Thursday, December 20, 2012

Part 5 of 8 -- The Equitists' "Malady and Remedy" Manifesto.

Dear Readers,

This blog-entry contains the fifth part of my serialization, within this blog, of the Equitist Advocacy Group's groundbreaking manifesto entitled "Malady and Remedy:  What's Wrong, and What to Do About It", with my own edits added to their text, for its improvement [at least, I think so!]. 
For example, the whole initial section below has been inserted by me, to help ‘‘‘round out’’’ the argument by means of some empirical data.

In my opinion, this text is too important to be treated as any kind of "sacred text".

It needs to be improved upon, and circulated <<samizdat>>, worldwide, in such "improved" forms -- i.e., in as many versions as are seen as being needed, by every author who thinks that [s]he can improve upon it [including this one].

Here is a link to the original version, including to its "endnotes" --




DiagnosisWhat's Wrong [continued].



[begin M.D. insert]:

Timing the Immanent Turning from Ascendance to Descendance:  Some Data on Decadence.

Using the data on the U.S. industrial capital reproduction process assembled in the book by Joseph M. Gilman, just cited above [e8], we can derive an estimate of the date of the turning point from the ‘‘‘ascendance phase’’’ to the ‘‘‘descendance phase’’’ of the capitalist epoch, based upon dynamics recorded for the U. S. core of the global capitalist system.

Note that this turning point may have arrived at an earlier date for components of the global capitalist core such as the U. K. and France, where the industrial capitalist accumulation arose earlier than it did in the U.S.
To derive such an estimate, let’s consider the movement of, principally, two ratios, over the period from 1880 to 1952, the period covered by Gilman’s data --

  •        The Annual Ratio of the U. S. Aggregate Value of Industrial Fixed Capital Plant and Equipment to the Value of Wages -- the Fixed Capital Intensity of U. S. Industrial Production:  F/W.
  •        The Annual Ratio of U. S. Aggregate Gross Industrial Profits to the U.S. Aggregate Value of Industrial Fixed Capital Plant and Equipment -- Industrial Capital Profitability as Gross Rate of Return on Industrial Fixed Capital Investment:  P/F.

We will also track one further key reference ratio for this period --

  •         The Annual Ratio of U. S. Aggregate Gross Industrial Profits to the Value of Wages -- the Class Revenues Balance Ratio, or Incomes Balance Ratio, of U. S. Industrial Production:  P/W.

We take the Fixed Capital Intensity ratio as a key metric of the degree of exposure to technodepreciation of U.S. Industrial Capital -- of the relative magnitude of its cross-section of vulnerability technodepreciation losses.

Wages are the key major component of circulating capital whose ‘technodepreciation losses do not accrue to the account of capital, but, on the contrary, that accrue to and are suffered by the account of their workers, with, if anything, beneficial gains to the account of capital.

The technical skills of workers, and the value of those skills, as included in their wages-level, can certainly be ‘technodepreciated’ -- e.g., the skill-set of horse-and-buggy riggers rapidly lost value after the advent of the automobile.  This technodepreciation can, typically, produce losses of income for the workers whose technical skills have been so ‘techodepreciated’. 

Such workers can even be brought to battle against the productivity progress that is inducing their labor-skills value-losses, when that progress in productivity promises no apparent or immediate benefits or gains for them, but only gains in profits for the capitalists who implement that productivity progress -- consider the classic example of the Luddites.

However, this depreciation of labor value is, directly at least, a savings to the capitalist ruling class, not a cost or loss.

The technodepreciation of capitalist-ruling-class-owned fixed capital is, on the contrary, at least directly, a loss, not a gain, for that ruling class.

Thus, the greater the magnitude of the F-divided-by-W “Fixed Capital Intensity” ratio, the greater is the exposure of the U.S. industry-owning capitalist ruling class to potential technodepreciation losses, relative to that key portion of their “expenses” whose technodepreciation does not figure as a loss to their “account”:  the aggregate annual value of Wages.

Once the magnitude of the F/W ratio exceeds 1, or 100%, the value-magnitude of losses due to technodepreciation -- e.g., losses to the historical value of Fixed Capital, and/or reduced profit margins, etc. -- induced via an advance in productivity via, e.g., via new-vintage fixed capital plant-and-equipment, installed by competitors -- more probably exceeds the gains due to savings in Wages-expense also induced, e.g., by adopting that advance in productivity, and scrapping the now-obsolete, old-vintage plant-and-equipment.

