5T BUT REMA9S ! M]E DESCRIPTION ( GIV5 CIRCUM/ANCES4 ,M&EL GIVES A FEW EXAMPLES TO DEMON/RATE ! CORRECTNESS ( HIS !SIS4 ,HE %[S ?AT ! RATE ( SURPLUS VALUE IS AT ALL TIMES A FUNCTION ( ! CLASS /RUGGLE4 0,TO SEE IT AS A ME*ANICAL FUNCTION ( ! RATE ( ACCUMULATION1 444 IS TO CONFUSE OBJECTIVE CONDITIONS :I* CAN LEAD TO A P>TICUL> RESULT 444 ) ! RESULT ITSELF4 ,:E!R OR NOT ! RATE ( SURPLUS-VALUE DOES 9 ACTUAL FACT RISE DEP5DS AMONG O!R ?+S ON ! DEGREE ( RESI/ANCE DISPLAY$ BY ! WORK+ CLASS TO CAPITAL'S EF=TS TO 9CREASE IT0 7P4#d74 0,O!R ?+S0 REF]S TO ! 9FLU5CE ON ! RATE ( SURPLUS VALUE ( ! 9DU/RIAL RES]VE >MY ( ! UNEMPLOY$4 ,?US = ,M&EL !RE >E 0NUM]\S V>IATIONS0 9 ! DET]M9ATION ( ! RATE ( SURPLUS VALUE1 AS 0CAN READILY BE SE5 FROM ! HI/ORY ( ! WORK+ CLASS & ! LABOR MOVEM5T OV] ! PA/ #ae YE>S40 ,BUT ?IS HI/ORY ALSO %[S ?AT ACCUMULATION1 DESPITE ITS 9T]RUPTION BY CRISIS1 WAS A CONT9U\S PROCESS ?AT PRESUPPOS$ AN ADEQUATE RATE ( SURPLUS VALUE & ?US CONFIRM$ ,M>X'S DICTUM ?AT 0! RATE ( ACCUMULATION IS ! 9DEP5D5T1 NOT ! DEP5D5T V>IABLE2 ! RATE ( WAGES IS ! DEP5D5T1 NOT ! 9DEP5D5T V>IABLE40 ,S9CE CAPITALISM /ILL EXI/S TODAY1 ! 0NUM]\S V>IATIONS0 9 ! DET]M9ATION ( SURPLUS VALUE HAVE DONE IT NO APP>5T H>M DUR+ ! LA/ #ae YE>S1 9 ANY CASE NOT ) RESPECT TO ITS DEVELOPM5TAL T5D5CY4 ,DESPITE ALL CLASS /RUGGLES ! RATE ( SURPLUS VALUE HAS REMA9$ SUFFICI5T = ACCUMULATION4 ,AS A 0P>TIALLY AUTONOM\S BASIC V>IABLE10 ! DEVELOPM5T ( ! RATE ( SURPLUS VALUE HAS HAD NO EFFECT4 ,ALL ?AT ,M&EL'S APPROA* ALL[S HIM IS TO FOLL[ ! HI/ORY ( ! CLASS /RUGGLE 9 ! CONTEXT ( SURPLUS-VALUE PRODUCTION - A HI/ORY ?AT PO9TS NOT TO ! LIMITS ( ACCUMULATION BUT TO ! LIMITS ( ! CLASS /RUGGLE )9 ! CAPITALI/ SY/EM4 ,IT WAS NOT ONLY BECAUSE ! OPACITY ( ! M>KET ECONOMY MAKES IT IMPOSSIBLE TO FOLL[ ! QUANTITATIVE *ANGES 9 ! RATE ( SURPLUS VALUE & !IR EMPIRICAL CONSEQU5CES = ! PROCESS ( ACCUMULATION ?AT ,M>X DEVELOP$ HIS !ORY ( ACCUMULATION ON ! ASSUMPTION ?AT ! VALUE ( LABOR P[] IS ALWAYS DET]M9$ BY ITS CO/S ( PRODUCTION & REPRODUCTION4 ,:ILE 9 REALITY ! WAGE CAN LIE ABOVE OR BEL[ ! VALUE ( LABOR P[]1 IT CAN NEV] - )\T CALL+ CAPITALI/ SOCIETY ITSELF 9TO QUE/ION - DEPRESS ! SURPLUS VALUE BEL[ ! LEVEL REQUIR$ = CAPITAL ACCUMULATION4 ,?IS LIMIT ( WAGE =MATION IS NOT ONLY DET]M9$ BY ! SUPPLY & DEM& ( LABOR P[]1 & ?US REGULAT$ BY ACCUMULATION1 BUT IS ALSO DET]M9$ BY ! FACT ( CAPITALI/ CONTROL ( ! MEANS ( PRODUCTION4 ,?US ! 0NUM]\S V>IATIONS0 9 ! =MATION ( SURPLUS VALUE PRODUC$ BY ! CLASS /RUGGLE CAN BE AB/RACT$ FROM 9 DESCRIB+ ! ACCUMULATION PROCESS )\T ! DESCRIPTION !REBY LOS+ ITS REALISM4 ,TO GO 9TO ONE MORE ( ! EXAMPLES ,M&EL (F]S1 0! RATE ( GR[? ( ! ORGANIC COMPOSITION ( CAPITAL0 CANNOT1 ACCORD+ TO ,M&EL1 BE REG>D$ SIMPLY AS A FUNCTION ( TE*NOLOGICAL PROGRESS >IS+ FROM COMPETITION4 ,?IS TE*NICAL PROGRESS DOES ADMITT$LY CAUSE LIV+ LABOR TO BE REPLAC$ BY DEAD LABOR 9 ORD] TO R$UCE CO/S44 44 ,BUT44 4 CON/ANT CAPITAL IS COMPRIS$ ( TWO P>TS3 A FIX$ P>T 444 & A CIRCULAT+ P>T4444 ,! RAPID GR[? ( FIX$ CAPITAL & ! RAPID 9CREASE 9 ! SOCIAL PRODUCTIVITY ( LABOR ?AT RESULTS FROM IT1 /ILL TELL US NO?+ DEF9ITE AB\T ! T5D5CIES ( ! DEVELOPM5T ( ! ORGANIC COMPOSITION ( CAPITAL4 ,= IF ! PRODUCTIVITY ( LABOR GR[S MORE RAPIDLY 9 ! SECTOR ?AT PRODUCES RAW MAT]IALS ?AN 9 ! SECTOR PRODUC+ CONSUM] GOODS1 !N CIRCULAT+ CON/ANT CAPITAL WILL BECOME RELATIVELY *EAP] ?AN V>IABLE CAPITAL1 & ?IS WILL ULTIMATELY LEAD TO A SITUATION 9 :I* ! ORGANIC COMPOSITION ( CAPITAL DESPITE ACCEL]AT$ TE*NOLOGICAL PROGRESS & DESPITE ACCEL]AT$ ACCUMULATION ( SURPLUS-VALUE 9 FIX$ CAPITAL WILL GR[ MORE SL[LY & NOT MORE RAPIDLY ?AN BE=E 7P4 #d#a1 TRANSLATION CORRECT$74 ,:AT1 REALLY1 IS ,M&EL SAY+ H]E8 0,CON/ANT CAPITAL0 9CLUDES BO? FIX$ & CIRCULAT+ CAPITAL4 ,! ORGANIC COMPOSITION ( CAPITAL1 ACCORD+ TO ,M>X1 IS 0! VALUE-COMPOSITION ( CAPITAL1 9 SO F> AS IT IS DET]M9$ BY ITS TE*NICAL COMPOSITION & MIRRORS ! *ANGES 9 ! LATT]40 ,IT IS CLE> ?AT ! *EAP5+ ( ! RAW MAT]IALS 5T]+ 9TO CON/ANT CAPITAL1 ACCOMPLI%$ BY AN 9CREASE 9 ! PRODUCTIVITY ( LABOR1 CAN ALT] ! VALUE RELATION BETWE5 CON/ANT & V>IABLE CAPITAL & !REBY SL[ D[N ! GR[? ( ! ORGANIC COMPOSITION4 ,?IS1 H[EV]1 DOES NOT MAKE ! ORGANIC COMPOSITION A 0P>TIALLY AUTONOM\S V>IABLE0 BUT ONLY MEANS ?AT CAPITAL CAN ACCUMULATE ) A MORE ADVANTAGE\S ORGANIC COMPOSITION4 ,S9CE ?IS IS ! CASE 9 G5]AL :5EV] CAPITAL IS ACCUMULAT+1 ,M&REL 9 REALITY IS SAY+ NO?+ AT ALL4 #d ,!SE MEAN+LESS EX]CISES >E NECESS>Y1 ACCORD+ TO ,M&EL1 TO DEAL ADEQUATELY ) ! 0?IRD PHASE0 ( CAPITALI/ DEVELOPM5T1 OR 0LATE CAPITALISM40 ,ONLY /UDY ( ! 09DEP5D5T V>IATIONS ( ! MAJOR V>IABLES ( ,M>X'S SY/EM0 7P4#d#b1 TRANSLATION CORRECT$7 WILL MAKE IT POSSIBLE TO UND]/& ! SUCCESSIVE PHASES ( ! HI/ORY ( CAPITALISM4 ,= ,M&EL 0! CAPITALI/ WORLD SY/EM IS TO A SIGNIFICANT DEGREE PRECISELY A FUNCTION ( ! UNIV]SAL VALIDITY ( ! LAW ( UNEQUAL & COMB9$ DEVELOPM5T0 7P4#b#c74 ,IT IS TRUE1 ( C\RSE1 ?AT CAPITALISM DEVELOP$ FIR/ 9 C]TA9 C\NTRIES & ?AT ?IS SUBJECT$ ! WORLD ECONOMY TO AN UNEQUAL DEVELOPM5T4 ,! CAPITALI/ 09T]NATIONAL DIVISION ( LABOR10 TOGE!R ) ! CONC5TRATION & C5TRALIZATION ( CAPITAL ?AT ACCOMPANY ACCUMULATION1 HAVE DIVID$ ! WORLD 9TO CAPITALI/ICALLY DEVELOP$ & UND]DEVELOP$ C\NTRIES4 ,BUT TO SAY ?IS IS ONLY TO SAY ?AT ! 0LAW ( UNEQUAL & COMB9$ DEVELOPM5T0 SIGNIFIES NO MORE ?AN ! DEVELOPM5T ( CAPITALISM4 ,FOLL[+ A SURVEY ( ! E>LI] DEVELOPM5T ( WORLD CAPITAL1 :I* WAS CONSECRAT$ TO ! BLOCK+ ( CAPITALI/ DEVELOPM5T 9 ! DOM9AT$ C\NTRIES & TO ! SATISFACTION ( ! PR(IT & ACCUMULATION NE$S ( ! IMP]IALI/ C\NTRIES1 ,M&EL CONCLUDES ?AT PRES5T-DAY CAPITALISM HAS SE5 0A *ANGE 9 ! =MS ( JUXTAPOSITION ( DEVELOPM5T & UND]DEVELOPM5T10 & ?AT 0NEW DIFF]5TIAL LEVELS ( CAPITAL ACCUMULATION1 PRODUCTIVITY & SURPLUS EXTRACTION >E EM]G+1 :I* AL?\< NOT ( ! SAME NATURE1 >E /ILL MORE PRON\NC$ ?AN ?OSE ( ! 'CLASSIC IMP]IALI/ EPO*0 7P4#f#e74 ,9 LATE CAPITALISM ! %>E ( ! UND]DEVELOP$ C\NTRIES 9 WORLD TRADE IS DECL9+1 SO ?AT !Y >E BECOM+ POOR] 9 COMP>ISON ) ! IMP]IALI/ NATIONS4 ,AS ,M&EL EXPLA9S IT1 ! IMP]IALI/ C\NTRIES DEP5D ON ! RAW MAT]IALS ( ! UND]DEVELOP$ C\NTRIES & ON ! DECL9E 9 !IR PRICES1 :I* LEADS TO A RELATIVE DECL9E 9 ! VALUE ( ?OSE RAW MAT]IALS4 ,BUT S9CE1 ACCORD+ TO ,M&EL1 ! %>E ( ! UND]DEVELOP$ C\NTRIES 9 WORLD TRADE IS DIM9I%+1 ?IS MU/ EXPRESS IMP]IALISM'S DECREAS+ DEP5D5CE ON ! RAW MAT]IALS ( ! POOR NATIONS1 :I* LEADS TO ! DROP 9 !IR PRICES4 ,M&EL IS H[EV] NOT SATISFI$ ) ?IS OBS]VATION2 HE WANTS TO BR+ IT 9TO CONNECTION ) ! WORK+S ( ! LAW ( VALUE ON ! WORLD M>KET1 P>TICUL>LY BECAUSE ,M>X 0DID NOT ANALYZE IT SY/EMATICALLY 9 ,CAPITAL0 7P4#g#a74 ,ON ! BASIS ( ! LOGIC ( ,M>X'S !ORY1 AS ,M&EL 5L>GES ON IT1 0UND] ! CONDITIONS ( ! CAPITALI/ RELATIONS ( PRODUCTION1 UNI=M PRICES ( PRODUCTION 7I4E41 A WIDE-RANG+ EQUALIZATION ( RATES ( PR(IT7 ONLY EM]GE )9 NATIONAL M>KETS44 ,& 0! LAW ( VALUE W\LD ONLY LEAD TO UNI=M PRICES ALL OV] ! WORLD IF !RE HAD BE5 A G5]AL 9T]NATIONAL EQUALIZATION ( ! RATE ( PR(IT AS A RESULT ( ! COMPLETE 9T]NATIONAL MOBILITY ( CAPITAL & ! DI/RIBUTION ( CAPITAL OV] ALL P>TS ( ! WORLD 4440 7P4#g#a74 ,N[ ,M>X'S !ORETICAL TRANS=MATION ( VALUES 9TO PRICES ( PRODUCTION CONC]NS NOT AN ACTUAL M>KET1 :E!R NATIONAL OR 9T]NATIONAL1 BUT HIS AB/RACT MODEL ( A CLOS$ CAPITALI/ ECONOMY4 ,IT REPRES5TS HIS SOLUTION TO ! QUE/ION ( H[ ! LAW ( VALUE OP]ATES DESPITE ! FACT ?AT GOODS >E NOT EX*ANG$ 9 RATIOS DET]M9$ BY !IR VALUES4 ,CAPITALI/S CONFRONT NOT VALUES BUT CO/ PRICES1 :I* REF] TO ! UNKN[N LABOR-TIME QUANTITIES CONTA9$ 9 !M4 ,! PRICE ( PRODUCTION DEVIATES FROM ! VALUE1 S9CE IT IS DET]M9$ ONLY BY ! PAID LABOR1 ?US BY ! CO/ PRICE1 PLUS ! SOCIALLY AV]AGE RATE ( PR(IT4 ,A FUR!R COMPLICATION-! FACT ?AT ! CO/ PRICES CONTA9 ALREADY REALIZ$ PR(IT1 SO ?AT ! PRICE ( PRODUCTION ( ONE BRAN* ( 9DU/RY 5T]S 9TO ! CO/ PRICE ( ANO!R BRAN* HAS ! RESULT ?AT ! DET]M9ATION ( PRICE BY VALUE IS EV5 MORE OBSCUR$4 ,IF WE NEV]!LESS WANT TO PROVE ?AT PRICE IS GOV]N$ BY VALUE1 ?IS REQUIRES A M5TAL EXP]IM5T R$UC+ ! TANGLE ( PRICE RELATIONS TO ! DIVISION ( TOTAL PRODUCTION 9TO VALUE & SURPLUS VALUE4 ,= ! ANALYSIS ( SOCIAL PRODUCTION AS A :OLE1 ! DIFF]5T ORGANIC COMPOSITIONS1 RATES ( SURPLUS VALUE1 & PR(IT RATES ( ! 9DIVIDUAL CAPITALS & BRAN*ES ( 9DU/RY >E IRRELEVANT4 ,TOTAL PRODUCTION HAS A DEF9ITE MAGNITUDE ?AT IS DET]M9$ BY ! TOTAL LABOR TIME4 ,IT HAS REPRODUC$ ! VALUE IT HAS CONSUM$ & HAS YIELD$ A C]TA9 QUANTITY ( SURPLUS VALUE4 ,! DI/RIBUTION ( ?IS SURPLUS VALUE AMONG ! DIFF]5T CAPITALS CAN NEI!R 5L>GE NOR DIM9I% IT4 ,! LEVEL ( ! RATE ( PR(IT DEP5DS ON ! RATIO ( ! TOTAL SURPLUS VALUE TO ! TOTAL CAPITAL & ?US DEP5DS ON ! ORGANIC COMPOSITION ( ! TOTAL CAPITAL4 ,?IS 9 TURN IS EQUAL TO ! AV]AGE ( ! V>I\S ORGANIC COMPOSITIONS ( ! DIFF]5T CAPITALS4 ,IF ! ORGANIC COMPOSITION ( A P>TICUL> CAPITAL IS ! SAME AS ! AV]AGE COMPOSITION ( ! TOTAL CAPITAL1 ITS PR(IT WILL BE EQUIVAL5T TO ITS SURPLUS VALUE4 ,:]E ?IS IS NOT ! CASE1 PR(IT & SURPLUS VALUE MU/ DIFF] FROM EA* O!R4 ,S9CE PR(IT GOV]NS ! MOVEM5T ( CAPITAL1 CAPITALI/ COMPETITION EFFECTS ! MIGRATION ( CAPITAL FROM BRAN*ES ( 9DU/RY POOR 9 PR(IT TO ?OSE RI* 9 PR(IT 7:5CE >ISES ! T5D5CY TO ! =MATION ( AN AV]AGE RATE ( PR(IT74 ,?IS MEANS 9 PRACTICE ?AT SOME COMMODITIES >E SOLD AT PRICES OV] & O!RS AT PRICES UND] ! VALUE !Y CONTA94 ,?IS 9 NO WAY ALT]S ! DET]M9ATION ( ! VALUE ( EV]Y COMMODITY BY ! LABOR TIME SOCIALLY NECESS>Y = ITS PRODUCTION4 ,BUT ! DI/RIBUTION ( ! TOTAL VALUE EFFECT$ BY ! M>KET ME*ANISM1 :I* PRODUCES ! AV]AGE PR(IT RATE1 *ANGES !SE LABOR-TIME VALUES 9TO PRICES ( PRODUCTION4 ,)\T GO+ MORE DEEPLY 9TO ! COMPLICAT$ QUE/ION ( ! =MATION ( AN AV]AGE PR(IT RATE1 IT %\LD NONE!LESS BE SAID ?AT 9 ! REAL WORLD ! PROCESS DEPICT$ 9 ,M>X'S MODEL 0ACTS AS ! PREVAIL+ T5D5CY ONLY 9 A V]Y COMPLICAT$ & APPROXIMATE MANN]1 AS A NEV] ASC]TA9ABLE AV]AGE ( CEASELESS FLUCTUATIONS40 ,! DEVIATIONS FROM VALUE EXPRESS$ 9 ! PRODUCTION PRICE CANCEL EA* O!R1 SO ?AT = ! TOTAL CAPITAL ! SUM ( ! PRODUCTION PRICES EQUALS ! TOTAL VALUE4 ,! 9T]MIXTURE ( PRICES ( PRODUCTION ) ! CO/ PRICES CAN ALSO NOT AFFECT ?IS EQUALITY ( ! AGGREGATES4 ,! CONCEPTUAL SEP>ATION ( ! CO/ PRICES FROM ! PRICES ( PRODUCTION ?AT HAVE 5T]$ 9TO !M YIELDS ! TOTAL CO/ PRICE1 :I* CAN !N BE COMP>$ ) ! TOTAL PR(IT4 ,:ILE ?IS IS 9 PRACTICE IMPOSSIBLE1 IT IS A !ORETICAL POSSIBILITY1 JU/ BECAUSE ! PRICES ( PRODUCTION >E CON/ITUT$ ( TWO DI/9CT ELEM5TS1 ! CO/ PRICES PLUS ! AV]AGE RATE ( PR(IT4 ,9 ANY CASE1 H[EV] ! TOTAL SURPLUS VALUE PRODUC$ BY ! TOTAL SOCIAL CAPITAL MAY BE DIVID$ UP1 IT CAN BE DISSOCIAT$ NO MORE FROM ! LABOR-TIME RELATIONS ( SURPLUS-VALUE PRODUCTION ?AN FROM ! PROCESS ( PRODUCTION GOV]N$ BY LABOR TIME 9 G5]AL4 ,CAPITAL1 9 ,M>X'S WORDS1 IS 9 & = ITSELF 9DIFF]5T TO ! P>TICUL> NATURE ( EV]Y SPH]E ( PRODUCTION1 :]E IT IS 9VE/$1 H[ IT IS 9VE/$1 & TO :AT EXT5T IT IS TRANSF]R$ FROM ONE SPH]E ( PRODUCTION TO ANO!R OR R$I/RIBUT$ AMONG ! V>I\S SPH]E ( PRODUCTION - ALL ?IS IS DET]M9$ ONLY BY ! GREAT] EASE OR DIFFICULTY ( SELL+ ! COMMODITIES MANUFACTUR$4 ,?R\< !SE MIGRATIONS ! AV]AGE RATE ( PR(IT IS =M$ BEH9D ! BACKS ( ! CAPITALI/S1 AS A FUNCTION ( ! TOTAL PRODUCTION1 ( :I* !Y >E IGNORANT1 & ( ! TOTAL SURPLUS VALUE !Y HAVE PRODUC$4 ,AL?