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Marx’s falling rate of profit: a dialectical view

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Chapter Summary

To understand the significance which the falling rate of profit had for Marx, it is necessary to consider the dialectical nature of Capital. Such a reading reveals the significant differences between the falling rate of profit as understood by classical political economy and by Marx and shows what Marx offered as a counterpart to the classical position. Examination of Capital demonstrates very clearly that Marx did not view the falling rate of profit as a limit. Marxs falling rate of profit is far more fundamental than the falling rate of profit as immanent limit in production, which, once revealed as a theory of the falling maximum rate of profit, can be seen to have very little to do with the relations of production of capital.

Keywords: capital; Marxs falling rate of profit; political economy



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