From: "David B. Shemano" Charles writes:
"As long as there is exploitation, there will be crises, 'cause exploitation restricts the consumption of the masses, and 'The ultimate reason for all real crises always remains the poverty and restricted consumption of the masses as opposed to the drive of capitalist production to develop the productive forces as though only the absolute consuming power of society constituted their outer limit.'" It seems to me that the present crisis was not caused by restricted consumption, but overconsumption -- the masses leveraged themselves to consume goods and services they could not otherwise afford. If I am right (and you are obviously free to dispute my view), how does the present crises square with your underconsumption theory? David Shemano ^^^^ CB: This is a good question David, and actually I have been thinking about it from discussions elsewhere on this. I believe the answer is sort of right there in front of us. Not being able to afford something is the same as poverty or restricted consumption relative to the something you want to buy. The credit papered over this fact for a while. But eventually the unaffordabilty broke through the paper. When eventually the buyer didn't pay for whatever it is they bought on credit, the seller-creditor was not paid and therefore didn't realize profit. At that point matters are exactly the same as if whatever the commodity is had not been bought in the first place, from the standpoint of the seller getting money. I realize that in this case the buyer actually gets some stuff that she wouldn't get if she never even bought it; that doesn't particularly bother me; and it makes no difference with respect to the rate of profit falling . I guess we need a different word than "consumption", but the key issue is whether the seller gets her money or not as far as the rate of profit (realized) falling. Who posseses the goods really makes no difference as to whether the rate of profit realized falls or not. The goods are in the consumer's possession instead of piling up in the seller's warehouse as inventory. But possession of goods does not realization of surplus value and profit make. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