\< ! LAW ( VALUE DOES NOT OP]ATE DIRECTLY ON ! LEVEL ( 9DIVIDUAL COMMODITIES1 IT NEV]!LESS CONT9UES TO GOV]N PRODUCTION & EX*ANGE1 IF 9 AN 9DIRECT MANN]1 ?R\< ! SOCIAL *>ACT] ( SURPLUS-VALUE PRODUCTION4 ,CAPITAL EXP]I5CES ITS REALITY 9 ! FALL 9 ! AV]AGE RATE ( PR(IT1 :5 ! SOCIAL SURPLUS VALUE NO LONG] MEETS ! REQUIREM5TS ( ACCUMULATION4 ,IT IS MANIFE/$ 9 ! FALL & RISE 9 ! G5]AL LEVEL ( ! PRICES ( PRODUCTION DUE TO ! 9CREAS+ OR DECREAS+ PRODUCTIVITY ( LABOR4 ,IT APPE>S1 FUR!RMORE1 ON ! T]RA9 ( ! M>KET 9 ! SUP]FICIAL =M ( ! 9T]PLAY ( SUPPLY & DEM&1 & CAPITALI/ REACTIONS TO !SE M>KET PH5OM5A MU/1 H[EV] BL9DLY1 R$UCE ?IS 9T]PLAY TO ! VALUE RELATIONS UND]LY+ IT 9 ORD] TO HAVE ANY EFFECT ON ! WORLD ( APPE>ANCE4 ,AL?\< ,M>X'S MODEL ( ! =MATION ( ! G5]AL RATE ( PR(IT CORRESPONDS TO REALITY1 ?IS IS ONLY BECAUSE EV]Y CAPITAL MU/ /RIVE TO 9CREASE ITS CAPITAL 9 ORD] TO MA9TA9 IT2 TO ?IS 5D IT MU/ SEEK TO REA* AT LEA/ ! AV]AGE PR(IT RATE4 ,! AV]AGE RATE ( PR(IT PRESUPPOSES ! EXI/5CE ( DIFF]5T RATES ( PR(IT1 :I* APPE> 9 PRACTICE AS EXCESS PR(ITS OR AS BEL[-AV]AGE PR(ITS4 ,9 ! C\RSE ( DEVELOPM5T ! EXCESS PR(ITS >E LO/ ?R\< COMPETITION1 & CAPITALS ?AT PROVE TO BE UNPR(ITABLE DISAPPE>1 ONLY TO LEAVE ! FIELD TO CAPITALS ) NEW DIFF]5TIAL RATES ( PR(IT1 :I* 9 TURN SUCCUMB TO ! T5D5CY TO !IR EQUALIZATION4 ,!RE >E ALSO 0PAUSES0 DUR+ :I* ! AV]AGE PR(IT RATES /ABILIZE1 MORE OR LESS1 & APPE> TO HAVE DEF9ITE MAGNITUDE4 ,! =EGO+ %\LD BE 5\< TO 9DICATE ?AT ! =MATION ( ! AV]AGE RATE ( PR(IT & PRODUCTION PRICES >E NOT PROCESSES SPECIFIC TO ! 0NATIONAL0 OR ! 09T]NATIONAL0 M>KET BUT >E FEATURES ( ! CAPITALI/ MODE ( PRODUCTION AS SU*4 ,= ,M&EL1 H[EV]1 IT IS A 0FACT ?AT NO EQUALIZATION ( ! RATES ( PR(IT OCCURS ON ! WORLD M>KET1 :]E DIFF]5T NATIONAL PRICES ( PRODUCTION 7AV]AGE RATES ( PR(IT7 EXI/ SIDE BY SIDE & >E >TICULAT$ ) ONE ANO!R BY MEANS ( ! WORLD M>KET 9 A P>TICUL> MANN]4440 7P4 #ce #a1 TRANSLATION CORRECT$74 ,!SE PRICES ( PRODUCTION1 UNI=M ONLY )9 0NATIONAL0 M>KETS1 REPRES5T1 ACCORD+ TO ,M&EL1 ! 0SPECIFIC EFFECT ( ! LAW ( VALUE ON ! 9T]NATIONAL LEVEL10 AS 0IT IS BAS$ ON NATIONALLY DIFF]5TIAT$ LEVELS ( ! PRODUCTIVITY OR 9T5SITY ( LABOR444 NATIONALLY DIFF]5TIAT$ ORGANIC COMPOSITIONS ( CAPITAL1 NATIONALLY DIFF]5TIAT$ RATES ( SURPLUS-VALUE1 & SO ON0 7P4#g#a74 ,S9CE ! CAPITALI/ M>KET IS ! WORLD M>KET1 IT IS 9COMPREH5SIBLE :Y ! =MATION ( ! AV]AGE RATE ( PR(IT %\LD CALL A HALT AT NATIONAL BORD]S1 ) EV]Y NATION =M+ ITS [N AV]AGE RATE ( PR(IT4 ,! FACT ?AT ! NATIONAL COMPOSITIONS ( CAPITAL1 !IR RATES ( EXPLOITATION1 ETC41 >E DIFF]5T 9 NO WAY ALT]S ! FACT ?AT ! SURPLUS VALUE ( WORLD PRODUCTION IS DIV UP ?R\< WORLD M>KET RELATIONS EXACTLY LIKE ?AT ( ! NATIONAL ECONOMY1 NAMELY BY WAY ( ! COMPETITIVELY DET]M9$ =MATION ( PRICES1 :I* >E ULTIMATELY REGULAT$ BY ! UNKN[N QUANTITY ( TOTAL SURPLUS VALUE PRODUC$4 ,& EXACTLY AS 9 ! NATIONAL FRAMEWORK IT IS POSSIBLE = A :ILE TO AVOID A L[ OR FALL+ AV]AGE RATE ( PR(IT BY A MONOPOLI/IC )DRAWAL FROM COMPETITION1 IT IS ALSO POSSIBLE 9 ! 9T]NATIONAL CONTEXT TO TAKE /EPS AGA9/ ! DET]M9ATION ( PRICES BY COMPETITION BY BAIL+ \T ( 9T]NATIONAL COMPETITION4 ,BO? CASES1 H[EV]1 9VOLVE MEASURES ?AT 9 !MSELVES 9DICATE ! T5D5CY TO =MATION ( AN 9T]NATIONAL AV]AGE RATE ( PR(IT4 ,9 HIS CRITIQUE ( ! CLASSICAL !ORY ( VALUE1 ,M>X ASK H[ IT IS POSSIBLE TO MAKE PR(ITS DESPITE ! EX*ANGE ( EQUAL VALUES4 ,HE ANSW]$ ?IS QUE/ION BY PO9T+ TO ! D\BLE *>ACT] ( LABOR P[] AS HAV+ AT ONCE USE VALUE & EX*ANGE VALUE4 ,GIV5 ?IS HE C\LD %[ ?AT PR(IT >ISES NOT FROM CIRCULATION OR TRADE BUT FROM PRODUCTION ON ! BASIS ( CAPITALI/ RELATIONS ( PRODUCTION4 ,?IS MU/ HOLD = ! WORLD M>KET AS WELL4 ,! PR(ITS WON H]E MU/ OBJECTIVELY BE D]IV$ FROM LABOR-TIME RELATIONS4 ,JU/ AS 9 ! 0NATIONAL0 FRAMEWORK PR(IT >ISES FROM SURPLUS VALUE1 ! PR(IT ( WORLD TRADE CAN ONLY >ISE FROM ! SURPLUS VALUE ( WORLD PRODUCTION4 ,BUT H[ IS IT POSSIBLE1 DESPITE ! L[] PRODUCTIVITY ( LABOR 9 ! CAPITALI/ICALLY UND]DEVELOP$ C\NTRIES1 TO EXTRACT FROM !M ! SAME OR A L>G] SURPLUS VALUE ?AN IS CREAT$ 9 ! CAPITALI/ICALLY DEVELOP$ C\NTRIES1 ) !IR HI<] PRODUCTIVITY ( LABOR8 ,! ANSW] IS ?AT 9 ?IS CASE MORE LABOR IS EX*ANG$ = LESS1 ! DEVELOP$ C\NTRY H&+ OV] A SMALL] VALUE = A GREAT] ONE FROM ! UND]DEVELOP$ NATION4 ,?IS IS ,M&EL'S EXPLANATION ALSO1 BUT HE WRITES AS ?\< ! UNEQUAL EX*ANGE OP]ATES DIRECTLY ON ! LEVEL ( LABOR TIME4 ,9 REALITY1 ( C\RSE1 IT CAN ONLY BE ACCOMPLI%$ BY ! DET\R ( ! M>KET & IS !REBY SUBORD9AT$ TO 9T]NATIONAL COMPETITION & ! =MATION ( AN 9T]NATIONAL AV]AGE RATE ( PR(IT4 ,! AV]AGE RATE ( PR(IT1 9TO :I* ALL PR(ITS 5T]1 REGULATES ! PRICES ( PRODUCTION =M$ BY COMPETITION4 ,9 ?IS WAY ! TOTAL SURPLUS VALUE IS DI/RIBUT$ )\T REG>D = P>TICUL> SPH]ES ( PRODUCTION 9 ! 0NATIONAL0 FRAMEWORK OR )9 ! WORLD ECONOMY1 NOT 9 ! PROPORTIONS 9 :I* IT HAS BE5 PRODUC$ BY ! 9DIVIDUAL CAPITALS BUT 9 PROPORTIONS DET]M9$ BY ! EXI/5CE & ACCUMULATION ( CAPITAL AS A :OLE4 ,JU/ BECAUSE ! T5D5CY TO ! =MATION ( AN AV]AGE RATE ( PR(IT OP]ATES ON ! WORLD M>KET1 ! UNEQUAL DI/RIBUTION ( SURPLUS VALUE1 OR UNEQUAL EX*ANGE1 >ISES )9 EA* NATIONAL ECONOMY & ON ! GLOBAL LEVEL4 ,ACCORD+ TO ,M&EL ! LAW ( VALUE IS MODIFI$ ON ! WORLD M>KET BECAUSE ( ! DIFF]5CE 9 COMMODITY VALUES RESULT+ FROM ! DIFF]5TIAL PRODUCTIVITY ( LABOR4 ,C\NTRIES ) L[] LABOR PRODUCTIVITY YIELD O!R COMMODITY VALUES & O!R AV]AGE RATES ( PR(IT ?AN C\NTRIES ) HI<] LABOR PRODUCTIVITY & ALL[ ! LATT] TO W9 SURPLUS PR(ITS 9 TRADE ) ! =M]4 ,?IS P>TICUL> =M ( EXPLOITATION1 TO FOLL[ ,M&EL1 IS BAS$ ON ! DIFF]5CE 9 COMMODITY VALUES1 AS A RESULT ( :I* ! PRODUCT ( A DAY'S WORK 9 A DEVELOP$ NATION 0IS EX*ANG$ = ! PRODUCT ( MORE ?AN A DAY'S WORK 9 AN UND]DEVELOP$ C\NTRY0 7P4#g#b74 ,BUT S9CE ! PRODUCTIVITY IS DIFF]5T 9 ! TWO C\NTRIES1 IT IS OBVI\S ?AT IF A WORK+ DAY ( ONE W]E EX*ANG$ AGA9/ A WORK+ DAY ( ! O!R1 ! LESS PRODUCTIVE C\NTRY W\LD EXPLOIT ! MORE PRODUCTIVE4 ,IF CAPITAL P5ETRATES CAPITALI/ICALLY BACKW>D C\NTRIES1 !N PRODUCTS ( L[] LABOR PRODUCTIVITY WILL BE EX*ANG$ = PRODUCTS ( HI<] LABOR PRODUCTIVITY1 :I* CAN ONLY MEAN ?AT MORE LIV+ LABOR MU/ BE GIV5 UP 9 EX*ANGE = LESS LIV+ LABOR1 IF ! EX*ANGE IS TO BE EQUITABLE TO BO? P>TIES4 ,BUT SU* AN EX*ANGE DOES NOT MEAN ?AT ! DEVELOP$ C\NTRY HAS EXPLOIT$ ! UND]DEVELOP$ ONE4 ,IT MEANS ONLY ?AT RELATIVE SURPLUS VALUE IS NOT ! SAME AS ABSOLUTE SURPLUS VALUE S9CE IT P]MITS ! PRODUCTION ( A GREAT] SURPLUS VALUE ) LESS DIRECT LABOR TIME4 ,?IS HI<] SURPLUS VALUE IS PRECIPITAT$ 9 ! PRICES ( PRODUCTION & DET]M9ES ! LABOR-TIME EQUIVAL5TS1 EXPRESS$ 9 ABSOLUTE SURPLUS VALUE1 AGA9/ :I* !Y MU/ BE EX*ANG$4 ,BUT S9CE ! PRODUCTIVITY ( ! DEVELOP$ C\NTRIES IS MANY TIMES GREAT] ?AN ?AT ( ! UND]-DEVELOP$ C\NTRIES1 ! =M] CAN USE ! *ANNELS ( TRADE TO CRU% ANY ATTEMPT ( ! LATT] TO COMPETE AGA9/ !M1 :I* CAN BE SE5 9 ! DE/RUCTION ( ! M9OR 9DU/RIES & >TISANRY EXI/+ 9 ! UND]DEVELOP$ WORLD4 ,EV5 ?IS DOES NOT IMPLY EXPLOITATION ( ! UND]DEVELOP$ BY ! DEVELOP$ C\NTRIES BUT HEIIS+1 & ?US CREATE ADDITIONAL M>KETS = !MSELVES4 ,S9CE ! DET]M9ATION ( VALUE BY SOCIALLY NECESS>Y LABOR TIME OP]ATES ON ! WORLD M>KET1 ! UND]DEVELOP$ C\NTRIES MU/1 :5 !Y EX*ANGE ) ! DEVELOP$ C\NTRIES1 GIVE MORE USE VALUE = LESS EX*ANGE VALUE1 MORE PRODUCTS = FEW] PRODUCTS1 OR MORE LABOR TIME = LESS LABOR TIME4 ,! COMMODITIES ( ! C\NTRIES ) A L[] PRODUCTIVITY ( LABOR CONTA9 LABOR TIME 9 EXCESS ( ?AT SOCIALLY NECESS>Y1 BUT :I* NONE!LESS 5T]S 9TO EX*ANGE4 ,TO EXPLA9 UNEQUAL COMMODITY EX*ANGE1 !RE=E1 DOES NOT REQUIRE REF]5CE TO 0NATIONAL COMMODITY VALUES1 AV]AGE RATES ( PR(IT1 & PRICES ( PRODUCTION10 S9CE ON ! BASIS ( ! LAW ( VALUE NO O!R SORT ( EX*ANGE CAN TAKE PLACE4 ,BECAUSE ! BACKW>D C\NTRIES POSSESS$ NO 9DU/RIES1 !IR EX*ANGE ) EA* O!R & ) ! 9DU/RIAL NATIONS ( ! ,WE/ WAS LIMIT$ FROM ! />T TO FOOD/UFFS & RAW MAT]IALS4 ,! 5TRANCE ( DEVELOP$ 9DU/RY 9TO ! UND]DEVELOP$ C\NTRIES EXCLUD$ = ! LATT] ! DEVELOPM5T ( !IR [N 9DU/RIES & ?US PRES]V$ !IR PRECAPITALI/ SOCIAL RELATIONS4 ,! COMPETITION BETWE5 CAPITALI/ NATIONS IS PURSU$ BY R$UC+ PRODUCTION CO/S1 SO ?AT !Y >E ALL 9T]E/$ 9 *EAP RAW MAT]IALS & FOOD/UFFS4 ,AL?\< AGRICULTURAL PRODUCTIVITY 9 ! BACKW>D C\NTRIES IS ALSO L[] ?AN 9 ! CAPITALI/ C\NTRIES1 ! 0PRICE SCISSORS0 BETWE5 F9I%$ GOODS & RAW MAT]IALS /ILL MAKES IT PR(ITABLE = ! CAPITALI/ C\NTRIES TO OBTA9 A L>GE P>T ( ! FOOD & RAW MAT]IAL !Y NE$ FROM !IR COLONIES OR SEMI-COLONIES ,9S(> AS ! IMPORT$ RAW MAT]IALS & FOOD/UFFS L[] ! DEVELOP$ C\NTRIES' CO/S ( PRODUCTION1 ?IS SITUATION CONTRIBUTES TO ! ACCUMULATION ( CAPITAL4 ,S9CE ! USE-VALUE ASPECT ( PRODUCTION CANNOT BE IGNOR$1 CAPITAL WILL GO TO ! BACKW>D C\NTRIES = FOOD/UFFS & RAW MAT]IALS EV5 :5 !Y >E MORE EXP5SIVE ?AN ?OSE PRODUC$ 9 ITS [N C\NTRY4 ,) ! GR[? ( 9DU/RY AGRICULTURAL PRODUCTION DECL9ES1 & !RE >E C\NTRIES ?AT C\LD NOT EXI/ )\T IMPORTS ( RAW MAT]IALS & FOOD4 ,S9CE CAPITALI/ DEM& CAN RAISE ! PRICES = !SE COMMODITIES1 ! EXT5SION ( ! WORLD M>KET APPE>S ALSO AS A PROCESS ( COLONIZATION PURSU$ 9 ORD] TO SUBJECT PRICE =MATION TO MONOPOLI/IC CONTROL4 ,! COLONIZ+ NATIONS SEEK NOT ONLY TO PROTECT !IR [N EXPORT M>KETS FROM 9T]NATIONAL COMPETITION1 BUT ALSO TO ACCOMMODATE ! =MATION ( ! PRICES ( COLONIAL EXPORT GOODS TO !IR [N ACCUMULATION REQUIREM5TS4 ,?US !Y MU/ ON ! ONE H& H9D] ! 9DU/RIAL DEVELOPM5T ( ! COLONIES & ON ! O!R SEEK TO MAKE ! MONOPOLI/IC EX*ANGE AS PR(ITABLE AS POSSIBLE BY *EAP5+ ! GOODS PRODUC$ 9 ! COLONIES4 ,!Y ?US 9T]F]E 9 ! CAPITALI/ M>KET ME*ANISM 9 ORD] TO KEEP A PORTION ( ! TOTAL SURPLUS VALUE \T ( COMPETITION4 ,BUT ! SURPLUS VALUE EXTRACT$ FROM ! COLONIES 5T]S 9TO ! PR(IT RATES ( ! IMP]IALI/IC C\NTRIES & !RE BECOMES A FACTOR 9 ! =MATION ( ! AV]AGE RATE ( PR(IT4 ,IT IS ONLY BY ?IS DET\R ?R\< ! ECONOMIC RELATIONS ( ! DEVELOP$ C\NTRIES ?AT ! UND]DEVELOP$ L&S >E DRAWN 9TO ! WORLD M>KET & !REBY 9TO CAPITALI/ COMPETITION4 ,?IS IS ALREADY APP>5T 9 ! FACT ?AT ! GREAT] P>T ( PRODUCTION 9 ! UND]DEVELOP$ C\NTRIES WAS DONE \TSIDE ( ! CAPITALI/ SY/EM & WAS DIRECTLY CONSUM$4 ,?IS SUBSI/5CE ECONOMY HAD LITTLE TO DO ) ! M>KET & MONEY ECONOMY4 ,BUT :]E NO SURPLUS VALUE IS PRODUC$1 WE CANNOT SPEAK ( ! =MATION ( AN AV]AGE RATE ( PR(IT4 ,!SE C\NTRIES >E ONLY SL[LY DRAWN BY IMP]IALISM 9TO ! MA*9]Y ( ! WORLD M>KET2 BUT 9S(> AS !Y >E1 !Y ALSO SUBMIT TO ! CONDITIONS ( ! DEVELOPM5T ( CAPITAL AS A :OLE & TO CAPITALI/ COMPETITION4 ,AP>T FROM ! IMP]IALI/ C\NTRIES' PLUND]+ ( ! COLONIES1 ACCOMPLI%$ BY SIMPLE ROBB]Y1 ! PROCE$S ( :I* 5T]$ 9TO CAPITALI/ ACCUMULATION1 ! TRANSF] ( VALUE1 BEWAIL$ BY ,M&EL1 FROM ! COLONIES TO ! CAPITALI/ C\NTRIES WAS ( NECESSITY V]Y LIMIT$ DUE TO ! L[ PRODUCTIVITY ( LABOR PREVAIL+ 9 ! COLONIES4 ,CAPITAL S\RY \T A ?OR\< CAPITALIZATION ( ITS COLONIAL POSSESSIONS1 & ?AT 9VE/M5TS 9 ONE'S [N OR O!R CAPITALI/ C\NTRIES W]E MORE PR(ITABLE4 ,?IS FACT ALSO %[S ?AT ! SURPLUS VALUE AVAILABLE = CAPITALIZATION WAS 9SUFFICI5T TO EXT5D ACCUMULATION BEYOND ! LIMITS REA*$ AT ANY P>TICUL> TIME4 ,ON ! O!R H&1 0SMALL ANIMALS ALSO PRODUCE MANURE10 AS ! PROV]B SAYS1 & ! L[] RATE ( EXPLOITATION 9 ! BACKW>D C\NTRIES DID NOT PREV5T CAPITAL FROM EXPLOIT+ !M TOO4 ,:ILE ?IS R$UC$ ! LIMIT$ ACCUMULATION POSSIBILITIES 9 ! DOM9ANT C\NTRIES1 IT ALSO MADE POSSIBLE A SL[+ ( ! DECL9E ( ! RATE ( PR(IT BY RAIS+ ! PRODUCTIVITY ( ! WORLD ECONOMY4 ,S9CE ! FALL 9 ! RATE ( PR(IT IS A CONSEQU5CE ( ! HI<] ORGANIC COMPOSITION ( CAPITAL1 ! 