> > The thinking behind
>> the falling rate of profit theory is premised on the more rational
>> assumption that market demand is finite.
>>
> > Once we accept the inevitability that no market is infinite, then the
>> falling rate of profit follows as surely as night follows day. Its
>> simple market forces, if supply exceeds demand, then prices fall, if
>> prices fall then profits are squeezed.
> >
> > Quite simply, profitability is dependent on demand exceeding supply.
>> Under conditions of scarcity, capitalism works extremely well.
>> Capitalism won't work under conditions where scarcity ceases to
>> exist, because saturated markets are not profitable markets.
>
>I'm being fanciful? You've packed about six howlers into this little
>stretch of words. Where does "Marxist" FROP theory say anything about
>demand? It's a 100-percent supply-side argument.
For the sake of argument, I'll take your word for it. In that case, the Marxist theory is ridiculous. But I stand by what might henceforth be conveniently referred to as the Bartlett theory of falling rate of profit.
Bill Bartlett Bracknell Tas