,*APT] #a ,! ,CRISIS ( ,! ,MIX$ ,ECONOMY ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,TO UND]/& ! PRES5T ECONOMIC SITUATION & :]E IT IS GO+1 ONE MU/ TAKE A LOOK 9TO ! EV5TS ( ! REC5T PA/4 ,DEVELOPM5TS S9CE ! 5D ( ,WORLD ,W> ,I,I HAVE TAK5 PLACE 5TIRELY )9 A NEW K9D ( CAPITALISM CALL+ ITSELF A 0MIX$ ECONOMY40 ,?IS IMPLIES /ATE ECONOMIC 9T]V5TIONS ?AT DIFF] FROM ! 9T]V5TIONI/ POLICIES ( ! PA/ C5TURY 9 EXT5T BUT NOT SO MU* 9 ! MEANS APPLI$4 ,/ATE 9T]V5TIONS UND] A MIX$ ECONOMY F9D !IR REASONS AS WELL AS !IR LIMITS 9 ! CONDITIONS ( EXI/5CE & ACCUMULATION ( PRIVATE CAPITAL4 ,QUITE AP>T FROM ! 9/RUM5TS ( P[] ?AT ! /ATE USES TO SECURE SOCIAL /ABILITY ON ! DOME/IC FRONT & TO SUPPORT NATIONAL 9T]E/S 9 9T]NATIONAL COMPETITION1 IT EX]CIS$ ECONOMIC FUNCTIONS AS WELL1 E4G41 AS A MEANS ( OBTA9+ REV5UE 7CU/OMS POLICIES & /ATE MONOPOLIES OV] C]TA9 BRAN*ES ( 9DU/RY1 ETC47 OR ( CREAT+ ! G5]AL CONDITIONS ( PRODUCTION ! BURD5 = :I* PRIVATE CAPITAL EI!R DID NOT OR C\LD NOT ASSUME ITSELF 7E4G41 CON/RUCTION ( ROADS1 H>BORS1 RAILROADS1 PO/S1 & SO ON1 I4E41 :AT 9 ! ECONOMIC J>GON IS CALL$ 9FRA/RUCTURE4 ,?US 9 LIMIT$ MEASURE ! /ATE IS ALSO A PRODUC] ( SURPLUS VALUE & IS !RE=E ABLE TO PAY = A PORTION ( ITS EXP5DITURES ) ITS [N PR(ITS4 ,TO ! EXT5T ?AT ! PRODUCTION ( /ATE 5T]PRISES 5T]S 9TO G5]AL COMPETITION1 IT DIFF]S 9 NO WAY FROM PRIVATE PRODUCTION2 & ! /ATE %>E 9 TOTAL SURPLUS VALUE DEP5DS ON ! MASS ( CAPITAL IT 9VE/S & ON ! AV]AGE RATE ( PR(IT4 ,/ATE MONOPOLY OV] C]TA9 PRODUCTS & S]VICES MAY LEAD TO MONOPOLI/IC PR(ITS1 BUT ?IS IS ONLY ANO!R =M ( CONSUM] TAXATION4 ,= HI/ORICAL & O!R REASONS ! RELATION%IP BETWE5 /ATE & PRIVATE PRODUCTION IS *ANGEABLE &1 MOREOV]1 V>IES FROM C\NTRY TO C\NTRY4 ,/ATE 5T]PRISES MAY HE TURN$ OV] TO PRIVATE CONC]NS1 & PRIVATE 5T]PRISES MAY BE NATIONALIZ$2 ! /ATE MAY BE A %>EHOLD] 9 PRIVATE CONC]NS OR KEEP !M ALIVE ?R\< SUBSIDIES4 ,! 9T]P5ETRATION ( PRIVATE & /ATE PRODUCTION OCCURS 9 A V>IETY ( COMB9ATIONS1 & ! /ATE %>E NE$ NOT BE RE/RICT$ TO ! 9FRA/RUCTURE4 ,9 ! 9DU/RIALLY DEVELOP+ C\NTRIES /ATE P>TICIPATION 9 PRODUCTION IS (T5 RELATIVELY EXT5SIVE1 AS = EXAMPLE1 9 ,ITALY1 AN >*ETYPAL C\NTRY 9 ?IS RESPECT1 :]E /ATE-[N$ PRODUCTION.<#a.> COMPET+ ) PRIVATE CAPITAL REPRES5TS #ae P]C5T ( TOTAL PRODUCTION4 ,YET NO MATT] H[ MU* /ATE PRODUCTION MAY EXP&1 IT CAN NEV] BE MORE ?AN A M9OR FRACTION ( TOTAL PRODUCTION IF IT IS NOT TO CALL 9TO QUE/ION ! V]Y EXI/5CE ( A M>KET ECONOMY4 ,9 ALL C\NTRIES1 !RE=E1 A 0MIX$ ECONOMY10 TO ! EXT5T ?AT IT IS A MIXTURE1 LEAVES ! PRIVATE 5T]PRISE NATURE ( ! ECONOMY 9TACT4 ,EV5 AN 9CREASE 9 /ATE PRODUCTION ?R\< EXPANSION ( ! 9FRA/RUCTURE CAN *ANGE NO?+1 S9CE ?IS EXPANSION TAKES PLACE )9 ! FRAMEWORK ( CAPITALI/ ACCUMULATION1 :I* REPRODUCES ! RELATION%IP BETWE5 /ATE & PRIVATE PRODUCTION 9 CONSONANCE ) ACCUMULATION NE$S4 ,EXP&+ AUTOMOBILE PRODUCTION 5TAILS ! CON/RUCTION ( NEW HIE BORNE BY PRIVATE CAPITAL1 ! 9FRA/RUCTURE DEP5DS ON ! PR(ITABILITY ( CAPITAL1 NOT VICE V]SA4 ,! G5]AL CONDITIONS ( PRODUCTION DEMON/RATE ! UNSOCIAL NATURE ( CAPITALI/ PRODUCTION1 NAMELY1 ?AT IT IS IMPOSSIBLE = ! G5]AL NE$S ( SOCIETY TO BE TAK5 C>E ( BY PRIVATE PRODUCTION4 ,! CAPITALI/ IDEAL W\LD BE = EV]Y =M ( PRODUCTION1 EV5 PRODUCTION = ! 9FRA/RUCTURE1 TO BE RUN PRIVATELY4 ,AS1 H[EV]1 ?IS IS 9 PRACTICAL T]MS IMPOSSIBLE1 CAPITAL LEAVES IT TO ! /ATE TO BALANCE PRIVATE PRODUCTION ) SOCIAL PRODUCTION4 ,CAPITAL MU/ /ILL1 H[EV]1 BE> ! CO/S ( ?IS PRODUCTION1 & IT IS !RE=E LITTLE 9T]E/$ 9 EXP&+ ! 9FRA/RUCTURE BEYOND ! N>R[ SCOPE IT F9DS USEFUL4 ,! RESULT IS ?AT1 9 G5]AL1 9FRA/RUCTURAL PRODUCTION LAGS BEH9D PRODUCTION = ! M>KET - A /ATE (T5 LAM5T$ 9 ! ECONOMIC LIT]ATURE AS AN IRREM$IABLE CONTRADICTION BETWE5 PRIVATE WEAL? & PUBLIC POV]TY4 ,9 A CRISIS SITUATION /ATE-9DUC$ PRODUCTION IS NOT PRIM>ILY PRODUCTION = FUR!R EXPANSION ( ! 9FRA/RUCTURE 9 ANTICIPATION ( & PREP>ATION = EXPECT$ FUTURE CAPITALI/ ACCUMULATION4 ,ITS PURPOSE IS TO CREATE JOBS IMM$IATELY1 ) A VIEW T[>D 9CREAS+ G5]AL DEM&4 ,9 ORD] NOT TO COMP\ND FUR!R ! EXI/+ PROBLEMS ( PRIVATE PRODUCTION1 /ATE-9DUC$ PRODUCTION MU/ CONC5TRATE ON ?+S \TSIDE ( ! M>KET & ON PUBLIC SP5D+1 :I* MAY P>TLY GO T[>D EXP&+ ! G5]AL CONDITIONS ( PRODUCTION & P>TLY BE US$ UP 9 0PUBLIC CONSUMPTION40 ,?IS TYPE ( /ATE-9DUC$ PRODUCTION MU/ BE DI/+UI%$ FROM ! /ATE PRODUCTION ?AT ALREADY EXI/S1 :E!R IT IS GE>$ TO ! CREATION ( ! G5]AL CONDITIONS ( PRODUCTION OR TO ! G5]AL M>KET4 ,PRIVATE PRODUCTION IS NOT ON ?AT ACC\NT DRIV5 \T ( BUS9ESS BY /ATE PRODUCTION2 ! LATT] IS M]ELY A POLICY UND]TAK5 TO COMBAT CRISIS4 ,IT IS F9ANC$ BY A /ATE BUDGET DEFICIT1 EV5 IF 9 ! 5D ?IS ONLY MEANS AN ADD$ TAX BURD5 APPORTION$ TO ! PRIVATE SECTOR OV] ! LONG T]M4 ,! /ATE MU/ /RIVE TO EXP& TOTAL PRODUCTION BEYOND ITS [N PRODUCTION CAPACITIES1 :I* IS :Y :5 WE 9VE/IGATE ! EFFECT ( /ATE-9DUC$ PRODUCTION1 NORMAL /ATE PRODUCTION MAY BE DISREG>D$4 ,! /ATE DOES NOT HAVE ANY MEANS ( PRODUCTION ( ITS [N TO COV] ! ADDITIONAL /ATE-9DUC$ PRODUCTION4 ,EV5 = PRODUCTION ( ! G5]AL CONDITIONS ( PRODUCTION1 ! /ATE MU/ = ! MO/ P>T RELY ON ! S]VICES ( PRIVATE 5T]PRISE1 :I* >E !N PAID = FROM TAXES & /ATE LOANS4 ,TO ! EXT5T ?AT ! G5]AL CONDITIONS ( PRODUCTION >E A PR]EQUISITE = CAPITALI/ PRODUCTION = PR(IT1 !IR CO/ IS OBJECTIVELY A P>T ( ! CO/S ( CAPITALI/ PRODUCTION4 ,:]E ?IS IS NOT ! CASE1 ! CO/S ( /ATE-9DUC$ PRODUCTION MU/ BE SUBTRACT$ FROM TOTAL SURPLUS VALUE & CANNOT BE 9CLUD$ 9 EI!R CAPITALI/ CONSUMPTION OR CAPITALI/ ACCUMULATION4 ,CRISIS BR+S CAPITALI/ ACCUMULATION TO A HALT1 & AT ! LEVEL ( ! M>KET ?IS %[S UP AS OV]PRODUCTION & UNEMPLOYM5T4 ,CRISIS OCCURS BECAUSE PR(ITS >E NOT SUFFICI5T TO MEET ! EXPANSION NE$S ( ! EXI/+ CAPITAL /RUCTURE4 ,9 ?IS SITUATION ANY FUR!R D$UCTIONS FROM ! MASS ( SURPLUS VALUE1 :I* IS ALREADY 9ADEQUATE1 CAN ONLY WORS5 ! PR$ICAM5T ( CAPITAL4 ,ANY 9CREASE 9 DEM& ?R\< PUBLIC WORKS PROJECTS MU/ !RE=E BE F9ANC$ BY /ATE LOANS1 & ! ADDITIONAL /ATE-9DUC$ PRODUCTION %[S UP AS A M\NT+ PUBLIC DEBT4 ,?AT GOV]NM5T SP5D+ IS = ! MO/ P>T COV]$ BY D$UCTIONS FROM ! MASS ( SURPLUS VALUE IS BR\Y TO BALANCE ! /ATE BUDGET EV]Y YE>2 DEBTS 9CURR$ DUR+ A DEPRESSION MAY BE PAID (F DUR+ TIMES ( PROSP]ITY4 ,IF !Y >E NOT1 ! 