,*APT] #h 
,! ,REALISATION ( ,SURPLUS-,VALUE 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,ACCORD+ TO ,M>X1 0! CONTRADICTIONS 9H]5T 9 ! MOVEM5TS ( 
CAPITALI/ SOCIETY IMPRESS !MSELVES UPON ! PRACTICAL B\RGEOIS MO/ 
/RIK+LY 9 ! *ANGES ( ! P]IODIC CYCLE ?R\< :I* MOD]N 9DU/RY 
RUNS1 & :OSE CR[N+ PO9T IS ! UNIV]SAL CRISIS40.<#a.> ,?R\<\T ! 
N9ETE5? C5TURY1 CRISIS FOLL[$ CRISIS 9 9T]VALS ( R\<LY T5 YE>S4 
,! P]IODICITY ( CRISES1 ACCORD+ TO ,M>X1 /EM SIMPLY FROM 
CAPITALISM'S ABILITY TO OV]COME ! OV]PRODUCTION ( CAPITAL ?R\< 
*ANGES 9 CONDITIONS ( PRODUCTION :I* 9CREASE ! MASS ( SURPLUS-VALUE 
RELATIVE TO ! EXI/+ CAPITAL4 ,! DEF9ITE CRISIS-CYCLE ( ! 
LA/ C5TURY IS1 H[EV]1 AN EMPIRICAL FACT NOT DIRECTLY RELAT$ TO ,M>XIAN 
!ORY4 ,IT IS TRUE ?AT ,M>X TRI$ TO CONNECT ! DEF9ITE P]IODICITY ( ! 
CRISES ) ! TURN OV] ( CAPITAL4 ,BUT HE DID NOT 9SI/ ON ! VALIDITY ( 
?IS EXPLANATION4 ,9 MY CASE1 HIS !ORY DOES NOT DEP5D ON ANY P>TICUL> 
P]IODICITY ( CRISES4 ,IT ONLY MA9TA9S ?AT CRISES >E B\ND TO >ISE AS AN 
EXPRESSION ( A TEMPOR>Y OV]PRODUCTION ( CAPITAL & AS ! M$IUM = ! 
RESUMPTION ( ! ACCUMULATION PROCESS4 

,9 ,M>X'S AB/RACT VALUE-S*EME1 AN ABSOLUTE OV]PRODUCTION OR 
OV]-ACCUMULATION ( CAPITAL SETS 9 AS SOON AS A FUR!R 5L>GEM5T ( ! 
TOTAL CAPITAL W\LD YIELD A MASS ( SURPLUS-VALUE SMALL] ?AN ?AT PREVI\SLY 
REALIZ$4 ,AL?\< ! CONDITIONS :I* ! VALUE-S*EME ( DEVELOPM5T ASSUMES 
DO NOT EXI/ 9 ! REAL WORLD ( CAPITAL PRODUCTION1 IT IS NEV]!LESS CLE> 
?AT 9DIVIDUAL CAPITALS1 & CAPITALISM AS A :OLE1 EXI/ 9 SITUATIONS :I* 
SET LIMITS TO !IR GR[?4 ,IF !SE LIMITS >E TRANSC5D$1 CRISIS SETS 92 
?IS LEADS TO ACTIVITIES ?AT REMOVE !SE BORD]S BY REORGANIZ+ ! TOTAL 
CAPITAL /RUCTURE4 ,YET ?IS REORGANIZATION SETS UP CONDITIONS :I* CONTA9 
SPECIFIC LIMITS ( !IR [N4 

,AT ANY GIV5 TIME ! ACTUAL BORD]S ( CAPITAL EXPANSION >E DET]M9$ BY 
G5]AL SOCIAL CONDITIONS1 :I* 9CLUDE ! LEVEL ( TE*NOLOGY1 ! SIZE ( 
! ALREADY ACCUMULAT$ CAPITAL1 ! AVAILABILITY ( WAGE-LABOR1 ! POSSIBLE 
DEGREE ( EXPLOITATION1 ! EXT5T ( ! M>KET1 POLITICAL RELATIONS1 
RECOGNIZ$ NATURAL RES\RCES1 & SO =?4 ,IT IS NOT ! M>KET ALONE BUT ! 
:OLE SOCIAL SITUATION 9 ALL ITS RAMIFICATIONS :I* ALL[S =1 OR SET LIMITS 
TO1 ! ACCUMULATION ( CAPITAL4 ,BECAUSE IT IS NOT POSSIBLE TO CALCULATE :5 
! EXPANSION ( ONE OR ALL CAPITALS REA*ES ITS LIMITS 9 ACTUAL SOCIAL 
CONDITIONS1 LIMIT+ CONDITIONS HAVE TO BE ASSUM$ 9 ORD] TO REVEAL ! 
MEAN+ ( ! PROCESS H]E 9VOLV$4 

