Society of Heterodox Economists Conference University of New South Wales, Sydney, 2-3 December 2013

Marxistcrisistheoryto1932andtothepresent:reflectionsonHenrykGrossmansFiftyyearsofstruggleoverMarxismRickKuhnAustralianNationalUniversityRick.A.Kuhn@gmail.comHenrykGrossmansarticleandpamphletFiftyyearsofstruggleoverMarxism,18831932providedasurveyofMarxismandparticularlyMarxistcrisistheorysinceMarxsdeath.HeidentifiedbothinnovationsinandmajordeparturesfromMarx'sownapproachamongstthosewhocalledthemselvesMarxists.Theprocessesofinnovationanddeparturehavebothcontinuedovertheperiodsince.ThispaperexploresGrossman'sassessmentsofMarxistcrisistheoriesupto1932,subsequenttheoreticaldevelopmentsandgroundstheseinanaccountofthematerialcircumstancesoftheirproduction.In1932,HenrykGrossmanwroteasubstantialsurvey(over20,000wordsinmytranslation,whichisanappendixtothispaper)ofMarxismoverthe50yearssinceMarxsdeath,foraverywidelyuseddictionaryofeconomics;itwasalsopublishedasapamphlet,FiftyyearsofstruggleoverMarxism,18831932(Grossman2013).1Heconcentratedoneconomicanalyses,thoughhealsodealtwithpoliticsand,toamorelimitedextent,philosophy.Itstandsupwell,particularlythediscussionsofMarxisteconomics.InhistreatmentofMarxismingeneral,however,therearetwoparticularlynoticeablegapscomparedwithcontemporaryassessmentsoftheclassicalMarxistcanon.AsupporteroftheCommunistInternational,whichatthisstageregardedTrotskyasadangerousheretic,GrossmanwasclosetotheGermanCommunistPartythattoedthelinefromMoscow.Grossman,nevertheless,acknowledgedTrotskystheoreticalwork.ButthesurveydoesnotmentionTrotskystheoryofpermanentrevolutionwithitsimportantimplicationsforpoliticalandeconomicanalysis.Thetheoryis,moreover,discussedinworksbyTrotskyinGrossmansbibliography(Trotsky1970andTrotsky1977).Parvussresponsestorevisionism,beforehispoliticalapostasy,arealsomentionedfavourably,butnothiscontributiontothetheoryofpermanentrevolution(Parvus19).TheabsenceofAntonioGramscifromGrossmanssurveycanbeexplainedbytheItalianCommunistleadersfocusonItaliandevelopmentsinworkspublishedduringhislifetime,veryfewofwhichappearedinlanguagesotherthanItalian.Gramscisprisonnotebookswerestillbeingwrittenin1932andwereonlysmuggledoutofGramscishospitalroomafterhisdeathin1937,manyyearsbeforeanyofthetextswerepublished.

1 GrossmangenerallysignedhimselfHenrykGrossman.Thiswashowhisnameappearedinhis

publicationsthatwereoriginallypublishedinPolish,French,YiddishandEnglish.HenrykGrossmannwasthemostcommonGermanrenditionofhisnameandtheoneusedinmostofhisownpublicationswhichoriginallyappearedinGerman.Inreferencesbelow,thenameunderwhicheachpublicationappearedisused.GrossmanssurveyhasbeentranslatedforafourvolumecollectionofhisworksthatIamediting.Thevolumeswillincludeallofhispublishedessaysandsomepreviouslyunpublishedwritingsoneconomictheoryandpolitics,mostnevertranslatedbefore,aswellasthefirstfulltranslationofhisTheLawofAccumulationandBreakdownoftheCapitalistSystem,andmajorstudiesoftheeconomichistoryofPoland.

ThefirstsectionbelowisanoverviewofGrossmansdiscussionofthehistoryofMarxscrisistheory,providingasummary.Afewimportantdevelopmentssincethenareconsidered,inthespiritofGrossmansapproach,inthesecondsectionbeforeaverybriefcomparisonofthestateofMarxistcrisistheorywhenGrossmanwroteandtoday.GrossmanssurveyInthelate19thandearly20threvisionistsrejectedrevolutionarypoliticsandoneofthekeyargumentsforrevolution:capitalismstendencytobreakdown.EduardBernsteinsThepreconditionsofsocialismsetoutthecasein18989anditwasdevelopedbyothersontherightwingoftheSocialDemocraticPartyofGermany,notablyConradSchmidtwhoexplicitlyrejectedthelabourtheoryofvalue.Capitalism,Bernsteinargued,hadovercomeitspropensitytogothrougheconomiccrises.ItisnocoincidencethattheorganoftheGermanrevisionistsfromthemid1890s,DieSozialistischeMonatshefte(TheSocialistMonthly)wasoriginallycalledDerSozialistischeAkademiker(TheSocialistUniversityStudent).

