[Marxism] A new study on US corporate profitability

mihaly koltai komb83 at gmail.com
Fri Oct 30 07:05:38 MDT 2009


by the Marxist economist Andrew Kliman: "The Persistent Fall in
Profitability Underlying the Current Crisis: New Temporalist Evidence
A study of the rates of profit of U.S. corporations, 1929-2007, with
emphasis on the period since the early 1980s."
can be downloaded from here: http://akliman.squarespace.com/persistent-fall/

According to Kliman the US corporate profit rate did not recover in the
eighties/nineties, or only did so partially.
And so, according to the author: "(...) in contrast to what occurred in the
Great Depression and World War II, capital was not sufficiently destroyed
during the global economic slumps of the mid-1970s and early 1980s, largely
because of demand-management policies meant to prevent a repeat of the
Depression. Thus the rate of profit has remained at a level too low to
sustain a new boom.
The result has been relative stagnation, as measured, for instance, by
profitability that has not rebounded and by falling rates of growth of per
capita GDP. Governments have repeatedly attempted to - manage the relative
stagnation by pursuing policies that encourage excessive expansion of debt.
They have thus artificially boosted profitability and economic growth, but
in an unsustainable manner that has repeatedly led to burst bubbles and debt
crisis. The present crisis is the most serious and acute of these."



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