,VALUE ,!ORY & ,CAPITAL ,ACCUMULATION 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,PUBLI%$3 ,SCI5CE @& ,SOCIETY1 VOL4 #b#c1 NO4 #a4 ,W9T] #a#i#e#i4 ,PP4 #b#g-#e#a4 
,TRANSCRIPTION_/,M>KUP3 ,MICAH ,MU]1 #b#a#h4 

,NOTES ON ,JOSEPH ,M4 ,GILLMAN'S ,! ,FALL+ ,RATE ( ,PR(IT3 ,M>X'S ,LAW & ,ITS ,SIGNIFICANCE TO ,TW5TIE?-,C5TURY ,CAPITALISM 7,NEW ,YORK1 #a#i#e#h74 

,! 9T]E/ %[N BY READ]S ( ,S,C,I,5,C,E @& ,S,O,C,I,E,T,Y 9 ! >TICLE BY 
,JACOB ,MORRIS ON ,JOSEPH ,GILLMAN'S ,! ,FALL+ ,RATE ( ,PR(IT 
HAS L$ ! $ITORS TO 9VITE ! OP9IONS ( ECONOMI/S ON ! QUE/IONS 
DISCUSS$ 9 ,DR4 ,GILLMAN'S BOOK4 ,!IR COMM5TS WILL BE PUBLI%$ 
BEG9N+ ) ?IS ISSUE4--,$ITORS4 

,M>X'S !ORY ( CAPITAL DEVELOPM5T EVOLV$ \T ( HIS CRITICISM ( 
! VALUE !ORY ( LAISSEZ-FAIRE CAPITALISM4 ,9 ORD] TO YIELD 
REGULATORY RESULTS1 ! M>KET AUTOMATISM PRESUPPOSES A PR9CIPLE ON :I* 
EX*ANGE IS BAS$1 A PR9CIPLE ?AT EXPLA9S PRICES & !IR *ANGES4 ,A GIV5 
PRICE MAY V>Y 9 ! 9T]PLAY ( SUPPLY & DEM&1 BUT ! QUE/ION ( :AT 
DET]M9ES PRICE REMA9S4 ,= ! CLASSICI/S1 PRICE WAS A D]IVATION ( VALUE 
& VALUE WAS DET]M9$ BY ! SOCIALLY NECESS>Y LABOR-TIME 9CORPORAT$ 9 
COMMODITIES4 ,!RE WAS NO NE$ TO QU>REL ) ?IS EXPLANATION :I* DID NOT 
EXCLUDE SPECIFIC CASES :]E PRICE HAS NO RELATION TO LABOR-TIME4 ,AT ANY RATE1 
,M>X ACCEPT$ ! LABOR !ORY ( VALUE AS ! CLOSE/ APPROXIMATION TO ! 
ACTUAL EVALUATION PROCESS :I* UND]LIES PRICES4 

,= ,M>X1 ! 9H]5T CONTRADICTIONS ( CAPITAL PRODUCTION >E NOT ( AN 
0ECONOMIC0 *>ACT] 9 ! B\RGEOIS S5SE ( ! T]M4 ,HE IS 
CONC]N$ NOT ) ! SUPPLY & DEM& RELATIONS ( ! M>KET BUT ) ! 
EFFECT ( ! SOCIAL =CES ( PRODUCTION UPON ! SOCIAL RELATIONS ( 
PRODUCTION1 ?AT IS1 ) ! RESULTS ( ! 9CREAS+ PRODUCTIVITY ( LABOR 
UPON ! PRODUCTION ( VALUE & SURPLUS-VALUE4 ,CELEBRAT$ AS ! PRODUCT ( 
CAPITAL ITSELF1 B\RGEOIS !ORY SEP>ATES GR[+ PRODUCTIVITY FROM ITS SOCIAL 
IMPLICATIONS4 ,= ,M>X1 IT IS ! 9DEP5D5T V>IABLE ?AT DET]M9ES ALL ! 
O!R V>IABLES 9 ! SY/EM ( ECONOMIC RELATION%IPS4 

,:ATEV] ! REGULATIVE P[] ( COMPETITION & :ATEV] ! =CE ( 
SUPPLY & DEM& MAY BE1 ALL ?AT MATT]S 9 ! 5D1 & FROM ! PO9T ( 
VIEW ( DEVELOPM5T1 IS ! *ANG+ PRODUCTIVITY ( LABOR4 ,IT TRANS=MS 
SOCIETY MAT]IALLY & ! MAT]IAL *ANGES AFFECT ALL SOCIO-ECONOMIC 
RELATIONS4 ,?IS SPECIAL IMPORTANCE ( LABOR & ITS 9CREAS+ PRODUCTIVITY 9 
,M>X'S S*EME ( REASON+ L$ TO ! DISCOV]Y ( A DEF9ITE 
DEVELOPM5TAL TR5D 9 CAPITAL ACCUMULATION :I* REVEAL$ QUALITATIVE *ANGES 
9 ! WAKE ( QUANTITATIVE ONES4 ,HE C\LD %[ ?AT ! CAPITALI/ 
0EQUILIBRIUM ME*ANISM0 MU/ ITSELF *ANGE 9 ! C\RSE ( CAPITAL 
ACCUMULATION & ?AT IT IS ! LATT] :I* DET]M9ES & MODIFIES ! M>KET 
=CE ( SUPPLY & DEM&1 S9CE ! M>KET LAWS HAVE TO ASS]T !MSELVES 
)9 A L>G] FRAME ( A DEVELOP+ 0DISEQUILIBRIUM0 BETWE5 ! 
SOCIAL =CES ( PRODUCTION & ! CAPITALI/ RELATIONS ( PRODUCTION4 

,AS AN EXPLANATION ( ! DEVELOPM5TAL T5D5CIES ( CAPITAL PRODUCTION1 
,M>X F\ND ! !ORY ( VALUE 9DISP5SABLE &1 9 FACT1 ! ONLY 
0RATIONAL BASIS ( POLITICAL ECONOMY40 ,HE KNEW1 ( C\RSE1 ?AT ! 
SOCIAL LABOR PROCESS ITSELF HAS NO?+ TO DO ) EI!R VALUE OR PRICE BUT 
ONLY ) ! TIME-CONSUM+ PHYSICAL & M5TAL EX]TIONS ( ! LABOR+ 
POPULATION & ?AT 0VALUE0 & 0PRICE0 >E FETI%I/IC 
CATEGORIES = EXI/+ SOCIAL PRODUCTION RELATIONS4 ,IT W\LD NOT DO1 H[EV]1 
M]ELY TO PO9T \T ?AT ! RUL+ ECONOMIC CATEGORIES W]E !MSELVES 9 NE$ 
( EXPLANATION & ?AT ! :OLE 0SCI5CE0 ( B\RGEOIS ECONOMY 
C\LD ONLY MAKE ! P]FECTLY CLE> REQUIREM5TS ( SOCIAL PRODUCTION & 
DI/RIBUTION OBSCURE4 ,9 ORD] TO CON/RUCT A !ORY ( CAPITAL DEVELOPM5T1 IT 
WAS NECESS>Y TO AGREE TO ! VALIDITY ( A DEF9ITE REGULATORY 
PR9CIPLE--! VALUE CONCEPT--:I* CAME NE>E/ TO REALITY BY 
EXPRESS+ ACTUAL NECESSITIES & BY 9CORPORAT+ ! EXI/+ EQUILIBRIUM 
T5D5CIES ( ! M>KET ME*ANISM4 

,FROM ! /&PO9T ( ! LABOR !ORY ( VALUE1 ! EX*ANGE-VALUE ( A 
COMMODITY DECREASES ) ! 9CREAS+ PRODUCTIVITY ( LABOR4 ,H[EV]1 
CAPITALI/ PRODUCTION IS PRODUCTION ( EX*ANGE-VALUE BY WAY ( ! PRODUCTION 
( COMMODITIES4 ,ITS GOAL IS SURPLUS-VALUE AS ADDITIONAL EX*ANGE-VALUE4 
,SURPLUS-VALUE IS ! DIFF]5CE BETWE5 ! EX*ANGE-VALUE ( LABOR P[] & 
ITS ACTUAL PRODUCTIVE CAPACITY4 ,IT IS ! TIME RELATION BETWE5 ! LABOR 
NECESS>Y TO SU/A9 & REPRODUCE WORK]S & ! LABOR ?AT FALLS TO 
CAPITALI/S 9 ! =M ( SURPLUS-PRODUCTS REALIZ$ 9 PR(ITS4 ,VIEW$ 
CAPITALI/ICALLY1 A M]E 9CREASE 9 PRODUCTIVITY IS S5SELESS UNLESS IT 
9VOLVES AN 9CREASE 9 SURPLUS-VALUE4 ,! LATT] IS MADE POSSIBLE BY AN 
9CREASE 9 PRODUCTIVITY BUT IMPLIES A *ANGE 9 ! RELATION BETWE5 NECESS>Y 
& SURPLUS-LABOR4 ,MORE ( ! LATT] FALLS TO ! CAPITALI/S1 LESS ( ! 
=M] TO ! WORK]S4 

,! 9CREASE 9 PRODUCTIVITY & SURPLUS-VALUE & ! ACCUMULATION ( 
CAPITAL >E ALL ONE & ! SAME PROCESS4 ,IT IMPLIES A MORE RAPID GR[? ( 
CAPITAL 9VE/$ 9 MEANS ( PRODUCTION ?AN ?AT 9VE/$ 9 LABOR P[]4 ,9 
,CAPITAL1 ,M>X CON/RUCTS A VALUE-MODEL ( CAPITAL DEVELOPM5T 
COMPRIS+ ! !ORETICALLY CONCEIVABLE 5TITY ( 0TOTAL CAPITAL0 
) ITS SOCIAL AGGREGATES ( WAGES1 PR(ITS & 9VE/M5TS4 ,! SOCIAL 
REPRODUCTION PROCESS IS H]E ! ACCUMULATION ( CAPITAL1 ?AT IS1 IT IMPLIES 
REPRODUCTION ON A L>G] SCALE4 ,CAPITAL 9VE/$ 9 LABOR P[] ,M>X CALL$ 
0V>IABLE CAPITAL0 BECAUSE ( ITS ABILITY TO CREATE SURPLUS-VALUE 
& ?US ADDITIONAL CAPITAL4 ,CAPITAL 9VE/$ 9 MEANS ( PRODUCTION HE CALL$ 
0CON/ANT CAPITAL40 ,! RELATION BETWE5 !SE TWO P>TS1 BO? ) 
REG>D TO !IR TE*NICAL SIDE & !IR VALUE SIDE HE CALL$ ! 
0ORGANIC COMPOSITION ( CAPITAL40 ,ACCUMULATION MEANS A RIS+ 
ORGANIC COMPOSITION ( CAPITAL1 ?AT IS1 MORE CON/ANT1 LESS V>IABLE CAPITAL4 
,AS PR(ITS >E CALCULAT$ ON ! TOTAL 9VE/$ CAPITAL1 !Y MU/ %[ A 
T5D5CY TO DECL9E AS ?AT P>T ( ! TOTAL :I* ALONE YIELDS SURPLUS-VALUE 
BECOMES RELATIVELY SMALL]4 ,BUT ! PROCESS ALSO IMPLIES AN 9CREAS+ ABILITY 
TO EXTRACT MORE SURPLUS-VALUE1 ?US NULLIFY+ ! 0T5D5CY0 ( 
PR(ITS TO DECL9E1 & CON/ITUT+ ! REASON = ! PROCESS ITSELF4 
,ACCORD+ TO ,M>X1 !N1 ! DEVELOPM5T ( ! SOCIAL PRODUCTIVITY ( LABOR 9 
CAPITALISM EXPRESSES ITSELF 0ON ! ONE H& 9 A T5D5CY TO A 
PROGRESSIVE FALL ( ! RATE ( PR(IT1 & ON ! O!R H& 9 A PROGRESSIVE 
9CREASE ( ! ABSOLUTE MASS ( ! APPROPRIAT$ SURPLUS-VALUE1 OR PR(IT2 SO 
?AT ON ! :OLE A RELATIVE DECREASE ( V>IABLE CAPITAL & PR(ITS IS 
ACCOMPANI$ BY AN ABSOLUTE 9CREASE ( BO?4 ,?IS TW(OLD EFFECT CAN EXPRESS 
ITSELF ONLY 9 ! GR[? ( ! TOTAL CAPITAL AT A RATIO MORE RAPID ?AN ?AT 
EXPRESS$ BY ! FALL ( ! RATE ( PR(IT40.<#a.> 

