This blog-entry contains the second 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!].
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" --
Part 2.: Malady and Remedy --
What's Wrong, and What to Do About It.
Diagnosis: What's Wrong[continued].
The Genesis of the Core Plutocracy's 'Capitalist Anti-Capitalism'
The effect of these advances is to raise ‘‘‘productivity’’’.
‘‘‘Productivity’’’ is raised, for example:
- by producing more units of commodity-output in less duration of time; and/or
- with the productive-consumption-of less/less-costly units of direct-labor; and/or
- with the productive-consumption-of less/less-costly units of other inputs;
- with the same price as, but at a higher profit-margin than, those that the less technically advanced competition is charging, and achieving; or
- to undersell that competition via a lower price at the same profit-margin which that competition was garnering. [e1_3]
These technological advances become increasingly threatening to the wealth-binding and power-binding capital-value-content of the hyper-concentrated capital-holdings of the emerging capitalist plutocracy, as the balance of their capital-investment expenditures shifts relatively, but increasingly, toward "plant and equipment" expenditures, over-and-above wages-and-salaries expenditures, or living human-labor power expenditures.
These capital, plant, and equipment holdings of that plutocracy accumulate partly in the forms of directly-owned "plant and equipment" capital-assets, for the direct ‘industrial-capital-ists’, but also partly in the form of "capital equity stock" capital-assets, "corporate bond" capital-assets, "long term bank loan" capital-assets, etc., which simply represent plutocracy's members’ indirect ownerships of such "plant and equipment" capital-assets, especially for the ‘finance-capital-ists’ and ‘banking-capital-ists’ among this emerging plutocracy.
This threat grows, as the proportion of wealth held by the plutocracy in these forms grows, and as the rate of technological advance accelerates in response to the transient super-profits-incentives stimuli cited above, with advancing accumulation of capital-asset value.
As these technology-forms, incented by the capitals-system, advance, an ever-greater relative proportion of the physical mass of the physical assets used in plutocracy-owned industrial production takes these "plant and equipment" ‘socio-mass’ forms, vis-á-vis, the forms of the living human "socio-bio-mass" of the human work force.
Likewise, the monetary-value-‘‘‘mass’’’ of such "plant and equipment" — and the monetary-value-‘‘‘mass’’’ of its per-unit-of-output charges for "wear and tear", or "physical", depreciation-expense, included in the prices of the plutocracy's sold output — increasingly exceeds the monetary-value-‘‘‘mass’’’ of the wage-and-salary expenses also covered by those intended prices.
Thus, the vulnerability of plutocracy-owned capital-assets to technological, obsolescence depreciation accelerates as that plutocracy's "plant and equipment" capital-value, and as capital's technology, both accumulate together, in increasing relative preponderance to the also-increasing value of wages-and-salaries expenses.
Later, lower purchase-cost vintages, and/or technologically-superior vintages, of capital-value — newly-incarnated in such advantaged "plant and equipment" capital — massacre the capital-value of earlier, higher-cost, and/or technologically-inferior vintages.
That is, eventually, as capital-value accumulation progresses, the average period between technological advances in machinery-design becomes shorter than the average period of physical wear-and-tear depreciation of that machinery, as a result of the ‘profits-incented’ accelerating rate of technological change.
Concomitantly, the preponderance of industrial operating-capital invested shifts, from taking the form of wages-and-salaries, to taking the form of capital "plant and equipment".
This shift in the preponderance of the monetary-value of capital investment from the wages-and-salaries side to the "plant and equipment" side, is itself a reflection of the technological gains in productivity -- the “growth in the social forces of production” [Marx] -- that have been achieved.
Consider what happens, once this preponderance shift has occurred at the level of a given industry as-a-whole.
Thus, the net effect, at the industry level, of these countervailing gains-and-losses, both triggered by the same act of competitive installation of technologically-superior "plant and equipment", by competitors, is negative — is a negative profit overall [i.e., a net loss], and/or a negative increment to '''capital-value accumulation'''/"retained earnings" [i.e., a net reduction to accumulated capital-value].
To give a more recent, impending example of the ‘techno-depreciation effect’ on the plutocracy -- one which is driving the plutocracy to desperate deeds to this very day: