I have read Shane Mage's article with great interest, it is well written,
but I'm still not really convinced by a number of points. Among other
things: 

 

Firstly, it is not scientific credible to attribute the movement of the
trade cycle purely to fluctuations in the rate of profit, caused exclusively
by variations in C, V and S. There is just no good economic evidence for
that. 

 

Secondly, we need to distinguish between ordinary medium-term business
fluctuations and epochal business crises such as the great depression of
1929-1934 or the financial crisis of 2008-2010. As regards the first, it is
not clear that the downturns in the cycle necessarily represent a "crisis".
As regards the epochal business crises, it is not clear that they are in any
way "cyclical". 

 

Ernest Mandel and Anwar Shaikh have suggested that the time-frame for the
TPRF (if it exists) should be that of the "long wave" of capitalist
development, i.e circa 20-25 years. But this long wave is not a cycle, as
both of them noted. Anwar Shaikh also suggests a secular, very long-term
decline in the industrial profit rate.

 

We are dealing here with an inquiry for which Marxists (even if they are
super-radical and super-revolutionary) cannot invoke purist "orthodoxy",
since Marx himself - although keen to do it - did not delve into it, because
he lacked the data to do it.

 

Jurriaan

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