,! 0AB/RACT LAW0 ?AT ! GR[+ PRODUCTIVITY ( LABOR 
MANIFE/S ITSELF 9 A FALL+ RATE ( PR(IT SIMULTANE\SLY COMP5SAT$ = BY 
AN 9CREAS+ MASS ( SURPLUS-VALUE MAY APPE> QUITE MEAN+LESS SO LONG AS 
CAPITALI/S >E ABLE TO ACCUMULATE4 ,H[EV]1 ! ABS5CE ( A FALL+ RATE ( 
PR(IT 9 REALITY DOES NOT 9VALIDATE A VALUE-S*EME ( CAPITAL DEVELOPM5T 9 
:I* ! RATE ( PR(IT %[S SU* A DECL9E4 ,TO %[ ?IS DECL9E1 TO BE 
SURE1 IT IS NECESS>Y TO ASSUME A CAPITALI/ SY/EM ) A RIS+ ORGANIC 
COMPOSITION ( CAPITAL & A /ATIC RATE ( EXPLOITATION1 OR1 :5 A GR[+ 
RATE ( SURPLUS-VALUE IS CONSID]$1 TO ASSUME A CLOS$ SY/EM ) A GIV5 
LABOR =CE 9 :I* ! CONT9U\S ACCUMULATION PROCESS1 DEM&+ ALWAYS MORE 
SURPLUS-LABOR1 BR+S ! NECESS>Y LABOR T[>DS Z]O4 ,!SE >E UNREALI/IC 
CONDITIONS4 ,:AT IS REAL1 NEV]!LESS1 IS ! ACCUMULATION PROCESS & ! 
RIS+ ORGANIC COMPOSITION ( CAPITAL4 ,& AL?\< CAPITALI/S >E NOT AW>E 
( A T5D5TIAL FALL ( ! RATE ( PR(IT1 !Y DO SUFF] P]IODS ( 
DECL9+ PR(ITABILITY1 & !SE P]IODS >E *>ACT]IZ$ BY A DECREAS+ 
RATE ( ACCUMULATION4 ,BY ITSELF1 ?IS FACT NEI!R SUPPORTS NOR CONTRADICTS 
,M>X'S !ORY4 ,IT M]ELY RESEMBLES ! VALUE-S*EME ( DEVELOPM5T4 ,ON 
! BASIS ( HIS [N ASSUMPTION1 ! VALUE-S*EME ( ACCUMULATION ONLY 
PO/ULATES 0! POSSIBILITY ( CRISIS BY A M]E CONSID]ATION ( ! 
G5]AL NATURE ( CAPITAL1 )\T REG>D TO ! ADDITIONAL & REAL RELATIONS 
?AT =M ! CONDITIONS ( ! REAL PRODUCTION PROCESS40.<#b.> 

,9 ! REAL WORLD ( CAPITAL PRODUCTION IT CANNOT BE EXPECT$ ?AT 
CAPITALISM WILL COLLAPSE BECAUSE ( ACCUMULATION1 OR1 :AT AM\NTS TO ! SAME 
?+1 BECAUSE ( ! T5D5TIAL FALL ( ! RATE ( PR(IT4 ,! 5D 
( ACCUMULATION C\LD RESULT ONLY :5 REAL SOCIAL CONDITIONS EXCLUDE A 
SUFFICI5T 9CREASE ( SURPLUS-VALUE = A FUR!R EXPANSION ( CAPITAL OR :5 
! EXPANSION ( CAPITAL HAS REA*$ A PO9T :]E ANY FUR!R CAPITAL GR[? 
W\LD YIELD ! SAME1 OR LESS1 SURPLUS-VALUE ?AN BE=E4 ,AS NEI!R ( !SE 
SITUATIONS IS PR$ICTABLE FROM ! ACTUAL CONDITIONS ( CAPITAL PRODUCTION1 
,ROSA ,LUXEMBURG WAS QUITE RI<T 9 CONSID]+ ?AT ! IDEA ?AT CAPITALISM 
W\LD COLLAPSE AS A RESULT ( ! FALL+ RATE ( PR(IT WAS TOO F>-FET*$4 
,9 H] OP9ION 0A COLLAPSE ( CAPITALISM DUE TO ! FALL+ RATE ( PR(IT 
W\LD TAKE A V]Y LONG TIME1 PROBABLY JU/ AS LONG AS ! COOL+-D[N ( ! 
SUN40.<#c.> 

,ROSA ,LUXEMBURG'S REM>KS1 AL?\< TRUE1 >E QUITE BESIDE ! PO9T4 
,= ! 0SELF-LIQUIDATION0 ( CAPITAL PRODUCTION--BY WAY ( A 
FALL+ RATE ( PR(IT AS IMPLI$ 9 ! VALUE-MODEL ( CAPITAL 
EXPANSION--WAS MEANT TO LEAD T[>D AN UND]/&+ ( ! ACTUAL PROCESS 
( CAPITAL =MATION & DOES NOT REPRES5T ! LATT] ONLY 9 A MORE 
G5]ALIZ$ =M4 ,M>X1 AT ANY RATE1 NEV] TIR$ ( PO9T+ \T ?AT NO 
PR$ICTIONS REG>D+ ! ACTUAL WORLD CAN BE BAS$ DIRECTLY ON ! 
VALUE-S*EME ( CAPITAL DEVELOPM5T4 ,ALL REAL CRISES ( CAPITALISM 
MU/1 9 HIS VIEW1 BE EXPLA9$ \T ( ! EMPIRICALLY-GIV5 CONDITION1 
0\T ( ! REAL MOVEM5T ( CAPITALI/ PRODUCTION1 COMPETITION1 & 
CR$IT40.<#d.> 

,M>X'S !ORY ( ACCUMULATION HAS NO IMM$IATE & DIRECT CONNECTION 
) ! ACTUAL PROCESS ( CAPITAL =MATION4 ,! DI/9CTION BETWE5 ! 
VALUE-MODEL & REALITY MU/ ALWAYS BE KEPT CLE>4 ,QUE/IONS >IS+ 9 ! 
MODEL CANNOT BE ANSW]$ ) PH5OM5A ?AT APPE> ONLY 9 REALITY1 & 
SOLUTIONS ( PROBLEMS ( ! ACTUAL WORLD >E NOT F\ND 9 ! VALUE-S*EME ( 
DEVELOPM5T4 ,! AB/RACT VALUE-S*EME ( CAPITAL EXPANSION HAS ITS PURPOSE1 
NEV]!LESS4 ,IT 9DICATES ?AT1 AP>T FROM COMPETITION AS ! DRIV+ =CE ( 
CAPITAL DEVELOPM5T 9 ! M>KET REALITY1 ! PRODUCTION & ACCUMULATION ( 
SURPLUS-VALUE F9DS 9 ! TW(OLD *>ACT] ( CAPITAL PRODUCTION 7USE- & 
EX*ANGE-VALUE7 A LIMIT+ ELEM5T1 TO BE OV]COME ONLY BY A CONT9U\S 
EXPANSION & EXT5SION ( CAPITAL & ! CAPITALI/ MODE ( PRODUCTION4 
,ACCORD+ TO ,M>X1 CAPITALISM'S BASIC CONTRADICTION CONSI/S 9 ! 
CONFLICT BETWE5 ! EXPANSION ( PRODUCTION & ! CREATION ( VALUE4 ,IT 
CONSI/S1 G5]ALLY SPEAK+1 9 ! FACT 0?AT ! CAPITALI/ MODE ( 
PRODUCTION HAS A T5D5CY TO DEVELOP ! PRODUCTIVE =CES ABSOLUTELY1 
REG>DLESS ( ! VALUE & ( ! SURPLUS-VALUE CONTA9$ 9 IT & REG>DLESS 
( ! SOCIAL CONDITIONS UND] :I* CAPITALI/ PRODUCTION TAKES PLACE2 :ILE 
IT HAS ON ! O!R H& = ITS AIM ! PRES]VATION ( ! VALUE ( ! 
EXI/+ CAPITAL & ITS SELF-EXPANSION TO ! HI<E/ LIMIT40.<#e.> ,AN 
UNCONDITIONAL DEVELOPM5T ( PRODUCTION UND] ! AUSPICES ( COMPETITION CAN 
LEAD TO A SITUATION :]E ! EXPANSION ( USE-VALUES W\LD NO LONG] 
CORRESPOND TO ! VALUE-EXPANSION ( CAPITAL &1 = ?AT REASON1 W\LD 
TEMPOR>ILY 5D4 ,IT IS 9 ?IS S5SE ?AT ,M>X PROCLAIMS ?AT 0! REAL 
B>RI] TO CAPITALI/ PRODUCTION IS CAPITAL ITSELF4 ,IT IS ! FACT ?AT CAPITAL 
& ITS SELF-EXPANSION APPE> AS ! />T+ & CLOS+ PO9T1 AS ! MOTIVE 
AIM ( PRODUCTION 444 :I* /E] /RAI<T T[>D AN UNRE/RICT$ EXT5SION 
( PRODUCTION4 ,! MEANS1 ?IS UNCONDITIONAL DEVELOPM5T ( ! PRODUCTIVE 
=CES ( SOCIETY1 COMES CONT9UALLY 9TO CONFLICT ) ! LIMIT$ 5D1 ! 
SELF-EXPANSION ( ! EXI/+ CAPITALS40.<#f.> 

,9 ,M>X'S AB/RACT VALUE-S*EME1 ACCUMULATION LEADS TO A F9AL LACK ( 
SURPLUS VALUE :5 C]TA9 LIMIT+ CONDITIONS ( EXPANSION >E ASSUM$4 
,AL?\< !SE ASSUM$ CONDITIONS WILL NOT >ISE 9 REALITY1 IT IS QUITE CLE> 
?AT = ALL CAPITALS1 ALL NATIONAL CAPITALS & = ! :OLE ( CAPITALISM 
!RE DO EXI/ AT ANY P>TICUL> TIME DEF9ITE LIMITS TO !IR PR(ITABLE 
EXPANSION4 ,& IT IS NOT ! M>KET ALONE1 BUT ! :OLE SOCIAL SITUATION 9 
ALL ITS RAMIFICATIONS :I*1 AT TIMES1 CON/ITUTES A LIMIT TO CAPITAL 
EXPANSION4 ,AS IT IS NOT POSSIBLE TO CALCULATE :5 ! EXPANSION ( ONE OR ALL 
CAPITALS REA*ES ITS LIMITS 9 ACTUAL SOCIAL CONDITIONS1 LIMIT+ CONDITIONS 
HAD TO BE ASSUM$ 9 ORD] TO REVEAL ! MEAN+ ( ! PROCESS H]E 
9VOLV$4 

,OV]-ACCUMULATION ( CAPITAL IS ALWAYS ! 5DPO9T ( A P]IOD ( 
ACCUMULATION :]E9 ! EXT5SION ( PRODUCTION P>ALLELS ! EXPANSION ( 
CAPITAL4 ,:5 EXI/+ CONDITIONS ( EXPLOITATION PRECLUDE A FUR!R PR(ITABLE 
CAPITAL EXPANSION1 A CRISIS SETS 94 ,?IS1 ( C\RSE1 LEADS TO PROCESSES ?AT 
REMOVE ! TEMPOR>Y B>RI] TO FUR!R ACCUMULATION4 ,BUT ! REORGANIZATION ( 
! TOTAL CAPITAL /RUCTURE H]E 9VOLV$ SETS NEW LIMITS )9 ! NEW 
CONDITIONS *>ACT]I/IC = ANO!R P]IOD4 ,!RE IS1 H[EV]1 NO REASON TO 
ASSUME ?AT ! CONDITIONS ( PRODUCTION WILL ALWAYS *ANGE SO AS TO 
ACCOMMODATE ! NE$ = CAPITAL EXPANSION2 ! LESS SO1 AS ! CONDITIONS ( 
PRODUCTION >E ! G5]AL SOCIAL CONDITIONS ( PRODUCTION & ! NE$ = 
CAPITAL EXPANSION IS A P>TICUL> NE$ B\ND TO NO?+ BUT ! EXPLOITATIVE 
CAPITAL-LABOR RELATION%IP4 

,M>X'S AB/RACT !ORY ( CAPITAL DEVELOPM5T1 ?\< 9CAPABLE ( 
PR$ICT+ ! DEF9ITE 5D ( CAPITALISM1 IS SIGNIFICANT AS AN 9/RUM5T TO 
BE SET AGA9/ ! P]SI/5T ILLUSION ?AT CAPITALISM C\LD ACTUALLY REA* 
?AT /ATE ( TRANQUILITY HELD \T BY ITS APOLOGI/S AS ! ONLY HOPE ( ! 
FUTURE4 ,IT HELPS EXPLA9 :Y ALL ! CONCRETE CONTRADICTIONS 5C\NT]$ 9 
REALITY CANNOT BE CONSID]$ ACCID5TAL OR REM$IABLE %ORTCOM+S4 ,!SE 
DIFFICULTIES1 S+LY & AS A DEVELOPM5TAL PATT]N1 >E DUE TO A TR5D 9 
CAPITAL ACCUMULATION ITSELF4 ,:5 CAPITALISM'S 9N] CONNECTIONS >E 
GRASP$1 ,M>X WROTE1 0ALL !ORETICAL BELIEF 9 ! P]MAN5T NECESSITY ( 
EXI/+ CONDITIONS BREAKS D[N BE=E !IR PRACTICAL COLLAPSE40.<#g.> ,! 
VAGU5ESS ( HIS !ORY WAS BO? ITS WEAKNESS & ITS /R5G?1 BUT ABOVE ALL1 
IT WAS ! ONLY =M 9 :I* CAPITALI/ DEVELOPM5T C\LD BE COMPREH5D$4 

