The Evolution of Marxist Theory of Financial Capital in the ACC Payment Model

Abstract

Abstract Since the late 1970s, a series of profound changes have occurred in developed capitalist countries. The most prominent is the increasing virtualization and financialization of the capitalist economy. Financial leverage has been increasing under the ACC payment model in the financial supply chain. In order to study the evolution of Marxist financial capital theory under the ACC payment model, this paper mathematically models supply chain finance under the ACC payment model by analyzing early payment, immediate payment, and credit payment in the process of ordering, receiving, and selling in the supply chain, followed by the monopoly position of financial capital in the U.S. economy and U.S. national income under economic virtualization. From 1995 to 2016, total U.S. financial assets as a percentage of GDP grew from 113.6% to 425.5%, a growth rate of 274.56%. The average percentage of U.S. government bonds to GDP was 39.16%. U.S. non-financial business as a percentage of GDP has grown at an average annual rate of only 1.62% over the last 20 years. Under economic virtualization, the median annual U.S. household income has largely trended downward since 2002, and in 2016 the median annual U.S. household income fell to $49,100, essentially the same as in 1995. Annual per capita income is also declining in the U.S.; in 2016 was already nearly $2,200 less than in 1995. The ACC payment model allows financial capital to add value by detaching itself from the production process, and the faster it adds value, the more it stimulates credit expansion. From a Marxist perspective, the bourgeoisie’s use of virtual financial capital for the continuous plundering of global capital has led to unbalanced global economic development and a growing gap between the rich and poor of people, thus intensifying the basic contradictions of capitalism, which is a warning for the development of the global economy nowadays.