,! ,!ORY ( ! ,COLLAPSE ( ,CAPITALISM 

,PEOPLE 3 

,AU?OR 3 ,ANTON ,PANNEKOEK 

,TEXT 3 

,FIR/ ,PUBLI%$3 UNSIGN$ >TICLE 9 ,RATEKORRESPOND5Z1 ,JUNE #a#i#c#d2 
,TRANSLAT$3 BY ,ADAM ,BUICK 9 ,CAPITAL & ,CLASS1 ,SPR+ #a#i#g#g2 
,H,T,M,L ,M>KUP3 ,&Y ,BLUND54 

,! IDEA ?AT CAPITALISM WAS 9 A F9AL1 ITS MORTAL1 CRISIS DOM9AT$ ! 
FIR/ YE>S AFT] ! ,RUSSIAN REVOLUTION4 ,:5 ! REVOLUTION>Y WORK]S' 
MOVEM5T 9 ,WE/]N ,EUROPE ABAT$1 ! ,?IRD ,9T]NATIONAL GAVE UP ?IS !ORY1 
BUT IT WAS MA9TA9$ BY ! OPPOSITION MOVEM5T1 ! ,K,A,P,D1 :I* ADOPT$ ! 
!ORY ( ! MORTAL CRISIS ( CAPITALISM AS ! DI/+UI%+ FEATURE BETWE5 
! REVOLUTION>Y & RE=MI/ PO9TS ( VIEW4 ,! QUE/ION ( ! NECESSITY 
& ! 9EVITABILITY ( ! COLLAPSE ( CAPITALISM1 & ! WAY 9 :I* ?IS 
IS TO BE UND]/OOD1 IS ! MO/ IMPORTANT ( ALL QUE/IONS = ! WORK+ 
CLASS & ITS UND]/&+ & TACTICS4 ,ROSA ,LUXEMBURG HAD ALREADY DEALT ) 
IT 9 #aiab 9 H] BOOK ,! ,ACCUMULATION ( ,CAPITAL1 :]E %E CAME 
TO ! CONCLUSION ?AT 9 A PURE1 CLOS$ CAPITALI/ SY/EM ! SURPLUS VALUE 
NE$$ = ACCUMULATION C\LD NOT BE REALIZ$ & ?AT !RE=E ! CON/ANT 
EXPANSION ( CAPITALISM ?R\< ! TRADE ) NON-CAPITALI/ C\NTRIES WAS 
NECESS>Y4 ,?IS MEANS ?AT CAPITALISM W\LD COLLAPSE1 ?AT IT W\LD NOT BE ABLE 
TO CONT9UE TO EXI/ ANY LONG] AS AN ECONOMIC SY/EM1 :5 ?IS EXPANSION WAS 
NO LONG] POSSIBLE4 ,IT IS ?IS !ORY1 :I* WAS *ALL5G$ AS SOON AS ! BOOK 
WAS PUBLI%$ FROM DIFF]5T SIDES1 :I* ! ,K,A,P,D HAS (T5 REF]R$ TO4 ,A 
QUITE DIFF]5T !ORY WAS DEVELOP$ 9 #aibi BY ,H5RYK ,GROSSMANN 9 HIS WORK 
,DAS ,AKKUMULATIONS UND ,ZUSAMM5BRU*SGESETZ DES ,KAPITALI/IS*5 
,SY/EMS 7,! ,LAW ( ,ACCUMULATION & ,COLLAPSE ( ! ,CAPITALI/ ,SY/EM74 
,GROSSMAN H]E D$UCES ?AT CAPITALISM MU/ COLLAPSE = PURELY ECONOMIC REASONS 
9 ! S5SE ?AT1 9DEP5D5TLY ( HUMAN 9T]V5TION1 REVOLUTIONS1 ETC41 IT 
W\LD BE IMPOSSIBLE = IT TO CONT9UE TO EXI/ AS AN ECONOMIC SY/EM4 ,! 
SEV]E & LA/+ CRISIS :I* BEGAN 9 #aic HAS C]TA9LY PREP>$ 
PEOPLE'S M9DS = SU* A !ORY ( MORTAL CRISIS4 ,! REC5TLY PUBLI%$ 
MANIFE/O ( ! ,UNIT$ ,WORK]S ( ,AM]ICA MAKES ,GROSSMAN'S 
!ORY ! !ORETICAL BASIS = A NEW DIRECTION = ! WORK]S' 
MOVEM5T4 ,IT IS !RE=E NECESS>Y TO EXAM9E IT CRITICALLY4 ,BUT TO DO ?IS A 
PRELIM9>Y EXPLANATION ( ,M>X'S POSITION ON ?IS QUE/ION & ! PA/ 
DISCUSSIONS CONNECT$ ) IT CANNOT BE AVOID$4 

,M>X & ,ROSA ,LUXEMBURG 

,9 ! SECOND P>T ( ,CAPITAL ,M>X DEALT ) ! 
G5]AL CONDITIONS ( CAPITALI/ PRODUCTION AS A :OLE4 ,9 ! AB/RACT CASE ( 
PURE CAPITALI/ PRODUCTION ALL PRODUCTION IS C>RI$ ON = ! M>KET1 ALL 
PRODUCTS >E B\<T & SOLD AS COMMODITIES4 ,! VALUE ( ! MEANS ( 
PRODUCTION IS PASS$ ON TO ! PRODUCT & A NEW VALUE IS ADD$ BY LABOR4 ,?IS 
NEW VALUE IS BROK5 D[N 9TO TWO P>TS3 ! VALUE ( ! LABOR P[]1 :I* IS 
PAID AS WAGES & US$ BY ! WORK]S TO BUY MEANS ( SUBSI/5CE1 & ! 
REMA9D]1 ! SURPLUS VALUE1 :I* GOES TO ! CAPITALI/4 ,:]E ! SURPLUS 
VALUE IS US$ = MEANS ( SUBSI/5CE & LUXURY GOODS !N !RE IS SIMPLE 
REPRODUCTION2 :]E A P>T ( IT IS ACCUMULAT$ AS NEW CAPITAL !RE IS 
REPRODUCTION ON AN EXT5D$ SCALE4 

,= ! CAPITALI/S TO F9D ON ! M>KET ! MEANS ( PRODUCTION 
!Y NE$ & = ! WORK]S TO LIKEWISE F9D ! MEANS ( SUBSI/5CE !Y 
NE$1 A GIV5 PROPORTION MU/ EXI/ BETWE5 ! V>I\S BRAN*ES ( PRODUCTION4 
,A MA!MATICIAN W\LD EASILY EXPRESS ?IS 9 ALGEBRAIC =MULAS4 ,M>X GIVES 
9/EAD NUM]ICAL EXAMPLES TO EXPRESS !SE PROPORTIONS1 MAK+ UP CASES ) 
SELECT$ FIGURES1 TO S]VE AS ILLU/RATIONS4 ,HE DI/+UI%ES TWO SPH]ES1 TWO 
MA9 DEP>TM5TS ( PRODUCTION3 ! MEANS ( PRODUCTION DEP>TM5T 7,I7 & ! 
MEANS ( CONSUMPTION DEP>TM5T 7,I,I74 ,9 EA* ( !SE DEP>TM5TS A GIV5 VALUE 
( ! MEANS ( PRODUCTION US$ IS TRANSF]R$ TO ! PRODUCT )\T UND]GO+ 
ANY *ANGE 7CON/ANT CAPITAL1 C72 A GIV5 P>T ( ! NEWLY ADD$ VALUE IS US$ 
TO PAY = LABOR-P[] 7V>IABLE CAPITAL1 V71 ! O!R P>T BE+ ! SURPLUS 
VALUE 7S74 ,IF IT IS ASSUM$ = ! NUM]ICAL EXAMPLE ?AT ! CON/ANT CAPITAL 
IS F\R TIMES GREAT] ?AN ! V>IABLE CAPITAL 7A FIGURE :I* RISES ) 
TE*NICAL PROGRESS7 & ?AT ! SURPLUS VALUE IS EQUAL TO ! V>IABLE CAPITAL 
7?IS RATIO IS DET]M9$ BY ! RATE ( EXPLOITATION71 !N1 9 ! CASE ( 
SIMPLE REPRODUCTION1 ! FOLL[+ FIGURES SATISFY !SE CONDITIONS3 

,I#dC "4 #aV "4 #aS"7#f 7PRODUCT7,I,I#bC "4 #eV "4 #eS"7#c 7PRODUCT7 

,EA* ( !SE L9ES SATISFIES ! CONDITIONS4 ,S9CE V"4S1 :I* >E US$ AS 
MEANS ( CONSUMPTION1 >E TOGE!R EQUAL TO A HALF ( C1 ! VALUE ( ! MEANS 
( PRODUCTION1 ,DEP>TM5T ,I,I MU/ PRODUCE A VALUE EQUAL TO A HALF ! VALUE 
PRODUC$ 9 ,DEP>TM5T ,I4 ,!N ! EXACT PROPORTION IS F\ND3 ! MEANS ( 
PRODUCTION PRODUC$ 7#f7 >E JU/ ! AM\NT NE$$ = ! NEXT TURNOV] 
P]IOD3 #dC = ,DEP>TM5T ,I & #bC = ,DEP>TM5T ,I,I2 & ! MEANS ( 
SUBSI/5CE PRODUC$ 9 ,DEP>TM5T ,I,I 7#c7 >E EXACTLY :AT MU/ BE SUPPLI$ 
= ! WORK]S 7#a"4#e7 & ! CAPITALI/S 7#a"4#e74 

,TO ILLU/RATE 9 A SIMIL> WAY ! CASE ( CAPITAL ACCUMULATION ! P>T ( 
SURPLUS VALUE GO+ TO ACCUMULATION MU/ BE 9DICAT$2 ?IS P>T IS ADD$ TO ! 
CAPITAL 9 ! FOLL[+ YE> 7= REASONS ( SIMPLICITY A PRODUCTION P]IOD ( 
A YE> IS ASSUM$ EA* TIME7 SO ?AT A L>G] CAPITAL IS !N EMPLOY$ 9 EA* 
DEP>TM5T4 ,WE WILL ASSUME 9 \R EXAMPLE ?AT HALF ! SURPLUS VALUE IS 
ACCUMULAT$ 7& SO US$ = NEW C & NEW V7 & ?AT ! O!R HALF IS 
CONSUM$ 7CONSUMPTION1 K74 ,! CALCULATION ( ! PROPORTION BETWE5 ,DEP>TM5T 
,I & ,DEP>TM5T ,I,I BECOMES A LITTLE MORE COMPLICAT$ BUT CAN ( C\RSE /ILL BE 
F\ND4 ,IT TURNS \T ?AT1 ON ! ASSUMPTIONS GIV51 ?IS PROPORTION IS #aa 3 #d1 
AS IS %[N 9 ! FOLL[+ FIGURES3 

,I #d#dC "4 #a#aV "4 #a#aS 7"7 #e#eK "4 #e#eACC 7"7 #d#dC "4 #a#aV77 "7 #ff ,I,I #a#fC "4   #dV "4   #dS 7"7 #bK "4 #bACC 7"7 #a#fC "4 #dV77 "7 #bd  

,! CAPITALI/S NE$ #d#d"4#a#f = ! R5EWAL & #d#d"4#a#f = ! EXT5SION 
( !IR MEANS ( PRODUCTION1 & 9 FACT !Y F9D #ff MEANS ( PRODUCTION ON 
! M>KET4 ,! CAPITALI/S NE$ #e#e"4#b = !IR CONSUMPTION1 ! ORIG9AL 
WORK]S NE$ #a#a"4#d & ! NEWLY 5GAG$ WORK]S #a#a"4#d AS MEANS ( 
SUBSI/5CE2 :I* TOGE!R IS EQUAL TO ! #bd 9 FACT PRODUC$ AS MEANS ( 
SUBSI/5CE4 ,9 ! FOLL[+ YE> ALL ! FIGURES >E 9CREAS$ BY #a P] 
C5T3 

,I#d#h#dC "4 #a#b#aV "4 #a#b#aS 7"7 #f#eK "4 #d#h#dC "4 #a#b#aV7 "7 #gbf ,I,I #a#g#fC "4 #d#dV "4 #d#dS 7"7 #b#bK "4 #a#g#fC "4 #d#dV7 "7 #bfd  

