The growth of the federal debt as a percentage of GDP is prompted by the declining rate of profit. This decline is masked by the expansion of credit throughout the system of accounts held by major investors in banks and other repositories of titular wealth. Marx explained the growth of fictitious capital in Capital, Vol. III, Chap. 25. The component of all assets which is fictitious grows in such a way that the investors don't recognize it. They don't understand, or accept, the law of value that Marx elucidated. Without this understanding it is possible to confuse debts with assets. See, for example Thomas Piketty or Stephanie Kelton.
With the increasing federal debt, accompanied by growing unemployment and mass misery, there will be more political pressure on politicians to keep borrowing. This leads to hyperinflation. Much of the stimulus money will go to working people to pay rent or purchase consumer goods. This mitigates the pace of growth of fictitious capital. Some goes to the wealthy who use it to push up stock prices. The high stock prices of today signify mostly fictitious capital. A small fraction of the quoted "market capitalization" of this or that publicly traded corporation can be said to represent the underlying value of the real commodities under the control of the titular owners of the company. The excessive tax payments from the federal government to these corporations serves, in part to continue the process of driving up stock prices. All this is a result of the growing pressure of the falling rate of profit. For those who ignore or disagree with Marx's analysis, what I am saying here makes no sense. James Miller marxism-science.com -=-=-=-=-=-=-=-=-=-=-=- Groups.io Links: You receive all messages sent to this group. View/Reply Online (#6334): https://groups.io/g/marxmail/message/6334 Mute This Topic: https://groups.io/mt/80572959/21656 -=-=- POSTING RULES & NOTES #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. -=-=- Group Owner: [email protected] Unsubscribe: https://groups.io/g/marxmail/leave/8674936/1316126222/xyzzy [[email protected]] -=-=-=-=-=-=-=-=-=-=-=-
