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CAPITALISM
FRED MOSELEY 1
INDICE
1. It is often said these days (especially by the rate of profit. The third section applies
economists) that Marx’s theory is “dead” or Marx’s theory to the postwar US economy. The
“obsolete”. It is argued in this paper that this paper concludes with an assessment of the
assertion is blatantly false. The dominant likelihood of another Great Depression in the
purpose of capitalist production is profit, and US economy in the years ahead, based on
therefore the explanation of profit should be the Marx’s theory.
main goal of a theory of capitalism. Marx’s
theory provides a logically coherent theory of I. MARX’S THEORY OF PROFIT
profit, which has considerable explanatory
power (to be discussed below). Marx’s theory 3. Marx’s theory provides the best theory by far
also provides a logically coherent and of profit, the all—important dominant purpose
empirically strong theory of the trend in the rate of capitalist production, and the main question
of profit over time. In striking contrast, in a theory of capitalism. Mainstream economic
mainstream economic theories provide no theories provide almost no theory of profit at
coherent theory of profit, and no theory at all of all, and certainly no theory with comparable
the trend in the rate of profit over time. explanatory power to Marx’s. Mainstream
Therefore, far from being “dead”, if we want to macroeconomic theory has not theory of profit
understand profit and the rate of profit, Marx’s at all; in other words mainstream
theory is absolutely essential. There is simply macroeconomics attempts to provide a theory
no other credible theory of profit and the rate of of capitalism without a theory of profit! It is
profit available, besides Marx’s theory. like trying to have a theory of the Catholic
2. The first two sections of this paper briefly church without the Pope. Mainstream
review Marx’s theory of profit and the trend in
1
Mount Holyoke College USA