[lbo-talk] Fitch and Brenner

Patrick Bond pbond at mail.ngo.za
Tue Feb 24 11:20:45 PST 2009


James Heartfield wrote:
> ... capitalist investment in labour has been high, and fixed capital investment, low; which suggests that the 'organic composition of capital' (Marx's term) has not been rising.

James, I don't have the data, but I bet Robert does, so I'll cc him.

Hey, even if there has been a move back down the K/L ratio, which I doubt, the challenge for a good Marxist like yourself is to identify where this has occurred. If it's in the ever-growing service sector, that's to be anticipated - but surplus value extraction from services is rather low compared to manufacturing, mining, agriculture... since services are often about the necessary circulation of commodities, not their production. So even if true, your point is moot when it comes to the overaccumulation debate.

And another point is temporal. You're looking at the last fifteen years, whereas the overaccumulation problem that got all that fictitious capital sliding into such zany circuitries - leading to the current epiphenomenal financial crisis - goes back to the late 1970s, and it was *then* that the overinvestment and excessive production to meet intense competition signaled firms to slow fixed capital investment. (Unless you think, like comrades Henwood, Panitch and Gindin, that capital solved its 1970s crisis by the mid 1980s. But they're wrong and I know you appreciate that.)

Cheers, Patrick



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