9T]E/ ON /ATE LOANS CON/ITUTES AN ADDITIONAL TAX BURD5 :I*1 H[EV]1 MAY BE /ABILIZ$ AT A L[ LEVEL BY EXP&+ PRODUCTION4 ,AS LONG AS SOCIAL PRODUCTION EXP&S FA/] ?AN ! /ATE DEBT1 ! LATT] POSES NO S]I\S PROBLEM = ! ECONOMY4 ,IF ! OPPOSITE IS ! CASE1 ! /ATE DEBT BECOMES A BURD5 ON ! ECONOMY & ANO!R OB/ACLE TO ! RESUMPTION ( ACCUMULATION4 ,/ATE-9DUC$ PRODUCTION TO MAKE UP = DEFICI5T DEM& WAS 9ITIALLY CONCEIV$ AS A TEMPOR>Y RELIEF MEASURE = WAIT+ \T ! DEPRESSION ON A SAF] NOTE UNTIL ! NEXT BUS9ESS UPSW+1 & IT WAS !RE=E US$ ONLY 9 LIMIT$ MEASURE4 ,IF CAPITAL C\LD NOT CREATE ! CONDITIONS = A NEW ECONOMIC UPSW+ FROM ITS [N RES\RCES1 EXPANSION ( ! 9FRA/RUCTURE ?R\< PUBLIC WORKS W\LD BE ( LITTLE USE TO IT4 ,TWO EMPTY H>BORS >E NO BETT] ?AN ONE1 & TWO HI ,I,I1 NOT ) A NEW ECONOMIC UPSW+4 ,IT TOOK ! W> TO BR+ AB\T FULL EMPLOYM5T )\T CAPITALI/ ACCUMULATION4 ,CAPITAL WAS NOT ONLY DE/ROY$ 9 T]MS ( VALUES1 IT WAS ALSO DE/ROY$ PHYSICALLY4 ,9 ! ,UNIT$ ,/ATES AS WELL ACCUMULATION CAME TO A HALT :5 AB\T HALF ( PRODUCTION W5T 9TO 0PUBLIC CONSUMPTION10 ?AT IS1 W>TIME PRODUCTION4 ,NONE!LESS ?IS >RE/ ( ACCUMULATION & ! 5ORM\S DE/RUCTION ( CAPITAL CREAT$ ! CONDITIONS = ! ECONOMIC BOOM ( ! PO/W> P]IOD4 ,P]IODIC CRISES HAVE BE5 A P>T ( CAPITALISM AS LONG AS IT HAS EXI/$1 BUT BECAUSE CAPITAL DOES DEVELOP1 ! P]IODS ( CRISIS DIFF]1 IF NOT 9 ESS5CE1 AT LEA/ 9 \TW>D =M4 ,! PO/W> BOOM WAS SU* A SURPRISE BECAUSE IT CAME RIS ( DEPRESSION1 :I* HAD DEEPLY %AK5 CONFID5CE 9 ! ABILITY ( CAPITAL TO SURVIVE & GR[4 ,H[ WAS ?IS BOOM TO BE EXPLA9$8 ,! ,M>XI/ !ORY ( CRISIS EXPLA9S IT BY ! FACT ?AT CAPITAL WAS ONCE MORE ABLE TO RE/ORE ! VITAL L9K BETWE5 PR(IT & ACCUMULATION :I* HAD BE5 LO/4 ,! WORLDWIDE DE/RUCTION ( CAPITAL VALUES & ! *ANGES IT WR\TICUL> TIME ACTUAL PR(ITS MAY FAIL TO REA* ! LEVEL REQUIR$ = FUR!R ACCUMULATION4 ,S9CE ,M>X DESCRIBES ?IS PROCESS 9 ,CAPITAL1 WE NE$ NOT REPEAT ! DESCRIPTION H]E4 ,IT WILL SUFFICE TO PO9T \T ?AT PROSP]ITY & DEPRESSION CON/ITUTE ! CONTRADICTORY \TW>D G>B ( ! DEVELOPM5T ( ! SOCIAL =CES ( PRODUCTION UND] CONDITIONS ( CAPITAL PRODUCTION4 ,B\RGEOIS ECONOMIC !ORY SEES !SE EV5TS 9 A DIFF]5T LIKET1 NOT PRODUCTION & PRODUCTION RELATIONS1 >E ! ESS5TIAL FACTORS TO BE CONSID]$4 ,! GREAT CRISIS ( #aibi =C$ ! AB&ONM5T ( ! EQUILIBRIUM !ORY ( A SELF-REGULAT+ ECONOMY4 ,! CRISIS WAS 9T]PRET$ AS BAS$ ON A LACK ( EFFECTIVE DEM& DUE TO A DECL9E 9 CONSUM] NE$S %[+ UP AS A LACK ( NEW 9VE/M5TS & H5CE UNEMPLOYM5T4 ,BUT ?IS PECULI> EXPLANATION ASIDE1 B\RGEOIS !ORY ALSO AGRE$ ?AT PRODUCTION HAD TO BE /IMULAT$ IF ! CRISIS1 :I* SEEM$ TO HAVE SET 9 P]MAN5TLY1 WAS TO BE OV]COME4 ,IF ?IS WAS NOT A*IEV$ ( ITSELF FROM PR(IT-DET]M9$ M>KET RELATIONS1 /ATE 9T]V5TIONS C\LD BE US$ TO /IMULATE PRODUCTION - ! FULL EMPLOYM5T ( ! W> YE>S WAS A P]SUASIVE EXAMPLE ( ?IS4 ,S9CE IT SEEM$ ?AT CAPITAL WAS NO LONG] CAPABLE ( EXTRACT+ ITSELF FROM ! CRISIS BY MEANS ( ITS [N RES\RCES1 & S9CE ! CONT9UATION & DEEP5+ ( ! CRISIS BEGAN TO UND]M9E SOCIAL /ABILITY1 BO? B\RGEOIS PRACTITION]S & !ORETICIANS OPT$ = AN 9T]V5TIONI/ POLICY TO PRIME ! PUMP1 AS IT W]E & ELIM9ATE UNEMPLOYM5T4 ,IF PR(ITABLE EXPANSION ( PRODUCTION WAS NOT POSSIBLE1 EXPANSION 9DEP5D5T ( PR(IT WAS2 & AL?\< ?IS C\LD NOT PROMOTE CAPITAL ACCUMULATION DIRECTLY1 IT C\LD P]HAPS GET PRODUCTION GO+ AGA94 ,PRODUCTION EV5 )\T PR(IT SEEM$ BETT] ?AN /&+ /ILL1 ESPECIALLY :5 IT WAS TI$ TO ! EXPECTATION ?AT IT W\LD PROVIDE ! IMPETUS = ! RESUMPTION ( ! ACCUMULATION PROCESS4 ,! MULTIPLI] EFFECT !ORY WAS 9V5T$ TO SUB/ANTIATE ?IS REASON+4 ,! NOTION ( A MULTIPLI] HAD APPE>$ BE=E1.<#b.> AL?\< IT HAD NOT BE5 TAK5 AS S]I\SLY OR =MULAT$ AS PRECISELY AS BY ,R4 ,F4 ,KAHN & ,J4 ,M4 ,KEYNES4 ,!IR P>TICUL> =MULATION ASIDE1 IT IS OBVI\S ?AT ANY SIGNIFICANT NEW 9VE/M5T1 NO MATT] ( :AT K9D1 MU/ 9CREASE PRODUCTION IF IT IS NOT IMM$IATELY (FSET BY ! )DRAWAL ( O!R 9VE/M5TS1 & ?AT1 MOREOV]1 ?IS ADD$ PRODUCTION WILL ALSO G5]ATE SOME SURPLUS VALUE4 ,IF ! ADDITIONAL SURPLUS VALUE IS RE9VE/$ 9 MEANS ( PRODUCTION & LABOR P[]1 CAPITAL ACCUMULATION ALSO 9CREASES4 ,BUT SURPLUS VALUE IS TRANS=M$ 9TO ADDITIONAL CAPITAL ONLY :5 EXI/+ CAPITAL IS PR(ITABLE 5\< TO JU/IFY FUR!R CAPITALI/ EXPANSION4 ,! CRISIS WAS A SIGN ?AT CAPITAL WAS NOT PR(ITABLE 5\< TO ALL[ = MORE ACCUMULATION4 ,& S9CE /ATE PRODUCTION YIELDS NO PR(IT1 ITS EFFECT ON PR(ITABLE PRODUCTION 9 ! PRIVATE SECTOR CAN ONLY V]Y M>G9ALLY 9CREASE TOTAL SURPLUS VALUE4 ,AL?\< SURPLUS VALUE EXP&S 9 ! PRIVATE SECTOR AS A RESULT ( /ATE 9DUC$ PRODUCTION1 ?IS GR[? ITSELF MU/ BE MEASUR$ AGA9/ ! PRODUCTION CO/S ( ! LATT] TO DET]M9E IF IT CAN ACTUALLY 9FLU5CE ! SOCIAL SURPLUS VALUE POSITIVELY4 ,TO AVOID MISUND]/&+S WE %\LD PO9T \T ?AT JU/ AS CR$ITORS ( ! /ATE DEBT OBTA9 !IR 9T]E/1 SO DO ! PRIVATE 5T]PRISES 5GAG$ 9 /ATE 9DUC$ PRODUCTION RECEIVE AN AV]AGE1 & (T5 AN ABOVE-AV]AGE1 PR(IT4 ,!SE 9T]E/S & PR(ITS1 H[EV]1 >E NOT G5]AT$ VIA ! M>KET BUT ?R\< /ATE PUR*ASES ( ! \TPUT ! /ATE ITSELF SET 9TO MOTION1 I4E41 ! ADD$ \TPUT1 :I* 9CLUDES SURPLUS VALUE1 IS 0EX*ANG$0 = A CAPITALI/ SURPLUS VALUE 9 MONEY =M ?AT HAD BE5 CREAT$ AT AN E>LI] P]IOD4 ,! MONEY :I* FL[S FROM ! H&S ( CAPITAL TO ! /ATE RETURNS FROM :5CE IT CAME 9 AN AM\NT COMM5SURATE ) ! VOLUME ( /ATE-9DUC$ PRODUCTION4 ,9 O!R WORDS1 SURPLUS VALUE ?AT WAS ALREADY P>T ( CAPITAL IS 0EX*ANG$0 = /ATE 9DUC$ \TPUT4 ,MONEY BECOMES CAPITAL BY BE+ TRANS=M$ 9TO MEANS ( PRODUCTION & LABOR P[] US$ = ! PRODUCTION ( SURPLUS VALUE2 ?IS PROCESS1 :I* CON/ITUTES CAPITAL ACCUMULATION1 IS REPRODUC$ CONT9U\SLY4 ,9 !MSELVES MONEY & MEANS ( PRODUCTION HAVE NONE ( ! PROP]TIES ( CAPITAL2 !Y FIR/ ACQUIRE SU* PROP]TIES ?R\< ! PRODUCTION ( SURPLUS VALUE4 ,MONEY & MEANS ( PRODUCTION LIE IDLE DUR+ TIMES ( CRISIS BECAUSE NO:]E W\LD !IR EMPLOYM5T YIELD SUFFICI5T SURPLUS VALUE4 ,BUT ?