,PRODUCTION CAN ?US CONT9UE 9CREAS+ EA* YE> 9 ! SAME PROPORTION4 
,?IS IS ( C\RSE A GROSSLY OV]SIMPLIFI$ EXAMPLE4 ,IT C\LD BE MADE MORE 
COMPLICAT$1 & ?US NE>] TO REALITY1 IF IT IS ASSUM$ ?AT !RE >E 
DIFF]5T COMPOSITIONS ( CAPITAL 7! RATIO C3V7 9 ! TWO DEP>TM5TS1 OR 
DIFF]5T RATES ( ACCUMULATION OR IF ! RATIO C3V IS MADE TO GR[ GRADUALLY1 
SO *ANG+ ! PROPORTION BETWE5 ,DEP>TM5T ,I & ,DEP>TM5T ,I,I EA* YE>4 ,9 
ALL !SE CASES ! CALCULATION BECOMES MORE COMPLICAT$1 BUT IT CAN ALWAYS BE 
DONE1 S9CE AN UNKN[N FIGURE -- ! PROPORTION ( ,DEP>TM5T ,I TO 
,DEP>TM5T ,I,I -- CAN ALWAYS BE CALCULAT$ TO SATISFY ! CONDITION ?AT 
DEM& & SUPPLY CO9CIDE4 

,EXAMPLES ( ?IS CAN BE F\ND 9 ! LIT]ATURE4 ,9 ! REAL WORLD1 ( 
C\RSE1 COMPLETE EQUILIBRIUM OV] A P]IOD IS NEV] F\ND2 COMMODITIES >E SOLD 
= MONEY & MONEY IS ONLY US$ LAT] TO BUY SOME?+ ELSE SO ?AT HO>DS >E 
=M$ :I* ACT AS A BUFF] & A RES]VE4 ,& COMMODITIES REMA9 UNSOLD2 & 
!RE IS TRADE ) NON-CAPITALI/ >EAS4 ,BUT ! ESS5TIAL1 IMPORTANT PO9T IS 
SE5 CLE>LY FROM !SE REPRODUCTION S*EMES3 = PRODUCTION TO EXP& & 
/EADILY PROGRESS GIV5 PROPORTIONS MU/ EXI/ BETWE5 ! PRODUCTIVE SECTORS2 
9 PRACTICE !SE PROPORTIONS >E APPROXIMATELY REALIZ$2 !Y DEP5D ON ! 
FOLL[+ FACTORS3 ! ORGANIC COMPOSITION ( CAPITAL1 ! RATE ( EXPLOITATION1 
& ! PROPORTION ( SURPLUS VALUE :I* IS ACCUMULAT$4 

,M>X DID NOT HAVE ! *ANCE TO PROVIDE A C>EFULLY PREP>$ PRES5TATION ( 
!SE EXAMPLES 7SEE ,5GELS' 9TRODUCTION TO ! SECOND VOLUME ( 
,CAPITAL74 ,?IS IS NO D\BT :Y ,ROSA ,LUXEMBURG BELIEV$ ?AT %E HAD 
DISCOV]$ AN OMISSION H]E1 A PROBLEM :I* ,M>X HAD OV]LOOK$ & SO LEFT 
UNSOLV$ & :OSE SOLUTION %E HAD WORK$ \T 9 H] BOOK ,! 
,ACCUMULATION ( ,CAPITAL 7#a#i#a#b74 ,! PROBLEM :I* SEEM$ TO HAVE BE5 
LEFT OP5 WAS :O WAS TO BUY FROM EA* O!R MORE & MORE MEANS ( PRODUCTION 
& MEANS ( SUBSI/5CE ?IS W\LD BE A PO9TLESS CIRCUL> MOVEM5T FROM :I* 
NO?+ W\LD RESULT4 ,! SOLUTION W\LD LIE 9 ! APPE>ANCE ( BUY]S 
SITUAT$ \TSIDE CAPITALISM1 =EIGN OV]SEAS M>KETS :OSE CONQUE/ W\LD 
!RE=E BE A VITAL QUE/ION = CAPITALISM4 ,?IS W\LD BE ! ECONOMIC BASIS 
( IMP]IALISM4 

,BUT FROM :AT WE HAVE SAID BE=E IT IS CLE> ?AT ,ROSA ,LUXEMBURG HAS H]SELF 
MADE A MI/AKE H]E4 ,9 ! S*EMA US$ AS ! EXAMPLE IT CAN BE CLE>LY SE5 
?AT ALL ! PRODUCTS >E SOLD )9 CAPITALISM ITSELF4 ,NOT ONLY ! P>T ( 
! VALUE TRANSMITT$ 7#d#d"4#a#f7 BUT ALSO ! #d#d"4#a#f :I* CONTA9 ! SURPLUS 
VALUE ACCUMULAT$ >E BR\<T1 9 ! PHYSICAL =M ( MEANS ( PRODUCTION1 BY 
! CAPITALI/S :O WI% TO />T ! FOLL[+ YE> ) 9 TOTAL #ff MEANS ( 
PRODUCTION4 ,9 ! SAME WAY1 ! #a#a"4#d FROM SURPLUS VALUE IS 9 FACT B\<T BY 
! ADDITIONAL WORK]S4 ,NOR IS IT PO9TLESS3 TO PRODUCE1 TO SELL PRODUCTS TO 
EA* O!R1 TO CONSUME1 TO PRODUCE MORE IS ! :OLE ESS5CE ( CAPITALISM & 
SO ( M5'S LIFE 9 ?IS MODE ( PRODUCTION4 ,!RE IS NO UNSOLV$ PROBLEM 
H]E :I* ,M>X OV]LOOK$4 

,ROSA ,LUXEMBURG & ,OTTO ,BAU] 

,SOON AFT] ,ROSA ,LUXEMBURG'S BOOK WAS PUBLI%$ IT WAS CRITICIZ$ FROM 
DIFF]5T SIDES4 ,?US ,OTTO ,BAU] WROTE A CRITICISM 9 AN >TICLE 9 ! 
,NEUE ,ZEIT 7#g-#a#d ,M>* #a#i#a#c74 ,AS 9 ALL ! O!R CRITICISMS ,BAU] 
%[$ ?AT PRODUCTION & SALES DO CORRESPOND4 ,BUT HIS CRITICISM HAD ! 
SPECIAL FEATURE ?AT IT L9K$ ACCUMULATION TO POPULATION GR[?4 ,OTTO ,BAU] 
FIR/ ASSUMES A SOCIALI/ SOCIETY 9 :I* ! POPULATION GR[S EA* YE> BY 
FIVE P] C5T2 ! PRODUCTION ( MEANS ( SUBSI/5CE MU/ !RE=E GR[ 9 ! 
SAME PROPORTION & ! MEANS ( PRODUCTION MU/ 9CREASE1 BECAUSE ( TE*NICAL 
PROGRESS1 AT A FA/] RATE4 ,! SAME HAS TO HAPP5 UND] CAPITALISM BUT H]E 
?IS EXPANSION DOES NOT TAKE PLACE ?R\< PLANN$ REGULATION1 BUT ?R\< ! 
ACCUMULATION ( CAPITAL4 ,OTTO ,BAU] PROVIDES AS A NUM]ICAL EXAMPLE A S*EMA 
:I* SATISFIES !SE CONDITIONS 9 ! SIMPLE/ WAY3 AN ANNUAL GR[? ( 
V>IABLE CAPITAL ( FIVE P] C5T & ( CON/ANT CAPITAL ( T5 P] C5T & A 
RATE ( EXPLOITATION ( #a P] C5T 7S "7 V74 ,!SE CONDITIONS !MSELVES 
DET]M9E ! %>E ( SURPLUS VALUE :I* IS CONSUM$ & ! %>E :I* MU/ 
BE ACCUMULAT$ 9 ORD] TO PRODUCE ! POSIT$ GR[? ( CAPITAL4 ,NO DIFFICULT 
CALCULATIONS >E NE$$ TO DRAW UP A S*EMA :I* PRODUCES ! EXACT GR[? FROM 
YE> TO YE>3 

,YE> #a #b1C "4 #a1V "4 #a1S 7"7 #b1C "4 #e1V "4 #g#e1K7 ,YE> #b #b#b1C "4 #a#e1C "4 #a#e1S 7"7 #b#b1C "4 #e1#b#eV "4 #g#g1#g#eK7 ,YE> #c #b#d#b1C "4 #a#a1#b#eV "4 #a#a1#b#eS 7"7 #b#d1#bC "4 #e1#e#a#bV "4 #h1#e#c#hK7  

,BAU] CONT9UES HIS S*EMA = F\R YE>S & ALSO CALCULATES ! SEP>ATE 
FIGURES = ,DEP>TM5TS ,I & ,I,I4 ,?IS WAS SUFFICI5T = ! PURPOSE ( %[+ 
?AT NO PROBLEM 9 ,ROSA ,LUXEMBURG'S S5SE EXI/$4 ,BUT ! *>ACT] ( 
?IS CRITICISM WAS ITSELF B\ND TO CALL =? CRITICISM4 ,ITS BASIC IDEA IS WELL 
BR\<T \T BY ,BAU]'S 9TRODUCTION ( POPULATION GR[? 9 A SOCIALI/ 
SOCIETY4 ,CAPITALISM !REBY APPE>S AS AN UNPLANN$ SOCIALISM1 AS A WILD & 
KICK+ FOAL ?AT HAS NOT YET BE5 BROK5 9 & :I* ONLY NE$S TO BE TAM$ BY 
! H&S ( ! SOCIALI/ TRA9]4 ,ACCUMULATION H]E S]VES ONLY TO 5L>GE 
PRODUCTION AS REQUIR$ BY POPULATION GR[?1 JU/ AS CAPITALISM HAS ! G5]AL 
FUNCTION ( PROVID+ MANK9D ) MEANS ( SUBSI/5CE2 BUT1 BECAUSE ( ! 
LACK ( PLANN+1 BO? !SE FUNCTIONS >E C>RI$ \T BADLY & ]RATICALLY1 
SOMETIMES PROVID+ TOO MU*1 SOMETIMES TOO LITTLE1 & CAUS+ CATA/ROPHES4 ,A 
G5TLE GR[? ( POPULATION ( #e P] C5T A YE> MI<T WELL SUIT A SOCIALI/ 
SOCIETY 9 :I* ALL MANK9D WAS NEATLY L9$ UP4 ,BUT = CAPITALISM1 AS IT IS 
& WAS1 ?IS IS AN 9APPROPRIATE EXAMPLE4 ,CAPITALISM'S :OLE HI/ORY HAS 
BE5 A RU% =W>D1 A VIOL5T EXPANSION F> BEYOND ! LIMITS ( POPULATION 
GR[?4 ,! DRIV+ =CE HAS BE5 ! URGE TO ACCUMULATION2 ! GREATE/ 
POSSIBLE AM\NT ( SURPLUS VALUE HAS BE5 9VE/$ AS NEW CAPITAL &1 TO SET IT 
9 MOTION1 MORE & MORE SECTIONS ( ! POPULATION HAVE BE5 DRAWN 9TO ! 
PROCESS4 ,!RE WAS EV51 & !RE /ILL IS1 A L>GE SURPLUS ( WORK]S :O 
REMA9 \TSIDE OR HALF \TSIDE AS A RES]VE1 KEPT READY TO S]VE ! NE$ TO SET 
9 MOTION ! ACCUMULAT$ CAPITAL1 BE+ DRAWN 9 OR REJECT$ AS REQUIR$ BY 
?IS NE$4 ,?IS ESS5TIAL & BASIC FEATURE ( CAPITALISM WAS COMPLETELY IGNOR$ 
9 ,BAU]'S ANALYSIS4 

