The Falling Rate of Profit and the Great Recession of 2007-2009 A New Approach to Applying Marxs Value Theory and Its Implications for Socialist Strategy (Historical Materialism Book)

In The Falling Rate of Profit and the Great Recession of 2007\-2009, Peter Jones develops a new interpretation of Marxs theories of value and finance, and shows how this can explain the causes of the Great Recession in the US. ‎Contents 5 ‎Preface 7 ‎Tables and Figures 44 ‎Advice to Readers 46 ‎Chapter 1. Marx’s Value Theory and the Law of the Tendential Fall in the Rate of Profit 47 ‎1. The Development of the LTFRP and Its Significance 50 ‎2. Criticisms of the Law 64 ‎3. Summary 77 ‎Chapter 2. Devaluation 78 ‎1. Formalisms, Models and Method 79 ‎2. Devaluation and Value 82 ‎3. Historical Cost, Input Cost and Output Cost 86 ‎4. Measuring Devaluation 89 ‎5. The MELT and Revaluation 93 ‎6. The Rate of Profit, the Rate of Accumulation and the Rate of Growth 95 ‎7. Conclusion 97 ‎8. Appendix: A Counter-Example to the Okishio Theorem Using Current Cost Measures of the Rate of Profit 97 ‎Chapter 3. Turnover Time and the Organic Composition of Capital 104 ‎1. Decomposing the Rate of Profit: Existing Approaches 104 ‎2. The Stock of Variable Capital 107 ‎3. The OCC 114 ‎4. Conclusion 115 ‎5. Appendix: Decomposing Changes in the Rate of Profit 115 ‎Chapter 4. Surplus Value, Profit and Output 122 ‎1. The Forms of Appearance of Surplus Value 123 ‎2. Unproductive Labour 124 ‎3. Measuring Surplus Value after Unproductive Expenditures 133 ‎4. The Value of Labour Power 136 ‎5. Measuring Output 141 ‎6. Differences between the Total Price and Total Value of Output 145 ‎7. Surplus Value after Unproductive Expenditures 147 ‎8. Profits from Production 150 ‎9. Conclusion 154 ‎10. Appendix A: Accounting Definitions 155 ‎11. Appendix B: Decomposing Changes in the Rate of Profit from Production 168 ‎12. Appendix C: Decomposing Rates of Profit When the Value of Labour Power Is Not Equal to Its Price 169 ‎Chapter 5. Marx on Finance 172 ‎1. Money Dealing and Interest-Bearing Capital 172 ‎2. Currency 174 ‎3. Social Relations and Interest 175 ‎4. Dynamics of the Interest Rate (I) 176 ‎5. Money Capital and Fictitious Capital 180 ‎6. Fictitious Capital and the Dynamics of the Interest Rate (II) 183 ‎7. Conclusions 185 ‎Chapter 6. The Rate of Profit and Financial Rates of Return 187 ‎1. The Separation between Financial Profits and Profits from Production 187 ‎2. Fictitious and Non-fictitious Profits 191 ‎3. The Non-fictitious Financial Rate of Return and the Interest Rate 199 ‎4. Conclusion 201 ‎5. Appendix: Accounting Definitions for Financial Rates of Return 201 ‎Chapter 7. Results 204 ‎1. Output and Surplus Value 204 ‎2. Measures of the Rate of Profit 217 ‎3. Why the Rate of Profit Fell 230 ‎4. The Rate of Profit and Financial Rates of Return 238 ‎5. The Rate of Profit and the Interest Rate over the Long Term 247 ‎Chapter 8. Conclusions 256 ‎1. The Rate of Profit and the Great Recession 256 ‎2. Capital and Marx’s Value Theory 257 ‎Bibliography 263 ‎Index 270 "In The Falling Rate of Profit and the Great Recession of 2007-2009, Peter Jones develops a new non-equilibrium interpretation of the labour theory of value Karl Marx builds in Capital. Applying this to US national accounting data, Jones shows that when measured correctly the profit rate falls in the lead up to the Great Recession, and for the main reason Marx identifies: the rising organic composition of capital. Jones also details a new theory of finance, which shows how cycles in the profit rate relate to stock market booms and slumps, and movements in the interest rate. He discusses the implications of the analysis and Marx and Engels' work generally for a democratic socialist strategy"-- Provided by publisher In 'The Falling Rate of Profit and the Great Recession of 2007-2009', Peter Jones develops a new non-equilibrium interpretation of the labour theory of value Karl Marx builds in 'Capital'. Applying this to US national accounting data, Jones shows that when measured correctly the profit rate falls in the lead up to the Great Recession, and for the main reason Marx identifies: the rising organic composition of capital.0Jones also details a new theory of finance, which shows how cycles in the profit rate relate to stock market booms and slumps, and movements in the interest rate. He discusses the implications of the analysis and Marx and Engels' work generally for a democratic socialist strategy In The Falling Rate of Profit and the Great Recession of 2007-2009, Peter H. Jones develops a new non-equilibrium interpretation of the labour theory of value Karl Marx builds in Capital. Applying this to US national accounting data, Jones shows that when measured correctly the profit rate falls in the lead up to the Great Recession, and for the main reason Marx identifies: the rising organic composition of capital. Jones also details a new theory of finance, which shows how cycles in the profit rate relate to stock market booms and slumps, and movements in the interest rate. He discusses the implications of the analysis and Marx and Engels'work generally for a democratic socialist strategy.