Forthesemen,conductingthesmallscalewarforentirelygradualimprovementsinthesituationoftheworkersthatwereagainandagainthreatenedbysetbacks,allradicalismrepresentedathreattothepositionstheyhadconquered,theirorganizationsandtradeunionfunds.

AnotherrevisionistexplanationofcrisesandargumentagainstcapitalismstendencytobreakdownwasdevelopedbyMikhailTuganBaranovsky,aRussianlegalMarxist(1894,Germanedition1901).LikeBernstein,anadherentofmarginalutilitytheory,heattributedcrisestodisproportionbetweenindustries.ThiswasemployedbyRudolfHilferdinginhisimmenselyinfluentialFinancecapital(1910)andOttoBauerina1913critiqueofLuxemburg.Bothcametobelievethatdisproportioncouldbeovercomebythepoliciesofaparliamentary,socialdemocraticgovernment.HilferdingwastwicetheGermanfinanceministerinthe1920s,whileBauerwastheleaderofAustriansocialdemocracyfrom1918andbrieflyforeignminister,helpingpreventaworkersrevolutioninthenew,rumpAustrianstate.FollowingEngelsandLenin,Grossmanattributedtheseviewstotheinfluenceofthebourgeoisieonthelabourmovementthroughthetoplayersoftheworkingclassandpettybourgeoisadherentsofsocialistparties,boughtoffwithsomeofthesuperprofitsgainedfromimperialism.Bourgeoisworkersparties,liketheBritishLabourParty,wereanexpressionoftheemergenceofthislayer.Grossman,however,alsopointedoutthatreformismwasespeciallysuitedtotheinterestsoftradeunionleaders.AgainstBernstein,theleftistHeinrichCunowin1898explainedthebreakdowntendencyinunderconsumptionistterms:workerswerenotpaidenoughtobuyallthattheyproducedandexportmarketswouldonlybeabletoabsorbthisexcessforalimitedperiod,beforecapitalismdevelopedthewholeworld.Between1901and1911,KarlKautsky,themostprominentMarxisttheoristintheworld,andinhiswidelyreadEnglishworkof1907,LouisBoudin,alsoembracedthisargument.RosaLuxemburg,in1913,provideditwithafarmoresystematicgroundinginthehistoryofcrisistheory,drawingespeciallyontheworkofSimondedeSismondi,earlyinthe19thcentury.LuxemburgrecognisedthatthetheoryofbreakdownwasakeyelementofMarxsanalysisofcapitalismandthecaseforsocialism.But,likeCunow,shedefendeditwithfaultyargumentsthatwerenotMarxs,assertingthathehadfailedtorecognisethatcapitalismcouldsurvivewithoutexternalmarkets.TheRussianRevolutionandBolshevik/communistorganisationandactivityledtoarecoveryofMarxistpolitics,philosophyandeconomics,associatedwiththeworkofLenin,LukcsandGrossman,allwithexperienceaspracticalrevolutionaryleaders.