,IT WAS OBVI\S ?AT ,ROSA ,LUXEMBURG W\LD TAKE ?IS AS ! T>GET = H] 
ANTI-CRITIQUE4 ,9 ANSW] TO ! PRO( ?AT !RE WAS NO PROBLEM ( OMISSION 9 
,M>X'S S*EMATA1 %E C\LD BR+ =W>D NO?+ MU* ELSE ?AN ! 
SC(F+ DECL>ATION ?AT EV]Y?+ CAN BE MADE TO WORK BEAUTIFULLY 9 
>TIFICIAL EXAMPLES4 ,BUT MAK+ POPULATION GR[? ! REGULATOR ( ACCUMULATION 
WAS SO CONTR>Y TO ! SPIRIT ( ,M>XIAN TEA*+ ?AT ! SUB-TITLE ( H] 
ANTI-CRITIQUE 0,:AT ! ,EPIGONES HAVE DONE TO ,M>XIAN ,!ORY0 WAS 
?IS TIME QUITE SUITABLE4 ,IT WAS NOT A QUE/ION H]E 7AS IT WAS 9 ,ROSA 
,LUXEMBURG'S [N CASE7 ( A SIMPLE SCI5TIFIC MI/AKE2 ,BAU]'S 
MI/AKE REFLECT$ ! PRACTICAL POLITICAL PO9T ( VIEW ( ! ,SOCIAL ,DEMOCRATS 
( ?AT TIME4 ,!Y FELT !MSELVES TO BE ! FUTURE /ATESM5 :O W\LD TAKE 
OV] FROM ! CURR5T RUL+ POLITICIANS & C>RY ?R\< ! ORGANIZATION ( 
PRODUCTION2 !Y !RE=E DID NOT SEE CAPITALISM AS ! COMPLETE OPPOSITE TO 
! PROLET>IAN DICTATOR%IP TO BE E/ABLI%$ BY REVOLUTION1 BUT RA!R AS A 
MODE ( PRODUC+ MEANS ( SUBSI/5CE ?AT C\LD BE IMPROV$ & HAD NOT YET 
BE5 BR\<T UND] CONTROL4 

,GROSSMAN'S REPRODUCTION S*EMA 

,H5RYK ,GROSSMAN L9K$ HIS REPRODUCTION S*EMA TO ?AT SET \T BY ,OTTO ,BAU]4 
,HE NOTIC$ ?AT IT IS NOT POSSIBLE TO CONT9UE IT 9DEF9ITELY )\T IT 9 
TIME COM+ UP AGA9/ CONTRADICTIONS4 ,?IS IS V]Y EASY TO SEE4 ,OTTO ,BAU] 
ASSUMES A CON/ANT CAPITAL ( #b1 :I* GR[S EA* YE> BY #a P] C5T & A 
V>IABLE CAPITAL ( #a1 :I* GR[S EA* YE> BY #e P] C5T1 ) ! RATE 
( SURPLUS VALUE BE+ ASSUM$ TO BE #a P] C5T1 I4E41 ! SURPLUS VALUE EA* 
YE> IS EQUAL TO ! V>IABLE CAPITAL4 ,9 ACCORDANCE ) ! LAWS ( 
MA!MATICS1 A SUM :I* 9CREASES EA* YE> BY #a P] C5T D\BLES ITSELF AFT] 
#g YE>S1 QUADRUPLES ITSELF AFT] #ad YE>S1 9CREASES T5 TIMES AFT] #bc YE>S 
& A HUNDR$ TIMES AFT] #df YE>S4 ,?US ! V>IABLE CAPITAL & ! SURPLUS 
VALUE :I* 9 ! FIR/ YE> W]E EA* EQUAL TO HALF ! CON/ANT CAPITAL >E 
AFT] #df YE>S ONLY EQUAL TO A TW5TIE? ( A CON/ANT CAPITAL :I* HAS GR[N 
5ORM\SLY OV] ! SAME P]IOD4 ,! SURPLUS VALUE IS !RE=E F> FROM 5\< 
TO 5SURE ! #a P] C5T ANNUAL GR[? ( CON/ANT CAPITAL4 

,?IS DOES NOT RESULT JU/ FROM ! RATES ( GR[? ( #a & #e P]C5T *OS5 
BY ,BAU]4 ,= 9 FACT UND] CAPITALISM SURPLUS VALUE 9CREASES LESS RAPIDLY ?AN 
CAPITAL4 ,IT IS A WELL-KN[N FACT ?AT1 BECAUSE ( ?IS1 ! RATE ( PR(IT MU/ 
CONT9UALLY FALL ) ! DEVELOPM5T ( CAPITALISM4 ,M>X DEVOT$ MANY *APT]S 
TO ?IS FALL 9 ! RATE ( PR(IT4 ,IF ! RATE ( PR(IT FALLS TO #e P] C5T 
! CAPITAL CAN NO LONG] BE 9CREAS$ BY #a P] C5T1 = ! 9CREASE 9 
CAPITAL \T ( ACCUMULAT$ SURPLUS VALUE IS NECESS>ILY SMALL] ?AN ! SURPLUS 
VALUE ITSELF4 ,! RATE ( ACCUMULATION EVID5TLY ?US HAS ! RATE ( PR(IT AS 
ITS HI<] LIMIT 7SEE ,M>X1 ,CAPITAL1 ,VOLUME ,I,I,I1 P4 #b#c#f1 :]E IT 
IS /AT$ ?AT 0! RATE ( ACCUMULATION FALLS ) ! RATE ( 
PR(IT074 ,! USE ( A FIX$ FIGURE -- #a P] C5T -- :I* WAS 
ACCEPTABLE = A P]IOD ( A FEW YE>S AS 9 ,BAU]1 BECOMES UNACCEPTABLE :5 
! REPRODUCTION S*EMA >E CONT9U$ OV] A LONG P]IOD4 

,YET ,GROSSMAN1 UNCONC]N$1 CONT9UES ,BAU]'S S*EMA YE> BY YE> & 
BELIEVES ?AT HE IS !REBY REPRODUC+ REAL CAPITALISM4 ,HE !N F9DS ! 
FOLL[+ FIGURES = CON/ANT & V>IABLE CAPITAL1 SURPLUS VALUE1 ! 
NECESS>Y ACCUMULATION & ! AM\NT REMA9+ = ! CONSUMPTION ( ! 
CAPITALI/S 7! FIGURES HAVE BE5 R\ND$ TO ! NE>E/ ?\S&73 

C V S ACCUMULATION K ,COMM5CEM5T    #b #a #a #b"4 #e"7 #be #ge ,AFT] #b YE>S #abbb #bec #bec #a#b#b"4#a#c"7#a#c#e #aah ,AFT] #c YE>S #cag #dab #dab #c#a#g"4#b#a"7#c#c#h #gd ,AFT] #cd YE>S #dfda #e #e #d#f#d"4#b#e"7#d#h#i #aa ,AFT] #ce YE>S #eaf #ebe #ebe #e#a"4#b#f"7#e#c#f -#a#a  

,AFT] #ba YE>S ! %>E ( SURPLUS VALUE REMA9+ = CONSUMPTION BEG9S TO 
DIM9I%2 9 ! #c#d? IT ALMO/ DISAPPE>S & 9 ! #c#e? IT IS EV5 NEGATIVE2 
! ,%YLOCK ( CON/ANT CAPITAL PITILESSLY DEM&S ITS P\ND ( FLE%1 IT WANTS 
TO GR[ AT #a P] C5T1 :ILE ! POOR CAPITALI/S GO HUNGRY & KEEP NO?+ 
= !IR [N CONSUMPTION4 

0,FROM ! #c#e? YE> !RE=E ACCUMULATION -- ON 
! BASIS ( ! EXI/+ TE*NICAL PROGRESS -- CANNOT KEEP UP ) ! 
PACE ( POPULATION GR[?4 ,ACCUMULATION W\LD BE TOO SMALL & !RE W\LD 
NECESS>ILY >ISE A RES]VE >MY :I* W\LD HAVE TO GR[ EA* YE>0 
7,GROSSMANN1 P4 #a#b#f74 

,9 SU* CIRCUM/ANCES ! CAPITALI/S DO NOT ?9K ( CONT9U+ PRODUCTION4 
,OR IF !Y DO1 !Y DON'T DO SO2 =1 9 VIEW ( ! DEFICIT ( #aa 9 
CAPITAL ACCUMULATION !Y W\LD HAVE TO R$UCE PRODUCTION4 7,9 FACT !Y W\LD 
HAVE HAD TO HAVE DONE SO BE=E 9 VIEW ( !IR CONSUMPTION EXP5SES74 ,A P>T 
( ! WORK]S !RE=E BECOME UNEMPLOY$2 !N A P>T ( ! CAPITAL BECOMES 
UNUS$ & ! SURPLUS VALUE PRODUC$ DECREASES2 ! MASS ( SURPLUS VALUE FALLS 
& A /ILL GREAT] DEFICIT APPE>S 9 ACCUMULATION1 ) A /ILL GREAT] 
9CREASE 9 UNEMPLOYM5T4 ,?IS1 !N1 IS ! ECONOMIC COLLAPSE ( CAPITALISM4 
,CAPITALISM BECOMES ECONOMICALLY IMPOSSIBLE4 ,?US DOES ,GROSSMANN SOLVE ! 
PROBLEM :I* HE HAD SET ON PAGE #g#i3 

0,H[1 9 :AT WAY1 CAN ACCUMULATION LEAD TO ! COLLAPSE 
( CAPITALISM80 

,H]E WE F9D PRES5T$ :AT 9 ! OLD] ,M>XI/ LIT]ATURE WAS ALWAYS 
TREAT$ AS A /UPID MISUND]/&+ ( OPPON5TS1 = :I* ! NAME '! 
BIG CRA%' WAS CURR5T4 ,)\T !RE BE+ A REVOLUTION>Y CLASS TO 
OV]COME & DISPOSSESS ! B\RGEOISIE1 ! 5D ( CAPITALISM COMES = PURELY 
ECONOMIC REASONS2 ! MA*9E NO LONG] WORKS1 IT CLOGS UP1 PRODUCTION HAS 
BECOME IMPOSSIBLE4 ,9 ,GROSSMANN'S WORDS3 

0444) ! PROGRESS ( CAPITAL ACCUMULATION ! :OLE 
ME*ANISM1 DESPITE P]IODIC 9T]RUPTIONS1 NECESS>ILY APPROA*ES NE>] & 
NE>] TO ITS 5D4444,! T5D5CY TO COLLAPSE !N W9S ! UPP] H& & MAKES 
ITSELF FELT ABSOLUTELY AS '! F9AL CRISIS'0 7P4 #a#d74 

&1 9 A LAT] PASSAGE3 

0444FROM \R ANALYSIS IT IS CLE> ?AT1 AL?\< ON \R 
ASSUMPTIONS OBJECTIVELY NECESS>Y & AL?\< ! MOM5T :5 IT WILL OCCUR CAN 
BE PRECISELY CALCULAT$1 ! COLLAPSE ( CAPITALISM NE$ NOT !RE=E RESULT 
AUTOMATICALLY BY ITSELF AT ! AWAIT$ MOM5T & !RE=E NE$ NOT BE WAIT$ 
= PURELY PASSIVELY0 7P4 #f#a74 

,9 ?IS PASSAGE1 :]E IT MI<T BE ?\<T = A MOM5T ?AT IT IS GO+ TO 
BE A QUE/ION ( ! ACTIVE ROLE ( ! PROLET>IAT AS AG5T ( ! REVOLUTION1 
,GROSSMANN HAS 9 M9D ONLY *ANGES 9 WAGES & WORK+ TIME :I* UPSET ! 
NUM]ICAL ASSUMPTIONS & ! RESULTS ( ! CALCULATION4 ,IT IS 9 ?IS S5SE 
?AT HE CONT9UES3 

0,IT ?US APPE>S ?AT ! IDEA ( A NECESS>Y COLLAPSE 
= OBJECTIVE REASONS IS NOT AT ALL 9 CONTRADICTION TO ! CLASS /RUGGLE2 
?AT1 ON ! CONTR>Y1 ! COLLAPSE1 DESPITE ITS OBJECTIVELY GIV5 NECESSITY1 
CAN BE WIDELY 9FLU5C$ BY ! LIV+ =CES ( CLASSES 9 /RUGGLE & LEAVES 
A C]TA9 M>G9 ( PLAY = ! ACTIVE 9T]V5TION ( CLASSES4 ,IT IS = ?IS 
PRECISE REASON ?AT 9 ,M>X ! :OLE ANALYSIS ( ! PROCESS ( REPRODUCTION 
LEADS TO ! CLASS /RUGGLE0 7P4#f#b74 

