chapter  2
11 Pages

Expanded Reproduction and Crises under Free Competition: General Observations

WithE. A. Preobrazhensky

This chapter formulates the position that the organizational structure of monopolistic capitalism creates entirely unique difficulties for expanded reproduction. The chapter demonstrates that the quest for the highest profit through expanding and cheapening production is frequently replaced by pursuit of the maximum profit through curtailing production and supply. This change in the situation is so serious and has such important consequences that it can be formulated in more general terms: the monopolistic structure of capitalism so curtails-or perhaps it would be better to say, so distorts-the action of the law of value, that today this law can no longer regulate the process of reproduction as it once did in the epoch of free competition. Once the turn has been made into a new phase of expanded reproduction, those workers, who previously were drawn into production only due to the new orders for fixed capital, is organically and permanently reabsorbed.