GrossmanrecoveredMarxsexplanationofcapitalismsbreakdowntendencyintermsoftheprogressivenatureofcapitalistproduction,whichhasrepeatedlymeantthatlesslabourcanproducemorecommodities.Thisveryprocessentailsatendencyfortherateofprofittofallwhich,beforeMarx,hadbeenidentifiedbyAdamSmithandJohnStuartMill.Capitalaccumulationisbiasedtowardsinvestmentinconstantratherthanvariablecapital:eachworkeroperatesmoreequipment;theratiothecostofthecapitalusedtothewagesbillincreases,asUScensusstatisticsdemonstrated.Inotherwords,theorganiccompositionofcapitalrises.Whileexploitation,therateofsurplusvaluerises,and(uptoapoint)themassofsurplusvalueincreases,thisdoesnot,inthelongerterm,fullyoffsettherisingorganiccompositionofcapital.BoudinandGeorgCharassoffsensedthatMarxexplainedcapitalismstendencytobreakdownintermsoftherateofprofit.But,unlikeGrossman,theydidnotidentifythewayinwhich,asaccumulationoccurstherateofexpansionofsurplusvalueslowsdown,evenifthemassofsurplusvalueisstillincreasing.Eventuallyapointwillbereachedwhenthemassofsurplusvalueisinsufficienttomaintainanygivenrateofaccumulation.Thisisevenmorethecasebecausetheabsolutevalueofnewtheindividualitemsofconstantcapital(machines,buildingsetc)alsotendstogrow.Beforethatpointclassstruggleswillintensifyastherequirementsfortheaccumulationofconstantcapitalencroachonthesurplusvalueavailablefortheconsumptionthecapitalistsandtopayfortheemploymentofnewworkers.FollowingMarx,Grossmanalsoidentifiedcountertendenciesthatslowortemporarilyreversethetendencyfortherateofprofittofall.Theseincludedthecheapeningofbothconstantcapitalandtheitemsworkersconsume,whichisaconsequenceoftheincreasedproductivityoflabour;reducedturnovertime;unequalexchangeandcapitalexportchannelsurplusvaluefromlesstomoredevelopedterritories.Grossmanusedhissurveytomakeimplicitrepliestothecriticsofhismostinfluentialwork,Thelawofaccumulationandbreakdownofthecapitalistsystem(1929).AgainsttheargumentthathehadadvancedatheoryofautomaticeconomicbreakdownhereferredtoLeninandstressedthathisanalysis,farfromdenyingthesignificanceoftheclassstruggle,providedaframeworkinwhichitcouldbeunderstoodandhencemademoreeffective.Themechanismsthatcounteractthetendencyfortherateofprofittofall,Grossmanalsopointedout,onlyoperatetemporarilyandtoalimitedextent.Crisistheorysincetheearly1930sGrossmansapproachwascaricaturedanddismissedbyreformistsandStalinistsandtheiracademicacolytesinRussia(headedbyStalinslieutenantineconomicsJenVarga,whobecameStalinslieutenantineconomics)andthewest(notablyNatalieMoszkowska1935andPaulSweezy1942)asatheoryofautomaticcapitalistbreakdown.Andthemidnightinthecentury(Serge1982)theriseofNazismandStalinisminthe1930smeantmassivesetbacksfortheorganisedworkersmovementandtheuttermarginalizationofrevolutionaryMarxistpolitics.VargaappropriatedLuxemburgsunderconsumptionisttheoryofbreakdown,whiledenouncingLuxemburgherselfandmovingfurtherawayfromMarxsanalysis.From1928,hearguedthattechnologicalchangewasleadingtoanabsolutedeclineinthenumberofworkers(Day1981:14653).Anunderconsumptionistaccountofcrisesandthegeneralcrisisofcapitalism,stretchingbacktoWorldWarI,becametheorthodoxyinRussiaandtheinternationalCommunistmovement,astheStalinistcounterrevolutionshutdownbroadpublicdebate,notonlyoverpoliticalandeconomicissuesbutalsoindiscussionsofphilosophy,

artandevenscience.ThiswasthemostwidespreadunderstandingofeconomiccrisesamongstselfidentifiedMarxistsformorethanfourdecades.HavingquotedMarxonthestupidityofRicardossuccessors,Grossman,inhisThelawofaccumulation,hadobservedthat

ThedifferencebetweenMcCullochandtheothervulgareconomistsandMarxsepigones,e.g.Varga,nowonlyliesinthereversedorderoftheircontradictoryassertions:namelythattheyconcedetheoverproductionofcommoditiesandturnitintoanessentialpointintheirdoctrinesbutdenytheoverproductionofcapital,whileRicardosepigonesconcedetheoverproductionofcapitalbutdenythatofcommodities.(Grossmann1929:517)