,! 0IT IS = ?IS PRECISE REASON0 IS RI*1 AS IF ! CLASS 
/RUGGLE MEANT = ,M>X ONLY ! /RUGGLE OV] WAGE CLAIMS & H\RS ( 
WORK4 

,LET US CONSID] A LITTLE CLOS] ! BASIS ( ?IS COLLAPSE4 ,ON :AT IS ! 
NECESS>Y GR[? ( CON/ANT CAPITAL BY #a P] C5T EA* TIME BAS$8 ,9 ! 
QUOTATION GIV5 ABOVE IT WAS /AT$ ?AT TE*NICAL PROGRESS 7! RATE ( 
POPULATION GR[? BE+ GIV57 PRESCRIBES A GIV5 ANNUAL GR[? ( CON/ANT 
CAPITAL4 ,SO IT C\LD !N BE SAID1 )\T ! DET\R ( ! PRODUCTION S*EMA3 
:5 ! RATE ( PR(IT BECOMES LESS ?AN ! RATE ( GR[? DEM&$ BY 
TE*NICAL PROGRESS !N CAPITALISM MU/ BREAK D[N4 ,LEAV+ ASIDE ! FACT ?AT 
?IS HAS NO?+ TO DO ) ,M>X1 :AT IS ?IS GR[? ( CAPITAL DEM&$ BY 
TE*NOLOGY8 ,TE*NICAL IMPROVEM5TS >E 9TRODUC$1 9 ! CONTEXT ( MUTUAL 
COMPETITION1 9 ORD] TO OBTA9 AN EXTRA PR(IT 7RELATIVE SURPLUS VALUE72 ! 
9TRODUCTION ( TE*NICAL IMPROVEM5TS IS H[EV] LIMIT$ BY ! F9ANCIAL 
RES\RCES AVAILABLE4 ,& EV]YBODY KN[S ?AT DOZ5S ( 9V5TIONS & TE*NICAL 
IMPROVEM5TS >E NOT 9TRODUC$ & >E (T5 DELIB]ATELY SUPPRESS$ BY ! 
5TREPR5EURS SO AS NOT TO DEVALUE ! EXI/+ TE*NICAL APP>ATUS4 ,! 
NECESSITY ( TE*NICAL PROGRESS DOES NOT ACT AS AN EXT]NAL =CE2 IT WORKS 
?R\< M51 & = !M NECESSITY IS NOT VALID BEYOND POSSIBILITY4 

,BUT LET US ADMIT ?AT ?IS IS CORRECT & ?AT1 AS A RESULT ( TE*NICAL 
PROGRESS1 CON/ANT CAPITAL HAS TO HAVE A V>Y+ PROPORTION1 AS 9 ! S*EMA3 
9 ! #c? YE> #c#a#g3#d#a#b1 9 ! #c#d? YE> #d#f#d#a3#e1 9 ! #c#e? YE> #e#a#f3#e#b#e1 
& 9 ! #c#f?1 #e#f#a#f3#e#e#a4 ,9 ! #c#e? YE> ! SURPLUS VALUE IS ONLY #e#b#e1 
& IS NOT 5\< = #e#a1 TO BE ADD$ TO CON/ANT CAPITAL & #b#f1 TO 
V>IABLE CAPITAL4 ,GROSSMANN LETS ! CON/ANT CAPITAL GR[ BY #e#a1 & 
RETA9S ONLY #a#e1 AS ! 9CREASE 9 V>IABLE CAPITAL -- #a#a1 TOO 
LITTLE6 ,HE SAYS ( ?IS3 

0#a#a1#e#i WORK]S 7\T ( #e#e#a17 REMA9 UNEMPLOY$2 ! 
RES]VE >MY BEG9S TO =M4 ,& BECAUSE ! :OLE ( ! WORK+ POPULATION 
DOES NOT 5T] ! PROCESS ( PRODUCTION1 ! :OLE AM\NT ( EXTRA CON/ANT 
CAPITAL 7#e#a1#e#f#c7 IS NOT NE$$ = ! PUR*ASE ( MEANS ( PRODUCTION4 ,IF A 
POPULATION ( #e#e#a1#e#h#d USES A CON/ANT CAPITAL ( #e1#f#a#f1#b1 !N A POPULATION ( 
#e#d1#g#e W\LD USE A CON/ANT CAPITAL ( ONLY #e1#d#i#i1#a#e4 ,!RE1 !RE=E1 
REMA9S AN EXCESS CAPITAL ( #a#a#g1#a#h#e )\T AN 9VE/M5T \TLET4 ,?US 
! S*EMA %[S A P]FECT EXAMPLE ( ! SITUATION ,M>X HAD 9 M9D :5 HE 
GAVE ! CORRESPOND+ P>T ( ! ?IRD VOLUME ( ,CAPITAL ! 
TITLE ',EXCESS ,CAPITAL & ,EXCESS ,POPULATION' 7P4 #a#a#f704 

,GROSSMANN HAS CLE>LY NOT NOTIC$ ?AT !SE #a#a1 BECOME UNEMPLOY$ ONLY 
BECAUSE1 9 A COMPLETE >BITR>Y FA%ION & )\T GIV+ ANY REASON1 HE MAKES 
! V>IABLE CAPITAL BE> ! :OLE DEFICIT1 :ILE LETT+ ! CON/ANT CAPITAL 
CALMLY GR[ BY #a P]C5T AS IF NO?+ WAS WRONG2 BUT :5 HE REALIZES ?AT 
!RE >E NO WORK]S = ALL !SE MA*9ES1 OR MORE CORRECTLY ?AT !RE IS NO 
MONEY TO PAY !IR WAGES1 HE PREF]S NOT TO 9/ALL !M & SO HAS TO LET ! 
CAPITAL LIE UNUS$4 ,IT IS ONLY ?R\< ?IS MI/AKE ?AT HE >RIVES AT A 
0P]FECT EXAMPLE0 ( A PH5OM5ON :I* APPE>S DUR+ ORD9>Y 
CAPITALI/ CRISES4 ,9 FACT ! 5TREPR5EURS CAN ONLY EXP& !IR PRODUCTION TO 
! EXT5T ?AT !IR CAPITAL IS 5\< = BO? MA*9]Y & WAGES COMB9$4 
,IF ! TOTAL SURPLUS VALUE IS TOO SMALL1 ?IS WILL BE DIVID$1 9 ACCORDANCE 
) ! ASSUM$ TE*NICAL CON/RA9T1 PROPORTIONATELY BETWE5 ! ELEM5TS ( 
CAPITAL2 ! CALCULATION %[S ?AT ( ! #e#b#e1#c#a#i SURPLUS VALUE1 #e1#d#i MU/ 
BE ADD$ TO CON/ANT CAPITAL & #b#d1#i#a TO V>IABLE CAPITAL 9 ORD] TO >RIVE 
AT ! CORRECT PROPORTION CORRESPOND+ TO TE*NICAL PROGRESS4 ,NOT #a#a1 BUT 
#a1#c#b#f WORK]S >E SET FREE & !RE IS NO QUE/ION ( EXCESS CAPITAL4 ,IF ! 
S*EMES IS CONT9U$ 9 ?IS CORRECT WAY1 9/EAD ( A CATA/ROPHIC ]UPTION 
!RE IS AN EXTREMELY SL[ 9CREASE 9 ! NUMB] ( WORK]S LAID (F4 

,BUT H[ CAN SOMEONE ATTRIBUTE ?IS ALLEG$ COLLAPSE TO ,M>X & PRODUCE1 
*APT] AFT] *APT]1 DOZ5S ( QUOTATIONS FROM ,M>X8 ,ALL !SE QUOTATIONS 9 
FACT RELATE TO ECONOMIC CRISES1 TO ! ALT]NAT+ CYCLE ( PROSP]ITY & 
DEPRESSION4 ,:ILE ! S*EMA HAS TO S]VE TO %[ A PR$ET]M9$ F9AL ECONOMIC 
COLLAPSE AFT] #ce YE>S1 WE READ TWO PAGES FUR!R ON ( 0! ,M>XIAN 
!ORY ( ! ECONOMIC CYCLE EXP\ND$ H]E0 7P4 #a#b#c74 

,GROSSMANN IS ONLY ABLE TO GIVE ! IMPRESSION ?AT HE IS PRES5T+ A !ORY 
( ,M>X'S BY CONT9UALLY SCATT]+ 9 ?IS WAY ?R\<\T HIS [N 
/ATEM5TS COMM5TS :I* ,M>X MADE ON P]IODIC CRISES4 ,BUT NO?+ AT ALL IS TO 
BE F\ND 9 ,M>X AB\T A F9AL COLLAPSE 9 L9E ) ,GROSSMANN'S S*EMA4 
,IT IS TRUE ?AT ,GROSSMANN QUOTES A C\PLE ( PASSAGES :I* DO NOT DEAL ) 
CRISES4 ,?US HE WRITES ON PAGE #b#f#c3 

0,IT APPE>S ?AT 'CAPITALI/ PRODUCTION MEETS 9 
! DEVELOPM5T ( ITS PRODUCTIVE =CES A B>RI]444' 7,M>X1 
,CAPITAL1 ,VOL4 ,I,I,I1 P4 #b#c#g704 

,BUT IF WE OP5 ,VOLUME ,I,I,I ( ,CAPITAL AT PAGE #bcg WE READ 
!RE3 

0,BUT ! MA9 ?+ AB\T !IR .<I4E41 ,RIC>DO & O!R 
ECONOMI/S.> HORROR ( ! FALL+ RATE ( PR(IT IS ! FEEL+ ?AT CAPITALI/ 
PRODUCTION MEETS 9 ! DEVELOPM5T ( ITS PRODUCTIVE =CES A B>RI]444 
0 

:I* IS SOME?+ QUITE DIFF]5T4 ,& ON PAGE #gi ,GROSSMANN GIVES ?IS 
QUOTATION FROM ,M>X AS PRO( ?AT EV5 ! WORD 0COLLAPSE0 COMES 
FROM ,M>X3 

0,?IS PROCESS W\LD SOON BR+ AB\T ! COLLAPSE ( 
CAPITALI/ PRODUCTION IF IT W]E NOT = C\NT]ACT+ T5D5CIES1 :I* HAVE 
CONT9U\S DEC5TRALIZ+ EFFECT ALONGSIDE ! C5TRIPETAL ONE 
7,CAPITAL1 ,VOL4 ,I,I1 P4 #b#d#a704 

,AS ,GROSSMANN CORRECTLY EMPHASIZES1 !SE C\NT]ACT+ T5D5CIES REF] TO 
0SOON0 SO ?AT ) !M ! PROCESS ONLY TAKES PLACE MORE 
SL[LY4 ,BUT WAS ,M>X TALK+ H]E ( A PURELY ECONOMIC COLLAPSE8 ,LET US READ ! 
PASSAGE :I* PREC$ES 9 ,M>X3 

0,IT IS ?IS SAME SEV]ANCE ( ! CONDITIONS ( 
PRODUCTION1 ON ! ONE H&1 FROM ! PRODUC]S1 ON ! O!R1 ?AT =MS ! 
CONCEPTION ( CAPITAL4 ,IT BEG9S ) PRIMITIVE ACCUMULATION1 APPE>S AS A 
P]MAN5T PROCESS 9 ! ACCUMULATION & CONC5TRATION ( CAPITAL1 & 
EXPRESSES ITSELF F9ALLY AS C5TRALIZATION ( EXI/+ CAPITALS 9 A FEW H&S 
& A DEPRIVATION ( MANY ( !IR CAPITAL 7TO :I* EXPROPRIATION IS N[ 
*ANG$704 

