the fall in the average rate of profit

8/13/2019 The Fall in the Average Rate of Profit

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The Fall in the Average Rate of Profit - the Crisis and

its Consequences

From Prometeo 1 Series VII, July 2009 In our last

issue we published an article rom Prometeo, the

theoretical !ournal o "atta#lia $omunista %P$Int& on the

cost o the crisis so ar or to the wor'in# class( )ere

we present a second article rom that issue on the same

theme o the economic crisis, this time on the

prospecti*e or the capitalist crisis whose underlyin#

cause is not inancial speculation but the permanent

problem or capitalism o the declinin# rate o proit(

$apitalist relations o production are based on a

undamental law the creation o surplus *alue throu#h

the realisation o proit( +he uneual relationship

between capital and labour #oes beyond capital simply

ma'in# a proit but in*ol*es the e-tortion o the ma-imum

proit possible( In this conte-t the ma-imisation o

proit is only achie*able throu#h e-tended reproduction

based on increasin# the e-ploitation o labour power and

thereby increasin# the rate o surplus *alue( +he process

o accumulation, the concentration o the means o

production and the centralisation o capital all low

rom this as a natural conseuence(

In the early period o capitalist de*elopment theob!ecti*e o e-tortin# the ma-imum proit was achie*ed by

len#thenin# the wor'in# day as ar as was humanly

possible( .bsolute surplus *alue was the main source or

the ma-imisation o proit( +he wor'in# day reached 1/

hours in "ritain and other ma!or industrialised

countries( In this type o accumulation the composition

o capital did not si#niicantly chan#e, leadin# not only


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to an increase in the mass o proits but also in the

rate o proit(

"ut the inite limits o the wor'in# day which, e*en i

ta'en to e-tremes cannot #o beyond 2 a day, orced

capitalists aimin# as always to ma-imise proit down

the road o reducin# the necessary labour time throu#h

the e*erincreasin# use o relati*e surplus *alue(

+his allowed capital to urther increase the social

producti*ity o labour, the rate o e-ploitation and the

mass o proit(

)owe*er, as technolo#ically ad*anced machinery replaced

labour power the or#anic composition o capital rose,

thus settin# in motion the conditions or a all in the

rate o proit( +he increase in dead capital in relation

to li*in#, or constant to *ariable capital in other

words a #reater increase in capital tied up in machinery

and raw materials compared with the number o wor'ers

in*ol*ed in production leads to an increase in the

e-traction o surplus *alue and a hu#e #rowth in the mass

o proits, but also to a reduction in the rate o

proit(

I the rate o proit is the relationship between

realised surplus *alue and the mass o total capital

employed, the more the number o wor'ers is reduced in

relation to constant capital the more the basis or

e-tractin# surplus *alue is reduced( ore precisely, the

mass o total capital in*ested per unit o producti*e

labour increases as does the surplus *alue produced by

any indi*idual wor'ers in the process o accumulation(

+he mass o proit increases but the rate o proit

declines on the basis o the increase in the or#anic


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composition o capital( .s is well'nown, the ormula s3$

represents the rate o proit where s is the uantity o

surplus *alue e-torted(

+his is calculated by multiplyin# the surplus *alue

created by a sin#le wor'er by the number o labourers

employed(

$ is the total social capital, i(e( the sum o constant

and *ariable capital( It ollows rom this that

increasin# the latter in relation to the ormer, i(e(

reducin# the number o labourers in relation to the

increase in capital employed, creates the conditions or

a all in the rate( In mathematical terms, i the

numerator diminishes in relation to the denominator, the

numerical result is lower( +he relationship between s and

$ is the e-pression o the or#anic composition o capital

whose increase pro*o'es the all in the rate o proit(

+he or#anic composition o capital is calculated by

comparin# constant capital with *ariable and by

e-pressin# the i#ure or their reciprocal relationship

in percenta#es o the total capital( For e-ample, i the

uantitati*e relationship between constant and *ariable

capital was 40320 the or#anic composition would be 005(

I we increase the irst i#ure %constant capital& and

lower the second %*ariable capital& to 90310 the or#aniccomposition would rise to 9005(

+he more the or#anic composition rises, the more it

brin#s into play the law o the tendency or the a*era#e

rate o proit to all( .part rom short periods,

capitalism cannot escape rom this law which is immanent

to its relations o production(


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Its operation is shown in the speciics o its

undamental contradictions, a course which leads to

capitalism6s decline as a mode o production and which

brin#s with it a series o de*astatin# economic and

social conseuences(

+he more the rate o proit declines the harder it is or

capital to ind ways to e-press its *alorisation( +he

more the process o *alorisation slows, the more the rate

o increase o socially produced wealth proportionally

decreases( +his is despite the enormous increase in

producti*ity and in the e-ploitation o the labour orce(

+hus it is really the increase in the social producti*ity

o labour, the #rowth in e-ploitation the relati*e

surplus *alue which is at the root o the law( .s ar-

says in the +hird Volume o Capital%at the be#innin# o

$hapter 17&8

+he pro#ressi*e tendency o the #eneral rate o proit

to all is, thereore, !ust an expression peculiar to the

capitalist mode of production o the pro#ressi*e

de*elopment o the social producti*ity o labour( +his

does not mean to say that the rate o proit may not all

temporarily or other reasons( "ut proceedin# rom the

nature o the capitalist mode o production, it is

thereby pro*ed to be a lo#ical necessity that in its

de*elopment the #eneral a*era#e rate o surplus*alue

must e-press itsel in a allin# #eneral rate o proit(:

.s e*idence or this we can see that the rate o #rowth

o world production has been pro#ressi*ely declinin# due

to the hi#h or#anic composition o capital in the

economy( In the decade 19;040 the rate o increase o

international producti*e capacity was


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In the decade 19902000 it reached a miserable 1(095( +he

