Crisis Theories: Disproportionality (pt. 2)

In a response to my critique of theories that explain crises by a long-term tendency of the rate of profit to fall due the rise in the organic composition of capital, reader Jeffery Curtis wrote: “I’m not sure this was a fair representation of the falling rate of profit crisis theory. For example, your bit about departments I and II I’ve never heard of in any interpretation of the falling rate of profit. The only crisis theory I’ve read about using that is a temporal disproportionality theory concerned with fixed capital (demand falls for department I goods as machines last for years, so they fall and take wages with them, department II slowly falls and crisis erupts).”

Jeffery makes other points in his response, most of which I agree with, that all readers of this blog should read carefully. In due course, all the questions that Jeffery raises will be dealt with. But it is the first question, the relationship between Department I and Department II, which is the main subject of this week’s post. What is really involved in the question of Department I and Department II is capitalist reproduction and its role in crisis theory.

Read more…

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