,! ,FALL+ ,RATE ( ,PR(IT & ,ITS ,C\NT]-,T5D5CIES 

,!RE >E ,M>XI/S :O HAVE PROJECT$ ,M>X'S F9D+S ) REG>D TO 
! VALUE-MODEL ( CAPITAL EXPANSION 9TO ! REAL WORLD ( CAPITAL =MATION4 
,& IT MU/ BE ADMITT$ ?AT ,M>X1 & HIS $ITOR1 DID NOT ALWAYS DI/+UI% 
CLE>LY 5\< BETWE5 ! REAL WORLD ( CAPITALISM & ITS APPE>ANCE 9 VALUE 
!ORY4 ,BUT :ILE1 9 ! CASE ( ,M>X1 ?IS MAY BE CONSID]$ A LIT]>Y 
%ORTCOM+1 = SOME ( HIS DISCIPLES ! 0LAW ( VALUE10 AS ! 
ECONOMIC C\NT]P>T TO ! DIALECTICS1 SEEMS TO ASSURE ! BREAKD[N ( 
CAPITALISM4.<#h.> ,M>X'S CRITIQUE ( POLITICAL ECONOMY BECAME ! IDEOLOGY ( 
! 9EVITABILITY ( SOCIALISM4 ,AS SU*1 ! !ORY ( BREAKD[N WAX$ & 
WAN$ ) ! CAPITALI/ MOVEM5T FROM DEPRESSION TO PROSP]ITY1 FROM RELATIVE 
/ABILITY TO ! G5]AL CRISIS4 ,:ILE 9 VOGUE1 H[EV]1 IT WAS ALWAYS 
ADMITT$ ?AT ! CONTRADICTORY VALUE PRODUCTION1 :I* TURNS ! DRIVE = 
PR(ITS 9TO !IR DECL9E1 HAS NO C\NT]P>T 9 IMM$IATE REALITY4 
,CAPITALISM'S BASIC T5D5CY1 IT WAS >GU$1 IS (FSET BY 
C\NT]-T5D5CIES4 ,BUT AS ALL !SE C\NT]-T5D5CIES >E SUPPOS$LY 
OV]-RUL$ BY ! 0LAW ( VALUE10 !Y W]E ?\<T TO EXHAU/ 
!MSELVES 9 ! C\RSE ( TIME & ! AS YET UNNOTICEABLE FALL ( ! RATE 
( PR(IT W\LD BECOME A REAL DECL9E & DE/ROY ! CAPITALI/ SY/EM4 

,GILLMAN'S BOOK RAISES ! QUE/ION ( ! FALL+ RATE ( PR(IT = 
CONTEMPOR>Y CAPITALISM4 ,HE PO9TS \T ?AT ?IS QUE/ION HAS HI!RTO 
0BE5 >GU$ MA9LY ON !ORETICAL GR\NDS10 :I*1 ( C\RSE1 IS 
! ONLY GR\ND IT CAN BE >GU$ ON4 ,GILLMAN1 H[EV]1 ATTEMPTS TO DEAL ) IT 
ON 0BO? !ORETICAL & HI/ORICAL-/ATI/ICAL GR\NDS10 & !RE 
HE F9DS ?AT 0= ! YE>S BE=E AB\T ,WORLD ,W> ,I ! HI/ORICAL 
/ATI/ICS SEEM FULLY TO SUPPORT !SE !ORIES ( ,M>X2 AFT] ?AT W> ! 
S]IES /UDI$ APPE> G5]ALLY TO BEHAVE 9 CONTRADICTION TO ! ,M>XI/ 
EXPECTATIONS40 ,GILLMAN WOND]S :E!R HIS PROC$URE & /ATI/ICS >E 
WRONG1 OR :E!R ,M>X WAS RI<T = ! P]IOD ( COMPETITIVE CAPITALISM & 
WRONG = ! P]IOD ( MONOPOLY CAPITALISM2 P>TICUL>LY 0) RESPECT 
TO ! C\NT]T5D5CIES :I* BECAME EFFECTIVE AS (FSETS TO ! FALL+ 
T5D5CY ( ! RATE ( PR(IT 9 ?IS 7MONOPOLY7 P]IOD40 

,GILLMAN'S RE-=MULATION ( ,M>X'S 0LAW ( ! FALL+ 
RATE ( PR(IT10 IS1 UN=TUNATELY1 A MIS/ATEM5T1 = HE ASS]TS ?AT 
! RATE ( PR(IT FALLS 0BECAUSE ! DRIVE T[>D UNLIMIT$ CAPITAL 
ACCUMULATION T5DS TO DELIMIT ! CAPITALI/ICALLY-DET]M9$ CONSUM] M>KET 
POT5TIALS :]E9 ALONE PR(ITS CAN BE REALIZ$ 7#d740.<#i.> ,9 ,M>X'S 
!ORY1 H[EV]1 ! RATE ( PR(IT FALLS EV5 ON ! ASSUMPTION ?AT !RE IS 
NO REALIZATION PROBLEM4 ,IT IS A QUE/ION ( ! EXPANSION ( PRODUCTION & ! 
EXPANSION ( VALUE1 NOT ( ITS REALIZATION4 ,! REALIZATION ( SURPLUS-VALUE IS 
A PROBLEM ( ! CONCRETE M>KET SITUATION1 NOT ( AB/RACT VALUE ANALYSIS4 ,BUT 
H]E AT ! V]Y \TSET1 AS WELL AS ?R\<\T HIS BOOK1 ,GILLMAN MOVES FROM 
AB/RACT VALUE ANALYSIS 9TO CONCRETE PRODUCTION & DI/RIBUTION RELATIONS1 
& VICE V]SA1 UNAW>E ?AT SU* PROC$URES >E NOT P]MISSIBLE4 ,& 
?US HE DOES NOT NOTICE ?AT HIS DI/9CTION BETWE5 COMPETITIVE & MONOPOLY 
CAPITALISM HAS NO BE>+ ON ! T5D5TIAL FALL ( ! RATE ( PR(IT1 AS ! 
LATT] REF]S TO 0TOTAL CAPITAL10 DISREG>DS ISSUES ( MONOPOLY & 
COMPETITION & ASSUMES VALIDITY = ALL /AGES ( CAPITAL DEVELOPM5T4 
,F9ALLY1 & 9 CONTRA/ TO ?OSE !ORETICIANS :O WAIT$ = ! 
C\NT]-T5D5CIES TO ! FALL+ RATE ( PR(IT TO EXHAU/ !MSELVES1 ,GILLMAN 
PO9TS \T ?AT IT MAY BE A QUE/ION ( ! V>Y+ EFFECTIV5ESS ( !SE 
C\NT]-T5D5CIES :I* WILL EXPLA9 :Y !RE WAS AN ACTUAL FALL ( ! RATE 
( PR(IT 9 AN E>LI] P]IOD ( CAPITAL EXPANSION & :Y ?IS NO LONG] 
HOLDS TRUE = PRES5T-DAY CAPITALISM4 

,ACCORD+ TO ,M>X1 0! SAME CAUSES :I* PRODUCE A FALL+ T5D5CY 
9 ! RATE ( PR(IT1 ALSO CALL =? C\NT]-EFFECTS1 :I* *ECK & P>TLY 
P>ALYZE ?IS FALL4-.<#a.> ,C\NT]-T5D5CIES TO ! T5D5TIAL FALL ( ! 
RATE ( PR(IT AS LI/$ BY ,M>X 9CLUDE ! RIS+ 9T5SITY ( EXPLOITATION1 
! DEPRESSION ( WAGES BEL[ !IR VALUE1 ! *EAP5+ ( ! ELEM5TS ( 
CON/ANT CAPITAL1 RELATIVE OV]-POPULATION1 =EIGN TRADE & ! 9CREASE ( 
/OCK CAPITAL4.<#a#a.> ,TO SPEAK AB\T A 0T5D5TIAL DECL9E ( ! 
PR(IT-RATE0 & ( 0C\NT]-T5D5CIES0 TO ?IS DECL9E1 
MEANS TO SPEAK SIMULTANE\SLY 9 T]MS ( VALUE ANALYSIS & CONCRETE REALITY4 
,?IS IS P]MISSIBLE IF ONE KEEPS 9 M9D ?AT ONLY ! 
0C\NT]-T5D5CIES0 >E REAL PH5OM5A & REVEAL BY !IR 
EXI/5CE ! UNOBS]VABLE T5D5TIAL FALL ( ! PR(IT-RATE4 ,MOREOV]1 
,M>X'S 0C\NT]-T5D5CIES0 MAY COMBAT AN ACTUAL FALL ( 
PR(IT-RATES--MAY BOL/]1 OR EV5 9CREASE1 A GIV5 RATE ( PR(IT1 QUITE 
9DEP5D5T ( ! 0T5D5TIAL FALL ( ! RATE ( PR(IT0 
ASSOCIAT$ ) ! RIS+ ORGANIC COMPOSITION ( CAPITAL4 

,! C\NT]-EFFECTS LI/$ BY ,M>X HAVE NO DIRECT CONNECTION ) ! 
AB/RACT !ORY ( ! FALL+ RATE ( PR(IT2 !Y M]ELY 9DICATE ! 
DISORD] & 9COMPLET5ESS :I* >E *>ACT]I/IC ( ! LA/ VOLUME ( 
,CAPITAL1 PUBLI%$ AS IT WAS LONG AFT] ,M>X'S DEA?4 ,! 
RISE ( EXPLOITATION & ! *EAP5+ ( CON/ANT CAPITAL >E NOT PROP]LY 
0C\NT]-T5D5CIES0 TO ! T5D5TIAL FALL ( ! RATE ( PR(IT4 
,!Y >E DI/+UI%ABLE FROM ! LATT] ONLY 9 ! S5SE ?AT ! TWO PHASES 
( ! C>DIAC CYCLE >E DI/+UI%ABLE--?AT IS1 AS ! S+UL> 
MOVEM5T ( CAPITAL ACCUMULATION4 ,?AT A RIS+ ORGANIC COMPOSITION ( CAPITAL 
%\LD LEAD TO A RELATIVE OV]-POPULATION IS QUITE CLE>1 BUT ?IS RELATIVE 
OV]-POPULATION CAN H>DLY S]VE AS A 0C\NT]-T5D5CY0 TO ! 
FALL+ RATE ( PR(IT4 ,IT DOES SO1 ACCORD+ TO ,M>X1 BECAUSE IT BR+S =? 
NEW EMPLOYM5T 9 9DU/RIES ) L[ ORGANIC CAPITAL COMPOSITION & ?US 
RAISES ! AV]AGE RATE ( PR(IT4 ,BUT ! COMPETITIVE PROCESS :I* BR+S 
AB\T ! AV]AGE RATE ( PR(IT HAS NO PLACE 9 ,M>X'S AB/RACT VALUE 
ANALYSIS1 DEAL+ AS IT DOES1 ) TOTAL CAPITAL4 ,= ?IS REASON1 
0=EIGN TRADE0 MU/ ALSO BE EXCLUD$1 NOT TO SPEAK ( 0WAGES 
BEL[ !IR VALUE0 & ! 09CREASE ( /OCK CAPITAL0 9 A 
!ORY BAS$ ON ! LAW ( VALUE4 ,9 REALITY1 ( C\RSE1 NEW 
9DU/RIES ) L[ ORGANIC COMPOSITIONS >E 9/ALL$1 SOME WORK]S >E PAID 
BEL[ !IR VALUE1 & =EIGN TRADE IS (T5 HI<LY PR(ITABLE4 ,BUT !SE 
ITEMS >E MEAN+FUL ONLY 9 CONNECTION ) ! ACTUAL MOVEM5T ( CAPITAL1 
NOT ) ! G5]AL !ORY ( ACCUMULATION BAS$ ON ! LAW ( VALUE4 

,! 0C\NT]-T5D5CIES0 M5TION$ BY ,M>X EI!R RET>D ! 
GR[+ ORGANIC COMPOSITION ( CAPITAL1 9CREASE ! RATE ( SURPLUS-VALUE1 OR 
HAVE BO? EFFECTS SIMULTANE\SLY4 ,:AT1 !N1 BECOMES ( ! 0LAW ( ! 
FALL+ RATE ( PR(IT08 ,M>X GIVES NO ANSW]2 NEI!R DOES ,GILLMAN4 ,! 
LATT] TURNS1 9/EAD1 TO ! /ATI/ICAL TE/ ( ! 0LAW40 ,HE 
NOTICES1 ( C\RSE1 ?AT 0! AVAILABLE /ATI/ICS >E NOT 9 ! =M 
EXACTLY SUIT$ TO ! PURPOSE0--AN UND]/ATEM5T IF !RE EV] WAS 
ONE--= 0CAPITALI/ BUS9ESS FIRMS DO NOT REPORT1 NOR DO (FICIAL 
/ATI/ICAL AG5CIES PROCESS !IR /ATI/ICS TO CON=M TO ! ,M>XI/ 
CATEGORIES40 ,NOR C\LD !Y1 ONE MAY ADD1 EV5 IF !Y TRI$ S9CE 
PRICE-RELATIONS >E NOT DIRECT D]IVATIONS ( VALUE-RELATIONS4 ,ABOVE ALL1 
,GILLMAN PO9TS \T1 0!SE /ATI/ICS DO NOT ALL[ US TO SEP>ATE \T ! 
FACTORS :I* AFFECT ! PRODUCTION ( SURPLUS-VALUE FROM ?OSE :I* AFFECT 
ITS REALIZATION1 AS A FULL TE/ ( ! LAW AS ,M>X =MULAT$ IT W\LD 
REQUIRE40 ,H[EV]1 0) ?IS PRECAUTION 9 M9D10 HE ?9KS 
?AT 0!Y CAN BE MADE TO S]VE AS FAIR APPROXIMATIONS = TE/+ ! 
ASSUMPTIONS :I* UND]LIE ! LAW 7#c#a740 