\< !Y >E NOT UTILIZ$1 !Y /ILL REMA9 PRIVATE PROP]TY ?AT ! /ATE MU/ APPROPRIATE TO BEG9 /ATE 9DUC$ PRODUCTION4 ,! LATT] COMES UND] ! HEAD+ ( NEI!R PRIVATE CONSUMPTION NOR CAPITALI/ ACCUMULATION4 ,H[EV]1 CONSUMPTION ALSO EXP&S ) PRODUCTION VIA ! SURPLUS VALUE 0REALIZ$0 ?R\< /ATE-9DUC$ PRODUCTION & ?R\< ! WAGES ( ! WORK]S EMPLOY$ 9 PRODUC+ ! 9CREAS$ \TPUT1 AS WELL AS ?R\< ! EFFECTS ( /ATE 9DUC$ PRODUCTION ON PRODUCTION 9 G5]AL4 ,! F9AL PRODUCT1 H[EV]1 :I* 5DS UP 9 PUBLIC CONSUMPTION1 /ILL EMBODIES ! TOTALITY ( ITS PRODUCTION CO/S4 ,IF1 = EXAMPLE1 ! ,AM]ICAN SPACE RESE>* PROGRAM CO/S @s#b BILLION1 ?IS SUM REPRES5TS A PORTION ( ! /ATE BUDGET ?AT MU/ BE RAIS$ BY SOCIETY AS A :OLE4 ,IT CANNOT BE CAPITALIZ$1 :ATEV] ULTIMATE TE*NICAL B5EFIT MAY ACCRUE TO COMMODITY-PRODUC+ CAPITAL FROM ! A*IEVEM5TS ( SPACE RESE>*4 ,IT MU/ ALSO BE TAK5 9TO ACC\NT ?AT :ILE 9 CAPITALI/ PRODUCTION EXI/+ CAPITAL IS AMORTIZ$ )9 A C]TA9 P]IOD BY ! COMMODITIES IT PRODUCES1 & 9 ?IS WAY SURVIVES TO EXP& BY WAY ( ! SURPLUS VALUE1 UND] /ATE- 9DUC$ PRODUCTION1 PRODUCTION ( SURPLUS VALUE & AMORTIZATION ( CAPITAL CAN TAKE PLACE ONLY ?R\< ! /ATE BUDGET1 I4E41 VIA ! SURPLUS VALUE EXTRACT$ FROM ! PRIVATE SECTOR4 ,H[EV]1 /ATE-9DUC$ PRODUCTION & PRIVATE PRODUCTION >E SO COMPLEXLY 9T]WOV5 ?AT NO CLE>-CUT L9E CAN BE DRAWN BETWE5 !M4 ,5T]PRISES OP]ATE 9 BO? SECTORS AT ! SAME TIME & MAKE AS LITTLE DI/9CTION AS DOES ECONOMIC !ORY BETWE5 9COME COM+ FROM /ATE-9DUC$ PRODUCTION & ?AT ACCRU+ FROM PRODUCTION = ! PRIVATE SECTOR4 ,NATIONAL 9COME IS CALCULAT$ ON ! BASIS ( TOTAL PRODUCTION1 )\T REG>D = ! ORIG9 OR ! DE/9ATION ( ITS 9DIVIDUAL COMPON5TS4 ,BUT IF ! /ATE BUDGET GR[S MORE RAPIDLY ?AN TOTAL 9COME1 ! GAP BETWE5 PR(ITLESS & PR(ITABLE PRODUCTION WID5S4 ,! FACT ?AT 9 ! CAPITALI/ C\NTRIES AB\T ONE ?IRD ( ! NATIONAL 9COME GOES 9TO ! /ATE BUDGET & IS SUPPLEM5T$ BY DEFICIT F9ANC+ %[S ?AT MORE & MORE ( ! TOTAL SURPLUS VALUE IS BE+ KEPT \T ( PRIVATE CAPITAL =MATION4 ,CONV]SELY1 IF NATIONAL 9COME GR[S MORE RAPIDLY ?AN ! /ATE BUDGET & ! /ATE DEBT1 IT MEANS ?AT ! PROPORTION ( /ATE-9DUC$ PRODUCTION )9 TOTAL PRODUCTION IS ON ! DECREASE1 & ?AT CAPITALI/ ACCUMULATION MAY BE CORRESPOND+LY 5L>G$4 ,IT MU/1 H[EV]1 BE REMEMB]$ ?AT AT ISSUE H]E IS A /ATE-9DUC$ PRODUCTION UND]TAK5 TO COMP5SATE = SAGG+ PRIVATE PRODUCTION1 & NOT JU/ ! EXPANSION ( /ATE SP5D+ 9 ITSELF :I* MAY ALSO HAVE O!R REASONS1 E4G41 ! EXIG5CIES ( W> OR IMP]IALI/ POLICIES4 ,! IMP]IALI/ RIVALRIES ( NATIONALLY ORGANIZ$ CAPITAL HAVE ALSO GIV5 BIR? TO A /ATE APP>ATUS :I*1 9 CLOSE COLLABORATION ) ! CAPITAL 5TITIES B5EFIT+ FROM /ATE 9DUC$ PRODUCTION1 HAS E/ABLI%$ ITSELF 9 A RELATIVELY 9DEP5D5T POSITION ( P[] IT SECURES BY MA9TA9+ & EXP&+ ITS CONTROL OV] ! ECONOMY4 ,?US IT IS NOT ALWAYS CLE> TO :AT EXT5T CONT9U+ EXPANSION ( ! /ATE BUDGET D]IVES FROM ! OBJECTIVE NE$ = /ATE-9DUC$ PRODUCTION & TO :AT EXT5T IT IS =C$ ON SOCIETY BY SPECIAL 9T]E/S ALLI$ TO ! /ATE4 ,BY F> ! GREAT] P>T ( /ATE-9DUC$ PRODUCTION IS 9 ! W> & >MAM5TS 9DU/RY1 I4E41 PRODUCTION = PUBLIC CONSUMPTION4 ,?IS PRODUCTION IS AT ONCE A CAUSE & ! EXPRESSION ( ! L[ EXPANSION4 ,SPECIFICALLY1 ON ! ONE H& IT CAN BE CLAIM$ ?AT PUBLIC CONSUMPTION DETRACTS FROM ACCUMULATION1 YET IT IS ALSO >GUABLE ?AT )\T IT ECONOMIC ACTIVITY W\LD BE EV5 MORE DEPRESS$ ?AN IT ACTUALLY IS4 ,S9CE W> & >MAM5TS HAVE SO F> 9 FACT BE5 9SEP>ABLE FROM CAPITAL1 IT IS IMPOSSIBLE TO ASC]TA9 TO :AT EXT5T CURBS ON /ATE-9DUC$ PRODUCTION W\LD FUR!R CAPITAL ACCUMULATION OR DIM9I% PRODUCTIVE ACTIVITY4 ,?\< ?IS QUE/ION MAY RESI/ AN EMPIRICAL ANSW]1 WE CAN NONE!LESS EXPLORE IT !ORETICALLY4 ,ASSUM+ ?AT !RE >E NO OBJECTIVE OB/ACLES 9 ! WAY ( CAPITALI/ ACCUMULATION1 :I* C\LD GR[ BY ! AVAILABLE MASS ( SURPLUS VALUE1 ANY LOSS ( SURPLUS VALUE ?R\< PUBLIC CONSUMPTION W\LD MEAN LESS ACCUMULATION4 ,9 PR9CIPLE ! LESS CONSUMPTION !RE IS ( ANY K9D1 ! MORE CAN BE ACCUMULAT$4 ,?IS MAY BE ! CASE1 BUT NOT NECESS>ILY SO4 ,! PR(IT REQUIREM5TS ( FUR!R ACCUMULATION MAY SURPASS ! ACTUAL SURPLUS VALUE OBTA9$ AT ! EXP5SE ( CONSUMPTION BECAUSE ( AN EXI/+ DISCREPANCY BETWE5 ! EXI/+ CAPITAL /RUCTURE & ! GIV5 RATE ( EXPLOITATION1 SO ?AT ONLY A *ANGE 9 ! /RUCTURE ( CAPITAL & AN 9CREASE 9 LABOR PRODUCTIVITY CAN EXP& ! VALUE ( CAPITAL4 ,UND] SU* CONDITIONS CURBS ON PUBLIC CONSUMPTION W\LD HAVE NO EFFECT ON ACCUMULATION CAPITALI/ CRISIS W\LD !N BE NE$$ TO EFFECT ! SOCIAL *ANGES UND] :I* CAPITAL C\LD CONT9UE ! ACCUMULATION PROCESS4 ,! RESURG5CE ( ECONOMIC ACTIVITY FOLL[+ ,WORLD ,W> ,I,I WAS NOT DUE TO /ATE-9DUC$ PRODUCTION ALONE2 A F> WEI & DEPRESSION1 RAPID TE*NOLOGICAL ADVANCES1 & A CUTBACK 9 CONSUMPTION ON A WORLD SCALE L$ TO A HI< RATE ( ACCUMULATION 9 SEV]AL C\NTRIES AT ONCE4 ,! RE/ORATION ( ! W>-DEVA/AT$ 9FRA/RUCTURE & ! RESUMPTION ( CAPITAL REPRODUCTION1 NEGLECT$ DUR+ ! W>1 TOGE!R ) A /EADY1 RELATIVELY HI< LEVEL ( PUBLIC CONSUMPTION NECESSITAT$ BY CONT9U+ IMP]IALI/ P[] POLITICS1 PRODUC$ ! 0ECONOMIC MIRACLES0 9 ! RECON/RUCTION C\NTRIES & SAW ,AM]ICAN CAPITAL EXP& ACROSS ! GLOBE4 ,BUT ALL ?IS SAYS NO MORE ?AN ?AT ! SURPLUS VALUE G5]AT$ 9 PRODUCTION WAS SUFFICI5T TO MEET ! NE$S ( BO? CAPITALI/ ACCUMULATION & PUBLIC SP5D+4 ,BUT CAPITALISM'S REGA9+ ( ITS [N 9T]NAL DYNAMIC HAD TO CONT5D ) ! !ORY ( A G5]ALLY /ATIC CAPITALISM1 DEVELOP$ DUR+ ! DEPRESSION1 ACCORD+ TO :I* FULL EMPLOYM5T C\LD ONLY BE A*IEV$ ?R\< /ATE 9T]V5TION4 ,! FACT ?AT SOME C\NTRIES W]E APPROA*+ :ILE O!RS1 = ! TIME AT LEA/1 W]E 5JOY+ FULL EMPLOYM5T WAS PRO( 5\< = ! 