,IT IS CLE> ?AT ! COLLAPSE :I* ?US RESULTS IS1 AS SO (T5 9 ,M>X1 ! 
5D+ ( CAPITALISM BY SOCIALISM4 ,SO !RE IS NO?+ 9 ! QUOTATIONS FROM 
,M>X3 A F9AL ECONOMIC CATA/ROPHE CAN BE AS LITTLE READ FROM !M AS IT CAN BE 
CONCLUD$ FROM ! REPRODUCTION S*EMA4 ,BUT CAN ! S*EMA S]VE TO ANALYZE & 
EXPLA9 P]IODIC CRISES8 ,GROSSMANN SEEKS TO JO9 ! TWO TOGE!R3 0,! 
,M>XIAN !ORY ( COLLAPSE IS AT ! SAME TIME A !ORY ( CRISES0 -- 
SO READS ! BEG9N+ ( ,*APT] #h 7P4 #a#c#g74 ,BUT AS PRO( HE ONLY PROVIDES A 
DIAGRAM 7P4 #a#d#a7 9 :I* A /EEPLY RIS+ 'ACCUMULATION L9E' IS 
DIVID$ AFT] #ce YE>S2 BUT H]E A CRISIS OCCURS EV]Y #e OR #g YE>S :5 9 ! 
S*EMA EV]Y?+ IS GO+ SMOO?LY4 ,IF A MORE RAPID COLLAPSE IS DESIR$ IT 
W\LD BE OBTA9$ IF ! ANNUAL RATE ( GR[? ( CON/ANT CAPITAL WAS NOT #a 
P] C5T BUT MU* GREAT]4 ,9 ! ASC5DANT P]IOD ( ! ECONOMIC CYCLE !RE 
IS 9 FACT A MU* MORE RAPID GR[? ( CAPITAL2 ! VOLUME ( PRODUCTION 
9CREASES BY LEAPS & B\NDS2 BUT ?IS GR[? HAS NO?+ AT ALL TO DO ) 
TE*NICAL PROGRESS4 ,9DE$1 9 !SE P]IODS V>IABLE CAPITAL TOO 9CREASES 
RAPIDLY BY LEAPS4 ,BUT :Y !RE MU/ BE A COLLAPSE AFT] #e OR #g YE>S REMA9S 
OBSCURE4 ,9 O!R WORDS1 ! REAL CAUSES :I* PRODUCE ! RAPID RISE & !N 
! COLLAPSE ( ECONOMIC ACTIVITY >E ( A QUITE DIFF]5T NATURE FROM :AT IS 
SET \T 9 ,GROSSMANN'S REPRODUCTION S*EMA4 

,M>X SPEAKS ( OV]-ACCUMULATION PRECIPITAT+ A CRISIS1 ( !RE BE+ TOO 
MU* ACCUMULAT$ SURPLUS VALUE :I* IS NOT 9VE/$ & :I* DEPRESSES 
PR(ITS4 ,BUT ,GROSSMANN'S COLLAPSE COMES AB\T ?R\< !RE BE+ TOO 
LITTLE ACCUMULAT$ SURPLUS VALUE4 

,! SIMULTANE\S SURPLUS ( UNUS$ CAPITAL & UNEMPLOY$ WORK]S IS A 
TYPICAL FEATURE ( CRISES2 ,GROSSMANN'S S*EMA LEADS TO A LACK ( 
SUFFICI5T CAPITAL1 :I* HE CAN ONLY TRANS=M 9TO A SURPLUS BY COMMITT+ ! 
MI/AKE M5TION$ ABOVE4 ,SO ,GROSSMANN'S S*EMA CANNOT DEMON/RATE A F9AL 
COLLAPSE1 NOR DOES IT CORRESPOND TO ! REAL PH5OM5A ( COLLAPSE1 CRISES4 

,IT CAN ALSO BE ADD$ ?AT HIS S*EMA1 9 CON=MITY ) ITS ORIG91 SUFF]S 
FROM ! SAME DEFECT AS ,BAU]'S3 ! REAL1 IMPETU\S PU%+ =W>D ( 
CAPITALISM OV] ! WORLD :I* BR+S MORE & MORE PEOPLES UND] ITS 
DOM9ATION IS H]E REPRES5T$ BY A CALM & REGUL> POPULATION GR[? ( #e P] 
C5T A YE>1 AS IF CAPITALISM WAS CONF9$ 9 A CLOS$ NATIONAL ECONOMY4 

,GROSSMAN V]SUS ,M>X 

,GROSSMANN PRIDES HIMSELF = HAV+ = ! FIR/ TIME CORRECTLY 
RECON/RUCT$ ,M>X'S !ORY 9 ! FACE ( ! DI/ORTIONS ( ! ,SOCIAL 
,DEMOCRATS4 

0,ONE ( !SE NEW ADDITIONS TO KN[L$GE0 

7HE PR\DLY SAYS AT ! BEG9N+ ( ! 9TRODUCTION71 

0IS ! !ORY ( COLLAPSE1 SET \T BEL[1 :I* 
REPRES5TS ! PORTAL COLUMN ( ,M>X'S SY/EM ( ECONOMIC 
?\<04 

,WE HAVE SE5 H[ LITTLE :AT ,GROSSMANN CONSID]S TO BE A !ORY ( COLLAPSE 
HAS TO DO ) ,M>X4 ,NEV]!LESS1 ON HIS [N P]SONAL 9T]PRETATION1 HE C\LD 
WELL BELIEVE HIMSELF TO BE 9 AGREEM5T ) ,M>X4 ,BUT !RE >E O!R PO9TS 
:]E ?IS DOES NOT HOLD4 ,BECAUSE HE SEES HIS S*EMA AS A CORRECT REPRES5TATION 
( CAPITALI/ DEVELOPM5T1 ,GROSSMAN D$UCES FROM IT 9 V>I\S PLACES 
EXPLANATIONS :I*1 AS HE HIMSELF HAD P>TLY NOTIC$1 CONTRADICT ! VIEWS 
DEVELOP$ 9 ,CAPITAL4 

,?IS IS SO1 FIR/ ( ALL1 = ! 9DU/RIAL RES]VE >MY4 ,ACCORD+ TO 
,GROSSMANN'S S*EMA1 FROM ! #c#e? YE> A C]TA9 NUMB] ( WORK]S BECOME 
UNEMPLOY$ & A RES]VE >MY =MS4 

0,! =MATION ( ! RES]VE >MY1 VIZ41 ! LAY+ (F 
( WORK]S1 :I* WE >E DISCUSS+1 MU/ BE RIGOR\SLY DI/+UI%$ FROM ! 
LAY+ (F ( WORK]S DUE TO MA*9ES4 ,! ELIM9ATION ( WORK]S BY MA*9ES 
:I* ,M>X DESCRIBES 9 ! EMPIRICAL P>T ( ! FIR/ VOLUME ( 
,CAPITAL 7,*APT] #a#c7 IS A TE*NICAL FACT 4 4 4 7PP4 #a#b#h-#i7 4 4 4 
BUT ! LAY+ (F ( WORK]S1 ! =MATION ( ! RES]VE >MY1 :I* ,M>X 
SPEAKS ( 9 ! *APT] ON ! ACCUMULATION ( CAPITAL 7,*APT] #b#c7 IS NOT 
CAUS$ -- AS HAS BE5 COMPLETELY IGNOR$ UNTIL N[ 9 ! LIT]ATURE 
-- BY ! TE*NICAL FACT ( ! 9TRODUCTION ( MA*9ES1 BUT BY ! 
LACK ( 9VE/M5T OPPORTUNITIES4447P4 #a#c704 

,?IS AM\NTS BASICALLY TO SAY+3 IF ! SP>R[S FLY AWAY1 IT IS NOT BECAUSE 
( ! GUN%OT BUT BECAUSE ( !IR TIMIDITY4 ,! WORK]S >E ELIM9AT$ BY 
MA*9ES2 ! EXPANSION ( PRODUCTION ALL[S !M 9 P>T TO F9D WORK AGA92 9 
?IS COM+ & GO+ SOME ( !M >E PASS$ BY OR REMA9 \TSIDE4 ,MU/ ! 
FACT ?AT !Y HAVE NOT YET BE5 RE5GAG$ BE REG>D$ AS ! CAUSE ( !IR 
UNEMPLOYM5T8 ,IF ,*APT] #bc ( ,CAPITAL ,VOL4 ,I IS READ1 IT IS ALWAYS 
ELIM9ATION BY MA*9ES ?AT IS TREAT$ AS ! CAUSE ( ! RES]VE >MY1 :I* 
IS P>TIALLY REABSORB$ OR RELEAS$ ANEW & REPRODUCES ITSELF AS 
OV]POPULATION1 ACCORD+ TO ! ECONOMIC SITUATION4 ,GROSSMANN WORRIES HIMSELF 
= SEV]AL PAGES OV] ! PRO( ?AT IT IS ! ECONOMIC RELATION C3V ?AT 
OP]ATES H]E1 & NOT ! TE*NICAL RELATION MEANS ( PRODUCTION3LABOR P[]2 
9 FACT ! TWO >E ID5TICAL4 ,BUT ?IS =MATION ( ! RES]VE >MY1 :I* 
ACCORD+ TO ,M>X OCCURS EV]Y:]E & ALWAYS FROM ! COMM5CEM5T ( 
CAPITALISM1 & 9 :I* WORK]S >E REPLAC$ BY MA*9ES1 IS NOT ID5TICAL TO 
! ALLEG$ =MATION ( ! RES]VE >MY ACCORD+ TO ,GROSSMANN1 :I* />TS 
AS A CONSEQU5CE ( ACCUMULATION AFT] #cd YE>S ( TE*NICAL PROGRESS4 

,IT IS ! SAME ) ! EXPORT ( CAPITAL4 ,9 LONG EXPLANATIONS ALL ! 
,M>XI/ WRIT]S -- ,V>GA1 ,BUKH>91 ,NA*IMSON1 ,HILF]D+1 ,OTTO ,BAU]1 ,ROSA 
,LUXEMBURG -- >E ONE AFT] ! O!R DEMOLI%$ BECAUSE !Y ALL /ATE ! 
VIEW ?AT ! EXPORT ( CAPITAL TAKES PLACE = A HI<] PR(IT4 ,AS ,V>GA 
SAYS3 

0,IT IS NOT BECAUSE IT IS ABSOLUTELY IMPOSSIBLE TO 
ACCUMULATE CAPITAL AT HOME ?AT CAPITAL IS EXPORT$4444BUT BECAUSE !RE EXI/S 
! PROSPECT ( A HI<] PR(IT ABROAD0 7QUOT$ BY ,GROSSMANN1 P4 #d#i#h74 

,GROSSMANN ATTACKS ?IS VIEW AS 9CORRECT & UN-,M>XI/3 

0,IT IS NOT ! HI<] PR(IT ABROAD1 BUT ! LACK ( 
9VE/M5T OPPORTUNITIES AT HOME ?AT IS ! ULTIMATE REASON = ! EXPORT ( 
CAPITAL0 7P4 #e#f#a74 

,HE !N 9TRODUCES NUM]\S QUOTATIONS FROM ,M>X AB\T OV]ACCUMULATION & 
REF]S TO HIS S*EMA1 9 :I* AFT] #ce YE>S ! GR[+ MASS ( CAPITAL CAN NO 
LONG] BE EMPLOY$ AT HOME & SO MU/ BE EXPORT$4 

,LET US RECALL ?AT ACCORD+ TO ! S*EMA1 H[EV]1 !RE WAS TOO LITTLE 
CAPITAL 9 EXI/5CE = ! EXI/+ POPULATION & ?AT HIS CAPITAL SURPLUS 
WAS ONLY AN ]ROR ( CALCULATION4 ,FUR!R1 9 ALL ! QUOTATIONS FROM ,M>X1 
,GROSSMANN HAS =GOTT5 TO CITE ! ONE :]E ,M>X HIMSELF SPEAKS ( ! EXPORT 
( CAPITAL3 

0,IF CAPITAL IS S5T ABROAD1 ?IS IS NOT DONE BECAUSE IT 
ABSOLUTELY C\LD NOT BE APPLI$ AT HOME1 BUT BECAUSE IT CAN BE EMPLOY$ AT A 
HI<] RATE ( PR(IT 9 A =EIGN C\NTRY0 7,VOL4 ,I,I,I1 P4 #b#e#a74 