9CLUSION 9 ! WORLD M>KET ( CAPITALS ) L[] ORGANIC COMPOSITIONS >RE/S ?IS FALL4 ,9 PRACTICAL T]MS ?IS MEANS ?AT 9S(> AS SURPLUS VALUE CAN BE TRANSF]R$ FROM SPH]ES ( PRODUCTION ) L[] ORGANIC COMPOSITIONS TO ?OSE ) HI<] COMPOSITIONS1 ! COMPOSITION ( ! TOTAL CAPITAL WILL ALL[ = A MORE FAVORABLE RATE ( PR(IT4 ,:E!R ?IS BETT] RATE WILL BE SUFFICI5T TO VALORIZE ! TOTAL CAPITAL CANNOT BE CALCULAT$ BUT CAN BE SE5 9 ! ACTUAL ACCUMULATION ( CAPITAL4 ,A FALL 9 ! RATE ( ACCUMULATION %[S ?AT ! ORGANIC COMPOSITION ( ! TOTAL CAPITAL - DESPITE ! DIFF]5T COMPOSITIONS ( ! CAPITALS 5T]+ 9TO IT - P]MITS ONLY A RATE ( PR(IT UNFAVORABLE TO FUR!R ACCUMULATION4 ,?IS SITUATION CAN ONLY BE REM$I$1 9 A CONTRADICTORY WAY1 BY A FUR!R RISE 9 ! ORGANIC COMPOSITION ( CAPITAL - OR1 9 O!R WORDS1 BY A FUR!R RISE 9 ! PRODUCTIVITY ( LABOR - NOT ONLY 9 ! DEVELOP$ BUT ALSO 9 ! UND]DEVELOP$ C\NTRIES1 & ALSO BY ! DE/RUCTION ( CAPITAL )9 ! WORLD ECONOMY AS A :OLE1 :I* R$UCES ! TOTAL CAPITAL )9 :I* ! GIV5 MASS ( SURPLUS VALUE IS DI/RIBUT$4 ,AL?\< NEI!R ( !SE PROCESSES CAN BE CONSCI\SLY ORGANIZ$1 !Y >E NONE!LESS C>RI$ \T BY MEANS ( ! PEACEFUL & MILIT>Y COMPETITION BETWE5 9DIVIDUAL CAPITALS & BETWE5 CAPITALI/ NATIONS4 ,9 ?IS S5SE ! LAW ( VALUE GOV]NS ! CAPITALI/ WORLD ECONOMY1 S9CE ! EXT5SION ( ! ECONOMY DEP5DS ON :AT HAPP5S 9 ! SPH]ES ( PRODUCTION & ?IS1 9 TURN1 ON ! RELATION ( VALUE TO SURPLUS VALUE & ( SURPLUS VALUE TO ! TOTAL CAPITAL4 ,CAPITAL ?US HAS A DIRECT 9T]E/ 9 ! 5L>GEM5T ( ! TOTAL SURPLUS VALUE2 AT ! SAME TIME1 ?IS NE$ CAN ONLY BE SATISFI$ ?R\< ! EXPANSION ( ! 9DIVIDUAL CAPITALS4 ,EA* CAPITAL /RIVES = ! L[E/ CO/ PRICE & ! HIKET ME*ANISM2 BUT AT ! SAME TIME1 IT 9CREAS+LY DE/ROYS ! NECESS>Y PR]EQUISITES ( ?IS PROCESS4 ,:ILE CAPITAL WAS ABLE TO ACCEL]ATE ITS ACCUMULATION SOME:AT BY MEANS ( ! SURPLUS VALUE EXTRACT$ FROM ! BACKW>D C\NTRIES1 & :ILE ?IS ADDITIONAL SURPLUS VALUE WAS MADE POSSIBLE BY ! =MATION ( PRICES FAVORABLE TO ! 9DU/RIAL NATIONS1 ?IS WAS ONLY AT ! CO/ ( A SL[ DE/RUCTION ( ?IS ALREADY MEAG] S\RCE ( SURPLUS VALUE4 ,TO KEEP ! S\RCE FL[+ IT W\LD BE NECESS>Y TO RAISE ! PRODUCTIVITY ( LABOR 9 ! BACKW>D C\NTRIES ?R\< !IR 9DU/RIALIZATION1 :I* W\LD REQUIRE A CORRESPOND+ RE/RICTION ( ACCUMULATION 9 ! DEVELOP$ C\NTRIES4 ,BUT ?IS CONTRADICTS ! PR9CIPLE ( CAPITALISM4 ,! FALL+ PR(IT RATE ( ! C\NTRIES ) A HI<] ORGANIC COMPOSITION GOES H& 9 H& ) FALL+ PR(ITS 9 ! C\NTRIES ) A L[] ORGANIC COMPOSITION4 ,BUT :AT 9 ! DEVELOP$ C\NTRIES LEADS TO ! RELATIVE /AGNATION ( CAPITAL1 9 ! UND]DEVELOP$ NATIONS 9DUCES A RUNAWAY PROCESS ( ABSOLUTE PAUP]IZATION4 ,AL?\< ?IS PAUP]IZATION IS A FACT1 ?IS DOES NOT MEAN ?AT !RE IS A SIMULTANE\S 5RI*M5T ( ! CAPITALI/ NATIONS1 AS ,M&EL WI%ES US TO BELIEVE4 ,)\T ANY PRO( AT HIS DISPOSAL1 HE MA9TA9S ?AT 0! AV]AGE RATE ( SURPLUS-VALUE 9 ! COLONIES (T5 EXCE$S ?AT ( ! METROPOLITAN C\NTRIES1 ESPECIALLY S9CE ! PRODUCTION ( ABSOLUTE SURPLUS-VALUE 9 COLONIAL T]RITORIES CAN BE EXT5D$ BEYOND ! LIMITS 5C\NT]$ 9 METROPOLITAN C\NTRIES10 & S9CE AS A RESULT ( A GIGANTIC 9DU/RIAL RES]VE >MY 0! VALUE ( LABOR-P[] 9 ! COLONIES FALLS1 9 ! LONG RUN1 NOT ONLY RELATIVELY1 BUT EV5 ABSOLUTELY0 7PP4 #c#d#c-#d#d1 TRANSLATION CORRECT$74 ,N[1 ! VALUE ( LABOR P[] 9 ! BACKW>D C\NTRIES HAS = A LONG TIME BE5 SO L[ ?AT A 0LONG-RUN FALL0 IS EXCLUD$1 S9CE ?IS W\LD LEAD TO ! EXT9CTION ( ! WORK =CE1 & ! PRODUCTIVITY ( LABOR IS SO LIMIT$ ?AT EV5 L5G!N+ ! WORK+ DAY W\LD NOT 5L>GE ! ABSOLUTE SURPLUS VALUE4 ,! L5G!N+ ( ! WORK+ DAY 9 ITSELF YIELDS NO ADDITIONAL SURPLUS VALUE :5 ! PHYSICAL LIMIT ( EXPLOITATION HAS ALREADY BE5 REA*$4 ,)\T A D\BT GREAT EXTRA PR(ITS >E MADE 9 ! C\NTRIES ( ! 0,?IRD ,WORLD10 BUT !Y D]IVE FROM ! EXTRACTION ( P>TICUL> RAW MAT]IALS ?AT 5T] 9TO ! PRODUCTION ( ! CAPITALI/ NATIONS & :OSE VALUE IS REALIZ$ 9 !M4 ,BUT TO CONCLUDE FROM !SE P>TICUL> S\RCES ( PR(IT ?AT !RE IS A HI<] 0AV]AGE RATE ( SURPLUS VALUE 9 ! COLONIES0 IS SO OBVI\SLY WRONG ?AT !RE IS NO NE$ TO DEPLORE ! ABS5CE ( RELEVANT DATA4 ,! IDEA ?AT ! TRANSF] ( SURPLUS VALUE FROM ! UND]DEVELOP$ TO ! CAPITALI/ C\NTRIES1 A*IEV$ BY UNEQUAL EX*ANGE1 IS DE/9$ TO DISAPPE> & CANNOT BE MA9TA9$ BY ! 9CREASE ( ABSOLUTE SURPLUS VALUE ALSO OCCURS TO ,M&EL1 :O P]CEIVES ?IS AS A *ANGE 9 ! =M ( IMP]IALI/ EXPLOITATION4 ,?IS TRANS=MATION HAS TWO ASPECTS2 9 ! FIR/ PLACE ! %>E ( COLONIAL SURPLUS PR(ITS HAS UND]GONE A DECL9E RELATIVE TO ! TRANSF] ( VALUE VIA 0UNEQUAL EX*ANGE20 9 ! SECOND PLACE1 ! 9T]NATIONAL DIVISION ( LABOR IS SL[LY MOV+ T[>DS ! EX*ANGE ( LITICUL> =M ( MAT]IAL PRODUCTION1 0BUT TO A DIFF]5CE 9 ! RESPECTIVE LEVELS ( CAPITAL ACCUMULATION1 LABOR PRODUCTIVITY1 & ! RATE ( SURPLUS-VALUE10 ONLY ! =M ( UND]DEVELOPM5T IS *ANG+ & NOT ITS CONT5T1 & 0! S\RCES ( METROPOLITAN IMP]IALI/ EXPLOITATION ( ! SEMI-COLONIES TODAY FL[ MORE ABUNDANTLY ?AN EV]0 7P4#c#f#h74 ,?IS *ANGE ( =M MEANS ?AT MANY 0,?IRD ,WORLD0 C\NTRIES >E BEG9N+ TO 9DU/RIALIZE1 TO PRODUCE ADDITIONAL SURPLUS VALUE1 & TO HAVE MORE TO EX*ANGE ?AN JU/ FOOD/UFFS & RAW MAT]IAL-1 IF ALSO LESS ( ! LATT]4 ,S9CE ?IS *ANGES ! COMPOSITIONS ( !IR CAPITALS1 !IR CONDITION COMES SOME:AT CLOS] TO ?AT ( ! DEVELOP$ C\NTRIES4 ,TO ! EXT5T ?AT ?IS HAPP5S1 H[EV]1 IT 9FLU5CES ! TRANSF] ( VALUE TO ! IMP]IALI/ C\NTRIES1 S9CE A GR[+ P>T ( ! SURPLUS VALUE MU/ BE CAPITALIZ$1 :I* HAD NOT PREVI\SLY BE5 ! CASE4 ,?R\< ! SIMULTANE\S DIM9UTION ( ! PRODUCTION ( RAW MAT]IALS & FOOD/UFFS1 ! 0UNEQUAL EX*ANGE0 IS R$UC$ BY WAY ( PRICE =MATION UND] CONDITIONS ( 9T]NATIONAL COMPETITION & LEADS ! DEVELOP$ C\NTRIES TO EXPORT CAPITAL TO ! UND]DEVELOP$ C\NTRIES 9 ORD] TO %>E 9 !IR SURPLUS VALUE4 ,?AT ?IS DIRECTLY 9VE/$ SURPLUS VALUE IS /ILL ( RELATIVELY LITTLE IMPORTANCE CAN BE SE5 9 ! FACT ?AT ! GREAT MASS ( CAPITAL EXPORTS /ILL GOES TO ! CAPITALI/ICALLY DEVELOP$ C\NTRIES4 ,ACCORD+ TO ,M&EL1 ! HEAD />T MADE BY ! IMP]IALI/ NATIONS CANNOT BE OV]COME1 SO ?AT DESPITE ! SL[ 9DU/RIALIZATION ( ! 0,?IRD ,WORLD0 C\NTRIES1 ! DIFF]5CE BETWE5 ! RATES ( SURPLUS VALUE 9 ! TWO GR\PS REMA9S1 :I* MAKES IT POSSIBLE = IMP]IALISM TO CONT9UE TO EXTRACT SURPLUS VALUE1 9 EV5 GREAT] AM\NTS1 FROM ! BACKW>D C\NTRIES & TO ACCUMULATE AT !IR EXP5SE4 0,ONLY IF !RE W]E A G5]AL HOMOG5IZATION ( CAPITALI/ PRODUCTION ON A WORLD SCALE10 HE WRITES1 0W\LD ! S\RCES ( SURPLUS-PR(IT DRY UP0 7P4#c#f#h74 ,S9CE ?IS 0G5]AL HOMOG5IZATION10 ! TOTAL WORLDWIDE MOBILITY ( CAPITAL & LABOR1 IS NOT REALLY CONCEIVABLE1 ,M&EL COMES TO ! CONCLUSION ?AT CAPITALISM CANNOT ELIM9ATE ITS COMB9ATION ( DEVELOPM5T & UND]DEVELOPM5T1 & ) IT ! EXPLOITATION ( ! 0,?IRD ,WORLD40 ,! ONLY SOLUTION TO ?IS DILEMMA REMA9S A SOCIAL REVOLUTION ?AT W\LD PUT AN 5D TO ! DOM9ATION ( ! CAPITALI/ WORLD M>KET BY SOCIALIZ+ ! MEANS ( PRODUCTION4 ,9 ?IS WAY ,M&EL BELIEVES HE HAS US$ ! !ORY ( VALUE TO EXPLA9 BO? IMP]IALISM & ! SOCIAL REVOLUTIONS EXPECTABLE 9 ! UND]DEVELOP$ C\NTRIES4 ,S9CE VALUE RELATIONS >E CONCEAL$ BEH9D PRICE RELATIONS1 UNEQUAL EX*ANGE IS ! NORMAL CASE BO? NATIONALLY & 9T]NATIONALLY1 BUT MU/ HAVE DIFF]5T EFFECTS DUE TO ! DIFF]5CES BETWE5 ! C\NTRIES 9CLUD$ 9 ! WORLD M>KET4 ,!SE DIFF]5CES ) RESPECT TO COMMODITY VALUES & RATES ( SURPLUS VALUE LEAD1 = ,M&EL1 TO NATIONALLY DIFF]5TIAT$ AV]AGE RATES ( PR(IT & PRICES ( PRODUCTION1 :I* FIR/ MAKE UNEQUAL EX*ANGE POSSIBLE4 ,BUT ,M&EL'S AB/RACTION FROM ! WORLD M>KET LEAD HIM TO NO CONCLUSION ?AT HE C\LD NOT HAVE DRAWN )\T AB/RACT+ FROM IT4 ,NOT ONLY IS ,M&EL'S EXPLANATION ( UNEQUAL EX*ANGE & VALUE TRANSF] 9CORRECT1 EV5 IF IT W]E CORRECT IT W\LD BE SUP]FLU\S4 ,9 EV]Y C\NTRY ! CAPITALI/S DEAL ONLY ) CO/ PRICES & M>KET PRICES1 :I* !Y EXP]I5CE GIV5S4 ,! DIFF]5CE BETWE5 !SE PRICES IS ! PR(IT4 ,! CO/ PRICE CONSI/S ( :AT ! CAPITALI/ MU/ PAY HIS WORK]S PLUS ! CO/ ( ! MEANS ( PRODUCTION & RAW MAT]IALS !Y USE4 ,! PRICE ( PRODUCTION CONSI/S ( !SE \TLAYS PLUS ! PR(IT WON ON ! M>KET4 ,IT IS ALL ! SAME TO ! CAPITALI/S :E!R !Y MAKE ?IS PR(IT AT HOME OR ON ! WORLD M>KET4 ,?IS HOLDS BO? = ! CAPITALI/S 9 ! UND]DEVELOP$ & = ?OSE 9 ! DEVELOP$ C\NTRIES4 ,! DIFF]5CE BETWE5 !M CONSI/S 9 ! FACT ?AT = ONE ! CO/ PRICE 9CLUDES LESS = MEANS ( PRODUCTION & MORE 9 WAGES1 :ILE = ! O!R !SE PROPORTIONS >E REV]S$4 ,BUT A HI<] RATE ( PR(IT ) A L[] ORGANIC COMPOSITION MAY YIELD A L[] MASS ( SURPLUS VALUE ?AN ! L[] PR(IT ?AT GOES ) A HI< ORGANIC COMPOSITION4 ,! PRODUCTIVITY ( CAPITALS ( HI<] ORGANIC COMPOSITION IS GREAT] BY F> ?AN ?AT ( CAPITALS ( L[] COMPOSITION1 SO ?AT ! LOSS ( VALUE ?AT RESULTS = ! TOTAL CAPITAL FROM ! RELATIVE DECREASE 9 ,JIV+ LABOR IS COMP5SAT$ =4 ,?IS IS ! PO9T ( ACCUMULATION & ! DIFF]5CE BETWE5 DEVELOP$ & UND]DEVELOP$ C\NTRIES4 ,SURPLUS VALUE GR[S ) ACCUMULATION1 :ILE IT /AGNATES )\T ACCUMULATION & SO MAKES EXT5D$ REPRODUCTION IMPOSSIBLE4 ,AS A RESULT1 ! DIFF]5CE BETWE5 C\NTRIES ) A HI<] & ?OSE ) A L[] ORGANIC COMPOSITION MU/1 AS ! =M] ACCUMULATE1 CONT9UALLY 9CREASE TO ! DISADVANTAGE ( ! LATT] - SO LONG1 ?AT IS1 AS ACCUMULATION LEADS TO AN 9CREASE 9 ! MASS ( PR(IT MORE RAPID ?AN ! FALL 9 ! PR(IT RATE DUE TO ! 9CREASE 9 ! ORGANIC COMPOSITION ( CAPITAL4 ,! 9CREAS+ MASS ( PR(IT IS EMBODI$ 9 PRODUCTS ?AT 9DIVIDUALLY CONTA9 LESS VALUE & LESS SURPLUS VALUE1 BUT ! 9CREAS$ QUANTITY ( :I* COMP5SATES = ?IS DECL9E 9 9DIVIDUAL VALUE4 ,! COMMODITY PRODUC$ ) A HI<] PRODUCTIVITY IS *EAP] ?AN ?AT REQUIR+ A GREAT EXP5DITURE ( LABOR4 ,?IS *EAP5+ IS MANIFE/$ 9 FALL+ PRICES ( PRODUCTION1 SOME?+ :I* AT FIR/ SIS TO CONFIRM ,M&EL'S CONCEPTION ( ! DIFF]5T AV]AGE PR(IT RATES & PRICES ( PRODUCTION4 ,?IS *EAP5+1 H[EV]1 EXT5DS MORE OR LESS TO ALL COMMODITIES4 ,S9CE FOOD/UFFS & RAW MAT]IALS >E PRODUC$ NOT ONLY 9 ! COLONIES & SEMICOLONIES BUT ALSO 9 ! DEVELOP$ C\NTRIES1 ! WORLD M>KET PRICE ( !SE PRODUCTS IS AFFECT$ BY ! G5]AL RISE 9 PRODUCTIVITY4 ,9 CONNECTION ) ! WORLD'S REQUIREM5TS = !SE PRODUCTS1 !IR PRICES >E DET]M9$ NOT BY NATIONAL VALUE RELATIONS BUT BY ! RELATION%IP BETWE5 WORLD SUPPLY & WORLD DEM&4 ,?US ! WORLD M>KET PRICE = !SE PRODUCTS RISES AS SOON AS ! DEM& = !M RISES1 AS = 9/ANCE 9 A P]IOD ( RAPID ACCUMULATION 9 ! CAPITALI/ C\NTRIES OR 9 ! CASE ( W>4 ,ON ! O!R H&1 ! WORLD M>KET PRICE FALLS ) CAPITALI/ /AGNATION & ANY R$UCTION ( PRODUCTION4 ,! PRICES ( ! PRODUCTS ( ! 0,?IRD ,WORLD0 >E =M$ 9 A CONTEXT DET]M9$ BY ! MOVEM5T ( ! TOTAL CAPITAL ON ! GLOBAL LEVEL4 ,! PRODUCTION PRICES ( PRODUCTS ( ! UND]DEVELOP$ C\NTRIES >E CON/ITUT$ BY !IR CO/ PRICES & ! PR(IT DET]M9$ BY WORLD M>KET CONDITIONS4 ,AS F> AS !IR [N PRODUCTION GOES1 !IR RATES ( PR(IT RESULT NEI!R FROM ! ORGANIC COMPOSITION ( !IR [N CAPITALS NOR FROM ?OSE ( ! DEVELOP$ C\NTRIES BUT FROM ! SUPPLY-&-DEM& RELATIONS ( ! WORLD M>KET4 ,!Y >E ?US SUBORD9ATE TO ! MOVEM5TS ( ! TOTAL CAPITAL1 :I* DET]M9E ! =MATION ( ! AV]AGE RATE ( PR(IT & ITS MAGNITUDE4 ,9 O!R WORDS1 BECAUSE ! WORLD M>KET EXI/S !RE CAN BE NO NATIONAL AV]AGE PR(IT RATES & NO PRICE RELATIONS REFLECT+ NATIONAL VALUE RELATIONS4 ,) RESPECT TO PRODUCTION 9 G5]AL PRICE =MATION 9 ! UND]DEVELOP$ C\NTRIES IS FROM ! />T DET]M9$ BY ?AT 9 ! DEVELOP$ NATIONS1 S9CE ! ABS5CE ( MOD]N 9DU/RY RULES \T ANY ABILITY TO COMPETE4 ,?US !Y MU/ RE/RICT !MSELVES TO ! PRODUCTION ( RAW MAT]IALS & FOOD/UFFS 9 ORD] TO REALIZE !IR PR(ITS 9 ! PRICES ( PRODUCTION DICTAT$ BY ! WORLD M>KET4 ,! 