Capital intensity, unproductive activities and the Great Recession in the US economy. (8th December 2018)

• Record Type: Journal Article
• Authors: Tsoulfidis, Lefteris; Paitaridis, Dimitris
• Is Part Of: Cambridge journal of economics. Volume 43:Number 3(2019)
• Page Start: 623
• Page End: 647
• Publication Date: 2018-12-08
• Subjects: Composition of capital -- Unproductive labour -- Capital accumulation -- Rate of profit -- Growth accounting; Economics -- Periodicals; Economic history -- Periodicals; 330
• DOI: 10.1093/cje/bey051
• Languages: English
• ISSNs: 0309-166X

Abstract

Abstract: The purpose of this article is to show that the Great Recession of 2007 in the USA is of the classical type featuring the rising value composition of capital which more than fully offsets the rising rate of surplus value giving rise to a falling rate of profit. The tendential fall of the latter, from a point onwards, led to a stagnant mass of real net profits, thereby decreased net investment and eventually impacted on employment. The evolution of capital intensity and the consequences of unproductive activities remain key issues in the discussions of capital accumulation and its periodic ruptures.