,! FALL 9 ! RATE ( PR(IT IS ONE ( ! MO/ IMPORTANT P>TS ( 
,M>X'S !ORY ( CAPITAL2 HE WAS ! FIR/ TO /ATE & PROVE ?AT ?IS 
T5D5CY TO FALL1 :I* EXPRESSES ITSELF P]IODICALLY 9 CRISES1 WAS ! 
EMBODIM5T ( ! TRANSITORY NATURE ( CAPITALISM4 ,) ,GROSSMANN IT IS ANO!R 
PH5OM5ON :I* COMES TO ! =E3 AFT] ! #c#e? YE> WORK]S >E LAID (F 5 
MASSE & CAPITAL IS AT ! SAME TIME CREAT$ 9 EXCESS4 ,AS A RESULT ! DEFICIT 
( SURPLUS VALUE 9 ! FOLL[+ YE> IS MORE S]I\S1 SO ?AT YET MORE LABOR 
& CAPITAL >E LEFT IDLE2 ) ! FALL 9 ! NUMB] ( WORK]S1 ! MASS ( 
SURPLUS VALUE PRODUC$ DECREASES & CAPITALISM S9KS /ILL DEEP] 9TO 
CATA/ROPHE4 ,HAS NOT ,GROSSMANN SE5 ! CONTRADICTION H]E ) ,M>X8 ,9DE$ HE 
HAS4 ,?US1 AFT] SOME 9TRODUCTORY REM>KS1 HE SETS TO WORK 9 ! *APT] 
5TITL$ 0,! ,CAUSES ( ! ,MISUND]/&+ ( ! ,M>XIAN ,!ORY ( 
,ACCUMULATION & ,COLLAPSE03 

0,! TIME IS NOT RIPE = A RECON/RUCTION ( ! 
,M>XIAN !ORY ( COLLAPSE 7P4 #a#i#e74 ,! FACT ?AT ! ?IRD *APT] ( ,VOLUME 
,I,I,I IS1 AS ,5GELS SAYS 9 ! PREFACE1 PRES5T$1 0AS A S]IES ( 
UNCOMPLET$ MA!MATICAL CALCULATIONS0 MU/ BE GIV5 AS AN EXT]NAL REASON 
= ! MISUND]/&+04 

,5GELS WAS HELP$ 9 HIS $IT+ BY HIS FRI5D1 ! MA!MATICIAN ,SAMUEL 
,MOORE3 

0,BUT ,MOORE WAS NOT AN ECONOMI/4444,! MODE ( ORIG9 ( 
?IS P>T ( ! WORK !RE=E MAKES IT PROBABLE EV5 9 ADVANCE ?AT MANY 
OPPORTUNITIES = MISUND]/&+ & ]ROR EXI/ H]E & ?AT !SE ]RORS 
C\LD !N EASILY HAVE BE5 C>RI$ OV] ALSO 9TO ! *APT] DEAL+ ) ! 
T5D5CY ( ! RATE ( PR(IT TO FALL4440 

7,N,B3 !SE *APT]S HAD ALREADY BE5 WRITT5 BY ,M>X67 

0,! PROBABILITY ( ]ROR BECOMES ALMO/ C]TA9 :5 WE 
CONSID] ?AT IT IS A QUE/ION H]E ( A S+LE WORD :I*1 
UN=TUNATELY1 COMPLETELY DI/ORTS ! :OLE S5SE ( ! ANALYSIS3 ! 
9EVITABLE 5D ( CAPITALISM IS ATTRIBUT$ TO ! RELATIVE FALL 9 ! RATE 
9/EAD ( 9 ! MASS ( PR(IT4 ,5GELS OR ,MOORE HAD C]TA9LY MADE A SLIP ( 
! P5 7P4 #a#i#e704 

,SO ?IS IS :AT ! RECON/RUCTION ( ,M>X'S !ORY LOOKS LIKE6 ,ANO!R 
QUOTATION IS GIV5 9 A NOTE :I* SAYS3 

0,9 ! WORDS 9 BRACKETS4 ,5GELS OR ,M>X HIMSELF MADE A 
SLIP ( ! P52 IT %\LD READ CORRECTLY & AT ! SAME TIME A MASS ( PR(IT 
:I* FALLS 9 RELATIVE VALUE04 
 .<,TRANSLATOR'S NOTE3 ,GROSSMANN 
REF]S TO ! PASSAGE ON P4 #bad ( ,VOL4 ,I,I,I :I* READS3 0,H5CE1 ! SAME 
LAWS PRODUCE = ! SOCIAL CAPITAL A GR[+ ABSOLUTE MASS ( PR(IT1 & A 
FALL+ RATE ( PR(IT0.>4 

,SO N[ IT IS ,M>X HIMSELF :O MAKES MI/AKES4 ,& H]E IT CONC]NS A PASSAGE 
:]E ! S5SE1 AS GIV5 9 ! TEXT ( ,CAPITAL1 IS UNAMBIGU\SLY 
CLE>4 ,M>X'S :OLE ANALYSIS1 :I* 5DS ) ! PASSAGE ,GROSSMANN F9DS 
NECESS>Y TO *ANGE1 IS A CONT9UATION ( A PASSAGE :]E ,M>X EXPLA9S3 

0444! MASS ( ! SURPLUS VALUE PRODUC$ BY IT1 & 
!RE=E ! ABSOLUTE MASS ( ! PR(IT PRODUC$ BY IT1 CAN1 
CONSEQU5TLY1 9CREASE1 & 9CREASE PROGRESSIVELY1 9 SPITE ( ! PROGRESSIVE 
DROP 9 ! RATE ( PR(IT4 ,& ?IS NOT ONLY CAN BE SO4 ,ASIDE FROM 
TEMPOR>Y FLUCTUATIONS IT MU/ BE SO1 ON ! BASIS ( CAPITALI/ 
PRODUCTION0 7,VOL4 ,I,I,I1 P4 #b#a#c4 

,M>X !N SETS \T ! REASONS :Y ! MASS ( PR(IT MU/ 9CREASE & SAYS 
ONCE AGA93 

0,AS ! PROCESS ( PRODUCTION & ACCUMULATION ADVANCES 
!RE=E1 ! MASS ( AVAILABLE & APPROPRIAT$ SURPLUS LABOR1 & H5CE ! 
ABSOLUTE MASS ( PR(IT APPROPRIAT$ BY ! SOCIAL CAPITAL MU/ 
GR[0 7,VOL4 ,I,I,I1 P4 #b#a#d74 

,?US ! EXACT OPPOSITE TO ! ONSET ( ! COLLAPSE 9V5T$ BY ,GROSSMANN4 
,9 ! FOLL[+ PAGES ?IS IS REPEAT$ YET MORE (T52 ! :OLE ( ,*APT] #ac 
CONSI/S ( A PRES5TATION ( 

0! LAW ?AT A FALL 9 ! RATE ( PR(IT DUE TO ! 
DEVELOPM5T ( PRODUCTIV5ESS IS ACCOMPANI$ BY AN 9CREASE 9 ! MASS ( 
PR(IT4440 7,VOL4 ,I,I,I1 P4 #b#b#a74 

,SO !RE CAN REMA9 NOT ! SLI<TE/ D\BT ?AT ,M>X WANT$ TO SAY PRECISELY 
:AT WAS PR9T$ !RE & ?AT HE HAD NOT MADE A SLIP ( ! P54 ,& :5 
,GROSSMANN WRITES3 

0,! COLLAPSE CANNOT !RE=E RESULT FROM ! FALL 9 
! RATE ( PR(IT4 ,H[ C\LD A P]C5TAGE PROPORTION1 SU* AS ! RATE ( 
PR(IT1 A PURE NUMB]1 BR+ AB\T ! COLLAPSE ( A REAL ECONOMIC 
SY/EM60 7P4 #a#i#f74 

HE !REBY %[S YET AGA9 ?AT HE HAS UND]/OOD NO?+ ( ,M>X & ?AT 
HIS COLLAPSE IS 9 COMPLETE CONTRADICTION ) ,M>X4 

,H]E IS ! PO9T AT :I* HE C\LD HAVE CONV9C$ HIMSELF ( ! 9/ABILITY 
( HIS CON/RUCTION4 ,BUT IF HE HAD ALL[$ HIMSELF TO BE TAU<T BY ,M>X H]E1 
!N HIS :OLE !ORY W\LD HAVE FALL5 & HIS BOOK W\LD NOT HAVE BE5 
WRITT54 

,! FAIRE/ WAY ( DESCRIB+ ,GROSSMANN'S BOOK IS AS A PAT*WORK ( 
QUOTATIONS FROM ,M>X1 9CORRECTLY APPLI$ & /UCK TOGE!R BY MEANS ( A 
FABRICAT$ !ORY4 ,EA* TIME A PRO( IS REQUIR$1 A QUOTATION FROM ,M>X1 :I* 
DOES NOT DEAL ) ! PO9T 9 QUE/ION1 IS 9TRODUC$1 & IT IS ! 
CORRECTNESS ( ,M>X'S WORDS :I* IS SUPPOS$ TO GIVE ! READ] ! 
IMPRESSION ?AT ! !ORY IS CORRECT4 

,HI/ORICAL MAT]IALISM 

,! QUE/ION :I* 9 ! 5D M]ITS ATT5TION IS H[ CAN AN 
ECONOMI/ :O BELIEVES HE IS CORRECTLY RECON/RUCT+ ,M>X'S VIEWS1 & 
:O FUR!R /ATES ) NAIVE SELF-ASSURANCE ?AT HE IS ! FIR/ TO GIVE A 
CORRECT 9T]PRETATION ( !M1 BE SO COMPLETELY MI/AK5 & F9D HIMSELF 9 
COMPLETE CONTRADICTION ) ,M>X4 ,! REASON LIES 9 ! LACK ( A HI/ORICAL 
MAT]IALI/ UND]/&+4 ,= Y\ WILL NOT UND]/& ,M>XIAN ECONOMICS AT ALL 
UNLESS Y\ HAVE MADE ! HI/ORICAL MAT]IALI/ WAY ( ?9K+ Y\R [N4 

,= ,M>X ! DEVELOPM5T ( HUMAN SOCIETY1 & SO ALSO ! ECONOMIC 
DEVELOPM5T ( CAPITALISM1 IS DET]M9$ BY A FIRM NECESSITY LIKE A LAW ( 
NATURE4 ,BUT ?IS DEVELOPM5T IS AT ! SAME TIME ! WORK ( M5 :O PLAY !IR 
ROLE 9 IT & :]E EA* P]SON DET]M9ES HIS [N ACTS ) CONSCI\SNESS & 
PURPOSE -- ?\< NOT ) A CONSCI\SNESS ( ! SOCIAL :OLE4 ,TO ! 
B\RGEOIS WAY ( SEE+ ?+S1 !RE IS A CONTRADICTION H]E2 EI!R :AT 
HAPP5S DEP5DS ON HUMAN FREE *OICE OR1 IF IT IS GOV]N$ BY FIX$ LAWS1 !N 
!SE ACT AS AN EXT]NAL1 ME*ANICAL CON/RA9T ON M54 ,= ,M>X ALL SOCIAL 
NECESSITY IS ACCOMPLI%$ BY M52 ?IS MEANS ?AT A MAN'S ?9K+1 
WANT+ & ACT+ -- AL?\< APPE>+ AS A FREE *OICE 9 HIS 
CONSCI\SNESS -- >E COMPLETELY DET]M9$ BY ! ACTION ( ! 
5VIRONM5T2 IT IS ONLY ?R\< ! TOTALITY ( !SE HUMAN ACTS1 DET]M9$ 
MA9LY BY SOCIAL =CES1 ?AT CON=MITY TO LAWS IS A*IEV$ 9 SOCIAL 
DEVELOPM5T4 

