The relevance of Marx’s theory of value and his ‘law of the tendency of the rate of profit to fall’ to the analysis of the financial crisis of 2007–8 and the ensuing global slump is affirmed. The hypertrophic growth of unproductive constant capital, including the wages of ‘socially necessary’ unproductive labour and tax revenues, is identified as an important manifestation of an historical-structural crisis of capitalism, alongside the increasing weight of fictitious capital and the proliferation of fictitious profits in the (...) lead-up to the financial crisis. These phenomena have obscured the deepest roots of the global slump in the long-term profitability problems of productive capital – that is, in a crisis of surplus-value production. With these considerations taken into account, a better empirical assessment of trends in the composition of capital becomes possible, and with it a more accurate understanding of the impact of the ongoing displacement of living labour from production on the average rate of profit and the future of US and global capitalism. (shrink)

Discussion surrounding Marx's distinction between productive and unproductive labor too often fails to distinguish between the various forms that unproductive labor may assume and is too hasty to subsume the income of workers "unproductively" employed by capital as a non-profit component of social surplus-value. Against this, it may be argued that many forms of unproductive labor are socially necessary to the social capital and are therefore properly viewed as systemic overhead costs. As such, they should be treated, in value-theoretical terms, (...) as elements of the constant capital flow. The implications of this approach are explored for crisis theory and the evolution of the class structure with particular reference to the Canadian experience in this century. (shrink)

The idea that human history evinces a pattern of development rooted in the propensity of human beings toward technical forms of rationality is fundamental to Marx's materialist conception of history. Yet the "dialectic of forces and relations of production" as traditionally conceived in historical-materialist discourse has found only weak expressions in social formations dominated by precapitalist modes of production. The hypothesis is advanced that the role of simple commodity production and exchange in such formations may be decisive to the emergence (...) of cognitive faculties capable of giving a systematic impulse to the development of science and technology, and therefore to a precapitalist forces-relations dialectic. This suggests a new way of appreciating Marx's "ranking" of the Asiatic, ancient, feudal and capitalist modes of production as "progressive epochs" in the development of human society, while illuminating the socio-historical provenance (and sources of variability) of the categories of human thought. (shrink)

The controversy surrounding the status of dialectics in Marxist thought has failed to take the full measure of the persistent influence of ontological dualism and its corollary, dualistic social ontology. Yet an explicit critique of dualism is essential to materialist dialectics and to a Marxist-socialist theory and pedagogy that discloses the specific role of capitalist social relations in impeding human progress. A dialectical-monistic ontology associated with Marx's "new" (historical) materialism requires systematic conceptual elaboration, as illuminated by a dialecticalontological triad embracing (...) "the natural," "the social" and "conscious activity." The usefulness of this triad is illustrated by exploring how dialectical-monistic and dualistic ontologies stimulate very different ways of understanding a key question in social theory: the concept of economic value. (shrink)