The falling rate of profit in the postwar United States economy

Abstract

Part 1 Marx's theory of the falling rate of profit: increase in the composition of capital? - definition of the composition of capital theory of the tendency to increase composition of capital increase faster than the rate of surplus-value? - Marx's argument formal model with a constant real wage formal model with an increasing real wage Okishio's theorem - the theorem, criticisms, evaluation. Part 2 Conceptual issues in the estimation of the Marxian variables: money or units non-capitalist production non-production capital (productive labour/unproductive labour) residential housing taxes on wages recent criticisms of Marx's concepts of productive and unproductive labour. Part 3 Estimates of the Marxian variables for the postwar US economy: rate of surplus-value - composition of capital technical composition of capital value composition of capital organic composition of capital distribution of capital across industries turnover time of capital multiple shifts rate of comparison with Weisskopf's estimates comparison with Wolff's estimates estimates of the Marxian variables, 1977-87. Part 4 The decline of the conventional rate of profit: profit squeeze explanations Weisskopf - rising strength of labour Wolff - slower productivity growth summary Marxian explanation - Marxian theory of the conventional rate of estimates of the Marxian determinants share of empirical test. Part 5 The causes of the increase of unproductive labour: detailed estimates of unproductive commercial financial finance insurance and real estate supervision - causes of increases effects of increase conclusions. Part 6 Conclusion: main conclusions further research future trends limits of government policies. Appendices: detailed estimates sources and methods assessment of bias.