A1928Communisttextbookofpoliticaleconomystillaccommodatedbothunderconsumptionistanddisproportionalitytheoriesofeconomiccrisis,whichconstitutedtheparametersofdebateintheUSSR.ItreferredtoworksbyBukharin,themostprominentproponentoftheoriesofdisproportionalityandstillaleaderoftheCommunistParty,VargaandoneofhismostimportantcriticsSpektator,i.e.MironIsaakovichNakhimson(LapidusandOstrovitianov1929:3723,432,455,539).InNovember1930,theAgrarianInstituteinMoscowmadeGrossmanamember,inrecognitionofthevalueofhisbook.After1931,however,SovietwriterswoulddisagreewithoneanotherwithintheboundsofdiscourseestablishedbyStalinandVarga,butrarelywouldtheyoverstepthem.DuringavisittotheRussiain1932,onNakhimsonsinvitation,SergeiMitrofanovichDubrovskii,theheadoftheAgrarianInstitute,confidedtoGrossmanthatnooneheretakesVargaseriously.ButthecogencyofVargasworkhadlittletodowiththeascendencyofhistheoryastheunchallengeableorthodoxyofStalinscounterrevolutionary,statecapitalistregime,whichexecutedNahkimsonandBukharin,in1938(Kuhn2007:140).In1935,VargaprovidedanempiricalandtheoreticalreportontheDepressiontotheSeventhCongressoftheCommunistInternational.Depressionsweretheresultofadeclineinconsumingpower(wagespluscapitalistsprivateexpenditure)comparedtosocietysexpandingproductivecapacity.Vargaattemptedtocomplementhisexplanationofthegeneralcrisiswithanaccountofcyclicalcrisesbutamountedtoarecapitulationofhisanalysisofthegeneralcrisis.Consequently,hiseconomicsystemwasindeterminate,incapableofexplainingthemovementsoftherealworldeconomybecauseitconflatedshortandlongtermmovements.Norcoulditallowthepossibilityofarecoveryfromthegeneralcrisis(Varga1935:20;Day1981:263;Mommen2010:125).VargasapproachwasnowtheeconomicorthodoxyinStalinistRussia,expressedinLeontievstextbooks(1935:2467,253).In1939,Vargareiteratedthatotherfeaturesofeconomiccrisisintermsoftheproblemofthemarket,whichboileddowntothepurchaseofmeansofconsumption(andnotmeansofproduction)byworkersandcapitalists(Varga1929:889).AlthoughVargafellfouloftheregimeforaperiodafterWorldWarII(ineffect,fornotretrospectivelyadjustinghisargumentinabookaftertheofficiallinehadchanged),Communisttextbooksstillassertedthatcapitalismwasinthemidstofitsgeneralcrisisduetotheproblemofmarkets,whichledtoafurtherimpoverishmentoftheproletariatwellintothelongpostwarboomofwesterncapitalism(InstituteofEconomics1957:367).Bythe1960s,accordingtothetheoryofstatemonopolycapitalism,whichVargaembraced,themonopolybourgeoisiedidnotlosemuchfromacrisiswhoseburdenwasbornebyworkersandweakersectionsofthenonmonopolybourgeoisie.Neverthelessthegeneralcrisisofcapitalismpersistedandmassunemploymentwaspermanent(Varga1962:1212).TheUSeconomistPaulSweezyhelpedkeepradicalideasandclassanalysisaliveineconomics,asdidothersoftandhardStalinistsinavarietyofareas.Hisinfluentialandverywellwritten

Thetheoryofcapitalistdevelopment,publishedin1942,introducedimportantGermandebatesoverMarxisteconomicstoreadersofEnglish.Necessarily,hisownjudgementscolouredtheaccount.Buttherewasalessadmirableside.HedistortedHenrykGrossmansposition,entirelyignoringGrossmansdiscussionofcountertendenciestothetendencyfortherateofprofittofall.LikeGrossmanssocialdemocraticandStalinistcritics,Sweezycondemnedhismechanisticthinking(Sweezy1970:211).GrossmanwrotetohismateBillBlakein1947

ItisnotsoimportantformetowritealetteragainstthedistortionsofMrSweezy.IfIwillnotbeabletopublishanEnglishbookonMarx,suchaletterwillnothelp.IfIwillpublishabook,thenIwillcrushhimallbonesandthereaderwillbeabletojudgehimselfwhichbookgivesreallysuperiorinterpretationofMarxtheory.(Kuhn2007:207)

