[Marxism] Rosa Luxemburg and the tendency of the rate of profit to fall | faithful to the line

Louis Proyect lnp3 at panix.com
Thu Jan 2 08:07:51 MST 2014

The evidence from Rosa Luxemburg’s principle writings does not tend to 
support the conclusion that she viewed the falling rate of profit as an 
essential part of her analysis. Her critical focus, in The Accumulation 
of Capital, was on the crisis of realisation: of what we might now think 
of as effective demand. On the basis of her updates of Marx’s volume 2 
reproduction schemes, she concluded that this realisation crisis – not a 
profits crisis – could be resolved through the expansion of capital into 
the non-capitalist world; that is, through imperialism. The dynamic of 
her system, in other words, was not determined by a crisis of 
profitability emerging at the point of production (as in the orthodox, 
Chris Harman version of TRPF), but of crisis emerging as result of 
problems in the circulation of commodities.


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