subprime crisis then did the rest, imposin# a recession

on world production which declined substantially below

=ero( I we consider the #rowth o world production per

capita or the same period the i#ures are e*en worse(

From 7(;/5 in the decade 19;040, it went to 0(/95 in the

ne-t decade, inishin# up at 0(195 in the decade 1990

2000( +he decline in the increase in world production

isn6t due to the act that needs ha*e been satisied

better or that demand or #oods and ser*ices ha*e

autonomously contracted( +his decline is due to the

diiculty o *alorisin# capital which, discoura#ed by

decreasin# proit mar#ins, is in*ested less and less in

real production as it responds to the siren call o

speculation( In the same period, albeit with dierences

rom one area to another, plant utilisation ne*er went

abo*e ;/5 whilst speculation attracted more and more

capital which pre*iously went to producti*e in*estment(

Just how the two phenomenon are related can be seen in

the act that where the process o ma-imisin# proit

becomes diicult capital turns to see' e-tra or super

proits or an additional #ain( +his adds nothin# to the

uantity o #oods and ser*ices produced but it allows bi#

capitals to acuire surplus *alue produced elsewhere( .t

the same time it a*ours the birth o hu#e monopolies in

the real producti*e sector where the monopolistic price

can be used to compensate or the losses arisin# rom the

all in the rate o proit( It also promotes hu#e

inancial holdin#s dedicated to speculation which

continue until the bubble bursts and reduces their

proits and inancial #ains to =ero(

First there was the >nron, $irio and Parmalat cases, then

the inancial crisis lin'ed to subprime mort#a#es


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e-ploded and the entire capitalist system entered the

most deep and de*astatin# crisis since the 1970s( ?e ha*e

to add, howe*er, that the inancial bubble burst in a

real economy which was already in deep crisis and this

was the cause and the sprin# which unleashed e*erythin#(

@eneral >lectric and @eneral otors are two prime

e-amples( +he two bi##est corporations in the world ha*e

had recourse to inancialisation to deal with their

proits crisis( In the space o orty years they went

rom proit rates o 205 to


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o*ercome without destroyin# the *ery ictitious capital

which contributed to its creation( Aecently, since the

end o the 1990s, stoc' mar'et crises ha*e ollowed one

another at an e-traordinary rate(

Followin# the burstin# o the Aussian and .sian

speculati*e bubbles, the BS Stoc' >-chan#e has produced

the #reatest destruction o ictitious capital in

capitalism6s history, e*en surpassin# that o 1929(

"etween January 2000 and Cctober 2002 the Dow Jones ell

rom 11;22 to ;24/ points, amountin# to a 745 loss in its

share capital( +he E.SD., or stoc' mar'et or hi#h tech

irms, ell 405( C*er the same period %arch 2000 to the

third uarter o 2002& the conseuence o the two stoc'

mar'et e-plosions amounted to a net loss o G4,00

billion( +he present crisis has done the rest( Eot only

has it made ma!or BS inancial institutions #o to the

wall, it has orced state inter*ention to a*oid a #lobal

ailure o the whole credit system and the real economy

itsel( In the inal analysis these speculati*e bubbles

are created by the inancialisation o the crisis as

capital increasin#ly turns to increasin# its inancial

re*enue and searchin# or e-tra proit in order to re*i*e

continuously declinin# proit rates and sol*e the

economic crisis( Its ine*itable end only poses the same

crisis situation a#ain but at a hi#her and more critical

le*el( It ne*er escapes rom the *icious circle which is

typical o capitalism in all sta#es o its e-istence but

which in its period o decay is de*astatin#( +he most

ob*ious e-ample is today, where the economic and

inancial world ace an unprecedented crisis which ma'es

the crises o the early 2000s and e*en that o the 1970s

loo' pale by comparison(


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. low rate o proit not only slows the process o

*alorisation down, it also ma'es it diicult or new

capital to be created( . capital o hi#h or#anic

composition, with its reduced rate o proit, is orced

to accumulate more rapidly( +he increased *elocity o

accumulation produces a #rowin# mass o proit but at the

same time lowers the rate o proit and the rate o its

*alorisation( >-actly the same dynamic e-plains how in

periods o accentuated crisis, distin#uished by #reater

intensity o o*erproduction o capital unable to ind

adeuate proit mar#ins, capital see's a *ariety o ways

out, such as economic concentration, inancial

centralisation and speculation( .s ar- said when

reerrin# to the contradictions inherent in the law at

the be#innin# o $hapter 1< o CapitalVolume +hree,

Cn the other hand, the rate o sele-pansion o the

total capital, or the rate o proit, bein# the #oad o

capitalist production %!ust as sele-pansion o capital

is its only purpose&, its all chec's the ormation o

new independent capitals and thus appears as a threat to

the de*elopment o the capitalist production process( It

breeds o*erproduction, speculation, crises, and

surpluscapital alon#side surpluspopulation(:

.nd the e*idence or this can be seen in the increasin#ly

central role o inance capital, the stoc' e-chan#e,

ban's, in*estment unds and inancial holdin#s(

Ee*er in the history o the all in the a*era#e rate o

proit has inancial capital assumed such a dominant role

within capitalist producti*e relations( .nd ne*er beore

has the stru##le between ma!or international currencies

or supremacy in the money mar'ets, that instrument or

reappropriatin# capital, been so *iolent(


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.nother eect o the proits crisis is sharpened

competition or trade, both domestically and

internationally( +he more the mechanism or accumulation

and *alorisation o capital lac's o-y#en the harsher the

competition between capitals( +he race or #reater labour

producti*ity, intensiied e-ploitation throu#h the

increase in relati*e surplus *alue, e-acerbates the

competition between capitals a competition which is in

turn the product o the proits crisis and produces, as

its irst conseuence, a historic attac' on the li*in#

and wor'in# conditions as well as the wa#es o the

wor'in# class(

$hronolo#ically the e*idence is star'( I we compare the

times o these attac's with the steepest all in proits

it shows that the economic and social dynamic is the

restriction o on proit mar#ins( It all started in the

mid 19;0s when the rate o proit touched its historic

low le*el o less than


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Increasin#ly the relationship between capital and wa#e

labour is one in*ol*in# more le-ibility and !ob

insecurity to an e-tent uneualled in recent history( +he

proits crisis means that, in addition to reducin# labour

costs, the capitalists also ha*e to ensure that the

labour orce is only employed when the *alorisation o

capital demands it and then that wor'ers are

automatically laid o when no lon#er needed( $apital

cannot allow itsel the luxuryo maintainin# a wor'orce

which it is not able to e-ploit at a rate compatible with

its own *alorisation needs( Eeoliberalism and

#lobalisation are the real osprin# o the proits

crisis(

Cnce e-tolled by leadin# bour#eois economists or their

extraordinary advantages, they are now bein# discarded as

no-ious to the healthy de*elopment o capitalism in

a*our o state inter*ention(

Het the se*ere limits to the process o *alorisation

within the *arious national capitals has imposed on bi#

capital the need to o*ercome all possible barriers to the

circulation o capital, commodities and the procurement

o strate#ic primary products and labour power at the

lowest possible price( +he e-port o inance capital, the

delocalisation o production, the intensi*e e-ploitation

o the wor'orce at *ery low cost, these are all the

ine*itable corollaries o the slow pace o *alorisation

typical o the ad*anced capitalist countries with a hi#h

or#anic composition o capital( I all these ob!ecti*es

are realisable on the le*el o normal: imperialist

competition, ine, otherwise the orce actor inter*enes

to resol*e thin#s( ?ar has become the daily means by

which imperialism see's to obtain desperately neededeconomic and inancial ad*anta#es( Is there anythin# new