9TRODUCTION ( 9DU/RY 9TO ! UND]DEVELOP$ C\NTRIES CANNOT ELIM9ATE UNEQUAL EX*ANGE SO LONG AS ! PRODUCTIVITY 9 !SE C\NTRIES IS L[] ?AN ! WORLD-WIDE AV]AGE SOCIALLY NECESS>Y LABOR TIME4 ,?IS DISADVANTAGE IS TO AN EXT5T (FSET BY ! L[ VALUATION ( LABOR P[]1 :I* AT ! SAME TIME H9D]S !IR FUR!R DEVELOPM5T4 ,( C\RSE1 ! LACK ( CAPITAL CAN BE SOME:AT MITIGAT$ BY 9VE/M5TS FROM ! DEVELOP$ C\NTRIES4 ,H[EV]1 S9CE MO/ ( ! PR(ITS ON !SE 9VE/M5TS FL[ BACK TO ! CAPITAL-EXPORT+ C\NTRIES1 ?IS HAS ONLY A M9OR 9FLU5CE ON ! ACCUMULATION PROCESS 9 ! UND]DEVELOP$ C\NTRIES4 ,S9CE ! EXPORT ( CAPITAL IS DET]M9$ BY PR(ITABILITY1 IT GOES TO ?OSE 9DU/RIES & C\NTRIES ?AT APPE> TO YIELD ! GREATE/ RETURN1 & NOT ONLY FROM SOME DEVELOP$ C\NTRIES TO O!RS ( HI<] PRODUCTIVITY-BUT ALSO FROM ! C\NTRIES ) L[] PRODUCTIVITY 9TO ?OSE ) A HI<] ONE4 ,SURPLUS VALUE FL[S NOT JU/ UND] PRESSURE BUT ALSO FREELY FROM ! BACKW>D TO ! DEVELOP$ C\NTRIES4 ,FROM ?IS1 H[EV]1 IT CANNOT BE CONCLUD$ ?AT ! EXPLOITATION ( UND]DEVELOP$ C\NTRIES IS :AT KEEPS ! IMP]IALI/ NATIONS ON !IR FEET4 ,! 5D ( COLONIALISM WAS BR\Y NATIONALI/ MOVEM5TS GR[+ \T ( IMPOV]I%M5T BUT ALSO BY ! DW9DL+ PR(ITABILITY ( ! COLONIES1 :I* MADE IT EASI] = !IR POSSESSORS TO GIVE !M UP4 ,IT WAS ALSO 9FLU5C$ BY ! APPE>ANCE ( NEW IMP]IALI/ P[]S1 9 ! WORLD M>KET OR \TSIDE ( ! MONOPOLI/ICALLY CONTROLL$ WORLD M>KET1 ) !IR [N CLAIMS ON ! 0,?IRD ,WORLD10 EI!R 9 ! =M ( !IR [N IMP]IALI/IC CONQUE/S OR 9 ?AT ( NEOCOLONIALISM1 :I* UND]/OOD H[ TO COMB9E NATIONAL SELF-DET]M9ATION ) ECONOMIC IMP]IALI/ CONTROL4 ,?IS PROCESS1 :I* HAS ALREADY 9VOLV$ TWO WORLD W>S & MANY LOCAL W>S1 HAS NOT YET COME TO AN 5D & CANNOT DO SO1 AS ?IS W\LD PRESUPPOSE ! ABOLITION ( COMPETITION & ?US ?AT ( ! CAPITALI/ RELATIONS ( PRODUCTION4 ,BUT ALL !SE 5DEAVORS REFLECT ! DESIRE TO BREAK ! FETT]S ( A L[ PRODUCTIVITY ( LABOR4 ,! GREATE/ EF=TS ( BO? ! B\RGEOISIE & ! /ATE-CAPITALI/ AU?ORITIES >E D$ICAT$ TO ECONOMIC DEVELOPM5T1 I4E41 TO ! 9CREASE ( SURPLUS VALUE-AN EF=T ?AT IS NOT COMPLETELY )\T SUCCESS4 ,IT IS ! DESIRE = ADDITIONAL SURPLUS VALUE ?AT LEADS TO ! ATTEMPT TO HA/5 ! PALPABLE ?\< SL[ CAPITALIZATION ( ! BACKW>D C\NTRIES1 ( :I* EV5 ,M&EL IS AW>E4 ,& IT IS ?IS SAME CREEP+ CAPITALIZATION ?AT GIVES ! REVOLUTION>Y NATIONALI/ MOVEM5T ITS 9C5TIVE TO A*IEVE ! SAME GOAL BY POLITICAL ME?ODS ?AT TRANSC5D ! LIMIT$ FRAMEWORK ( PRIVATE CAPITALI/ 9ITIATIVE4 ,:E!R ! COMB9ATION ( !SE ME?ODS WILL SUFFICE TO SQUEEZE \T ( ! WORK]S ! MASS ( SURPLUS VALUE NECESS>Y = A SIMULTANE\S EXPANSION & GEOGRAPHICAL EXT5SION ( CAPITAL CANNOT BE !ORETICALLY DET]M9$1 AL?\< IT IS ( DECISIVE IMPORTANCE = ! NE> FUTURE4 ,:AT IS EVID5T FROM ALL EF=TS1 H[EV]1 IS ! CONT9U+ =CE ( ! T5D5CY1 9H]5T 9 CAPITALI/ PRODUCTION1 ( ! RATE ( PR(IT TO FALL1 :I* LEADS TO FRANTIC EX]TIONS TO RAISE ! PRODUCTIVITY ( LABOR ?R\<\T ! WORLD4 ,EV5 ,M&EL REALIZES ?AT ! EXPLOITATION ( ! 0,?IRD ,WORLD0 CANNOT GO ON =EV] BUT MU/ EV5TUALLY COME TO AN 5D4 ,:AT IS SO REM>KABLE AB\T ,M&EL'S ECONOMIC !ORY IS PRECISELY ?AT IT IS C\*$ 9 SU* T]MS ?AT EV]Y?+ & NO?+ CAN BE DRAWN FROM IT1 :I* MAKES IT EASY = ,M&EL TO EVADE ANY EMB>RASS+ DIFFICULTY4 ,?R\< HIS PR9CIPL$ REJECTION ( ANY 0MONOCAUSAL0 EXPLANATION ( CAPITALI/ DEVELOPM5T HE IS 9 A POSITION TO APPROPRIATE ALL EXI/+ !ORIES & USE !M = HIS [N PURPOSES2 AT ! SAME TIME1 BY MEANS ( ! 0MONO CAUSAL0 !ORY ( VALUE HE CAN DEMON/RATE !IR 9ADEQUACY4 ,H>DLY HAS HE DONE ?IS ?AN HE RE>RANGES ! 9SIIABLES 9 ORD] TO DISPUTE ! 0MONOCAUSAL0 ACC\NT ( ! C\RSE ( HI/ORY BY REF]5CE TO ONE OR ANO!R ( ! DEVELOPM5TAL T5D5CIES ?AT FOLL[ FROM ! VALUE !ORY4 ,?US HE F9ALLY SUCCE$S1 9 HIS [N E/IMATION1 9 %[+ ! 9ADEQUACY ( B\RGEOIS & ALL ,M>XI/ !ORIES1 & SO 9 PRES5T+ HIMSELF AS ! MAN :O1 BECAUSE ( HIS CORRECT UND]/&+ ( ,M>XISM1 HAS = ! FIR/ TIME EXPLA9$ 0LATE CAPITALISM0 ON ! BASIS ( ! LAW ( VALUE4 #e ,WE CAN AGREE ) ,M&EL ON ONE ?+2 IT IS C]TA9LY TRUE ?AT CAPITAL EXPLOITS ! WORLD & NEV]!LESS HAS NO FUTURE4 ,H[EV]1 ACCORD+ TO ,M&EL1 ! ABOLITION ( ! CAPITALI/ SY/EM CANNOT BE D$UC$ FROM ! CAPITALI/ RELATIONS ( PRODUCTION ALONE1 = !RE IS ALSO ! PROBLEM ( ! REALIZATION ( SURPLUS VALUE TO CONSID]4 ,9 ?IS WAY ,M&EL ADH]ES TO TWO DI/9CT !ORIES ( CRISIS AT ONCE3 ! OV]ACCUMULATION !ORY1 :I* IS BAS$ ON ! RELATIONS ( PRODUCTION1 & ! OV]PRODUCTION !ORY1 :I* IS BAS$ ON ! DIFFICULTIES ( REALIZ+ SURPLUS VALUE DUE TO AN 9SUFFICI5T DEM& = CONSUM] GOODS4 ,N[1 ! OV]-ACCUMULATION !ORY 9CLUDES ! OV]PRODUCTION !ORY1 S9CE ! DIFFICULTIES ( REALIZATION >ISE DIRECTLY FROM AN 9SUFFICI5T ACCUMULATION ( CAPITAL4 ,! REALIZATION-PROBLEM !ORY1 9 CONTRA/1 CANNOT 9CLUDE ! OV]ACCUMULATION APPROA*1 AS IT IMPLIES A B>RI] TO ! APPE>ANCE ( ?IS /ATE ( AFFAIRS4 ,! DISPROPORTIONALITY BETWE5 PRODUCTION & CONSUMPTION IS A CON/ANT FEATURE ( ! SY/EM1 BE+ NO MORE OR LESS ?AN SURPLUS-VALUE PRODUCTION ITSELF :ILE OV]ACCUMULATION1 AS A DISCREPANCY BETWE5 EXPLOITATION & ! ORGANIC COMPOSITION ( CAPITAL1 APPE>S ONLY FROM TIME TO TIME4 ,! RIS+ ORGANIC COMPOSITION ( CAPITAL PRESUPPOSES A GR[+ DISPROPORTIONALITY BETWE5 SOCIAL PRODUCTION & CONSUMPTION1 & BY ITSELF - ?AT IS TO SAY1 BY ACCUMULATION - OV]COMES ! REALIZATION PROBLEM4 ,?IS PROBLEM ONLY >ISES AGA9 ) ! SUSP5SION ( ACCUMULATION1 APPE>+ !N AS 9SUFFICI5T DEM&1 9CLUD+ ! DEM& = CONSUM] GOODS4 0,WE MEAN BY ! CONCEPT ( OV]ACCUMULATION10 WRITES ,M&EL1 0A SITUATION 9 :I* A PORTION ( ! ACCUMULAT$ CAPITAL CAN ONLY BE 9VE/$ AT AN 9ADEQUATE RATE ( PR(IT4440 7P4#a#i1 TRANSLATION CORRECT$74 ,S9CE IT IS NOT 9VE/$ UND] !SE CIRCUM/ANCES1 ! 9T]RUPTION ( ACCUMULATION APPE>S ON ! M>KET AS A LACK ( DEM& = PRODUC] GOODS & ?US = CONSUM] GOODS1 9 O!R WORDS1 AS A CRISIS ( OV]PRODUCTION4 ,?IS IS H[ IT APPE>S TO ,M&EL1 TOO1 BUT HE W\LD NEV]!LESS LIKE TO ADH]E 09 ! LONG-RUN0 TO ! IDEA ( OV]ACCUMULATION 9 ORD] TO PROVE ! NECESS>Y DECL9E ( CAPITALISM4 ,H[EV]1 HE DOES NOT WANT TO DO ?IS 9 SO 0ME*ANICAL0 A WAY AS1 = 9/ANCE1 ,GROSSMANN DID2 OV]ACCUMULATION IS TO BE %[N TO FOLL[ NOT FROM ! ASSUMPTION ( A CON/ANTLY RIS+ ORGANIC COMPOSITION ( CAPITAL BUT FROM ! CONT9U\S AUTOMATIZATION ( PRODUCTION & ! DISPLACEM5T ( LIV+ LABOR4 ,AGA9/ ,GROSSMANN ,M&EL >GUES ?AT ! RISE 9 ! ORGANIC COMPOSITION ( CAPITAL CAN ALWAYS BE C\NT]ACT$ BY EQUIVAL5T DEPRECIATION ( CAPITAL4 ,IT DOES NOT OCCUR TO HIM ?AT BY ! SAME LOGIC1 AUTOMATIZATION C\LD ALSO BE HALT$ AS SOON AS IT AFFECTS PR(ITS4 ,HE IS ALSO NOT AW>E ?AT HE IS ONLY REPEAT+ ,GROSSMANN1 AL?\< 9 DIFF]5T WORDS4 ,CONT9U\S AUTOMATIZATION IS ( C\RSE ID5TICAL ) A CONT9U\S GR[? ( ! ORGANIC COMPOSITION ( CAPITAL4 ,BUT H>DLY HAS ,M&EL ! 0DIALECTICIAN0 PRON\NC$ HIS WI!R+ JUDGM5T ON ,GROSSMANN ! 0ME*ANI/0 ?AN HE IMM$IATELY TAKES IT BACK1 ) ! FUR!R 9SIM ALL POSSIBLE ADV]S>IES4 ,?US HE READILY CONC$ES 0?AT ! DIFFICULTY ( SIMULTANE\SLY REALIZ+ SURPLUS-VALUE & RAIS+ ! RATE ( SURPLUS-VALUE1 IS AN*OR$ 9 ! CAPITALI/ MODE ( PRODUCTION AS SU*444 7P4#b#g#b74 ,BUT AN*ORS CAN BE RAIS$ & ! VOYAGE CAN CONT9UE AS SOON AS ONE ( ! V>IABLES DECL>ES ITS 9DEP5D5CE4 ,ON ! ONE H&1 CAPITAL ACCUMULATES1 ACCORD+ TO ,M&EL1 AT ! EXP5SE ( ! UND]DEVELOP$ C\NTRIES2 ON ! O!R1 9 ! C\RSE ( ?IS PROCESS 0CAPITAL ITSELF CREATES AN 9SUP]ABLE LIMIT TO ITS [N EXT5SION0 7P4#h#e74 ,S9CE MEAN:ILE ! PROBLEM ( SURPLUS PR(ITS1 NATIONAL & 9T]NATIONAL1 CAN BE R$UC$ TO ! QUE/ION ( ! TRANSF] ( VALUE OR ( SURPLUS-VALUE1 !RE IS NO LIMIT :ATSOEV] 9 PURELY ECONOMIC T]MS TO ?IS PROCESS ( ! GR[? ( CAPITAL ACCUMULATION AT ! EXP5SE ( O!R CAPITALS1 ! EXT5SION ( CAPITAL ?R\< ! COMB9ATION ( ACCUMULATION & DEVALUATION ( CAPITALS1 ?R\< ! DIALECTICAL UNITY & CONTRADICTION ( COMPETITION & CONC5TRATION4 ,LIMITS TO ! PROCESS ( CAPITALI/ GR[? >E-FROM A PURELY ECONOMIC PO9T ( VIEW-9 ?IS S5SE ALWAYS M]ELY TEMPOR>Y1 BECAUSE :ILE !Y PROCE$ \T ( ! V]Y CONDITIONS ( A DIFF]5CE 9 ! LEVEL ( PRODUCTIVITY1 !Y CAN REV]SE !SE CONDITIONS 7P4#a#d1 TRANSLATION CORRECT$74 ,9 %ORT1 IT IS LIKE ?IS BUT ALSO DIFF]5T2 IT DEP5DS 5TIRELY ON ) :OMEV] ,M&EL IS >GU+ AT ! MOM5T4 ,IT W\LD TAKE A NEW BOOK TO TRACE ,M&EL'S 9ANITIES 9 DETAIL IF ONE WANT$ TO %[ ?AT HIS WORK REPRES5TS NOT DIALECTICS BUT ORD9>Y 9CONSI/5CIES4 ,P]CEPTIVE READ]S ( HIS BOOK WILL SEE ?IS = !MSELVES4 ,WE !RE=E PREF] TO TURN - AFT] A LOOK AT ,M&EL'S APOLOGETIC R5OVATION ( ,L59'S !ORY ( IMP]IALISM TO HIS ANALYSIS ( 0LATE CAPITALISM40 ,BUT S9CE ACCORD+ TO ,M&EL ! CURR5T PHASE ( CAPITALISM MU/ BE EXPLA9$ NOT ONLY !ORETICALLY BUT ALSO 9 T]MS ( HI/ORY1 WE MU/ TAKE ANO!R LOOK AT ! PA/4 ,M&EL DI/+UI%ES ?REE MA9 PHASES ( CAPITALI/ DEVELOPM5T4 0,! E>LY CAPITALI/ ]A ( FREE COMPETITION0 WAS 0*>ACT]IZ$ BY A RELATIVE 9T]NATIONAL IMMOBILITY ( CAPITAL444 ABOVE ALL BECAUSE !RE W]E NOT AS YET ANY CRITICAL LIMITS TO ! EXPANSION ( CAPITAL ACCUMULATION ON ! HOME M>KET4440 7PP #c#a#b-#a#c74 ,!N FOLL[$ 0! CLASSICAL ]A ( IMP]IALISM10 9 :I* 0! CONC5TRATION ( CAPITAL BECAME 9CREAS+LY 9T]NATIONAL 9 *>ACT]0 7P4#c#a#c74 ,?IS WAS REPLAC$ BY 0LATE CAPITALISM10 9 :I* 0! MULT9ATIONAL COMPANY BECOMES ! DET]M9ANT ORGANIZATIONAL =M ( BIG CAPITAL0 7P4#c #a#f74 ,9 ?IS WE SEE 0?AT CONTEMPOR>Y =CES ( PRODUCTION >E BUR/+ ?R\< ! FRAMEWORK ( ! NATION /ATE1 = ! M9IMUM ?RE%OLD ( PR(ITABILITY 9VOLVES \TPUT S]IES COMM5SURATE ) ! M>KETS ( SEV]AL C\NTRIES0 7P4#c#a#f74 ,N[1 IT IS A FACT ?AT ! GR[? ( ! PRODUCTIVE =CES CO9CID$ FROM ! />T ) ! =MATION ( ! WORLD M>KET1 :I* L$ TO IMP]IALISM & ! 9T]NATIONAL CONC5TRATION ( CAPITAL AS AN EXPRESSION ( IMP]IALI/ COMPETITION4 ,ACCORD+ TO ,M&EL1 AB/RACTLY PUT1 09 ! F9AL ANALYSIS ! MANIFE/ATIONS ( IMP]IALISM >E TO BE EXPLA9$ BY ! LACK ( HOMOG5EITY ( ! CAPITALI/ WORLD ECONOMY0 7P4#h#d74 ,FROM ?IS IT %\LD FOLL[ ?AT ! 9CREAS+ HOMOG5IZATION ( ! WORLD ECONOMY MU/ WEAK5 IMP]IALISM4 ,BUT1 ,M&EL SAYS1 ?IS IS SIMPLY NOT POSSIBLE BECAUSE 0! ACCUMULATION ( CAPITAL ITSELF PRODUCES DEVELOPM5T & UND]DEVELOPM5T AS MUTUALLY DET]M9+ MOM5TS ( ! UNEV5 & COMB9$ MOVEM5T ( CAPITAL0 7P4#h#e74 ,ACCORD+ TO ,HILF]D+ & ,L591 ! COMPETITION-9DUC$ CONC5TRATION & C5TRALIZATION ( CAPITAL LEAD TO AN ORGANIZ$ CAPITALISM T5D+ T[>D A S+LE WORLD TRU/-A DEVELOPM5T ?AT CAN BE PREV5T$ ONLY BY A PRIOR PROLET>IAN REVOLUTION4 ,M&EL /ILL ACCEPTS ?IS !ORY TODAY & CONCLUDES FROM IT 0?AT 5 R\TE TO ! 'S+LE WORLD TRU/1' ! PO/PONEM5T ( ! PROLET>IAN REVOLUTION 9 ! IMP]IALI/ METROPOLITAN C\NTRIES HAS R5D]$ POSSIBLE1 IF NOT ACTUALLY PROBABLE1 ! SIMPLIFICATION ( ! PATT]N ( MULTIPLE IMP]IALI/ P[]S 9TO ?REE 'SUP] P[]S0' 7P4#c#c#d1 TRANSLATION CORRECT$74 ,9 OPPOSITION TO ,KAUTSKY1 ! ORIG9ATOR ( ?IS IDEA1 ,M&EL SEES 9 ?IS DEVELOPM5T NOT A WEAK5+ BUT 0AN 9T5SIFICATION 9 ! AGE ( LATE CAPITALISM ( ALL ! CONTRADICTIONS 9H]5T 9 IMP]IALISM0 7P4#c#c#d71 S9CE 0! MA9 T5D5CY ( ! 9T5SIFY+ COMPETITIVE /RUGGLE TODAY IS NOT = BIG CAPITAL TO M]GE ON A WORLD SCALE BUT = SEV]AL IMP]IALI/ =MATIONS TO H>D5 9 !IR MUTUAL ANTAGONISM0 7P4#c#c#h74 ,?US ! 0DET]M9ANT ORGANIZATIONAL =M ( BIG CAPITAL0 9 0LATE CAPITALISM0 IS 9 ! F9AL ANALYSIS ONLY A SECOND>Y T5D5CY1 :I* IS 9 TURN OV]RUL$ BY ! 0MA9 T5D5CY0 ,BUT ! SECOND>Y T5D5CY1 ! 