,! CAPITALI/ ECONOMY IS AN 5TITY ( PRODUCTION & EX*ANGE4 ,! GREAT 
BULK ( ! COMMODITIES PRODUC$ MU/ BE SOLD2 = IF COMMODITIES CANNOT BE 
SOLD1 ! CAPITAL & SURPLUS-VALUE !Y CONTA9 CANNOT BE REALIZ$1 & ! 
9CREAS$ EXPLOITATION ?AT PRODUC$ !M MAY NOT BE ABLE TO PREV5T R$UC$ 
PR(ITS4 ,! DISCREPANCY BETWE5 ! CREATION ( SURPLUS-VALUE & ITS 
REALIZATION APPE>S AS A GLUT ON ! M>KET1 AS AN OV]-PRODUCTION ( 
COMMODITIES4 ,SE5 FROM ! ANGLE ( PRODUCTIVE DEVELOPM5T RA!R ?AN FROM 
?AT ( ITS RESULTS1 ! OV]-PRODUCTION ( COMMODITIES IS AN OV]-PRODUCTION 
( CAPITAL4 ,= ,M>X1 ! OV]-PRODUCTION ( CAPITAL ALWAYS IMPLIES ! 
OV]-PRODUCTION ( COMMODITIES1 BUT ! DI/9CTION BETWE5 !M IS /ILL 
IMPORTANT4 ,= ! OV]-PRODUCTION ( CAPITAL & COMMODITIES1 9/EAD ( 
LEAD+ TO A CURTAILM5T ( PRODUCTIVITY1 ONLY ACCEL]ATES ! LATT]1 !REBY 
9DICAT+ ?AT ! DISCREPANCY BETWE5 ! PRODUCTION ( SURPLUS-VALUE & ITS 
REALIZATION >ISES BECAUSE ( A DECL9E 9 ! RATE ( ACCUMULATION4 ,) A 
SUFFICI5T RATE ( CAPITAL EXPANSION !RE W\LD BE NO OV] PRODUCTION1 & AS 
SOON AS ! ACCUMULATION PROCESS IS RESUM$1 ! M>KET BECOMES ONCE MORE :AT 
IS CONSID]$ 0NORMAL10 DESPITE ! EV5 L>G] QUANTITY ( 
COMMODITIES N[ (F]$ = SALE4 ,:AT IS 9VOLV$ H]E1 !N1 IS NOT AN 
OV]-PRODUCTION ( COMMODITIES 9 RELATION EI!R TO ! ABSOLUTE CONSUM+ 
P[] ( SOCIETY OR TO ! RELATIVE CONSUM+ P[] ( CAPITALISM1 BUT AN 
OV]-PRODUCTION ( COMMODITIES 9 RELATION TO ! CAPITALI/ICALLY-LIMIT$ 
DEM& UND] ! P>TICUL> CONDITIONS ( RELATIVE CAPITAL /AG NATION4 

,OV]-PRODUCTION ( CAPITAL IS ALWAYS ! 05D-PO9T0 ( A P]IOD 
( SUCCESSFUL CAPITAL =MATION :]E9 ! EXT5SION ( PRODUCTION P>ALLELS 
! EXPANSION ( ! EXI/+ CAPITAL4 ,TO PREV5T ?IS PO9T FROM >RIV+1 ! 
CONDITIONS ( PRODUCTION MU/ BE ALT]$4 ,!SE *ANGE1 ( C\RSE1 9 ! V]Y 
PROCESS ( ACCUMULATION4 ,!RE IS1 H[EV]1 NO REASON TO ASSUME ?AT ! 
CONDITIONS ( PRODUCTION WILL ALWAYS *ANGE SO AS TO ACCOMMODATE ! NE$ = 
CAPITAL EXPANSION1 ! LESS SO BECAUSE ! =M] >E ! G5]AL SOCIAL 
CONDITIONS ( PRODUCTION & ! LATT] A P>TICUL> NE$ B\ND ONLY TO ! 
EXPLOITATIVE CAPITAL-LABOR RELATION%IP4 ,& ?\< IT IS TRUE ?AT SOCIAL 
DEM&1 BY AFFECT+ ! DI/RIBUTION ( SOCIAL SURPLUS-VALUE VIA ! 
COMPETITIVE E/ABLI%M5T ( AN AV]AGE RATE ( PR(IT1 SETS OR REMOVES LIMITS 
TO P>TICUL> CAPITALS1 ?IS SOCIAL DEM& DOES NOT REPRES5T ! REALITIES ( 
SOCIAL CONDITIONS BUT IS ITSELF L>GELY DET]M9$ BY ! PRODUCTION ( 
CAPITAL4 

,AT ANY RATE1 A CRISIS IS AN 9T]RUPTION ( ! ACCUMULATION PROCESS4 
,:ATEV] SPECIFIC CRISIS !ORIES HAVE BE5 BR\<T =? S9CE ,M>X1 !SE 
?+S >E G5]ALLY ACKN[L$G$ - ?AT A RATE ( EXPANSION SUFFICI5T 
TO =E/ALL /AGNATION & DECL9E DEP5DS ON ! PR(ITABILITY ( CAPITAL2 
?AT IT BECOMES 9CREAS+LY MORE DIFFICULT TO MA9TA9 SU* A PR(ITABILITY 9 
VIEW ( ! SIZE ( CAPITAL ALREADY REA*$2 ?AT ECONOMIC /AGNATION CAN BE 
5D$ ONLY BY AN IMPROVEM5T 9 PR(ITABILITY4 ,!SE CON/ITUTE ! CONT5T ( 
ALL BUS9ESS-CYCLE !ORY4 