,S9CE WE HAVE NO 9T5TION ( QUE/ION+ ,GILLMAN'S /ATI/ICAL 
COMPILATIONS1 WE WILL ONLY REPEAT !IR RESULTS1 NAMELY1 ?AT = ,AM]ICAN 
CAPITALISM & UP TO #a#i#a#i1 ,M>X'S 0LAW0 F\ND EMPIRICAL 
EVID5CE 9 0A /ABILIZ+ T5D5CY ( ! RATE ( SURPLUS-VALUE1 & A 
FALL+ RATE ( PR(IT CORRESPOND+ 9V]SELY ) A RIS+ ORGANIC 
COMPOSITION 7#e#i740 ,APP>5TLY1 ,M>X KNEW MORE ?AN HE WAS ABLE TO EXPRESS 
OR WAS1 P]HAPS1 JU/ LUCKY 9 ASSUM+ AN ACTUAL FALL ( ! RATE ( PR(IT 9 
! LONG RUN4 ,ON ! O!R H&1 ! DECL9+ PR(IT RATE1 AS DETECT$ BY 
,GILLMAN'S /ATI/ICAL PROC$URE1 MAY HAVE NO?+ TO DO ) ,M>X'S 
0LAW ( ! FALL+ RATE ( PR(IT0 AS A CONSEQU5CE ( ! RIS+ 
ORGANIC COMPOSITION ( CAPITAL1 BUT MAY BE A LOCALIZ$ PECULI>ITY ( ,AM]ICAN 
CAPITAL DEVELOPM5T1 QUITE 9DEP5D5T ( ! 0G5]AL LAW ( CAPITAL 
ACCUMULATION40 ,!RE IS NO WAY ( F9D+ \T1 & ?US ! EVALUATION ( 
,GILLMAN'S DATA REMA9S A MATT] ( 9T]PRETATION4 ,IT DEP5DS ON V>I\S 
PRECONCEPTIONS ) REG>D TO CAPITAL =MATION :E!R ! DATA >E READ AS 
0PRO(0 ( ! VALIDITY ( ,M>X'S 0LAW10 OR AS 
0PRO(0 ( ITS OPPOSITE4 ,= 9/ANCE1 IF ! 0LAW0 
CEASES TO BE OP]ATIVE 9 #a#i#a#i1 ONE CAN EASILY MA9TA9 ?AT1 AFT] ALL1 ONLY 
AT ?AT TIME DID ,AM]ICAN CAPITALISM COME PROP]LY 9TO ITS [N1 SO ?AT ! 
P]IOD PRIOR TO ?IS DATE MAY BE CONSID]$ AS ONE BESET ) ALL ! 
DIFFICULTIES 9 ! WAY ( AN UNFOLD+ CAPITALISM1 :I*1 9 SPITE ( A RAPID 
GR[? ( ITS ORGANIC COMPOSITION1 HAS NOT AS YET ! POSSIBILITY ( FULLY 
P>TAK+ ( ITS CREAT$ SURPLUS-VALUE4 ,BECAUSE ! CREATION & ! DIVISION 
( SURPLUS-VALUE1 9T]NALLY AS WELL AS 9T]NATIONALLY1 >E TWO DIFF]5T 
PROCESSES1 & BECAUSE1 AS ,GILLMAN PO9TS \T1 HIS /ATI/ICS DO NOT SEP>ATE 
! PRODUCTION ( SURPLUS-VALUE FROM ITS REALIZATION1 ! FALL+ RATE ( 
PR(IT--AS SE5 9 ! RETURNS ( ,AM]ICAN BUS9ESS--PROVIDES NO CLUE 
TO ! QUE/ION ( :E!R OR NOT !RE WAS A FALL ( ! RATE ( PR(IT 9 
,M>X'S S5SE4 

,!RE >E V>I\S SPECIFIC REASONS :I* LIMIT$ ! PR(ITABILITY ( 
,AM]ICAN CAPITAL UND] ! CONDITIONS ( ! N9ETE5?-C5TURY WORLD-M>KET 
& ! DOM9ANCE ( ,EUROPEAN CAPITALISM4 ,&1 CONTR>Y TO ,GILLMAN1 ! 
0C\NT]-T5D5CIES0 TO A FALL+ RATE ( PR(IT W]E MORE 
EFFECTIVE AT ?AT TIME ?AN LAT]4 ,= ! RAPID RISE ( ! ORGANIC 
COMPOSITION ( CAPITAL WAS 9DICATIVE ( A RAPID 9CREASE ( SURPLUS-VALUE BY 
WAY ( BO? ! %ORT5+ ( ! NECESS>Y & ! L5G!N+ ( ! 
SURPLUS-LABOR TIME4 ,:ILE IT MAY BE SAID ?AT ! C\NT]ACT+ EFFECT ( 
=EIGN TRADE ON ! FALL+ RATE ( PR(IT WAS LESS EFFICI5T 9 AN E>LY 
/AGE ( DEVELOPM5T ?AN 9 ! /AGE ( ,AM]ICAN IMP]IALISM1 ALL ?AT HAS 
BE5 SAID IS ?AT AT ?IS E>LI] TIME IT WAS CORRESPOND+LY MORE EFFICI5T 
= ! ,EUROPEAN ECONOMIES AT ! EXP5SE ( ,AM]ICAN CAPITAL4 ,WORLD CAPITAL 
W\LD COME NE>E/ TO ! CONCEPT ( 0TOTAL CAPITAL10 TO :I* ! 
FALL+ RATE ( PR(IT RELATES ITSELF1 YET ! UNAVAILABLE DATA = WORLD 
CAPITALISM1 IF !Y W]E AVAILABLE1 W\LD BE JU/ AS IRRELEVANT TO ! PROBLEM 
( ! FALL+ RATE ( PR(IT AS ! HI/ORICAL-/ATI/ICAL MAT]IAL PRES5T$ 
= ,AM]ICAN CAPITALISM4 

,ACCORD+ TO ,GILLMAN1 H[EV]1 AS F> AS ,AM]ICAN MONOPOLY-CAPITALISM IS 
CONC]N$1 ?IS IS A ?+ ( ! PA/4 ,! SAME /ATI/ICAL PROC$URE ?AT 
FIR/ YIELD$ A RIS+ ORGANIC COMPOSITION & A FALL+ RATE ( PR(IT ALSO 
%[S ?AT1 S9CE #a#i#a#i1 ! RATIO BETWE5 CON/ANT & V>IABLE CAPITAL 
0HAS T5D$ TO REMA9 CON/ANT OR EV5 FALL4 ,! RATE ( SURPLUS-VALUE1 
IF ANY?+1 HAS T5D$ TO RISE1 9 SPURTS4 ,& ! RATE ( PR(IT1 RA!R ?AN 
FALL1 HAS T5D$ TO RISE 7#e#i740 ,?IS SUPPOS$LY CONTRADICTS ,M>X'S 
0LAW10 BUT RA!R ?AN SAY ?AT ,M>X WAS WRONG ) REG>D TO 
,AM]ICAN MONOPOLY-CAPITALISM1 ,GILLMAN TAKES ! VIEW 0?AT ! 
TRADITIONAL =MULA 444 TO DEMON/RATE ! OP]ATION ( ! LAW IS 
NOT VALID UND] !SE NEW CONDITIONS 444 BECAUSE ITS T]MS 444 >E TOO 
RIGID TO 5COMPASS & REFLECT ! EFFECTS ( ! NEW TE*NOLOGY & ! NEW 
=MS ( BUS9ESS ORGANIZATIONS ON ! PRODUCTION AS WELL AS ON ! REALIZATION 
( SURPLUS-VALUE 7#f-#f#a740 

,! *ANGES :I* ,GILLMAN REF]S TO CONSI/ 9 0! MATURATION ( ! 
9/ITUTION ( MONOPOLY-CAPITALISM2 ! REVOLUTION 9 ! TE*NOLOGY ( 
PRODUCTION1 :I* ADVANC$ ! PRODUCTIVITY ( LABOR )\T REQUIR+ 
COMP>ABLY L>GE ADDITIONS ( ! CON/ANT CAPITAL2 & ! 9CREAS+ CO/ ( 
DO+ BUS9ESS--! 9CREAS+ CO/ ( ! REALIZATION ( SURPLUS-VALUE 9 
ITS FIR/ =M1 ?AT IS1 9 ! =M ( MONEY CAPITAL ?R\< ! SALE ( 
COMMODITIES 7#f#g740 ,AFT] ,WORLD ,W> ,I1 SO ,GILLMAN RELATES1 9DU/RY 
CONC5TRAT$ 0ON ! ELIM9ATION ( WA/E2 ON ! /&>DIZATION ( 
P>TS1 PRODUCTS1 & PROCESSES2 ON IMPROV+ ! EFFICI5CY ( PLANTS & 
LABOR1 & ON ! DEVELOPM5T ( BYPRODUCTS 7#g#e740 ,& :]EAS IT CAN BE 
PO9T$ \T ?AT ?IS 0RATIONALIZATION0 HAD BE5 GO+ ON ALL 
ALONG1 ACCORD+ TO ,GILLMAN1 IT HAS N[ L$ TO A 0QUALITATIVE 
*ANGE 9 ! NATURE ( CON/ANT CAPITAL1 :I* WAS CONCEAL$ BY ITS 
TRADITIONAL QUANTITATIVE EXPRESSION 7#h740 ,CAPITAL-SAV+ & 
LABOR-SAV+ DEVICES RAIS$ ! RATE ( SURPLUS-VALUE )\T 9CREAS+ ! 
ORGANIC COMPOSITION ( CAPITAL1 ?US SETT+ ASIDE ! LAW ( ! FALL+ RATE 
( PR(IT4 ,BUT AS ! NEW TE*NOLOGY 0T5DS TO M9IMIZE ! CONSUMPTION 
( RAW MAT]IALS P] UNIT ( \TPUT & TO PROLONG ! LIFE ( ! FIX$ 
CAPITAL 9 T]MS ( PRODUCT \TPUT1 IT T5DS ALSO 9 ! LONG RUN TO M9IMIZE 
! DEM& = 9VE/M5T CAPITAL 444 & CREATE A NEW M>KET PROBLEM 
444 & 9T5SIFIES ! PROBLEM ( ! REALIZATION ( SURPLUS-VALUE 
7#h#a740 ,9 BRIEF1 ! APP>5T 5D ( ! CAPITALI/ DILEMMA POS$ BY ! 
T5D5TIAL FALL ( ! RATE ( PR(IT ONLY 9T5SIFIES O!R PROBLEMS & 
CREATES NEW DIFFICULTIES UNSOLVABLE UND] CONDITIONS ( CAPITAL PRODUCTION4 

0,M>XI/S10 ACCORD+ TO ,GILLMAN1 0HAVE T5D$ TO TREAT 
! PROBLEM ( ! FALL+ RATE ( PR(IT *IEFLY 9 T]MS ( ! RATE ( 
CREATION ( SURPLUS-VALUE40 ,BUT 0FROM A /ATI/ICAL OR FACTUAL 
RESE>* PO9T ( VIEW10 HE SAYS1 0IT MU/ BE ASS]T$ ?AT ! 
AM\NT ( SURPLUS-VALUE CREAT$ EXI/S ONLY 9 SO F> AS IT IS REALIZ$ 
7#h#f740 ,& AS REALIZATION ( SURPLUS-VALUE 0IS 9CREAS+LY 
IMPOSSIBLE )\T ! S]VICES ( CL]KS & SALESM5 & ADV]TIS+ WRIT]S1 
& ( GOV]NM5T 444 !SE 'UNPRODUCTIVE' S]VICES 444 >E 
ESS5TIAL TO ! FUNCTION+ ( ! SY/EM 7#h#h740 ,:]EAS BY A M]E 
CONSID]ATION ( SURPLUS-VALUE PRODUCTION 0! T5D5CIES PO/ULAT$ BY 
! ,M>XI/ LAW ( ! FALL+ RATE ( PR(IT APPE> TO BE HALT$ OR EV5 
REV]S$1 BY A CONSID]ATION ( ! GR[? ( ! 'UNPRODUCTIVE' AS 
AGA9/ ! PRODUCTIVE LABOR ! ORIG9AL T5D5CIES >E SE5 TO REASS]T 
!MSELVES 7#a#d740 ,!RE IS !N A FALL+ RATE ( PR(IT1 AFT] ALL1 
DESPITE ! NEW TE*NOLOGY & ! NEW BUS9ESS ORGANIZATIONS2 ONLY IT RELATES 
ITSELF NOT TO ! PRODUCTION BUT TO ! REALIZATION ( SURPLUS-VALUE4 
0,OV]HEAD0 EATS UP ! PR(IT4 

