chapter  4
3 Pages

Monopolism in the System of Supply. Unproductive Consumption

WithE. A. Preobrazhensky

This chapter deals with the crisis of 1929-1930 to provide a considerable volume of statistical evidence to document the formulated position. A transformation of the character of the capitalist cycle depends also upon changes occurring during the epoch of monopolism in the capitalist system of exchange. The theory of monopolism must begin with the fact that in addition to the monopolistic associations that embrace the main branches of production, transport and the credit system, monopolism is found as well in the network of commodity distribution. The causes and consequences of this entire process are frequently misunderstood in the economic literature. It appears to many observers that the reason why contemporary capitalism develops the production process more slowly than in the past is the fact that the unproductive consumption of the capitalist system is growing too quickly.