Re: [Marxism] Sixty Years of Global Economic Expansion Ending? By Nat Weinstein

[Barry Brooks <durable@xxxxxxxxxxxxx>]

> In other words, even fully ³automatic² machines cannot produce
> commodities without the human labor that may be required to maintain,
> repair, adjust, and turn them on and off. This is the hidden reason
> why the rate of profit is doomed to fall at the same pace as the rate
> at which new labor-saving machines replaces human labor power!

Why would profit rates fall at the same pace? (exactly!) Wouldn't
reduced labor costs increase profits? That's why they automated in the
first place. It does work. Assuming the economy would shut down due to
automation makes sense only if there were no taxes, no borrowing, and no
fiat money.


> Thus, when completely or almost completely automatic factories are 
> eventually created as they must, logically, do ? the rate of profit
> falls close to zero. In other words, if machines do away entirely
> with the need for human labor power, then zero workers, equals zero
> surplus value and zero profit!
> 

Logically? But, the system doesn't shut down because the extra profits
are borrowed or taxed so that demand doesn't fall to zero as human labor
is replaced. Without labor costs all income would be profit income. The
rate of profit would approach 100%, before the 99.9% taxes.

> After all, if surplus value is zero, it means that there are close to
> no workers receiving paychecks. This leaves nearly no one with money
> enough to pay for the product of automatic factories - one, that is,
> except capitalists themselves. But that, of course is an absurdity.
> Or, more practically speaking, it means that close to no money is in
> circulation to pay for the great mass of goods produced ³for sale.²
> And that, in turn, will end capitalist production along with society
> divided by class. That too proves that capitalist economy must die
> either naturally or unnaturally.

It will die, but not due to a falling rate of profit or no money.
Rather, it will die because:

If the rate of return on investment exceeds the sustainable yeild of a
forest forest owners will clear cut and put the money in the bank. It
will die due to bad planning... no planning for the distant future. The
surplus income of investors drives speculation and makes real planning
seem stupid in a world of gamblers.

If we wait for the market to signal scarcity it will often be too late,
and too expensive, to take corrective action. We should replace our
wasteful system before scarcity makes building a new system impossible.

 From one point of view, all income is profit since we take the free
wealth of nature without much effort, and even less thought.

Barry
http://home.earthlink.net/~durable






















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