[lbo-talk] India: Marx invoked to break Lefts FDI barrier

Doug Henwood dhenwood at panix.com
Mon Aug 1 14:31:53 PDT 2005


Jim Devine wrote:


>The effort to raise profit rates suppresses
>consumer demand, which causes a surplus of capital. (cf.
>http://www.lines-magazine.org/articles/chris.htm)

Profit rates rose in the U.S. from the early 1980s through 1997, and the consumption share of GDP rose as well (from around 62% to 66%). Profit rates fell between 1997 and 2001, and the consumption share rose to almost 69%. Profit rates have risen since 2001, and the consumption share is now over 70%.

Maybe this is a special case in history, and/or maybe the US is a special place, but the general principle needs a visit to the shop.

Doug



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