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under the capitalist sun here $ertainly not, but in the

present phase o capitalism, warmon#erin#, li'e any other

orm o imperialist beha*iour, is directly proportional

to the #ra*ity o the economic crisis( +he tendency or

the rate o proit to all doesn6t create new

contradictions or unusual orms o beha*iour on the world

mar'et, but its does ma'e them worse, pushin# them to

e-tremes as serious and desperate as the crisis which

produced them(

From the all o the So*iet >mpire to today, whilst the

?estern bour#eoisie ha*e been crowin# about its *ictory

and announcin# a new period o peace and prosperity, the

abyss o international crises and imperialist war has

opened up with an intensity and *iolence not seen in

recent years( In all areas rom economic to political

actors, both in domestic and international terms, in the

relationship between capital and labour and in the resort

to arms the situation has #ot worse( +hus

interbour#eois tensions ha*e multiplied and intensiied

in an or#y o decadence where increased e-ploitation o

the proletariat, increased po*erty in #eneral, are the

only constants in a capitalism tryin# to put to#ether the

conditions or its own sur*i*al(

The Decline of the Average Rate of Profit in Figures

In bour#eois literature it is diicult to ind clear

data on the all in the a*era#e rate o proit( +he

e-planation is ob*ious( Eo bour#eois economist, howe*er

aware and earul o the law and its disastrous

conseuences, can openly coness to in*esti#atin# the

relationship between the mass o proit and the total

capital employed to obtain it( Eot so much because they

don6t want to use ar-ist economic cate#ories, althou#h


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they always re!ect them, but more simply because they

i#nore the problem when they put the mass o proit at

the centre o the issue and not its rate( >*en so, on the

basis o the 'nown acts, they do issue warnin#s about

declinin# returns on industrial in*estment and the lac'

o *alorisation o in*ested capital( Publicly they

pretend that the e-planation lies outside the relations

o production, as i it were a uestion merely o the

mar'et or the sale o #oods or, at most, o a dysunction

in the producti*e process and thus that a read!ustment o

these actors would resol*e the problem( >*en so, when

the capitalist mana#ers attempt to deal with the worryin#

conseuences o the all in the rate o proit they are

orced to deal with the cause o the problem and not its

economic eects, thus brin#in# into play a *ast series

o countermeasures( . mar-ist analysis is a lot simpler

and more eecti*e because it is stripped o any

constraints or mystiications it is based on the dynamic

o the real acts centred round the anta#onistic and

contradictory aspects o capitalism(

In order to loo' at both the law o the decline in the

rate o proit, and the countertendencies it pro*o'es,

we6ll loo' at the e-ample o the postwar BS economy( +he

choice is orced on us because the i#ures relatin# to

proit in the BS economy are the best 'nown and best

researched( .ccordin# to the French Institute o Eational

.ccountability %IES>>& the a*era#e rate o proit o the

BS economy rom 19


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a all o 215 rom the pea' o 199;, a all which carried

on until 200;(

In percenta#e terms what has happened is that in theirst period we went rom an a*era#e rate o proit o

22275 to 11125( In the second it went bac' up to 145

only to all once a#ain in the third to 15( +he i#ures

tell us that, on the basis o chan#es in the or#anic

composition o capital, the rate o proit has to all in

the lon# run( In the short term howe*er, due to

e-ceptional circumstances as a result o the operation o

certain countertendencies, the rate o proit can #row or

else its decline can be clearly slowed down(

See Fi#ure 1 top o p(148 +he rate o proit in the post

war BS economy

+he apparently contradictory aspect deri*es rom the act

that in the irst period %the golden age& when the rate

went rom 225 to 125, the BS economy #rew enormously at a

rate ne*er reached a#ain in succeedin# decades(

+he a*era#e rate o annual increase in @DP was around


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e-planation or the all in the rate o proit is the

rise in the or#anic composition o capital, itsel dri*en

by the e-traction o relati*e surplus *alue(

In the space o thirty years the latter increased by 15,

#oin# rom 7(


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the BS economy a competiti*e ed#e in commodity prices and

thereore on the balance o its current account(

+he second was the hi#h interest rate policy promoted by

the BS Federal Aeser*e with the aim o recyclin# the

enormous mass o petrodollars which had shited rom the

industrialised countries towards the oil producin#

countries ater the irst, e-traordinary, increases in

the price o crude oil(

+a'en to#ether, these two actions ensured that the dollar

would continue as the main tradin# currency in all the

world mar'ets %925 o all trade was in dollars& and that

resh sources o capital would low towards the asthmatic

BS economy to be in*ested partly at home but mainly

abroad( ?ith an increasin#ly de*alued dollar in relation

to competin# currencies, yet still retainin# the dominant

international e-chan#e medium, the BS was able to reco*er

its competiti*e ad*anta#e than's to the conseuent

relati*e lowerin# o the price o BS #oods(

See Fi#ure 2 below8 Aeal )ourly ?a#es in the BS.

+he third actor, and certainly the most important, was

the reduction in labour costs( Kower ta-es on irms,

lower money costs and, abo*e all, sta#nation o real

wa#es which did not increase at all throu#hout the entire

period( Indeed wa#es declined thereby contributin# to a

reco*ery in the industrial and manuacturin# rate o

proit to 205( In the buildin# sector thin#s were e*en

better or the capitalists( "etween 19;4 and 1997 real

wa#es in this sector ha*e been reduced by 1(15 a year,

allowin# in*ested capital to obtain a rate o proit o


16/42

o class stru##le which allowed capital to restore proit

mar#ins relati*ely easily( ?here wor'in# class response

to the attac's o a crisisridden capitalist system is

wea', or e*en none-istent, it becomes more practicable

or the capitalists to impose the policies o the

countertendencies with the aim o restorin# si#niicant

proit mar#ins(

+hese policies include the inamous calls or sacriices

which are still in orce today( Cri#inatin# in the BS.,

they ha*e spread to the rest o the ?estern world with

the compliance o the unions and the Ket( +he e-port o

inancial capital and the shit to #lobalised production

did the rest(

Despite the consistent reco*ery in the rate o proit in

the 1940s and 1990s the latest crisis has brou#ht the BS

economy bac' to the same precarious situation as at the

end o the period o e-pansion(

"y 1994 a series o problems, which the artiicial

re*i*al o the 1990s had concealed, came to a head( +he

#ambit which had be#un with Aea#anomics in the 1940s went

into crisis( It was based on the drainin# o world

sa*in#s to the BS. by means o hi#h interest rates and

the dominant role o the dollar, but it also in*ol*ed

abandonin# some traditional sectors o the economy and aconseuent reduction in competiti*eness( oreo*er, the

