Capitalist breakdown part II

Discussion of the formula Edit The number of years n down to the absolute crisis thus depends on four conditions: The level of organic composition Ω. The higher this is the smaller the number of years. The crisis is accelerated. The rate of accumulation of the constant capital ac, which works in the same direction as the level of the organic composition of capital. The rate of accumulation of the variable capital av, which can work in either direction, sharpening the crisis or defusing it, and whose impact is therefore ambivalent. The level of the rate of surplus value s, which has a defusing impact; that is, the greater is s, the greater is the number of years n, so that the breakdown tendency is postponed. The accumulation process could be continued if the earlier assumptions were modified: the rate of accumulation of the constant capital ac is reduced, and the tempo of accumulation slowed down; the constant capital is devalued which again reduces the rate of accumulation ac; labour power is devalued, hence wages cut, so that the rate of accumulation of variable capital av is reduced and the rate of surplus value s is enhanced; finally, capital is exported, so that again the rate of accumulation ac is reduced. These four major cases allow us to deduce all the variations that are actually to be found in reality and which impart to the capitalist mode of production a certain elasticity ... Much of the remainder of Grossman's book is devoted to exploring these "elasticities" or counter-crisis tendencies, tracking both their logical and their actual, historical development. Examples of each would include: Depressed interest rates, investment capital transferred to unproductive speculation, e.g. housing stock, art objects. Enlarged state sector bleeds value from the accumulation process via taxes. Wars destroy capital values. The Reserve army of labour (unemployed) created to discipline wage claims. Imperialism