The date of the F/W ~ 1 turning point -- the date of the turn from F/W < 1 to F/W > 1 , for U.S. Industry -- will therefore serve as our estimate of the date of the immanent turn from the ‘‘‘ascendance phase’’’ to the ‘‘‘descendance phase’’’ of the global capitalist epoch.

This F/W ~ 1 turning point can so serve, given the root defining characteristic of the ‘‘‘ascendance phase’’’ of capitalism vis-a-vis that of its ‘‘‘descendance phase’’’.

The ‘‘‘ascendance phase’’’ of capitalism is characterized by conditions such that fixed-capital-mediated/-embodied advances in productivity are, in the aggregate, net profitable -- adding more capital-value to capital accumulation, e.g., due to profit increments via increased relative surplus-value production [Marx], than the capital-value that they subtract, e.g., the capital-value whose extinguishment they recognize via to write-offs of the previously-accumulated capital-value of the fixed capital thus rendered obsolete. 

The ‘‘‘ascendance phase’’’ of capitalism is thus characterized by the condition that technological progress, progress in productivity -- “growth of the social forces of production” [Marx] -- is still net profitable for core, ruling class owned industrial capital.

The ‘‘‘descendance phase’’’ of capitalism is characterized by conditions such that fixed-capital-mediated/-embodied advances in productivity are, in the aggregate, net loss propositions -- adding less capital-value to capital accumulation, e.g., due to profit increments via increased relative surplus-value production [Marx], than the capital-value that they subtract, e.g., the capital-value whose extinguishment they recognize via to write-offs of the previously-accumulated capital-value of the fixed capital thus rendered obsolete.

The ‘‘‘descendance phase’’’ of capitalism is thus characterized by the condition that technological progress, progress in productivity -- “growth of the social forces of production” [Marx] -- has become net unprofitable for core, ruling class owned industrial capital.

Given the above-specified criteria, the Gilman data suggests that the date of this turning point from ‘‘‘ascendance’’’ to ‘‘‘descendance’’’ of the industrial capital system -- the time-point, or ‘when-point’, of where the trace of the movement of the F/W ratio crosses magnitude 1, was ~1887

That date, in 1887, is also about a year after the trace of the movement of the P/F Profitability Ratio crossed below that of the P/W Class Revenues Balance Ratio, in ~1886, and about a year or two before the P/F Profitability Ratio’s movement trace crossed below that of the F/W Fixed Capital Intensity Ratio’s movement trace, in ~1889, and about four years before the fixed Capital Intensity Ratio’s movement trace crossed above that of the Class Revenues Balance Ratio, in ~1891 -- 


-- which means that it took the U.S. industrial-/finance-capitalist core ruling class about 10 years to perceive the outward, surface phenomena of, and to rally against, this immanent turning-point crisis of capitalism, via their 1907 “designer panic”, and its use to ideologically “justify”, or compel acquiescence in -- by terrorizing the minds of the public/working class -- that ruling class’s imposition, in 1913, of the Federal Income Tax System, and the Federal Reserve System, followed the next year by World War I, the latter a most colossal turning, into massive forces of destruction, of the vast industrial and other, former forces of production accumulated by humanity up until that date.

[end M.D. insert].





Hypothesis V: The "Law" of the Tendency of the Rate of Capital Profitability to Fall
Both of the kinds of consequences of the technological advance of productivity that we have noted above — of productivity-increase-caused 'de-value-ation' of "plant and equipment" capital-value-assets, and that of its commodity-output — can reduce the rate, or ratio, of "Return" on the "historical" or "original" capital-cost/capital-value of the plutocracy's past, "sunk" capital-monetary "Investment(s)":
  1. 'Techno-deflation' of the prices of the plutocracy's commodity outputs produced via this "plant and equipment", reduces per-commodity-unit sales revenues, hence also reducing the per-commodity-unit monetary "Return" on the capital-money "Invested" in these "plant and equipment" capital-assets, "squeezing" per-commodity-unit profit margins, thus reducing the "Returns" numerator of the net-revenue "Returns" divided by fixed-capital-Investment value-ratio;
  2. Episodic "write-downs" of the "historical", "original" book-value of these "plant and equipment" capital-assets — often "writing them down" to a zero capital-monetary-value, after their 'techno-depreciation' has been recognized -- also subtracts out of the "Returns" numerator of the net-revenue "Returns" divided by fixed-capital-Investment value-ratio.
However, in the case of this second consequence, the amount of the "Returns" numerator write-down also, simultaneously, subtracts out from the fixed-capital-Investment denominator of the net-revenue "Returns" divided by fixed-capital-Investment value-ratio.