0NEW ECONOMICS0 ?AT ! /ATE DOES 9 FACT POSSESS ! P[] TO ELIM9ATE ! CAPITALI/ BUS9ESS CYCLE4 ,BY MEANS ( MONET>Y & FISCAL POLICIES IT WAS POSSIBLE AT ANY TIME1 IT WAS ASS]T$1 = ! /ATE TO TRANS=M A FLAGG+ ECONOMY 9TO ITS OPPOSITE & TO MA9TA9 EMPLOYM5T AT ANY DESIR$ LEVEL4 ,TWO WAYS W]E PRESUMABLY AVAILABLE TO DO ?IS2 9DIRECT1 ?R\< EAS+ CR$IT T]MS TO ! PRIVATE SECTOR1 & DIRECT1 ?R\< PUBLIC SP5D+ MADE POSSIBLE BY DEFICIT F9ANC+4 ,& S9CE ! NEW UPSW+ HAD BE5 M>R$ BY P]IODS ( RECESSION ?AT W]E OV]COME BY /EPP+ UP /ATE SP5D+1 ! VIEW ?AT A M>KET ECONOMY C\LD BE /E]$ BY ! /ATE & ?AT CAPITALI/ CRISES W]E ?+S ( ! PA/ SET 9 MORE FIRMLY4 ,IF ! CAUSE ( CRISES LIES 9 AN >RE/ ( ! ACCUMULATION PROCESS1 :I* OCCURS :5 ! PORTION ( SURPLUS VALUE NOT E>M>K$ = CONSUMPTION IS NOT 9VE/$ 9 MORE MEANS ( PRODUCTION & LABOR P[]1 PRODUCTION & EMPLOYM5T MU/ NECESS>ILY DECREASE4 ,! REP]CUSSIONS ON ! OV]ALL WORK+S ( CAPITAL1 H[EV]1 GO F> BEYOND ! ACTUAL CUTBACK EFFECT$ 9 PRODUCTION4 ,! EXTREMELY 9TRICATE M>KET RELATIONS CAUSE ! CUT-BACKS 9 PRODUCTION TO WID5 9TO A G5]AL CRISIS4 ,/ATE-9DUC$ AUGM5TATION ( PRODUCTION & ITS EFFECT ON M>KET RELATIONS CAN D\BTLESS *ECK AN 5SU+ ECONOMIC RECESSION1 PROVID$ IT IS A LIMIT$ ONE EASILY DEALT ) BY LIMIT$ MEANS4 ,& 9DE$1 ! SNAGS ?AT HAVE >IS5 P]IODICALLY 9 ! ECONOMY DUR+ ! PO/W> P]IOD HAVE BE5 OV]COME BY C\NT]VAIL+ MEASURES FROM ! /ATE4 ,IT DOES NOT FOLL[1 H[EV]1 ?AT ?IS WILL CONT9UE TO BE ! CASE = ALL TIME TO COME4 ,IT TELLS US ONLY ?AT ! BEG9N+ SIGNS ( CRISIS HAVE APPE>$ 9 A SITUATION 9 :I* A FALL-(F 9 PRIVATE PRODUCTION C\LD /ILL BE (FSET BY COMP5SATORY EXPANSION ( PUBLIC EXP5DITURES4 ,ACTUALLY1 ! EXTREMELY LONG P]IOD ( DEPRESSION BE=E ,WORLD ,W> ,I,I WAS FOLL[$ BY AN EXTREMELY LONG P]IOD ( BOOM :OSE 9T]NAL FLUCTUATIONS ! /ATE HAD BE5 ABLE TO CONTROL 9 A POSITIVE FA%ION4 ,!SE W]E FLUCTUATIONS OCCURR+ 9 A G5]AL UPSW+ & NOT 9 A G5]AL CRISIS RESULT+ FROM OV]ACCUMULATION4 ,WE HAVE NOT YET HAD 5\< EXP]I5CE TO 5ABLE US TO DET]M9E :E!R IT IS )9 ! MEANS ( ! /ATE UND] CAPITALISM TO COPE ) SU* A CRISIS1 AL?\< ! LIMITS TO /ATE 9T]V5TION >E CLE>LY DISC]NIBLE4 ,! SURPLUS VALUE FROM PA/ PRODUCTION P]IODS1 :I* EI!R REMA9S 9 MONEY =M OR IS EMBODI$ 9 IDLE MEANS ( PRODUCTION BECAUSE ( ! CRISIS1 HAS LO/ ITS CAPITAL FUNCTION4 ,IT CAN REGA9 ?IS FUNCTION ONLY VIA ! PRODUCTION ( PR(IT4 ,:5 ?IS POSSIBILITY IS CLOS$1 ! /ATE IS ABLE TO APPROPRIATE UN9VE/$ MONEY & ?US EMPLOY UNUS$ MEANS ( PRODUCTION4 ,BUT ?IS DOES NOT RE/ORE !IR CAPITAL FUNCTION4 ,! MONEY & MEANS ( PRODUCTION !REBY MOBILIZ$ >E TRANS=M$ 9TO PRODUCTS ?AT >E US$ UP 9 PUBLIC CONSUMPTION & H5CE DROP \T ( ! REPRODUCTION PROCESS ( TOTAL CAPITAL4 ,:ATEV] ELSE MAY >ISE FROM ?IS PROCESS1 PRODUCTION GE>$ TO PUBLIC CONSUMPTION CEASES BE+ SURPLUS-VALUE PRODUCTION 9 ! =M ( ADDITIONAL MONEY & MEANS ( PRODUCTION4 ,! SURPLUS VALUE ( ! L>G] CAPITAL EMPLOY$ IS N[ SMALL] RELATIVE TO ! TOTAL CAPITAL4 ,A PORTION ( ! ALREADY ACCUMULAT$ CAPITAL HAS !REBY NOT ONLY LO/ ITS CAPITAL FUNCTION1 IT ALSO CEASES BE+ UNUS$ CAPITAL4 ,:]EAS1 H[EV]1 ! DE/RUCTION ( CAPITAL DUR+ A CRISIS ALT]S ! RELATION%IP BETWE5 TOTAL PR(ITS & TOTAL CAPITAL 9 SU* A WAY ?AT ! R$UC$ VALUE ( CAPITAL RAISES ! RATE ( PR(IT AT ! EXP5SE ( ! DE/ROY$ CAPITAL1 9 ! CASE ( /ATE-9DUC$ PRODUCTION = PUBLIC CONSUMPTION1 ! PR(IT & 9T]E/ CLAIMS ( ! MONEY & MEANS ( PRODUCTION !RE9 EMPLOY$ REMA9 UN*ANG$ - AS IF ?IS K9D ( PRODUCTION WAS ACTUALLY PRODUCTION = PR(IT & AS IF ! DE/RUCTION ( CAPITAL 9 PUBLIC CONSUMPTION HAD NOT OCCURR$4 ,?US 9 ! 5D ?IS K9D ( PRODUCTION DOES NOT RESULT 9 ! IMPROVEM5T 9 ! RATE ( PR(IT ?AT 5SUES DUR+ A CRISIS AS A RESULT ( ! DE/RUCTION ( CAPITAL VALUES & ! CLAIMS ON ! SOCIAL PR(IT ATTA*$ TO !M2 RA!R CAPITAL IS DE/ROY$ :ILE ITS PR(IT CLAIMS1 :I* CAN ONLY BE MET \T ( ! TOTAL SOCIAL SURPLUS VALUE >E MA9TA9$4 ,?AT PORTION ( ! TOTAL PR(ITS ( ! PRIVATE SECTOR :I* ACCRUES TO CAPITAL 5TITIES P>TICIPAT+ 9 /ATE-9DUC$ PRODUCTION MU/ BE SUBTRACT$ FROM TOTAL PR(ITS AS IT D]IVES FROM TAX REV5UES2 ?IS 5TAILS A DECREASE 9 ! PR(IT RATE ( PRODUCTIVE1 I4E41 PR(ITABLE1 CAPITAL & H5CE A SETBACK = ACCUMULATION4 ,H[EV]1 !SE CAPITAL 5TITIES CAN COMP5SATE = !IR DIM9I%$ PR(ITS BY RAIS+ PRICES1 !REBY %IFT+ ! BURD5 ( ! CO/S ( /ATE-9DUC$ PRODUCTION TO SOCIETY4 ,?US ?IS /EPP$-UP PUBLIC SP5D+ TAKES ON ! =M ( PRICE 9FLATION RESULT+ FROM ! ATTEMPT TO DUMP ! CO/S ( COMBAT+ ! CRISIS ON ! POPULATION AT L>GE1 I4E41 ! WORK+ POPULATION4 ,! PR(ITABILITY ( PRIVATE CAPITAL IS !REBY MA9TA9$ )\T ASSUM+ A FUR!R ACCUMULATION ( CAPITAL4 ,ALL ?AT IS ACCOMPLI%$ BY ?IS R\TE IS ?AT MORE WORK]S >E PUT TO WORK AT ! EXP5SE ( ! TOTAL 9COME ( ! WORK+ POPULATION4 ,?IS IS A*IEV$ BY 9FLATION>Y MEANS RA!R ?AN BY ! DEFLATION>Y PA? *OS5 9 ! PA/1 :I* PROGRESSIVELY 9CREAS$ UNEMPLOYM5T4 ,BUT S9CE !RE >E DEF9ITE LIMITS TO ! BURD5S ! WORK]S CAN BE>1 & ! DROP 9 REAL WAGES DUE TO PRICE 9FLATION MEETS ) !IR RESI/ANCE1 ! F9ANC+ ( PUBLIC SP5D+ AT ! EXP5SE ( ! WORK+ CLASS SOON] OR LAT] REA*ES A LIMIT IT CANNOT EXCE$4 ,FROM ?IS PO9T ONW>D PUBLIC CONSUMPTION CAN ONLY CONT9UE TO GR[ AT ! EXP5SE ( CAPITAL4 ,IF CAPITAL ACCUMULATION IS NOT RESUM$1 ! CRISIS DEEP5S & UNEMPLOYM5T GR[S4 ,/ATE-9DUC$ PRODUCTION MU/ !N EXP& IF IT IS TO CONT9UE 9 ITS COMP5SATORY CYCLE4 ,! EFFECT IS GR[+ PRESSURE ON ! PR(IT RATE ( PRODUCTIVE CAPITAL1 :I* MAKES ! RESUMPTION ( ACCUMULATION EV] MORE DIFFICULT1 !REBY PROLONG+ ! DEPRESSION4 ,IF ! EXPANSION ( /ATE-9DUC$ PRODUCTION DOES NOT /OP1 IT TOO BECOMES A FACTOR AGGRAVAT+ ! CRISIS1 AL?