,! SOCIAL =CES :I* DET]M9E DEVELOPM5T >E ?US NOT ONLY PURELY 
ECONOMIC ACTS1 BUT ALSO ! G5]AL-POLITICAL ACTS DET]M9$ BY !M1 :I* 
PROVIDE PRODUCTION ) ! NECESS>Y NORMS ( RI<T4 ,CON=MITY TO LAW DOES NOT 
RESIDE SOLELY 9 ! ACTION ( COMPETITION :I* FIXES PRICES & PR(ITS & 
CONC5TRATES CAPITAL1 BUT ALSO 9 ! E/ABLI%M5T ( FREE COMPETITION1 ( FREE 
PRODUCTION BY B\RGEOIS REVOLUTIONS2 NOT ONLY 9 ! MOVEM5T ( WAGES1 9 ! 
EXPANSION & CONTRACTION ( PRODUCTION 9 PROSP]ITY ANT CRISIS1 9 ! CLOS+ 
( FACTORIES & ! LAY+ (F ( WORK]S1 BUT ALSO 9 ! REVOLT1 ! /RUGGLE 
( ! WORK]S1 ! CONQUE/ BY !M ( P[] OV] SOCIETY & PRODUCTION 9 
ORD] TO E/ABLI% NEW NORMS ( RI<T4 ,ECONOMICS1 AS ! TOTALITY ( M5 WORK+ 
& /RIV+ TO SATISFY !IR SUBSI/5CE NE$S1 & POLITICS 79 ITS WIDE/ 
S5SE71 AS ! ACTION & /RUGGLE ( !SE M5 AS CLASSES TO SATISFY !SE 
NE$S1 =M A S+LE UNIFI$ DOMA9 ( LAW-GOV]N$ DEVELOPM5T4 ,! 
ACCUMULATION ( CAPITAL1 CRISES1 PAUP]IZATION1 ! PROLET>IAN REVOLUTION1 ! 
SEIZURE ( P[] BY ! WORK+ CLASS =M TOGE!R1 ACT+ LIKE A NATURAL LAW1 
AN 9DIVISIBLE UNITY1 ! COLLAPSE ( CAPITALISM4 

,! B\RGEOIS WAY ( ?9K+1 :I* DOES NOT UND]/& ?AT ?IS IS A 
UNITY1 HAS ALWAYS PLAY$ A GREAT ROLE NOT ONLY \TSIDE BUT ALSO )9 ! 
WORK]S' MOVEM5T4 ,9 ! OLD RADICAL ,SOCIAL ,DEMOCRACY ! FATALI/ VIEW 
WAS CURR5T1 UND]/&ABLE 9 VIEW ( ! HI/ORICAL CIRCUM/ANCES1 ?AT ! 
REVOLUTION W\LD ONE DAY COME AS A NATURAL NECESSITY & ?AT 9 ! MEANTIME 
! WORK]S %\LD NOT TRY ANY?+ DANG]\S4 ,RE=MISM QUE/ION$ ! NE$ = 
A 'VIOL5T' REVOLUTION & BELIEV$ ?AT ! 9TELLIG5CE ( 
/ATESM5 & LEAD]S W\LD TAME CAPITALISM BY RE=M & ORGANIZATION4 ,O!RS 
BELIEV$ ?AT ! PROLET>IAT HAD TO BE $UCAT$ TO REVOLUTION>Y VIRTUE BY 
MORAL PREA*+4 ,! CONSCI\SNESS WAS ALWAYS LACK+ ?AT ?IS VIRTUE ONLY 
F\ND ITS NATURAL NECESSITY ?R\< ECONOMIC =CES1 & ?AT ! REVOLUTION 
ONLY F\ND ITS NATURAL NECESSITY ?R\< ! M5TAL =CES ( M54 ,O!R VIEWS 
HAVE N[ APPE>$4 ,ON ! ONE H& CAPITALISM HAS PROV$ ITSELF /RONG & 
UNASSAILABLE AGA9/ ALL RE=MISM1 ALL ! SKILLS ( LEAD]S1 ALL ATTEMPTS AT 
REVOLUTION2 ALL !SE HAVE APPE>$ RIDICUL\S 9 ! FACE ( ITS IMM5SE 
/R5G?4 ,BUT1 ON ! O!R H&1 T]RIBLE CRISES AT ! SAME TIME REVEAL ITS 
9T]NAL WEAKNESS4 ,:OEV] N[ TAKES UP ,M>X & /UDIES HIM IS DEEPLY IMPRESS$ 
BY ! IRRESI/IBLE1 LAW-GOV]N$ NATURE ( ! COLLAPSE & WELCOMES !SE 
IDEAS ) 5?USIASM4 

,BUT IF HIS BASIC WAY ( ?9K+ IS B\RGEOIS HE CANNOT CONCEIVE ?IS 
NECESSITY O!R ?AN AS AN EXT]NAL =CE ACT+ ON M54 ,CAPITALISM IS = HIM A 
ME*ANICAL SY/EM 9 :I* M5 P>TICIPATE AS ECONOMIC P]SONS1 CAPITALI/S1 
BUY]S1 SELL]S1 WAGE-WORK]S1 ETC41 BUT O!RWISE MU/ SUBMIT 9 A PURELY 
PASSIVE WAY TO :AT ?IS ME*ANISM IMPOSES ON !M 9 VIEW ( ITS 9T]NAL 
/RUCTURE4 

,?IS ME*ANI/IC CONCEPTION CAN ALSO BE RECOGNIZ$ 9 ,GROSSMANN'S 
/ATEM5TS ON WAGES :5 HE VIOL5TLY ATTACKS ,ROSA ,LUXEMBURG -- 

0,EV]Y:]E ONE COMES ACROSS AN 9CR$IBLE1 B>B>\S 
MUTILATION ( ! ,M>XIAN !ORY ( WAGES0 7P4 #e#h#e74 

-- PRECISELY :]E %E QUITE CORRECTLY TREATS ! VALUE ( LABOR-P[] 
AS A QUANTITY ?AT CAN BE EXP&$ ON ! BASIS ( ! /&>D ( LIV+ 
ATTA9$4 ,= ,GROSSMANN ! VALUE ( LABOR-P[] IS 0NOT AN ELA/IC1 BUT 
A FIX$ QUANTITY0 7P4 #e#h#f74 ,ACTS ( HUMAN *OICE SU* AS ! 
WORK]S' /RUGGLES CAN HAVE NO 9FLU5CE ON IT2 ! ONLY WAY 9 :I* 
WAGES CAN RISE IS ?R\< A HI<] 9T5SITY ( LABOR OBLIG+ ! REPLACEM5T 
( ! GREAT] QUANTITY ( LABOR-P[] EXP5D$4 

,H]E IT IS ! SAME ME*ANI/IC VIEW3 ! ME*ANISM DET]M9ES ECONOMIC 
QUANTITIES :ILE /RUGGL+ & ACT+ M5 /& \TSIDE ?IS RELATION4 
,GROSSMANN APPEALS AGA9 TO ,M>X = ?IS1 :]E ! LATT] WRITES ( ! VALUE 
( LABOR-P[]3 

0,NEV]!LESS1 9 A GIV5 C\NTRY1 AT A GIV5 P]IOD1 
! AV]AGE QUANTITY ( ! MEANS ( SUBSI/5CE NECESS>Y = ! LABOR] IS 
PRACTICALLY KN[N0 7,CAPITAL4 ,VOL4 ,I1 P4 #a#g#a72 

BUT ,GROSSMANN HAS UN=TUNATELY ONCE AGA9 OV]LOOK$ ?AT 9 ,M>X ?IS 
PASSAGE IS IMM$IATELY PREC$$ BY3 

0,9 CONTRADICTION !RE=E TO ! CASE ( O!R 
COMMODITIES1 !RE 5T]S 9TO ! DET]M9ATION ( ! VALUE ( LABOR-P[] A 
HI/ORICAL & MORAL ELEM504 

,/>T+ FROM HIS B\RGEOIS WAY ( ?9K+ ,GROSSMANN /ATES 9 HIS CRITICISM 
( V>I\S ,SOCIAL ,DEMOCRATIC VIEWS3 

0,WE SEE3 ! COLLAPSE ( CAPITALISM IS EI!R D5I$ OR 
BAS$1 9 A VOLUNT>I/ WAY1 ON EXTRA-ECONOMIC1 POLITICAL FACTORS4 ,! ECONOMIC 
PRO( ( ! NECESSITY ( ! COLLAPSE ( CAPITALISM HAS NEV] BE5 
PRODUC$0 7PP4 #e#h-#e#i74 

,& HE CITES ) APPROVAL AN OP9ION ( ,TUGAN-,B>ANOVSKY ?AT1 9 ORD] TO 
PROVE ! NECESSITY = ! TRANS=MATION ( CAPITALISM 9TO ITS OPPOSITE1 A 
RIGID PRO( ( ! IMPOSSIBILITY = CAPITALISM TO CONT9UE EXI/+ MU/ FIR/ 
BE PRODUC$4 ,TUGAN HIMSELF D5IES ?IS IMPOSSIBILITY & WI%ES TO GIVE 
SOCIALISM AN E?ICAL BASIS4 ,BUT ?AT ,GROSSMANN *OOSES TO CALL AS WITNESS ?IS 
,RUSSIAN LIB]AL ECONOMI/ :O1 AS IS KN[N1 WAS ALWAYS COMPLETELY ALI5 TO 
,M>XISM1 %[S TO :AT DEGREE !IR BASIC WAY ( ?9K+ IS RELAT$1 DESPITE 
!IR OPPOS$ PRACTICAL PO9TS ( VIEW 7SEE ALSO ,GROSSMANN1 P4 #a#h74 ,! ,M>XIAN 
VIEW ?AT ! COLLAPSE ( CAPITALISM WILL BE ! ACT ( ! WORK+ CLASS & 
?US A POLITICAL ACT 79 ! WIDE/ S5SE ( ?IS WORD3 G5]AL SOCIAL1 :I* IS 
9SEP>ABLE FROM ! TAKE-OV] ( ECONOMIC P[]7 ,GROSSMANN CAN ONLY UND]/& 
AS 'VOLUNT>I/'1 I4E41 ?AT IT IS SOME?+ ?AT IS1 GOV]N$ BY 
M5'S *OICE1 BY FREE WILL4 

,! COLLAPSE ( CAPITALISM 9 ,M>X DOES DEP5D ON ! ACT ( WILL ( ! 
WORK+ CLASS2 BUT ?IS WILL IS NOT A FREE *OICE1 BUT IS ITSELF DET]M9$ BY 
ECONOMIC DEVELOPM5T4 ,! CONTRADICTIONS ( ! CAPITALI/ ECONOMY1 :I* 
REPEAT$LY EM]GE 9 UNEMPLOYM5T1 CRISES1 W>S1 CLASS /RUGGLES1 REPEAT$LY 
DET]M9E ! WILL TO REVOLUTION ( ! PROLET>IAT4 ,SOCIALISM COMES NOT BECAUSE 
CAPITALISM COLLAPSES ECONOMICALLY & M51 WORK]S & O!RS1 >E =C$ BY 
NECESSITY TO CREATE A NEW ORGANIZATION1 BUT BECAUSE CAPITALISM1 AS IT LIVES & 
GR[S1 BECOMES MORE & MORE UNBE>ABLE = ! WORK]S & REPEAT$LY PU%ES 
!M TO /RUGGLE UNTIL ! WILL & /R5G? TO OV]?R[ ! DOM9ATION ( 
CAPITALISM & E/ABLI% A NEW ORGANIZATION GR[S 9 !M1 & !N CAPITALISM 
COLLAPSES4 ,! WORK+ CLASS IS NOT PU%$ TO ACT BECAUSE ! UNBE>ABL5ESS ( 
CAPITALISM IS DEMON/RAT$ TO !M FROM ! \TSIDE1 BUT BECAUSE !Y FEEL IT 
G5]AT$ )9 !M4 ,M>X'S !ORY1 AS ECONOMICS1 %[S H[ ! ABOVE 
PH5OM5A IRRESI/IBLY REAPPE> ) GREAT] & GREAT] =CE &1 AS 
HI/ORICAL MAT]IALISM1 H[ !Y NECESS>ILY GIVE RISE TO ! REVOLUTION>Y WILL 
& ! REVOLUTION>Y ACT4 

