,*APT] #i 
,CAPITALISM 9 ,CRISIS 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,BECAUSE ( ! FETI%I/IC *>ACT] ( CAPITAL PRODUCTION1 ! CAPITALI/ 
SY/EM 9 ALL ITS PHASES & 9 ALL ITS DETAILS MAY 9 A WAY BE CONSID]$ TO 
BE 9 A 0P]MAN5T0 CONDITION ( CRISIS4 ,DEPRESSION IS A 
PRECONDITION = PROSP]ITY2 PROSP]ITY COMES TO AN 5D 9 A NEW DEPRESSION4 
,!Y >E1 SO TO SPEAK1 TWO SIDES ( ! SAME CO94 ,S9CE CAPITALI/S OP]ATE AS 
9DIVIDUAL CONC]NS 9 A SOCIAL PRODUCTION ( WORLD-WIDE SCOPE1 & >E NOT 
ABLE TO COMPREH5D ! REAL POSSIBILITIES & LIMITATIONS ( ! 0SY/EM 
AS A :OLE10 OV]-EXPANSION 9 SOME SPH]ES ( PRODUCTION1 OR 9 SOME 
NATIONS1 MAY LEAD TO OV]-EXPANSION 9 O!R 9DU/RIES & NATIONS & MAY 
F9ALLY AFFECT ! WORLD AT L>GE4 ,BO? ! =CE ( COMPETITION & ! DESIRE 
TO PR(IT BY A BOOM TURN AN UPW>D TR5D 9 BUS9ESS 9TO A SELF-PROPELL+ 
EXPANSION :I* CAN DRIVE 9VE/M5TS TO A PO9T :]E ! PR(ITS DEM&$ ( 
!M >E NO LONG] =?COM+4 

,OV]-PRODUCTION ( CAPITAL DEM&S A FAIRLY WELL DEVELOP$ CAPITALISM4 ,IT IS 
NOT A REAL ISSUE 9 ! E>LY /AGES BUT BECOMES AN 9CREAS+LY GREAT] 
PROBLEM AS CAPITAL ACCUMULATES4 ,9 A C]TA9 S5SE1 EA* CRISIS IS MORE SEV]E 
?AN ! ONE PREC$+ IT BECAUSE ( ! GR[+ 9T]DEP5D5CE ( PRODUCTION 
& ( SOCIAL LIFE G5]ALLY4 ,9 ANO!R S5SE1 EA* SUCCESSIVE CRISIS FACES 
GREAT] OPPORTUNITIES BECAUSE ! BREAD? ( /RUCTURAL *ANGES REQUIR$ = 
CAPITALISM'S FUR!R EXPANSION BECOMES EV] GREAT]4 ,PA/ A C]TA9 
PO9T1 H[EV]1 CAPITAL EXPANSION'S NE$ TO EXT5D GEOGRAPHICALLY RUNS 
9TO ! NATIONAL B>RI]S )9 :I* CAPITALISM DEVELOP$4 ,! NATIONS 9 
CRISIS ATTEMPT TO BRIDGE !SE DIFFICULTIES AT ! EXP5SE ( O!R NATIONS4 
,ECONOMIC OPPORTUNITIES %IFT FROM ONE C\NTRY TO ANO!R1 FROM ONE CONT95T TO 
ANO!R2 & ! ECONOMY N[ REQUIRES NOT ONLY ! RATIONALIZATION ( 9DU/RY 
BUT A G5]AL REORGANIZATION ( ! ECONOMIC1 SOCIAL & POLITICAL /RUCTURE ( 
WORLD ECONOMY4 

,! CRISIS LAYS B>E ! DISCREPANCY BETWE5 MAT]IAL & VALUE PRODUCTION3 
ITS APPROA* IS SIGNAL$ BY A SLACK5+ RATE ( ACCUMULATION1 AN 
OV]-PRODUCTION ( COMMODITIES1 & AN 9CREASE 9 UNEMPLOYM5T4 ,SO ! WAY \T 
( ! DEPRESSION IS EFFECT$ BY CLOS+ ! GAP BETWE5 EXPANSION & 
PR(ITABILITY1 BY NEW 9VE/M5TS & ! 0NORMALIZ+0 ( ! 
COMMODITY & LABOR M>KETS4 ,A CRISIS DOES NOT JU/ />T1 IT />TS 9 
SPECIFIC 9DU/RIES1 EV5 ?\< IT IS CAUS$ BY ! TOTAL SITUATION4 ,LIKE ! 
CRISIS1 ! UPSW+1 TOO1 />TS 9 SPECIFIC 9DU/RIES & CUMULATIVELY 
AFFECTS ! :OLE ( ! ECONOMY4 ,BECAUSE CAPITAL ACCUMULATION IS ! 5L>G$ 
REPRODUCTION ( ! MEANS ( PRODUCTION1 ! UPSW+ & DECL9E1 AL?\< 
G5]AL1 >E FIR/ & =EMO/ NOTICEABLE 9 ! MANUFACTURE ( PRODUCTION 
GOODS4 

,! CRISIS DOES NOT1 H[EV]1 REFLECT ! REAL SITUATION4 ,JU/ AS ! 
UPSW+ EXAGG]ATES PR(IT EXPECTATIONS1 SO ! CRISIS EXAGG]ATES DECL9+ 
PR(ITABILITY4 ,TO SPEAK 9 ,KEYNES' SUBJECTIVE T]MS1 ! UNREALI/IC 
0OPTIMISM0 ( PROSP]ITY LEADS TO ! UNREALI/IC 
0PESSIMISM0 ( DEPRESSION4 ,9 EI!R DIRECTION1 ! COMPETITIVE 
PROCESS T5DS TO EXTREMES3 IT HA/5S BO? ! OV]-PRODUCTION ( CAPITAL & 
! REORGANIZATION ( ! CAPITAL /RUCTURE4 ,A DEPRESSION MAY 
0SNEAK0 9TO EXI/5CE BY A GRADUAL SL[+ D[N ( ECONOMIC 
ACTIVITY1 OR IT MAY BE 9ITIAT$ BY A DRAMATIC 0CRA%0 ) SUDD5 
BANK FAILURES & ! COLLAPSE ( ! /OCK M>KET4 ,! CRISIS ITSELF IS M]ELY 
! PO9T AT :I* ! REV]SAL ( BUS9ESS CONDITIONS IS PUBLICLY 
RECOGNIZ$4 