This dual impact of such technodepreciation -- on numerator and denominator alike, with the same decrement -- raises the question as to the overall effect, upon the magnitude of the net-revenue "Returns" divided by fixed-capital-Investment value-ratio as a whole, of this concurrent reduction of both the numerator-component and the denominator-component of this ratio as a whole, by a decrement of the same magnitude for this ratio’s numerator and its denominator alike, a question which we shall address herein presently.

For example, both of these consequences of 'techno-depreciation' can reduce the ratio of net revenue over capital-value invested; can reduce the '''yield'''-ratio, the profit-ratio, or profit-rate, on capital, in that sense, as a secularly-visible, empirically-measurable trend over time.

This is so because both consequences reduce the numerator of that profit-ratio, relative to the fixed-capital Investment-value denominator of that profit-ratio.

Both (consequence 1) reduced commodity unit-revenues from sales, resulting from reduced commodity unit-prices, and (consequence 2) sales revenues episodically reduced by write-offs of part or all of the historical cost of 'techno-depreciated' "plant and equipment", i.e., of "fixed capital", can reduce the R numerator of the profitability-measuring "Return on Investment", net-Revenue-over-fixed-capital-Investment, or (Returns / Investment), '''yield'''-ratio, relative to its "plant and equipment" Investment-cost, or I, denominator.

Note that effect (2) also reduces the I denominator, by an equal amount of techno-depreciation write-off, d, to that which reduces the R numerator, but the numerator-reduction-effect predominates with respect to the magnitude of the "Return on Investment" ratio as a whole, for --

if I > R > d > 0, then ((R - d)/(I - d))  <  (R/I).

For a proof of this proposition, see the end-notes to this article. [e10]

[M.D.] NOTE:  A further proof would also be helpful here.  This additional proof should determine the general conditions of continuing a secular profitability decline for the scenario of the recurring retirement of the obsolete fixed capital [at an episodic ‘net technodepreciation cost’ of value d], and its replacement via capital investment [of value K] in the new-vintage fixed capital, incurring also a concomitant additional periodic, original-cost-based expense-increment [i.e., a new, periodic wear-and-tear depreciation expense” of value k], and with an incremental periodic profit/return value-contribution due to the production implementation of the new-vintage fixed capital [a periodic incremental relative surplus-value of delta_s], showing under what general conditions the following inequality holds:

((R - d - k + delta_s)/(I - d + K))     <     (R/I).

The Core Capitalist Plutocracy Abhors the Worldwide Rise of Working/Middle Classes, and of their Representative Political Democracy
Similarly, the human development that inherently accompanies this technological advancement of commodity productivity, likewise threatens, in the eyes of the plutocracy, their continued power to rule.

The more educated, better-paid, healthier, somewhat-leisured workers required to run technologically-advanced, high productivity, low unit-cost production units, workers with sufficient free time to potentially participate in politics — i.e., the emergence of the modern "middle class"; the peopling of the higher technical-composition-of-labor stratum of the wagéd and salaried working class — all together constitute another growing threat to the ruling-power of the industrial/finance capitalist plutocracy, in the "eyes" of that plutocracy.

Educated, ‘‘‘dual-skilled’’’ -- i.e., mentally-and-manually-skilled -- workers, when also granted some free time, can begin to question and to see through the vitiating ideologies employed by this plutocracy, as well as by its ancestor ruling classes, heretofore, to divide-and-conquer — to dis-empower — the majority of the human race.

These ideologies include pseudo-spiritual religions.

These ideologies also include nationalist, 'ethnicist', racist, sexist, and classist belief systems.

As well, these ideologies include, most recently, the pseudo-ecological, 'People Are Pollution', neo-“eugencist” ideologies.

