chapter  7
15 Pages

A Scheme of the Economic Cycle under Monopolism

WithE. A. Preobrazhensky

Control of social production by private individuals or private groups remains unchanged, as does the private character of appropriation. The anarchy of production continues, and the law of value remains the spontaneous regulator of economic life, although the interweaving of free competition with monopoly causes the action of this law to be impaired and distorted. Monopolism corrupts the mechanism of regulation through value, but is obviously unable to achieve planned control of the production process. This chapter discusses the unique features of the cycle under monopolism. It describes the general social crisis of capitalist society as a whole, showing how it develops in imperialist conditions of reproduction and in the context of imperialism's unique economic cycle. There are two possible causes of an industrial expansion, unevenness over time in the reconstruction and expansion of fixed capital, and unevenness in the general tempos of capitalism's development, or development of one part of the capitalist entity at the expense of another.