[lbo-talk] An Orgy of Speculation?

[brad]

Woj writes:
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.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
He shows a decline in US and Euro mfg profit rates which is quite
different from a decline in mfg profit rates.  Financialization was
about increasing the productivity and profitability of capital by
enhancing the sourcing and allocation of capital for manufacturing
around the world.  The notion that it is separate or parasitic by
nature has been a big problem for orthodox marxist perspectives.  And
the idea that you can claim an overall decline in mfg by looking only
at the US and Europe is the biggest flaw in B's analysis. (I don't
want to get into his cherry picking of years to show the 'downturn'
but it is there and there has been too much ink spilled on it
already).

So I don't see how it was a solution to a particular problem as much
as what capital always does is turn limits into barriers and then find
ways around them.  The limit of national borders and organized workers
was turned into a barrier, and then overcome through financialization
and outsourcing production.  Brenners arguement that capital was in
big trouble in the 1970's and 1980's and then shifted orientation to
finance to overcome the problem is looking at it the wrong way.
Besides, most of the financial innovations came prior too and were the
basis of the global movement of manufacturing that followed.

Woj:   From that pov,  Michael is right that high profit rates
achieved through financialization could not be achieved in mfg.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

I am not even sure what this means.  Most financialization is done to
aid and increase profits from manufacturing.  Sam Gindin makes a point
about Brenner's attempt to attach national flags to capital and see it
as some sort of olympic race.  Financialization is about using finance
to enhance profit rates in production (at least most of it), not about
shifting away from production.

Brad