Estimates of the Rate of Surplus-Value in the Postwar United States Economy

Abstract

One important prediction of Marx's theory is that the rate of surplus-value will increase as a secular tendency. This paper subjects this prediction of Marx's theory to an empirical test, by deriving annual estimates of the rate of surplus-value in the United States economy over the period 1947-1977. These estimates show that the rate of surplus-value in the United States economy increased significantly over this period, as predicted by Marx's theory. These estimates are then compared with other estimates of the rate of surplus-value in the postwar United States economy which are based on different interpretations of the main theoretical issues involved in the estimation of the rate of surplus-value. This comparison shows that the theoretical issue which makes the most difference in the estimated trend of the rate of surplus-value is whether or not Marx's distinction between productive labor and unproductive labor is taken into account in the definition of the rate of surplus-value.