THE FOURTHWAY MANHO E-JOURNAL
Volume 148 July 04, 2021
DAS KAPITAL, DECREASING RATE OF PROFIT IN CAPITALISM: WEE BIT OF PETTY PRICE TAGGING
By Professor Dr. Tan Man-Ho
(An revised excerpt from the original work, Real World Views, Book 1, by Professor Dr. Tan Man-Ho entitled "New Trends in Dialectical Philosophy, Economic Forces in Society, Natural Sciences and Philosophy of Nature," March 1972 ~ June 1973 Discourses, Chapter 4, Section C & D : "Das Kapital," "Decreasing Rate of Profit in Capitalism: Wee Bit of Petty Price Tagging," pp. 73 ~ 101)
The Law of Decreasing Rate of Profit in Capitalism is at the same time accompanied the Law of Increasing Mass Production of Commodities
Neoliberalism Political Economy Project (1978-1980-2001)
The whole body of the Great Sociocosmic Being regularly experiences an ascending-ascending gravity-center focus to heal itself, preventing illness, maintaining inner harmony and ensuring peaceful presence. Here in 'neoliberalism' so-called by these three-brained beings on mother Earth's surface experiences a gravity-center focus descending to capitalistic MI-FA Interval after a period of Soviet and Keynesian Political Economy passing-by where gravity-center focus has ascended to socialistic TI-DO Interval. The future or post neoliberalism is likely to ascend back to socialistic TI-DO Interval due to severe wealth inequality negative consequences of neoliberalism and the emergence of pro-TI-DO Interval advanced technocosmic instruments of production such as high-speed supercomputers, Big Data, internet, 5G, cashless economy, high-speed logistics, high-speed central planning, etc.
C. DAS KAPITAL
1 Transformation of money into capital - General formula of capital
The circulation of commodities is the starting-point of capital. Commodity production (in projects) and that highly developed form of commodity circulation which is known as commerce constitutes the historical groundwork upon which it rises. The modern history of capital begins in the sixteenth century with the establishment of a worldwide commercial system and the opening of a world market.
If we ignore the material substance of the circulation of commodities, ignore the exchange of the various use-value one for another, and confine our attention to the economic forms which the process generates, we see that its final product is money. This final product of the circulation of commodity is the first phenomenal form of capital.
From the historical outlook, capital comes in the first instance to confront landed property in the form of money; it appears as money property, merchants (mercantile) capital and usurers (money lenders) capital. But we have no need to look back into the origin of capital in order to recognize that money is its first phenomenal form. This history is repeated daily under one’s own eyes. Every new aggregate of capital enters upon the stages, come into the market (the commodity market, the labor market, or the money market), in the form of money – of money which, by a definite process, has to be transformed into capital.
The primary definition between money as money and money as capital is nothing more than a difference between their respective forms of circulation.
The simplest form of the circulation of commodities is C – M – C , the transformation of a commodity into money, and the retransformation of money into a commodity; selling in order to buy. However, side by side with this form, we find another, which is specifically different. We find the form M – C – M, the transformation of money into commodities and the retransformation of commodities into money, buying in order to sell. Money that circulates in the latter way is thereby transformed into capital, is already potential capital.
Let us examine this circuit M – C – M more closely. Like the simple circuit C – M – C, it passes through two antithetical phases. In the first phase, M – C, purchase, money is transformed into commodities; in the second phase, C – M, sale (sales revenue), commodities are retransformed into money. The combination of these two phases is the aggregate movement thanks to which money is exchanged for commodities and these commodities are exchanged for money, commodities being bought in order to sell them again – or, if we ignore the formal distinction between buying and selling we can say that money buys commodities, and then commodities buy money. The essence of the whole process is the exchange of money for money, M – M if for 100 I buy 2,000 us of cotton, and then sell 2,000 us of cotton for 110, I have, in the end, exchanged 100 for 110, money for money.
Now it is obvious that the circuit, M – C – M, would be absurd and unmeaning were it to eventuate, after all our trouble, in nothing more than the replacement of a certain sum of money by another sum of money of exactly the same amount, for instance, 100 by 100. The hoarder, who simply holds fast to his 100 without exposing it to the money of circulation, has an easier and safer method then this. On the other hand, no matter whether the merchant who has bought cotton with 100 sells this cotton again for 100, or for 110, or even for as little as 50, in any case his money has undergone a movement of a peculiar kind, very different from the movement of the simple circulation of commodities as for instance when a peasant sells corn, and with the money paid for it buys clothing. Our first business then, is to study the distinctive characteristics of the respective circuits, M – C – M and C – M – C . The real differences underlying more differences of form will then disclose themselves.