,ALL CRISES HAVE BE5 PREC$$ BY A SPECULATIVELY-5HANC$ EXPANSION ( 
PRODUCTION & CR$IT4 ,?IS DOES NOT MEAN1 H[EV]1 ?AT OV]PRODUCTION RESULTS 
FROM SPECULATION & ! EXT5SION ( CR$IT2 = 0! EXT5SION ( ! 
CR$IT SY/EM IS ONLY ! =M :I* HIDES ! OV]PRODUCTION ( 
CAPITAL40.<#b.> 
,OV]PRODUCTION IS ALREADY 9H]5T 9 COMPETITIVE CAPITAL ACCUMULATION BECAUSE 
( ! TW(OLD *>ACT] ( VALUE PRODUCTION & ! S+LE-M9D$ DRIVE = 
EX*ANGE-VALUE4 0,! EXPANSION & CONTRACTION ( CR$IT IS A M]E 
SYMPTOM ( ! P]IODIC *ANGES ( ! 9DU/RIAL CYCLE40.<#c.> ,! DECL9E ( 
PR(ITABILITY CONTRACTS ! CR$IT /RUCTURE JU/ AS ! 9CREASE ( 
PR(ITABILITY 5L>GES IT4 ,SIMIL>LY1 :ILE IT IS TRUE ?AT COMPETITION 
5HANCES CAPITAL EXPANSION REG>DLESS ( ! PR(ITABILITY ( TOTAL CAPITAL1 
?IS IS SO ONLY BECAUSE ! T5D5CY = ! RATE ( PR(IT TO FALL EXI/S 9 
! PRODUCTION PROCESS1 9DEP5D5T ( ! COMPETITIVE ME*ANISM4 

,ASIDE FROM W9DFALLS ( COLONIAL ROBB]Y1 E>LY CAPITAL =MATION PROCE$$ 
AT A RELATIVELY EV5 PACE BECAUSE ( ! /ILL PLACID C\RSE ( TE*NOLOGICAL 
DEVELOPM5T & BECAUSE ( SOCIAL B>RI]S TO ! CREATION ( A VA/ 9DU/RIAL 
PROLET>IAT4 ,! NON-CAPITALI/ ASPECTS ( ! ECONOMY W]E /ILL /RONG 5\< 
TO GIVE ! TOTAL SOCIAL PROCESS ( DEVELOPM5T ! G5]AL APPE>ANCE ( 
PRODUCTION = CONSUMPTION4 ,! SAME BACKW>DNESS ACC\NTS1 ( C\RSE1 = ! 
HORRORS ( E>LY CAPITALISM & ! EXTRAORD9>Y GRE$ = SURPLUS-VALUE ?AT 
F\ND ITS EXPRESSION 9 ! PAUP]IZATION ( ! WORK+ POPULATION4 ,IT ALSO 
EXPLA9S ! CLASSICAL ECONOMI/S' PESSIMISM AB\T ! CAPITALI/ FUTURE1 
& !IR [N1 9ADEQUATE1 CONC]N ) ! PROBLEM ( ! FALL+ RATE ( 
PR(IT4.<#d.> ,ONLY ) 
! RISE ( MOD]N 9DU/RY1 ! OP5+ ( ! WORLD M>KET & ! 
PREPOND]ANCE ( CAPITAL-LABOR RELATIONS 9 PRODUCTION1 DID CAPITAL EXPANSION 
ITSELF BECOME ! MAJOR DET]M9+ FACTOR ( SOCIAL DEVELOPM5T4 ,UNTIL !N1 
HUMAN PHYSICAL NECESSITIES UND] LESS COMPLEX SOCIAL CONDITIONS GAVE ! E>LY 
CAPITALI/ DEVELOPM5T AN ELEM5T ( 0ORD]0 NOT ITS [N4 

,AL?\< PR$ET]M9$ BY ! DIVISION ( LABOR 9TO NECESS>Y LABOR & 
SURPLUS LABOR1 SOCIAL DEM& 9 E>LY CAPITALISM WAS 9 L>GE MEASURE A DEM& 
= ! MEANS ( CONSUMPTION4 ,H5CE ! IDEA ?AT ! M>KET EQUILIBRIUM ( 
SUPPLY & DEM& IS DET]M9$ BY ! SOCIAL REQUIREM5TS ( PRODUCTION = 
CONSUMPTION4 ,AS CAPITALISM BECAME ! DOM9ANT MODE ( PRODUCTION & ! TEMPO 
( ACCUMULATION 9CREAS$1 0SOCIAL DEM&0 BECAME 9 ALWAYS GREAT] 
MEASURE A DEM& = CAPITAL4 ,SUPPLY & DEM& 9 ! TRADITIONAL S5SE CEAS$ 
TO DET]M9E ! PRODUCTION PROCESS2 ! PRODUCTION ( CAPITAL1 AS 
CAPITAL1 DET]M9$ ! SIZE & NATURE ( ! M>KET DEM&4 