,ACCORD+ TO ,GILLMAN1 !N1 ! SOLUTION ( ! PROBLEM ( ! FALL+ RATE 
( PR(IT 0W\LD SEEM TO LIE 9 ! 9T]ACTION ( ! ANTAGONI/IC 
=CES :I* GOV]N ! CREATION & REALIZATION ( SURPLUS-VALUE 7#a#h740 
,AL?\< ?IS IS NOT ,M>X'S PO9T ( VIEW1 IT IS ALSO NOT TRUE FROM 
,GILLMAN'S POSITION1 = HE DOES NOT REALLY REF] TO ! 
0REALIZATION0 ( SURPLUS-VALUE BUT M]ELY TO ITS DIVISION4 ,:5 ! 
9CREAS+ PRODUCTIVITY ( LABOR DOES NOT F9D EXPRESSION 9 ! ACCUMULATION 
( CAPITAL1 A CRISIS RESULTS--!RE IS A GLUT ON ! COMMODITY M>KET & 
L>GE-SCALE UNEMPLOYM5T4 ,! SURPLUS-VALUE 9CORPORAT$ 9 COMMODITIES CANNOT 
BE 0REALIZ$10 ?AT IS1 TURN$ 9TO ADDITIONAL CAPITAL4 ,BUT IF 
!RE IS RELATIVE CAPITAL /AGNATION & SIMULTANE\SLY NO GLUT ON ! 
COMMODITY M>KET & NO L>GE-SCALE UNEMPLOYM5T1 IT IS CLE> ?AT 
SURPLUS-VALUE1 ?\< NOT REALIZ$ 9 ADDITIONAL CAPITAL1 HAS BE5 REALIZ$ 9 
ANO!R =M--?AT ( 0UNPRODUCTIVE0 CONSUMPTION4 ,IT CAN BE 
>GU$ ?AT ?IS SITUATION RESULTS FROM CAPITALISM'S 9ABILITY TO RAISE 
! RATE ( ACCUMULATION4 ,IT CAN ALSO BE >GU$1 AS ! CAPITALI/S G5]ALLY 
DO1 ?AT ?IS DIVISION ( SURPLUS-VALUE H9D]S ! ACCUMULATION ( CAPITAL1 
= :I* REASON !Y >E 9 CON/ANT /RUGGLE TO CUT 0OV]HEAD0 
& R$UCE 0GOV]NM5T SP5D+40 ,BUT 9 EI!R CASE1 & 
REG>DLESS ( UND]LY+ REASONS1 ?IS IS MORE A QUE/ION ( ! DIVISION ?AN 
( ! REALIZATION ( SURPLUS-VALUE4 

,TO BE SURE1 ,GILLMAN IS AW>E ( ! FACT ?AT UNPRODUCTIVE EXP5DITURES 
0T5D TO EASE ! DISPOSAL ( CONSUM] GOODS & ! REALIZATION ( 
SURPLUS-VALUE AS MONEY-CAPITAL10 :I*1 !N1 0T5D TO L[] ! 
RATE ( ! NET PR(IT 7#a#c#a740 ,9 O!R WORDS1 ! PR(ITS ( PRODUCTIVE 
CAPITAL DECL9E EV5 ?\< ! SOCIAL MASS ( SURPLUS-VALUE RISES & IS 
P>TLY 0REALIZ$0 BY WAY ( UNPRODUCTIVE CONSUMPTION & 
WA/E-PRODUCTION4 ,! FALL ( ! RATE ( PR(IT1 SO TO SPEAK1 AFFECTS NOT 
CAPITALI/ SOCIETY BUT ! CAPITALI/S4 ,!Y HAD NO *ANCE UND] 
LAISSEZ-FAIRE CONDITIONS BECAUSE ( RAPID CAPITAL ACCUMULATION :I* 
BR+S ! RATE ( PR(IT D[N1 & !Y HAVE NO *ANCE N[1 = ! DECL9E ( 
! RATE ( ACCUMULATION ALSO BR+S D[N ! RATE ( PR(IT4 ,IT IS1 !N1 NOT 
REALLY A QUE/ION ( ANTAGONISM BETWE5 ! PRODUCTION & ! REALIZATION ( 
SURPLUS-VALUE1 BUT ( A *ANGE ( CAPITALISM ITSELF1 :I*1 BECAUSE IT CAN NO 
LONG] ACCUMULATE PROGRESSIVELY TO PRIVATE ACC\NT1 *ANGES 9TO A SOCIETY 
9CREAS+LY LESS ORI5T$ TO PRODUCTION ( CAPITAL & MORE ORI5T$ T[>DS 
PRODUCTION = CONSUMPTION4 ,:AT B\RGEOIS !ORY HAD ALWAYS CLAIM$1 & :AT 
,M>X & ! ,M>XI/S HAD ALWAYS D5I$1 NAMELY1 ?AT CAPITALI/ PRODUCTION IS 
PRODUCTION = CONSUMPTION1 IS N[ 9 ! PROCESS ( BE+ FACTUALLY DECID$ 9 
FAVOR ( ! =M] ?R\< ! EVOLUTION ( CAPITALISM 0AS A CONSUMPTION 
ECONOMY40 ,NOT ONLY HAS ! 0LAW ( ! FALL+ RATE ( 
PR(IT0 L$ TO MONOPOLY CAPITALISM & ! NEW TE*NOLOGY1 BUT AT ?IS 
MONOPOLI/IC /AGE1 ! 0FALL+ RATE ( PR(IT0 9DICATES ! 
EV5TUAL 5D ( CAPITAL PRODUCTION4 ,! GREAT] EFFECTIV5ESS ( ! PREVAIL+ 
C\NT] T5D5CIES TO ! FALL+ RATE ( PR(IT1 :I* *ANG$ ! NATURE ( 
CON/ANT CAPITAL QUALITATIVELY1 PROV$1 9 ! 5D1 MORE DISA/R\S TO CAPITAL 
?AN ! RISE ( ! ORGANIC COMPOSITION ( CAPITAL :5 ACCOMPANI$ BY LESS 
EFFECTIVE C\NT]-T5D5CIES4 ,ON ?IS NOTE1 ,GILLMAN'S BOOK 5DS1 LEAV+ 
! PROBLEMS ( 0CAPITALISM AS A CONSUMPTION ECONOMY0 TO ANO!R1 
=?COM+ WORK4 

,ACCUMULATION1 ,CRISES & ,DEPRESSIONS 

,WE DID NOT BO!R TO *ECK ,GILLMAN'S /ATI/ICAL EVID5CE BECAUSE1 
:ILE !Y >E WANT+ 9 MANY IMPORTANT RESPECTS1 WE ?9K !M QUITE 
IRRELEVANT TO ! PROBLEMS UND] DISCUSSION4 ,WE WILL ASSUME ?AT BO? HIS 
PROC$URE & ! /ATI/ICS >E FLAWLESS & ?AT IT IS A 0/ATI/ICALLY 
V]IFIABLE FACT0 ?AT !RE WAS A DROP 9 ! RATE ( PR(IT 9 ! 
C\RSE ( ,AM]ICAN CAPITAL DEVELOPM5T UP TO #a#i#a#i1 & ?AT S9CE ?AT TIME 
!RE HAS AGA9 BE5 SU* A DROP :5 ! 0UNPRODUCTIVELY0 REALIZ$ 
SURPLUS-VALUE IS D$UCT$ FROM ! TOTAL SURPLUS-VALUE4 ,AGA9/ ?IS 
/ATI/ICAL EVID5CE1 H[EV]1 !RE /&S ! NO LESS FACTUAL TRU? ?AT 
,AM]ICAN CAPITALISM DID ACCUMULATE NOT ONLY UP TO #aiai BUT UP TO ! PRES5T1 
AS MANIFE/$ BY ITS VA/ PRODUCTIVE APP>ATUS4 ,! ACCUMULATION PROCESS WAS1 
( C\RSE1 9T]RUPT$ BY V>I\S CRISES & DEPRESSIONS4 ,BUT :5 !SE 
P]IODS ( /AGNATION & DECL9E >E LEFT ASIDE BY1 SAY1 A CONSID]ATION ( 
! YE>LY AV]AGE RATE ( EXPANSION OV] ! LA/ HUNDR$ YE>S1 IT BECOMES 
EVID5T ?AT !SE HUNDR$ YE>S W]E A P]IOD ( /EADY EXPANSION ( 
PRODUCTION & CAPITAL4 

,AL?\< ,GILLMAN WAS NOT ABLE TO F9D A DIRECT /ATEM5T BY ,M>X AS TO :Y 
! RATE ( PR(IT MU/ FALL 9 ! LONG RUN1 HE /ATES NEV]!LESS ?AT 
0! CYCLICAL FALL ( ! RATE ( PR(IT IS 9 ITSELF A CONSEQU5CE ( 
! MATURATION ( SEV]AL T5D5CIES :I*1 9 DIALECTICAL 9T]ACTION ) ITS 
LONG-RUN T5D5CY TO FALL1 G5]ATE ! P]IODIC BREAKD[N ( CAPITALI/ 
PRODUCTION 7#f740 ,?IS CONNECTION BETWE5 ! 0LONG-RUN0 
T5D5CY ( ! RATE ( PR(IT TO FALL & P]IODIC CRISES IS ALSO TO BE F\ND 
9 ,M>X1 EV5 ?\< IT DOES NOT NECESS>ILY FOLL[ FROM HIS AB/RACT VALUE 
ANALYSIS ( CAPITAL ACCUMULATION1 :I* CAN ONLY PO9T \T ?AT UND] C]TA9 
ASSUM$ CONDITIONS ACCUMULATION COMES TO A HALT BECAUSE ( A LACK ( 
SURPLUS-VALUE RELATIVE TO TOTAL CAPITAL4 ,SU* A SITUATION MAY NOT >ISE 9 
REALITY2 YET IT MAY >ISE BY AN EXPANSION ( PRODUCTION :I* 
0\TRUNS0 ! PR(IT CLAIMS ASSOCIAT$ ) IT & YIELDS 
SURPLUS-VALUE1 :I*1 H[EV] L>GE1 IS NOT L>GE 5\< TO ASSURE A FUR!R 
PR(ITABLE CAPITAL EXPANSION4 ,:AT POSSIBLE MEAN+ C\LD ! 
0LAW ( ! FALL+ RATE ( PR(IT0 HAVE ) REG>D TO ! ACTUAL 
ACCUMULATION PROCESS IF IT DID NOT S]VE TO 9DICATE ! POSSIBILITY ( AN 
9CREAS+ LACK ( SURPLUS-VALUE & A CONSEQU5T DISRUPTION ( ! 
ACCUMULATION PROCESS8 ,9 ,GILLMAN'S VIEW1 H[EV]1 0CAPITALISM IS 9 
CRISIS 444 BECAUSE IT PRODUCES TOO MU* SURPLUS-VALUE = ITS ULTIMATE 
REALIZATION 9 ! PROGRESSIVE ACCUMULATION ( PRODUCTIVE CAPITAL 
7#a#b#f740 

,?IS1 TOO1 ( C\RSE1 IS TRUE 9 A S5SE1 BUT IT DOES NOT CONTRADICT 
,M>X'S POSITION ?AT IT IS PRIM>ILY A QUE/ION ( ! PRODUCTION NOT ! 
REALIZATION ( SURPLUS-VALUE :I* ACC\NTS = ! CONTRADICTIONS ( ! 
ACCUMULATION PROCESS4 ,IT IS CLE> ?AT ! 9CREAS+ MASS ( SURPLUS-VALUE 9 
COMMODITY =M MU/ BE SOLD1 & ?AT IF IT CANNOT BE SOLD IT CANNOT BE 
REALIZ$ 9 ADDITIONAL CAPITAL4 ,! DISCREPANCY BETWE5 ! CREATION ( 
SURPLUS-VALUE & ITS REALIZATION APPE>S1 AS HAS ALREADY BE5 PO9T$ \T1 AS 
A GLUT ON ! COMMODITY M>KET1 AS AN OV]-PRODUCTION ( COMMODITIES4 ,SE5 FROM 
! ANGLE ( PRODUCTIVE DEVELOPM5T RA!R ?AN ITS RESULTS1 ! 
OV]-PRODUCTION ( COMMODITIES APPE>S AS AN OV]-PRODUCTION ( CAPITAL4 ,BUT 
! DI/9CTION BETWE5 !M IS IMPORTANT4 ,= ! OV]-PRODUCTION ( CAPITAL 
79CLUD+ ?AT ( COMMODITIES71 9/EAD ( LEAD+ TO A CURTAILM5T ( 
PRODUCTIVITY ONLY ACCEL]ATES IT1 !REBY 9DICAT+ ?AT ! DISCREPANCY 
BETWE5 ! PRODUCTION ( SURPLUS-VALUE & ITS REALIZATION >ISES BECAUSE ( A 
DECL9E 9 ! RATE ( ACCUMULATION4 ,) A SUFFICI5T RATE ( ACCUMULATION1 
!RE W\LD BE NO OV]-PRODUCTION &1 9 FACT1 AS SOON AS ! EXPANSION 
PROCESS IS RESUM$1 ! M>KET BECOMES ONCE MORE :AT IS CONSID]$ 
0NORMAL10 DESPITE ! EV5 L>G] QUANTITIES ( COMMODITIES N[ 
(F]$ = SALE4 ,:AT IS 9VOLV$ H]E IS NOT1 !N1 AN OV]-PRODUCTION ( 
COMMODITIES EI!R 9 RELATION TO ! ABSOLUTE CONSUM+ P[] ( SOCIETY1 OR 
! RELATIVE CONSUM+ P[] 9 CAPITALISM1 BUT AN OV]-PRODUCTION ( 
COMMODITIES 9 RELATION TO ! CAPITALI/ICALLY-LIMIT$ DEM& UND] ! 
P>TICUL> CONDITIONS ( RELATIVE CAPITAL /AGNATION4 ,( C\RSE1 ! REASON = 
?IS /AGNATION MAY BE ! IMPOSSIBILITY ( CONV]T+ ! MASS ( 
SURPLUS-VALUE FROM ITS COMMODITY-=M 9TO A SURPLUS-VALUE-PRODUC+ CAPITAL 
=M4 ,BUT IT MAY ALSO BE ! O!R WAY >\ND3 ! CONV]SION CANNOT TAKE PLACE 
BECAUSE ( ! /AGNATION ( CAPITAL4 ,! FIR/ POSSIBILITY SPR+S FROM ! 
FACT ?AT ! BUY+ & SELL+ ( COMMODITIES & ! CREATION ( 
SURPLUS-VALUE >E SEP>AT$ LOGICALLY AS WELL AS BY TIME & SPACE4 ,AN 
OV]-PRODUCTION ( COMMODITIES MAY ?US ONLY EXPRESS DISPROPORTIONALITIES 9 
! DEVELOPM5T ( ! M>KET /RUCTURE4 ,M>X DID NOT D5Y ?AT OV]-PRODUCTION 
MAY BE CAUS$ BY SU* DISPROPORTIONALITIES1 BUT MORE IMPORTANT TO HIM WAS ! 
CONSID]ATION ( ! O!R POSSIBILITY1 NAMELY1 ?AT ! OV]-PRODUCTION ( 
COMMODITIES SIGNIFIES AN OV]-PRODUCTION1 OR OV]-ACCUMULATION1 ( CAPITAL4 