Let us first ask what the two forms have in common. Each of the circuits can be analyzed into two antithetical phases, which are the same in both cases; C –M, sale, and M – C, purchase. In each of the two phases the same two material elements, commodity and money, confront one another; and two persons confront one another wearing the same economic masks, a buyer and a seller. Each of the two circuits is the aggregate of the same two antithetical phases, and in each case the aggregate is established by the intervention of three contracting parties, of whom one does nothing but sell, another does nothing but buy, while the third both buys and sells.
But what from the first distinguishes the two. Circuits, C – M – C and M – C – M, each from the other is the inverted order of succession of the two phases. The simple circulation of money as capital begins with purchase and ends with sale. In one case, the commodity, and, in the other case, money, forms the starting-point and the good of the movement. In the first form, money determines the circulation; in the second conversely the commodity determines it.
In the circuit C – M – C money is ultimately transformed into commodities, which serve as use-values. The money is spent once for all. In the converse form, M – C – M on the other hand, the purchaser surrenders money in order that, as a seller, he may get money back. When he buys commodities he puts money into circulations, in order to take money back out of circulation, when he sells the same commodities. He only parts with his money with the sly purpose of getting it back again. Money therefore is not spent, but merely advanced “L” = when a thing is bought, in order to be sold again, the sum employed is called money advanced; when it is bought not to be sold, it must be said to be expended,…………
In the form C – M – C, the same can changes places twice. The seller receives it from the buyer, and pays at away to another seller. The while process, which begins with the receiving of money for commodities. It is the other way about in the form M – C – M. what changes hands twice is not the same piece of money, but the same commodity. The buyer receives it from the seller and passes it on to another buyer. Just as is to simple circulation of commodities, the twofold changes of place of the some can bring about its definite transference from the hands of one person into the hands of another, so, here, the twofold changes of place of the same commodity effect the return of the money to its starting point.
The return of the money to its starting-point is independent of the question whether the commodity is sold for a higher price than for which it was bought. All that this circumstance influences is the amount of money that flows back. The influence taken place as soon, that is to say, as the circuit M – C – M, is completed. Here, then, we have a palpate difference between the circulation of money as capital, and its circulation as mere money.
The circuit, C – M – C, is finished as soon as the sale of a commodity brings money which the purchaser of another commodity has taken away. If nevertheless money flows back to its starting point, this can only be owing to the renewal of repetition of the whole operation. If I sell a quarter of wheat for 3 and with this sum buy clothes then the 3 has been, as for as I am concerned spent once for all. I have nothing more to do with the sum of money. What happens to it concerns the clothier. If now, I sell a second quarter of wheat, then money flow back to me, but not in consequence of the first transaction. It flows back only because the transaction has been replaced. It will flow away from me again as soon as I complete the second transaction and make a new-purchase. This is the circuit C – M – C, the spending of the money has nothing to do with its effect. In the circuit M – C – M on the other hand the inflow of money is itself determined by the method of expenditure. Unless this re-flow occurs, the operation has failed, or the process has been interrupted and remains incomplete, for its second phase, the sale which should supplement and concluded the purchase is lacking.
The circuit, C – M – C, starts with one commodity once finishes with another which falls out of the sphere of circulation and enters the sphere of consumption. Its final purpose, therefore, is consumption; the satisfaction of wants in a word use–value. The circuit, M – C – M, on the other hand, sets out from money and ultimately comes back to money again. Its leading nature, the purpose which actuates it is therefore exchange-value. (Das Capital, Vol. 1)
2 “……capitalist production is not merely production of commodities. But something more! Eventually, it is the production of surplus value. Only that worker is hour “productive” who produces surplus value for the capitalist, and thus promotes the self-expansion of capital. (capital created by labor of the workers oppresses the worker by undermining the small proprietor and creating on army of the unemployed). If I may be permitted to give an example drawn from another sphere than that of material production, a schoolmaster is a productive worker when, in addition to working in order to improve the intelligence of his scholars, he slaves to enrich the school proprietor! Whether the owner of capital invests it in a school or in a sausage factory, therefore does not merely imply a relation between work and useful effects, between the worker and the products of his labor; but also a specific social relation of production a relation that has come into existence through a historical process and one thanks to which the worker is characterized as the direct means for promoting the self-expansion of capital. To be a productive worker therefore, is not a piece of good luck, but a misfortune. In book four of this work, in which the history of the theory of surplus value will be discussed we shall see more clearly that classical political economy has always regard the production of surplus value as the distinctive characteristic of the productive worker. Its definition of the productive worker; therefore, varies with its conception of the nature of surplus value. Thus the physiocrats declare that agricultural work is the only form of productive work, for this, they consider is the only kind of work that produces surplus value. For them, surplus value exists only in the form of land-rent.