crisis encompassed orei#n in*estments, the

delocalisation o production and the hi#h tech sector on

which most o the strate#y was based( +he increasin#

indebtedness o the state, o irms, o amilies tryin#

to buy houses and the means o daily e-istence, produced

a real tra#edy whilst the rate o proit ine-orably

declined( +he more proits declined the more the recourse


17/42

to parasitism, and increased inancialisation o the

crisis( .nd so the speculati*e bubble e-panded

e-ponentially, creatin# the conditions or the e-plosion

in .u#ust 200;( +he worst aspect o all this is that,

once a#ain, the international proletariat is bein# as'ed

to pay the price( ?hen the speculati*e bubble which

swelled to pro*ide cheap credit or companies and

amilies as well as the entire economic system burst,

billions o dollars were wiped out in a ew days in the

ictitious stoc' mar'et en*ironment( +his created a

crisis or the whole system o inance, a crisis which

re*ealed the limitations o the entire capitalist system,

includin# a real economy which was already massi*ely

wea'ened, and which was now thrown into the abyss( +he

housin# mar'et collapsed li'e a house o cards, then all

the most important producti*e sectors, includin# hi#h

tech, be#an to show si#ns o collapse( Pre*ious

in*estments in constant capital and sotware had already

reduced producti*ity( Cn a*era#e, beore this urther

all in producti*ity, plants were wor'in# at around /05

o capacity( In addition the 7(


18/42

annum or the period 20007 beore #oin# down to minus /5

today(

+he o*erall result is a colossal reduction in net

proits( +he mass o proit o electronics irms ell

rom G


19/42

solution: or the #reat powers in pursuit o their

economic and strate#ic interests(

See Fi#ure 7 abo*e8 Proit Aates or @ermany, the BS. and

Japan

+he operation o the law o the all in the rate o

proit in the BS. is paralleled, e*en i the timin# is

sli#htly dierent, in all the ma!or >uropean countries

%"ritain, France and @ermany& and this has opened up a

period characterised by si- actors(

1( .n economic attac' on the labour orce which in

terms o len#th and intensity has no eual in the

recent history o international capitalism( +he

intensiied e-ploitation o labour power throu#h

increased producti*ity brou#ht about by reducin# the

time and cost o production o commodities has not

produced #reater wealth or shorter hours or

wor'ers, rather it has done the opposite( In a

capitalism o hi#h or#anic composition and low rate

o proit an increase in labour producti*ity implies

lower wa#es, a lon#er wor'in# day, the dismantlin#

o the welare state and increased !ob insecurity,

as a result o the increased ri*alry between

capitals pushed into the *orte- o competition by

the proits crisis(2( +he e-port o inancial capital, the dispersal o

production, the tireless search or labour mar'ets

where the cost o labour power is massi*ely lower

than domestic rates, all these ha*e become a

condition or the sur*i*al o capitalism in crisis(

>ntire areas ha*e been ta'en by storm by capitals in

search o a hi#her return rom low cost labour

mar'ets( >astern >urope has become one o those


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areas to which France, @ermany and Italy ha*e