,COMMODITY PRODUCTION CREATES ITS [N M>KET 9 SO F> AS IT IS ABLE TO 
CONV]T SURPLUS-VALUE 9TO NEW CAPITAL4 ,! M>KET DEM& IS A DEM& = 
CONSUMPTION GOODS & CAPITAL GOODS4 ,ACCUMULATION CAN ONLY BE ! ACCUMULATION 
( CAPITAL GOODS1 = :AT IS CONSUM$ IS NOT ACCUMULAT$ BUT SIMPLY GONE4 ,IT 
IS ! GR[? ( CAPITAL 9 ITS PHYSICAL =M :I* ALL[S = ! REALIZATION 
( SURPLUS-VALUE \TSIDE ! CAPITAL-LABOR EX*ANGE RELATIONS4 ,SO LONG AS !RE 
EXI/S AN ADEQUATE & CONT9U\S DEM& = CAPITAL GOODS1 !RE IS NO REASON 
:Y COMMODITIES 5T]+ ! M>KET %\LD NOT BE SOLD4 

,ACCORD+ TO ,M>X1 A M>KET 0EQUILIBRIUM0 9 T]MS ( PRICES 
IMPLIES AN 0EQUILIBRIUM0 9 T]MS ( VALUES & PRESUPPOSES ! 
FULL REALIZATION ( SURPLUS-VALUE4 ,= A GIV5 TIME P]IOD1 TOTAL SOCIAL LABOR 
IS ACC\NT$ = ONLY :5 ! UNCONSUMABLE P>T ( SURPLUS-VALUE IS CONV]T$ 
FROM COMMODITIES 9TO FRE% CAPITAL4 ,ONLY !N IS ! CIRCULATION PROCESS 9 
0H>MONY0 ) ! PRODUCTION PROCESS4 ,)\T ?IS ACCUMULATION1 
PRICES WILL FALL NOT ONLY BECAUSE ( ! 9CREAS$ PRODUCTIVITY ( LABOR BUT 
ALSO BECAUSE ! SUPPLY ( COMMODITIES WILL EXCE$ ! DEM&4 ,ON ! O!R 
H&1 IF ! DEM& = CAPITAL EXCE$S ! SUPPLY1 PRICES WILL RISE DESPITE 
! 9CREAS+ PRODUCTIVITY ( LABOR4 ,PRICES RISE OR FALL ) V>IATIONS 9 
! PRODUCTIVITY ( LABOR & 9 SUPPLY & DEM&4 ,!SE LATT] 
V>IATIONS1 H[EV]1 DEP5D ON ! RATE ( CAPITAL EXPANSION2 & ?IS RATE 
DEP5DS 9 TURN ON ! PRODUCTIVITY 7PR(ITABILITY7 ( LABOR RELATIVE TO ! 
EXI/+ MASS ( CAPITAL4 ,9 O!R WORDS1 PRICE *ANGES DUE TO SUPPLY & 
DEM& RELATIONS D]IVE FROM ! VALUE & SURPLUS-VALUE RELATIONS :I* 
DET]M9E ! RATE ( ACCUMULATION4 

,:ATEV] ! PRICE MOVEM5TS ?AT ACCOMPANY ! ACCUMULATION PROCESS & 
:ATEV] !IR P>TICUL> FLUCTUATIONS 9 TIMES ( CRISIS1 AT NO TIME DO !Y 
T5D T[>D AN EQUATION ( SUPPLY & DEM& :I* GE>S SOCIAL PRODUCTION TO 
SOCIAL CONSUMPTION4 ,PRICE *ANGES ALWAYS RELATE !MSELVES TO ! EXPANSION OR 
CONTRACTION ( CAPITAL ACCUMULATION4 ,A L[ RATE ( CAPITAL EXPANSION WILL 
APPE> AS AN EXCESSIVE M>KET SUPPLY ( COMMODITIES & DEPRESS PRICES4 ,A HI< 
RATE ( ACCUMULATION WILL REV]SE ! M>KET SITUATION & RAISE COMMODITY 
PRICES4 

,!RE CAN BE SURPLUS-LABOR PRODUCTION )\T CAPITAL ACCUMULATION4 ,9 ?AT 
CASE1 0SURPLUS-VALUE0 W\LD COMPRISE NO MORE ?AN ! CONSUMPTION 
FUND ( ! NON-WORK+ POPULATION4 ,BUT CAPITAL PRODUCTION EXCLUDES ?IS /ATE 
( SIMPLE REPRODUCTION4 ,CO]C$ BY COMPETITION1 ! 9DIVIDUAL CAPITALI/S MU/ 
ACCUMULATE1 IF ONLY TO PRES]VE ! CAPITAL ALREADY !IR [N4 ,CAPITAL IS US$ 
UP 9 ! PRODUCTION PROCESS AS A CO/-(-PRODUCTION ITEM1 & IS RECOV]$ 9 
! CIRCULATION PROCESS AS P>T ( ! PRICE ( COMMODITIES4 ,G5]ALLY1 ANY 
P>TICUL> CAPITAL :I* DOES NOT 9CREASE ITS PRODUCTIVITY BY EXP&+ WILL 
DISAPPE>1 = CAPITAL CAN ONLY REALIZE ITS SURPLUS-VALUE ON ! M>KET1 & 
! M>KET AV]AGES PRICES ACCORD+ TO ! *ANG+ PRODUCTIVITY ( LABOR4 