Unfortunately,Grossmandiedin1949withoutwritingsuchareply,thoughitispossibletoconstructoneonthebasisofhisearlierwork.TheexplanationofeconomiccrisesthatSweezyfavouredwasunderconsumptionistmoresophisticatedthantheStalinistorthodoxy,articulatedbyVarga,butbroadlycompatiblewithit.Capitalismstendencytounderconsumptionhasbeenoffsetbycounteractingforces.Investmentinnewindustries,beforetheycomeintofullproduction,andinvestmentsthatturnoutnottohavebeenjustified,andthereforedonotproducemeansofconsumption,reducethevolumeofcommoditiesthatwouldotherwisebeproduced.Populationgrowth,unproductiveconsumptionbysomepeoplenotinvolveddirectlyinproducingcommoditiesascapitalistsorworkers,somestateexpenditures(includingtheexportofcapital)supposedlyincreasetheoveralllevelofconsumption.Commerceandimperialismalsoreduceunderconsumptionbyslowingcapitalaccumulationandraisingconsumption(Sweezy1970:21736,280,309,315).SweezyalsouncriticallyportrayedRussiaassocialistandquotedfavourablyfromStalin(Sweezy1970:35462).SuchstanceswouldnothavealienatedreaderssympatheticordedicatedtoStalinismand/ortheSovietUnion,whentheUSSRwastheheroicallyoftheUSAandtheCPUSAwaspromotingclasscollaborationtoassistthewareffort(Isserman20:145).2WithLeoHuberman,SweezyinitiatedandeditedMonthlyReviewin1949.ThemagazinehadconsiderableinfluenceintheUSAandabroadfordecades.MonopolyCapitalism,coauthoredbySweezywithPaulBaran,in1966,offeredareformulatedunderconsumptionistaccountofeconomiccrisiscombinedwithapowerfulcritiqueoftheUSrulingclass.BaranandSweezymaintainedthatundermonopolycapitalism,owingtothenatureofthepriceandcostpoliciesofthegiantcorporations,thereisastrongandsystematictendencyforsurplus[thetermtheyprefertomassofsurplusvalue]torise,bothabsolutelyandasashareoftotaloutput(BaranandSweezy1966:79).Buttheconsumptionofanexpandingpopulationandinvestmenttosupplythatpopulationandinnewtechnologygrowsataslowerpace,whileforeigninvestmentintensifiestheproblem(BaranandSweezy1966:90108).Surplusisabsorbedandthesystemkeepsgoingthankstospendingonadvertising,governmentoutlays,especiallyonmilitaryrivalrywiththeworldsocialistsystem(BaranandSweezy1966:191).ThepoliticsofMonopolyCapitalismwereThirdWorldist:writingofftheUSworkingclassasanagentforradicalchangeinfavourofstrugglesoutsidethemostadvancedcapitalistcountriesforwithdrawalfromtheworldcapitalistsystemandtheinitiationofsocialandeconomic2 AreviewinCommunistcontrolledNewMasses,whilehighlightingdeviationsfromStalinistdogma,

patronisinglyrecommendedSweezysasaprovocativebookthatdeservesseriousstudy(Tamarkin1943:27).TheEnglishCommunisteconomistMauriceDobbprovidedacomplimentary,thoughnotuncriticalforewordfortheEnglishedition(Dobb1946:vvi)

reconstructiononasocialistbasis,suchasthosewhichachievedvictoryinVietnam,China,Korea,Cuba,andAlgeria,(BaranandSweezy1966:3635).Marxistorganisation,politicalandeconomictheoryrevivedinsideand,moreimportantly,outsidetheacademy,withtheupturninclassstrugglefromthelate1960s.ParticularlyintheUnitedStateswherethelinksbetweenthenewleftandtheworkingclassweretenuous,theaffinitybetweenthecrisistheoryinMonopolyCapitalismandbothStalinistandKeynesianapproaches,andthebooksThirdWorldismappealedtoandreinforcedtheinclinationsofsubstantialelementsofthenewleft.TheTheoryofCapitalistDevelopmenttoobecameakeyreferencepointforacademicallyinclinedyoungradicalswithaninterestinMarxisteconomics.3Sweezystreatmentofthetransformationproblemprovidedabasisfordialoguebetweenthemandmainstreamuniversityeconomists.TheneoRicardianeconomist,LadislausBorkiewicz,arguedin1906thatthewayMarxtreatedtheimplicationsofthewaytherateofprofittendstoequaliseacrossindustrieswaswrongandprovidedanalternativeaccount.InThetheoryofcapitalistdevelopment,SweezyendorsedBortkiewiczssolutiontothisproblemofthetransformationofvaluesintopricesofproduction.Afewyearslater,hetranslatedandeditedthefirstEnglishversionofoneofBortkiewiczskeytexts(Bortkiewicz1949).AccordingtoBortkiewicz,Marxwasmistakeninstartingfromvaluesandendingupwithpricesofproductioninhisdiscussionoftheemergenceofpricesofproductionintherealworld.Inreality,allcommoditiesareexchanged(assumingawaymarketfluctuationsandmonopoly)attheirpricesofproduction.SoBortkiewiczformulatedasysteminwhichallcommoditiesexchangeattheirpricesofproductionandthereisadeterminateratiobetweenthevaluesandpricesofproductionineachofthethreedepartmentsproducingImeansofproduction,IImeansofconsumptionandIIIluxurygoods,solongastotalpricesofproductionequaltotalvaluesorthepriceofproductionoftheoutputofdepartmentIII(assumedtobegoldi.e.money)equalsitsvalue.ThismodelisincompatiblewithMarxsassertionthatthevalueoftotaloutputisthesameasitstotalpriceofproduction,thatthevalueoftotalsurplusvalueandprofit(transformedsurplusvalue)arethesame,andthatthevalueandpriceofproductionrateofprofitarethesame.(foracomprehensivestudyofthehistoryandsignificanceofthetransformationproblemanddefenceofMarxspositionseeKliman2007).BypromotingBortkiewiczssolutionandmethodology,Sweezyandhissuccessorssmuggledthegeneralequilibriumfantasiesofmainstreameconomics(andneoRicardianeconomics),inwhichthevaluesandpricesofproductionsinputsandoutputsaredeterminedsimultaneously,intoMarxism.IfHilferderingandBauerwere,asGrossmanputit,neoharmonistsSweezyandhissuccessors,whoswallowedthesamebourgeoiseconomicpill,wereneoneoharmonistsorperhapshyperharmonists.TheseassumptionsprovidedthebasisforOkishios(1961)mathematicaltreatmentofcapitalaccumulationwhichwasregardedasadefinitiverefutationofthelawofthetendencyfortherateofprofittofallbymanyantiMarxistsandprofessedMarxists(notably,Brenner1998:1112)alike.AccordingtoAttewell,therewasanalmostunchallengedhegemonyofunderconsumptionisttheoriesinAmericancirclesuptotheearly1970s(1984:180,likewiseandFosterandMcChesney2010:53,who,however,mistaketheUSAfortheworld).Therewereexceptions,notablytheworkofPaulMattickandRomanRosdolsky,whohadparticipatedinprewarrevolutionarymovementsinEurope.MattickhadbeenacouncilcommunistinGermanyand,afterhehademigratedtotheUSA,hadestablishedarelationshipwithHenrykGrossman,whoseapproachtocrisistheoryhechampioned.RosdolskyhadbeenaCommunistandthen3 ForSweezysinfluenceseeGregoryAlbosobituary(2004).