All of these ideologies are psycho-manufactured, to order, by the plutocracy's ideology-engineering apparatuses, in part, to condition the public to acquiesce in the plutocracy's planned global multi-genocides.

The core, ruling faction of the oil/finance plutocracy, has realized that the continuation of capitalism itself, of its competitive incentives to growing technological productivity, and of its concomitant growth of middle classes world-wide — i.e., capitalism's engendering of the growth of an advanced working class of manually and mentally developed producers — increasingly impends the overthrow of that faction's global, rapacious tyranny. 

If the core capitalist plutocracy were to allow the growth of advancing-science-and-technology-based productivity -- ‘‘‘the growth of the human-social productive forces’’’ [Marx] -- and the global expansion of global human-social reproduction, to continue, they would remain rich, and influential, at least for a long time.  

But others -- the real producer’s -- would rise in terms of their standards of living, in terms of their educational and intellectual development, and moral leadership, and in terms of their socio-economico-political power to shape the human world. 

The core plutocracy would lose its exclusive actual dominance as global “decider” [Bush], together with the ultra-perverted “perks” of that dominance. 

It would lose its heretofore exclusive -- apart from its period of ‘Hitleric’ and ‘Stalinic’ challenges -- power to rule.

The nature of the near-absolute-power-sickness to which humanity is subject makes such a fate absolutely unnacceptable to our present rulers. 

You need only consider the power-madness of Alexander “The Great”, the depredations of Nero and Caligula, or the merciless mass bashing and mass murder of his own “subjects” by Bashar al-Assad-and-regime in your daily news, to recall a sense of the depths of depravity to which this power-sickness drives those [former] humans, those monsters whose experience of near-absolute-power infects them with this malady.

In response to these realizations -- of impending power-loss -- that core plutocracy has turned against capitalist, political-only democracy, against capitalism itself, and against humanity as a whole, other than itself.

They have turned against science -- except for their "science" of the destruction of humanity.

They have turned against technology -- except for their '''technologies of human destruction'''.

They have turned against human-societal growth -- except for their own, orchestrated '''accelerating growth of human misery and destruction'''.

To these 'Rocke-Nazi' and 'Rothe-Nazi' plutocrats, a New -- "Permanent" [cf. their late, "Small Is Beautiful" propagandist E. F. Schumacher]  -- depopulated Dark Age, but one in which they and their descendants still rule, is "infinitely" preferable to the "permanent" Golden Age/Global Renaissance [which their power is preventing], in which they do not rule.

As far as these plutocrats are concerned, no amount of murder is too high a price to pay, in order to hold on to their power.

Indeed, stealth mass murder is the only '''great enjoyment''' left to these hyper-sadistic, twisted, de Sade-ian degenerations of humanity. 

As, in our ancient past, with Nero, and with Caligula, power has corrupted the core ruling plutocracy of today; near-absolute power has corrupted them near-absolutely.

The innermost, ruling faction of the ruling plutocracy have thus become, "secretly"— "secretly", that is, for all those unable to read "between the lines" of their propaganda — 'capitalist anti-capitalists', and 'human anti-human[ist]s'.

As a result, the oil/finance plutocracy has resolved to crush the rising global middle class, to collapse science, educational levels, technological advancement, productive technology [as opposed to, for example, military, mass-murderous, technology of destruction, and police-state surveillance technology], and therefore, also, to collapse majority living standards and human population levels to — at best! — [neo-]feudal norms, reducing the global human population by ~95%. 

Spokespeople for [lower-plutocracy servants of] this plutocracy -- e.g., Ted Turner, e.g., the consort of the U.K. “Queen”, e.g., the Rockefeller “eugenicists”, etc., etc., and many others -- have long-since so-stated publicly, such is their contempt for the capability of the majority of humanity to respond to, and to effectively fight, against this plutocracy’s ‘ultra-genocidal' intentions.

This plutocracy aims, thereby, to "cut down to size" their global [servile] human population, i.e., to a level over which — or so the plutocracy imagines — they can manage to perpetuate their rule, and their perks-of-rule — the plutocrats' "lavish" lives of plunder, torture, rape, and mass murder — for all futurity.

This — or something even worse — is their ['Meta-Nazi'] '''Final Solution to the Humanity Problem'''.

