[lbo-talk] An Orgy of Speculation?

[Wojtek S]

[WS:]  But that is exactly what Brenner argues. Contrary to what Brad
claims, Brenner shows a secular decline in mfg profit rates (i.e.
surplus value/capital invested) in the time period preceding
financialization (1950s to 1970s) - and argues that financialization
that started in the late 1970s and 1980s was the capital's solution to
this systemic problem of falling rates.  That timing supports the
cause-effect relationship as claimed by Brenner. His writing may be a
bit dense and tedious, but unlike conventional economists who
seemingly love circular arguments, he makes a great effort to
establish a cause-effect relationship.   From that pov,  Michael is
right that high profit rates achieved through financialization could
not be achieved in mfg.

Wojtek

On Fri, Mar 4, 2011 at 9:44 PM, Doug Henwood <dhenwood at panix.com> wrote:
>
> On Mar 4, 2011, at 9:23 PM, michael perelman wrote:
>
>>  Low profits did cause the shift to
>> financialization
>
> How?
>
> Profitability rose from 1982 to 1997, as financialization proceeded apace. Financialization assisted the rise in profitability, by forcing restructuring on the productive sector.
>
> Doug
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