e-ported a #ood part o their manuacturin#

industry( South >ast .sia has pro*ided the same

unction or Japan and lately also or $hina( +he BS

colossus, thou#h with eet o clay these days, has

shited to .sia and .rica in order to compete with

$hina as well as to those areas o South .merica

which still remain submissi*e to the imperialist

role o ?ashin#ton(

7( Aecourse to inancialisation throu#h super or e-tra

proits, a systematic recourse to speculation and

parasitic acti*ities, the creation o ictitious

capital, #i*e a sense not only o the diiculty o

*alorisin# capital but e*en o the decadence o the

entire international capitalist system(

( +he present crisis has urthermore made it clear

that we are not !ust dealin# with a crisis o neo

liberalism but o the entire economic system which

has reached the inal phase o the third cycle o

accumulation( +he same bour#eois economists who were

only yesterday e-pressin# ears about the role o

the State in the economy as the worst o all e*ils

in*o'e it today as the only road to sal*ation( +hey

ha*e or#otten that it is not the orm o the

mana#ement o producti*e relations which can wipe

out the system6s contradictions but, on the

contrary, it is the crisis o the system which rom

time to time re*eals the limits o whate*er type o

mana#ement is in operation, whether it be liberal,

neoliberal, statist or a mi-ture o them, dependin#

on the pre*ious historical course pursued by

capitalism(

5. +he need to do e*erythin# possible to see' out

mar'ets in primary products, abo*e all in oil and


21/42

natural #as( .ter the BSSA collapsed we witnessed a

process o imperialist recomposition which is still

#oin# on where entire continents, strate#ic areas

and re#ions with ener#y sources ha*e become the

lashpoints or conrontations between the #reat

international predators( From $entral .sia to Katin

.merica, rom the iddle >ast to .#hanistan, rom

the Ei#er Delta to Ira ener#y problems with no hope

o solution are de*elopin# in this imperialist re

ali#nment( .t the same time, o course, there is

also a *i#orous stru##le or he#emony o*er

international currencies( .t irst, in the irst

decade o this century, the dollar rei#ned supreme(

Cil was uoted and sold in dollars( +oday Aussia

sells mainly in roubles, Iran and Vene=uela also

ta'e euros and many @ul countries are tryin# to put

to#ether a bas'et o currencies which would

#enerally replace the dollar as the #lobal oil

currency( For se*eral years there has been a #rowin#

opposition rom other currencies to the dollars

droit de seigneur: on the world oil mar'et( Bntil

1999 925 o international trade too' place in

dollars( +oday it is only 05 with 05 in euros and

the remainin# 205 in the yen and renminbi(

/( +he war actor, e*er present in imperialism, is

ta'in# on a particularly acute character( Eo mar'et,

whether in inancial, commercial, orei#n e-chan#e

or primary products, is ree o worryin# tensions i

not the actual sound o war( Death, destruction, and

barbarism are the social and economic constants o

the capitalist crisis( +he sot power: o

newlyelected president Cbama comes as no surprise(

Cbama will close @uantanamo but how many other

prisons o this type will remain in the BS. and


22/42

around the world under the control o the $I. and

the BS military )e oers his hand to Iran but

proposes a renewed sanctions policy i the +ehran

re#ime doesn6t abandon its nuclear policy and

prepare to accept oil a#reements with BS. plc( +he

BS will only lea*e Ira i the "a#hdad #o*ernment

becomes capable o controllin# the military

situation and can produce and e-port oil in the same

way as beore the war, #uaranteein# to the BS a

pri*ile#ed partnership in terms o both supply and

price( Ctherwise .merican troops will remain in

place and at the best estimate this will be a

permanent #arrison o 0,000 men(

For the .#hanPa'istan a-is thin#s are clearer( +he new

administration not only has no intention o sotenin# its

stance, it has set aside tens o billions o dollars or

the socalled war on terror in perect continuity with

the "ush administration( +he aim is not to miss the last

train to #et the ener#y resources o $entral .sia as the

BS openly competes with Aussia and $hina( .t the moment

this is only a war o pipelines but it could, i only

re#ionally, chan#e into a real war as in @eor#ia, Eorth

Cssetia and $hechenya, etc( .dd to this the renewed

eort, as usual ollowin# the "ush line in .rica %$had,

Sudan and Ei#eria&, to combat the deep $hinese

penetration, particularly o*er oil resources( ?hate*er is

happenin# in these countries in terms o #o*ernmental

crises, ci*il wars, clashes between armed #roups %each

supported by an imperialist interest& is a reproo to the

BS @o*ernment which, despite its chan#ed appearance, is

orced to pursue the same old imperialist policy, perhaps

less ob*iously, undoubtedly with a less brutal


23/42

appearance, but always operatin# in e-actly the same

conte-t(

The Temporary Effect of the Counter-tendencies to the

Falling Rate of Profit

.n analysis o the .merican economy rom the 2nd ?orld

?ar until today re*eals two aspects8 the irst bein# that

o*er the lon# term the law o the tendential all in the

rate o proit is continuous( +he second is that the

e-tent o the tendency depends on a series o counter

tendencies which, at best, are only eecti*e in the

short or medium term( +hey can momentarily interrupt the

all in the rate or slowdown the *elocity o the all,

but since this is an inte#ral part o the process o

*alorisation o capital itsel, they can ne*er re*erse

the line o march o the law itsel(

?hile capital on the one hand brin#s into bein# the

conditions or the all in the a*era#e rate o proit, on

the other it see's to contain the conseuences by a

series o initiati*es ta'en to de*alue constant and

*ariable capital(

+hus producti*ity is increased without aectin#, or

hardly aectin#, the hi#h or#anic composition o capital

which is the basis o the all in the rate o proit( In

normal conditions producti*ity rises in line with the

relati*e increase in constant capital compared to

*ariable( "ut more technolo#y si#niies more in*estment

in constant capital which replaces a more or less

consistent share o the labour orce( In other words, the

*ariable capital diminishes more uic'ly than the rate o

increase in constant capital( In this conte-t

producti*ity increases i the cost o the commodities


24/42


25/42

For twenty years the international proletariat has

e-perienced a constant onslau#ht *ia the dismantlin# o

the social state in other words the lowerin# o

indirect and deerred wa#es, albeit in a *ariety o ways

and at dierent times(

First in line are 'ey components such as health, pensions

and public inance or schools and uni*ersities( Aeducin#

unemployment and welare insurance costs, mainly the

state6s contribution but also that o employers

deerrin# the retirement a#e, all these ha*e been

beneicial or capital( .s or businesses, the #radual

reduction o sic' lea*e and the elimination o certain

conditions rom the rubric o oicial illnesses, count

as a sa*in# on indirect wa#es, a#ain to the ad*anta#e o

capital( In Italy the employers are tryin# to #et the

irst three days o illness e-cluded rom wor'ers6

entitlement to sic' pay(

Cne o the most odious practices is the blac'mail o

immi#rant wor'ers and anyone on short term contracts(

+here is a #rowin#, notso*eiled practice, o

threatenin# anyone who complains about the loutin# o

health and saety re#ulations with the nonrenewal o

their contract(

.s or pensions, the attempt to deer the retirement a#ehas lar#ely succeeded, thus reducin# turno*er o the

wor'orce and reein# businesses rom the need to draw up

lon# term contracts, which would cost too much, and

instead to draw up new, short term contracts based on

lower wa#e rates and more le-ible wor'in#( +his is not

to mention reduction in brea's and rest periods so that

there is no disruption to the rhythm o e-ploitation( In

some cases lunch brea's ha*e been literally hal*ed and


26/42

time allowed or physiolo#ical needs drastically reduced(

In metal en#ineerin# %*ehicles& a a*ourite practice is

the speedup %more pieces, more halinished ones, more

commodities produced in the same unit o time& without,

ob*iously, a correspondin# wa#e increase( +his is an

e-ample o the use o relati*e surplus *alue which does

not alter the or#anic composition o capital and which,

thereore, unctions as an eecti*e countertendency(

+he main way o de*aluin# *ariable capital, howe*er, is

by a direct attac' on wa#es, on the mass o wa#es as a

whole in relation to the number o wor'ers( >ither the

o*erall amount o real wa#es #oes down while the number

o wor'ers remains the same, or else the increase in the

wa#e bill is relati*ely lower than the increase in the

number o employees i e*er this actually happens,

because usually the opposite occurs rather, that is,

the number o wor'ers diminishes absolutely as a result

o the necessity to restructure which, in periods o

crisis such as this one, imply redundancies and

unemployment(

+he precise measures capital adopts to obtain this result

are *ery simple( +hey all in*ol*e drastic cuts in real

wa#es, usually with the help o the unions, in line with

the ti#ht mar#ins o the system and the pressure o

international competition( +he hu#e plethora o shortterm

contracts, o temporary wor', o newly drawnup

contracts, all ha*e the common denominator o hei#htenin#

insecurity or those who do the wor'( . labour orce that

is only a*ailable durin# the economic #ood times when it

can be proitably e-ploited and con*ersely, which can be

#ot rid o in economic downturns, is an optimum method o

containin# wa#e increases and lowerin# the costs oproduction( "y law e*ery new contract, whate*er the