,= ,M>X1 ! B>RI] TO CAPITALI/ PRODUCTION CONSI/S 9 ! FACT 
0?AT ! DEVELOPM5T ( ! PRODUCTIVE P[] ( LABOR CREATES 9 ! 
FALL+ RATE ( PR(IT A LAW :I* TURNS 9TO AN ANTAGONISM ( ?IS MODE ( 
PRODUCTION AT A C]TA9 PO9T & REQUIRES = ITS DEFEAT P]IODICAL CRISES4 ,9 
! FACT ?AT ! EXPANSION OR CONTRACTION ( PRODUCTION IS DET]M9$ BY ! 
APPROPRIATION ( UNPAID LABOR1 & BY ! PROPORTION ( ?IS UNPAID LABOR TO 
MAT]IALIZ$ LABOR 9 G5]AL1 OR1 TO SPEAK ! LANGUAGE ( ! CAPITALI/S1 IS 
DET]M9$ BY PR(IT & BY ! PROPORTION ( ?IS PR(IT TO ! EMPLOY$ 
CAPITAL1 BY A DEF9ITE RATE ( PR(IT1 9/EAD ( BE+ DET]M9$ BY ! 
RELATIONS ( PRODUCTION TO SOCIAL WANTS4 ,! CAPITALI/ MODE ( PRODUCTION1 = 
?IS REASON1 MEETS ) B>RI]S AT A C]TA9 SCALE ( PRODUCTION :I* W\LD 
BE 9ADEQUATE UND] DIFF]5T CONDITIONS4 ,IT COMES TO A /&/ILL AT A PO9T 
DET]M9$ BY ! PRODUCTION & REALIZATION ( PR(IT1 NOT BY ! SATISFACTION 
( SOCIAL NE$S40.<#a#b.> ,?IS SITUATION1 ! RELATIVE OV]PRODUCTION ( 
CAPITAL1 9VOLV+ ! OV]-PRODUCTION ( COMMODITIES & ?US ! REALIZATION 
PROBLEM1 MEANS ?AT ACCUMULATION HAS REA*$ A PO9T :]E ! PR(ITS 
ASSOCIAT$ ) IT >E NO LONG] L>GE 5\< TO JU/IFY FUR!R EXPANSION4 
,!RE IS NO 9C5TIVE TO 9VE/ & BECAUSE !RE IS NO NEW1 OR NO SUB/ANTIAL 
NEW1 9VE/M5T ( CAPITAL1 ! DEM& = ALL COMMODITIES DECL9ES4 ,! 
RESULT+ G5]AL LACK ( DEM& APPE>S AS ! OV]PRODUCTION ( COMMODITIES1 
& ?IS APP>5T OV]PRODUCTION SUGGE/S ! REALIZATION PROBLEM AS ! CAUSE 
( CRISIS4 

,TO BE SURE1 FROM ! ANGLE ( M>KET OCCURR5CES1 !RE ACTUALLY EXI/S ?IS 
REALIZATION PROBLEM1 ! OV]PRODUCTION ( COMMODITIES & ! DECL9E ( 
CAPITALI/ICALLY-DET]M9$ CONSUM+ P[]4 ,& !RE IS ALSO ! C]TA9TY 
?AT BY 9CREAS+ ! CONSUM+ P[] & ?US AVOID+ ! COMMODITY GLUT1 NO 
REALIZATION PROBLEM C\LD >ISE & ! PRODUCTION PROCESS C\LD BE RESUM$2 
PROVID$1 ( C\RSE1 CAPITALISM W\LD NOT BE CAPITALISM4 ,BUT EV5 
UND] CAPITALI/ CONDITIONS & AFT] A P]IOD ( DEPRESSION1 OV]-PRODUCTION 
& ! REALIZATION PROBLEM DISAPPE> 9 A NEW UPSW+ ?R\< RESUM$ CAPITAL 
ACCUMULATION1 ( :I* ! ACCOMPANY+ 9CREASE ( CONSUMPTION IS JU/ A 
BYPRODUCT & NOT ITS REASON4 ,TO %[ ! ME*ANISM ( RELATIVE OV]PRODUCTION 
( CAPITAL1 ,M>X ASSUM$ CONDITIONS ( AN ABSOLUTE OV]PRODUCTION ( CAPITAL 9 
HIS VALUE-S*EME ( CAPITAL EXPANSION :]E9 ! RIS+ ORGANIC COMPOSITION ( 
CAPITAL DE/ROYS ! PR(ITABILITY ( CAPITAL4 

,UND] CAPITALISM !RE IS NO WAY ( DET]M9+ AT :AT P>TICUL> 
DEVELOPM5TAL PO9T CAPITAL EXPANSION WILL CONFLICT ) ! PR9CIPLE ( 
PR(ITABILITY & ?US R$UCE ! RATE ( ACCUMULATION4 ,) A GIV5 
SATISFACTORY OR RIS+ RATE ( PR(IT1 ALL CAPITALS ATTEMPT EXPANSION4 ,& 
BECAUSE ?IS EXPANSION GOES ON )\T REG>D TO & KN[L$GE ( EXI/+1 
?\< UNDET]M9ABLE1 SOCIAL LIMITS ( EXPLOITATION1 ! 9CREAS$ 
EXPLOITATION IMPLI$ 9 ! EXPANSION PROCESS1 :ATEV] IT MAY BE1 MAY NOT 
SUFFICE TO YIELD A MASS ( SURPLUS-VALUE 9DICAT+ A RATE ( PR(IT ON ! 
5L>G$ TOTAL CAPITAL EQUAL TO A PREVI\S RATE ( PR(IT ( A SMALL] TOTAL 
CAPITAL4 ,NEW 9VE/M5TS1 ORI5T$ TO ! RATE ( PR(IT1 WILL FALL (F OR /OP 
ALTOGE!R & A P]IOD ( DEPRESSION WILL SET 94 ,:E!R AN ACTUAL FALL ( 
! RATE ( PR(IT ?R\< A RELATIVE OV]-EXPANSION ( CAPITAL CAN BE REG>D$ 
AS ! 0CAUSE0 ( CRISIS IS TO BE SE5 NOT 9 ! CRISIS ITSELF BUT 
9 ! P]IOD ( DEPRESSION1 :I* PREP>ES ! WAY = ! RESUMPTION ( ! 
ACCUMULATION PROCESS4 

,DUR+ P]IODS ( DEPRESSION ATTEMPTS >E MADE TO BR+ ! PRODUCTION 
PROCESS ONCE AGA9 9TO H>MONY ) ! VALUE-EXPANSION PROCESS4 ,JU/ AS ! 
CRISIS LAYS B>E ! DESCREPANCY BETWE5 MAT]IAL & VALUE PRODUCTION & ! 
APPROA* ( ! CRISIS IS SIGNALIZ$ BY A SLACK5+ RATE ( 9VE/M5T1 
OV]PRODUCTION & UNEMPLOYM5T1 SO ! WAY \T ( ! DEPRESSION IS EFFECT$ 
BY CLOS+ ! GAP BETWE5 EXPANSION & PR(ITABILITY1 BY A RESULT+ 9CREASE 
( NEW 9VE/M5TS & A CONSEQU5T 0NORMALIZ+0 ( ! COMMODITY 
& LABOR M>KET4 ,! P]IODICITY ( ! CRISES /EMS FROM ! ABILITY ( 
CAPITALISM TO OV]COME ! RELATIVE OV]PRODUCTION ( CAPITAL ?R\< AN 
ALT]+ ( ! CONDITIONS ( PRODUCTION4 

,A CRISIS DOES NOT JU/ />T BUT />TS 9 C]TA9 9DU/RIES1 EV5 ?\< 
ITS CAUSE LIES 9 ! TOTAL SOCIAL SITUATION4 ,LIKE ! CRISIS1 ! UPSW+1 
TOO1 />TS 9 C]TA9 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 ,! CRISIS1 H[EV]1 DOES 
NOT PICTURE ! REAL SITUATION4 ,JU/ AS ! UPSW+ EXAGG]ATES PR(IT 
EXPECTATIONS1 SO ! CRISIS EXAGG]ATES DECL9+ PR(ITABILITY4 ,9 EI!R 
DIRECTION ! COMPETITIVE PROCESS T5DS TO EXTREMES & HA/5S BO? ! 
OV]-PRODUCTION ( CAPITAL & ! REORGANIZATION ( ! CAPITAL /RUCTURE4 ,! 
CRISIS ITSELF IS M]ELY ! PO9T AT :I* ! REV]SAL ( BUS9ESS CONDITIONS 
IS PUBLICLY RECOGNIZ$4 ,A DEPRESSION MAY 0SNEAK0 9TO EXI/5CE BY 
A GRADUAL SL[+ D[N ( ECONOMIC ACTIVITY OR IT MAY BE 9ITIAT$ BY A 
DRAMATIC 0CRA%0 ) SUDD5 BANK FAILURES & ! COLLAPSE ( ! 
/OCK M>KET4 ,:ATEV] ! CIRCUM/ANCES SURR\ND+ ! REV]SAL ( ! 
ECONOMIC TR5D1 IT IS ACCOMPANI$ BY AN OV]PRODUCTION ( COMMODITIES4 ,VIEW$ 
9 RETROSPECT1 EV5 ! LA/ PHASES ( ! BOOM PREC$+ ! CRISIS >E 
ALREADY UNPR(ITABLE1 BUT RECOGNITION ( ?IS FACT HAS TO AWAIT ! V]DICT ( 
! M>KET4 ,COMMITM5TS MADE ON ! ASSUMPTION ( A CONT9U\S UPW>D TR5D 
CANNOT BE MET4 ,! CONV]SION ( CAPITAL FROM COMMODITY TO MONEY =M BECOMES 
9CREAS+LY MORE DIFFICULT4 ,! CRISIS ( PRODUCTION IS A F9ANCIAL CRISIS4 
,! NE$ = LIQUID FUNDS & ! ATTEMPTS TO AVOID GREAT] LOSSES 9T5SIFY 
! FALL ( SECURITIES & COMMODITY PRICES4 ,COMPETITION BECOMES G5]ALLY 
CUT?ROAT COMPETITION &1 = SOME BUS9ESSES1 PRICES >E =C$ D[N TO ! 
PO9T ( RU94 ,CAPITAL VALUES >E RAPIDLY DEPRECIAT$1 =TUNES LO/1 9COMES 
WIP$ \T4 ,SOCIAL DEM& FUR!R DECL9ES AS ! NUMB] ( UNEMPLOY$ GR[S & 
! COMMODITY GLUT IS *ECK$ ONLY BY ! /ILL FA/] DECL9E ( PRODUCTION4 
,! CRISIS EXT5DS 9TO ALL SPH]ES & BRAN*ES ( ! ECONOMY &1 9 ?IS 
G5]AL =M1 REVEALS ! SOCIAL 9T]DEP5D5CE ( ! CAPITALI/ MODE ( 
PRODUCTION DESPITE PRIVATE PROP]TY RELATIONS :I* CONTROL ITS TR5D4 

