The historical transience of capital: the downward trend in the rate of profit since XIX century

This paper presents estimates of the rate of profit on fourteen countries in the long run. The performance shows a clear downward trend, although there are periods of partial recovery in both core and peripheral countries. The behavior of the profit rate confirms the predictions made by Marx, about the historical trend of the mode of production. Finally, an estimate of the global rate of profit for the last six decades is done, also highlighting the particular role of China in systemic profitability

Piketty against Piketty: the tendency of the rate of profit to fall in United Kingdom and Germany since XIX century confirmed by Piketty´s data

In Capital in 21st century, Thomas Piketty criticizes Marxian theory and the law of the tendency of the rate of profit to fall in the long term. His main argument, asserted by other authors since decades, is related to the capacity of increases in productivity to counterweight the tendency. The French author establishes a stable “rate of return” too, but this rate and his critics on Marx are founded on a neoclassical perspective. Thus Piketty denies the validity of the law but changing its determinations as a result of the labor theory of value and the valorization process. When a proper definition of the matter in Marxian terms is done, Piketty´s data itself confirm the law of the tendency of the rate of profit to fall

La valorización del capital en ALUAR (2000-2017)

This paper analyzes the capital valorization in aluar, the main aluminum producer in Argentina, during the period 2000-2017. To this end, we used aluar annual reports, constructing data series related to some fundamental economic variables, such as labor productivity, stock of fixed capital, total capital advanced, the rate of profit, distribution and costs of production. Levels of production and capital valorization showed an important growth during the first decade of the century, after the crisis of 2001/2002, but manifesting a gradual stagnation during the last five-year period, in line also with the fall of the aluminum international price. A comparison with capitals of the global highest production level suggests that although aluar has a significant productivity and capitalization per worker, its absolute magnitude is far from the scale reached by the world's most concentrated capitals in this branch.El presente artículo investiga la valorización del capital de aluar, el principal productor de aluminio en Argentina, durante el período 2000-2017. Para ello se utilizan los balances consolidados respectivos y, a partir de los mismos, se construyen una serie de variables económicas relevantes, tales como la productividad laboral, el stock de capital fijo, el capital total adelantado, la tasa de ganancia, la distribución y los costos de producción. El ritmo de producción y valorización del capital de aluar mostró un importante crecimiento durante la primera década del siglo, con posterioridad a la crisis de 2001/2002, para luego ingresar en un paulatino estancamiento durante el último quinquenio, en consonancia también con la caída del precio internacional. La comparación con los capitales de mayor producción de aluminio a nivel global sugiere que si bien aluar presenta importantes niveles de productividad y capitalización por obrero, su magnitud absoluta se encuentra lejos de la escala alcanzada por los capitales mundialmente más concentrados de la rama

And yet it moves (down)

The article presents an estimate of the rate of profit in United Kingdom between 1855 and 2009. By isolating some of the countervailing forces specified by Marx of the law of the tendency of the rate of profit to fall, it demonstrates that the law impose despite those countervailing forces, which do not reverse the tendency in the long term. Finally, the article deals with the tendency and economic cycles based on the historical development of the rate of accumulation and the rate of growth of employees. A statistical annex is included at the end

La transitoriedad histórica del capital: La tendencia descendente de la tasa de ganancia desde el siglo XIX

This paper presents estimates of the rate of profit on fourteen countries in the long run. The performance shows a clear downward trend, although there are periods of partial recovery in both core and peripheral countries. The behavior of the profit rate confirms the predictions made by Marx, about the historical trend of the mode of production. Finally, an estimate of the global rate of profit for the last six decades is done, also highlighting the particular role of China in systemic profitability

Auge y estancamiento de Japón (1955-2008). Una explicación marxista.

The present study analyzes the economic Japanese performance according to Marxist political economy. In that sense, an estimation of the valorization process categories is made: profit rate, surplus rate, value capital composition and turnover speed. The Japanese economy is passing through a long period of two decades with low growth related to the world and Japan´s own recent history. There is a deep and constant fall in the profit rate, and its low levels since the nineties keeps Japanese capitalism in the current standstill situation. This work also presents data that refute “profit squeeze” explanations of the profitability fall, reinforcing those related to capital over-accumulation, due to increasing fixed capital to labor force. “Profit squeeze” theories ignore both the basic foundations of the wage income participation and the fixed capital consumption tendency to growth, as a particular income expression of fixed capital relative increase

And yet it moves (down)

The article presents an estimate of the rate of profit in United Kingdom between 1855 and 2009. By isolating some of the countervailing forces specified by Marx of the law of the tendency of the rate of profit to fall, it demonstrates that the law impose despite those countervailing forces, which do not reverse the tendency in the long term. Finally, the article deals with the tendency and economic cycles based on the historical development of the rate of accumulation and the rate of growth of employees. A statistical annex is included at the end

La transitoriedad histórica del capital: La tendencia descendente de la tasa de ganancia desde el siglo XIX

This paper presents estimates of the rate of profit on fourteen countries in the long run. The performance shows a clear downward trend, although there are periods of partial recovery in both core and peripheral countries. The behavior of the profit rate confirms the predictions made by Marx, about the historical trend of the mode of production. Finally, an estimate of the global rate of profit for the last six decades is done, also highlighting the particular role of China in systemic profitability

Income distribution, turnover speed and profit rate in Japan, Chile, Netherlands and United States

This paper analyzes the valorization process in Chile, Japan, Netherlands and United States, estimating advanced constant and variable capital, turnover speed, capital composition and profit rate on total advanced capital. Furthermore, it analyzes the role of turnover speed in the valorization process. In core countries, turnover speed of capital tends to be higher due to a larger development of productive forces. Thus, in Netherlands, United States and Japan there is higher labor share, representing at the same time, the wage bill adjusted by capital turnover, a lower proportion related to total capital and income, compared to peripheral countries like Chil

Income distribution, turnover speed and profit rate in Japan, Chile, Netherlands and United States

This paper analyzes the valorization process in Chile, Japan, Netherlands and United States, estimating advanced constant and variable capital, turnover speed, capital composition and profit rate on total advanced capital. Furthermore, it analyzes the role of turnover speed in the valorization process. In core countries, turnover speed of capital tends to be higher due to a larger development of productive forces. Thus, in Netherlands, United States and Japan there is higher labor share, representing at the same time, the wage bill adjusted by capital turnover, a lower proportion related to total capital and income, compared to peripheral countries like Chil