,:ATEV] ! CIRCUM/ANCES SURR\ND+ ! REV]SAL ( ! ECONOMIC TR5D1 
IT IS ACCOMPANI$ BY AN OV]-PRODUCTION ( COMMODITIES4 ,EV5 ! LA/ PHASES ( 
! BOOM PREC$+ ! CRISIS >E1 VIEW$ 9 RETROSPECT1 ALREADY UNPR(ITABLE2 
BUT RECOGNITION ( ?IS FACT HAS TO AWAIT ! V]DICT ( ! M>KET4 
,COMMITM5TS MADE ON ! ASSUMPTION ( A CONT9U\S UPW>D TR5D CANNOT BE MET4 
,! CONV]SION ( CAPITAL FROM COMMODITY TO MONEY =M BECOMES 9CREAS+LY 
MORE DIFFICULT4 ,! CRISIS ( PRODUCTION IS AT ! SAME TIME A F9ANCIAL 
CRISIS4 ,! NE$ = LIQUID FUNDS & ! ATTEMPT TO AVOID LOSSES 9T5SIFY ! 
FALL ( SECURITIES & COMMODITY PRICES4 ,COMPETITION BECOMES CUT?ROAT 
COMPETITION & = SOME BUS9ESSES PRICES >E =C$ D[N TO ! PO9T ( 
RU94 ,CAPITAL VALUES >E RAPIDLY DEPRECIAT$1 =TUNES >E LO/1 9COMES >E 
WIP$ \T4 ,SOCIAL DEM& DECL9ES FUR!R AS ! NUMB] ( UNEMPLOY$ GR[S3 
! COMMODITY-GLUT IS *ECK$ ONLY BY ! /ILL FA/] DECL9E ( PRODUCTION4 
,! CRISIS EXT5DS 9TO ALL SPH]ES & BRAN*ES ( PRODUCTION4 ,ITS G5]AL 
=M REVEALS ! SOCIAL 9T]DEP5D5CE ( ! CAPITALI/ MODE ( PRODUCTION 
DESPITE ! PRIVATE PROP]TY RELATIONS :I* CONTROL IT4 

,AFT] A P]IOD ( PANIC1 H[EV]1 ! CAPITALI/ ECONOMY REORI5TS ITSELF 
T[>DS A NEW /ABILITY UND] *ANG$ CONDITIONS4 ,! 5SU+ /AGNATION OR 
DEPRESSION1 :ILE DE/ROY+ MANY BUS9ESSES1 IMPROVES ! PR(ITABILITY ( ! 
SURVIVORS BY PRES5T+ !M ) L>G] M>KETS4 ,A MORE CONC5TRAT$ CAPITAL 
N[ COMM&S A L>G] SPH]E ( BUS9ESS OP]ATIONS4 ,IT DEF5DS & 
CONSOLIDATES ITS NEWLY-WON POSITION1 CUTT+ LABOR-CO/S BY 9VE/+ ANEW 9 
TE*NOLOGICAL 9NOVATIONS4 ,TO A GREAT] OR LESS] DEGREE COMPETITION =CES ALL 
SURVIV+ CAPITALS TO DO ! SAME1 & A NEW WAVE ( 9VE/M5TS1 ALT]+ ! 
RELATION%IP BETWE5 PR(IT & WAGES1 9ITIATES A NEW P]IOD ( CAPITAL 
PRODUCTION4 ,! PROBLEMS ( CAPITALISM1 COM+ TO ! =E ON ! M>KET1 F9D 
!IR SOLUTION 9 ! SPH]E ( PRODUCTION1 ?\< ! SOLUTION IS NOT COMPLETE 
UNTIL IT ALSO AFFECTS M>KET RELATIONS4 

,NOT ONLY ! CONDITIONS ( CAPITAL PRODUCTION BUT ALSO ITS CIRCULATION 
IMPROVE & EASE ! REALIZATION ( SURPLUS-VALUE4 ,AS ! UPW>D TR5D GA9S 
MOM5TUM1 DEM& 9CREASES & ! OV] SUPPLY ( COMMODITIES DIM9I%ES4 
,PRICES BEG9 TO RISE UND] CONDITIONS ( A GREAT] VOLUME ( BUS9ESS1 = ! 
CONC5TRATION PROCESS AFFECTS ! SPH]E ( CIRCULATION1 TOO4 ,TO BE SURE1 WAGES 
ALSO BEG9 TO RISE & ! AV]AGE RATE ( PRODUCTIVITY ( LABOR DECL9ES 
BECAUSE ( ! GREAT] NUMB] ( WORK]S EMPLOY$1 9CLUD+ LESS PRODUCTIVE 
WORK]S LAID (F DUR+ ! DEPRESSION4 ,BUT AS LONG AS PR(ITABILITY CAN BE 
RAIS$ ?R\< NEW ME?ODS & MEANS ( PRODUCTION FA/] ?AN IT FALLS DUE TO 
! IMPROVEM5T ( LABOR CONDITIONS1 ! RATE ( ACCUMULATION REMA9S 
UNAFFECT$4 

,DESPITE 9T]MITT5T P]IODS ( DEPRESSION1 EA* UPSW+ BR+S CAPITAL 
PRODUCTION TO A HI<] PO9T & WID] EXT5SION ?AN ITS PREVI\S LEVEL ( 
DEVELOPM5T4 ,!RE >E FEW] CAPITALI/S RELATIVE TO ! 9CREAS$ CAPITAL BUT 
MORE 9 ABSOLUTE NUMB]S4 ,!RE >E FEW] WORK]S EMPLOY$ RELATIVE TO ! 
ACCUMULAT$ CAPITAL BUT MORE 9 ABSOLUTE NUMB]S4 ,CAPITAL DEVELOPS 9 A MANN] 
?AT MAY BE DESCRIB$ AS ?REE /EPS =W>D & TWO /EPS BACKW>D4 ,?IS TYPE 
( LOCOMOTION DOES NOT H9D] ! G5]AL ADVANCE2 IT ONLY SL[S IT4 ,:5 
CAPITALI/ DEVELOPM5T IS SE5 & /EADY PROCESS1 QUITE AP>T FROM ! HECTIC 
FLUCTUATIONS ( EXPANSION & CONTRACTION1 ! RATE ( CAPITAL ACCUMULATION IS 
QUITE MOD]ATE & GIVES NO 9DICATION ( ! MANY UPHEAVALS & SOCIAL 
/RUGGLES IT 9VOLVES4 

,TO SPEAK1 !N1 ( ! CAPITALI/ CRISIS OR ! BUS9ESS-CYCLE IS M]ELY TO 
REF] TO ! SPECIFIC MANN] 9 :I* CAPITAL ACCUMULATES UND] COMPETITIVE 
M>KET CONDITIONS :]E ! 9T]RELATIONS ( CAPITALI/ PRODUCTION AS A :OLE 
>E LEFT TO 5=CE !MSELVES BY WAY ( CRISIS4 ,ANY ME*ANISM 9 CAPITALISM 
:I* REGULATES ANY ?+ AT ALL MU/ FIR/ REGULATE ! RELATIONS BETWE5 
PRODUCTION & PR(ITABILITY4 ,) ! SELF-EXPANSION ( CAPITAL AS ! 
DET]M9+ DEVELOPM5TAL FACTOR1 ! 0LAW ( VALUE0 ASS]TS ITSELF 
LESS & LESS 9 T]MS ( PRICE *ANGES 9 EV]YDAY M>KET ACTIVITY2 IT 
REQUIRES1 9/EAD1 AN ALL-EMBRAC+ ECONOMIC CRISIS4 ,! 0EQUILIBRIUM 
T5D5CIES0 ( ! COMPETITIVE M>KET COME TO ! =E NOT 9 !IR 
ACTUALIZATION BUT 9 ! EXPANSION & CONC5TRATION ( CAPITAL4 ,& JU/ 
BECAUSE IT REQUIRES A CRISIS TO REE/ABLI% ! TYPE ( PROPORTIONALITY 
NECESS>Y = A FUR!R CAPITAL =MATION1 ! V>I\S CRISIS-ELEM5TS 
ACCUMULATE UNDETECT$ & UN*ALL5G$ 9 EA* EXPANSION P]IOD4 

