Re: Re: Re: the profit rate & recession

[Doug Henwood <dhenwood@xxxxxxxxx>]

Fred B. Moseley wrote:

> Doug, are you agreeing with Hyman and this growing consensus?  What about
> the recovery of profits and investment?  If the cause of this recession is
> mostly falling profits and investment, as  we seem to agree, isn't a
> necessary condition for recovery from the recession the recovery of
> profits and investment?  How likely is a recovery of profits in the coming
> months?  That would seem to be the crucial question.  Does Hyman say
> anything about profits?  What does Henwood say?

Hyman sez profits will pick up with the recovery. He's probably
right, but the big question is by how much. My guess is that the long
improvement in profitability (in the U.S., that is - it didn't happen
elsewhere) is over, and profitability has now plateaued. So the
recovery is likely to be uninspiring. I'm tempted to draw a parallel
between the present and the end of the 1960s boom, which also marked
the end of a productivity and profitability surge and the beginning
of more troubled economic times.

I cite the likes of Hyman, though, because lefties always overstay
the recession, and are among the last diehards clinging to recession.

Doug