,AN 5TREPR5EUR MAY 9VE/ 9 NEW & MORE PRODUCTIVE CAPITAL EQUIPM5T EV5 
:5 HIS PR(IT ON CURR5T PRODUCTION MAKES ?IS A QUE/IONABLE UND]TAK+1 
BECAUSE ! ADDITIONAL 9VE/M5T MAY PROMISE A GREAT] COMPETITIVE ABILITY & 
5ABLE HIM TO 5L>GE HIS M>KET AT ! EXP5SE ( O!R CAPITALI/S4 ,ALL 
ADDITIONAL 9VE/M5TS >E SO MANY ATTEMPTS TO P>TAKE ( AN EXPECT$ L>G] 
M>KET DEM&1 OR TO GET A L>G] %>E ( AN EXI/+ /ABLE1 OR EV5 
DECL9+1 DEM& AT ! EXP5SE ( O!R 5T]PRIS]S4 

,A L>G] M>KET PRESUPPOSES A L>G] PRODUCTION1 EV5 ?\< A L>G] 
PRODUCTION MAY NOT F9D AN ADEQUATE M>KET DEM&4 ,9 ! ATTEMPT TO SAFEGU>D 
CAPITAL BY AUGM5T+ IT1 ! CAPITALI/S ACCEL]ATE ! ACCUMULATION PROCESS4 
,!RE IS NO C]TA9TY ?AT ! EXPANSION ( PRODUCTION WILL EXT5D ! M>KET 
9 EQUAL MEASURE4 ,H[EV]1 ?IS V]Y ACCEL]ATION IS ITSELF A M>KET EXT5SION 
9 ?AT IT 9CREASES ! DEM& = ! MEANS ( PRODUCTION4 ,IF1 9 
CONSEQU5CE1 ! M>KET DEM& 9CREASES G5]ALLY & AFFECTS ALL SPH]ES & 
BRAN*ES ( PRODUCTION1 A P]IOD ( 0PROSP]ITY0 5SUES & WILL 
APPE> AS AN 0EQUILIBRIUM0 ( SUPPLY & DEM&4 ,ON ! ASSUMPTION 
?AT CAPITAL ACCUMULATION HAS ?IS EFFECT1 ! ONLY POSSIBLE REASON :Y IT 
%\LD SUDD5LY BE HALT$ IS A LACK ( SURPLUS-VALUE2 & ?IS LACK MU/ HAVE 
>IS5 )9 & DESPITE ! ACCUMULATION PROCESS4 

,9 REALITY1 ( C\RSE1 IT SEEMS TO BE ! O!R WAY >\ND2 IT APPE>S ?AT 
! SURPLUS-VALUE IS UNREALIZABLE DUE TO AN ABUNDANCE ( USE-VALUES 
7COMMODITIES74 ,& TO ! 9DIVIDUAL CAPITALI/ IT IS 9DE$ LACK ( DEM& 
:I* H9D]S ! SALE ( HIS COMMODITIES & :I* 9DUCES HIM NOT TO 9CREASE 
PRODUCTION BY ADDITIONAL 9VE/M5TS4 ,BUT ?IS APP>5T DEP5D5CY ( 
ACCUMULATION ON M>KET DEM& M]ELY REVEALS ! 9DIVIDUAL CAPITALI/S' 
REACTIONS TO ! SOCIAL DE>? ( SURPLUS-VALUE1 OR SURPLUS-LABOR1 I4E4 TO ! 
9SUFFICI5CY ( ! LABOR]S' USE-VALUE 7!IR WORK+ 
CAPACITY7 ?AT FALLS TO ! CAPITALI/S 9 EX*ANGE = ! LABOR]S' 
EX*ANGE-VALUE 7WAGES71 OR1 :AT IS ! SAME1 TO ! DECREASE ( ! 
EXPLOITABILITY ( LABOR 9 COMP>ISON ) ! PR(IT REQUIREM5TS ( A 
PROGRESSIVE CAPITAL ACCUMULATION4 

,HIDD5 9 ! SPH]E ( PRODUCTION1 ?IS SITUATION IS NOT CONTRADICT$ BY A 
GLUT 9 ! COMMODITY M>KET4 ,IT MU/ ALWAYS BE KEPT 9 M9D ?AT CAPITALI/ 
PRODUCTION IS = PR(IT & CAPITAL4 ,! PRODUCTION ( COMMODITIES AS CONCRETE 
USE-VALUES IS M]ELY ! M$IUM = ! PRODUCTION ( CAPITAL AS AB/RACT 
EX*ANGE-VALUE4 ,IT MU/ ALSO BE REMEMB]$ ?AT1 ) RESPECT TO PR(ITABILITY1 
! DECL9E ( ! EX*ANGE-VALUE ELEM5T ( COMMODITY PRODUCTION IS IMMUNIZ$ 
BY ! 9CREAS+ PRODUCTIVITY ( USE-VALUE PRODUCTION4 ,LIKEWISE1 ! DECL9E 
9 PR(ITABILITY ?AT A DEF9ITE AM\NT ( CAPITAL EXP]I5CES F9DS ITS 
COMP5SATION 9 ! GR[? ( ! TOTAL CAPITAL4 ,9 ?IS MANN]1 AN 9CREASE 9 
! QUANTITY ( UNPAID LABOR - EXPRESS$ AS A GREAT] MASS ( COMMODITIES 
- SETS ASIDE ! T5D5TIAL FALL ( ! RATE ( PR(IT4 ,?US1 ! ACTUAL 
GLUT ON ! COMMODITY M>KET MU/ BE CAUS$ BY ! FACT ?AT LABOR IS NOT 
PRODUCTIVE 5\< TO SATISFY ! PR(IT NE$S ( CAPITAL ACCUMULATION4 ,BECAUSE 
NOT 5\< HAS BE5 PRODUC$1 CAPITAL CANNOT EXP& AT A RATE :I* 
W\LD ALL[ = ! FULL REALIZATION ( :AT HAS BE5 PRODUC$4 ,! 
RELATIVE SC>CITY ( SURPLUS-LABOR 9 ! PRODUCTION PROCESS APPE>S AS AN 
ABSOLUTE ABUNDANCE ( COMMODITIES 9 ! CIRCULATION PROCESS & AS ! 
OV]PRODUCTION ( CAPITAL4 ,?IS IS MADE EVID5T BY ! FACT ?AT P]IODS ( 
OV]PRODUCTION >E ALWAYS T]M9AT$ BY AN 9CREASE1 NOT A DECREASE1 9 
PRODUCTION & 9 ! MEANS ( PRODUCTION MADE POSSIBLE BY IMPROV+ ! 
CONDITIONS ( EXPLOITATION4 