TrotskyistinPolishoccupiedUkrainianterritory,PragueandVienna,andeasternEurope.InhispathbreakingworkonMarxsGrundrisse,TheMakingofMarxsCapital,andotherworkshehighlightedanddefendedMarxsexplanationofcrisesintermsofthetendencyfortherateofprofittofall,refutingcriticismbyJoanRobinsonandPaulSweezy,amongstothers(Rosdolsky1977:398411).MattickpointedoutthatMonopolyCapitalwasinternallycontradictoryandderivedthedynamicsofcapitalismfromthesphereofcirculationand,focusingonpricerelationsandtechnology,abandonedthelabourtheoryofvalueandMarxsperspectivefromclassrelationsinproduction(Mattick1966;forarelatedcritiqueofKeynessunderconsumptionismseeMattick1971).AfterWorldWarII,therewerefewlinkswithandeffortstobuildontheachievementsofMarxisteconomicanalysisbeforethemidnightofthecentury.ThefruitfulwesternMarxismthatexpandedandPerryAndersonhasdescribed,wasmainlytheproductofacademics,includingsomeadherentsofCommunistparties.ItspractitionersnotablyMaxHorkheimer,TheodorAdorno,HerbertMarcuse,LucienGoldmann,JeanPaulSartre,MauriceMerleauPonty,GalvanodellaVolpe,LucioColletti,HenriLefebvre,LouisAlthussermainlyfocusedonphilosophyandliteratureratherthanpoliticsoreconomics.TherevolutionaryMarxisttraditionofattemptingtocombinetheoryandthepracticeofworkingclassstrugglewaskeptaliveonlybysmallnumbersofpeople,particularlyTrotskyists.TonyCliffoffereddistinctiveandoriginalanswerstothecrucialquestionsaboutcapitalismintheperiodafterWorldWarII,concerningthenatureoftheStalinistregime,thenatureofthirdworldrevolutionsandtherootsofreformism(Cliff1974,Cliff1963andCliff1982a).HeandhisorganisationinBritain,nowcalledtheSocialistWorkersParty,alsotookupanddevelopedanexplanationofthelongpostwarboomintermsofthepermanentarmseconomy,developedintheUSAbyEdSard(writingunderpseudonymsOakes1944andVance1951;Cliff1982b.FortheprovenanceofthetheoryHiggins1997).ThereisanunclearconnectionbetweenSardsoriginalcontributionandthetendencyfortherateofprofittofall,butthesewereovershadowedbyanessentiallyunderconsumptionistunderstandingofthemechanismatwork,hardlydistinguishablefromSweezys,bothinhisdiscussionsandCliffs.MichaelKidronelaboratedamoresystematicexplanationintermsofthewayarmsspendingcouldoffsetthetendencyfortherateofprofittofallbyreducingtheamountofsurplusvalueavailableforcapitalaccumulation.HebolsteredtheargumentwithreferencestoBortkiewiczsandPieroSraffasmodelsinwhichtheorganiccompositionofindustriesproducingluxurycommodities,thatwereneithermeansofproductionnormeansofconsumption,didnotaffecttheaveragerateofprofit(Kidron1967,Kidron1974:1923).Butthiscasecouldbesustainedwithoutrecoursetotheequilibriumassumptionsofthesemodels,asHarmanpointedout.First,surplusvaluewhichthestateappropriatedfromprivatecapitalistswasnotavailabletobeaccumulatedbythemandthusraisetheorganiccompositionofcapital.Secondly,iftheorganiccompositionofcapitalishigherinindustriesproducingcommoditiesthatdonotreturntheproductionprocess,likeluxuriesandarms,thanthoseproducingmeansofproductionandmeansofconsumptiontheprocessofequalisingprofitrates(thetransformation)willreducethepricesofproductionofmeansofproductionandmeansofconsumptionandraiselikeluxuries.Astheinputsintothenextroundofproductionwillbecheaper,therateofprofitfromthatroundwillbehigher(Harman1984:3843,Harman2009:49,12932).ThemoreorthodoxTrotskyistErnestMandelformalisticallyidentifiedthetendencyfortherateofprofittofallasacauseofcapitalistbreakdownbutdidnotrelateittocyclicalcrises,whichheattemptedtoexplainbysynthesisingunderconsumptionistanddisproportionalitytheory(Mandel1968:16670,34279).ThemainthemeofhishighlyeclecticLateCapitalism