,= ,M>X1 EA* P]IOD ( CRISIS & DEPRESSION IS A MANIFE/ATION ( ! 
WORK+S ( ! 0LAW ( VALUE10 A 0HEAL+-PROCESS0 ON 
:I* ! CONT9U$ LIFE ( CAPITAL DEP5DS4 ,! 0EQUILIBRIUM0 
=CES ( ! M>KET OP]ATE )9 A ME*ANISM :I* 0EQUATES0 ! 
RATE ( ACCUMULATION ) ! RATE ( PR(IT & TO ?IS 5D DEM&S RECURR5T 
CRISES4 ,! TYPE ( M>KET EQUILIBRIUM ( :I* B\RGEOIS ECONOMY SPEAKS CANNOT 
BE BR\<T AB\T4 ,! ONLY EQUILIBRIUM POSSIBLE IS A 0DYNAMIC 
EQUILIBRIUM0 :I* IMPLIES A SUCCESSFUL ACCUMULATION ( CAPITAL &1 
!RE)1 A /EADY 9CREASE ( ! DISEQUILIBRIUM BETWE5 0SOCIAL 
DEM&0 & ACTUAL SOCIAL NE$S1 BETWE5 ! PR(IT-DET]M9$ EXPANSION 
( PRODUCTION & ! EXPANSION & ORGANIZATION REQUIR$ = ! SATISFACTION 
( SOCIAL NE$S4 

,! CAPITALI/ CRISIS VALIDATES ! G5]AL !ORY ( CAPITAL ACCUMULATION1 
AS IT IS H]E ?AT ,M>X'S AB/RACT VALUE ANALYSIS ( CAPITAL PRODUCTION 
F9DS ITS OBS]VABLE V]IFICATION4 ,! RISE ( ! ORGANIC COMPOSITION 
( CAPITAL IS AN 9CONTE/ABLE DEVELOPM5T4 ,! FALL ( ! RATE ( PR(IT AS A 
CONSEQU5CE ( ! RIS+ ORGANIC COMPOSITION ( CAPITAL IS1 H[EV]1 
EXP]I5C$ ONLY 9 P]IODS ( CRISIS & CAPITAL /AGNATION1 AS EXP&+ 
CAPITALISM COMP5SATES = ! FALL ( ! RATE ( PR(IT BY A RISE 9 ! MASS 
( PR(ITS ON ! L>G] TOTAL CAPITAL4 

,NO SPECIFIC DATA EXI/ = ! ORGANIC COMPOSITION ( TOTAL CAPITAL4 
,ACCORD+ TO ! /ATE ( 9DU/RIALIZATION1 IT IS HI< 9 SOME NATIONS & L[ 
9 O!RS4 ,EV5 = A P>TICUL> NATION1 ! ORGANIC COMPOSITION ( CAPITAL CAN 
ONLY BE VAGUELY CALCULAT$ FROM 9SUFFICI5T1 UNSUITABLE1 & L>GELY 
UNRELIABLE DATA1 :I* YIELD NOT MU* MORE ?AN ! OBVI\S2 NAMELY1 ?AT ! 
9CREAS+ PRODUCTIVITY ( LABOR MANIFE/S ITSELF 9 ! CONT9U\S EXPANSION 
( CAPITAL4 ,A HUNDR$ YE>S AFT] ! WRIT+ ( ,CAPITAL1 IT MU/ 
/ILL BE SAID ?AT NOT EV5 = A S+LE C\NTRY1 ,AM]ICA 9 ?IS 9/ANCE1 CAN 
0PA/ P]=MANCES ) RESPECT TO CAPITAL =MATION & F9ANC+ BE 
/UDI$ 9 ADEQUATE DETAIL1 BECAUSE ( LACK ( DATA40.<#a.> ,H[EV]1 :AT DATA EXI/ 
DO V]IFY ,M>X'S EXPECTATIONS AS TO ! C\RSE ( CAPITAL 
DEVELOPM5T4 

,AS REG>DS CAPITAL =MATION 9 ,AM]ICA1 ,SIMON ,KUZNETS RELATES ?AT DUR+ 
! P]IOD #ahfi TO #aiee 0!RE WAS A M>K$ GR[? ( CAPITAL P] P]SON 
& P] NUMB] ( ! LABOR =CE4 ,NET CAPITAL /OCK P] HEAD ROSE1 OV] ! 
P]IOD AS A :OLE1 TO AB\T F\R TIMES ITS 9ITIAL LEVEL 444 AT A RATE ( AB\T 
#ag P] C5T P] DECADE40.<#b.> ,TO BE SURE1 CAPITAL =MATION P] HEAD ( POPULATION 
& EV5 P] HEAD ( LABOR =CE IS NOT RELAT$ TO ! RISE ( ! ORGANIC 
COMPOSITION ( CAPITAL 9 ! ,M>XIAN S5SE4 ,IT %[S NONE!LESS ?AT CAPITAL 
9CREAS$ CON/ANTLY &1 = ! P]IOD UND] CONSID]ATION1 ROSE F\R TIMES 
FA/] ?AN POPULATION4 ,KUZNETS SUMM>IZES ! GR[? 9 ! VOLUME ( CAPITAL 
=MATION 9 T]MS ( DOLL> VALUES 9 CON/ANT 7#a#i#b#i7 PRICES4 ,HE DI/+UI%ES 
BETWE5 GROSS- & NET-CAPITAL =MATION1 ! LATT] BE+ ! ACTUAL ADDITIONS 
TO ! EXI/+ CAPITAL AFT] ! D$UCTIONS ( ! 0CONSUM$0 
FIX$ CAPITAL >E MADE4 0,! ANNUAL VALUE ( GROSS CAPITAL =MATION ROSE 
FROM @s#c4#e BILLION 9 #a#h#f#i-#a#h#h#h TO @s#a#i BILLION 9 #a#i#b#i-#a#i#e#e1 & TO @s#c BILLION 
9 #a#i#d#f-#a#i#e#e4 ,?IS LONG-T]M RISE OV] SOME ?REE QU>T]S ( A C5TURY WAS 
?US AB\T N9E TIMES ! ORIG9AL LEVEL4 ,CAPITAL CONSUMPTION 7DEPRECIATION7 
*>GES ALSO ROSE RAPIDLY1 FROM AN ANNUAL LEVEL ( AB\T @s#a4#e BILLION 9 
#a#h#f#i-#a#h#h#h TO OV] @s#a#d BILLION 9 #a#i#b#i-#a#i#e#e & SLI<TLY OV] @s#a#i BILLION 9 
#a#i#d#f-#a#i#e#e4 ,! RISE H]E WAS1 !RE=E1 TO AB\T ?IRTE5 TIMES ! 9ITIAL 
LEVEL4 ,NET CAPITAL =MATION ALSO GREW APPRECIABLY1 FROM @s#b BILLION P] YE> 9 
#a#h#f#i-#a#h#h#h TO @s#d4#g BILLION 9 #a#i#b#i- #a#i#e#e1 & TO AB\T @s#a4#e BILLION 9 
#a#i#d#f-#a#i#e#e4 ,! RISE WAS OV] FIVE TIMES ! 9ITIAL LEVEL40.<#c.> 