\< IT HAD ORIG9ALLY BE5 9T5D$ AS A MEANS TO BEAT IT1 & 9DE$ = A TIME ACTUALLY DID FUNCTION AS SU*4 ,BUT IT HAD ?IS EFFECT ONLY ) REG>D TO TOTAL MAT]IAL PRODUCTION1 )\T 5HANC+ CAPITAL ACCUMULATION4 ,IT DID NOT YIELD 5\< PR(ITS TO ACCOMPLI% MORE ?AN AN 9CREASE ( PRODUCTION ?R\< DECREAS+ PR(ITABILITY ( CAPITAL4 ,AS DEPRESSION CONT9UES1 EV5 ?IS ABILITY WILL BE LO/2 AS /ATE-9DUC$ PRODUCTION EXP&S1 PRIVATE PRODUCTION MU/ DECREASE &1 AS A CONSEQU5CE1 WILL LOSE ! ABILITY TO COV] 9CREAS$ PUBLIC SP5D+4 ,! CYCLICAL MOVEM5T ( CAPITAL HAS SO F> PREV5T$ A CRISIS FROM SETT+ 9 P]MAN5TLY1 & !RE IS NO EMPIRICAL EVID5CE ?AT PR(ITLESS PRODUCTION IS POSSIBLE ONLY AT ! EXP5SE ( PR(ITABLE PRODUCTION & IS !RE=E LIMIT$ BY ! LATT]4 ,! PO9T TO BE GA9$ H]E1 H[EV]1 IS ! 9SIG$ CONT9UATION ( COMP5SATORY /ATE PRODUCTION4 ,IF CAPITAL DOES NOT AUTONOM\SLY MOVE ON TO RESUME ACCUMULATION ON ITS [N T]MS1 ! IMPETUS GIV5 TO IT BY /ATE-9DUC$ PRODUCTION WILL GRADUALLY LOSE ITS DRIV+ =CE1 UNTIL IT F9ALLY BECOMES AN OB/ACLE TO ACCUMULATION4 ,PRODUCTION 9 ! /ATE SECTOR IS TI$ TO ! PR(ITS ( ! PRIVATE SECTOR1 & ITS EXPANSION IS CONT+5T ON ! LATT]'S 9CREASE4 ,IF ?IS DOES NOT OCCUR1 ! SITUATION ( ! PRIVATE SECTOR CAN ONLY CONT9UE TO GR[ WORSE1 UNTIL IT MAKES FUR!R EXPANSION ( ! /ATE SECTOR OBJECTIVELY IMPOSSIBLE4 ,BUT PRIVATE CAPITAL1 :I* /ILL CONTROLS SOCIETY EV5 9 A 0MIX$ ECONOMY10 W\LD /OP EXPANSION 9 ! PUBLIC SECTOR LONG BE=E IT REA*$ ITS OBJECTIVE LIMITS4 ,/ATE-9DUC$ PRODUCTION IS ALL[$ TO EXP& ONLY TO ! EXT5T ?IS CAN BE BORNE BY CAPITAL1 I4E41 SO LONG AS IT DOES NOT CALL 9TO QUE/ION ! CONT9U$ EXI/5CE & GR[? ( CAPITAL4 ,IT MAY !RE=E ONLY BE REG>D$ AS A TEMPOR>Y MEASURE ?AT AT A SPECIFIC PO9T 9 CAPITALI/ DECL9E MU/ BE /OPP$1 !REBY CEAS+ TO BE A FACTOR WORK+ AGA9/ ?IS DECL9E4 ,ACTUALLY1 & AP>T FROM W> PRODUCTION1 ! EXPANSION ( /ATE-9DUC$ PRODUCTION HAS TAK5 PLACE NOT :ILE CAPITALISM WAS /&+ RELATIVELY /ILL BUT DUR+ AN UPSW+1 :I* WAS VIEW$ AS ! FRUIT ( A MIX$ ECONOMY4 ,BUT ! REALITY ( ! SITUATION WAS JU/ ! OPPOSITE4 ,! UPSW+ RESULT+ FROM ! RE/ORATION ( PR(ITABILITY WAS L>GE 5\< SO ?AT EV5 ?\< PUBLIC CONSUMPTION CONT9U$ TO GR[ /EADILY1 A /ATE ( RELATIVE PROSP]ITY1 SE5 9 CAPITALI/ T]MS1 WAS A*IEV$4 ,S9CE ! TASK ( /ATE ECONOMIC POLICY WAS TO EXP& LAGG+ PRODUCTION1 ! ECONOMIC UPSW+ %\LD HAVE RESULT$ 9 A CONTRACTION ( /AT$-9DUC$ PRODUCTION2 ?IS1 H[EV]1 WAS NOT ! CASE4 ,TO BE SURE1 RELATIVE TO ! OV]ALL GR[? 9 PRODUCTION1 ! EXPANSION ( ! /ATE SECTOR PROCE$$ AT A SL[] PACE1 ! PRACTICE ( BUDGET>Y DEFICITS WAS CURTAIL$1 & ! SIZE ( !SE DEFICITS WAS R$UC$2 ! /ATE DEFICIT1 H[EV]1 CONT9U$ TO RISE1 AL?\< MORE SL[LY ?AN BE=E4 ,AS F> AS EXPANSION ( ! PRIVATE SECTOR WAS CONC]N$1 ?IS SITUATION SEEM$ TO BE IDEAL NOT ONLY FROM ! /&PO9T ( CURR5T ECONOMIC !ORY BUT ALSO = CAPITAL ITSELF1 AS WELL AS = ?OSE ) VE/$ 9T]E/S 9 PUBLIC SP5D+4 ,BUT ! CAPITAL GR[? ?AT W5T ON 9DEP5D5TLY DESPITE RELATIVELY HI< PUBLIC CONSUMPTION REMA9$ 9 L>GE MEASURE UND] ! 9FLU5CE ( /ATE ECONOMIC POLICY I4E41 ITS MONET>Y & CR$IT1 IF NOT SO MU* ITS FISCAL1 ASPECTS4 ,! :OLE ( CAPITALI/ PRODUCTION HAD LONG BE5 BAS$ ON ! CR$IT ME*ANISM4 ,BUT CR$IT NOT ONLY REMA9$ DEP5D5T ON ! MA9T5ANCE ( A GIV5 LEVEL ( PR(ITABILITY1 IT WAS ALSO LIMIT$ 9 ITS EXPANSION BY /ATE CONTROLS OV] MONEY & CR$IT1 AL?\< !SE LIMITS W]E FLEXIBLE4 ,?R\< CR$IT PRODUCTION CAN BE EXP&$ BEYOND ! LIMITS TO :I* IT IS SUBJECT IF !RE IS NO CR$IT4 ,?US ADDITIONAL /ATE-9DUC$ PRODUCTION IS MADE POSSIBLE BY CR$IT4 I4E41 BY /ATE DEBT & SIMIL>LY PRODUCTION 9 ! PRIVATE SECTOR CAN BE EXP&$ BY WID5+ ! CR$IT ME*ANISM4 ,?R\< ITS P[] TO CREATE MONEY & EXT5D CR$IT1 ! /ATE IS ABLE TO EXP& OR CONTRACT ! BASIS ( CR$IT 9 V>I\S WAYS4 ,! CR$IT VOLUME & 9T]E/ RATES CAN 9 L>GE MEASURE BE CONTROLL$1 BANK L5D+ /IMULAT$1 & PRODUCTION ACCORD+LY EXP&$ BY A *EAP MONEY POLICY1 BY 9CREAS+ ! MONEY SUPPLY1 BY ! DISC\NT POLICY ( ! C5TRAL BANK1 & BY ! 0OP5 M>KET POLICY10 AS IT IS CALL$4 ,! BOOM WAS ACCOMPANI$ BY RAPID GR[? 9 ! MONEY SUPPLY & 9 CR$IT1 :I* SEW$ 9 TWO RESPECTS4 ,FIR/1 IT HELP$ TO EXP& PRODUCTION1 & SECOND1 IT EFFECT$ A REAPPORTIONM5T ( SOCIAL 9COME 9 FAVOR ( CAPITAL4 ,EV]Y EXPANSION ( CR$IT T5DS T[>D 9FLATION1 & A SY/EMATIC1 /ATE-5C\RAG$ MONEY & CR$IT EXPANSION IS P>TICUL>LY 9FLATION>Y4 ,TO TOP ALL ?IS (F !RE IS ALSO ! 9FLATION>Y 9FLU5CE ( PR(ITLESS /ATE-9DUC$ PRODUCTION4 ,BUT 9FLATION1 :I* AT FIR/ ONLY CREPT ALONG AS ! BOOM PROCE$$ APACE1 WAS ACCEPT$ AS ! PRICE ?AT HAD TO BE J PAID = ECONOMIC GR[? & WAS ?\Y ECONOMY2 9DE$1 IT WAS >GU$1 ! 9FLATION ?AT W5T ALONG ) GR[? WAS ONLY ! EXPRESSION ( ! SECRET1 DISCOV]$ BY ! 0NEW ECONOMICS10 ( P]MAN5T FULL EMPLOYM5T & ECONOMIC /ABILITY4 ,ACTUALLY1 ! 9CREAS+ RATE ( 9FLATION PO9T$ TO AN 9T]NAL WEAKNESS ( ! BOOM2 NAMELY1 IT ALL[$ ! /ATE NEI!R TO CUT (F ITS EXPANSIVE MONEY & CR$IT POLICY NOR TO CUT BACK ON PUBLIC SP5D+ TO ANY SIGNIFICANT EXT5T4 ,EV]Y CONTRACTION ( CR$IT & EV]Y R$UCTION 9 ! MONEY SUPPLY1 & 9DE$ EV]Y DECREASE 9 PUBLIC CONSUMPTION1 HAD AN IMM$IATE NEGATIVE EFFECT ON ! C\RSE ( ! ECONOMY & W]E DISC>D$ 9 FAVOR ( A RESUMPTION ( AN 9FLATION>Y POLICY4 ,?US ! WAVES ( PROSP]ITY ?AT FOLL[$ ,WORLD ,W> ,I,I TURN$ \T TO BE MOVEM5TS ?AT DEP5D$ TO SOME EXT5T ON /ATE MONET>Y & FISCAL POLICIES1 AL?\< 9 A FEW C\NTRIES !Y HAD BE5 ABLE TO RAISE G5]AL DEM& TO ! LEVEL ( FULL EMPLOYM5T4 ,OBVI\SLY MONEY & CR$IT POLICIES CAN !MSELVES *ANGE NO?+ ) REG>D TO PR(ITABILITY OR 9SUFFICI5T PR(ITS4 ,PR(ITS COME ONLY FROM PRODUCTION1 FROM ! SURPLUS VALUE PRODUC$ BY WORK]S4 ,IF ! SURPLUS VALUE IS SUFFICI5T = EXP&$ REPRODUCTION ( CAPITAL1 A P]IOD ( CAPITALI/ PROSP]ITY SETS 94 ,BUT IF CAPITALI/ EXPANSION MU/ BE PRIM$ BY MONEY & CR$IT POLICIES TO /IMULATE DEM&1 IT IS NOT LONG BE=E IT BECOMES CLE> ?AT SOME?+ IS WRONG ) PRODUCTION = PR(IT4 ,! EXPANSION ( CR$IT HAS ALWAYS BE5 TAK5 AS A SIGN ( A COM+ CRISIS1 9 ! S5SE ?AT IT REFLECT$ ! ATTEMPT ( 9DIVIDUAL CAPITAL 5TITIES TO EXP& DESPITE %>P5+ COMPETITION1 & H5CE TO SURVIVE ! CRISIS4 ,CR$IT HAS ALWAYS BE5 A MEANS ( CAPITAL CONC5TRATION :5EV] PR(ITABILITY FALLS4 ,AL?