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Re: Re: Re: Re: Re: the profit rate & recession

Rakesh Bhandari wrote:

Why should capitalism be more vulnerable to recessions and
stagnation simply because the profit rate is falling or low?


Low profits mean low investment, which means a slower rate of growth
and reduced technical innovation. Profits are the main source of
investment funds, and with profits expectations low, there's no
reason to invest. And animal spirits wither. But surely everyone
knows this?

Doug


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