,AFT] A P]IOD ( PANIC1 H[EV]1 ! CAPITALI/ ECONOMY REORI5TS ITSELF 
T[>DS A NEW /ABILITY UND] *ANG$ CONDITIONS4 ,CAPITAL VALUES HAVE BE5 
DE/ROY$ & DEPLET$1 PR(IT CLAIMS HAVE BE5 CONSID]ABLY R$UC$ &1 
?\< ! PRODUCTIVE APP>ATUS HAS SOME:AT DET]IORAT$ BY NEGLECT & 
9SUFFICI5T REPLACEM5T1 ! GREAT BULK ( CON/ANT CAPITAL 9 ITS PHYSICAL 
=M HAS NOT BE5 ALT]$4 ,! MAT]IAL-TE*NICAL COMPOSITION ( CAPITAL IS 
/ILL L>GELY ! SAME1 BUT ITS VALUE-COMPOSITION HAS BE5 L[]$4 ,MORE 
USE-VALUE 9 ! =M ( MEANS ( PRODUCTION REPRES5TS N[ A SMALL] 
EX*ANGE-VALUE4 ,BY C\NT+ = LESS )\T BE+ LESS1 ! RELATION%IP 
BETWE5 V>IABLE & TOTAL CAPITAL IS MORE FAVORABLE AS REG>DS PR(ITABILITY4 
,AS BE=E1 A GIV5 QUANTITY ( ! MEANS ( PRODUCTION WILL REQUIRE A GIV5 
QUANTITY ( LABOR1 BUT FROM ! VIEWPO9T ( VALUE1 ! GR[+ DISCREPANCY 
BETWE5 V>IABLE & CON/ANT CAPITAL HAS BE5 >RE/$ OR R$UC$4 ,NO?+ HAS 
*ANG$ ) REG>D TO ! PRODUCTIVITY ( LABOR & ! RATE ( EXPLOITATION2 
YET1 ! PR(ITABILITY HAS BE5 IMPROV$ S9CE ! MASS ( SURPLUS-VALUE CAN 
N[ RELATE ITSELF TO A SMALL] VALUE ( TOTAL CAPITAL4 ,! DE/RUCTION ( 
CAPITAL VALUES CONC5TRATES CAPITAL 9 FEW] H&S2 WEAK] CAPITAL 5TITIES 
SELL \T TO ! /RONG]1 (T5 AT PRICES ?AT HAVE NO RELATION TO EV5 ! 
R$UC$ VALUE ( ! MEANS ( PRODUCTION OR TO ! COMMODITIES ?AT >E BE+ 
TRANSF]R$4 ,CAPITAL 5TITIES ABLE TO WEA!R ! DEPRESSION 
0ACCUMULATE0 MEANS ( PRODUCTION ALREADY ACCUMULAT$ BY !IR 
=M] [N]S4 ,:AT ONE CAPITALI/ LOSES1 ANO!R GA9S4 ,BY ITSELF ?IS 
TRANSF] ( PROP]TY IS SOCIALLY MEAN+LESS4 ,BUT ) REG>D TO ! FUTURE IT 
EASES ! RECOV]Y PROCESS4 ,BY 9CREAS+ ! PRODUCTIVE CAPACITY ( ! MORE 
/ABLE CORPORATIONS )\T 9CREAS+ !IR VALUE TO ! SAME DEGREE1 IT 
9CREASES !IR PR(ITABILITY4 

,SOME K9D ( 0EQUILIBRIUM0 IS ?US E/ABLI%$ BETWE5 ! GIV5 
SCALE ( PRODUCTION & ITS PR(ITABILITY1 :I* S]VES AS A />T+ PO9T = 
AN UPW>D BUS9ESS TR5D4 ,! NEW 0FOO?OLD0 ?US GA9$ IS 
UTILIZ$1 SO TO SPEAK1 TO MAKE SOME FUR!R /EPS 9 ! DIRECTION ( SECURITY 
BY WAY ( ACCUMULATION4 ,9T5SIFI$ COMPETITION & ! DECL9E ( PRICES S]VE 
AS 9C5TIVES TO 9CREASE PRODUCTIVITY & TO GA9 EXCEPTIONAL PR(ITS ?R\< 
! EMPLOYM5T ( NEW WORK+ TE*NIQUES & NEW MA*9]Y4 ,PROLONG$ 
DEPRESSION MAKES POSSIBLE A L[]+ ( WAGES & A HI<] 9T5SITY ( LABOR4 
,9 BRIEF1 ! CONDITIONS ( CAPITAL PRODUCTION BECOME MORE FAVORABLE1 ! 
DEM& = CAPITAL BEG9S TO RISE1 & ! CYCLE CAN RUN ITS C\RSE ONCE 
MORE4 

,DESPITE 9T]MITT5T P]IODS ( DEPRESSION1 EA* UPSW+ ( CAPITAL 
PRODUCTION REA*ES A HI<] PO9T & WID] EXT5SION ?AN AT ITS PREVI\S PEAK 
( DEVELOPM5T4 ,!RE >E FEW] CAPITALI/ 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 BACK4 ,BUT ?IS TYPE 
( LOCOMOTION DOES NOT H9D] ! G5]AL ADVANCE1 IT ONLY SL[S IT UP4 
,DISREG>D+ ! HECTIC FLUCTUATIONS ( EXPANSION & CONTRACTION1 ! MANY 
UPHEAVALS & SOCIAL /RUGGLES ?AT CAPITAL DEVELOPM5T 9VOLVES1 & LOOK+ 
AT ! :OLE CAPITALI/ DEVELOPM5T AS A CONT9U\S & /EADY PROCESS1 IT 
APPE>S ?AT ! RATE ( DEVELOPM5T IS QUITE MOD]ATE4 ,TO SPEAK1 !N1 ( ! 
CAPITALI/ CRISIS OR ! 0BUS9ESS-CYCLE0 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 !IR SELF-5=CEM5T BY WAY ( CRISIS4 ,AS ) ANY REGULATIVE 
ME*ANISM 9 CAPITALISM1 ! RELATION%IP BETWE5 PRODUCTION & PR(ITABILITY 
MU/ FIR/ BE REGULAT$ 79 ORD] TO REGULATE ANY?+ AT ALL7 & ! 
COMPETITIVE ME*ANISM MU/1 9 ! V]Y PROCESS ( G5]AL ADJU/M5T FIR/ 
REE/ABLI% OR MA9TA9 A SOCIAL AV]AGE RATE ( PR(IT ?AT ALL[S = ! 
EXPANSION ( CAPITAL4 

,AL?\< MU* MORE NE$ BE SAID AB\T ,M>X'S !ORY ( ACCUMULATION1 
:I* IS ALSO A !ORY ( CRISIS1 :AT HAS ALREADY SAID IS SUFFICI5T TO %[ 
?AT = ,M>X ! CAPITALI/ PROBLEM IS ONE ( ! PRODUCTION ( SURPLUS-VALUE 
:I* DET]M9ES ! EXI/5CE ( ! REALIZATION PROBLEM & ( ! V>I\S 
M>KET EXPRESSIONS ( ! CRISIS4 ,GILLMAN MAY AGREE ) ?IS DESCRIPTION ( 
! SO-CALL$ BUS9ESS-CYCLE AS VALID = ! PRE-MONOPOLI/IC /AGE ( CAPITAL 
DEVELOPM5T1 EV5 ?\< IT W\LD CONTRADICT HIS RE=MULATION ( ,M>X'S 
0LAW ( ! FALL+ RATE ( PR(IT10 :I* DID NOT REALLY REF] TO 
! CONTRADICTION 9H]5T 9 CAPITAL ACCUMULATION BUT TO ! FACT 
?AT CAPITALI/ PRODUCTION IS NOT PRODUCTION = ! SATISFACTION ( HUMAN 
WANTS4 ,& ?IS1 ( C\RSE1 IS ALSO TRUE4 ,:5 ,M>X /ATES ?AT ! 
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 ! LIMIT10.<#a#c.> 
?IS OBVI\S DISCREPANCY BETWE5 PRODUCTION & CONSUMPTION1 ?\< A 
CONDITION ( CAPITALI/ EXI/5CE1 DOES NOT ALT] ! FACT ?AT IT IS ALSO 
A CONTRADICTION BETWE5 PRODUCTION & CONSUMPTION4 ,9 ,M>X'S VIEW1 ! 
CRISIS CANNOT BE ABOLI%$ BY EI!R A R$UCTION ( PRODUCTION1 AN 9CREASE ( 
CONSUMPTION1 NOR BY COORD9AT+ BO?4 ,TO CO-ORD9ATE BO? W\LD BE EQUIVAL5T 
TO 5D+ CAPITALI/ PRODUCTION ITSELF4 ,NEI!R CAPITALI/ CRISIS NOR 
CAPITALI/ PROSP]ITY CAUSES OR ELIM9ATES UND]-CONSUMPTION OR OV]PRODUCTION2 
!Y M]ELY REF] TO MORE OR LESS ( BO?1 9 :I* A WID5+ DISEQUILIBRIUM 
APPE>S AT TIMES AS AN APP>5T EQUILIBRIUM4 

,GILLMAN MAY PO9T \T ?AT ! 0QUALITATIVE0 *ANGE ( 
CON/ANT CAPITAL *ANGES ! CRISIS FROM ONE ( RELATIVE & TEMPOR>Y 
OV]PRODUCTION ( CAPITAL 9TO ONE ( ABSOLUTE & P]MAN5T OV]PRODUCTION1 AS 
SIGNIFI$ BY A /ATIC1 OR DECL9+1 RATE ( ACCUMULATION1 & ?AT IT IS ?IS 
NEW SITUATION :I* DOES AWAY ) ! PROBLEM ( ! PRODUCTION ( 
SURPLUS-VALUE & RAISES ! REALIZATION PROBLEM TO FIR/ PLACE--TO ! 
CAPITALI/ PROBLEM P] SE4 ,IF ?IS IS SO1 ,GILLMAN IS NOT DEAL+ ) 
! TYPE ( CAPITALISM ,M>X DEALT )1 BUT ) A NEW TYPE ( CAPITALISM1 NO 
LONG] SUSCEPTIBLE TO ,M>XIAN ANALYSIS4 ,BUT :Y1 !N1 BO!R ) ! 
0FALL+ RATE ( PR(IT80 ,IF IT IS TRUE ?AT 0! CONDITIONS 
:I* BLOCK ! REALIZATION ( SURPLUS-VALUE CONT9UE TO DRIVE SURPLUS-VALUE 
9CREAS+LY 9TO *ANNELS ( UNPRODUCTIVE EXP5DITURES 7#a#a710 !N Y\ 
HAVE 9CREAS+LY LESS 0ACCUMULATION = ! SAKE ( 
ACCUMULATION0--:I* =MS ! ,M>XIAN REASON = ! 
CRISIS--BUT1 9 ALWAYS GREAT] MEASURE1 PRODUCTION = CONSUMPTION & 
WA/E4 ,:ATEV] ELSE IT MAY BE1 ?IS IS NOT CAPITALI/ PRODUCTION 9 ! 
TRADITIONAL S5SE4 

,BUT IS IT REALLY NECESS>Y TO RELATE A 0QUALITATIVE0 *ANGE ( 
CAPITALISM TO A 0QUALITATIVE0 *ANGE ( CON/ANT CAPITAL8 ,EV5 IF 
CON/ANT CAPITAL IS 0*EAP5$0 BY CAPITAL-SAV+ NEW TE*NOLOGY1 
& EV5 IF ! MASS ( SURPLUS VALUE IS TOO L>GE TO BE ABSORB$ AS ADDITIONAL 
CAPITAL 9 ,AM]ICA1 :Y CAN IT NOT BE REALIZ$ SOME:]E ELSE8 ,= 9 
! WORLD AT L>GE !RE IS NO OV]PRODUCTION ( CAPITAL1 NO CAPITAL-SAV+ NEW 
TE*NOLOGY &1 MO/ ( ALL1 NO ABUNDANCE ( SURPLUS-VALUE4 ,9 REALITY1 !N1 
,AM]ICAN CAPITAL IS UNABLE TO REALIZE ITS SURPLUS-VALUE 9 ADDITIONAL 
CAPITAL-PRODUC+ CAPITAL NOT BECAUSE ( ! NEW TE*NOLOGY & ! NEW 
BUS9ESS ORGANIZATIONS1 BUT BECAUSE ! EXPANSION ( CAPITAL F9DS LIMITS 9 
ITS NATIONAL =M ( DEVELOPM5T4 ,)\T !SE NATIONAL LIMITS ! REALIZATION 
PROBLEM1 AS RELAT$ BY ,GILLMAN1 W\LD NOT EXI/ & CRISES W\LD ONCE AGA9 BE 
EXPRESSIONS ( A DEVELOP+ DISCREPANCY BETWE5 MAT]IAL & VALUE PRODUCTION4 
,VIOL5T ATTEMPTS >E !N MADE TO BRIDGE NATIONAL LIMITATIONS TO CAPITAL 
EXPANSION AT ! EXP5SE ( O!R NATIONS4 ,= ! CRISIS N[ REQUIRES NOT ONLY 
RATIONALIZATION ( 9DU/RY1 CAPITAL DE/RUCTION1 CONC5TRATION & 
C5TRALIZATION1 BUT A G5]AL REORGANIZATION ( ! ECONOMIC & SOCIAL 
/RUCTURES ON AN 9T]NATIONAL SCALE4 

,CAPITALISM IS 9 CRISIS NOT BECAUSE ( AN ABUNDANCE ( SURPLUS-VALUE BUT 
BECAUSE IT CANNOT RAISE ! SURPLUS-VALUE %ORT ( REORGANIZ+ ! WORLD 
CAPITAL /RUCTURE4 ,ECONOMIC DEPRESSION AS ! 0EQUILIBRAT+0 =CE 
( CAPITAL PRODUCTION IS NO LONG] EFFECTIVE 5\< TO CREATE CONDITIONS = 
! RESUMPTION ( CAPITAL ACCUMULATION ON A PROGRESSIVE SCALE4 ,! FUNCTIONS ( 
DEPRESSION >E TAK5 OV] BY W> & CONSEQU5TLY BY PREP>ATION = W>1 &1 
AS 9 ORD9>Y DEPRESSION1 ! PR(ITABILITY ( CAPITAL DECL9ES AS A 
PRECONDITION = ITS LAT] RISE4 ,IT IS /ILL ! ME*ANISM UND]LY+ 
,M>X'S !ORY ( ACCUMULATION4 ,BUT :E!R IT WILL ONCE MORE SUCCE$ 9 
CREAT+ FAVORABLE CONDITIONS = PURPOSES ( CAPITAL ACCUMULATION IS NOT AN 
0ECONOMIC0 QUE/ION BUT A QUE/ION ( SOCIAL OCCURR5CES ON A 
NATIONAL & 9T]NATIONAL SCALE4 ,BUT1 !N1 ?AT WAS TRUE = ANY P]IOD ( 
CRISIS & DEPRESSION1 :I* ALWAYS CONTA9$ ! POSSIBILITY ( SOCIAL ACTION 
AIM$ AT 5D+ ALL CAPITALI/ DIFFICULTIES BY 5D+ ! CAPITALI/ 
SY/EM4 