,DATA SOME:AT MORE RELEVANT TO ! ORGANIC COMPOSITION ( CAPITAL EXI/ = 
SELECT$ 9DU/RIES4 ,= 9/ANCE1 = ,AM]ICA'S #a L>GE/ FIRMS1 
EMPLOY+ #e MILLION P]SONS & HAV+ COMB9$ ASSETS ( @s#a#b#f BILLION1 ! 
AV]AGE AM\NT ( ASSETS P] WORK] GREW FROM @s#a#b1#b 9 #aidi TO @s#b1#i 9 
#aiei & TO @s#b#d1 9 #a#i#f#b4 .<#d.> ,!RE W]E WIDE V>IATIONS BETWE5 DIFF]5T 
9DU/RIES1 AS ! FOLL[+ TABLE %[S3.<#e.> 

 ,AV]AGE ,TOTAL ,ASSETS P] ,EMPLOYEE1 
 BY ,9DU/RY1 ( ! L>GE/ ,MANUFACTUR+ ,CORPORATIONS 9 #aiei  ,N,U,M,B,] ,( 
 ,C,O,M,P,A,N,I,E,S ,9,D,U,/,R,Y  ,A,V,],A,G,E ,9,V,E,/,M,5,T 
 ,P,] ,E,M,P,L,O,Y,E,E 7,D,O,L,L,>,S7 #ba   
 ,PETROLEUM ,PRODUCTS #f#b4   
 #c   
 ,DI/ILL+  #e#c4#d   
 #c    
 ,TOBACCO ,PRODUCTS  #e4#a    
 #h   
 ,NONF]R\S ,METALS #b#h4#b   
 #h    
 ,*EMICAL ,PRODUCTS  #b#d4#g    
 #i   
 ,IRON & ,/EEL #b#a4#b   
 #c    
 ,PULP & ,PAP]  #a#h4#h    
 #c   
 ,AUTOS & ,TRUCKS #a#d4#h   
 #aa   
 ,MA*9]Y & ,EQUIPM5T #a#c4   
 #f   
 ,FOOD ,PRODUCTS #a4#e   
 #d   
 ,TIRES1 ,RUBB] ,PRODUCTS #a4#c   
 #e   
 ,ELECTRICAL ,EQUIPM5T #a4#a   
 #g   
 ,AIRCRAFT #g4#f   
 #i   
 ,O!R ,MANUFACTUR+ #a#g4#g   
 ,TOTAL "7 #a   
 ,AV]AGE "7  #b4#i   
  

,) ALL !IR IMP]FECTIONS1 9CLUD+ !IR FAILURE TO DI/+UI% BETWE5 
CAPITALI/ICALLY-PRODUCTIVE & UNPRODUCTIVE LABOR 9 ! AMALGAM 0HEAD 
( LABOR10 ,KUZNETS' FIGURES SUGGE/ NONE!LESS ?AT CAPITAL 
=MATION DOES PROCE$ 9 ACCORDANCE ) ! VALUE *>ACT] ( CAPITAL 
PRODUCTION1 :I* REQUIRES A FA/] 9CREASE ( ! CON/ANT ?AN ( ! 
V>IABLE P>T ( CAPITAL4 ,LEAV+ P]IODS ( DEPRESSION ASIDE1 ! OV]ALL RATE 
( CAPITAL =MATION 9DICATES A SUFFICI5T RATE ( PR(IT BY ! V]Y FACT ( 
! ACCUMULAT$ CAPITAL4 ,ONLY A DECL9E ( ! RATE ( ACCUMULATION CAUSES ! 
LAT5T T5D5CY ( ! RATE ( PR(IT TO FALL TO MANIFE/ ITSELF4 ,?IS CAN ALSO 
BE EXPRESS$ 9 REV]SE3 A DECL9E ( PR(ITABILITY COMES TO ! =E AS A 
R$UC$ RATE ( CAPITAL =MATION :I*1 9 TURN1 >RE/S ! RISE ( ! 
ORGANIC COMPOSITION ( CAPITAL4 

,N[1 ONE ( ,M>X'S 0C\NT]T5D5CIES0 TO ! FALL ( ! 
RATE ( PR(IT IS PRECISELY A SL[+ D[N ( ! RISE ( ! ORGANIC 
COMPOSITION ( CAPITAL ?R\< *EAP5+ ! ELEM5TS ( CON/ANT CAPITAL4 ,IT 
IS MADE POSSIBLE BY TE*NOLOGICAL *ANGES 9CREAS+ ! PRODUCTIVITY ( LABOR 
SO ?AT RELATIVELY LESS SURPLUS-VALUE IS CONV]T$ 9TO ADDITIONAL CAPITAL4 
,:ILE LABOR-SAV+ DEVICES FO/] ! MORE RAPID 9CREASE ( CAPITAL 
9VE/M5TS RELATIVE TO WAGES1 CAPITAL-SAV+ DEVICES DIM9I% TO SOME EXT5T 
! WID5+ GAP BETWE5 ! MONEY 9VE/$ 9 LABOR & ?AT 9VE/$ 9 
CAPITAL4 ,?IS C\LD NOT BE O!RWISE BECAUSE ! 9CREAS+ PRODUCTIVITY ( 
LABOR ALSO AFFECTS ! PRODUCTION ( ! MEANS ( PRODUCTION4 ,CAPITAL-SAV+ 
& LABOR-SAV+ 9NOVATIONS >E ACTUALLY ONE & ! SAME1 MEAN+ ?AT1 
RELATIVE TO ! QUANTITIES ( COMMODITIES PRODUC$1 LESS & LESS LABOR IS 
EMPLOY$ 9 ALL BRAN*ES ( PRODUCTION & ?US ALSO 9 ! MANUFACTURE ( 
CAPITAL GOODS4 

