Preprint
Article

Complexity and Capitalism: Tendential Fall for the Rate of Profit as a Manifestation of Self-Replicating Dynamics

Altmetrics

Downloads

11

Views

11

Comments

0

This version is not peer-reviewed

Submitted:

19 November 2024

Posted:

20 November 2024

You are already at the latest version

Alerts
Abstract
Since the publication of Volume III of Capital, the law of the tendential fall in the rate of profit (LTFRP) has been the subject of theoretical and empirical debate within the Marxian political economy. Many controversial literature on such subject has been conditioned by the absence for years of a comprehensive econometric analysis. In addition, many results refer to specific areas of production, such as USA or EU area, loosing of a possible generality, as on the contrary, the tendential law was enounced by Marx. In turn, the historically prevalent mode of production in each era can be considered as complex adaptive systems, as they exhibit self-organization, interdependence, space of possibilities, co-evolution and self-replication, all typical features of a complex system as highlighted in the last 50 years by the natural sciences. The question then is how to combine these concepts with Marx's statement of the tendency law of the falling rate of profit? In this paper, we exploit the concept of complexity and open systems for human society as a whole and economic setup as given by capitalism way of production. Based on such assumptions, we will analyse the LTFRP in a statual context like USA economy, here considered as the system of interest, coupled to the rest of world, with which the system of interest is coupled and continuously exchanges material goods and with which it organizes production and financial chains. In the picture that provides an economical system of interest, like in our case, the U.S. economy, coupled to the rest of the world, the countertendencies introduced about the falling rate of profit can be considered as dynamical corrections being the coupling between the two system (a system of interest and the larger world) as a manifestation of typical non-equilibrium systems, in a special way, as a self-replicating and self-reproducing system. In turn, in this paper, we address this issue by testing the Marx’s LTFRP with an econometric model that accounts the counter-tendencies and hence, we cross validate such model by investigating the profit rates time series for U.S. economy in the period 1945-2016. We find evidence for the period under investigation of a downward trend of approximately 3-4.5%.
Keywords: 
Subject: Social Sciences  -   Political Science
Copyright: This open access article is published under a Creative Commons CC BY 4.0 license, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.
Prerpints.org logo

Preprints.org is a free preprint server supported by MDPI in Basel, Switzerland.

Subscribe

© 2024 MDPI (Basel, Switzerland) unless otherwise stated