\< ! EXPANSION ( CR$IT HAS /AV$ (F CRISIS = A %ORT TIME1 IT HAS NEV] PREV5T$ IT1 S9CE ULTIMATELY IT IS ! REAL RELATION%IP BETWE5 TOTAL PR(ITS & ! NE$S ( SOCIAL CAPITAL TO EXP& 9 VALUE :I* IS ! DECISIVE FACTOR1 & ?AT CANNOT BE ALT]$ BY CR$IT4 ,IT IS NOT CR$IT BUT ONLY ! 9CREASE 9 PRODUCTION MADE POSSIBLE BY IT ?AT 9CREASES SURPLUS VALUE4 ,IT IS !N ! RATE ( EXPLOITATION :I* DET]M9ES CR$IT EXPANSION4 ,TO /IMULATE ! G5]AL DEM&1 ! EXPANSIVE /ATE-IMPOS$ MONEY & CR$IT POLICIES MU/ 9CREASE PR(IT4 ,IF PR(IT DOES NOT 9CREASE RELATIVE TO ! 9VE/$ CAPITAL & 9CREAS$ PRODUCTION1 YET ! LEVEL ( PRODUCTION MADE POSSIBLE BY CR$IT IS TO BE SU/A9$1 ! DI/RIBUTION ( ! SOCIAL PRODUCT BETWE5 CAPITAL & LABOR MU/ BE ALT]$ TO 5SURE ! PR(ITABILITY ( CAPITAL4 ,IF PRICES RISE FA/] ?AN WAGES1 !N C\LD NOT BE EXTRACT$ FROM ! WORK]S 9 PRODUCTION IS TAK5 FROM !M 9 ! CIRCULATION PROCESS4 ,?IS IS AT ONCE ! CAUSE & ! CONSEQU5CE ( ! EXPANSION ( MONEY & CR$IT1 SO ?AT AN 9FLATION>Y GR[? 9 PR(ITS APPE>S AS ACCEL]AT+ 9FLATION4 ,TO ! EXT5T ?AT AN EXPANSIVE MONET>Y & CR$IT POLICY S]V$ TO 9CREASE PR(ITS1 IT FUR!R$ CAPITAL PRODUCTION1 AL?\< IT WAS AT ! SAME TIME A SIGN ( 9ADEQUATE PR(ITABILITY1 ALBEIT CONCEAL$1 & ADD$ TO ! /ATE DEBT A PRIVATE DEBT ?AT WAS MANY TIMES GREAT]4 ,! /EADY GR[? ( DEBT C\LD BE SU/A9$ ONLY IF CAPITAL ACCUMULATION C\LD PROGRESS UN9T]RUPT$ BY WAY ( CR$IT EXPANSION4 ,ONCE ACCUMULATION /OPS1 ! EXPANSION ( PRODUCTION ?R\< MONET>Y & CR$IT POLICIES /OPS AS WELL1 & !IR PROGRESSIVE EFFECT IS TRANS=M$ 9TO ITS OPPOSITE4 ,BUT S9CE ACCUMULATION 5TAILS A FALL+ RATE ( PR(IT1 MANAGEM5T ( ! ECONOMY BY WAY ( MONET>Y & CR$IT POLICIES & BY MEANS ( /ATE-9DUC$ PRODUCTION MU/ EV5TUALLY F9D ITS 5D 9 ! CONTRADICTIONS ( ! ACCUMULATION PROCESS4 ,ANO!R WEAKNESS 9H]5T 9 ! PO/W> BOOM WAS ! FACT ?AT IT WAS UNEV5LY DI/RIBUT$ AMONG ! V>I\S CAPITALI/ C\NTRIES1 TO SAY NO?+ ( ! NEGATIVE EFFECTS IT HAD ON ! UND]DEVELOP$ NATIONS4 ,AL?\< ! LATT] CONSEQU5CE WAS FAVORABLE TO GR[? 9 ! CAPITALI/ C\NTRIES1 9 ?AT IT GU>ANTE$ A *EAP S\RCE ( RAW MAT]IALS TO ! DEVELOP$ C\NTRIES1 IT WAS ALSO A SIGN ?AT ! BOOM WAS NOT /RONG 5\< TO 5VELOP ! 5TIRE WORLD ECONOMY & !REBY BECOME G5]AL4 ,! ACCUMULATION RATE WAS HI< ONLY 9 ! ,WE/]N ,EUROPEAN C\NTRIES & ,JAPAN2 9 ! ,UNIT$ ,/ATES IT REMA9$ BEL[ ITS HI/ORICAL AV]AGE1 :ILE ! RE/ ( ! WORLD = ! MO/ P>T /AGNAT$4 ,BUT ! PACE ( 9VE/M5TS PROMOT$ BY GOV]NM5T POLICIES 9 ,WE/]N ,EUROPE & ,JAPAN DID BR+ AB\T AN EXCEPTIONAL & LONG-LA/+ PROSP]ITY4 ,! OV]ALL /&>D ( LIV+ ROSE AS A CONSEQU5CE ( A RAPID 9CREASE 9 LABOR PRODUCTIVITY & ! P>TICUL> /RUCTURE ( ,EUROPEAN & ,JAPANESE CAPITAL4 ,AL?\< ! HI< GR[? RATES HIT SNAGS FROM TIME TO TIME1 SETBACKS W]E QUICKLY OV]COME4 ,9 ! ,UNIT$ ,/ATES1 H[EV]1 FULL EMPLOYM5T & FULL UTILIZATION ( PRODUCTION CAPACITY W]E NOT A*IEV$4 ,! CREEP+ 9FLATION ?AT ACCOMPANI$ ! ECONOMIC BOOM ALSO WAS ! VEHICLE ?AT C>RI$ IT ALONG BUT IT WAS ALSO A SIGN ( AN IMMAN5T CONTRADICTION 9S(> AS CONT9UANCE ( ! BOOM WAS CONT+5T ON AN ACCEL]AT+ 9FLATION RATE4 ,9FLATION IS AN EXPRESSION ( 9ADEQUATE PR(ITS ?AT MU/ BE (FSET BY PRICE & MONEY POLICIES4 ,!RE=E 9 ! DEVELOP+ CAPITALI/ C\NTRIES1 ,BRAZIL1 = EXAMPLE1 9FLATION IS ! MEASURE *OS5 TO BR+ PR(ITS 9TO L9E ) ! PACE ( ACCUMULATION1 I4E41 TO ACCEL]ATE EXPANSION AT ! EXP5SE ( WORK+-CLASS CONSUMPTION1 TO PROMOTE EXPORTS1 OR TO DO BO? AT ONCE4 ,?US UND] ANY CIRCUM/ANCES 9FLATION SPELLS ! NE$ = HI<] PR(ITS1 :E!R ?IS BE ! NE$ ( A P>TICUL> CAPITAL 5TITY TO OBTA9 PR(ITS OR A G5]AL EF=T TO ADD /EAM TO ACCUMULATION4 ,CAPITALI/ ACCUMULATION IS A /RUGGLE BETWE5 LABOR & CAPITAL1 & )9 C]TA9 DEF9ITE LIMITS ?IS /RUGGLE DET]M9ES H[ MU* SURPLUS VALUE IS PRODUC$4 ,AT ! SAME TIME H[EV]1 ACCUMULATION IS CAPITAL'S COMPETITIVE /RUGGLE AT ! NATIONAL & 9T]NATIONAL LEVELS TO DET]M9E H[ SURPLUS VALUE IS TO BE APPORTION$4 ,MONET>Y POLICY AFFECTS BO? !SE CONTE/S4 ,9FLATION MAKES LABOR *EAP]1 :I* IMPROVES ! ABILITY ( NATIONAL CAPITAL TO COMPETE1 AL?\< ONLY :5 ! 9FLATION RATES V>Y FROM C\NTRY TO C\NTRY1 :I* 9 TURN IS DEP5D5T ON ! CLASS /RUGGLE 9 ! DIFF]5T C\NTRIES & ON ! P>TICUL> ECONOMIC POSITION ( EA* NATION )9 ! WORLD ECONOMY AS A :OLE4 ,! 9T]NATIONAL /RUGGLE ( COMPETITION IS ALSO WAG$ OV] MONET>Y POLICY4 ,AT ! SAME TIME1 H[EV]1 ! B\RGEOISIE IS 9T]E/$ 9 EAS+ COMPETITION1 SO ?AT ATTEMPTS >E MADE CONT9UALLY TO BR+ SOME ORD] 9TO MONET>Y & CR$IT RELATIONS ?R\< 9T]NATIONAL AGREEM5TS4 ,! CAPITALI/ ECONOMY IS A WORLD ECONOMY :OSE EXI/5CE ASSUMES COMPETITION4 ,COMPETITION DRIVES CAPITAL CONC5TRATION =W>D BO? NATIONALLY & 9T]NATIONALLY4 ,BUT ! PROGRESSIVE ELIM9ATION ( COMPETITION AT ! NATIONAL LEVEL ONLY MAKES ALL ! CONTRADICTIONS 9H]5T 9 ! SY/EM MORE ACUTE1 S9CE ACCUMULATION1 EXPRESS$ 9 CONC5TRATION1 9T5SIFIES ! PRESSURE ON ! PR(IT RATE & H5CE H>%5S ALL SOCIAL CONFLICTS2 9 LIKE MANN]1 RA!R ?AN BE+ A SIGN ( DIM9I%+ CAPITALI/ ANTAGONISMS1 ! 9T]NATIONAL CONC5TRATION ( CAPITAL M]ELY GIVES !SE ANTAGONISMS A MORE OV]TLY IMP]IALI/ *>ACT]1 AS EVID5C$ SO F> BY TWO WORLD W>S & A NUMB] ( LOCALIZ$ W>S4 ,LIKE ! CAPITALI/ CRISIS IMP]IALI/ RIVALRY IS BO? ! CAUSE & EFFECT ( ! CAPITALI/ ECONOMY & CANNOT BE SEP>AT$ FROM CAPITAL'S NE$ TO ACCUMULATE4 ,?US ! PO/W> BOOM MU/ NOT BE SE5 JU/ AB/RACTLY1 AS A CONSEQU5CE ( CAPITAL'S CYCLIC MOVEM5T1 BUT AS ! RESULT AS WELL ( *ANGES WR\ ,I,I & ! EFFECTS !SE *ANGES HAD ON 9T]NATIONAL COMPETITION - ! BOOM WAS ALSO 9 L>GE MEASURE DET]M9$ BY ! RIVALRIES EM]G+ AMONG ! VICTORI\S P[]S1 :O W]E FAC$ ) ! TASK ( CONSOLIDAT+ !IR CONQUE/S & FUR!R EXT5D+ !IR POSITIONS ( P[]4 ,!RE CAN BE NO QUE/ION ?AT ! RELATIVELY RAPID RECON/RUCTION ( ! CAPITALI/ ECONOMIES ( ,WE/]N ,EUROPE & ,JAPAN WAS PRIM$ 9ITIALLY BY ,AM]ICAN AID1 (F]$ \T ( IMP]IALI/IC CONSID]ATIONS2 NOT ONLY W]E CR$ITS GRANT$1 BUT ! EXPORT POT5TIAL ( !SE C\NTRIES RECEIV$ A P[]FUL %OT 9 ! >M FROM ! F>-RANG+ IMP]IALI/ AMBITIONS ( ! ,UNIT$ ,/ATES4 ,! RELATIVELY L[ RATE ( ACCUMULATION 9 ! ,UNIT$ ,/ATES & ! R$UC$ PR(IT RATE OCCASION$ BY W> & >MAM5TS PRODUCTION =C$ ,AM]ICAN CAPITAL TO EXPORT CAPITAL TO C\NTRIES :]E MORE ABUNDANT PR(ITS AWAIT$ !M1 :I* FUR!R AUGM5T$ !IR ALREADY 9FLAT$ RATES ( 9VE/M5T4 ,BUT ?IS FEV]I% ACTIVITY1 TOGE!R ) ! UNABAT+ EXPANSION ( CR$IT 9 ! ,UNIT$ ,/ATES1 CAUS$ 9FLATION TO SPREAD TO ONE C\NTRY AFT] ANO!R1 UNTIL IT F9ALLY BECAME A WORLD PH5OM5ON4 ,AS ECONOMIC GR[? 