ABSTRACT
Harvey further expands on how the exploitation of labor and overproduction of commodities contribute to a falling rate of profit. The problem of overaccumulation in the primary circuitof capital in production of manufactured goods can be resolved through capital reinvestment in other outlets. This surplus capital can be reinvested in fixed capital machinery applied to the production process, or switched into the secondary circuitof the built environment for production such as infrastructure. The secondary circuit also includes commodities for worker consumption, as well as the built environment for consumption (which includes worker housing and infrastructure necessary for the reproduction of labor). The money and banking system, or fictional capitalsector that is controlled by financial and state institutions, functions as a “nerve center” that mediates and regulates capital flows between the circuits. Capital can also be switched into the tertiary circuitof investments in science and technology.