(1975)wasatechnologicallydeterministaccountofeconomicfluctuations,usingtheconceptoflongwaves.Therevivalofclassandsocialstrugglesfromthe1960screatedawideraudienceforMarxistideas.Insideandoutsideuniversities,someolderMarxistpoliticalorganisationsexpandedandnewonesweresetup.Maoistorganisationsmadethemostrapidgainsinmanydevelopedcountries.OrganisationsfromtheTrotskyisttraditionalsorecruitedandsome,notablyinBritain,France,theUnitedStatesandAustralia,sustainedtheirinfluenceformuchlonger.Inuniversities,agenerationofMarxistundergraduatesandgraduatestudents,someofwhomwentontobecomeacademicsemerged.Theirtheoreticaleffortseventuallygaverisetonewjournals.ThosewhichhadasubstantialMarxisteconomiccontentandstillappearincludeReviewofRadicalPoliticalEconomics(founded1969)andResearchinPoliticalEconomics(1977),intheUSA;Prokla(1979)inGermany;CapitalandClass(1971)andCritique(1973)inBritain;JournalofAustralianPoliticalEconomy(1977);StudiesinPoliticalEconomy(1979)inCanada.ApartfromMonthlyReview,otherolderjournals,whichsurviveandhavepublishedsignificantarticlesonMarxisteconomicsincludeScience&Society(1936)intheUSA;InternationalSocialism(1958)andNewLeftReview(1960)inBritain;DasArgument(1959)inGermany.Between1967and1971,studiesbyGrossmanwererepublishedinGermany;fromthemid1970s,translationsofworkswhichhadoriginallypublishedinGermanappearedinFrench,Italian,English(inabridgedform,withanintroductionbyTonyKennedy,Grossmann1992),SpanishandSerboCroatian.ArgumentsbyMattickandRosdolskythatsupportedorbuiltonGrossmanspositionfoundnewaudiences.Therepublicationsandtranslationswereprecededandfollowedbynewappreciationsandapplicationsofhiswork,stimulatedbytheendofthelongpostwarboomandhencethedwindlingcredibilityoftheKeynesiantheorieswhoseproponentshadclaimedcreditforit.4Thedeclineinthelevelsofclassandotherstrugglesfrombelowafterthe1970s,contrarytothehopesofrevolutionaries,demoralisedmanyandthefarleftcontracted.AlsounderminedbytheturninChineseforeignpolicytoreconciliationwiththeUSA,mostMaoistorganisationscollapsed.SeveralgroupsfromtheTrotskyisttraditionfaredbetterinBritain,France,theUSAandAustralia.AsthetideofstrugglerecededMarxistacademics,particularlythosewhowerenotintegratedintorevolutionaryorganisations,werestrandedonthe(relativelycomfortable)beachoftenuredappointmentsandwereaffectedbythechangedpoliticalclimate.AlanFreemanpointedoutthatmostacademicMarxistsfromthe1960seithercontinuedthetraditionofwesternMarxism,primarilyconcernedwithphilosophy,literatureandcultureratherthanthematerialbasisofsocialrelations;or,likeSweezy,theydepartedfromfundamentalaspectsofMarxsanalysisofproductionrelations,includingtherelationshipbetweenvaluesandpricesofproduction,infavouroftheequilibriummethodologyofmainstreameconomics.Theincreasinglyconservativeatmosphereputpressureonradicalacademicstomoveontohighergroundthatwassaferfortheircareers,thatis,totheright.Sometookapostmodernistpath,evenineconomics,whileothersconcludedthatmajoramputationswerenecessaryinordertosaveMarxisttheory.TheneoRicardiancritiqueofMarx,whichdatedbacktoBortkiewicz,gainedparticularmomentumduringthe1970sincludingamongstselfidentifiedMarxists(seeGanmann1983;alsoSteedmanetal.1981,4 AmongstthemostimpressivediscussionsorapplicationsofGrossmansworkduringthe1970s