,MOREOV]1 BECAUSE NO 0PURELY ECONOMIC PROBLEMS0 EXI/1 
CAPITALI/ CRISIS CONDITIONS >E1 9 P>T1 P>TIAL TRANS=MATIONS ( 
CAPITALISM1 AFFECT+ ITS V>I\S SOCIAL LAY]S 9 DIFF]5T WAYS4 ,CAPITAL 
/AGNATION1 COMB9$ ) AN EXTRAORD9>Y GR[? ( SURPLUS-VALUE )9 A 
SETT+ ( EV]-?REAT5+ W>1 ALL[S SOME SOCIAL GR\PS TO APPROPRIATE1 OR 
DIV]T TO !MSELVES SURPLUS-VALUE :I*1 UND] DIFF]5T CONDITIONS1 W\LD NOT 
BE AT !IR DISPOSAL4 ,! EXTRAORD9>Y APPROPRIATION ( SURPLUS-VALUE BY 
UNPRODUCTIVE LAY]S ( SOCIETY IS ?US M]ELY ANO!R 9DICATION ( CAPITALISM 
9 CRISIS4 ,& IF ?IS CRISIS %\LD PROVE TO BE 0P]MAN5T0 IT 
WILL1 9 TIME1 ALT] ! :OLE SOCIAL /RUCTURE ( CAPITALISM4 

,?IS IS ALSO ON ,GILLMAN'S M9D1 0,:5 CAPITALI/ 
9VE/M5T10 HE WRITES1 0MU/ BE 9CREAS+LY GE>$ TO ! 
EXPANSION ( CONSUMPTION2 :5 9VE/M5T CAN NO LONG] F9D ITS RAISON 
D'ETRE 9 ! ACCUMULATION ( CAPITAL P] SE1 !N CAPITALISM 
COMES TO ! 5D ( ITS 'HI/ORICAL MISSION' & MU/ CEASE TO GR[ 
AS A SY/EM ( SOCIAL PRODUCTION 7#a#e#f740 ,BUT ,GILLMAN'S V]Y 
MODIFICATION ( ,M>X'S 0LAW ( ! FALL+ RATE ( PR(IT0 
TURNS HIS DESCRIPTION ( ! CURR5T CAPITALI/ DILEMMA 9TO A TYPE ( 
,KEYNESIAN DESCRIPTION 9 ,M>XI/ T]MS4 ,LIKE ,KEYNES1 ,GILLMAN SPEAKS ( A 
0MATURE0 CAPITALISM & ,KEYNES' 0LIQUIDITY 
PREF]5CE0 IS ,GILLMAN'S R$UC$ RATE ( ACCUMULATION4 
,GILLMAN'S DIFFICULTIES 9 ! 0REALIZATION0 ( SURPLUS-VALUE 
APPE> 9 ,KEYNES AS L>GE-SCALE UNEMPLOYM5T LEAD+ TO GOV]NM5T ACTIONS ?AT 
9CREASE NONPRODUCTIVE CONSUMPTION4 ,AL?\< ,KEYNES FAVOR$ BO? AN 9CREAS$ 
9C5TIVE TO 9VE/ & AN 9CREAS$ PROP5SITY TO CONSUME1 9 HIS VIEW EV5 
! LATT] BY ITSELF PROVIDES ! POSSIBILITY ( AN ESCAPE FROM ! CONDITIONS 
( UNEMPLOYM5T BY A P>TIAL BREAK ) ! PR9CIPLE ( PR(ITABILITY4 
,H[EV]1 :AT ,KEYNES DID NOT BO!R TO SAY ,GILLMAN SAYS1 NAMELY1 ?AT ?IS 
PROCESS1 IF CONT9U$ = LONG1 MU/ LEAD TO ! EV5TUAL DE/RUCTION ( 
PRIVATE CAPITAL4 ,( C\RSE1 ,GILLMAN CONNECTS ! 0?REAT ( CONV]SION ( 
CAPITALISM 9TO A CONSUMPTION ECONOMY10 ) A CON/ANT CAPITALI/ 
0/RUGGLE TO ESCAPE CRUCIFIXION ON ! CROSS ( A CONSUMPTION 
ECONOMY10 & ) 0SOCIAL1 ECONOMIC1 POLITICAL & MORAL 
CONFLICTS1 NATIONAL & 9T]NATIONAL1 :I* !SE & RELAT$ CONDITIONS 
G5]ATE 9 TIME 7#a#e#i740 ,BUT FROM HIS POSITION1 PRESSURE 9 ! DIRECTION 
( ! 0CONSUMPTION ECONOMY0 MU/ CONT9UE TO EX]T ITSELF SO ?AT 
IT IS JU/ A QUE/ION ( TIME :5 ! 0ACCUMULATION = ! SAKE ( 
ACCUMULATION0 COMES TO AN 5D4 

,?AT ! CONT9U\S 9CREASE ( ! SO-CALL$ 0PUBLIC SECTOR0 
OV] ! PRIVATE SECTOR ( ! ECONOMY WILL LEAD EV5TUALLY TO A =M ( /ATE 
CAPITALISM IS TO BE EXPECT$4 ,BUT ! LATT] IS NOT A 0CONSUMPTION 
ECONOMY40 ,TO BE SURE1 0CONSUMPTION ECONOMY0 DOES NOT MEAN AN 
9CREASE 9 ! CONSUM+ P[] ( ! LABOR+ POPULATION1 AL?\<1 ACCORD+ 
TO ,GILLMAN1 ?IS IS TRUE TO SOME EXT5T4 ,IT MEANS 0UNPRODUCTIVE 
CONSUMPTION0 DUE TO ! GR[? ( NONPRODUCTIVE LAY]S ( SOCIETY & 
0CONSUMPTION0 BY WAY ( WA/E PRODUCTION1 SU* AS >MAM5TS4 ,! 
UND]LY+ ASSUMPTION ?AT !RE IS TOO MU* SURPLUS-VALUE = ! EXPANSION ( 
PRODUCTIVE CAPITAL ALL[S1 H[EV]1 = ANO!R ASSUMPTION1 NAMELY1 ?AT 
CAPITALI/ SOCIETY CAN OV]COME ITS CRISIS BY AN ACCOMMODATION TO ?IS NEW 
SITUATION ?R\< GOV]NM5T-DIRECT$ DI/RIBUTION ( SURPLUS-VALUE4 ,?IS WAS 
9DE$ ! >GUM5T ( ?OSE ,KEYNESIANS :O PO9T$ \T ?AT FULL EMPLOYM5T1 
MADE POSSIBLE BY W> & DE/RUCTION1 WAS EQUALLY POSSIBLE UND] CONDITIONS ( 
PEACE BY *ANNEL+ PRODUCTION 9TO DIRECTIONS ?AT 9CREAS$ ! CONSUM+ 
P[] ( SOCIETY & ITS G5]AL WELF>E4 ,H[EV] UNREALI/IC !SE ASSUMPTIONS 
>E 9 A 0MIX$ ECONOMY0 /ILL DOM9AT$ BY PRIVATE CAPITAL1 !Y 
DO /EM FROM ! NOTION ?AT CAPITALISM F9DS ITSELF 9 CRISIS BECAUSE ( AN 
ABUNDANCE ( SURPLUS-VALUE4 ,GILLMAN DOES NOT %>E ! NAIVETE ( ! 
,KEYNESIANS4 ,YET1 ON ! BASIS ( HIS !ORY1 ! SOLUTION TO ! SOCIO-ECONOMIC 
PROBLEMS ( TODAY SEEMS TO LIE 9 COMPLET+ ! DEPRIVATIZATION ( CAPITAL AS 
! SOLE NECESS>Y M$IUM = TRANS=M+ ! PREVAIL+ SOCIAL 
PRODUCTION PROCESS 9TO ONE 9 :I* NOT ! ACCUMULATION ( CAPITAL BUT ! 
CONSUMPTION REQUIREM5TS ( SOCIETY BECOMES ! DET]M9+ FACTOR4 

,! TR5D TO GOV]NM5T CONTROL ( ! ECONOMY IS1 H[EV]1 ONLY ANO!R 
PHASE ( ! C5TRALIZATION & CONC5TRATION PROCESS ( CAPITAL ACCUMULATION 
FROM LAISSEZ-FAIRE CAPITALISM TO MONOPOLY CAPITALISM1 & !NCE TO 
/ATE CAPITALISM4 ,& AS ! NATIONAL *>ACT] ( /ATE-CAPITALISM CONT9UES 
COMPETITIVE PRODUCTION ON AN 9T]NATIONAL SCALE1 PRODUCTION 9 ! /ATE 
CAPITALI/ SY/EM IS GE>$ NOT TO CONSUMPTION BUT TO 9T]NATIONAL P[] 
/RUGGLES 9 V>I\S ATTEMPTS TO OV]COME NATIONAL LIMITS TO ! EXPANSION ( 
DIV]SE NATIONAL CAPITALISMS4 ,MOREOV]1 BY RETA9+ ! CLASS RELATION%IP ( 
CONTROLL]S & CONTROLL$1 /ATE CAPITALISM1 TO MAKE ITSELF POSSIBLE1 REQUIRES 
A CONT9UATION ( PROLET>IAN CONDITIONS ( EXI/5CE = ! WORK+ 
POPULATION4 ,PRODUCTION & DI/RIBUTION WILL CONSEQU5TLY NOT BE GE>$ TO 
SOCIAL CONSUMPTION BUT TO ! REPRODUCTION ( ! EXI/+1 ?\< 
MODIFI$1 CLASS RELATION%IP4 ,9 O!R WORDS1 ! 5D+ ( 0PRODUCTION 
= ! SAKE ( PRODUCTION0 9 0PLANN$ /ATE CAPITALISM0 
DOES NOT 9VOLVE ! 5D ( EXPLOITATIVE SURPLUS-VALUE PRODUCTION4 ,AFT] ALL1 
0ACCUMULATION = ! SAKE ( ACCUMULATION0 IS ONLY PRODUCTION = 
! CAPITALI/ CLASS UND] FETI%I/IC CONDITIONS ( CAPITAL PRODUCTION4 
,GETT+ RID ( ! FETI%I/IC ASPECTS ( CAPITAL PRODUCTION /ILL LEAVES 
PRODUCTION 9TACT = CAPITALI/S1 EV5 ?\< !SE 0CAPITALI/S0 
>E NO LONG] PRIVATE [N]S ( CAPITAL RES\RCES BUT ORGANIZ$ PLUND]]S ( 
SURPLUS-VALUE BY VIRTUE ( POLITICAL CONTROL OV] ! MEANS ( PRODUCTION4 

.<#a.>4 ,CAPITAL1 ,VOL4 ,I,I,I1 P4 #b#f#a4 

.<#b.>4 ,M>X1 ,!ORI5 UB] D5 ,MEHRW]T 7,/UTTG>T1 #a#i#e71 ,VOL4 ,I,I1 P4 #b#f#d4 

.<#c.>4 ,DIE ,AKKUMULATION DES ,KAPITALS1 OD] WAS DIE ,EPIGON5 AUS D] ,M>X'S*5 ,!ORIE GEMA*T HAB5 7,LEIPZIG1 #a#i#b#a71 P4 #c#h4 

.<#d.>4 ,!ORI5 UB] D5 ,MEHRW]T 7,/UTTG>T1 #a#i#e71 ,VOL4 ,I1 P4 #b#h#f4 

.<#e.>4 ,CAPITAL1 ,VOL4 ,I,I,I1 P4 #b#i#b4 

.<#f.>4 ,IBID41 P4 #b#i#c4 

.<#g.>4 ,LETT] TO ,KUGELMANN 7,MOSC[1 #a#i#c#d71 P4 #g#d4 

.<#h.>4 ,= 9/ANCE3 ,H5RYK ,GROSSMANN1 ,DAS ,AKKUMULATIONS- UND ,ZUSAMM5BRU*SGESETZ DES ,KAPITALI/IS*5 ,SY/EMS 7,LEIPZIG1 #a#i#b#i74 

.<#i.>4 ,NUMB]S 9 P>5!SES REF] TO ,GILLMAN'S BOOK4 

.<#a.>4 ,CAPITAL1 ,VOL4 ,I,I,I1 P4 #b#h4 

.<#a#a.>4 ,IBID41 PP4 #b#g#b-#h#b4 

.<#a#b.>4 ,CAPITAL1 ,VOL4 ,I,I,I1 P4 #c#c4 

.<#a#c.>4 ,CAPITAL1 ,VOL4 ,I,I,I1 P4 #e#f#h4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #b1 #bba 3 ,VALUE ,!ORY & ,CAPITAL ,ACCUMULATION -- ,ADD$4 
,JANU>Y #h1 #bbb 3 ,VALUE ,!ORY & ,CAPITAL ,ACCUMULATION -- ,UPDAT$4 

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