> >^^^^^^^^ > >CB: Yea, realization problems. In this passage , Mattick is with >us, isn't he ? Even if he discusses "realization of surplus value by >accumulation", his conclusion is dependent upon "insufficient >demand" by consumers of commodities from Department I, insufficient >mass demand or consumption.
No the problem is that though surplus value had indeed been realized, it was proving insufficient as a mass to encourage capitalists to undertake the level of investment by which surplus value could again be realized. Difficulties in the realization of surplus derived from difficulties in the production thereof. Moreover, while it appears that the investment demand is murdered by high interest rates, the Fed in fact raise interest rates as it finds that attempts to pump liquidity in the system are leading more to (asset) inflation and the fragility to which that gives rise rather than real investment which falls off as a result of a decline in the rate and mass of profit. The Fed is powerless to change this; fiscal policy can relieve realization problems but the resumption of private investments depends on the restoration of profitability through the devaluation of constant capital and a rising rate of surplus value. To the extent that fiscal policy adds to pessimism about future profits it can encourage the further retrenchment rather than the making of new investments. So Bush is attempting to build confidence by some fiscal stimulus with future regressive tax savings by cutting into any kind of social welfare. Social darwinist military Keynesianism. The business class thus looks to the state first and foremost to turn the world market to its national advantage and to beat the hell out of labor not for any good *reason* but out of frank and brute defense of privilige and possession. They have the perfect man for the job. Rakesh