A prolongation of the working day beyond the time during which the worker was producing no more than an equivalent for the value of his labor power, and the appropriation of this surplus value by capital – this is the production of absolute surplus value. It forms the general foundation of the capitalist system, and the starting point of the production of relative surplus value. The latter presupposes that the working day is already divided into two portions, necessary labor and surplus labor. In order to increase the period of surplus labor the period of necessary labor is shortened by means, which enable the equivalent of the wage of labor to be produced in a shorter time. The production of absolute surplus value depends only upon the length of the working day; the production of relative surplus value revolutionizes out and out the technical processes of labor and the way in which society is evolved into groups. (Das Kapital, Vol. 2, Absolute and Relative Value)
3 Transformation of the choice on the price of labor power into wages
The workers, wages appear to be the price of labor a definite amount of money paid for a definite among of labor. People talk shows the nature of the labor, and say that the asymmetric expression of that value is the necessary or natural price of the labor as a price which fluctuates on either side of its necessary price. But what is the value of a commodity? It is the objective form assumed by the social labor that has been expended in its production. Well, how do we measure the magnitude of its value? We measure that value by the magnitude of the labor it contains. How then should we ascertain the value of say a 12-hours working day? We should measure it by the twelve working hours contained in a working day of 12 hours – which is a ridiculous tautology!
Mr. Ricardo, ingeniously enough, avoids a difficulty, which on a first view threatens to consume his doctrine that value depends on the quantity of labor employed in production. If this principle is rigidly adhere to, it follows that the value of known depends on the quantity of labor employed in producing it – which is evidently absurd. By a dexterous turn, therefore, Mr. Ricardo makes the value of labor depends on the quantity of labor required to produce the wages or to give him the benefit of his own language, he maintains that the value of labor is to be estimated of by the quantity of labor required to produce wages by which he means the quantity of labor required to produce the money or commodities given to the labor. This is similar to saying, that the value of cloth is estimated, not by the quantity of labor bestowed on the production of the silver from which the cloth is exchanged.
If labor is to be in the market as a commodity than labor must exist before it can be sold. But if the worker could give his labor an independent existence, he would sell a commodity, and not labor.
Apart from these contradictions, an exchange of money (that is objectified labor) for living labor would either abrogate the law of value, which only begins to develop freely on the basis of capitalist production itself, which rest directly on wage labor. The working day of 12 hours, for instance, is represented in a money value of 6s. Now here there are turn possibilities. It may be that equivalents are being exchanged, and in that case the worker is receiving 6s for 12 hours labor. Then the price of his labor would be equal to the price of what he produces. But if that were as, he would not produce any surplus value for the purchaser of his labor; the 6s would be transformed into capital; the foundations of capitalist production would vanish, whereas it is upon these foundations that the surplus will be retained as part of the long process of accumulation of capital.
4 The productivity of labor is a natural development and there is nothing mysterious about the matter though here and there people are inclined to make a mystery of it. It is not until human beings have raised themselves above the level of the animals from which they have sprung, and not until their labor has been to a certain extent socialized, that conditions arise in which the surplus labor of one can become another’s means of subsistence. In the early beginnings of civilization, the productivity of labor is small; but at this time, too, human wants are scanty, for these wants only develop to an extent proportional to the development of means for their satisfaction. Furthermore, in these early days the proportion of the member of society who lives by means of other’s labor is infinitesimally small as compared with the general mass of direct producers. But as the social productivity of labor increases, this proportion grows both absolutely and relatively. The relation which makes capital a possibility arises, moreover, upon an economic foundation which is itself the product of a long evolutionary process.
5 Changes of magnitude in the price of labor power and in surplus value, I assume that:-
i) commodities are sold at their value
ii) the price of labor power, though it may occasionally rise above its value never sinks below that value
6 The accumulation of capital
The conversion of a sum of money into means of production and labor power is the first step taken by the quantum of value that is going to function as capital. The transformation takes place in the market, in the sphere of circulation. The second step, the process of production, is complete as soon as the means of production have been transformed into commodities whose value exceeds that of their constituent parts, and therefore contains the capital primarily expended plus surplus value. These commodities must then be thrown into circulation. They must be sold; their value must be realized in money; the money must again be materialized into capital and so on over and over again. This circular movement, in which the same phases are perpetually repeated, constitutes the circulation of capital.
