Marx’s Theory of the Falling Rate of Profit

  • Fred Moseley


The most important conclusion of Marx’s theory of capitalism is that the rate of profit would tend to decline over time as a result of technological change. Marx called his law of the tendency of the rate of profit to fall “in every respect the most important law of modern political economy” (G. 748). In a letter to Engels, Marx claimed that this law was one of his most important achievements over classical economics (SC. 194).1


Technological Change Real Wage Aggregate Productivity Fixed Capital Annual Flow 
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Copyright information

© Fred Moseley 1991

Authors and Affiliations

  • Fred Moseley
    • 1
  1. 1.Mount Holyoke CollegeUSA

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