27/42

speciic details, is based on a wa#e reduction o up to

05 or the same amount o wor' in the same enterprise(

+he stubborn *icious circle into which the proletariat

has allen ollows scientiically calculated rhythms(

Cnce the old wor'ers who had !ob security ha*e reached

retirement a#e and the old contracts ha*e come to an end,

almost e*ery youn# wor'er enters the production process

or a determinate %precarious& amount o time and at a

lower, much lower, wa#e than pre*iously( +he new way o

mana#in# the relation between capital and labour, imposed

by the e*ernarrowin# mar#ins o proit realised by

enterprises, has the immediate eect o de*aluin#

*ariable capital without impactin# on the increased

or#anic composition o capital( Practices such as this

ha*e been in orce or two decades, be#innin# with Japan,

the BS. and "ritain in the 1940s, then, at the be#innin#

o the Eineties, in >urope as well, co*erin# e*ery sector

o real production and the main branches o the ser*ice

sector(

Cne o the innumerable e-amples, rom the automobile

sector, is that o @eneral otors( C*er orty years the

bi##est car producer in the world went rom a rate o

proit o 205 to


28/42

+hrou#hout the Si-ties and Se*enties the Detroit company

built its producti*e capacity on a *ery hi#h or#anic

composition o capital %more in*estment in constant

capital than in *ariable, more machinery than labour

power&, thus depressin# the proitability o its capital(

Its rate o proit is as can be seen(

+his is what persuaded the company directors to withdraw

a certain portion o capital rom production and switch

to speculation with the result, in the short term, o

recuperatin# in the inancial sphere what they had lost

rom real production( So lon# as the #ame o creatin#

ictitious capital continued thin#s went well, but as

soon as the speculati*e bubble burst e*erythin#

collapsed( +he stoc' mar'et losses were added to the

losses rom production, puttin# the colossus o .merican

industry on the brin' o ruin and possibly urther(

Sales ha*e allen by


29/42

rather to puttin# the e-ploitation o labour power %which

the crisis has called into uestion& bac' on its eet(

"ut the crisis is not only about statistics(

"ehind the i#ures lie the destinies o millions o

wor'ers and their amilies and the dreadul prospect o

bein# out o wor', without unemployment beneit, without

a house and acin# a uture o lon# term po*erty( +he

irst step ta'en by @ was to immediately shut down i*e

plants in the BS. and our in >urope( +he same .merican

analysts ear that i @ ails completely, drawin# the

enormous networ' o irms dependent on @ into the drama,

then a million !obs would be lost( .nd i the other two

ma!ors in the automobile sector, $hrysler and Ford, were

to #o the same way then almost three million would be

unemployed( C*er the past year unemployment has risen by

se*en million, two million o them in the early months o

2009( C*erall it6s estimated that unemployment, includin#

the socalled hidden unemployed, has already reached 1/

million( +he number o wor'ers %in part e-& without

medical insurance has #one rom 0 to ; million( +his is

a social catastrophe which is due to #et worse by the end

o the year( +here hasn6t been a cyclone or any other

natural disaster to cause such disturbance, but only

capitalism pushed to the ed#e o ruin by its insoluble

contradictions(

It is the same scenario in the rest o the .merican and

international economy, rom $hina to Aussia, rom Japan

to >urope( In Italy the i#ures are lower only because

the epicentre o the crisis is beyond the ocean and

because the proportions are dierent, but e*en here the

causes and mechanisms o the depression are the same(

Fiat6s sales ha*e collapsed by 05, its inancial arm has


30/42

lost all it could lose on the stoc' mar'et and the *alue

o its shares has allen to an historic low( ?ithout

State inter*ention %at least urope( In Italy the

i#ures are lower only because the epicentre o the

crisis is beyond the ocean and because the proportions

are dierent, but e*en here the causes and mechanisms o

the depression are the same( Fiat6s sales ha*e collapsed

by 05, its inancial arm has lost all it could lose on

the stoc' mar'et and the *alue o its shares has allen

to an historic low(

?ithout state inter*ention %at least


31/42

$apital, with the responsible: collaboration o the

unions, see's irst o all to delay new wa#e a#reements

or as lon# as possible( .t times it is not only a

uestion o months, but o years, beore the parties

mana#e to reach an a#reement( ?hen they do, capital tries

to impose yet more sacriices centred round deerrin#

wa#e rises or else a wa#e rise is conceded but on the

assumption that any increase will be within, or rather

well reduced, by inlation and ar below any increase in

producti*ity(

+he other route capital ta'es to reco*er proit mar#ins

is that o len#thenin# the wor'in# day( >*en thou#h it

carries on increasin# relati*e surplus *alue, by

increasin# the producti*ity o labour throu#h

technolo#ical inno*ation, this only increases the mass o

proit whilst, howe*er, lowerin# the rate( $apital is

thus also obli#ed to return to the pursuit o absolute

surplus *alue, obtained by prolon#in# the wor'in# day( It

is li'e an historical parado-, as i capitalism had #one

bac' two centuries, e-cept that it is the reality o

modern capitalism which is imposin# this situation(

.t the present sta#e it is no lon#er enou#h to respond to

the allin# rate o proit by increasin# the mass o

capital( $apital also must attempt to add absolute

surplus *alue to the relati*e surplus *alue, in a sort o

ceaseless eort which ne*er succeeds in o*ercomin# the

insoluble contradictions that the process o *alorisation

continually poses to its bein#( Eow that it has at its

disposal an increasin#ly eeble proletariat, di*ided

politically as much as it is economically, with no !ob

security and easily blac'mailed, almost e*erywhere

capital is be#innin# to impose a lon#er wor'in# daywithout any increase in wa#es( ?e are !ust at the


32/42

be#innin#, but these 'ind o practices, e*en i they are

unoicial or presented as ma'eshit responses to

speciic crisis situations, ha*e already come into

operation( +he French e-periment with the 7< hour wee',

which in any case is only nominal since it is hardly e*er

put into practice, was obtained at the e-pense o !ob

security and the relinuishin# o all opposition to its

implementation( In the same *ein, the @erman

metalwor'ers6 union %I@etall& has a#reed that in certain

instances the wor'in# day can be prolon#ed or 10 12

hours in e-chan#e or curtailment o layos( In Japan

this has been the practice or about three decades e*en

thou#h it has ne*er been made oicial either by the

unions or the bosses( . wor'er in a Japanese actory,

abo*e all in those acin# international competition, can

wor' up to 10 or 12 hours a day, with only two Sundays

o per month, or no e-tra pay or else or a derisory,

almost =ero amount( .mon#st inormation technolo#y

wor'ers in the BS. today 715 wor' or more than


33/42

o neutralisin# stri'es, in practice o bannin# them, in

order to sae#uard the interests o society as a whole,

and ends up ormulatin# the *irtual stri'e one where

the wor'ers can announce they are on stri'e without,

howe*er, abstainin# rom wor' althou#h they would

relinuish their payment or the day as i they really

had not been at wor'( Parado-ical $ertainly( "ut there

is no limit to the antasies o capital in crisis(

+he allin# rate o proit e*en imposes the need to

contain the depreciation o constant capital( )ere the

most si#niicant aspect concerns the relation between

constant capital and its material *olume, e*en thou#h the

rate o e-ploitation remains the same( In normal

conditions the increase in constant capital is aster

than the increase in *ariable, determinin# the all in

the rate o proit( )owe*er i, than's to a hi#her

producti*ity o labour, the *alue o constant capital,

e*en thou#h it e-pands, #rows proportionally less than

o*erall mass o means o production put into operation by

the same uantity o labour power, the all in the rate

can be slowed down and, in some cases and or a limited

period, annulled( +his is what has happened in the

e-traordinary case o the microprocessor re*olution:,

where a hi#her rate o increase in producti*ity has been

achie*ed because the increase in constant capital was

proportionally lower than the mass o means o production

operatin# in the producti*e system( oreo*er, the

opportunity created by this technolo#ical re*olution to

di*ersiy production at the same time as usin# the same

constant capital, ma'es or its depreciation which in

turn aects the rate o proit( .n e-ample arose in the

automobile ield a ew years a#o with the collaboration


34/42

between Fiat and Ford( +he two #roups a#reed to produce

the Ma and the Panda in Poland(

. sin#le buildin#, wa#es well below the domestic le*el

and, than's to di*ersiied production, the same machinery

was able to produce the chassis o both cars, sa*in# at

least 05 on the assembly costs(

Still on the sub!ect o depreciation o constant capital,

there is the attempt to reor#anise stoc's o raw

materials and partly wor'ed up #oods( .ter orcin# the

withdrawal o !ob security on *ariable capital, on the

basis o use the labour then throw it away:, or rather

by utilisin# labour power only at the 'ey moments o

production, a similar system has been brou#ht in to

reduce the costs o a part o constant capital( +he

introduction o just in time, that is the orderin# o

parts and raw materials only !ust at the moment they will

be used in production, has transormed stora#e and

maintenance costs as well as reducin# the ris' o stoc'

deterioratin#( Such inno*ations are certainly rational

and wor' to reduce the costs o production, but they are

the osprin# o a compellin# necessity8 the need to

contain the dama#e done by allin# proits, in this case

by a depreciatin# uota o constant capital the

circulatin# part( +his 'ind o reor#anisation o one o

the actors o production is on a par with the mo*es to

increase labour le-ibility with its resultin# !ob

insecurity( For capital, raw materials and labour power

are simply commodities that ha*e to be employed in the

production process at the minimum possible cost and in

order to remain competiti*e and 'eep up proitability

only at the times when they are instrumental in

*alorisation(


35/42

Aeducin# the cost o raw materials can also help to lower

the *alue o constant capital( In the present epoch,

where the domination o inance capital has reached its

ape-, the power relationship between the imperialist

centres and the socalled periphery allows the irst to

impose absolutely uneual conditions on the second when

it comes to the supply and payment or raw materials(

.n e-ample o this is the politics o debt( Far rom

wa*in# the la# o neoliberalism, o ree competition in

a ree mar'et, the stron#er and more a##ressi*e the

imperialists are the more they succeed in achie*in# their

ob!ecti*e o inlictin# commercial blac'mail on the

debtor countries( Primarily the blac'mail consists o

rene#otiatin# the terms o trade with these countries

which are rich in raw materials but up to their nec's in

debt( +hey can either obtain new terms or the debt or

prolon# the repayment period, so lon# as they submit to a

new series o conditions(

First amon#st them is the demand to clean up the public

inances, an ine*itable precursor to the pri*atisation o

national assets( Pri*atisation allows the bi#

international companies to ta'e o*er or #et a sta'e in

'ey industries so that they ha*e absolute control o*er

the e-traction and distribution o strate#ic raw

materials without any #o*ernment intererence(

In the second place, the terms o the credit a#reements

usually #i*e the creditors priority o*er supply with a

correspondin# reduction in purchase price( In other

cases, when imperialism #ains a monopoly o*er demand the

eect is the same( ?hen the pressure o blac'mail is not

enou#h it is outri#ht orce which determines access to

the mar'et and the price le*els o raw materials( It is


36/42

no accident that .merican imperialism, with its *oracious

networ' o national and international companies, with or

without the support o the IF and the BE, has brou#ht

the raw materials mar'ets o $entral and South .merica

down to their lowest le*el( +he BS has unleashed a

continuous series o wars or oil and there is nothin# to

su##est that this will not continue, in direct proportion

to the sharpenin# o the national and international

crisis, e*en i the Cbama administration presents itsel

as dierent rom the pre*ious one, without, howe*er,

re!ectin# its imperial: ob!ecti*es(

?e can sum this all up easily by concludin# that

imperialist a##ression towards international mar'ets is

directly proportional to the dama#e caused by the allin#

rate o proit( +he lower the proits, the #reater the

necessity to resort, by means o blac'mail or orce, to a

series o countermeasures which allow capitalism a

hi#her or#anic composition and enable it to continue

sur*i*in# its own contradictions( +hus the price is paid

by the periphery and capitalism6s wea'est competitors

and, abo*e all, by the respecti*e national and

international proletariat(

+here are countless e-amples or anyone, e*en the most

unobser*ant, to note( +here isn6t a strate#ically

important area without an armed BS presence, whether it

be the @ul, the iddle >ast, central .sia( oreo*er,

e*en i at the moment it is at a lower le*el, >urope,

Aussia and $hina also play a bellicose role( ?ars o*er

oil and or the control o raw materials ha*e been #oin#

on or years without any solution(

+he present crisis cannot do anythin# else but e-acerbate

the contradictions at the heart o the capitalist social


37/42

and producti*e system( .s it is, social production is

allin#( @DP i#ures or the BS., >urope and Japan are

well below =ero( >ntire sectors o production are on the

brin' o collapse( +he credit system is writhin#( +he

underclass is pre*ented rom consumin#( +he international

proletariat is sub!ected to attac's by capital on e*ery

possible ront wor', hi#her e-ploitation, #rowin#

pauperisation while speculation and parasitism continue

to #row in parallel, despite all the appeals to inancial

morality, as i this de*astatin# crisis o capitalism was

reducible to the absence o re#ulations and the need or

ethical: beha*iour( +his crisis demonstrates how ar

capitalism is decadent and how its #i#antic

contradictions are #enerated rom within the system o

production itsel and its internal mechanisms or the

*alorisation o capital, and which, as a result o the

allin# rate o proit, are ma'in# the social and

political system it has #enerated e*en more a##ressi*e,

not to say, erocious(

Delocalisation of Production and Export of Financial

Capital

.s always, low proit rates ha*e imposed a relati*e

o*erproduction o capital on the system o production( In

turn, the o*erproduction o capital presupposes an e-cess

o commodities( +his absolutely does not mean that too

many #oods ha*e been produced and that there is an e-cess

o producti*e capacity in relation to social needs, or

e*en that too much wealth has been produced in the orm

o capital( .ll it means is that, within the narrow and

contradictory relations o capitalist production, low

proit rates lead to a #rowin# mass o capital which

cannot be in*ested producti*ely( +his increases the stoc'o unsold commodities as a result o the low le*el o