9 ,JAPAN & ,WE/]N ,EUROPE PROCE$$1 ! RELATIONS ( !SE C\NTRIES ) ! WORLD M>KET1 & ) ! ,UNIT$ ,/ATES 9 P>TICUL>1 *ANG$4 ,! LABOR PRODUCTIVITY GAP BETWE5 ! ,UNIT$ ,/ATES & ! O!R CAPITALI/ C\NTRIES1 :I* DEP5D$ ON ! VOLUME ( CAPITAL 9VE/$ & ON ! 5DS TO :I* IT WAS PUT1 GREW N>R[]1 & ,AM]ICA'S DOM9ANT %>E 9 WORLD TRADE %RUNK CORRESPOND+LY1 UNTIL ! ,UNIT$ ,/ATES F\ND ITSELF ) A NEGATIVE BALANCE ( TRADE ON ITS H&S4 ,! BALANCE ( PAYM5TS HAD ALREADY BE5 NEGATIVE = QUITE SOME TIME BECAUSE ( ! CO/ ( IMP]IALI/ POLITICS & ! 9ITIAL ONE-WAY FL[ ( CAPITAL EXPORTS4 ,?US ,EUROPEAN EXPANSION WAS P>TLY MADE POSSIBLE BY ,AM]ICA'S NEGATIVE BALANCE ( PAYM5TS & ATT5DANT 9FLATION>Y MONET>Y & CR$IT POLICIES4 ,AM]ICAN MONET>Y POLICY BECAME AN 9/RUM5T ( IMP]IALI/ EXPANSION NOT ONLY TO SECURE ,U4,S4 SPH]ES ( 9FLU5CE 9 WORLD P[] POLITICS BUT ALSO TO 5L>GE DIRECT 9VE/M5TS 9 O!R C\NTRIES1 ESPECIALLY 9 GR[+ ,WE/]N ,EUROPE4 ,FROM ! /&PO9T ( ! WORLD ECONOMY AS A :OLE1 IT MAKES NO DIFF]5CE 9 :AT NATION CAPITAL IS ACCUMULAT$1 EV5 ?\< FROM A NATIONAL P]SPECTIVE ?IS SAME PROCESS WILL LOOK DIFF]5T4 ,AS LONG AS CAPITAL CAN MOVE FREELY1 IT 9VE/S :]E IT EXPECTS ! HIE TO BE HAD & ACCORD+LY /IMULATES G5]AL ECONOMIC ACTIVITY 9 FAVOR ( ! 9VE/$ CAPITAL4 ,S9CE ALL CAPITALI/ C\NTRIES EXPORT & IMPORT CAPITAL1 ONE CAN ONLY SAY APROPOS ( ! EXTRAORD9>ILY L>GE VOLUME ( ,AM]ICAN CAPITAL EX-PORT ?AT ! ,UNIT$ ,/ATES M]ELY TOOK ADVANTAGE ( ! EXI/+ OPPORTUNITY TO GA9 A FOO?OLD 9 O!R C\NTRIES1 & ?AT ?IS OPPORTUNITY EM]G$ FROM ! PECULI>ITIES ( ! PO/W> SITUATION & FROM /ATE MONET>Y & CR$IT POLICIES4 ,! DIRECT =EIGN 9VE/M5TS & ! VOLUME 9 :I* !Y OCCURR$ ONLY ACCEL]AT$ ! G5]AL 9FLATION ?AT WAS ALREADY UND] WAY 9 ! ,UNIT$ ,/ATES4 ,NONE!LESS !SE PROCESSES1 IF !Y DID NOT CONTA9 ! SECRET TO ! BOOM ITSELF1 9 ANY EV5T W]E ! EXPRESSION ( ITS PRON\NC$ 9FLATION>Y *>ACT]4 ,ALL ! UPS & D[NS ( ! MO/ REC5T PA/ & PRES5T ON ! M>KET ?R\<\T ! WORLD ECONOMY >E TRACEABLE TO !SE PROCESSES4 ,IT IS ONLY ! M>KET1 ( C\RSE1 TO :I* CAPITAL CAN RELATE & TO :I* IT MU/ REACT 9 ONE WAY OR ANO!R4 ,IT IS ALSO ONLY M>KET PROCESSES :I* ! /ATE SEEKS TO 9FLU5CE 9 :ATEV] WAYS IT DEEMS B5EFICIAL OR NECESS>Y4 ,YET ! UND]LY+ /ATE ( ?+S 9 ! SPH]E ( PR(ITABLE PRODUCTION REMA9S CLOS$ TO SCRUT9Y & PRACTICAL ACTION1 AL?\< IT IS ! FACTOR ?AT DET]M9ES ! C\RSE ( ACCUMULATION4 ,BY ITS NATURE ! CAPITALI/ MODE ( PRODUCTION PRECLUDES EMPIRICAL 9SIKET BECOMES ! PO9T ( REF]5CE = ALL CAPITALI/ DECISIONS1 AL?\< !SE DECISIONS >E /ILL SUBJECT TO ! 9FLU5CE ( PROCESSES TAK+ PLACE 9 ! PRODUCTION SPH]E4 ,!Y /ILL MU/ BE IMPLEM5T$ AT ! LEVEL ( ! M>KET1 H[EV]1 ON ! T]MS SET BY COMPETITION1 SO ?AT ONE IS LEFT ) NO WAY ( KN[+ :E!R SU* DECISIONS CORRESPOND TO REALITIES 9 ! PRODUCTION SPH]E4 ,:ATEV] ! CIRCUM/ANCES1 ALL MOVEM5TS ( 9DIVIDUAL CAPITAL1 & H5CE ( CAPITAL AS A TOTALITY1 >E AIM$ AT MA9TA9+ A /ATE ( EXP&+ PR(ITS & H5CE CORRESPOND TO PROCESSES 9 ! PRODUCTION SPH]E1 )\T ?IS GU>ANTEE+ ?AT !Y WILL BE SUCCESSFUL4 ,! QUE/ = PR(ITS IS NOT 5\< TO 5SURE GETT+ !M1 & ONLY ! SURPLUS VALUE CURR5TLY BE+ PRODUC$ TO MEET ! EXPANSION NE$S ( ALREADY ACCUMULAT$ CAPITAL CAN PRODUCE PR(ITS2 BUT ! MAGNITUDE ( ?IS SURPLUS VALUE IS AN UNKN[N QUANTITY & IS ONLY 9DIRECTLY EXPRESS$ 9 ! UPS & D[NS ( ! BUS9ESS CYCLE4 ,! BUS9ESS CYCLE 9 ! ,WE/]N C\NTRIES WAS1 IT IS TRUE1 M>R$ BY 9FLATION1 BUT IT ALSO BR\\S$ EXPECTATIONS ( A CONT9U$ & P]HAPS P]MAN5T BOOM4 ,! ACCEL]AT+ 9FLATION RATE1 H[EV]1 WAS AN UNMI/AKABLE SIGN ?AT TO MA9TA9 ! LEVEL ( PR(ITABILITY NE$$ TO CONT9UE ECONOMIC GR[? W\LD REQUIRE 9CREAS$ RELIANCE ON GOV]NM5T EXPANSION ( MONEY & CR$IT1 & ?AT )\T !SE GOV]NM5T MEASURES1 GR[? W\LD SLACK54 ,?US CONT9U$ ECONOMIC GR[? DEP5D$ ON /ATE MONEY & POLICIES1 & TO CLE> ! WAY = !M1 ALL ! 5CUMBRANCES ?AT HAD BE5 PLAC$ 9 ITS WAY BY PA/ DEVELOPM5TS HAD TO BE REMOV$4 ,! FIR/ MEASURE TO ?IS 5D1 !RE=E1 WAS ! ABOLITION ( COMMODITY MONEY AT ! NATIONAL LEVEL1 LAT] TO BE FOLL[$ 9T]NATIONALLY BY ! ABOLITION ( ! GOLD CONV]TIBILITY ( ! 9T]NATIONAL RES]VE CURR5CY4 ,PRODUCTION CONT9U$ TO DECL9E & UNEMPLOYM5T TO 9CREASE1 :ILE 9FLATION PROCE$$ UNABAT$1 UNTIL IT F9ALLY BECAME EVID5T ?AT ! CRISIS-PRONE NATURE ( CAPITALI/ ACCUMULATION C\LD NOT BE ELIM9AT$ BY /ATE MANIPULATIONS ( ! ECONOMY4 ,! GR[+ 9FLATION RATE1 :I* WAS BUT ! \TW>D REFLECTION ( A CR$IT EXPANSION BAS$ P>TLY ON ! ANTICIPATION ( FUTURE PR(ITS1 WAS ALSO UNABLE TO PREV5T ! DECL9E 9 REAL PR(ITS4 ,EXPANSIVE MONET>Y & CR$IT POLICIES ONLY DROVE PRICES UPW>D )\T NOTABLY 9CREAS+ PRODUCTION4 ,) PR(ITS FALL+ CAPITALI/S W]E RELUCTANT TO 9VE/ & RESORT$ TO PRICE RISES TO REC\P !IR LOSSES4 ,! MONOPOLIES' P[] TO FIX PRICES >BITR>ILY FACILITAT$ ?IS PROCESS1 :I* WAS ALREADY CONTA9$ 9 EMBRYO 9 MONEY & CR$IT POLICIES4 ,! GR[+ 9FLATION RATE ?REAT5$ TO DEVELOP 9TO A GALLOP ULTIMATELY AS P]NICI\S TO A CAPITALI/ ECONOMY AS WAS A /ATE ( CRISIS MADE WORSE BY DEFLATION4 ,9FLATION CAN1 ( C\RSE1 BE ABOLI%$ BY REV]S+ MONET>Y & CR$IT POLICIES NOT SO1 H[EV]1 ! %ORTAGE ( PR(ITS1 :I* ACCEL]ATES PRICE 9FLATION4 ,ANY RE/RICTION ON ! EXPANSION ( MONEY & CR$IT IS REFLECT$ 9 A FUR!R DECL9E 9 ECONOMIC ACTIVITY & 9 RIS+ UNEMPLOYM5T4 ,GOV]NM5TS1 !RE=E1 >E RELUCTANT TO EFFECT A RADICAL REV]SAL 9 !IR MONEY & CR$IT POLICIES4 ,S9CE1 H[EV]1 ! CRISIS IS N[ A TANGIBLE REALITY DESPITE ! EXPANSIVE MONEY & CR$IT POLICIES1 GOV]NM5TS HAVE A *OICE BETWE5 TWO EVILS & TAKE :AT APPE>S TO !M ! LESS] ( ! TWO 9 ! GIV5 CIRCUM/ANCES4 ,BRAKES >E APPLI$ TO 9FLATION BY CONTRACT+ CR$IT & R$UC+ ! SUPPLY ( MONEY OR BY /ATE PRICE & WAGE REGULATIONS1 AL?