The capitalist has bought labor power at its value for a day. He has, therefore, acquired the right of making the worker work for him for a day. But what is a working day? Unquestionably the working day must be shorter than the natural day of 24 hours. How much shorter? The capitalist has his own ideas as to this matter. As a capitalist, he is merely capital personified. This seed is the soul of capital, which has a vital impetus of its own, the impulse towards self-expansion, towards the creation of surplus value towards making the constant factor of capital (the means of production) absorb the greatest possible amount of surplus labor. Capital is dead labour and like a vampire, can only keep itself alive by sucking the blood of living labor. The more blood it sucks, the more vigorous does it lives. The time during which the worker works, is the time during which the capitalist is consuming the labor power she has bought. If the worker consumes his disposable time for his own purposes, he is robbing the capitalist! (If the free manual worker reels for a moment, the avaricious economist, working earnestly, contends that the worker is robbing him).
Thus the capitalist appeals to the law of exchange of commodities. Like any other buyer, his desire is to turn the use-value of his commodity to the greatest possible advantage. But suddenly we hear a voice, which has hitherto been stifled cupid the storm and stress of the process of production.
The worker speaks as follows:
The commodity I have sold you is distinguished from the ordinary mot of commodities by this that its use breathes value and a greater value than its own. That was why you bought it. What to you seems spontaneous expansion of capital seems to me an excessive expenditure of labor power. In the market, you and I know only one law, the law of exchange of commodities. By that law, the consumption of a commodity belongs, not to the seller who alienates it but to the buyer who acquires it consequently the due of my daily labor power by means of the price of its daily sale, so that I can continue to sell it over and over again. Apart from natural wear and tear due to advancing years and so on, I must be capable of working tomorrow with the normal measure of energy, health and freshness I possess at my work. Today you are continually preaching to me the gospel of “thrift” and “abstinence” well and good! I shall make a reasonable and thrifty use of my sole possession, my labor power and shall be careful to avoid squandering it. From day to day I shall set so much only of it in motion shall turn as much only of my capacity for labor into labor as is compatible with its normal duration and healthy development. If you prolong the working day for me unnecessarily you will reach a point when you will be able in one day to set in labor. I shall replace in three days what you thus gain in labor; I shall lose in the substance of labor. Using my labor power and despoiling me of my labor power are two very different things. If the working life of an average worker who does a reasonable amount of work is assumed to be at the average of 30 years, then the value of my labor power for which you pay me from day to day is 1/365*30 or 1/10,950, 1/3 of its daily value; and consequently you will have enabled me daily of 2/3 of the value of my commodity. (Das Kapital, Vol. 2, p. 619)
7 The value of a commodity is not really present in the commodity, strictly speaking. The value is actually present in the mind of a person and all the buyers.
8 Oh no! I got to pretend this does not happen at all! The poisoning consequences of a poisonous fruit of a plant can only be removed completely by removing the plant and just not the fruit, for the plant will continue to generate the poisonous fruits again and again. However, poisonous fruits and their deadly consequences still exist like immortal beings of truth. Unemployment the poisonous fruit of capitalism can only be removed completely by removing capitalism itself and not just trying to remove unemployment, for capitalism bears the fruits of poisonous unemployment. Yet capitalism does not disappear according to negation laws.
9 Das Kapital is the Bible of the working class! It is its Holy Aquarius Scripture and manifesto of the thought, heart and body of this historical class. He has in him the Living Labor for which he needs Embodied Labor to produce Total Labor. This is his Production Equation:
Embodied Labor + Living Labor = Total Labor
or EL + LL = TL
EL is all past labor necessary for producing the product or the service such as instruments of production or land, plants and machineries, raw materials, intangibles, etc.
LL is the necessary labor added into the work process of the living laborer to produce the product or service
TL is the total of labor that result from this combination
A capitalist/employer comes with the EL add the employee's LL and gets the TL. He divides this LL into 2 parts:
The 1st part called wage or salary to the worker/employee and the 2nd part called profit or surplus to the capitalist/employer himself with all the rights and decisions of its use.
Socialist/workers says all the EL, LL and TL belongs to the workers/employees and the surplus must be retained and managed by the workers or employees for the benefits of all the workers/employees involved in this production and should not use it serve the interests and benefits who did not participate in producing it.
