[Marxism] Lenin's Tomb on the Stockmarket

Lenin's Tomb leninstombblog at googlemail.com
Sun Aug 19 01:45:56 MDT 2007


On 8/19/07, Tom O'Lincoln <suarsos at alphalink.com.au> wrote:
>
>
> But the last bit has two sides, and at this point it still seems to me the
> more important side is the dramatic growth of the Chinese economy. An
> economic doomsday scenario should have something to say about that. Is it
> going to stop? No mention of China in this article,
>
> ...
>
> This is hardly news. But why should the decline of manufacturing in the
> west -- which has brought a transfer to developing countries like China --
> be grounds to predict the next *global* depression? If anything it has
> been
> the basis for years of growth. Surely what matters is the rate of profit
> overall, not in one sector where it's longterm decline in the west.
>


Well, there's an interesting point in the Harman article I link to about
China:

"There are even doubts about the one part of the world system where immense
productive investments are taking place—China. Some commentators see this
country as the salvation of the system as a whole. Chinese capital has been
able plough much more surplus value back into investment—more than 40
percent of national output—than in the US, Europe or even Japan. It has been
able to exploit its workers more, and it has not so far been held back by
the levels of unproductive expenditure that characterise advanced capitalist
countries (although the present real estate boom is characterised by a
proliferation of office sky scrapers, hotels and shopping malls). All this
has enabled it to emerge as a major competitor with the advanced capitalist
countries in export markets for many products. But its very high levels of
investment are already having an impact on profitability. One recent attempt
to apply Marxist categories to the Chinese economy calculates that its
profit rates as fell from 40 percent in 1984 to 32 percent in 2002, while
the organic composition of capital has increased by 50
percent.55<http://www.isj.org.uk/index.php4?id=340&issue=115#115harprof_55>There
are some Western observers who are convinced that the profitability of
some big Chinese corporations is very low, but that this is concealed by the
pressure on the big state_run banks to keep them
expanding.56<http://www.isj.org.uk/index.php4?id=340&issue=115#115harprof_56>
"



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