9T]NATIONAL C5TRALIZATION ( CAPITAL1 MU/ ACCORD+ TO ,M&EL BE UND]/OOD AS 0CAPITAL'S ATTEMPT TO BREAK ?R\< ! HI/ORICAL B>RI]S ( ! NATION-/ATE1 JU/ AS NATIONAL 7& TOMORR[ P]HAPS SUPRA-NATIONAL7 ECONOMIC PROGRAMM+ REPRES5TS AN ATTEMPT P>TIALLY TO OV]COME ! B>RI]S ( PRIVATE [N]%IP & PRIVATE APPROPRIATION = ! FUR!R DEVELOPM5T ( ! =CES ( PRODUCTION0 7P4#c#d#b74 ,! TRUE *>ACT] ( 0LATE CAPITALISM0 H]E REVEAL$ HAS NOT BE5 PREVI\SLY RECOGNIZ$ EI!R ON ! B\RGEOIS OR ON ! ,M>XI/ SIDE4 ,) RESPECT TO ! LATT]1 ?IS LACK IS DUE TO PREVI\S ,M>XI/S' NEGLECT ( 0! 9T]L9KAGE BETWE5 'ORGANIZ$ CAPITALISM' & G5]ALIZ$ COMMODITY PRODUCTION0 7P4#e#b#c74 ,?US !Y HAVE FAIL$ TO COMPREH5D 0! FAM\S =MULA APPLI$ TO JO9T-/OCK COMPANIES BY ,M>X 9 ,CAPITAL0 ?AT DESCRIBES !M AS REPRES5T+ 0! ABOLITION ( ! CAPITALI/ MODE ( PRODUCTION )9 ! CAPITALI/ MODE ( PRODUCTION ITSELF0 7P4#e#c#b74 ,S9CE ,M>X WROTE ?IS MORE ?AN A HUNDR$ YE>S AGO1 IT SEEMS ?AT )\T KN[+ IT1 WE HAVE BE5 9 ! ]A ( LATE CAPITALISM = A V]Y LONG TIME4 ,! APPE>ANCE ( JO9T-/OCK COMPANIES1 :I* EV5 PREC$$ CAPITALISM1 WAS DESCRIB$ BY ,M>X AS 0PRIVATE PRODUCTION )\T ! CONTROL ( PRIVATE PROP]TY10 AS CAPITALI/ PRODUCTION ?AT IS SUBJECT$ TO COLLECTIVE CONTROL4 ,F> FROM SEE+ 9 ?IS AN 0ORGANIZ+0 ELEM5T ( CAPITALISM1 ,M>X SAW ?IS TYPE ( CAPITAL AS LEAD+ TO ! SY/EM'S FUR!R DISORGANIZATION & COLLAPSE4 ,IT E/ABLI%ES MONOPOLY 9 C]TA9 SPH]ES & !REBY REQUIRES /ATE 9T]F]5CE4 ,IT REPRODUCES A NEW F9ANCIAL >I/OCRACY1 A NEW V>IETY ( P>ASITES 9 ! %APE ( PROMOT]S1 SPECULATORS1 & PURELY NOM9AL DIRECTORS2 A :OLE SY/EM ( SW9DL+ & *EAT+ BY MEANS ( CORPORATION PROMOTION1 /OCK ISSUANCE1 & /OCK SPECULATION4 ,M>X WAS CLE>LY NOT CONC]N$ H]E ) ! QUE/ION LAT] RAIS$ BY ,5GELS1 :E!R !RE WAS NOT ALSO A POSITIVE SIDE TO ! CREATION ( JO9T-/OCK COMPANIES1 S9CE !Y CAN BE SE5 ALSO AS A SORT ( 0REACTION ( ! PRODUCTIVE =CES1 9 !IR MIACT] AS CAPITAL40 ,M>X VIEW$ ! /OCK COMPANIES RA!R AS ONE MORE SIGN ( ! CONTRADICTIONS DEVELOP+ )9 CAPITALISM1 :I* 5G5D] BO? ITS RISE & ITS DECL9E4 ,! MAT]IAL =CES ( PRODUCTION ?AT CAN DEVELOP 9 CAPITALISM >E GOV]N$ & LIMIT$ BY ITS ACCUMULATION2 !Y CANNOT BECOME 9DEP5D5T ( IT & TURN AGA9/ !IR *>ACT] AS CAPITAL4 ,! ONLY =CE ( PRODUCTION ?AT CAN DO ?IS IS ! WORK+ CLASS4 ,IT IS !RE=E NONS5SE TO SUPPOSE ?AT CAPITAL IS ATTEMPT+ TO BREAK ?R\< ! B>RI]S ( ! NATION-/ATE & PRIVATE PROP]TY = ! FUR!R DEVELOPM5T ( ! PRODUCTIVE =CES4 ,ON ! CONTR>Y1 ITS 09T]NATIONALISM0 EXCLUSIVELY S]VES ! NATIONAL CAPITALS & PRIVATE PROP]TY1 ) OR )\T PRIVATE CONTROL4 ,! WORLD M>KET IS ALSO A CAPITAL M>KET1 & IT GOES )\T SAY+ ?AT ) CAPITALI/ EXPANSION1 NATIONAL FIRMS BECOME 9T]NATIONAL ONES4 ,TWO WORLD W>S HAVE 9 ADDITION DEMON/RAT$ ?AT ! FRONTS ON :I* IMP]IALI/ COMPETITION IS F\E /RUCTUR$ NOT BY NATION-/ATES BUT BY SUPRANATIONAL IMP]IALI/ COMB9ES4 ,! WORLD ECONOMY MAKES EV]Y CRISIS A WORLD CRISIS & EV]Y W> A WORLD W>4 ,EV5 :]E W> REMA9S LOCALIZ$ AS A RESULT ( ! MOM5T>ILY SUP]IOR /R5G? ( A P>TICUL> /ATE OR COMB9ATION ( /ATES1 IT NEV]!LESS 9VOLVES ! :OLE WORLD ECONOMY4 ,SUPRANATIONAL COMB9ATIONS ( CAPITALI/ P[]S HAVE EXI/$ = A LONG TIME ON ! LEVEL ( P[] POLITICS AS WELL AS ON ! ECONOMIC LEVEL1 & !Y DID NOT WAIT = ! ADV5T ( 0LATE CAPITALISM40 ,! ,SECOND ,WORLD ,W> CREAT$ FAVORABLE CONDITIONS NOT ONLY = AN ACCEL]AT+ ACCUMULATION BUT1 9 CONNECTION ) ?IS1 = ! MULT9ATIONAL GR[? ( L>GE CORPORATIONS4 ,! ADAPTATION ( ! M>KET TO GR[+ PRODUCTION & ! NEW CAPITAL RELATIONS MADE ! REALIZATION ( PR(ITS EASI]1 & ! :OLE PROCESS L$ TO AN UNEQUALLY DI/RIBUT$ BUT G5]AL 9CREASE 9 PR(IT PRODUCTION4 ,?IS PROCESS1 :I* CAN BE UND]/OOD AS ! 9T]NATIONALIZATION ( CAPITAL & ( PRODUCTION1 IS1 H[EV]1 LIKE EV]Y PREVI\S PHASE ( CAPITALI/ DEVELOPM5T1 LIMIT$ 9 ITS EVOLUTION4 ,IT CAN COLLAPSE ) ANY NEW WORLD CRISIS OR EV5 ) A DECL9E 9 ! RATE ( ACCUMULATION4 ,JU/ AS ! WORLD M>KET FELL AP>T AT AN E>LI] TIME AS A RESULT ( %>P5+ COMPETITION1 MULT9ATIONAL CAPITALISM TOO CAN COME TO AN 5D 9 NEW COMPETITIVE CONFLICTS4 ,BUT EV5 AT ?IS PO9T ! 9CREAS+ 9T]NATIONALIZATION ( CAPITAL CANNOT BE CON/RU$ AS A GR[+ SUSCEPTIBILITY TO ORGANIZATION BUT ONLY AS ! PRES5T-DAY =M ( ! DISORGANIZ$ CAPITALI/ COMPETITION ?AT RESULTS FROM VALUE & SURPLUS-VALUE RELATIONS4 ,N[ AS BE=E1 IT IS ! LAW ( VALUE ?AT DEF9ES ! POSSIBLE ORGANIZATIONAL =MS ( CAPITAL1 & !RE=E ALSO ! IMPOSSIBILITY ( AN 0ORGANIZ$ CAPITALISM40 ,! MULT9ATIONAL CORPORATIONS HAVE NOT VIOLAT$ ! NATIONAL1 & !RE=E IMP]IALI/1 *>ACT] ( CAPITAL4 ,DESPITE ALL !IR COMPLEX 9T]RELATIONS1 ! CONTROL ( !SE CORPORATIONS LIES 9 ! H&S ( DEF9ITE NATIONAL CAPITALS1 (T5 DIRECTLY CONNECT$ ) ! NATIONAL /ATE1 & ! PR(ITS !Y MAKE FL[ BACK TO ! NATIONS FROM :I* ! CORPORATIONS />T \T4 ,/ATELESS MULT9ATIONAL CONC]NS1 AS A TRUE 9T]NATIONALIZATION ( CAPITALI/ PRODUCTION1 MAY BE A DREAM ( ! CAPITALI/S2 ?IS DREAM HAS NO *ANCE TO BECOME REALITY 9 ! CONTEXT ( CAPITAL ACCUMULATION4 ,DEEPLY 9FLU5C$ BY ! 0MULT9ATIONAL =M ( BIG CAPITAL0 & AL>M$ BY ! 0APP>5T0 =MATION ( ?REE BIG IMP]IALI/ P[]S GRAPPL+ = CONTROL ( ! WORLD ECONOMY1 ,M&EL FIR/ EVOKES ! GRUESOME P]SPECTIVES ?IS OP5S UP1 ONLY TO 5D ) ! MORE SOB] /ATEM5T ?AT 0! SURVIVAL ( ! NATIONAL /ATE IS 9SEP>ABLE FROM CAPITALI/ OR IMP]IALI/ COMPETITION 4440 7P4#e#h#i1 TRANSLATION CORRECT$74 ,BUT ! 09T]L9KAGE BETWE5 'ORGANIZ$ CAPITALISM' & G5]ALIZ$ COMMODITY PRODUCTION0 IS = ,M&EL AT ONCE AN 9T]NATIONAL & A NATIONAL PH5OM5ON4 ,ON ! NATIONAL LEVEL IT TAKES ! =M ( /ATE 9T]V5TION 9 ! ECONOMIC ME*ANISM TO AID CAPITALI/ ACCUMULATION4 ,H]E IT IS TO ,M&EL'S ADVANTAGE ?AT HE DI/+UI%ES ! PRODUCTION ( PR(IT FROM ITS REALIZATION1 S9CE /ATE 9T]V5TION 5L>GES PRODUCTION BY WAY ( ! REALIZATION ( SURPLUS VALUE4 ,FROM ?IS IT FOLL[S = ,M&EL ?AT CAPITAL IS ATTEMPT+ TO BREAK ?R\< ! LIMITS SET TO CAPITALI/ PRODUCTION BY PRIVATE PROP]TY4 ,?IS IS ACCOMPLI%$ BY MEANS ( ! >MS 9DU/RY & ! W> ECONOMY4 ,H[EV]1 9 ! LONG RUN AN >MS ECONOMY IS FUNCTIONAL = ! ACCUMULATION ( CAPITAL ONLY IF IT ABSORBS SURPLUS CAPITALS )\T ALSO DEFLECT+ 9TO ! >MAM5TS 9DU/RY CAPITALS NE$$ = ! EXT5D$ REPRODUCTION ( ,DEP>TM5TS ,I & ,I,I .<( ! REPRODUCTION S*EMATA.>4 ,AN >MS & W> ECONOMY C>RI$ BEYOND ?IS PO9T 9CREAS+LY ANNIHILATES ! MAT]IAL CONDITIONS = EXT5D$ REPRODUCTION & ?US 9 ! LONG T]M HAMP]S ! ACCUMULATION ( CAPITAL 9/EAD ( PROMOT+ IT 7P4#a#f#h74 ,9 O!R WORDS1 >MAM5TS >E GOOD = ACCUMULATION BUT BAD :5 OV]DONE4 ,IF ! RATE ( ACCUMULATION FALLS DESPITE ! >MS 9DU/RY1 ?IS DOES NOT CONTRADICT ,M&EL'S !ORY1 = IT ONLY 9DICATES ?AT >MS PRODUCTION HAS BE5 PU%$ TOO F>4 ,TO DEMON/RATE HIS !ORY ,M&EL (F]S A REPRODUCTION S*EMA ( HIS [N1 ) ?REE DEP>TM5TS1 9CLUD+ ONE = ! >MS 9DU/RY 7ALONG ) ?OSE = PRODUC] & CONSUM] GOODS7 :OSE PRODUCTION DOES NOT 5T] 9TO ! MAT]IAL PROCESS ( REPRODUCTION BUT NEV]!LESS1 AS A P>T ( TOTAL PRODUCTION1 PROMOTES ACCUMULATION4 ,WE CAN EASILY IGNORE !SE LITTLE GAMES1 AS !Y ONLY SAY 9 NUMB]S :AT HAS ALREADY BE5 SAID 9 WORDS4 ,ALL ?REE DEP>TM5TS 9 ,M&EL'S S*EMA PRODUCE COMMODITIES & !RE=E SURPLUS VALUE4 ,>MAM5TS >E F9ANC$ \T ( SURPLUS VALUE1 0:I* S]VES NEI!R = ! MA9T5ANCE ( ! CAPITALI/ CLASS NOR = ?AT ( ! WORK+ CLASS1 & 9 :I* CAPITAL F9DS NEW OPPORTUNITIES = CREAT+ & REALIZ+ SURPLUS-VALUE0 7P4#b#h#b1 TRANSLATION AM5D$74 ,IT IS NECESS>Y AT ?IS PO9T TO EXAM9E ,M&EL'S CONCEPTION ( ! LAW ( VALUE4 ,= HIM 0IT HAS ! FUNCTION ( REGULAT+1 ?R\< ! EX*ANGE ( M$IUM-T]M EQUIVAL5T QUANTITIES ( LABOR1 ! DI/RIBUTION ( ! ECONOMIC RES\RCES AT ! DISPOSAL ( SOCIETY 9TO ! V>I\S SPH]ES ( PRODUCTION1 ACCORD+ TO ! FLUCTUATIONS ( SOCIALLY EFFECTIVE DEM&1 I4E41 ACCORD+ TO ! /RUCTURE ( CONSUMPTION0 7P4#g74 ,IT IS ?US AN EQUILIBRIUM ME*ANISM1 :I* BR+S PRODUCTION & CONSUMPTION 9TO H>MONY4 ,ACCORD+LY1 ,M&EL MA9TA9S1 FOLL[+ ,ROSDOLSKY & CIT+ ,M>X1 ?AT 0! PRODUCTION ( CON/ANT CAPITAL NEV] OCCURS = ITS [N SAKE BUT ONLY BECAUSE MORE ( IT IS NE$$ 9 ! SPH]ES ( PRODUCTION :OSE PRODUCTS 5T] 9DIVIDUAL CONSUMPTION0 7P4#b#g#i N474 ,S9CE ! RIS+ ORGANIC COMPOSITION ( CAPITAL MEANS ?AT ALWAYS RELATIVELY FEW] WORK]S >E NEWLY HIR$1 SOCIAL CONSUMPTION CANNOT 9CREASE SUFFICI5TLY TO ABSORB ALL ! COMMODITIES PRODUC$ = CONSUMPTION4 ,?US ! GR[+ ORGANIC COMPOSITION ( CAPITAL 5G5D]S ! REALIZATION PROBLEM1 AL?\< IT IS NOT EASY TO SEE H[ ! LAW ( VALUE1 :I* IS SUPPOS$LY ADJU/+ PRODUCTION TO CONSUMPTION1 CAN P]MIT SU* A GR[? ( ! ORGANIC COMPOSITION ( CAPITAL4 ,:5 ! CON/ANT CAPITAL CAN ONLY GR[ PROVID$ ?AT IT IS 9VE/$ 9 ! SPH]ES ( PRODUCTION S]V+ CONSUMPTION1 !N NOT ! VALORIZATION ( CAPITAL BUT SOCIAL CONSUMPTION IS GOV]N+ PRODUCTION4 ,/ILL1 !RE IS ! QUOTATION FROM ,M>X - ONLY IT HAS BE5 9CORRECTLY UND]/OOD4 #f ,TO PRODUCE CAPITAL ! CAPITALI/ MU/ HAVE COMMODITIES PRODUC$ ?AT HAVE EX*ANGE VALUE = HIM & USE VALUE = O!RS4 ,! USE VALUE IS REALIZ$ 9 CONSUMPTION4 ,JU/ AS ! CAPITALI/ PRODUCTIVELY CONSUMES ! USE VALUE ( LABOR P[]1 ! RESULT+ COMMODITIES 5T] 9 ONE =M OR ANO!R 9TO SOCIAL CONSUMPTION & !RE DISAPPE>4 ,:AT DOES NOT DISAPPE> IS ! P>T ( ! SURPLUS VALUE1 OR SURPLUS PRODUCT1 :I* S]VES AS CON/ANT CAPITAL 9 ! EXP&$ REPRODUCTION ( ! RELATIONS ( EXPLOITATION4 ,= CAPITAL TO BE ACCUMULAT$1 USE VALUES MU/ BE PRODUC$ & F9D A CORRESPOND+ DEM& ON ! P>T ( ?OSE :OM ,M&EL CALLS ! 0F9AL CONSUM]S40 ,IT %\LD NOT BE CONCLUD$ FROM ?IS H[EV]1 ?AT ! 0F9AL CONSUM]0 ACTUALLY DET]M9ES ! MOVEM5T ( CAPITAL4 ,9 O!R WORDS1 ! 0F9AL CONSUM]0 HAS NO?+ TO DO ) ! 0TOO SL[LY GR[+ SUM ( WAGES = CONSUM] GOODS10 AS ,M&EL IMAG9ES4 ,= EA* CAPITALI/1 REG>DLESS ( ! K9D ( GOODS HE PRODUCES1 ! EX*ANGE VALUE ( HIS WORK]S IS A CO/ PRICE ?AT HE ATTEMPTS TO KEEP AS F> AS POSSIBLE BEL[ ITS USE VALUE4 ,BUT = ! CAPITALI/S PRODUC+ CONSUM] GOODS1 ALL WORK]S >E ALSO CONSUM]S TO :OSE DEM& !Y >E RESPOND+4 ,! HI<] ! WAGES PAID TO O!R CAPITALI/S' WORK]S1 & ! L[] ?OSE HE PAYS HIS [N EMPLOYES1 ! BETT] CAN HIS PR(IT BE REALIZ$ ON ! M>KET4 ,BUT AS ?IS HOLDS = EV]Y CAPITALI/1 ! WORK]S AS A CLASS RECEIVE ONLY !IR EX*ANGE VALUE1 :I* IS ! EQUIVAL5T ( A SMALL] OR GREAT] QUANTITY ( COMMODITIES1 :ILE ! CAPITALI/S RECEIVE ! %>E ( PRODUCTION1 ALSO REPRES5T$ 9 PRODUCTS1 ?AT CORRESPONDS TO SURPLUS VALUE1 :I* C]TA9LY ALSO REQUIRES A 0F9AL CONSUM]0 BUT CANNOT F9D HIM 9 ! WORK+ CLASS4 ,! REALIZATION ( SURPLUS VALUE ?US HAS NO?+ TO DO ) WORK+-CLASS CONSUM]S BUT MU/ BE ACCOMPLI%$ BY CAPITAL ITSELF4 ,IF ! WORK]S PRODUC$ NO SURPLUS VALUE1 !RE W\LD BE NO CAPITALI/ ECONOMY2 IF ! CAPITALI/S ATE UP ! 5TIRE SURPLUS VALUE1 WE W\LD 9DE$ HAVE CAPITALI/ PRODUCTION1 BUT NOT ! PRODUCTION ( CAPITAL4 ,! LATT] PRESUPPOSES ! ACCUMULATION ( A PORTION ( ! SURPLUS VALUE4 ,?IS PORTION MU/ FROM ! />T HAVE ! =M ( NEW MEANS ( PRODUCTION1 EV5 IF !Y >E US$ 9 TURN TO PRODUCE COMMODITIES 5T]+ 9TO CONSUMPTION4 ,CAPITAL PRODUCES 9 PR9CIPLE NEI!R MEANS ( PRODUCTION = ! PRODUCTION ( MEANS ( PRODUCTION NOR MEANS ( PRODUCTION = ! PRODUCTION ( CONSUM] GOODS4 ,BO? >E ONLY MEANS TO ! 5D ( TRANS=M+ A GIV5 CAPITAL 9TO A L>G] ONE4 ,S9CE ! PRODUCTION ( CONSUM] GOODS IS TI$ TO ?AT ( PRODUC] GOODS & VICE V]SA1 ! DEM& = EI!R DEP5DS ON ! G5]AL MOVEM5T ( CAPITAL4 ,) ACCEL]AT+ ACCUMULATION ! DEM& = MEANS ( PRODUCTION WILL 9CREASE RELATIVE TO ?AT = CONSUM] GOODS1 S9CE ! MASS ( SURPLUS VALUE AT ANY GIV5 MOM5T HAS A FIX$ MAGNITUDE4 ,:AT IS ACCUMULAT$ CANNOT BE CONSUM$1 AL?\< ACCUMULATION1 ?R\< ! GR[? & IMPROVEM5T ( ! MEANS ( PRODUCTION1 ?R[S MORE CONSUM] GOODS 9TO CIRCULATION4 ,! PROCESS ( ACCUMULATION MU/ !RE=E BE AT ! SAME TIME A PROCESS EXT5D+ ! CAPITALI/ MODE ( PRODUCTION2 ! WORLD M>KET IS FROM ! />T ! CONDITION ( CAPITALI/ EXPANSION4 ,! GR[? ( ! MEANS ( PRODUCTION ?R\< ACCUMULATION & ! HI<] PRODUCTIVITY ( LABOR LEADS TO ! PRODUCTION ( A CON/ANTLY GR[+ MASS ( COMMODITIES1 & ! ACCUMULATION ( CAPITAL PROCE$S VIA ! REALIZATION ( ?IS MASS ( COMMODITIES4 ,! 