,TO ACCUMULATE CAPITAL1 ! MASS ( CAPITAL MU/ 9CREASE DESPITE & BECAUSE 
( ! *EAP5+ ( ! MEANS ( PRODUCTION4 ,! *EAP5+ ( CON/ANT 
CAPITAL IS ?US A 0C\NT]T5D5CY0 TO ! FALL ( ! RATE ( 
PR(IT ONLY 9 SO F> AS IT ALL[S = A MORE RAPID CAPITAL ACCUMULATION4 ,?IS 
IS ALREADY MADE OBVI\S BY ! FACT ?AT CRISES & DEPRESSIONS ACCOMPANI$ 
CAPITALI/ DEVELOPM5T UND] CONDITIONS ( A L[ AS WELL AS A HI< ORGANIC 
COMPOSITION ( CAPITAL4 ,S9CE ONLY CONDITIONS ( RAPID CAPITAL =MATION BR+ 
=? A SOCIAL DEM& L>GE 5\< TO EMPLOY ALL1 OR NE>LY ALL1 PRODUCTIVE 
RES\RCES1 CAPITAL MU/ ACCUMULATE IRRESPECTIVE ( ! /ATE ( ITS ORGANIC 
COMPOSITION4 ,BECAUSE CAPITAL IS NOT ONLY A PRODUCTION RELATION BUT ALSO A VALUE 
RELATION1 ! MASS ( CAPITAL 9 ANY ONE CYCLE ( PRODUCTION MU/ BE L>G] 9 
VALUE T]MS ?AN IT WAS 9 A PREVI\S CYCLE4 

,RETURN+ TO ,KUZNETS' OBS]VATIONS1 WE LE>N ?AT DUR+ LA/ ?REE 
DECADES ! ORGANIC COMPOSITION ( ,AM]ICAN CAPITAL HAS NOT RIS5 AS IT DID 
PREVI\SLY4 ,OV] SOME SIXTY YE>S1 PRIOR TO #a#i#b1 CAPITAL /OCK P] WORK] GREW 
AT HI< RATES2 FROM !N ON1 H[EV]1 CAPITAL /OCK P] WORK] DECL9ES 
DRA/ICALLY4 ,IT IS TRUE1 ,KUZNETS WRITES P]IOD BEG9N+ 9 #aibi 9CLUDES ! 
,GREAT ,DEPRESSION2 ON ! O!R H&1 IT 9CLUDES ALSO ! EXPANSION YE>S ( 
,WORLD ,W> ,I,I & A DECADE ( A P>TICUL>LY HI< LEVEL ( CAPITAL =MATION 
FOLL[+ ! CONCLUSION ( ! W>4 ,IF WE VIEW ! AV]AGE 9 #a#i#b#i-#a#i#e#e AS AN 
APPROXIMATION ( LONG-T]M SECUL> LEVELS1 WE CAN H>DLY ESCAPE ! CONCLUSION 
?AT SUB/ANTIAL *ANGES HAVE OCCURR$ 9 ! FACTORS ?AT DET]M9E CAPITAL 
=MATION4 .<#f.> 

,! L[]+ ( ! RATE ( CAPITAL =MATION 9 ! ,UNIT$ ,/ATES1 9 
,KUZNETS' VIEW1 APPE>S TO BE ! RESULT ( A GR[+ RATE ( CAPITAL 
DEPRECIATION & CAPITAL-SAV+ 9V5TIONS4 ,:]EAS 9 ! P]IOD FROM 
#a#h#f#i-#a#h#h#h 0IT TOOK @s#a4#g ( GROSS CAPITAL =MATION TO PROVIDE @s#a ( NET 
CAPITAL =MATION10 9 ! DECADE BETWE5 #a#i#d#f-#a#i#e#e1 0IT TOOK 
ALMO/ @s#c ( GROSS CAPITAL =MATION TO DO SO40 ,GROSS CAPITAL =MATION 
ITSELF1 RELATIVE TO GROSS NATIONAL PRODUCT 79 CON/ANT PRICES71 DECL9$ FROM 
0#b#b4#f P] C5T 9 #a#h#f#i-#a#h#h#h TO #b#a4#e P] C5T 9 #a#i#i-#a#i#b#h & TO #a#g4#f P] 
C5T 9 #a#i#d#f-#a#i#e#e40 ,) GROSS CAPITAL =MATION DECL9+ 9 PROPORTION 
TO GROSS NATIONAL PRODUCT1 & ) 0! RATE ( CAPITAL CONSUMPTION TO 
GROSS CAPITAL =MATION RIS+ APPRECIABLY1 ! RATIO ( NET CAPITAL =MATION 
TO NATIONAL 9COME 7OR NATIONAL NET PRODUCT7 %[S A DI/9CT D[N W>D TR5D4 
,ITS %>E DECL9$ FROM #a#d4#f P] C5T 9 #a#h#f#i-#a#h#h#h TO #a#a4#b P] C5T 9 
#a#i#i-#a#i#b#h & TO #g4 P] C5T 9 #a#i#d#f-#a#i#e#e40.<#g.> 

,! RISE ( CAPITAL 0CONSUMPTION10 ) ITS DEPRESS+ EFFECT 
UPON NET CAPITAL =MATION IS EXPLA9$ NOT BY A QUICK] PHYSICAL DET]IORATION 
( CAPITAL BUT BY ! QUICK5+ ( ITS COMPETITIVE OBSOLESC5CE4 ,ON ! O!R 
H&1 ! MORE PRODUCTIVE CAPITAL REPLACEM5TS T5D TO BE ( A CAPITAL-SAV+ 
TYPE1 COMB9+ HI<] EFFICI5CY ) A L[] SUPPLY ( CAPITAL P] WORK]4 
,! GR[+ 0WEAL?0 ( ,AM]ICA EXPRESSES ITSELF AS A GR[+ 
WEAL? ( M>KETABLE COMMODITIES RA!R ?AN ( CAPITAL 9VE/M5TS4 ,:]EAS 9 
TIMES PA/ ! NET EFFECT ( TE*NOLOGICAL *ANGES WAS AN 9CREASE 9 BO? \T 
PUT & CAPITAL1 9 MORE REC5T TIMES REAL PRODUCTION P] CAPITA HAS GR[N ) 
A DECL9+ RATE ( CAPITAL =MATION4 

,NOT 9FREQU5TLY1 !N1 IT IS SAID ?AT 0CAPITALISM IS 9 CRISIS 
BECAUSE IT PRODUCES TOO MU* SURPLUS-VALUE = ITS ULTIMATE REALIZATION 9 ! 
PROGRESSIVE ACCUMULATION ( CAPITAL40.<#h.> ,QUALITATIVE *ANGES 9 ! TE*NOLOGY HAVE 
SUPPOS$LY BR\<T =? ! 0POSSIBILITY ( PRODUC+ ADDITIONAL 
SURPLUS-VALUE )\T CORRESPOND+ ADDITIONS TO ! 9VE/$ CAPITAL1 .<&.> 
! *IEF =M ( REALIZATION1 ?AT ( ITS CONV]SION 9TO CAPITAL BECOMES 
.<!RE).> IMPAIR$40.<#i.> ,! RESULT IS ?AT ! NATIONAL PRODUCT GR[S FA/] 
?AN DOES CAPITAL4 