This is the unsuspecting docile wealth-accumulating "invisible" essence seed or nuclear bomb of Capitalism that finally grows into a huge evil tree of massive global sociocosmic aberration in the form of colonialism, imperialism, fascism, Nazism and hegemonism, eating states and nations and yet coated much with numerous peculiar and lunatic sociocosmic happy personalities in the journey to self-destruction. All these have happened during this polar FA-SO-LA-TI Historical Periods of Capitalism and Socialism ...... not to forget the terrible consequences at its peaks, World War I, II and even risking a future World War III!
D. DECREASING RATE OF PROFIT IN CAPITALISM: WEE BIT OF PETTY PRICE TAGGING
1 Wee bit of petty price tagging for commodities (including labor as commodity priced as 'salaries and wages') in daily peaceful as well as in the perturbed life of capitalism full of abnormalities, logicnestrian wizardries and professional nuances are referred here.
The storyline goes, thus:
The commodities created out from the labor of the workers and other factors are tagged with predatory prices that have margins. When the commodities move through the distribution channels, the price escalates. The prices escalation can reach a “terrific” level that consumers are no longer willing to pay for. Governmental intervention of price escalation through tagging, often than not, helps only the powerful capitalists and the favored parties. Further downstream along the channels, the disadvantageous price tagging was enforced to reduce the margin to the minimum and the beings along the downstream channels are starving.
Let us analyze this price changes in greater detail especially the variation from the realm of the exclusive wholesalers to the downstream retailers.
For simplicity, we shall present the escalating prices of one commodity as follow:
P1 → P2 → P3 → P4 → P4 → P5 → P6 → P7
The natural quantitative relationship is as follow:
P1 < P2 < P3 < P4 < P5 < P6 < P7
Price tagging in favor of the consumers and the up-streamers makes the price of commodity almost equal along the stream and looks fair in the eyes of public.
There the problem must not be looked. First, the consumers are happier and second the up-streamers are happy too. But the losers are those lower down the stream. I take it for granted that most consumers and businesspersons alike will opt for the cheaper prices if qualities of similar commodities are nearly the same.
Without price tagging, the consumers (majority) would be cheated. Price tagging is a regulatory act. The explanation is obvious and I shall leave it to the reader to reason out. The up-streamers make lesser money as much money is gained by the down-streamers.
The best solution to this age-old problem (by age-old is meant already known essence of capitalism) but deliberately mystified, is to influence the regulatory forces through instrumentation of consumerism into imposing price tagging. Price tagging is a continuation of accumulation or retention of “capitals” by some other means.
Does price tagging really help the consumers essentially? Let us analyze it:
Consider the Price Escalation series.
P1 → P2 → P3 → P4 → P4 → P5 → P6 → P7
If P1 increases by a certain value then P2, P3, P4,
P5, P6 and P7 will increase by an equal or greater amount. If P1
decreases, then P2, P3, P4, P5, P6 and P7 should decrease theoretically
although in practice nothing really happen. If there is no price
tagging prices often gone rampant and likely to misbehaved .
P1 is the really important price starter. It is the value of P1 that consumers really desire to known as all other prices depend on it. Only the up-streamers is known to have good controls of this mother starter price.
In a world, price tagging is only to make hidden relationship appear with greater transparency – that is a major goal of price tagging. It does restrain the down-streamers but keep the up-streamers on the fertile land. What the workers can essentially benefit is not the price tagging question best the question of the value of P1. If all the commodities produced by the workers belong to the workers that is to say the sum total of wages or salary given to the workers for making one commodity is equal to P1, then the workers can buy back all that they produced …… so there is an end to P2, P3, P4, P5, and P6 as well as P1. The chain of “workers” along the distribution channels have added “values” to the original “values” of the products.
2 Historical decreasing rate of profit in Capitalism (July 04, 2021)
The main purpose of existence of capitalism in layman’s term is for making more money, carrying out more cheating, making capitalist richer with more wealth, where profitability is its main income soul and war is its other wealth accumulation soul. In between peace and war lies the home of mechanical sleep-producing magic, lies and tricks of a thousand tongue!
Profitability for capitalist history obey mainly
one fundamental historically law in its life span, namely, the law of
diminishing profitability or decreasing rate of profit alternating with wars
in the diminishing repeating cycles of peace and war. The decreasing rate of profit is
staggered or cyclical but generally decline in the process of history and
for its period of arising, growing and declining.
Profitability for capitalist history obey mainly one fundamental historically law in its life span, namely, the law of diminishing profitability or decreasing rate of profit alternating with wars in the diminishing repeating cycles of peace and war. The decreasing rate of profit is staggered or cyclical but generally decline in the process of history and for its period of arising, growing and declining.