9CREASE 9 LABOR PRODUCTIVITY HAS 9 ITSELF NO?+ TO DO ) CAPITALISM4 ,PRODUCTIVITY GREW 9 PRECAPITALI/ TIMES1 AL?\< V]Y SL[LY1 & WILL ALSO GR[ AFT] ! ABOLITION ( CAPITALISM4 ,! :OLE DEVELOPM5T ( SOCIETY IS BAS$ ON ! 9CREAS+ PRODUCTIVITY ( LABOR4 ,?IS G5]AL PROCESS IS ACCOMPLI%$ UND] ! CAPITALI/ RELATIONS ( PRODUCTION 9 ! SPECIFIC =M ( CAPITALI/ COMPETITION4 ,IT IS H[EV] NOT COMPETITION ?AT 5G5D]S ! DEVELOPM5T ( ! PRODUCTIVE =CES BUT ! DEVELOPM5T ( ! PRODUCTIVE =CES ?AT LEADS TO CAPITALI/ COMPETITION4 ,ONCE ?IS PROCESS HAS BEGUN1 CAPITALI/ COMPETITION 5ORM\SLY /IMULATES ! GR[? ( ! PRODUCTIVITY ( LABOR4 ,EV]Y CAPITAL1 IF IT IS TO REMA9 A CAPITAL1 MU/ 9CREASE ITS PRODUCTIVITY & ?US ACCUMULATE CAPITAL4 ,?IS REQUIRES AN 9CREAS+ %>E ( ! SURPLUS VALUE & LEAVES A RELATIVELY DIM9I%+ %>E = CAPITALI/ CONSUMPTION4 ,AL?\< ! QUANTITY ( CONSUM] GOODS TO BE REALIZ$ 9CREASES & ALL[S ! CAPITALI/ AN EV] MORE LUXURI\S EXI/5CE1 AN 9CREAS+ P>T ( ! SURPLUS VALUE1 ITS QUANTITY DET]M9$ BY ! PREVI\S LEVEL ( ACCUMULATION1 IS CAPITALIZ$4 ,MORE MEANS ( PRODUCTION & FEW] >TICLES ( CONSUMPTION >E REQUIR$4 ,! PRODUCTION ( COMMODITIES %IFTS 9 RESPONSE TO ! *ANG$ DEM&4 ,) RESPECT TO ! REALIZATION ( SURPLUS VALUE - & FROM ! /&PO9T ( ! TOTAL CAPITAL ! REALIZATION PROBLEM CONC]NS ONLY ! SURPLUS VALUE - ?IS IS ACCOMPLI%$ ?R\< CAPITALI/S' CONSUMPTION & ! ACCUMULATION ( CAPITAL4 ,SUPPLY & DEM& ADAPT !MSELVES TO ! ACCUMULATION NE$S ( CAPITAL4 ,IT IS ( C\RSE TRUE ?AT 9 ! F9AL ANALYSIS1 ! 9CREAS$ MEANS ( PRODUCTION >E US$ TO PRODUCE CONSUM] GOODS & ?AT !SE MU/ F9D A M>KET IF !Y >E TO BE TRANS=M$ BACK AGA9 9TO CAPITAL4 ,BUT ?IS M>KET >ISES FROM ! DYNAMIC ( CAPITAL1 FROM ITS CONT9U+ & BROAD5+ ACCUMULATION 9 ! C\RSE ( :I* A GR[+ QUANTITY ( SURPLUS VALUE IS 9VE/$ 9 MEANS ( PRODUCTION4 ,CAPITAL ?US CREATES ITS [N M>KET & REALIZES ITS PR(IT 9 ACCUMULATION & 9 GR[+ CAPITALI/ CONSUMPTION4 ,?IS PROCESS IS ONLY POSSIBLE BECAUSE ! WORK]S >E EXCLUD$ FROM ! REALIZATION PROCESS ( CAPITAL4 ,IF ! REALIZATION ( SURPLUS VALUE W]E TO H+E ON ITS 9CREAS+ CONSUMPTION1 ?IS W\LD MEAN A CORRESPOND+ LOSS ( PR(IT = CAPITAL & W\LD !RE=E BE ACCOMPANI$ BY A L[] RATE ( ACCUMULATION & DECREAS$ CAPITALI/ CONSUMPTION4 ,BUT ! VALUE *>ACT] ( LABOR P[] EXCLUDES ?IS POSSIBILITY & RES]VES ! SURPLUS VALUE = CAPITAL AS ITS 0F9AL CONSUM]40 ,! IDEA ?AT CAPITAL C\LD BE UNABLE TO USE ITS SURPLUS VALUE & SO REALIZE IT IS H>D TO UND]/&4 ,EV5 ASIDE FROM ! COMPULSION TO ACCUMULATE1 ! DESIRE TO ACCUMULATE IS G5]ALLY UNLIMIT$4 ,NO CAPITALI/ EV] F9DS HIMSELF 0TOO RI*10 & HIS WEAL? REPRES5TS CAPITAL = HIM4 ,ACCUMULATION BR+S HIM A L>G] MASS ( PR(IT1 :I* MAKES POSSIBLE HIS CONT9U$ ACCUMULATION4 ,! USE ( ADDITIONAL LABOR P[]1 HIS [N 9CREAS$ CONSUMPTION1 & ! EXT5SION ( ! WORLD M>KET MAKE IT POSSIBLE = ! CAPITALI/ TO TRANS=M ! UNCONSUM$ PORTION ( SURPLUS VALUE DIRECTLY 9TO ADDITIONAL CAPITAL 9 ! EXPECTATION ( FUR!R EXPANSION & IRRESPECTIVE ( ! ACTUAL M>KET SITUATION4 ,S9CE PRODUCTION MU/ PREC$E CONSUMPTION 9 ANY CASE1 ! PRODUCTION ( MEANS ( PRODUCTION IS NOT LIMIT$ BY ! CURR5T M>KET DEM& = CONSUM] GOODS4 ,SO LONG AS ! RATE ( SURPLUS VALUE KEEPS /EP ) ACCUMULATION OR EXCE$S IT1 ! ACCUMULATION ( CAPITAL MEANS NO MORE ?AN ! EXT5SION ( ! CAPITALI/ MODE ( PRODUCTION ITSELF3 CAPITAL'S CONQUE/ ( ! WORLD4 ,IT CONT9U\SLY CREATES NEW PR]EQUISITES = CAPITALI/ PRODUCTION1 LONG BE=E ! OLD ONES HAVE COMPLET$ ! METAMORPHOSIS FROM ! COMMODITY =M ( CAPITAL 9TO ! CAPITAL =M1 SO ?AT ! ACCUMULATION ( CAPITAL ALWAYS \T/RIPS CONSUMPTION & DET]M9ES ITS EXT5T4 ,CAPITAL W\LD HAVE HAD A DIFF]5T HI/ORY IF ITS ACCUMULATION HAD REALLY DEP5D$ ON ! REALIZATION ( SURPLUS VALUE BY ?OSE :OM ,M&EL CALLS ! 0F9AL CONSUM]S40 ,9 REALITY ACCUMULATION HAS ALWAYS PROCE$$ AT ! CO/ ( CONSUMPTION1 :I*1 :ILE GR[+1 LAGG$ BEH9D ! EXPANSION ( CAPITAL4 ,:ILE ! PRODUCTION ( CON/ANT CAPITAL MU/ ULTIMATELY LEAD TO ! PRODUCTION ( CONSUM] GOODS1 ?IS DOES NOT MEAN ?AT IT IS ONLY EMPLOY$ :5 !RE IS A CORRESPOND+ DEM& = CONSUM] GOODS4 0,S9CE ! AIM ( CAPITAL IS NOT TO M9I/] TO C]TA9 WANTS1 BUT TO PRODUCE PR(IT1 & S9CE IT ACCOMPLI%ES ?IS PURPOSE BY ME?ODS :I* ADAPT ! MASS ( PRODUCTION TO ! SCALE ( PRODUCTION1 NOT VICE V]SA1 A RIFT MU/ CONT9UALLY 5SUE BETWE5 ! LIMIT$ DIM5SIONS ( PRODUCTION UND] CAPITALISM & A PRODUCTION :I* =EV] T5DS TO EXCE$ ?IS IMMAN5T B>RI]4 0 ,?US1 ACCORD+ TO ,M>X1 ACTUALLY TOO MANY MEANS ( LABOR & NECESSITIES ( LIFE >E PRODUC$ AT TIMES TO P]MIT ( !IR S]V+ AS MEANS = ! EXPLOITATION ( LABOR]S AT A C]TA9 RATE ( PR(IT4 ,TOO MANY COMMODITIES >E PRODUC$ TO P]MIT ( A REALIZATION & CONV]SION 9TO NEW CAPITAL ( ! VALUE & SURPLUS VALUE CONTA9$ 9 !M UND] ! CONDITIONS ( DI/RIBUTION & CONSUMPTION PECULI> TO CAPITALI/ PRODUCTION1 I4E41 TOO MANY TO P]MIT ( ! CONSUMMATION ( ?IS PROCESS )\T CON/ANTLY RECURR+ EXPLOSIONS ,BUT !SE CONTRADICTIONS & ! EXPLOSIONS FUEL$ BY !M >E ALWAYS ! CONSEQU5CE ( A SUCCESSFUL P]IOD ( ACCUMULATION DUR+ :I* ! SAME CONTRADICTIONS HAVE PROVID$ AN IMPETUS = ACCUMULATION4 ,! LIMIT ( ! CAPITALI/ MODE ( PRODUCTION IS1 ACCORD+ TO ,M>X1 TO BE SE5 9 ! FACT ?AT ! DEVELOPM5T ( ! PRODUCTIVITY ( LABOR CREATES 9 ! FALL+ RATE ( PR(IT A LAW :I* AT A C]TA9 PO9T COMES 9TO ANTAGONI/IC CONFLICT ) ?IS DEVELOPM5T & MU/ BE OV]COME CON/ANTLY ?R\< CRISES 444.<&.> ?AT ! EXPANSION OR CONTRACTION ( PRODUCTION >E DET]M9$ BY ! APPROPRIATION ( UNPAID LABOR & ! PROPORTION ( ?IS UNPAID LABOR TO MAT]IALIZ$ LABOR 9 G5]AL1 OR1 TO SPEAK ! LANGUAGE ( CAPITAL1 BY PR(IT & ! PROPORTION ( ?IS PR(IT TO ! EMPLOY$ CAPITAL1 ?US BY A DEF9ITE RATE ( PR(IT444 ,ONLY AT ! PO9T :]E ! ORGANIC COMPOSITION ( CAPITAL1 RIS+ AS A RESULT ( ACCUMULATION1 L[]S ! RATE ( PR(IT IS ?IS OV]-ACCUMULATION ACCOMPANI$ BY ! OV]PRODUCTION ( COMMODITIES1 ! DISCREPANCY BETWE5 PRODUCTION & CONSUMPTION1 & ! REALIZATION PROBLEM4 ,!SE DIFFICULTIES >E ALWAYS IMMAN5T 9 CAPITALI/ PRODUCTION1 )\T !REBY BE+ AN OB/ACLE TO ACCUMULATION1 UNTIL ! LATT] ITSELF BECOMES AN OB/ACLE4 ,! CESSATION ( ACCUMULATION 9DICATES ?AT IT WAS DEP5D5T NOT ONLY ON ! PR(ITABILITY ( CAPITAL BUT ALSO ON ! RE/RICTION ( CONSUMPTION ?IS 9VOLVES1 :I* APPE>S ON ! M>KET AS A PROBLEM ( REALIZATION4 ,?IS DOES NOT MEAN ?AT ! CAPITALI/ CRISIS ?AT APPE>S AS OV]PRODUCTION CAN BE OV]COME BY AN 9CREASE 9 CONSUMPTION4 ,! DIFFICULTIES ( REALIZATION ( SURPLUS VALUE MU/ BE OV]COME BY ! CONT9UATION ( ! ACCUMULATION PROCESS4 ,! SOLUTION MU/ BE F\ND 9 PRODUCTION & NOT 9 ! M>KET4 ,SURPLUS VALUE MU/ BE 9CREAS$ SO ?AT ! MASS ( PR(IT CAN BE ADJU/$ TO CAPITALI/ EXPANSION DESPITE ! CONT9U+ RELATIVE DECL9E ( SOCIAL CONSUMPTION4 ,! CRISIS ( OV]PRODUCTION ITSELF BECOMES A MEANS TO ?IS 5D1 ON ! ONE H& ?R\< ! DEVALUATION ( CAPITAL1 & ON ! O!R ?R\< ! CONT9U+ CONC5TRATION ( CAPITAL & ! ALT]ATION ( ! CAPITAL /RUCTURE CONNECT$ ) IT1 :I* LEAD TO A RISE 9 ! RATE ( PR(IT4 ,IT IS !RE=E POSSIBLE TO %[ AB/RACTLY1 )\T 9TRODUC+ ! REALIZATION PROBLEM1 ?AT ! LIMITS ( CAPITALI/ PRODUCTION >E A DIRECT CONSEQU5CE ( VALUE PRODUCTION4 ,EV5 ON ! ASSUMPTION ?AT CAPITAL CAN SELL ALL ITS COMMODITIES & REALIZE !IR FULL SURPLUS VALUE1 :ILE ! WORK] RECEIVES ! VALUE ( HIS LABOR P[]1 ) ! RIS+ ORGANIC COMPOSITION ( CAPITAL PR(IT MU/ DRY UP AT ?AT PO9T ( ACCUMULATION AT :I* ! RATE ,( EXPLOITATION ( ! LABOR =CE EMPLOY$ BY CAPITAL CAN NO LONG] BE 9CREAS$4 ,9 REALITY ?IS DECISIVE CONTRADICTION ( CAPITALI/ PRODUCTION APPE>S 9 ! =M ( A S]IES ( CONTRADICTIONS FL[+ FROM IT1 SU* AS ! ACTUAL DIFFICULTY ( REALIZ+ SURPLUS VALUE1 ! DIFF]5CE BETWE5 PRODUCTION & CONSUMPTION1 & ! V>I\S DISPROPORTIONALITIES ( ! ECONOMY1 :I* >E ALL SPECIFIC TO ?IS SY/EM & CANNOT BE OV]COME )9 IT4 ,?US ! REALIZATION PROBLEM APPE>S 9 REALITY NOT 9 ! =M 9 :I* IT >ISES FROM ! CAPITALI/ RELATIONS ( PRODUCTION - NAMELY AS A PROBLEM EXCLUSIVELY ( ! REALIZATION ( SURPLUS VALUE - BUT AS A PROBLEM ( ! REALIZATION ( COMMODITY VALUES1 9CLUD+ BO? VALUE & SURPLUS VALUE4 ,IF A P>T ( ! SURPLUS VALUE CANNOT BE REALIZ$ AS PR(IT1 A P>T ( ! VALUE CAN ALSO NOT BE REALIZ$1 SO ?AT ! PROBLEM ( REALIZATION APPE>S AS G5]AL OV]PRODUCTION4 ,IF IT W]E TRUE ?AT1 AS ,M&EL SAYS1 0! DIFFICULTY ( REALIZATION CAN ULTIMATELY BE RESOLV$ ONLY BY 9CREAS+ ! MONET>ILY EFFECTIVE DEM& = CONSUM] GOODS0 7P4#b#h#a71 IT C\LD NEV] BE RESOLV$1 BUT AT MO/ HIDD5 TEMPOR>ILY BY AN ACCEL]ATION ( ACCUMULATION4 ,M&EL ALSO KN[S ?IS4 ,?IS 0ULTIMATE0 CASE CANNOT BE REALIZ$1 S9CE 0?IS RUNS C\NT] TO ! :OLE LOGIC ( ! CAPITALI/ MODE ( PRODUCTION0 7P4#b#h #a74 ,BUT ?IS 0ULTIMATE0 CASE CONTA9S ! KEY TO ,M&EL'S !ORY ( ! REALIZATION ( SURPLUS VALUE BY ! >MAM5TS 9DU/RY4 ,:AT CANNOT BE ACCOMPLI%$ BY ! 0F9AL CONSUM]S0 APPE>S TO HIM TO BE TAK5 C>E ( BY ! >MS 9DU/RY4 #g ,ACCORD+ TO ,M&EL1 IT MAKES NO DIFF]5CE ) RESPECT TO ! CREATION ( VALUE :E!R A COMMODITY IS PRODUC$ = ! CONSUMPTION ( ! WORK]S1 ! CAPITALI/S1 OR ! /ATE4 0,= ,M>X10 ,M&EL EXPLA9S1 0IT IS AB/RACT LABOR ?AT CREATES VALUE1 I4E41 LABOR :I* AS A P>T ( ! TOTAL SOCIAL LABOR CAPACITY1 PRODUCES A COMMODITY :I*1 IRRESPECTIVE ( ITS USE-VALUE1 F9DS ITS EQUIVAL5T ON ! M>KET BECAUSE IT FULFILLS A SOCIAL NE$0 7P4#b#i#b1 TRANSLATION CORRECT$74 ,?US ! DOMA9 ( VALUE PRODUCTION IS ! SAME AS ?AT ( COMMODITY PRODUCTION1 SO ?AT ! RATE ( PR(IT DEP5DS ON ! MASS ( SURPLUS LABOR 0SET 9 MOTION 9 ! PRODUCTION ( COMMODITIES BY SOCIAL CAPITAL1 IRRESPECTIVE ( ! SECTOR0 9CLUD+1 E4G41 ! >MAM5TS SECTOR - 09 :I* ?IS OCCURS0 7P4#b#i#b74 ,WE CAN IGNORE ,M&EL'S REFLECTIONS ON :E!R ! >MS SECTOR1 AS ! ?IRD DEP>TM5T ( HIS REPRODUCTION S*EMA1 HAS A HI<] OR L[] ORGANIC COMPOSITION ( CAPITAL & ON ! POSITIVE OR NEGATIVE 9FLU5CE ( ?IS ON ! AV]AGE RATE ( PR(IT4 ,= 9 REALITY ! >MS 9DU/RY DOES NOT REPRES5T A P>TICUL> SECTOR BUT EXI/S )9 CAPITALI/ PRODUCTION 9 G5]AL4 ,:AT IS IMPORTANT TO US >E ! QUE/IONS ( :E!R ! >MAM5TS 9DU/RY IS REALLY A CASE ( COMMODITY PRODUCTION1 :E!R !SE COMMODITIES >E EX*ANG$ = O!RS1 & :E!R !IR PUTATIVE VALUE 5T]S 9TO ! TOTAL VALUE4 ,M&EL ANSW]S !SE QUE/IONS 9 ! AFFIRMATIVE1 BUT ) ! QUALIFICATION ?AT ?IS HOLDS ONLY UND] C]TA9 CONDITIONS1 FROM :I* IT ACTUALLY W\LD FOLL[ ?AT ! >MS 9DU/RY IS NOT AN ORD9>Y CASE ( COMMODITY TRAFFICK+ AT ALL4 ,! QUALIFICATION ASS]TS ?AT ,M&EL'S ANSW] HOLDS ONLY 0SO LONG AS !RE >E UNUS$ RES]VES AVAILABLE 9 ! ECONOMY10 & S9CE 0?IS IS ! />T+ PO9T ( ! 'P]MAN5T >MS 9DU/RY' NO P>TICUL> PROBLEMS >E CREAT$ BY ! SPECIFIC USE-VALUE ( ! ADDITIONAL PRODUCTION 4440 7P4 #b#i#d1 TRANSLATION CORRECT$74 ,!N FOLL[S A FUR!R QUALIFICATION1 NAMELY ?AT ! ACCEL]ATION ( CAPITAL ACCUMULATION MADE POSSIBLE BY >MS PRODUCTION IS ONLY SUCCESSFUL :5 ! 5TIRE SURPLUS CAPITAL 7! UNUS$ RES]VES7 IS SWIT*$ 9TO WEAPONS PRODUCTION 0GRADUALLY RA!R ?AN SUDD5LY0 7P4#b#i#e74 ,:5 ?IS IS ! CASE1 PREVI\SLY IDLE CAPITAL CAN BE VALORIZ$ BY ! >MS 9DU/RY4 ,! CONCEPT ( 0AB/RACT LABOR0 REF]S TO ! TOTAL SOCIAL LABOR TIME1 9TO :I* ALL P>TICUL> LABOR TIMES 5T] & 9 :I* !Y >E DISSOLV$4 ,IT DOES NOT REF] TO ! DI/RIBUTION ( VALUE OR SURPLUS VALUE1 :I* DEP5DS ON ! CONCRETE RELATIONS ( CAPITALI/ PRODUCTION1 DET]M9$ BY ! USE VALUES ( ! COMMODITIES4 ,UND] ! ASSUMPTION ?AT ALL LABOR PRODUCES VALUE1 ! TOTAL LABOR TIME EQUALS ! TOTAL VALUE1 :I* IS DIVID$ 9TO VALUE & SURPLUS VALUE4 ,S9CE ! VALUE ( A COMMODITY MU/ BE REALIZ$ ON ! M>KET1 EV]Y COMMODITY MU/ F9D A BUY]1 SO ?AT 9 CON/ANTLY *ANG+ =MS1 LABOR-TIME QUANTITIES CAN EX*ANGE AGA9/ LABOR-TIME QUANTITIES4 ,! 