The hyper-concentration of property and wealth in their hands gives the ruling faction of the plutocracy the means to employ governments, and the corporate mass media, world-wide, to accomplish their ultra-evil ends.

The 'techno-depreciation' threat — the threat of the process whereby accumulating capital-value technologically de-values, and thus dis-accumulates, itself — as well as the threat of middle [working-]class advancement inherent in competitive capitalism, gives that plutocracy their motive.

Generations of plutocratic inheritance of generally accelerating, hyper-accumulating, and hyper-concentrating ownership of capital-wealth, coupled with generations of dis-inheritance of all other social classes, world-wide, by the machinations of that plutocracy, has given this plutocratic faction the economic, monetary power to prostitute the branches of political government to its will, in the U.S., in the U.K., in the rest of the E.U., and beyond.

Initially, it accomplishes this 'whorification' of political government through massive lobbying and other bribery, through selective granting (or denial) of its foundations' massive funding, supplemented by its corporate mass media's character-assassinations -- and physical assassinations, of those who, e.g., out of moral strength of character, or out of desire to replace the ruling plutocracy with themselves and with their families, etc., still refuse to be bought-off and to "knuckle under".

Thus, the houses of legislature have become houses of prostitution.

The executive branches and the judiciaries are, likewise, increasingly reduced to utter whoredom to the oil/finance plutocracy.

The corporate mass media, the theocratic-totalitarian movements — the pseudo-Christian, the pseudo-Judaic, the pseudo-Islamicist, the ‘pseudo-Hindic’, etc. — and the 'Soylent-Green' ideology of the "People are Pollution" pseudo-religion of neo-Malthusian environmentalist "Earthism" [the latest re-incarnation of Rockefeller “Eugenics”], are now all wholly-owned subsidiaries of the "charitable foundations" and of the other ideology-engineering apparatuses of this core plutocracy.

The Genesis of the Core Plutocracy's  
'Anti-Marxian Marxianism'
The Long 'Techno-Deflation', ~1865 to ~1900 [~35 Years]:

Throughout this discussion, we have made use of insights gleaned from the writings of Karl Marx, humanity's deepest and most deeply insightful student of the capitals-system so far.

When we refer to the tradition of Marxian theory, we do NOT include those who falsely claim to be the owners of Marx's legacy:  NOT Lenin, NOT Trotsky, NOT Stalin, NOT Mao, NOT Castro, NOT Kim IL Sung, ... — NOT any of the totalitarian, STATE-Capitalist pseudo-Marxians — dictators and mass murderers — each more akin to a ruler of the core plutocracy, to a rival of, and to an "alternate" version of, the typical leader of the core capitalist ruling class, than to a scientist of human liberation, and to a benefactor of humanity, such as Marx.

Make no mistake about it:  the name of Karl Marx, and the content of his theories, came also to the attention of the core plutocracy during the years ~1865 through ~1900.

The name, and the theories, came to their attention because of the threat to the power of their competitors in Germany, posed by the German "Social Democratic" party, and posed by of the movement, both of which affirmed the name, and the theories, of Karl Marx, however superficially, as part of their heritage and inspiration.

The name, and the theories, also came to their attention because of the anti-Czarist movement then building up in Russia, leading up to the [earlier] Russian Revolution, of 1905, parts of both of which also claimed that name, and those theories, however accurately or inaccurately, as part of their inspiration.

The core plutocracy, from its very inception, has always been willing and able to afford the counsel of the greatest minds that money can buy.

They put the best of these prostituted minds, the minds of their best intellectual prostitutes, to work, during this period, on the theories of Karl Marx.

This work led to their realization that, as the first principle of Marx's theory asserts, growth of capitalist society's "productive forces" — i.e., growth of the technology-based productivity human producers via their wielding of capital "plant and equipment" — will grow to a stage where it dissolves capital.

Indeed, the growth of productivity does so all along, but, at first, only partially, and gradually. 

Finally, however, it will do so preponderantly, then suddenly, and totally.

Growth of productivity — growth of the wealth-creative, self-reproductive power of human society — partially embodied in [fixed] capital ["plant and equipment"], partially embodied in the technical knowledge and skill of the producers, destroys capital; destroys the capital-value of "plant and equipment", by 'techno-depreciation'.

Growth of the "social forces of production", of social productivity, of the self-productivity of human society, of ‘human socio-mass’, of the wealth-creating power of humanity, which capital itself incents, annihilates capital.

