Rakesh Bhandari wrote:
> This is how I read Brenner's logic:
>
> Fraticidal competition->cost cutting technical change->overcapacity of
> high cost producers->lower average rate of profit->slower rate of
> accumulation->devaluation of high cost capacity (possibly delayed
> by real wage cuts, currency manipulations and debt)->higher rate of
> profit and accumulation on total social capital following upon
> devaluation.
I do not see much recognition of Rakesh's last step. Brenner describes pressures to lower rates of capacity utilization and even to scrap old capital, but I did not see any acknowledgement of the devalorization of the remaining capital stock.
By the way, Doug seemed to rebuke Brenner for having put the crisis back to the 1950s. I had not thought of such a dating before reading Brenner, even though it is consistent with my own work.
There is a natural tendency toward crises -- someone humously dated the beginning of the existing crisis at 5000 years ago. The early military keynesian practices thwarted the crises, or at least contained them as minor recessions. The pressures have built up over the decades and now may possibly be ready to break out into something more serious. If the authorities hold it in check this year, the problem will fester and be harded to confront later. Such is the nature of capitalism. -- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 916-898-5321 E-Mail michael at ecst.csuchico.edu