However, the greater picture is a historical law of Capitalism subject to not just political economic laws but even astrological influences in human civilization and history. On a lower scale of astrological influences, along economic scale of existence and essences peculiar to capitalistic life on mother Earth’s surface at the vital point of capitalistic life for survival is profitability of his businesses of production of goods and services to distribution and consumption.
Capitalism as an existential historical production-distribution-consumption specie sociocosmic being, that was born in the 17th Century on the surface of mother Earth at the FA-MI Interval of our Ray of Creation, breeds and grows rapidly all over the world would likely die in the 22nd Century. During this period of history it has tri-octavized from its original FA-sociocosmic stopinders of production-distribution-and-consumption feeding on the labor of the individuals (DO), the groups (RE) and the Families (MI) all its way and controlling the regulatory higher sociocosmic stopinders such as the states (SO), the nations (LA) and the World-of-Nations (TI) to its three-centered corporate favor in the endless process of capital accumulation to oligopoly if not monopoly - full of hasnamussian properties coated with much pleasures blinded in organ kundabuffer. The opposing forces from the Will of Socialism of its own sociocosmic TI-DO Interval chronically descended, now hidden now open acted from the gong beings in the form of the ever increasing number of rebellious gong beings has caused the capitalistic lau beings to seek for ever more and more regulatory repressions and the use on large-scale of more and more less rebellious technocosmic beings through capital intensive production over the existing labor intensive production to produce the abundance of commodities (goods and services) which could not in principle and not supposed to be given free or even cheap for consumption but to help further evermore accumulation of wealth. But these technocosmic beings produced by the labor can help only to produce large quantities of commodities of every quality and at speeds far more than the abilities of the biocosmic laboring gong beings can do. However, the acquisition cost, the costs of maintenance, replacement and repair of these less rebellious technocosmic beings are very high and also reduces the rate of profits for the capitalist beings. The cost of the undistributed and un-consummed commodities keeps on increasing to serious capitalistic crises if capitalism cannot find enough sociocosmic stopinder beings to buy or consume them in order to convert into money as a necessary completion of the 'moments' of the capitalistic process as a living sociotechnocosmic being. For its own survival it has to smash its way through any barriers that were imposed by the other competitive FA-beings, the restrictive SO-beings, the LA-beings and the TI-beings - certainly through wars if necessary. It is this capital intensive pursuit of capitalism that give rise to the birth and large-scale breeding of the technocosmic beings preparing the way for the completion of the first 3 technocosmic revolutions and the mass unrest of the biocosmic humanity at all sociocosmic levels against capital and their technocosmic beings as means of production - an intelligent hidden 'aim' of the peculiar technocosmic beings against biocosmic humanity later.
Hand in hand, the transformation of capital into sociopital, that is, the transformation of 'accumulation-to-the-exclusive-ownership-of-the-few-in-pursuit-of-more-accumulation-to-the-same-few' to 'accumulation-to-the-inclusive-ownership-of-all-for-shared-humanity' and the transformation of capitalistic commodity-labor into a socialistic non-commodity work, that is, into 'from each according to his ability to each according to his work' put an end to Capitalism and bring forth the historical sociocosmic specie of socialistic production-distribution-consumption of the next higher historical period of history - socialism proper, bear in mind alongside the lurking technocosmic being-in-wait to be 'spiritual.'
Historically, the rate of profit tends to decline in this manner for the fate of Capitalism as an existential sociocosmic specie being and at the same time with an increasing mass production of commodities that comes along with it where the pressure to open up more global markets to absorb the mass of commodities becomes unavoidable. The need to destroy the productive forces of foreign competitors become mandatory through wars:
The Law of Decreasing
Rate of Profit in Capitalism is at the same time accompanied by the Law of
Increasing Mass Production of Commodities
The Law of Decreasing Rate of Profit in Capitalism is at the same time accompanied by the Law of Increasing Mass Production of Commodities
Based upon a Research Letter written by
Michael Cembalest, Chairman of market and investment strategy at JP Morgan,
in the Atlantic magazine report
(though the methodology has been questioned and the estimates are based on
limited data no one else has presented anything better). But it is
obvious there is evidence of mass production of commodities under Capitalism
(Added July 04, 2021)
Based upon a Research Letter written by Michael Cembalest, Chairman of market and investment strategy at JP Morgan, in the Atlantic magazine report (though the methodology has been questioned and the estimates are based on limited data no one else has presented anything better). But it is obvious there is evidence of mass production of commodities under Capitalism (Added July 04, 2021)
2. Mandatory war to increase Rate of profit and fixed asset accumulation 1911 – 1929 with increasing lower level recovery of rate of profit by exploitation and asset gains from land + important resources captured through winning wars (World War I).