,?IS IS NOT1 H[EV]1 A NOVEL SITUATION4 ,ACCORD+ TO ,M>X1 AS WE HAVE SE51 
PRODUCTION & ! PRODUCTIVITY ( LABOR ALWAYS GR[ FA/] ?AN ! VALUE ( 
CAPITAL4 ,AT ALL TIMES & BY ALL MEANS1 CAPITALI/S TRY TO TRIM CAPITAL-CO/S 
& LABOR-CO/S 9 !IR SE>* = ! GREATE/ AM\NT ( PR(IT POSSIBLE4 
,?R\<\T EV]Y ECONOMIC DEPRESSION1 MOREOV]1 SURPLUS-VALUE 9 ! =M ( 
UNSALABLE COMMODITIES CANNOT BE CONV]T$ 9TO ADDITIONAL CAPITAL1 & GLUTS 
! M>KET AS AN APP>5T ABUNDANCE ( SURPLUS-VALUE4 ,TO GO BACK ONCE AGA9 TO 
FUNDAM5TALS3 ! RIS+ ORGANIC COMPOSITION ( CAPITAL DOES NOT R$UCE ! 
ACTUAL RATE ( PR(IT ON CAPITAL SO LONG AS CAPITAL ACCUMULATES FA/] 
?AN ! RATE ( PR(IT FALLS4 ,IF CAPITAL ACCUMULATES )\T A CORRESPOND+ 
RISE 9 ! ORGANIC COMPOSITION ( CAPITAL1 ?AT IS1 IF NEW CAPITAL ( L[ 
ORGANIC COMPOSITION CON/ANTLY 5T]S ! M>KET ECONOMY ?R\< ! SPREAD ( 
! CAPITALI/ MODE ( PRODUCTION & !REBY L[]S ! AV]AGE 
COMPOSITION ( CAPITAL1 ! MASS ( SURPLUS-VALUE & ! RATE ( PR(IT WILL 
RISE4 ,CAPITAL-SAV+ 9NOVATIONS :I* L[] ! ORGANIC COMPOSITION ( CAPITAL 
%\LD HAVE ! SAME EFFECT2 9DE$1 ACCORD+ TO ,GILLMAN1 9 TW5TIE? C5TURY 
CAPITALISM !Y HAVE L$ TO A SUP] ABUNDANCE ( SURPLUS-VALUE4 ,9 
,GILLMAN'S VIEW ?IS SURPLUS-VALUE CANNOT BE REALIZ$ AS NEW 
CAPITAL1 & ALSO CANNOT BE REALIZ$ 9 ! =M ( CONSUMPTION BECAUSE ( 
CAPITALISM'S ANTAGONI/IC SY/EM ( DI/RIBUTION4 ,CAPITALISM'S 
DIFFICULTIES >E H]E %IFT$ FROM ! SPH]E ( PRODUCTION 9TO ! SPH]E ( 
DI/RIBUTION4 ,NOT PRODUCTION BUT REALIZATION ( SURPLUS-VALUE ACC\NTS = ! 
CAPITALI/ CRISIS4 ,?IS IS A FLAT REJECTION ( ,M>X'S !ORY ( CAPITAL 
ACCUMULATION &1 BY IMPLICATION1 ( ! LABOR !ORY ( VALUE ITSELF4 
,FUR!RMORE1 ?IS 0%IFT0 HAS NO?+ TO DO ) ! SOCIAL 
CONDITIONS PECULI> TO TW5TIE? C5TURY CAPITALISM1 BECAUSE ! PRODUCTION 
PROBLEM ( CAPITAL C\LD AT ALL TIMES BE READ AS A REALIZATION 
PROBLEM4 ,EV5 9 ! N9ETE5? C5TURY1 ,MAL?US1 = 9/ANCE1 SAW ! CRUX ( 
! CAPITALI/ DILEMMA 9 ! REALIZATION PROBLEM4 ,& AT ! TURN ( ! 
C5TURY1 ! ,M>XI/ ,ROSA ,LUXEMBURG SAW 9 ! DIFFICULTIES ( SURPLUS-VALUE 
REALIZATION ! OBJECTIVE REASONS = CRISES & W>S & = 
CAPITALISM'S EV5TUAL DEMISE4 

,ALL ?IS HAS LITTLE TO DO ) ,M>X1 :O SAW ?AT ! ACTUAL WORLD ( 
CAPITALISM WAS AT ONCE A PRODUCTION & A CIRCULATION PROCESS1 TO BE SURE1 BUT 
:O HELD NEV]!LESS ?AT NO?+ CIRCULATES UNLESS IT IS FIR/ PRODUC$1 & 
= ?AT REASON GAVE PRIORITY TO ! PROBLEMS ( ! PRODUCTION PROCESS4 ,IF ! 
PRODUCTION ( SURPLUS-VALUE IS ADEQUATE TO ASSURE AN ACCEL]AT$ CAPITAL 
EXPANSION1 !RE IS LITTLE REASON TO ASSUME ?AT CAPITALISM WILL FALT] 9 ! 
SPH]E ( CIRCULATION4 

,BECAUSE ( ! T5D5TIAL FALL ( ! RATE ( PR(IT !RE CAN NEV] BE AN 
ABUNDANCE ( SURPLUS-VALUE 9 RELATION TO ! ACCUMULATION NE$S ( CAPITALISM4 
,( C\RSE1 DUE TO M>KET DISPROPORTIONALTIES1 P>TICUL> 9DU/RIES MAY 
EXP]I5CE A REALIZATION PROBLEM2 H[EV]1 !SE SAME DISPROPORTIONALTIES WILL 
OV]COME ! PROBLEM BY RE-ALLOCAT+ LABOR & CAPITAL 9 ACCORDANCE ) ! 
PR9CIPLE ( PR(ITABILITY4 ,A G5]AL OV]PRODUCTION ( CAPITAL & 
COMMODITIES1 AFFECT+ ALL SPH]ES & BRAN*ES ( PRODUCTION AT ONCE1 CANNOT 
BE EXPLA9$ BY M>KET DISPROPORTIONALTIES4 ,IT IMPAIRS ! REALIZATION ( 
SURPLUS-VALUE = TOTAL CAPITAL1 AFFECT+ 9DIVIDUAL CAPITALS TO V>Y+ 
DEGREES2 & ?IS G5]AL IMPAIRM5T CANNOT BE RESOLV$ BY A M]E REALLOCATION 
( ! EXI/+ LABOR & CAPITAL4 