\< AT A CRITICAL PO9T ! GOV]NM5T WILL REV]T FROM DEFLATION>Y MEASURES BACK TO AN 9FLATION>Y POLICY4 ,?R\< APPLY+ ALT]NATIVE DOSES ( DEFLATION & 9FLATION EF=TS >E MADE TO >RE/ ! 9FLATION>Y PROCESS & AT ! SAME TIME PREV5T RAPID ECONOMIC DIS9TEGRATION1 9 ! HOPES ?AT SOON] OR LAT] PR(ITABILITY WILL IMPROVE & ! ECONOMIC RECESSION WILL BE BR\ 9 ONE P>TICUL> C\NTRY FIR/4 ,! POSITIVE EFFECT ( ! ,EUROPEAN & ,JAPANESE UPSW+ ON ,AM]ICAN CAPITAL EXPANSION WAS REFLECT$1 = EXAMPLE1 9 ! SPREAD ( MULT9ATIONAL CORPORATIONS1 ) !IR HI<] LEVEL ( PR(ITABILITY4 ,BUT EV]Y D[NTURN ALSO 9T]NATIONALIZES1 IRRESPECTIVE ( ITS PO9T ( ORIG94 ,9 ALL ! CAPITALI/ C\NTRIES 7& NOT ONLY 9 ! ,UNIT$ ,/ATES71 PR(ITS OV] ! LA/ FIVE YE>S HAVE BE5 L[] ?AN AT ANY O!R TIME 9 ! PO/W> P]IOD1 ) SY/EMATIC PRICE RISES BE+ ! MEANS RESORT$ TO 9 ATTEMPTS TO PROP !M UP OR BOO/ !M ,ONCE ?IS PROCESS HAS BE5 SET 9 MOTION & FUR!R SUPPORT$ BY GOV]NM5T MONEY & CR$IT POLICIES1 PRICES SO> CUMULATIVELY UPW>D1 AFFECT+ ALL CAPITAL 5TITIES ALIKE ,! RESULT IS NOT ONLY RIS+ PRICES ON F9I%$ PRODUCTS BUT ALSO A CONT9U+ REVALUATION ( CAPITAL1 ! COV]+ ( HI<] PRODUCTION CO/S 9 ADVANCE BY MEANS ( CAPITAL DEPRECIATIONS1 ! APPLICATION ( DIFF]5T 9FLATION RATES 9 CALCULATIONS TO SECURE PR(ITS1 & OV]PRIC+ TO R$UCE ! 9CREAS$ RISK TO BUS9ESS BR\Y ADJU/ TO ?IS R$UC$ DEM& BY RIS+ FUR!R4 ,! NE$ = EXP&+ PR(ITS IS SO GREAT ?AT ! SUPPLY MAY BE R$UC$ BY CONTRIV$ MEANS1 AS1 = EXAMPLE1 WAS REC5TLY DONE BY ! 9T]NATIONAL OIL 9DU/RY1 :I* WAS ABLE TO BOO/ ITS FALL+ PR(ITS BY HOLD+ BACK ON PRODUCTION4 ,JU/ AS EA* 9DIVIDUAL CAPITAL 5TITY )9 A C\NTRY SEEKS RU?LESSLY TO MA9TA9 & TO 5L>GE ITS %>E 9 ! CONTRACT+ SUM ( SOCIAL SURPLUS VALUE BY PRIC+ MEASURES1 AT ! 9T]NATIONAL LEVEL ?IS PROCESS ASSUMES AN EV5 MORE BLATANT =M1 S9CE ! 9/RUM5TS ( POLITICAL P[] CAN ALSO BE US$ TO SUPPLEM5T 9T]NATIONAL COMPETITION4 ,?US AMONG ! FIR/ SIGNS ( A LOOM+ CRISIS IS %>P5$ 9T]NATIONAL COMPETITION1 9 :I* EA* C\NTRY SEEKS ) ALL ! MEANS AT ITS DISPOSAL TO SECURE OR 9CREASE ITS %>E 9 WORLD PR(ITS4 ,! COOL+ (F ( ! PO/W> BOOM & ! 9EFFECTIV5ESS1 N[ BECOM+ APP>5T1 ( ! MONET>Y & CR$IT POLICIES ?AT HAD BORNE IT ALONG HAVE BR\ 9 ,9DO*9A ON ! P>T ( CAPITAL WAS UND\BT$LY ! 5ORM\S PUBLIC CONSUMPTION1 TO :I* !RE SEEM$ TO BE NO LIMITS &1 MOREOV]1 NO PROSPECTS ( BE+ (FSET BY REAL PR(ITS 9 ! FUTURE4 ,TO SOME CAPITALI/S1 AT LEA/1 ! GR[+ PUBLIC SP5D+ APPE>$ TO HAM/R+ ECONOMIC EXPANSION & R$UCE !IR ABILITY TO COMPETE 9T]NATIONALLY4 ,! 5D ( ! W> REQUIR$ AT LEA/ A %ORT-T]M ACCORD ) ! RIVAL P[]S 9 ,S\!A/ ,ASIA4 ,! IMP]IALI/ CONTRADICTIONS BETWE5 ,RUSSIA & ,*9A1 :I* ALSO BORE ON ,ASIA1 PROVID$ ! *ANCE = ,AM]ICA TO )DRAW ON ! BASIS ( ! /ATUS QUO1 & ! IMP]IALI/ SOLUTION TO ,ASIAN P[] POLITICS WAS PUT (F UNTIL SOME FUTURE TIME4 ,IT WAS HOP$ ?AT ! PACIFICATION ( ! WORLD SITUATION W\LD RELIEVE AT LEA/ SOME ( ! MORE ?REAT5+ SIGNS ( CRISIS BY 5ABL+ ECONOMIC RELATIONS TO EXP& - A VIEW ?AT ! =M] ADV]S>IES 9 ! COLD W> %>$1 DESPITE !IR O!R DIFF]5CES4 ,9 M>KET !ORY ! REMOVAL ( POLITICAL RE/RICTIONS ON WORLD TRADE %\LD BR+ AT LEA/ A P>TIAL IMPROVEM5T 9 ! ECONOMIC SITUATION & MOREOV]1 AV]T A CATA/ROPHIC CRA% ?AT C\LD EASILY PLUNGE A POLITICALLY EXPLOSIVE WORLD 9TO A ?IRD WORLD W>4 ,BUT A CRISIS ?AT HAS ITS ORIG9S 9 PRODUCTION CANNOT BE PREV5T$ BY MEASURES CONF9$ TO ! LEVEL ( TRADE & COMM]CE4 ,9DE$1 TRADE ITSELF BECOMES AN AGGRAVAT+ FACTOR 9 ! CRISIS :5 EA* NATION IS OBLIG$ TO T5D TO ITS [N SPECIAL 9T]E/S 9 OPPOSITION TO ?OSE ( O!R C\NTRIES4 ,SO IT HAPP5S ?AT ! REMOVAL ( TRADE RE/RICTIONS ( ONE K9D IS ATT5D$ BY ! CREATION ( RE/RICTIONS ( ANO!R K9D1 E4G41 T>IFF POLICIES1 IMPORT PROHIBITIONS1 ! BREAK+ ( REGIONAL & 9T]NATIONAL AGREEM5TS1 & A GR[+ *AOS 9 ALL ECONOMIC RELATIONS4 ,! 9T]NATIONALIZATION ( ECONOMICS :I* ! BOOM HAD PROMOT$ IS =C$ TO REV]SE ITS C\RSE1 & ONCE AGA9 PRIORITY IS GIV5 TO NATIONAL 9T]E/S1 AS ! WORLD ECONOMY S9KS 9TO FUR!R DIS>RAY4 ,ALL ! SIGNS ( A DEEP5+ CRISIS >E CURR5TLY AT H&1 BUT H[ F> !Y WILL DEVELOP CANNOT BE =ETOLD4 ,!Y C\LD CONCEIVABLY ASSUME ! CATA/ROPHIC PROPORTIONS ( ! LA/ GREAT CRISIS2 BUT IT IS MORE LIKELY ?AT ! ECONOMY WILL GO 9TO A SL[ PROCESS ( DECL9E1 S9CE ! /ATE HAS NOT EXHAU/$ ALL ITS MEANS ( 9FLU5C+ IT4 ,IF /ATE MEASURES >E NOT SUFFICI5T TO 9DUCE A NEW UPSW+1 !Y >E AT ANY RATE /ILL CAPABLE ( PREV5T+ A P]IOD ( PRECIPIT\S DECL9E AT ! CO/ ( ! FUTURE ( CAPITALISM4 ,!RE >E LIMITS1 H[EV]1 TO H[ F> ?IS POLICY CAN GO1 & ! SCOPE ( ! CRISIS DET]M9ES :]E EXACTLY !SE LIMITS LIE4 ,NOTES #a4 ,?R\< ! ,I/ITUTO P] LA ,RICO/RUZIONE ,9DU/RIALE 7,I,R,I7 ! ,ITALIAN GOV]NM5T [NS NUM]\S F9ANCIAL & 9DU/RIAL 5T]PRISES1 9CLUD+ ,ALFA ,ROMEO1 ,ALITALIA1 /EEL WORKS1 OIL1 TELEPHONE & TELEGRAPH1 RADIO1 TELEVISION1 & BANKS4 ,I,R,I 5T]PRISES DO NOT DIFF] ESS5TIALLY FROM PRIVATE 5T]PRISES4 ,!Y P>TAKE ( ! G5]AL CAPITAL M>KET4 ,%>ES CAN BE B\ ,I4 ,HE PO9T$ \T ?AT PUBLIC WORKS NOT ONLY 9CREASE EMPLOYM5T BUT ?AT ?IS 9CREASE1 BY CREAT+ ADDITIONAL BUY+ P[]1 LEADS TO ADDITIONAL EMPLOYM5T 70,A ,NATIONAL ,POLICY2 ,PUBLIC ,WORKS TO ,/ABILIZE ,EMPLOYM5T10 9 ,! ,ANNALS ( ! ,AM]ICAN ,ACADEMY ( ,POLITICAL & ,SOCIAL ,SCI5CE1 ,JANU>Y #a#i#a#i74 ,LIKEWISE ,DAVID ,FRIDAY1 0,MA9TA9+ ,PRODUCTIVE ,\TPUT3 A ,PROBLEM ( ,RECON/RUCTION10 9 ,J\RNAL ( ,POLITICAL ,ECONOMY1 ,JANU>Y #a#i#a#i4#a4 ,M4 ,CL>K 9VE/IGAT$ ! ROLE ( ! MULTIPLI] & PUBLI%$ HIS RESULTS 9 ,ECONOMICS ( ,PLANN+ PUBLIC ,WORKS1 #a#i#c#e4 #aigd ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #c1 #bba 3 ,*APT] #a -- ,ADD$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/