[lbo-talk] An Orgy of Speculation?

[c b]

[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

^^^^^^^^
CB; Wouldn't capitalism tend to financialize whether profits are
falling or rising ,  if they can get away with it, since
financialization is the most efficient way to concentrate wealth  ?
Capitalists don't only try to raise their profit rates when those
rates are falling.   Capitalists trying to raise profit rates is a
secular not cyclical "trend". Capitalists are always trying to raise
profit rates.   Capitalist try to raise profit rates : dog bites man.