The
Propositional
‘‘‘Self-
Contradiction’’’
that IS
CAPITAL
and
Capitalism’s
Fatal
Flaw.
GLOBAL STRATEGIC
HYPOTHESES.
Dear Reader,
The capital social-praxis, and the partly propositionally-motivated, beliefs-motivated behavior of capitalists, can be grasped as a kind of, ‘antinomious’-looking, propositional contradiction.
1. CAPITAL-PROPOSITION [that capitalists believe, and act upon] –
“Increase productivity [“productive force”] and your rate of profit will rise.”
2. COUNTER-PROPOSITION [via Marx’s Immanent critique] –
“Increase productivity [“productive force”] and your rate of profit will fall.”
[The revelatory proposition
revealed by Marx’s three volumes of Capital, culminating in volume III’s
“Law of the Tendency of the General Rate
of Profit to Fall”].
3. ‘UNI-PROPOSITION’ [also via Marx’s immanent critique] –
Critique-corrected/unified proposition:
Increasing
the productivity of your industrial operation will make your rate of profit RISE,
in the short-run, transiently, by increasing your operation’s
production of relative surplus-value,
and,
increasing
the productivity of your industrial operation will make your rate of profit FALL,
in the long-run, by increasing your operation’s exposure to recurring
techno-depreciations.
Explication. Soon, in the
context of a competitive, industrial capitalist [world-]market, competing
capitalists will match or exceed your productivity-raising technologies. Thus, your productivity gains, and those of
your competitors, will eventually accumulate fixed capital value as the
predominate or major component of the entire capital-value that you own. That ‘primarity’ of fixed capital will
increase your vulnerability to what comes next.
The
[e.g., world-market-]competition-driven, profit-motive-driven, all-sided
increase in productivity [i.e., in “productive
force”], hence in the mass, and, to a
lesser extent, in the capital-value, of the competing industrial capitalists’
fixed capital machinery, will lead to ongoing, and accelerating, competition-imposed
technological obsolescence depreciation of fixed capital-value, before it can
even be amortized via the sum of “wear-and-tear” depreciation charges
incorporated into the prices of that fixed-capital’s output over time.
Scrapping and replacing obsoleted capital plant and equipment, subtracting its remaining, unamortized value from gross profits, while still paying on, e.g., 30-year loans that purchased that now crapped machinery, that is thus no longer earning anything toward those remaining years of continuing, e.g., monthly, debt-service payments, and taking out new debt to finance the purchase of the replacement machinery, and having to so accounting-period-after-accounting-period, with rising frequency, as ‘equipmental’ technological advancement accelerates, will drive down the rates of profit of industrial capitalists.
It
will drive down, toward bankruptcy and investment-crisis, especially those capitals
in the legacy territorial zones of industrial capitalism, confronted by
competition from new industries in the zones of later/recent industrial
capitalist development, where the most advanced equipment may be installed
first, and where wage levels may be initially lower than in the
legacy-capitalist zones.
‘Productive-force-growth’s
tendency of the rate of profit to rise, in the short-run, while
the fixed-capital composition of total capital is low, and the
rate of fixed capital advancement is still slow [capital’s
‘ascendence phase’], gives
way to productive-force-growth’s tendency of the rate of profit to fall,
as fixed capital becomes preponderant in the composition of industrial capital,
and as the rate of fixed capital productivity-advancement accelerates [capital’s ‘descendence
phase’].
This
transition of industrial capitalism, of its capital social-praxis, starting out
as a “form of development” of societal reproductive force, and ending as a “fetter”
on societal reproductive force, is a manifestation of the ineluctable ‘intra-duality’
of the “industrial capital-relation” [Marx], i.e., of the “wage-labor-relation”, when
it is the predominant social relation of societal self-re-production –
Capital
as “self-expanding value” # Capital as ‘self-contracting
value’
– the former side via re-investment and accumulation of profits, the latter side via productive-force-increase-driven devaluation of accumulated fixed-capital value, the periodic lost value then subtracted from periodic profits.
For more information regarding these Seldonian insights, and to read and/or download, free of charge, PDFs and/or JPGs of Foundation books, other texts, and images, please see:
and
https://independent.academia.edu/KarlSeldon
For partially pictographical, ‘poster-ized’ visualizations of many of these Seldonian insights -- specimens of ‘dialectical art’ – as well as dialectically-illustrated books
published by
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¡ENJOY!
Regards,
Miguel Detonacciones,
Voting Member, Foundation Encyclopedia Dialectica [F.E.D.];
Elected Member, F.E.D. General Council;
Participant, F.E.D. Special Council for Public Liaison;
Officer, F.E.D. Office of Public Liaison.
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