,AL?\< ! EXPANSION ( CAPITAL DEP5DS ON ! REALIZATION ( 
SURPLUS-VALUE 9 CIRCULATION & SPORADICALLY COMES TO A HALT ?R\< M>KET 
LIMITATIONS1 CAPITAL ACCUMULATION IS NOT A REALIZATION PROBLEM4 ,IT IS ?AT TOO1 
( C\RSE1 BUT ! REALIZATION PROBLEM D]IVES FROM ! FACT ?AT CAPITAL 
PRODUCTION IS A VALUE-EXPANSION PROCESS4 ,EV5 ASSUM+ ! NONEXI/5CE ( ! 
REALIZATION PROBLEM1 ,M>X SAW ! ACCUMULATION PROCESS AS HI/ORICALLY LIMIT$ 
BECAUSE IT DE/ROY$ IT [N S\RCE ( EXI/5CE & SECRET ( DEVELOPM5T 
?R\< ! FALL ( ! RATE ( PR(IT 9 ! C\RSE ( ! RIS+ ORGANIC 
COMPOSITION ( CAPITAL4 

,?IS PROCESS1 TO BE SURE1 CAN ALSO BE DESCRIB$ 9 ! LESS AB/RACT =M ( 
SURPLUS-VALUE REALIZATION4 ,! RESULTS W\LD BE ! SAME H[EV]4 ,! SPH]E ( 
CIRCULATION GR[S ) ! GR[? ( CAPITAL4 ,BUT ! CAPITAL EXPANSION PROCESS 
IS ALSO A CAPITAL CONC5TRATION & C5TRALIZATION PROCESS4 ,?IS HAMP]S ! 
SPATIAL EXT5SION ( CAPITAL PRODUCTION1 = CAPITALI/S BECOME 9CREAS+LY 
UNABLE & UNWILL+ TO CAPITALIZE WORLD PRODUCTION4 ,! 9CREAS+ DIFFICULTY 
( MA9TA9+ A RATE ( PR(IT SUFFICI5T = ! EXPANSION ( EXI/+ 
CAPITAL DIM9I%ES ! DESIRE TO EXT5D CAPITAL 9TO NON- OR UND]-DEVELOP$ 
REGIONS4 ,9/EAD !SE REGIONS >E L>GELY MA9TA9$ AS *EAP RAW MAT]IAL 
BASES 9 EX*ANGE = COMMODITIES PRODUC$ 9 CAPITALI/ICALLY-DEVELOP$ 
T]RITORIES4 

,ACCUMULATION DID IMPLY ! CON/ANT EXT5SION ( CAPITALI/ PRODUCTION 
?R\< ! TRANS=MATION ( MORE PRIMITIVE MODES ( PRODUCTION 9TO COMMODITY 
PRODUCTION4 ,?IS IS ONE WAY ( >RE/+ ! RISE ( ! ORGANIC COMPOSITION ( 
CAPITAL & ( /ABILIZ+ ! RATE ( PR(IT4 ,BUT ACCUMULATION ALSO BR+S 
C5TRALIZATION & CONC5TRATION :I* DEPRESS ! =MATION ( NEW CAPITAL1 
& ?US GRADUALLY DIM9I% ! 0B5EFICIAL0 EFFECTS NEW CAPITAL 
CAN HAVE ON ! AV]AGE RATE ( PR(IT4 ,ACCORD+ TO ,M>X1 0! CONCEPT 
( CAPITAL CONTA9S ! T5D5CY TO CREATE ! WORLD M>KET0 .<#d.> BUT CAPITALI/ 
DEVELOPM5T SIMULTANE\SLY H9D]S ! CAPITALI/ DEVELOPM5T ( WORLD 
PRODUCTION BY ITS IMMAN5T T5D5CY TO MONOPOLIZE ! CAPITAL ACCUMULATION 
PROCESS4 

,?IS IS NOT TO SAY ?AT CAPITALISM IS RESPONSIBLE = ! EXI/5CE ( 
UND]DEVELOP$ C\NTRIES4 ,BUT IT IS TO SAY ?AT A FULL 9DU/RIALIZATION ( 
WORLD PRODUCTION CANNOT BE ACCOMPLI%$ ?R\< ! ACCUMULATION ( PRIVATE 
CAPITAL4 ,! GR[? & MONOPOLIZATION ( PRIVATE WEAL? HAMP]S & DI/ORTS 
! =MATION ( SOCIAL WEAL?4 ,TO BE SURE1 !RE IS NO?+ 9 ! CAPITALI/ 
SY/EM :I* PREV5TS IT FROM SE>*+ = PR(ITS ALL OV] ! GLOBE1 & 
!RE IS NO PLACE CAPITAL WILL NOT 5T] IF IT IS PR(ITABLE TO DO SO4 ,YET ! 
CONC5TRATION ( WEAL? BAS$ ON PRIVATE-PROP]TY DIVIDES ! WORLD 9TO 
CAPITAL-RI* & CAPITAL-POOR REGIONS1 JU/ AS IT POL>IZES EA* P>TICUL> 
NATION 9TO CAPITALI/S & WAGE-WORK]S4 

,CAPITALISM F\ND IT MORE PR(ITABLE TO RE/RICT 9DU/RIAL DEVELOPM5T TO 
ITS [N P>T ( ! WORLD4 ,ONCE ?IS MONOPOLI/IC POSITION WAS REA*$ & 
CONSOLIDAT$1 IT C\LD NOT BE GIV5 UP )\T S]I\SLY DI/URB+ ! :OLE 
FABRIC ( ,WE/]N CAPITALISM4 ,TO PRES]VE ! NON-9DU/RIAL NATIONS AS M>KETS 
= !IR MANUFACTUR+ 9DU/RIES WAS !N ! COMM]CIAL POLICY ( ALL 
DEVELOP$ NATIONS1 & IT WAS POLITICALLY 5=C$ 9 C\NTRIES UND] !IR 
CONTROL4 ,NATURE ITSELF1 IT WAS ASS]T$1 DE/9$ SOME C\NTRIES TO BE 
PRODUC]S ( 9DU/RIAL COMMODITIES & O!RS TO BE PRODUC]S ( PRIM>Y 
PRODUCTS4 ,MORE ?AN A 0NATURAL FACT10 ?IS DIVISION WAS ALSO AN 
ECONOMIC CONV5I5CE1 AS ELUCIDAT$ BY ! !ORY ( COMP>ATIVE CO/S1 I4E4 
! NOTION ?AT IT WAS MORE 0ECONOMICAL0 TO PRODUCE PRIM>Y 
PRODUCTS 9 PRIM>Y-PRODUC+ C\NTRIES & MORE 0ECONOMICAL0 TO 
PRODUCE 9DU/RIAL COMMODITIES 9 9DU/RIAL NATIONS4 ,9 ?IS WAY1 SUPPOS$LY1 
EV]YONE GA9$ BY ! 09T]NATIONAL DIVISION ( LABOR10 ?AT IS1 
BY ! DIVISION ( ! WORLD 9TO 9DU/RIAL & NON-9DU/RIAL NATIONS4 
,ACTUALLY1 H[EV]1 ! EX*ANGE BETWE5 !SE C\NTRIES WAS ALWAYS ADVANTAGE\S 
TO ! DEVELOP$ ONES & DISADVANTAGE\S TO ! UND]DEVELOP$4 

,?IS IS ONE WAY 9 :I* CAPITAL CONCRETELY H9D]S ! UNFOLD+ ( ! 
=CES ( PRODUCTION4 ,BUT :ILE ?IS PROC$URE HA/5S ! EXPANSION ( ! 
MONOPOLIZ$ CAPITAL = SOME TIME1 IT LAT] BECOMES AN ADDITIONAL CAUSE ( 
CAPITAL'S /AGNATION4 ,& ?IS IS SO BECAUSE 9 RELATION TO ! RIS+ 
ACCUMULATION REQUIREM5TS ( ! EXI/+ CONC5TRAT$ CAPITALS LESS & LESS 
SURPLUS-VALUE CAN BE EXTRACT$ \T ( ! PRODUCTIVELY-/AGNAT+ UND] 
DEVELOP$ T]RITORIES4 ,= !IR [N P>T1 !SE T]RITORIES CANNOT CAPITALIZE 
PRODUCTION 9 COMPETITION ) ! ALREADY HI<LY-MONOPOLIZ$ CAPITALS2 & ! 
RISE ( NEW 9DEP5D5T CAPITALS IS POSSIBLE ONLY 9 RELATIVE ISOLATION FROM 
! CAPITALI/ WORLD M>KET4 