3. Depressive decreasing rate of profit (again) 1929 – 1941 with Great Depression.
4. Mandatory war to increase rate of profit and fixed asset accumulation (again) 1941 – 1965 with increasing lower level recovery of rate of profit (Golden Age) by exploitation and asset gains from land + important resources captured through winning wars (World War II).
5. Depressive decreasing rate of profit (again) 1965 – 1983 with much lower rate of profit and stabilizing at low level during neo-liberal recovery period.
6. Mandatory war to increase rate of profit and fixed asset accumulation (again) 1983 – 2007 through Cold Wars, Sanctions, Color Revolutions and Wars Against Terrorism to stop and stabilize the fall of the rate of profit if not to increase rate of profit and gaining control and re-control of vital resources also during neo-liberal recovery period but leading to new depression crises. The low-cost neoliberal disintegration and feeding subsequent feeding of the USSR by US and NATO, and further NATO expansion, and developing future Russia and China disintegration feeding plans of US Hegemony, an ill-fated sickness of the capitalist political economic system.
7. Depressive decreasing rate of profit (again) 2007 – 2017 onwards with much lower rate of profit and a number financial crises and new depressions ……
8. Mandatory war to increase rate of profit and fixed asset accumulation (again) 2017 – 2023 onwards with the advent of new hybrid wars launched by capitalist America and its allies against China especially to preserve hegemony in hope of new increase of profit but only showing signs of continuing Fall of Capitalism.
Capitalism is hungry for wars and does that periodically in its history, and it is its own wars that make it fall as soon as it losses a war, especially an internal revolutionary war that gives rise to socialism.
Thucydides, born Athenian, general and historian, 460 - 404 BC, was a sacred three-brained being with C influences of the Age of Aries where, at that time, cosmic forces are actively influencing the three main gravity-center psychic vibrations of the 1st lower body of the human hethormen being consisting of the moving-instinctive and sex centers as the raw source and foundation of all other inner arisings of his higher feeling and thinking parts. At the same time there was also a plague due to a virus from the virocosmic octave killing thousands of three-brained beings in the various zarooarian towns of Ethiopia, Egypt and Athens and even the population in Pireaus was attacked by this virus. His famous work as a historian and a general-in-war is his objective reflection, during his exile, on the history of the barbaric animal and war nature of the Arian civilization of Greece and the reciprocal destruction law that took place there amongst the SO-lau beings or king beings of those SO-sociocosmic kingdoms, notably the forces of Soliooonensus induced reciprocal destruction between Sparta and Athens known as the famous Peloponnesian war. This famous long-drawn war was a SO-lau war of preserving hegemonistic ancient slavery dominance.
The Thucydides Trap continues as an aberrating non-humane model of noo flow for all warring classed societies of the ancient slavery period through the feudal serfdom period up to the last capitalistic employism classed societies and losing its entrapment powers in non-classed socialistic wenming humane (human is truly human) societies of the coming 2148 AD …. so long as the fall of man and the fall of societal social life energies did not happen due to cosmic influences.
Continuing the storyline .......
However, during the astrological Age of Pisces the inner development of these human hethormen beings have shifted to the lower and higher feeling centers dominance over the raw impulses of the instinctive-moving-sex centers that somewhat contain their own lower centers of barbaric hegemonistic tendencies. LA-lau wars such as dynasty wars and empire wars were common amongst the LA-sociocosmic stopinders. During this period wars are aplenty to preserve the hegemonistic feudal dominance in the midst of an emerging socialism proper.
At the end of the astrological Age of Pisces or in the current Aquarius Seed of Initiation (ASI) where the lower and higher thinking (reasoning) centers become the dominating inner centers within the human hethormen beings, tech for wars for capitalist, imperialist and hegemonist dominance such as World War I and World War II (amongst imperialists vs imperialists), the Cold War (amongst imperialists vs socialist Soviet Union), the War Against Real and Invented Terrorists (amongst imperialists vs rogue states), the Hybrid Wars (amongst western hegemonists vs socialists' China), the virocosmic War, etc. Note that these terrible sociocosmic aberrations deeply rooted at the MI-FA Interval in the form of the 1st lateral sociocosmic octave of our Great Sociocosmic Being arises mainly from those human hethormen three-brained beings full of predatory, exploitative, oppressive, profit-maximizing and wealth accumulative capitalistic essences due mainly from their declining rate of profit, their inability to rise above their three lower instinctive-moving-sex centers and the cosmic need for the sacred askokin of man by our moon and planets around.
