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Showing posts with the label profitability
"The vulgar economists of capitalism have tried to deny this contradiction of capitalist production ever since it was hinted at by the likes of Sismondi, and logically suggested by the law of value based on labour, first proposed by Adam Smith and David Ricardo. The apologists dropped classical theory and turned to a marginal utility theory of value to replace the dangerous labour theory.  They turned to equilibrium as the main tendency of modern economies and they ignored the effect of time and change.  Only the market and exchange became matters of economic analysis, not the production and exploitation of labour." Grossman on capitalism's contradictions
"Before Donald Trump was elected, stock markets went down every time he improved in the public opinion polls.  Finance capital did not want him to win.  But since his surprise election, stock markets have not slumped.  On the contrary, they have risen substantially along with a strengthening dollar.  It seems that ‘the Donald’ could be a good thing for Capital after all." Testing Trumponomics
Keynes’ 1930s optimism gained credence with the boom during a major world war and the subsequent post-war Golden Age that restored the profitability of capital for a generation.  Let’s hope it does not take another world war to confirm the  optimism of the modern Keynesians like DeLong . The end of globalisation and the future of capitalism