Employment dynamics, increasing returns and Marx's falling rate of profitPSL Quarterly Review, 2021, vol. 74, issue 298, 219-245 Abstract: It is assumed that Marx focuses on profits that are to be realized in larger production that permits some surplus production. This understanding underpins the importance of increasing returns embedded in employment dynamics associated with larger employment bases. This organizational form not only permits increases in profits in production but also supports employment-based learning by doing-led new investment opportunities that maintain and increase such profits. (A change in organizational form, the emergence of increasing returns due to scale economies implies that the conception of profits changes from one based on employment dynamics to one that relies more on market power. Accordingly, the present paper argues that empirical analyses should not focus on a falling rate of profits as such: they should rather focus on what factors make clear the behaviour of the rate of profit, and clearly distinguish between the employment dynamics-based profits and the profits that relate more to the returns to higher fixed costs. Keywords: rate of profit; increasing returns; employment dynamics; scale economies; market power (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:psl:pslqrr:2021:36 Ordering information: This journal article can be ordered from Access Statistics for this article PSL Quarterly Review is currently edited by Alessandro Roncaglia and Carlo D'Ippoliti More articles in PSL Quarterly Review from Economia civile |
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