0COMMODITIES0 PRODUC$ 9 ! >MS 9DU/RY1 H[EV]1 >E EX*ANG$ NEI!R AGA9/ ! LABOR-TIME VALUES ( ! WORK+ CLASS NOR AGA9/ ! SURPLUS VALUE ( ! CAPITALI/S4 ,AP>T FROM ! 9SIGNIFICANT PORTION ( WEAPONS PRODUCTION ?AT 5T]S 9TO PRIVATE CONSUMPTION1 ! /ATE IS ! BUY] ( !SE COMMODITIES4 ,( C\RSE1 ! /ATE CANNOT EX*ANGE ITS [N 0AB/RACT LABOR0 = ! 0AB/RACT LABOR0 CONTA9$ 9 >MAM5TS BECAUSE IT PRODUCES NO?+ AT ALL4 ,ITS 9COME IS D]IV$ FROM TAXATION ( ! SOCIAL 9COME YIELD$ BY ! PRODUCTION ( VALUE & SURPLUS VALUE4 ,EV5 ,M&EL KN[S ?AT /ATE SP5D+ 79CLUD+ ! PUR*ASE ( WEAPONRY7 REPRES5TS A D$UCTION FROM WAGES & PR(ITS = :I* !RE IS NO VALUE C\NT]P>T1 & ?AT IT ?US DIM9I%ES WAGES & PR(ITS & !RE=E CANNOT *ANGE ! TOTAL VALUE4 ,BUT 9 HIS EYES ?IS IS TRUE ONLY 9 ! CASE ( FULL EMPLOYM5T & ! UTILIZATION ( ALL PRODUCTIVE RES\RCES4 ,SO LONG AS SOME ( !M >E IDLE1 VALUE & SURPLUS VALUE WILL BE 5L>G$ & ACCUMULATION 5C\RAG$ BY ! ADDITIONAL PRODUCTION = MILIT>Y PURPOSES4 ,! ADDITIONAL 0COMMODITY VALUE0 WILL BE REALIZ$ BY /ATE PUR*ASES4 ,BUT !N AS BE=E ! /ATE HAS ONLY TAXES & BORR[$ FUNDS AT ITS DISPOSAL1 :I* GIVES RISE TO A GR[+ NATIONAL DEBT1 :I* 9 TURN CAN BE F9ANC$ & PAID (F ONLY ?R\< TAXES4 ,AL?\< PRODUCTION IS 9CREAS$ BY MILIT>Y SP5D+ ! TOTAL 0NEWLY CREAT$ VALUE0 MU/ BE C\NT$ AS A D$UCTION FROM ! PROCE$S ( CAPITALI/ COMMODITY PRODUCTION AS !RE IS NO M>KET = ! PRODUCTS ( ! >MAM5TS 9DU/RY ,9 OPPOSITION TO ?IS ,M&EL SPEAKS ( 0! GR[+ SIGNIFICANCE ( ! >MS TRAFFIC 9 WORLD TRADE-A BUS9ESS :I*1 9CID5TALLY1 %[S H[ NONS5SICAL IT IS NOT TO TREAT ! PRODUCTION ( WEAPONS AS COMMODITY PRODUCTION & NOT TO SEE ! 9VE/M5TS 9 ?IS SECTOR AS ACCUMULATION ( CAPITAL0 7P4#c#h74 ,IT ESCAPES HIM ?AT ?IS ALT]S NO?+ 9 ! CASE3 9 9T]NATIONAL TRADE TOO IT IS GOV]NM5TS :O BUY ! WEAPONS1 PAY+ = !M \T ( TAXES1 SO ?AT H]E TOO = CAPITAL AS A :OLE >MS PRODUCTION IS NOT MAT*$ BY REV5UE CREAT$ 9 PRODUCTION4 ,M&EL IMAG9ES ?AT PRODUCTION1 JU/ BECAUSE IT IS C>RI$ ON 9 CAPITALISM1 MU/ BE CAPITALI/ PRODUCTION & ! PRODUCTION ( SURPLUS VALUE4 ,IT IS C]TA9LY TRUE ?AT ! >MS 9DU/RY MAKES PR(ITS & ACCUMULATES CAPITAL & APPE>S 9 NO WAY DIFF]5T FROM O!R BUS9ESSES4 ,BUT ITS PR(ITS & NEW 9VE/M5TS D]IVE NOT FROM COMMODITY CIRCULATION BUT FROM /ATE EXP5DITURES1 :I* >E DRAWN FROM A P>T ( ! REALIZ$ VALUE & SURPLUS VALUE ( O!R CAPITALS4 ,?IS IS NOT SO OBVI\S A L>G] P>T ( WEAPONS PRODUCTION IS F9ANC$ BY LOANS RA!R ?AN DIRECTLY BY TAXATION1 SO ?AT ! BURD5 ON PRIVATE CAPITAL IS SPREAD OV] A LONG P]IOD ( TIME4 ,CAPITAL GIVES ! GOV]NM5T CR$IT :I* CAN 9DE$ 5L>GE PRODUCTION BUT CAN YIELD NO ADDITIONAL SURPLUS VALUE S9CE ! GOODS ( ! >MS 9DU/RY MU/ BE PAID = \T ( ! SURPLUS VALUE ( ! CR$ITORS ,IF1 ACCORD+ TO ,M&EL ! >MS 9DU/RY MEANS A D$UCTION FROM WAGES & PR(ITS UND] CONDITIONS ( FULL EMPLOYM5T & ! FULL UTILIZATION ( PRODUCTIVE RES\RCES1 ?IS IS ONLY TO SAY ?AT IT PRODUCES NO VALUE & SURPLUS VALUE ( ITS [N & SO CANNOT BE DESCRIB$ AS COMMODITY PRODUCTION4 ,?IS CANNOT *ANGE JU/ BECAUSE A PORTION ( CAPITAL IS IDLE4 ,JU/ AS ! CAPITALI/ VALORIZATION & REALIZATION PROBLEM CANNOT BE OV]COME BY ! 9CREASE 9 CONSUMPTION1 IT CAN ALSO NOT BE VANQUI%$ BY MEANS ( ! >MS 9DU/RY1 :OSE PRODUCTS1 EXACTLY AS 9 ! CASE ( 9CREAS$ CONSUMPTION1 >E NOT TRANS=M$ 9TO NEW CAPITAL BUT SIMPLY DISAPPE>4 ,! >MS 9DU/RY1 LIKE ALL O!R /ATE EXP5DITURES ?AT >E NOT COV]$ BY ! /ATE'S [N PRODUCTION1 FALLS1 FROM ! SOCIAL PO9T ( VIEW1 EXCLUSIVELY 9TO ! SPH]E ( CONSUMPTION & NOT 9TO ?AT ( ACCUMULATION4 ,NOT)/&+ ! 0VALUE & SURPLUS-VALUE-PRODUC+0 *>ACT] ( ! >MAM5TS 9DU/RY AS 0ONE ( ! MO/ IMPORTANT LEV]S = ! SOLUTION ( ! PROBLEM ( SURPLUS CAPITAL10 ,M&EL COMES MO/ AMAZ+LY TO ! CONCLUSION ?AT 0! MORE ! DEVELOPM5T ( ! >MS ECONOMY ?REAT5S TO R$UCE ! GROSS PR(IT ( ! MAJOR CORPORATIONS 79 O!R WORDS1 ! HI<] ! TAX RATE IT DET]M9ES7 ! /RONG] WILL BE ! RESI/ANCE ( !SE COMPANIES TO ANY FUR!R EXT5SION ( IT0 7P4#c#c74 ,N[ IT IS NO LONG] TRUE ?AT IT IS ALL ! SAME FROM ! VIEWPO9T ( VALUE =MATION :I* K9D ( COMMODITY IS PRODUC$1 ?AT >MS PRODUCTION 9VOLVES 0AB/RACT LABOR0 :I* CREATES VALUE & ACCUMULATES CAPITAL4 ,IF IT W]E SO1 !N IT W\LD BE ALL ! SAME TO CAPITAL H[ F> ! >MS BUS9ESS DEVELOP$1 S9CE ?IS W\LD BE EQUIVAL5T TO ! DEVELOPM5T ( VALUE PRODUCTION4 ,BUT WE CAN CONCLUDE DISCUSSION ( ?IS !ME H]E1 S9CE ,M&EL1 AS IS PROP] = A REVOLUTION>Y1 EXPLA9S AFT] ALL ?AT ! >MS 9DU/RY1 LIKE CAPITALISM 9 G5]AL1 HAS OBJECTIVE SOCIAL LIMITS4 #h ,& S9CE ACCORD+ TO ,M&EL ! LONG P]IOD ( PROSP]ITY1 = :I* ! >MS 9DU/RY IS P>TLY RESPONSIBLE IS NE>+ AN 5D1 ! PROBLEM CAN 9 ANY CASE BE LEFT ASIDE AS A MATT] ( ! PA/4 ,:AT IS IMPORTANT TODAY IS ! CRISIS CYCLE1 :I* MU/ WORK ITSELF \T 9 0LATE CAPITALISM10 AS AT ANY PREVI\S TIME4 ,9 HIS E>LI] BOOK1 ,M>XI/ ,ECONOMIC ,!ORY1 ,M&EL WAS /ILL /RONGLY UND] ! 9FLU5CE ( ,KEYNES'S !ORY ( CAPITALI/ ECONOMIC MANAGEM5T & UND] ! SPELL ( ! LONG PO/W> P]IOD ( PROSP]ITY4 ,IT SEEM$ TO HIM !N ?AT CAPITAL HAD SUCCE$$1 9 COMP>ISON ) ! PA/1 9 BRIDG+ ! GREAT CONTRADICTION BETWE5 SURPLUS CAPITAL & EFFECTIVE DEM& 9 SU* A WAY AS TO /ABILIZE ! SY/EM4 ,9 HIS NEW BOOK ?IS HOLDS ONLY = ! REC5T PA/ BUT NOT = ITS FUTURE DEVELOPM5T4 ,BUT A ,M>XI/ EXPLANATION ( ! UNEXPECT$LY LONG PHASE ( PROSP]ITY MU/ NONE!LESS BE FURNI%$1 & ,M&EL BELIEVES ?AT HE HAS F\ND IT 9 ! !ORY ( 0LONG WAVES40 ,AS = EV]YBODY ELSE SO ALSO = ,M&EL ! 9DU/RIAL CYCLE REPRES5TS 0! SUCCESSIVE ACCEL]ATION & DECEL]ATION ( ACCUMULATION0 7P4 #a#i74 ,HE ASKS1 H[EV]1 :E!R !RE IS 0A PECULI> 9N] DYNAMIC TO ! SUCCESSION ( 9DU/RIAL CYCLES OV] LONG] P]IODS ( TIME0 7P4 #a#a74 ,ACCORD+ TO ,M>X1 ,M&EL EXPLA9S1 ! 0R5EWAL ( FIX$ CAPITAL EXPLA9S NOT ONLY ! L5G? ( ! BUS9ESS CYCLE BUT ALSO ! DECISIVE MOM5T UND]LY+ EXT5D$ REPRODUCTION AS A :OLE1 ! UPSW+ & ACCEL]ATION ( CAPITAL ACCUMULATION0 7P4 #a#a74 ,N[ IT IS TRUE ?AT ,M>X ATTEMPT$ TO BR+ ! BUS9ESS CYCLE 9TO CONNECTION ) ! TURNOV] TIME ( CAPITAL1 :I*1 JU/ LIKE ! CYCLE1 HAD AN AV]AGE SPAN ( T5 YE>S4 ,( C\RSE1 ! LIFETIME ( CAPITAL CAN L5G!N OR %ORT54 ,H[EV]1 ACCORD+ TO ,M>X1 :AT IS IMPORTANT IS NOT A P>TICUL> NUMB] ( YE>S4 ,?IS SEEM$ EVID5T TO HIM2 ! CYCLES ( 9T]CONNECT$ TURNOV]S EMBRAC+ A NUMB] ( YE>S1 9 :I* CAPITAL IS HELD FA/ BY ITS FIX$ CON/ITU5T P>T1 FURNI% A MAT]IAL BASIS = ! P]IODIC CRISES4 ,DUR+ ?IS CYCLE BUS9ESS UND]GOES SUCCESSIVE P]IODS ( DEPRESSION1 M$IUM ACTIVITY1 PRECIPITANCY1 CRISIS4 ,TRUE1 P]IODS 9 :I* CAPITAL IS 9VE/$ DIFF] GREATLY & F> FROM CO9CIDE 9 TIME4 ,BUT A CRISIS ALWAYS =MS ! />T+ PO9T ( L>GE NEW 9VE/M5TS4 ,!RE=E1 FROM ! PO9T ( VIEW ( SOCIETY AS A :OLE1 MORE OR LESS1 A NEW MAT]IAL BASIS = ! NEXT TURNOV] CYCLE4 ,M>X NEV] FOLL[$ UP ?IS VAGUE HYPO!SIS1 IF ONLY BECAUSE ! LIFETIMES ( DIFF]5T CAPITALS >E DIFF]5T1 & BECAUSE !Y >E R5EW$ NOT AT ! SAME TIME BUT ACCORD+ TO !IR 9DIVIDUAL />T+ PO9TS1 :ILE ! BUS9ESS CYCLE IS A MATT] AFFECT+ ! :OLE SOCIETY AT ONE P>TICUL> MOM5T4 ,C]TA9LY CRISIS LEADS TO A CONC5TRATION ( NEW 9VE/M5TS AT ONE TIME & ?US TO A SORT ( 0MAT]IAL BASIS = ! NEXT TURNOV] CYCLE40 ,& D\BTLESS CAPITAL F9DS ITSELF 0UND] ! SPELL ( ITS FIX$ COMPON5T10 S9CE ! LATT]1 9 ACCORDANCE ) ITS REPRODUCTION ,TIME1 MU/ BE R5EW$ 9 ORD] TO BE A BASIS = NEW 9VE/M5TS4 ,! %ORT] ! TURNOV] TIME1 ! SOON] ! R5EWALS & NEW 9VE/M5TS P>TICIPATE 9 ! IMPROV$ PRODUCTIVITY DUE TO ! 0P]PETUAL REVOLUTIONIZ+ ( ! MEANS ( PRODUCTION10 & ! L[] >E ! CO/S ( ! 0MORAL DEPRECIATION0 ?AT PREC$ES ! PHYSICAL 5D ( CAPITAL4 ,BUT 9 ! F9AL ANALYSIS ALL ( ?IS ONLY MEANS ?AT 0! CRISIS ALWAYS =MS ! />T+ PO9T ( L>GE NEW 9VE/M5TS10 I4E41 ?AT ! PRODUCTIVITY ( CAPITAL IS SUFFICI5TLY IMPROV$ TO RECOMM5CE ! PROCESS ( ACCUMULATION4 ,BUT ACCORD+ TO ,M&EL IT MU/ BE EXPLA9$ 0:Y AT A P>TICUL> PO9T 9 TIME ?IS ADDITIONAL CAPITAL IS EXP5D$ ON A MASSIVE SCALE1 AFT] LY+ IDLE = A LONG P]IOD40 ,= HIM 0! ANSW] IS OBVI\S3 ONLY A SUDD5 9CREASE 9 ! RATE ( PR(IT CAN EXPLA9 ! MASSIVE 9VE/M5T ( SURPLUS CAPITALS-JU/ AS A PROLONG$ FALL 9 ! RATE ( PR(IT 444 CAN EXPLA9 ! IDL5ESS ( ! SAME CAPITAL OV] MANY YE>S0 7P4 #a#a#d74 ,ACCORD+ TO ,M&EL ! RATE ( PR(IT GR[S AS ! RESULT ( A SUDD5 FALL 9 ! AV]AGE ORGANIC COMPOSITION ( CAPITAL2 A SUDD5 RISE 9 ! RATE ( SURPLUS VALUE2 A SUDD5 *EAP5+ ( ELEM5TS ( CON/ANT CAPITAL2 & A SUDD5 %ORT5+ ( ! TURNOV] TIME ( ! CIRCULAT+ CAPITAL 7P4 #a#a#e74 ,9 ?IS WAY >ISES ! POSSIBILITY ( A*IEV+ 0NOT ONLY A P>TIAL & MOD]ATE1 BUT A MASSIVE & G5]AL REVOLUTION 9 PRODUCTION TE*NOLOGY10 P>TICUL>LY 0IF SEV]AL FACTORS >E SIMULTANE\SLY & CUMULATIVELY CONTRIBUT+ TO A RISE 9 ! AV]AGE RATE ( PR(IT0 7PP4 #a#a#e-#a#a#f74 ,9 %ORT1 IT IS ABSOLUTELY CLE> ?AT ACCUMULATION IS A CONSEQU5CE ( ! SUDD5 RISE 9 PR(ITABILITY4 ,!SE NEW 9VE/M5TS REVOLUTIONIZ+ PRODUCTION TE*NIQUES1 :I* >E AT ONCE RESULTS & CAUSES ( ! SUDD5 RISE ( ! RATE ( PR(IT1 LEAD TO FUR!R GR[? ( ! ORGANIC COMPOSITION ( CAPITAL1 :I* LEADS 9 A 0SECOND PHASE0 ( DEVELOPM5T TO NEW VALORIZATION DIFFICULTIES & NEW IDLE CAPITAL4 0,ONLY IF A COMB9ATION ( SPECIFIC CONDITIONS G5]ATES A SUDD5 RISE 9 ! AV]AGE RATE ( PR(IT10 CONT9UES ,M&EL1 0WILL ?IS IDLE CAPITAL1 :I* HAS SL[LY GA!R$ OV] SEV]AL DECADES1 BE DRAWN ON A MASSIVE SCALE 9TO ! NEW SPH]ES ( PRODUCTION CAPABLE ( DEVELOP+ ! NEW BASIC TE*NOLOGY0 7P4 #a#b74 ,ON ! BASIS ( ?IS 0DEVELOPM5T ( BASIC PRODUCTION TE*NOLOGY10 0! HI/ORY ( CAPITALISM ON ! 9T]NATIONAL PLANE0 MU/ BE UND]/OOD 0NOT ONLY AS A SUCCESSION ( CYCLICAL MOVEM5TS EV]Y SEV5 OR T5 YE>S1 BUT ALSO AS A SUCCESSION ( LONG P]IODS1 ( APPROXIMATELY FIFTY YE>S4 - 40 7P4#a#b74 ,!SE 0LONG WAVES10 AL?\< NOT$ BY A NUMB] ( PEOPLE1 W]E MO/ NOTABLY DISCUSS$ BY ,KONDRATIEV1 :O ATTEMPT$ TO PROVE !IR EXI/5CE /ATI/ICALLY4 ,!Y IMPRESS$ ,M&EL'S M5TOR1 ,LEON ,TROTSKY1 /RONGLY 5\< = HIM TO 9VE/IGATE !M CRITICALLY BUT SYMPA!TICALLY4 ,! MOM5T WAS P>TICUL>LY OPPORTUNE1 AS ! ,NEW ,C\RSE ANN\NC$ AT ! ,?IRD ,WORLD ,CONGRESS ( ! ,COMMUNI/ ,9T]NATIONAL WAS BAS$ ON ! HYPO!SIS ( A /ABILIZATION ( ! CAPITALI/ SY/EM PO/PON+ ! WORLD REVOLUTION4 ,TROTSKY'S >GUM5T WAS DIRECT$ AGA9/ SO-CALL$ 0ECONOMISM0 & AGA9/ 0! PURELY ME*ANICAL CONCEPTION ( CAPITALI/ BREAKD[N10 :I* WAS ATTRIBUT$ TO ?OSE :O /ILL MA9TA9$ A WORLD-REVOLUTION>Y P]SPECTIVE4 ,! !ORY ( ! 0LONG WAVES0 WAS A GODS5D 9 ?IS CONNECTION1 S9CE IT C\LD NOT BE =ESE5 :E!R AN 5D OR A BEG9N+ ( ONE ( !SE WAVES HAD BE5 REA*$4 ,ACCORD+ TO ,KONDRATIEV & ,TROTSKY1 ! ECONOMIC CURVES HAVE DIFF]5T *>ACT]I/ICS AT DIFF]5T TIMES4 ,9 ORD] = CAPITALI/ DEVELOPM5T TO TAKE PLACE1 ! NEW PROSP]ITY RELEAS$ BY ! CRISIS MU/ SURPASS ! PROSP]ITY PREC$+ ! CRISIS4 ,ONE CAN ID5TIFY EPO*S ( CAPITALI/ DEVELOPM5T ?AT1 AP>T FROM !IR ECONOMIC CURVES1 EXHIBIT A G5]AL UPSW+ T5D5CY & O!R EPO*S ?AT HAVE A MORE /ATIC *>ACT]4 ,BUT !SE LONG1 EPO*AL WAVES ( SL[] OR MORE RAPID ACCUMULATION %\LD1 ACCORD+ TO ,TROTSKY1 BE VIEW$ NOT 9 ! SAME WAY AS ! PH5OM5A ( CRISIS ,M>X BR\E 9H]5T 9 CAPITALISM1 BUT AS ! RESULTS ( ! 