Even such a normal law as the "average" rate of profit is in
shambles. The monopoly capitalists do not accept an "average"
profit. They do not accept that for the capitalist system to
function, profit must be "shared" throughout the system or extended
reproduction cannot take place without grave problems. But they are
driven by the contradictory law of maximum profit. That is why they
engage in such risky business as overseas robbery; military sales;
monopoly-controlled prices; a preponderance of luxury commodities
and services; neglect of certain areas of the economy (taking money
out of education, health and other social programs); widespread
unemployment; the widespread reduction in the number of consumers;
and staring down their competitors on the international scene, up
to and including inter-imperialist war.
They do not accept that the rate of profit must fall as
science, technology and increased intensity of labor raise the
productivity of labor and the amount of invested capital in
relation to the number of active workers. There is less surplus
value in ratio to the total investment. In addition, as less labor
time is required in the production of a commodity its value falls
according to the law of value. The monopolies refuse to accept
these laws with regard to their private enterprises and do
everything to avoid the consequences of these laws. Objectively,
why would they readily accept the collapse of their own company to
the benefit of another that is on the rise? They do not. They use
their economic and political power to avoid extinction. The result
is chaos and crisis. They try to squeeze more out of the working
class, switch to cheaper labor abroad, rob the profits from other
capitalists, and may even eliminate the very productive forces
science and technology have developed causing chaos in their wake.
An economic law exists objectively; it can neither be
destroyed, eliminated or modified. It can be understood and
conditions can be changed and developed that eliminate the
"conditions" which the law requires to operate. The law still
exists objectively and given proper favorable conditions, the
economic law will reappear in full bloom such as occurred in the
Soviet Union after the restoration of capitalism.
Shawgi Tell
University at Buffalo
Graduate School of Education
[EMAIL PROTECTED]