38/42

demand which cannot absorb them at the e-istin# price and

the suppliers o raw materials, the actories, reduce

production or else are orced to close down alto#ether(

It ollows that one way out o the crisis #enerated by

the allin# rate o proit, besides speculation, is to

mo*e production abroad where the cost o raw materials,

o inrastructure and, abo*e all, labour power, are

distinctly less( In the present epoch the e-port o

capital with its accompanyin# delocalisation o

production has de*eloped in #eometric seuence( From the

serious crisis o the Se*enties until today all the

hi#hly industrialised countries ha*e been throwin#

e*erythin# at indin# economic =ones where the cost o

labour power is as low as possible, where trade union

protection is minimal or none-istent(

+he more delocalisation succeeds in indin# these

conditions, the more eicacious is the antidote to the

allin# rate o proit(

>*ery ad*anced capitalist state, dependin# on its

imperialist wei#ht, see's out its own =one, its own

sphere o inluence, in the search or an impo*erished

proletariat that is obli#ed to accept whate*er wa#e is

oered by the orei#n companies( +his is one aspect o

#lobalisation( For a capital which is suocatin# romlac' o proits, the tearin# down o customs barriers,

the ree circulation o capital and commodities, the

possibility o decentralisin# production to where*er it

li'es and to ha*e at its disposal, without any union

constraints, an international proletariat whose cost is

at least 10 1< times lower than at home, this is manna

which noone can turn down(


39/42

.part rom imperialist #iants, li'e the BS. which has

colonised the south o the .merican continent and parts

o .sia, includin# $hina, or Japan which has ta'en the

rest o .sia and $hina %05 o $hinese e-ports are

labelled made in the BS.: or made in Japan:&, old

>urope is no less in*ol*ed( France continues to e-ploit

its e-colonies o the a#hreb and centralwest .rica(

@ermany has positioned itsel in the e-so*iet republics

and little old Italy has mana#ed to decentralise

production beyond the .driatic, to Aomania, "ul#aria and

Poland but also to "ra=il and .r#entina(

.s usual, this is not new( For more than a century

decentralisation o production has ta'en place in the

our corners o the world( )owe*er, rom the 2nd ?orld

?ar until today, and with particular intensity o*er the

last twenty years, the necessity to reestablish

tolerable proit mar#ins has made the race or low cost

labour mar'ets a uestion o lie and death or economies

with a hi#h or#anic composition o capital(

+hose who deny that the tendency or the rate o proit

to all is a problem or modern capitalism, who ar#ue

that all these maniestations o countertendencies are

absolutely nothin# new and that, on the contrary, we are

witnessin# a new phase o economic e-pansion as

e-empliied by $hina, should remember that the Asian

economic miracleis partly the result o this capitalist

contradiction( $hina6s e-traordinary economic

de*elopment, which has allowed "ei!in# to tal' o an

a*era#e rate o #rowth o 105 o*er the last iteen

years, is based on three actors( +he relentless

decentralisin# o production, accompanied by new

technolo#y, on the part o countries in crisis as aresult o the low rate o proit, such as the BS., Japan,


40/42

South Morea and, in part, western >urope( +he arri*al o

enormous amounts o inance capital rom the same

countries, or the simple reason that in $hina they had,

and still ha*e, at their disposal a proletariat with

e-tremely low wa#es, up to 40905 lower a wor'in# day

which can #o up to 1 hours lon# and no union co*er,

either or health and saety or or !ob security(

It is sele*ident that in the lon# term de*elopment at

this rate in $hina will come to a halt, as it did

pre*iously or the EI$ %newly industrialised countries&

in the Si-ties and Se*enties, not because capitalist

pro#ress has reached its ape-, but because $hinese

capitalism will be orced to suer the same conseuences

as the hi#hly industrialised countries are today

e-periencin#( @rowth in these countries cannot be euated

with capitalism in its phase o e-pansion when there were

new areas o de*elopment and economic #rowth to open up(

Cn the contrary, these countertendency: e-periences all

entirely within the decadent phase which alicts

international capital as a result o the tendency or the

rate o proit to all(

)ow to #et out o this Cnly by the re*i*al o the class

stru##le under the #uidance o the re*olutionary party,

which does not limit itsel to economic demands, whetherdeensi*e or otherwise, e*en i these are the point o

departure( Aather, the party will also be#in to challen#e

the mechanisms that capital uses to sae#uard its

economic and political interests( +o mo*e a#ainst capital

means irst o all challen#in# the conditions o

e-istence or capitalist relations o production8

producti*e relations which are responsible or

increasin#ly intense e-ploitation, or millions o


41/42

wor'ers suerin# mortiyin# unemployment, or the

de*astatin# economic crisis which accompanies its mode o

creatin# wealth, which leads to warare as a means o

continuin# the process o accumulation and e-tortion o

surplus *alue which is at the basis o its e-istence(

Ctherwise the wor'in# class will *acillate as it tries to

reconcile itsel with the irreconcilable, with capital,

which is opposed to the present and uture interests o

the proletariat(

Fabio Damen

%1&Ser#io archionne, $hie >-ecuti*e o Fiat(

%2& auri=io Sacconi, inister o Kabour, )ealth and

Social Policy( +he drat bill presented to parliament on

29(2(09, amon#st other thin#s, aims to pre*ent stri'es in

essential ser*ices: and includes the reuirement or

public transport wor'ers to abandon the ri#ht to stri'e

in a*our o the *irtual stri'e:(

.cademic economists and le#al e-perts in Italy ha*e been

toyin# with the concept o the *irtual stri'e: or a

decade or so( In the academic discussion the employers

are supposed to sacriice the income they would ha*e lost

i a real withdrawal o labour had #one ahead %by ma'in#

a donation to charity, or e-ample&( Eeedless to say, the

reallie, Sacconi *ersion o the *irtual, does not

in*ol*e any loss or the employers(

Printerriendly *ersion

Share+his

2009112N


42/42

>-ploitation and accumulation

Revolutionary Perspectives "#$

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the fall in the average rate of profit

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