,9 !ORY1 ACCORD+ TO ,M>X1 A SUFFICI5T 9CREASE ( SURPLUS-VALUE WILL 
*ANGE A P]IOD ( CAPITAL /AGNATION 9TO ONE ( EXPANSION4 ,! RELATIVE 
/AGNATION ( ! ,AM]ICAN ECONOMY1 = 9/ANCE1 C\LD BE CONSID]$ A 
PROLONG$ CRISIS SITUATION :I*1 9 FACT1 IT IS4 ,!RE IS NO?+ 9 ,M>XIAN 
!ORY :I* EXCLUDES ! RESUMPTION ( AN 5HANC$ CAPITAL EXPANSION1 ?\< 
! ACTUAL SITUATION 9 :I* ,AM]ICAN CAPITALISM F9DS ITSELF MAY 
PRECLUDE SU* AN EV5T4 ,CAPITAL /AGNATION IS A CRISIS SITUATION4 ,)9 ?IS 
CRISIS SITUATION ATTEMPTS >E MADE TO 9CREASE ! PR(ITABILITY ( CAPITAL4 ,IF 
!SE ATTEMPTS DO NOT RESULT 9 ACCEL]AT$ ACCUMULATION1 ?IS DOES NOT 
9DICATE ?AT !RE IS TOO MU* SURPLUS-VALUE = PURPOSES ( CAPITALIZATION2 
RA!R IT 9DICATES ?AT = ?IS 5D ! SURPLUS-VALUE IS NOT 
SUFFICI5T1 :ATEV] IT MAY BE4 ,IF ?IS P>TICUL> SITUATION CONT9UES = 
LONG1 IT W\LD PO9T TO ! 9SOLUBILITY ( CRISIS CONDITIONS1 = A 
CONT9U\S 9CREASE ( PRODUCTION )\T CAPITAL ACCUMULATION IS NO 
LONG] TRUE CAPITALI/ PRODUCTION4 ,AN 9CREAS+ P>T ( SURPLUS-LABOR W\LD 
LOSE ITS VALUE *>ACT] & TO ?AT EXT5T DECREASE ! PR(ITABILITY ( 
CAPITAL4 ,9 ?AT CASE1 ONE C\LD SPEAK ( A 0P]MAN5T CRISIS0 ( 
CAPITAL PRODUCTION1 :I* IS TO SAY ?AT ! CRISIS ME*ANISM FAILS TO RE/ORE 
! CONDITIONS = AN EXP&+ CAPITALI/ ECONOMY4 

,M>X DID NOT CONC]N HIMSELF ) ! 9DIVIDUAL FIRM OR C\NTRY SAVE 9 SO 
F> AS A DESCRIPTION ( EI!R W\LD ?R[ LI<T UPON ! *>ACT] ( ! 
CAPITALI/ SY/EM AS SU*4 ,HE US$ ,5GL& = DEMON/RATIVE PURPOSES1 & 
PO9T$ \T ?AT ! 0C\NTRY ?AT IS MORE DEVELOP$ 9DU/RIALLY ONLY 
%[S1 TO ! LESS DEVELOP$ ! IMAGE ( ITS [N FUTURE02.<#a.> BUT ?IS IMAGE 
RELATES ONLY TO ! CAPITALI/ CONDITIONS ( PRODUCTION & EX*ANGE1 & DOES 
NOT EXCLUDE V>IATIONS BETWE5 NATIONS 9 O!R RESPECTS4 ,BRITI% CAPITALISM 
SUB/ANTIAT$ ,M>X'S G5]AL !ORY ( CAPITAL ACCUMULATION1 BUT ?IS 
!ORY1 ONCE EVOLV$1 WAS 9DEP5D5T ( ANY P>TICUL> C\NTRY4 ,JU/ AS ! 
=TUNES ( 9DIVIDUAL CAPITALS V>Y 9 ! G5]AL COMPETITIVE ACCUMULATION 
PROCESS1 SO DO ! =TUNES ( 9DIVIDUAL NATIONS4 ,BUT = ! WORLD AS A 
:OLE1 ! CAPITALI/ ACCUMULATION PROCESS REMA9S DET]M9$ BY ! 9CREASE 
OR DECREASE ( SURPLUS-VALUE RELATIVE TO ! GR[+ MASS ( TOTAL CAPITAL4 
,/AGNATION ( CAPITAL 9 ONE NATION MAY ALL[ = A MORE RAPID ACCUMULATION 9 
ANO!R4 ,BUT IT IS ! UNKN[N QUANTITY ( TOTAL CAPITAL & ITS RELATION TO 
TOTAL SURPLUS-VALUE :I* DET]M9E ! =TUNES ( CAPITALISM AS A :OLE4 ,?IS 
IMPLIES ?AT SOME NATIONS WILL EXP]I5CE A G5]AL %ORTAGE ( 
SURPLUS VALUE 9 ! P>TICUL> =M ( A %ORTAGE ( 9VE/M5T 
FUNDS1 :ILE O!R NATIONS MAY EXP]I5CE ! SAME SITUATION AS AN 
0ABUNDANCE0 ( UNREALIZABLE SURPLUS VALUE ,BUT ! PECULI>ITIES ( 
! DI/RIBUTION ( SURPLUS-VALUE DO NOT AFFECT ITS QUANTITATIVE RELATIONS TO 
TOTAL CAPITAL4 ,9 ANY CASE1 UNREALIZABLE SURPLUS-VALUE CEASES TO BE 
SURPLUS-VALUE1 SO ?AT ! LACK ( PR(ITABILITY BECOMES A G5]AL 
PH5OM5ON4 

,IT IS NOT ?AT A DISPROPORTIONALITY ( ! M>KET SUPPLY & DEM& ISSUES 
9 ! SIMULTANE\S 9ABILITY TO SELL & BUY4 ,AN ACTUAL %ORTAGE ( 
SURPLUS-VALUE CREATES ?IS DISPROPORTIONALITY IF CAPITALISM AS A :OLE 
C\LD DEVELOP FA/] ?AN IT ACTUALLY DOES1 SURPLUS VALUE W\LD POSSIBLY BE 
CONV]TIBLE 9TO ADDITIONAL CAPITAL4 ,YET EV5 IF ! UNSALABLE P>T ( ! 
SURPLUS-LABOR C\LD BE FULLY REALIZ$ 9 ADDITIONAL CAPITAL1 ! RATE ( PR(IT 
W\LD NEV]!LESS FALL ) ! RIS+ ORGANIC COMPOSITION ( CAPITAL1 :I* 
W\LD LEAD ONCE MORE TO OV]PRODUCTION & ! TRANS=MATION ( A PRODUCTION 
PROBLEM 9TO A REALIZATION PROBLEM4 

,FROM A ,M>XIAN PO9T ( VIEW1 ! V>I\S EXI/+ !ORIES ( CRISES :I* 
CATEGORIZE ! PROBLEM AS EI!R UND]CONSUMPTION OR ! OV]PRODUCTION ( 
COMMODITIES - ! ONE IMPLY+ ! O!R & BO? 9VOLV+ ! 
REALIZATION PROBLEM - ONLY DESCRIBE ! EXT]NALS ( ! CAPITALI/ 
CRISIS ME*ANISM4 ,! P]IODIC OV]PRODUCTION ( ! MEANS ( PRODUCTION & ( 
COMMODITIES PREV5TS ! REALIZATION ( SURPLUS-VALUE IS1 9 ,M>X'S VIEW1 
ONLY AN OV]PRODUCTION ( MEANS ( PRODUCTION ?AT CANNOT S]VE AS CAPITAL1 
?AT IS1 CANNOT S]VE = ! EXPLOITATION ( LABOR AT A GIV5 DEGREE ( 
EXPLOITATION4 ,& ?\< ! OV]PRODUCTION ( COMMODITIES IS AN OBVI\S FACT1 
,M>X'S !ORY IS NOT A !ORY ( UND]CONSUMPTION4 ,ACCORD+ TO ,M>X1 
CAPITALI/ PRODUCTION IS1 & MU/ ALWAYS BE1 AT V>IANCE ) ! CONSUM+ 
P[] IT BR+S =? - 9 P]IODS ( PROSP]ITY AS WELL AS 9 P]IODS ( 
DEPRESSION4 