,DESIGN$ & BUILT UP ) A VIEW T[>DS EXP&+ WORLD M>KET1 ! 
PRODUCTIVE CAPACITY ( CAPITALI/ICALLY-ADVANC$ NATIONS EXCE$S ! SCOPE ( 
!IR NATIONAL M>KETS4 ,AS ?IS IS MORE OR LESS TRUE = ALL 9DU/RIAL 
C\NTRIES1 !IR COMB9$ PRODUCTION EXCE$S ! SCOPE ( ! WORLD M>KET1 
UNLESS A G5]AL RAPID CAPITAL =MATION EXP&S ! WORLD M>KET AS FA/ AS IT 
DOES PRODUCTION4 ,AL?\< ?IS IS SELDOM ! CASE1 IT IS NOT IMPOSSIBLE4 
,M>X'S MODEL ( CAPITAL ACCUMULATION ASSUMES ?AT ?IS IS POSSIBLE & 
!RE=E RE/RICTS ! T5D5TIAL FALL ( ! RATE ( PR(IT TO EV5TS 9 ! 
SPH]E ( PRODUCTION4 ,9 REALITY1 ( C\RSE1 ! WID5+ PRODUCTIVITY-GAP 
BETWE5 ! CAPITALI/ICALLY-DEVELOP$ & UND]DEVELOP$ REGIONS IMPAIRS ! 
REALIZATION ( SURPLUS-VALUE ?R\< ! LATT]'S 9CREAS+ 
IMPOV]I%M5T4 ,BY FO/]+ ONLY ! EXPLOITATION ( PRIM>Y GOODS PRODUCTION1 
BY TRANSF]R+ PR(ITS MADE 9 !SE >EAS TO ! 9DU/RIALLY-ADVANC$ 
NATIONS1 & BY IMPOS+ T]MS ( TRADE FAVOR+ ! DEVELOP$ CAPITALI/ 
C\NTRIES1 ! ADVANC$ NATIONS R$UCE ! UND]DEVELOP$ >EA'S ABILITY 
TO BUY MANUFACTUR$ GOODS4 ,! POOR] ! UND]DEVELOP$ NATIONS BECOME1 ! 
LESS A M>KET !Y (F] = ! PRODUCTS ( ! 9DU/RIALLY-ADVANC$ 
C\NTRIES1 & ! LESS ABLE !Y >E TO CAPITALIZE !MSELVES & ?US TO 
9CREASE ! G5]AL DEM&4 ,?IS LACK+ DEM& IS ACTUALLY A LACK ( 
SURPLUS-VALUE 9 T]RITORIES UNABLE TO BUY4 ,:AT APPE>S AS A REALIZATION 
PROBLEM 9 ADVANC$ CAPITALI/ SY/EMS IS A PRODUCTION PROBLEM 9 LESS 
DEVELOP$ NATIONS4 ,! TOTAL EFFECT1 H[EV]1 IS A %ORTAGE ( SURPLUS-VALUE1 
:I* H9D]S ! ADVANCE ( ! G5]AL ACCUMULATION PROCESS4 

,:E!R ONE LOOKS AT ! PRODUCTION ( SURPLUS-VALUE1 OR ITS REALIZATION1 
:5 SE5 FROM ! POSITION ( TOTAL CAPITAL1 ! REAL PROBLEM ( CAPITALISM IS 
A %ORTAGE1 NOT AN ABUNDANCE ( SURPLUS-VALUE4 ,ONLY BY LOOK+ AT A P>TICUL> 
CAPITALI/ NATION 9 ISOLATION1 OR BY SEP>AT+ ! DEVELOP$ CAPITALI/ WORLD 
FROM ! WORLD AS A :OLE1 DOES AN ACTUAL LACK ( SURPLUS-VALUE APPE> AS AN 
OV]PRODUCTION ( COMMODITIES4 ,SIMIL>LY1 IT IS ONLY FROM ! /& PO9T ( 
! 9DIVIDUAL PRODUC] 9 ANY CAPITALI/ NATION ?AT AN ACTUAL %ORTAGE ( 
SOCIALLY-PRODUC$ SURPLUS-VALUE APPE>S AS A DECL9+ M>KET DEM&4 ,BUT 9 
! WORLD AT L>GE & 9 EA* NATION SEP>ATELY1 !RE IS OV]PRODUCTION ONLY 
BECAUSE ! LEVEL ( EXPLOITATION IS 9SUFFICI5T4 ,= ?IS REASON1 
OV]PRODUCTION IS OV]COME BY AN 9CREASE 9 EXPLOITATION - PROVID$1 ( 
C\RSE1 ?AT ! 9CREASE IS L>GE 5\< TO EXP& & EXT5D CAPITAL & 
!REBY 9CREASE ! M>KET DEM&4 

#a4 ,CAPITAL1 ,VOL4 ,I1 P4 #b#f4 

#b4 ,5GELS TO ,M>X1 ,BRIEFE UB] DES ,KAPITAL1 ,B]L91 #a#i#e#d1 P4 #g#d4 

#c4 ,CAPITAL1 ,VOL4 ,I41 P4 #f#i#e4 

#d4 ,= 9/ANCE1 ,ADAM ,SMI? ?\<T ?AT CAPITAL ACCUMULATION L[]$ ! G5]AL RATE ( PR(IT 9 ! SAME S5SE 9 :I* ! COMPETITIVE EXPANSION ( P>TICUL> TRADES L[]$ ! PR(IT = !SE TRADES2 & ,DAVID ,RIC>DO HELD ?AT ! G5]AL RATE ( PR(IT WAS B\ND TO DECL9E BECAUSE CAPITAL ACCUMULATION1 :ILE RAIS+ ! PRODUCTIVITY ( 9DU/RY DIM9I%$ ! PRODUCTIVITY ( AGRICULTURE ?R\< ! 9CREAS+ 9F]IORITY ( NATURAL RES\RCES4 

#d4 ,K4 ,M>X1 ,GRUNDRISSE1 P4 #c#a#a4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #c1 #bba 3 ,*APT] #h -- ,ADD$4 

 FILE G5]AT$ FROM 3  
HTTP3_/_/REVOLTLIB4COM_/