Paul A. Baran and Paul M. Sweezy, Monopoly Capital. New York and. London: Monthly Review Press, Pp. ix + Harry Magdoff. New School for Social . This landmark text by Paul Baran and Paul Sweezy is a classic of Monopoly Capital and millions of other books are available for Amazon Kindle. Learn more. Monopoly Capital [Paul And Sweezy, Paul M. Baran] on *FREE* shipping on qualifying offers.
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Other forms of absorbing the surplus include expansion of the sales effort and the growth of finance, insurance, and real jonopoly. Likewise, the financiers do not care whether loans are made to private entrepreneurs or to government, so long as they are secure and yield the desired rate of interest. Where and when this is no longer possible, investments will be unprofitable and consequently will not be made.
When these limits are reached they will cease countermanding the capitalist crisis. The increase of the debt is held to be quite harmless as long as the national income increases faster than the debt. One of the key contributions of Monopoly Capital is its application of the concept of economic surplus. BooksPaperbackeBooks Filed in: Socialism portal United States portal.
Marx lived in a highly competitive capitalism, to be sure, and he knew that prices, not values, determine market events znd even though market events are themselves circumscribed by the social relations as value relations.
Why might their influence have declined if indeed it did during a period of stagnation that might have vindicated some of their predictions? With accumulation a going concern, however, the increasing productivity of labour goes hand in hand with the value-expansion of capital.
They were simply extending the value analysis to take on new questions related to the monopoly stage. And it is of course true that this was accomplished by government interventions in the economy.
No matter how much employment and income it may generate, the final product of government-induced production, such as public works of a useful or wasteful nature, is not a marketable product, whereas the real income in capitalist society has to be realised via the circulation of commodities. But as soon as it begins to feel itself as a barrier to further development and is recognised as such, it adapts forms of behaviour through the harnessing of competition which seemingly indicate its absolute rule but actually point to its decay and dissolution.
Third, capitalist opposition to civilian spending as a threat to their class interests and class power limited the ability of such spending to provide effective demand.
Yet capitalism did live to see that future. The value analysis of capitalism disregards competition, for in the social aggregate all prices equate with total value.
Monthly Review | Monopoly Capital: An Essay on the American Economic and Social Order
There would be an enormous amount of production but little direct labour and therefore little surplus-labour. In brief, the maintenance of the private-enterprise system sets definite limits to the expansion of government-induced production. Even then, they were forced to leave out any direct consideration of the labor process and exploitation. They simply tell us what is obvious, namely, that in a few capitalist nations bara productivity of labour has enormously increased in order to allow for a great amount of waste-production as well as for higher living standards even under conditions of relative capital stagnation.
The latter is an unknown quantity. Retrieved from ” https: It is only through the growing capacity to produce that total exchange-value is enlarged and capital accumulated.
The continuous creation of new wants is a characteristic of the market economy and one reason for its expansion and extension.
Monopoly Capital: An Essay on the American Economic and Social Order
What gave rise to the New Left was the Soviet invasion of Hungary. Appearances to the contrary notwithstanding, when, instead of being a form of competition, monopoly eliminates competition, capitalism finds itself on the way out.
History of the American Left. Only under conditions of rapid capital expansion would it be possible to maintain monopoly profits without reducing simultaneously the absolute rate of profit of competitive capital. There baraj be no point in increasing production if the rate of accumulation were to diminish. The normal cxpital of monopoly capital is thus stagnation.
With the resultant growth of idle resources, capital accumulation, that is, the capitalist mode of production, would come to an end. A brilliant description of the economic forces at work in the main centers of economic power—the giant corporations … Monopoly Capital may be regarded as an analysis of the sources of contemporary political formations … and the corporate ideology … Monopoly Capital will be a munificent source of insights and ideas for many years to come.
Whatever these statistics may be worth, and they are admittedly not worth much, they do not relate to the Marxian problem of the determination of the rate of profit, but to the capitalist problem of the division of recorded income — other than wages — barxn the various interest groups living on the surplus-product.
It is thus of great importance to consider whether or not these interventions have actually set aside the laws of capitalist development as set forth by Marx. The growing national debt is then usually compared with the growing national income, which substantiates the claim capittal deficit-financing will be accompanied by a rising national income. Not adn is this type of production non-profitable, it is made possible only through that part of total production which is still sufficiently profitable to yield taxes large enough to extend government production by way of taxation.
This page was last edited on 24 August monopol, at To be sure, Baran and Sweezy maintain that this property-income would not have been any greater without government-induced production. The possibility of honouring the government debt depends on the future profitability of private capital.
Discussions of it were everywhere.
This book … deals with a vital area of economics, has a unique approach, is stimulating and well written. Although capital accumulation is actually a competitive process, the falling rate of profit does not depend on competition but on the shifting value relations of capital expansion.
Is it valuable as a critique of contemporary U. Considering the system as a whole, however, it is a general lack of surplus-value which accounts for its slow rate of expansion. Now, it is due to the imperfection of competition under monopoly conditions.
This is most probably so, because government-induced production is enlarged to compensate for the declining private mmonopoly, in order to ameliorate the social consequences of prolonged crisis conditions. The vast extent of this increasing actual and potential surplus is amd in the underutilization of productive capacity, the level of unemployment, the waste embodied in the sales effort, and military spending.
I left Monopoly Capital behind and monoopoly a long class paper defending the falling rate of profit theory.