,! NEW WORK]S' MOVEM5T 

,IT IS UND]/&ABLE ?AT ,GROSSMANN'S BOOK %\LD HAVE BE5 
GIV5 SOME ATT5TION BY ! SPOKESM5 ( ! NEW WORK]S' MOVEM5T S9CE 
HE ATTACKS ! SAME 5EMY AS !M4 ,! NEW WORK]S' MOVEM5T HAS TO ATTACK 
,SOCIAL ,DEMOCRACY & ! ,P>TY ,COMMUNISM ( ! ,?IRD ,9T]NATIONAL1 TWO 
BRAN*ES ( ! SAME TREE1 BECAUSE !Y ACCOMMODATE ! WORK+ CLASS TO 
CAPITALISM4 ,GROSSMANN ATTACKS ! !ORETICIANS ( !SE CURR5TS = HAV+ 
DI/ORT$ & FALSIFI$ ,M>X'S TEA*+S1 & 9SI/S ON ! NECESS>Y 
COLLAPSE ( CAPITALISM4 ,HIS CONCLUSIONS S\ND SIMIL> TO \RS1 BUT !IR S5SE 
& ESS5CE >E COMPLETELY DIFF]5T4 ,WE ALSO >E ( ! OP9ION ?AT ! ,SOCIAL 
,DEMOCRATIC !ORI/S1 GOOD !ORETICAL EXP]TS ?AT !Y (T5 W]E NEV]!LESS 
DI/ORT$ ,M>X'S DOCTR9E2 BUT !IR MI/AKE WAS HI/ORICAL1 ! 
!ORETICAL PRECIPITATE ( AN E>LY P]IOD ( ! /RUGGLE ( ! PROLET>IAT4 
,GROSSMANN'S MI/AKE IS ?AT ( A B\RGEOIS ECONOMI/ :O HAS NEV] HAD 
PRACTICAL EXP]I5CE ( ! /RUGGLE ( ! PROLET>IAT & :O IS CONSEQU5TLY 
NOT 9 A POSITION TO UND]/& ! ESS5CE ( ,M>XISM4 

,AN EXAMPLE ( H[ HIS CONCLUSIONS APP>5TLY AGREE ) ! VIEWS ( ! NEW 
WORK]S' MOVEM5T1 BUT >E 9 ESS5CE COMPLETELY OPPOS$1 IS TO BE F\ND 
9 HIS !ORY ( WAGES4 ,ACCORD+ TO HIS S*EMA1 AFT] #ce YE>S1 ) ! 
COLLAPSE1 A RAPIDLY CLIMB+ UNEMPLOYM5T APPE>S4 ,AS A RESULT WAGES S9K WELL 
BEL[ ! VALUE ( LABOR-P[]1 )\T AN EFFECTIVE RESI/ANCE BE+ 
POSSIBLE4 

0,H]E ! OBJECTIVE LIMIT ( TRADE UNION ACTION IS GIV50 7P4 
#e#i#i74 ,H[EV] FAMILI> ?IS S\NDS1 ! BASIS IS QUITE DIFF]5T4 ,! 
P[]LESSNESS ( TRADE UNION ACTION1 :I* HAS BE5 EVID5T = A LONG TIME1 
%\LD NOT BE ATTRIBUT$ TO AN ECONOMIC COLLAPSE1 BUT TO A %IFT 9 ! BALANCE 
( SOCIAL P[]4 ,EV]YONE KN[S H[ ! 9CREAS$ P[] ( ! EMPLOY]S' 
COMB9ES ( CONC5TRAT$ BIG CAPITAL HAS MADE ! WORK+ CLASS RELATIVELY 
P[]LESS4 ,TO :I* IS N[ ADD$ ! EFFECTS ( A SEV]E CRISIS :I* DEPRESSES 
WAGES1 AS HAPP5$ 9 EV]Y PREVI\S CRISIS4 

,! PURELY ECONOMIC COLLAPSE ( CAPITALISM :I* ,GROSSMANN CON/RUCTS DOES 
NOT 9VOLVE A COMPLETE PASSIVITY BY ! PROLET>IAT4 ,=1 :5 ! COLLAPSE 
TAKES PLACE ! WORK+ CLASS MU/ PRECISELY PREP>E ITSELF TO REE/ABLI% 
PRODUCTION ON A NEW BASIS4 

0,?US EVOLUTION PU%ES T[>DS ! DEVELOPM5T & 
EXAC]BATION ( ! 9T]NAL OPPOSITIONS BETWE5 CAPITAL & LABOR UNTIL ! 
SOLUTION :I* CAN COME ONLY FROM ! /RUGGLE BETWE5 ! TWO CLASSES IS 
BR\<T AB\T0 7P4 #e#i#i74 

,?IS F9AL /RUGGLE IS L9K$ ALSO ) ! WAGES /RUGGLE BECAUSE 7AS WAS 
ALREADY M5TION$ ABOVE7 ! CATA/ROPHE CAN BE PO/PON$ BY DEPRESS+ WAGES OR 
HA/5$ BY RAIS+ !M4 ,BUT IT IS ! ECONOMIC CATA/ROPHE ?AT IS = 
,GROSSMANN ! REALLY ESS5TIAL FACTOR1 ! NEW ORD] BE+ =CIBLY IMPOS$ ON 
M54 ,C]TA9LY1 ! WORK]S1 AS ! MASS ( ! POPULATION1 >E TO SUPPLY ! 
PREPOND]ANT =CE ( ! REVOLUTION1 JU/ AS 9 ! B\RGEOIS REVOLUTIONS ( 
! PA/ :]E !Y =M$ ! MASS =CE = ACTION2 BUT1 AS 9 HUNG] REVOLTS 
9 G5]AL1 ?IS IS 9DEP5D5T ( !IR REVOLUTION>Y MATURITY1 ( !IR 
CAPACITY TO TAKE P[] OV] SOCIETY & TO HOLD IT4 ,?IS MEANS ?AT A 
REVOLUTION>Y GR\P1 A P>TY ) SOCIALI/ AIMS1 W\LD HAVE TO APPE> AS A NEW 
GOV]N+ P[] 9 PLACE ( ! OLD 9 ORD] TO 9TRODUCE SOME K9D ( PLANN$ 
ECONOMY4 

,! !ORY ( ! ECONOMIC CATA/ROPHE IS ?US READY-MADE = 9TELLECTUALS 
:O RECOGNIZE ! UNT5ABLE *>ACT] ( CAPITALISM & :O WANT A PLANN$ 
ECONOMY TO BE BUILT BY CAPABLE ECONOMI/S & LEAD]S4 ,& IT MU/ BE EXPECT$ 
?AT MANY O!R SU* !ORIES WILL COME FROM !SE QU>T]S OR MEET ) 
APPROVAL !RE4 ,! !ORY ( ! NECESS>Y COLLAPSE WILL ALSO BE ABLE TO 
EX]CISE A C]TA9 ATTRACTION OV] REVOLUTION>Y WORK]S4 ,!Y SEE ! 
OV]:ELM+ MAJORITY ( ! PROLET>IAN MASSES /ILL ATTA*$ TO ! OLD 
ORGANIZATIONS1 ! OLD LEAD]S1 ! OLD ME?ODS1 BL9D TO ! TASK :I* ! NEW 
DEVELOPM5T IMPOSES ON !M1 PASSIVE & IMMOBILE1 ) NO SIGNS ( 
REVOLUTION>Y 5]GY4 ,! FEW REVOLUTION>IES :O UND]/& ! NEW DEVELOPM5T 
MI<T WELL WI% ON ! /UPEFI$ MASSES A GOOD ECONOMIC CATA/ROPHE SO ?AT !Y 
F9ALLY COME \T ( ! SLUMB] & 5T] 9TO ACTION4 ,! !ORY ACCORD+ TO 
:I* CAPITALISM HAS TODAY 5T]$ ITS F9AL CRISIS ALSO PROVIDES A DECISIVE1 
& SIMPLE1 REFUTATION ( RE=MISM & ALL ,P>TY PROGRAMS :I* GIVE PRIORITY 
TO P>LIAM5T>Y WORK & TRADE UNION ACTION -- A DEMON/RATION ( ! 
NECESSITY ( REVOLUTION>Y TACTICS :I* IS SO CONV5I5T ?AT IT MU/ BE 
GREET$ SYMPA!TICALLY BY REVOLUTION>Y GR\PS4 ,BUT ! /RUGGLE IS NEV] SO 
SIMPLE OR CONV5I5T1 NOT EV5 ! !ORETICAL /RUGGLE = REASONS & 
PRO(S4 

,RE=MISM WAS A FALSE TACTIC1 :I* WEAK5$ ! WORK+ CLASS1 NOT ONLY 9 
CRISES BUT ALSO 9 PROSP]ITY4 ,P>LIAM5T>ISM & ! TRADE UNION TACTIC DID 
NOT HAVE TO AWAIT ! PRES5T CRISIS TO PROVE A FAILURE2 ?IS HAS BE5 %[N = 
! LA/ HUNDR$ YE>S4 ,IT IS NOT DUE TO ! ECONOMIC COLLAPSE ( CAPITALISM BUT 
TO ! 5ORM\S DEVELOPM5T ( ITS /R5G?1 TO ITS EXPANSION OV] ALL ! 
,E>?1 TO ITS EXAC]BATION ( POLITICAL OPPOSITIONS1 TO ! VIOL5T 
RE9=CEM5T ( ITS 9N] /R5G?1 ?AT ! PROLET>IAT MU/ TAKE MASS ACTION1 
SUMMON+ UP ! /R5G? ( ! :OLE CLASS4 ,IT IS ?IS %IFT 9 ! RELATIONS 
( P[] ?AT IS ! BASIS = ! NEW DIRECTION = ! WORK]S' 
MOVEM5T4 

,! WORK]S' MOVEM5T HAS NOT TO EXPECT A F9AL CATA/ROPHE1 BUT MANY 
CATA/ROPHES1 POLITICAL -- LIKE W>S1 & ECONOMIC -- LIKE ! CRISES 
:I* REPEAT$LY BREAK \T1 SOMETIMES REGUL>LY1 SOMETIMES IRREGUL>LY1 BUT 
:I* ON ! :OLE1 ) ! GR[+ SIZE ( CAPITALISM1 BECOME MORE & MORE 
DEVA/AT+4 ,SO ! ILLUSIONS & T5D5CIES TO TRANQUILITY ( ! PROLET>IAT 
WILL REPEAT$LY COLLAPSE1 & %>P & DEEP CLASS /RUGGLES WILL BREAK \T4 ,IT 
APPE>S TO BE A CONTRADICTION ?AT ! PRES5T CRISIS1 DEEP] & MORE 
DEVA/AT+ ?AN ANY PREVI\S ONE1 HAS NOT %[N SIGNS ( ! AWAK5+ ( ! 
PROLET>IAN REVOLUTION4 ,BUT ! REMOVAL ( OLD ILLUSIONS IS ITS FIR/ GREAT 
TASK3 ON ! O!R H&1 ! ILLUSION ( MAK+ CAPITALISM BE>ABLE BY MEANS ( 
RE=MS OBTA9$ ?R\< ,SOCIAL ,DEMOCRATIC P>LIAM5T>Y POLITICS & TRADE 
UNION ACTION &1 ON ! O!R1 ! ILLUSION ?AT CAPITALISM CAN BE OV]?R[N 
9 ASSAULT UND] ! LEAD]%IP ( A REVOLUTION-BR++ ,COMMUNI/ ,P>TY4 ,! 
WORK+ CLASS ITSELF1 AS A :OLE1 MU/ CONDUCT ! /RUGGLE1 BUT1 :ILE ! 
B\RGEOISIE IS ALREADY BUILD+ UP ITS P[] MORE & MORE SOLIDLY1 ! WORK+ 
CLASS HAS YET TO MAKE ITSELF FAMILI> ) ! NEW =MS ( /RUGGLE4 ,SEV]E 
/RUGGLES >E B\ND TO TAKE PLACE4 ,& %\LD ! PRES5T CRISIS ABATE1 NEW 
CRISES & NEW /RUGGLES WILL >ISE4 ,9 !SE /RUGGLES ! WORK+ CLASS WILL 
DEVELOP ITS /R5G? TO /RUGGLE1 WILL DISCOV] ITS AIMS1 WILL TRA9 ITSELF1 
WILL MAKE ITSELF 9DEP5D5T & LE>N TO TAKE 9TO ITS H&S ITS [N DE/9Y1 
VIZ41 SOCIAL PRODUCTION ITSELF4 ,9 ?IS PROCESS ! DE/RUCTION ( CAPITALISM IS 
A*IEV$4 ,! SELF-EMANCIPATION ( ! PROLET>IAT IS ! COLLAPSE ( 
CAPITALISM4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #a1 #bba 3 ,! ,!ORY ( ! ,COLLAPSE ( ,CAPITALISM -- ,ADD$4 
,JANU>Y #h1 #bbb 3 ,! ,!ORY ( ! ,COLLAPSE ( ,CAPITALISM -- ,UPDAT$4 

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