ABSTRACT
According to Marxian theory, the performance of capitalist economies depends above all else on the rate of profit. The purpose of this chapter is to derive estimates of the rate of profit and its Marxian determinants in the Mexican economy during the post–World War II period in order to determine the trends in these key variables. The specific questions addressed are: Was there a significant decline in the rate of profit during the period of expansion and prosperity from the 1950s to the 1970s? Has there been a significant increase in the rate of profit since the 1970s? What have been the main causes of these trends, according to Marxian theory? What are the likely future trends of the rate of profit and its Marxian determinants in the years ahead? The answer to this last question will determine to a large extent the possibility of a full and lasting recovery from the deep current economic crisis. Furthermore, our estimates for the Mexican economy will be compared with similar estimates for the U.S. economy, which should provide insights into the similarities and differences in the absolute levels and the trends in these variables between advanced and (large, important) developing countries.
