G. Carchedi

Abstract

A fundamental tenet of Marx’s theory of history and revolution is the contradiction between labour’s productive forces and the capitalist production relation. ‘At a certain stage of development the material productive forces of society come into conflict with the existing relations of production … From forms of development of the productive forces these relations turn into their fetters’ (Marx). Traditionally, this has been read within the context of a theory of transition from capitalism to socialism or communism. But it applies just as well to the transition from one phase of capitalist development to the following. The specific characteristic of this phase, which started after WWII, is that this contradiction has become increasingly explosive as revealed by the persistent fall both in the rate of profit and in the new value produced. This indicates that we are witnessing the exhaustion of the present phase of capitalism. No economic policy measures, either neo-liberal or Keynesian, can hold this process back. Thus the first question addressed by this article is: why and how is the present phase coming to an end? Related to this question there is Gramsci’s 1930 reflection, which still applies nowadays: ‘the old is dying [but] the new cannot be born.’ Gramsci meant the radically new, communism. If the radically new cannot be born, the old will resurrect, but in a new shape. The second crucial question is then: what could this new shape be? This article submits answers to both questions. These answers are supported by robust empirical evidence.

Keywords

Money rate of profit, Value rate of profit, Constant exploitation rate of profit, Crises, Neo-liberal anti-cyclical measures, Keynesian anti-cyclical measures

From: Critiquer 2017 45 (3)

Editor: Wang Yi