wereDeutschmann1973,Schmiede(1973)andCogoy(1987b),inGerman;Cogoy(1987aand1987c)inFrench,althoughthesedrewgreaterattentionamongstreadersofEnglish;Yaffe(1973),whohadearliercollaboratedwithSchmiede,andShaikh(1978)inEnglish;Marramao(1975)inItalian.

whichcontainsanessaybySweezydefendingthelabourtheoryofvalueanddistancinghimselffromtheBortkiewiczmodelhehaddonesomuchtopopularise,Sweezy1981:256;Freeman2010:86).Journalsnotassociatedwithpoliticalorganisationsbecameincreasinglyacademicasmassmovementssubsided.Fromtheearly1980s,however,advocatesoftheTemporalSingleSystemInterpretation(TSSI)oftherelationshipbetweenvaluesandpricesdefendedMarxstreatmentofthetransformationofvaluesintopricesinCapital3andthus,bydemolishingsolutionswhichwereincompatiblewithhisaccountofthetendencyfortherateofprofittofall,reinvigoratedthisexplanationofcrises.Theyexplainedthatthevaluesoftheinputsforeachcycleofproductionwerethepricesofproductionoftheoutputsofthepreviouscycle(seeKliman2007:1414,15765).ThecontroversyoverMarxistcrisistheoryandparticularlythelongrundebatebetweensupportersofexplanationsintermsofthetendencyfortherateofprofittofallandunderconsumptioncontinuedinrivalinterpretationsoftheglobalcrisis(forexample,fallingrateofprofit:Harman2009,McNally2010,Kliman2012;underconsumption:FosterandMagdoff2009).JohnBellamyFosterandRobertMcChesneycontinued,aseditorsofMonthlyReview,toinsistonthetruthofSweezysunderconsumptionismandextendedthemyththatGrossmanbelievedintheinevitablebreakdownofcapitalismtolaterproponentsofhisanalysisaswell(FosterandMcChesney2010,alsoFoster1986:1214).TheyalsorecruitedMichaelHeinrich,theGermanMarxologistwhoseapproachderivesfromthedifferenttraditionoftheNeueMarxLektre(newreadingsofMarx)andalsohasaffinitieswithpostmodernism,totheprojectofcombatinginEnglishMarxsexplanationofcrisesintermsofthetendencyfortherateofprofittofall.Tothisend,HeinricharguedthatMarxbrokeinsufficientlywithhislabourtheoryofvalue;thatthereisnosystematicrelationshipbetweenvaluesandprices;and,inthespiritoftheFrankfurtSchoolshostilitytoempiricalresearch,thatsurplusvalueisanonempiricalcategory.OkishioandneoRicardianpropositionsservedhimasdemonstrationsoftheuntenabilityofMarxslabourtheoryofvalue(Heinrich2013and,atgreaterlength,Heinrich2006:27284,32841).HeinrichprojectedhisownconclusionsontoMarx.Infact,Heinrichpulledhisconclusionsoutofhisownpomoinclinations.HisostensibleevidencefrommanuscriptsandeditionspublishedinthenewCollectedWorksofMarxandEngelsamountedtomakingfancifulinterpretationsofthebreadthofMarxsresearchinterestsandofafewbriefcommentsmadeduringthe1870sand1880s(seedevastatingcriticismsbyCarchediandRobertsforthcomingaandforthcomingb;andKliman,Freeman,Potts,GusevandCooney2013).ReferencesAlbo,G.(2004)InMemoriam:PaulSweezy,19102004.PaulSweezyandAmericanMarxism,Studiesin

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