9FLU5CE ( EXT]NAL CAUSES ON CAPITAL ACCUMULATION1 SU* AS 0! CAPITALI/ CONQUE/ ( O!R L&S1 ! DISCOV]Y ( NEW S\RCES ( RAW MAT]IALS1 & ! ACCOMPANY+ SUP]/RUCTURAL PH5OM5A1 LIKE W> & REVOLUTION1 :I* DET]M9E ! *>ACT] & *ANGE ( RIS+1 /AGNAT+1 OR COLLAPS+ EPO*S ( CAPITALI/ DEVELOPM5T40 ,M&EL GOES F>!R ?AN ,TROTSKY1 :O OBVI\SLY HAS SAID ONLY ?AT CAPITALISM EXI/S NOT 9 A VACUUM BUT 9 ! REAL WORLD4 ,:ILE ,TROTSKY ATTACK$ ANY 0MONOCAUSAL0 OR 0PURELY ECONOMIC0 EXPLANATION ( CAPITALI/ DEVELOPM5T1 ,M&EL'S 0LONG WAVES0 >E AGA9 SE5 AS 0MONOCAUSAL0 & 0PURELY ECONOMIC0 PH5OM5A1 S9CE1 AL?\< ! AV]AGE RATE ( PR(IT 0MU/ BE EXPLA9$ BY A S]IES ( SOCIAL *ANGES0 7P4 #a#b#i71 IT IS NEV]!LESS ! MOVEM5T ( ! PR(IT RATE ?AT DET]M9ES BO? %ORT & LONG WAVES4 ,S9CE ?IS :OLE DISCUSSION TURNS MORE OR LESS >\ND A PSEUDO PROBLEM1 ,M&EL CAN ALSO RE/ UNDI/URB$ BY ! FACT ?AT ! EXI/5CE ( 0LONG WAVES0 CANNOT BE CONV9C+LY PROV$ BY /ATI/ICS2 HE REG>DS 0! MA9 PROBLEM NOT AS ONE ( /ATI/ICAL V]IFICATION1 BUT ( !ORETICAL EXPLANATION1 AL?\< IT GOES )\T SAY+ ?AT1 IF ! !ORY ( 'LONG WAVES' C\LD NOT BE CONFIRM$ EMPIRICALLY1 IT W\LD BE AN UNF\ND$ WORK+ HYPO!SIS & ULTIMATELY A MY/IFICATION0 7P4#a#d74 ,M&EL NONE!LESS BELIEVES ?AT HIS [N CONTRIBUTION HAS BE5 TO EXPLA9 ! 0LONG WAVES0 9 T]MS ( 0! 9N] LOGIC ( ! PROCESS ( LONG-T]M ACCUMULATION & VALORIZATION ( CAPITAL0 7P4 #a#d#e71 & ?US HE REF]S )\T FUR!R C]EMONY TO ! EXI/5CE ( ! 0LONG WAVES0 9 ORD] TO %$ LID] TO DO1 NOT ONLY 9 RELATION TO A P>TICUL> REPRODUCTION CYCLE BUT ALSO HI/ORICALLY4 ,BY L9K+ !ORY ) HI/ORY WE CAN DI/+UI% BETWE5 DIFF]5T BUT OV]LAPP+ EPO*S ( CAPITALI/ PRODUCTION4 ,9 AN EXT5D$ P]IOD ( DEPRESSION1 9 :I* A S]IES ( CYCLICAL MOVEM5TS TAKES PLACE )\T LEAD+ TO A NOTICEABLE UPSW+1 WE >E DEAL+ ) A DECL9+ LONG WAVE ( CAPITALI/ PRODUCTION1 :ILE 9 AN EPO* ( CAPITALI/ DEVELOPM5T 9 :I* %ORT] CYCLICAL MOVEM5TS DO NOT C\NT]ACT A G5]ALLY UPW>D TR5D1 WE CAN SPEAK ( A LONG WAVE ( PROSP]ITY4 ,?US = ,M&EL ! ACCEL]AT$ ACCUMULATION1 )\T S]I\S CRISIS SITUATIONS1 *>ACT]I/IC ( 0LATE CAPITALISM0 IS EXPLA9$ AS A 0LONG WAVE ) AN UND]TONE ( EXPANSION0 7P4#a#i#d71 MADE POSSIBLE NOT ONLY BY ! >MS 9DU/RY BUT ALSO1 & MORE IMPORTANTLY1 BY /RUCTURAL *ANGES 9 CAPITAL & NEW CONDITIONS ( PRODUCTION4 ,! 0LONG WAVE ) AN UND]TONE ( EXPANSION0 ?AT LA/$ FROM #aid TO #aife & =M$ ! BASIS = A 0?IRD TE*NOLOGICAL REVOLUTION0 WAS1 H[EV]1 ACCORD+ TO ,M&EL1 BY NO MEANS 0PURELY0 ! PRODUCT ( ECONOMIC DEVELOPM5T1 PRO( ( ! ALLEG$ VITALITY ( ! CAPITALI/ MODE ( PRODUCTION OR A JU/IFICATION = ITS EXI/5CE4 ,ALL IT PROV$ WAS ?AT 9 ! IMP]IALI/ C\NTRIES1 GIV5 EXI/+ TE*NOLOGY & =CES ( PRODUCTION1 !RE >E NO 0ABSOLUTELY HOPELESS SITUATIONS0 9 A PURELY ECONOMIC S5SE = CAPITAL1 & ?AT ! LONG-T]M FAILURE TO ACCOMPLI% A SOCIALI/ REVOLUTION CAN ULTIMATELY GIVE ! CAPITALI/ MODE ( PRODUCTION A NEW LEASE ON LIFE1 :I* ! LATT] WILL !N EXPLOIT 9 ACCORDANCE ) ITS 9H]5T LOGIC4447P4#b#b#a74 ,?US CAPITAL SUCCE$$ ONCE MORE 9 5L>G+ ! PRODUCTIVE =CES4 ,BUT ! 0?IRD TE*NOLOGICAL REVOLUTION0 9DICATES ALSO ! HI/ORICAL LIMITS ( CAPITAL1 = 0:O IS SUPPOS$ TO BUY A D\BL$ VOLUME ( DURABLE CONSUM] GOODS IF1 ) A CON/ANT SELL+ PRICE1 ! NOM9AL 9COME ( ! POPULATION IS R$UC$ BY HALF80 7P4#b#e74 ,H]E WE HAVE >RIV$ ) ,M&EL 0AT ! ABSOLUTE 9N] LIMIT ( ! CAPITALI/ MODE ( PRODUCTION444 4 ,IT LIES 9 ! FACT ?AT ! MASS ( SURPLUS-VALUE ITSELF NECESS>ILY DIM9I%ES AS A RESULT ( ! ELIM9ATION ( LIV+ LABOR FROM ! PRODUCTION PROCESS 9 ! C\RSE (' ! F9AL /AGE (' ME*ANIZATION-AUTOMATION0 7P4#b#g74 ,! 0ABSOLUTE 9N] LIMIT0 ( ! CAPITALI/ MODE ( PRODUCTION1 H[EV]1 ACCORD+ TO ,M&EL1 CONFRONTS ! FACT ?AT 0!RE >E NO ABSOLUTELY HOPELESS SITUATIONS0 = CAPITAL1 S9CE IT DEP5DS EXCLUSIVELY ON ! PROLET>IAT :E!R IT CAN MUDDLE ON FUR!R EV5 )\T 0A JU/IFICATION = ITS EXI/5CE40 ,IT DOES NOT EXI/ ON ! BASIS ( ITS [N 0VITALITY0 BUT BECAUSE ( ! PROLET>IAT'S READ9ESS TO GIVE IT A NEW 0LEASE ON LIFE10 ?US BECAUSE ( ! VITALITY ( ! NONREVOLUTION>Y WORK+ CLASS4 ,IF WE !RE=E HAVE ! WORK+ CLASS OR1 MORE PRECISELY1 ITS 9CORRECT LEAD]%IP TO ?ANK = ! 0LONG WAVE ) AN UND]TONE ( EXPANSION10 ! NEW 0LONG WAVE ) AN UND]TONE ( /AGNATION0 7P4#d#e#i7 WILL DEMON/RATE 0! 9CREAS+ LIABILITY ( ! SOCIAL SY/EM TO EXPLOSIVE SOCIAL CRISES0 ?AT COMPEL CAPITAL TO GIVE PREC$5CE TO ! TASK ( 0! DE/RUCTION ( PROLET>IAN CLASS CONSCI\SNESS - P>TICUL>LY 9 ITS SOCIALI/ =M0 7P4 #d#c#g1 ,G]MAN $ITION2 COMP>E ,5GLI% TRANSLATION1 PP4 #d#h#e-#h#f74 ,MEAN:ILE1 & DESPITE ! LACK ( VITALITY1 IT HAS TURN$ \T ?AT 0F> FROM REPRES5T+ A 'PO/-9DU/RIAL SOCIETY1' LATE CAPITALISM ?US CON/ITUTES G5]ALIZ$ UNIV]SAL 9DU/RIALIZATION = ! FIR/ TIME 9 HI/ORY4 ,ME*ANIZATION1 /&>DIZATION1 OV]SPECIALIZATION & P>CELLIZATION ( LABOR 444 N[ P5ETRATE 9TO ALL SECTORS ( SOCIAL LIFE0 7P4#c#h#g74 ,BY ?IS ITS ABOLITION IS ASSUR$4 ,! *>ACT]I/ICS ( 0LATE CAPITALISM0 APPE> = ,M&EL TO BE ! %ORT5+ ( ! TURNOV] TIME ( FIX$ CAPITAL2 ! *EAP5+ ( CON/ANT CAPITAL2 ! 9CREASE 9 ! RATE ( SURPLUS VALUE2 CAPITAL'S 5TRY 9TO ! CIRCULATION & S]VICE SECTORS2 & ECONOMIC PROGRAMM+ 9 ORD] 0TO BRIDGE OV]1 AT LEA/ P>TIALLY1 ! CONTRADICTION BETWE5 ! AN>*Y ( CAPITALI/ PRODUCTION 9H]5T 9 ! PRIVATE [N]%IP ( ! MEANS ( PRODUCTION & ! GR[+ OBJECTIVE PRESSURE TO PLAN AMORTIZATION & 9VE/M5TS0 7P4 #bc #a74 ,ALL !SE PROP]TIES1 :I* HAVE *>ACT]IZ$ CAPITAL FROM TIME IMMEMORIAL1 LEAD 9 0LATE CAPITALISM0 TO A 0P]MAN5T 9FLATION10 :I* IS AT ! S]VICE ( ! 0LONG-T]M PROTECTION ( ! EXP&$ REPRODUCTION0 ( CAPITAL4 ,! P]MAN5T 9FLATION IS 9 ,M&EL'S EYES A P]MAN5T CR$IT 9FLATION OR ! SPECIFIC ACCOMMODATION ( ! BANK+ SY/EM & MONEY CREATION TO ! 9T]E/S ( MONOPOLY CAPITAL4 ,?R\< ! EXPANSION ( CR$IT DEM& IS 9CREAS$1 :I* LEADS TO ! EMPLOYM5T ( SURPLUS CAPITAL 9 ADDITIONAL PRODUCTION4 ,9 VIEW ( ! UND]UTILIZATION ( PRODUCTIVE =CES1 ! 9FLATION>Y CREATION ( MONEY & CR$IT >E ABLE TO PU% ! DEVELOPM5T ( ! PRODUCTIVE =CES BEYOND ! LIMITS SET BY PRIVATE PROP]TY4 ,BEH9D ! 9FLATION LIES ! 0CONV]SION ( IDLE CAPITAL 9TO PRODUCTIVE CAPITAL0 7P4#d#d#c74 ,LIKE ! >MS 9DU/RY1 CR$IT 9FLATION LEADS TO AN 9CREAS$ PRODUCTION ( VALUE & SURPLUS VALUE4 ,IT SL[S D[N ! DECL9E 9 SALES ( CONSUM] GOODS4 ,! EXPANSION ( CR$IT CAN /IMULATE PROSP]ITY 0UP TO ! PO9T BEYOND :I* IT RISKS JEOP>DIZ+ ! %>E ( ! WORLD M>KET CONTROLL$ BY ! C\NTRY 9 QUE/ION0 7P4#d#e#e74 ,! 0LONG-T]M DIM9UTION ( ! 9DU/RIAL RES]VE >MY1 :I* WAS ! COROLL>Y ( ! SUB/ANTIAL GR[? 9 ! ACCUMULATION ( CAPITAL1 5ABL$ ! WORK+ CLASS P]IODICALLY TO *IP AWAY AT ! RATE ( SURPLUS-VALUE SOME:AT0 7P4#d#e#g74 ,?US ACCORD+ TO ,M&EL EV]Y?+ 9DICATES 0A DECL9E 9 ! RELATIVE AUTONOMY ( ! CR$IT CYCLE1 & H5CE ! ABILITY ( CREEP+ 9FLATION TO RE/RICT ! CUMULATIVE EFFECT ( CRISES ( OV]-PRODUCTION0 7P4#d#e#i74 ,:Y ! EXT5SION ( PRIVATE CR$IT %\LD HAVE 9FLATION>Y CONSEQU5CES IS H>D TO SEE 9 LIY CREATION ( CR$IT CEASES TO BE EFFECTIVE10 ACCORD+ TO ,M&EL1 0:5 A RIS+ DEBT-BURD5 BEG9S TO RE/RICT CURR5T PUR*AS+ P[]0 7P4 #d#e#i74 ,BUT :Y %\LD ! DEBT BURD5 RISE :5 ! PROCESS RELEAS$ BY 0CR$IT 9FLATION0 LEADS TO NEW ADDITIONAL VALUE & SURPLUS VALUE8 ,IT MAKES LITTLE S5SE TO GO 9TO ,M&EL'S !ORY ( 9FLATION S]I\SLY1 S9CE IT CONSI/S ( NO MORE ?AN ! ASS]TION1 PULL$ \T ( ?9 AIR1 ?AT CR$IT MU/ 9 ITSELF LEAD TO P]MAN5T 9FLATION4 ,M&EL COMES SOME:AT CLOS] TO ! HE>T ( ! MATT] AS SOON AS HE DEALS ) ! CR$IT-SUPPORT$ 9T]V5TIONS ( ! /ATE 9TO ! ECONOMY4 0,IF SU* /ATE \TLAYS10 HE WRITES1 >E :OLLY F9ANC$ BY TAXATION1 !N ONCE AGA9 !RE WILL BE NO *ANGE 9 GLOBAL DEM&444 4 ,ONLY IF !SE 9VE/M5TS AT LEA/ TO SOME EXT5T RESULT 9 A DIRECT NOM9AL 9CREASE 9 PUR*AS+ P[] - I4E41 BR+ ADDITIONAL MEANS ( PAYM5T 9TO CIRCULATION - WILL !Y HAVE A /IMULAT+ EFFECT ( ! ECONOMY4444 ,BUT S9CE SU* 9VE/M5TS DO NOT 9CREASE ! QUANTITY ( COMMODITIES 9 CIRCULATION TO ! SAME EXT5T AS !Y CREATE ADDITIONAL MEANS ( PAYM5T1 !Y 9EVITABLY CONTA9 AN 9FLATION>Y BIAS 7P4#e#e#b74 ,! /ATE'S CREATION ( CR$IT BY WAY ( DEFICIT F9ANC+ IS H]E A MEANS TO 9DUCE AN ADDITIONAL PRODUCTION NOT A*IEV$ ?R\< ! PRIVATE CR$IT ME*ANISM4 ,IT BECOMES A NECESSITY JU/ BECAUSE ! EXPANSION ( PRIVATE CR$IT DOES NOT 9CREASE DEM&1 & ?US PRODUCTION1 SUFFICI5TLY TO KEEP UNEMPLOYM5T & OV]CAPACITY 9 SOCIALLY MANAGEABLE PROPORTIONS4 ,! POLICY ( 9FLATION1 :I* ACCORD+ TO ,M&EL DOES 0NOT 9CREASE ! QUANTITY ( COMMODITIES 9 CIRCULATION TO ! SAME EXT5T AS IT CREATES ADDITIONAL MEANS ( PAYM5T0 & !REBY DRIVES UP PRICES1 EXPRESSES ! SIMPLE FACT ?AT ! PRODUCTION !REBY MADE POSSIBLE IS NOT PRODUCTION ( COMMODITIES 9 ! USUAL S5SE ( ! T]M4 ,IT DOES NOT YIELD VALUE & SURPLUS VALUE BUT MU/ NEV]!LESS YIELD PR(IT = ! CAPITALS P>TICIPAT+ 9 ?IS PRODUCTION4 ,! QUANTITY ( COMMODITIES HAS NOT REALLY 9CREAS$ ALONG ) ! EXPANSION ( PRODUCTION1 S9CE ! F9AL PRODUCTS ( ! /ATE-9DUC$ PRODUCTION DO NOT 5T] ! M>KET4 ,PRODUCTION HAS 9CREAS$1 BUT )\T A CORRESPOND+ 9CREASE 9 PR(IT4 ,! 0PR(IT0 MADE 9 /ATE-9DUC$ PRODUCTION MU/ BE TAK5 9 ! =M ( TAXES FROM ! UN5L>G$ MASS ( PR(IT ( CAPITAL AS A :OLE4 ,?IS PRESSURE ON CAPITALI/ REV5UE IS F\E PAID BY ,M&EL'S 0F9AL CONSUM]S40 ,! DEM& DET]M9$ BY ! 0F9AL CONSUM]S0 - :I*1 TO BELIEVE ,M&EL1 9 ! F9AL ANALYSIS DET]M9ES ! MOVEM5T ( CAPITAL & !REBY D5IES IT A SECURE FUTURE - CONT9UES TO BE R$UC$1 RELATIVE TO 9CREAS+ PRODUCTION1 9 ORD] TO AVOID SOCIAL UPHEAVALS4 ,) ?IS IS CONNECT$ ! 9SUB/ANTIAL HOPE ?AT IT REPRES5TS A TRANSITORY SITUATION ?AT WILL SOON] OR LAT] BE OV]COME BY A G5]AL UPSW+ ( CAPITALI/ PRODUCTION4 ,9 ACCORDANCE ) ?IS GOAL CAPITAL N[1 AS BE=E1 CONT9UES D[N ! ONE-WAY /REET ( PR(IT EXPANSION4 ,! FATE ( ! 0F9AL CONSUM]S0 APPE>S FIR/ AS ! FATE ( ! WORK+ CLASS3 9CREAS$ EXPLOITATION ?R\< 9FLATION4 ,) ! MORE RAPID 9CREASE 9 COMMODITY PRICES RELATIVE TO WAGES1 A PR(IT CAN BE MADE 9 CIRCULATION :OSE EXTRACTION AT ! PO9T ( PRODUCTION W\LD LEAD TO GREAT] OPPOSITION4 ,9FLATION IS ABOVE ALL A WAGES POLICY MEANT TO SECURE CAPITALI/ SURPLUS VALUE &1 :5 POSSIBLE1 TO 9CREASE IT2 IT IS ALSO A ME?OD ( DECREAS+ ! EXP5SES ( ! NONCAPITALI/ BUT ALSO UNPRODUCTIVE /RATA ( SOCIETY4 ,BUT S9CE /EADILY 9CREAS+ 9FLATION CAN ALSO DAMAGE ! 9T]E/S ( CAPITAL1 IT REPRES5TS A POLICY =C$ ON CAPITAL ?AT IT W\LD GLADLY BE DONE ) BUT CANNOT DO )\T4 ,M&EL'S 0LONG WAVE ) AN UND]TONE ( EXPANSION0 DIFF]S FROM HIS 0LONG WAVE ) AN UND]TONE ( /AGNATION0 ONLY 9 ! CIRCUM/ANCE ?AT ! 9/RUM5TS US$ BY ! /ATE TO COMBAT CRISIS1 0DISCOV]$0 DUR+ ! LA/ GREAT WORLD CRISIS1 >E ON ! PO9T ( LOS+ !IR EFFECTIV5ESS4 ,!Y 5C\NT] DEF9ITE LIMITS 9 CAPITALI/ PRODUCTION ?AT CANNOT BE 9FR+$ )\T DE/ROY+ ! SY/EM4 ,! LONG P]IOD ( PROSP]ITY AFT] ! ,SECOND ,WORLD ,W> 5COMPASS$ ONLY ! GREAT CAPITALI/ P[]S4 ,BUT DESPITE ! 5ORM\S DE/RUCTION ( CAPITAL1 DESPITE ! FUR!R EXT5SION ( ! CONC5TRATION ( CAPITAL ON AN 9T]NATIONAL SCALE1 DESPITE ! 0?IRD TE*NOLOGICAL REVOLUTION0 & ALL ! O!R /RUCTURAL *ANGES 9 CAPITAL1 EV5 !SE NATIONS REMA9$ TI$ TO ! CONTRADICTORY PURSUIT ( UNPR(ITABLE PRODUCTION4 ,EV5 ! ECONOMIC PROGRAMM+ SO EMPHASIZ$ BY ,M&EL REMA9S A MATT] ( BL9D REACTIONS TO ! /ILL UNCONTROLLABLE LAWS ( MOTION ( CAPITAL4 ,! CRISIS1 ALWAYS LAT5T1 IS BECOM+ ACUTE AGA91 & IT IS NO LONG] POSSIBLE TO C\NT]ACT IT BY ! /ATE 9T]V5TIONS US$ 9 ! PA/4 ,9FLATION1 :I* WAS SUPPOS$ TO COMBAT UNEMPLOYM5T1 BECOMES 9FLATION ) GR[+ UNEMPLOYM5T2 ! 9T]NATIONAL PLANN+ ( 9VE/M5TS BECOMES ! RU?LESS COMPETITIVE /RUGGLE ( NATIONAL CAPITALS2 0LATE CAPITALISM0 %[S ITSELF TO BE ! SAME CAPITALISM ?AT ALL ALONG MOV$ ONLY 9 ONE DIRECTION1 ?AT ( ITS F9AL ABOLITION4 ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #c1 #bba 3 ,*APT] #e -- ,ADD$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/