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Marx’s Theory of the Falling Rate of Profit

  • Fred Moseley

Abstract

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

Keywords

Technological Change Real Wage Aggregate Productivity Fixed Capital Annual Flow 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Fred Moseley 1991

Authors and Affiliations

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

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