,IT IS NOT A 0CONSUM+ P[]0 GR[+ 9 PROPORTION TO 
PRODUCTION :I* EXPLA9S ! 9CREAS+ SOCIAL DEM& = CONSUMPTION GOODS 9 
! UPSW+ P]IOD ( CAPITAL DEVELOPM5T2 IT IS M]ELY ! GREAT] NUMB] ( 
WORK]S N[ EMPLOY$4 ,9 P]IODS ( EXPANSION1 PRICES RISE FA/] ?AN WAGES 
& R$UCE 9DIVIDUAL WORK]S' 9COMES :ILE 5L>G+ ! 9COME ( ! 
CLASS1 OR 9CREASE 9DIVIDUAL 9COMES ONLY 9 SO F> AS !Y >E BAS$ ON 
/EADY & PROLONG$ WORK4 ,FUR!RMORE1 IT IS NOT ! RIS+ CONSUMPTION ( ! 
NON-WORK+ POPULATION :I* N>R[S ! GAP BETWE5 SOCIAL PRODUCTION & 
SOCIAL CONSUMPTION1 S9CE ! 9CREAS+ SURPLUS-VALUE IS N[ L>GELY 
RE9VE/$4 ,IT IS ! RAPIDLY 9CREAS+ DEM& = PRODUCTION GOODS :I* 
EXPLA9S ! 9CREAS+ DEM& = CONSUMPTION GOODS & ALLOCATES SOCIAL LABOR 
ACCORD+LY4 ,AT ! BEG9N+ ( A DEPRESSION1 PRICES FALL FA/] ?AN WAGES1 
& ! 9DIVIDUAL WORK]'S LOT IMPROVES :ILE ?AT ( HIS CLASS1 :I* 
EMBRACES ! UNEMPLOY$1 WORS5S4 ,) ! DEVELOPM5T ( A NEW /ABILITY 
)9 ! DEPRESSION1 ! SITUATION *ANGES & EV5 ! EMPLOY$ 
WORK]'S WAGES DECREASE 9 T]MS ( BUY+ P[]4 ,BUT ?IS IS ALREADY N 
ASPECT ( A NEW UPW>D TR5D4 ,SIMIL>LY1 AT ! HEI<T ( PROSP]ITY1 
WAGE-9CREASES :I* KEEP PACE )1 OR EV5 \TRUN1 ! RISE 9 PRICES1 >E 
L>GELY A SIGN ( ! APPROA*+ CRISIS4 ,9 %ORT1 ! BUS9ESS-CYCLE IS NOT 
CAUS$ BY V>IATIONS 9 SOCIAL CONSUM+ P[]1 P>TICUL>LY NOT 9 ?AT ( ! 
WORK]S2 RA!R ! CYCLE DET]M9ES !SE V>IATIONS4 

,ASIDE FROM !SE CONSID]ATIONS1 H[EV]1 ! ULTIMATE CAUSE ( ALL REAL 
CRISES 0REMA9S ! POV]TY & RE/RICT$ CONSUMPTION ( ! MASSES AS 
COMP>$ TO ! T5D5CY ( CAPITALI/ PRODUCTION TO DEVELOP ! PRODUCTIVE 
=CES 9 SU* A WAY ?AT ONLY ! ABSOLUTE P[] ( CONSUMPTION ( ! 5TIRE 
SOCIETY W\LD BE !IR LIMIT40.<#a#a.> ,= 9 VIEW ( ACTUAL PRODUCTIVE CAPACITY & ! 
RE/RICT$ CONSUM+ P[] ( ! BROAD MASSES1 ! OBS]VABLE CAUSE 
( CRISIS IS ! OBVI\S 9ABILITY TO CONSUME :AT HAS BE5 PRODUC$4 ,?AT ?IS 
IS A CONDITION ( CAPITALI/ EXI/5CE DOES NOT ALT] ! FACT ?AT IT IS ALSO 
A CONTRADICTION BETWE5 PRODUCTION & CONSUMPTION4 ,9 ! REAL CRISIS1 AP>T 
FROM ! HIDD5 CRISIS-ME*ANISM ( CAPITAL PRODUCTION1 ! MASS ( UNSALABLE 
COMMODITIES FACES A /EADILY DECL9+ BUY+-P[] & A PRODUCTIVE CAPACITY 
DESIGN$ = AN 9CREAS+ DEM&4 ,9 CAPITALI/ !ORY1 ?IS MEANS ?AT DEM& 
DOES NOT EQUAL SUPPLY 9 T]MS ( PRICES1 :I* WILL LEAD TO M>KET *ANGES 9 
PRICE RELATIONS ?AT WILL EV5TUALLY CLOSE ! GAP4 ,= ,M>X1 H[EV]1 ! GAP 
CAN ONLY BE TEMPOR>ILY CLOS$ BY AN 5HANC$ CAPITAL ACCUMULATION1 :I* !N 
5L>GES ! P]MAN5T GAP BETWE5 PRODUCTION & CONSUMPTION4 ,9 HIS VIEW1 ! 
CRISIS CANNOT BE ELIM9AT$ BY A R$UCTION ( PRODUCTION1 OR BY AN 9CREASE ( 
CONSUMPTION1 OR BY ! CO-ORD9ATION ( BO?4 ,TO DO ! LA/ W\LD BE 
EQUIVAL5T TO 5D+ ! CAPITALI/ SY/EM ITSELF4 ,NEI!R UND]CONSUMPTION NOR 
OV]PRODUCTIONS >E SELF-EXPLANATORY4 ,!Y CAN BE UND]/OOD ONLY 9 ! 
CONTEXT ( CAPITAL PRODUCTION4 

#a4 ,S4 ,KUZNETS1 ,CAPITAL 9 ! ,AM]ICAN ,ECONOMY1 ,NEW ,YORK1 #aifa P4 #cc 

#b4 ,IBID41 P4 #f#f4 

#c4 ,IBID41 P4 #c#i#d4 

#d4 ,FIR/ ,NATIONAL ,CITY ,BANK1 ,ECONOMIC ,LETT]1 ,NEW ,YORK1 ,JUNE1 #a#i#f#c4 

#e4 ,IBID41 ,AUGU/1 #a#i#f4 

#f4 ,CAPITAL 9 ! ,AM]ICAN ,ECONOMY1 P4 #f#h4 

#g4 ,IBID41 P4 #c#i#e4 

#h4 ,J4 ,M4 ,GILLMAN1 ,! ,FALL+ ,RATE ( ,PR(IT1 ,NEW ,YORK1 #a#i#f#c1 P4 #a#b#f4 

#i4 ,IBID41 P4 #f#a4 

#a4 ,CAPITAL1 ,VOL4 ,I1 P4 #a#c4 

#a#a4 ,CAPITAL1 ,VOL4 ,I,I,I1 P4 #e#f#h4 

,FROM 3 ,M>XI/S4ORG4 

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

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