This growth of humanity's meta-Darwinian societal self-reproductive force will, at length, annihilate capital's accumulated value, annihilate capital's profitability, and, thus, will also annihilate the socio-political preponderant power of those who own the preponderance of capital: will bring to an end the rule of the core capitalist plutocracy.

A sense of the centrality of the concept named "The Growth of the Social Forces of Production" in Marx's theory of 'Human Social Meta-Evolution' can be formed via the text, "The Heart and Soul of Marxian Theory". [e11

Hypothesis VI:  The Core Plutocracy, Secretly, Came to Believe that Marx was Right about that Plutocracy's "Lawful" Fate under [Late] Capital[-ism]
The core plutocracy came to believe, during those years, in summary, that Marx's predictions about the destiny of Capitalism, and about their destiny, within it, were, essentially, correct, as well as being totally unacceptable to them!
Once this conviction took hold within them, these ruling plutocrats realized that they faced two options:
  • 1. Continual, accelerating, episodic erosion of their accumulated, gargantuan fixed "plant and equipment" capital-value "principal", and of its profitability, or "[net-]returns", and, therefore, continual, accelerating erosion of their socio-political power to predominate over the rest of humanity, and thus the erosion of all the "perks" of that predominance, together with an "entropic-doom-like" "winding down" of the global system of capital, which they had ruled.

    The global system of capital, as the present means and medium of worldwide human species social reproduction, given that this system is motivated and driven by "[net-]returns" on capital investment — by capital profitability — and by capital-value "principal" accumulation, would "wind down" as these motivating forces waned with the waning of profitability caused by accelerating 'techno-depreciation'.

    This waning of the social reproductive forces of capitalism would force the non-plutocrats, the rest of the people, to create a new means and medium for their social reproduction — on pain of death — i.e., in order to resuscitate their livelihoods.

    There were already signs that this new means and medium of human social reproduction would take the form of a more egalitarian political-and-economic democracy, in which those plutocrats, and their posterity, would, at least gradually, lose all of their "perks of rule" — would eventually be "reduced" to the status of "mere" commoners, like everyone else.

    Plutocrats such as these cannot stand such a thought!

    Indeed, such mentalities, to this very day, fly into a ‘‘‘humanocidal’’’ rage whenever they see we "commoners" getting ahead in the least.  And those plutocrats do everything within their power -- however stealthily -- to undermine and to reverse any such gains!
 In their view, these plutocrats must be "above" us.

The entire self-identity of each one of them depends upon that "elevated" status!
These plutocrats would rather die — or, preferably, they would rather that we, that the majority of the human race, die — rather than lose their status, their predominance, their ultra-perverted “perks”, their power over us.

  • 2. They would have to act so as to apply Marx's principle in reverse, and in opposition to Marx's liberatory intent.

    They would have to reverse, to undo, all of the progress of the ‘‘‘ascendance phase’’’ of the capital epoch.

    They would have to reverse the growth of the social forces of production that ‘‘‘ascendance phase’’’ capitalism had produced.

    They would act to block competition from technologically-innovative new-entrant "upstarts" in the already-industrialized nations, to prevent "pre-capitalist" nations from "capitalizing", industrializing, and competing -- from using the latest, most advanced equipment, and wielded by their initially low-wagéd workers -- to destroy public education, and to destroy popular hope and belief in the promise of progress, science, and technology, to destroy the growth of middle [working-]classes worldwide, to destroy the cognitive powers, the livelihoods, the living standards, the morale, and the bodily health of the majority of humanity, and to impose superstition-based "neo-feudal" dictatorships everywhere, to stop democratic and scientifico-technological advance, to convert any advance in the forces of production into military, and other, forces of destruction.

    This prospect of a "restoration" of '''[neo-]feudal aristocratism''' was particularly appealing to some of the crypto-'''aristocratic''' member-families of the core plutocracy — families of the former European feudal '''[ig-]noble''' ruling class, who had maintained their great wealth despite the anti-feudal, democratic-capitalist revolutions in England, France, etc., and who had thence transitioned, as '''crypto-capitalists''', into the capitalist ruling class.
Note to Readers:  Typographical and notational conventions observed throughout this text are described in the 'zeroth' endnote. [e0]

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