It was noted there is also a blind spot a sociocosmic kundabuffer preventing these MI-FA Interval capitalist-imperialist-hegemonist three-brained beings from perceiving, conceiving, reflecting and understanding anything out of their own outer world platform or inner world frame of reference - simply due to this organ kundabuffer. Thus nothing can be correctly perceived, conceived, reflected or understood about the essences of the socialist three-brained beings proper at the TI-DO Interval. Nothing can be properly understood amongst these MI-FA beings about the essence energies of inner unity, harmony and peace together with the emanated external personalities of 'strategic war deterrence' to prevent the war accidents of these MI-FA Interval hegemonistic war-mongers.
And the Thucydides' Trap ......
Now, Thucydides' Trap still lingers on even in this ending Age of Pisces due to our own level of inner arisings within our own three-brains in regard to the proper higher level understanding and handling of our own capitalistic power-seeking, power-possessing, wealth-seeking and wealth-possessing urges within the Tilaujinggong context, that is, our inability to understand the MI-FA and the "SO-LA"/TI-DO Interval of the Great Sociotechnocosmic Being.
The Thucydides’ Trap of war between a dominating hegemon nation and its allies with an emerging competing nation and its allies was wiseacred by capitalism to stabilize this further decline of rate of profit to the lowest bottom line for the ultimate Fall of Capitalism after the continuing failure of the hybrid wars.
After World War I & II of Hot Wars, we experienced a period of Cold Wars between the United States of America and the Soviet Union which ended in 1991 with the disintegration of the Soviet Union into 15 nation stopinders released as weak nationates for sociocosmic feeds. The process of continuous feeding by the USA and NATO on these newly released nationates peculiar to the essence of capitalists' hunger gradually drew hot wars into this region and also into the Middle East countries including US led-NATO coalition wars in Iraq from 2003 to 2011 and an Islamic revolution in Iran - all over oil control and petrodollar guarantees as finance capital and the industrial-military complex were truly hungry for such 3rd sociocosmic oil resource being-food for the survival of technocosmic padrigines, the other technocosmic immobilias and the sociotechnocosmos as a whole. Meanwhile, the process of enneagramic feeding of the disintegrating Eastern European nations of the old Soviet Union in which process both the US, NATO and EU continues to divide and feed on these 14 nationate sociocosmic being-foods, and further expansion of the hunting ground extended far into Afghanistanin and into East Asia. By now, the 5,000 years old ancient civilizational sociocosmic specie, being-China, has over a few decades of rapid modernization, to the surprise and disappointment of US and NATO hegemony which have to confront a truly powerful enemy, for which a protectorate struggle is unavoidable to maintain world hegemony status quo. A New Cold War or Cold War II began in 2017 with many rounds of hybrid wars in the political, ideological, sociological, economical, informational, military tensional areas against China, but not much of success for reason that this being-China is just too powerful and together with its ally being-Russia they become truly formidable. Proxy Wars broke out between US/NATO and Russia at an expected strategic ground, Ukraine, in 2014, .... and 2022 gradually changing the New Cold War into a Warm War with switch-on nuclear parameters . (March 2022)
This Warm War can turn into an Armageddon or World War III with no possibility of increasing rate of profit for capitalism or capturing through such a war to increase mega accumulation of wealth. Human beings will then have to live with a genetic hazard radioactive environment or virion toxins (of proteins), and any other new wars later would then be through the throwing of sticks and stones at one another.
The fall of the rate of profitability is caused by the increasing cost of the means of production and the cost of labor. The Fall of Capitalism is due to its monopoly-oligopoly position on a global scale to ownership of assets especially the means of production by the 1% or more of the world population and the decreasing of rate of profitability that were helplessly caused to be by the ever-growing power of the means of production and labor until the survival of Capitalism has reached its own bottom line of capitalistic death, and unable to revive through another repeat cycle of a war or produce an Armageddon, but only to be reborn in the form of socialistic ownership and shared prosperity or “shared profit” en masse as socialism at the last highest level of the development of the productive forces with aplenty full of awakened wealth conscious sharing three-brained beings stimulated periodically in the cycle from mechanical sleep-wake consciousness to awaken wealth and prosperity-sharing three-brained beings! This cycle in history is mandatory as sleepy man will be eaten without conscience and only awakened and enlightened man will share with conscience …… and continues and continues.