Skip to main content Accessibility help
×
Hostname: page-component-788cddb947-r7bls Total loading time: 0 Render date: 2024-10-09T03:18:25.665Z Has data issue: false hasContentIssue false

2 - The limit to capitalist growth

Published online by Cambridge University Press:  05 November 2011

Get access

Summary

It would be boring to the point of pain were we to replicate Marx's simple and expanded capitalist reproduction schemata from Volume II of Capital. Only a general outline will be given, along with the underlying assumptions of Marx's models, many of them implicit.

In Chapter XX of Volume II, Marx used a simple reproduction schema consisting of two Departments. Department I's output was restricted to the production of producers' goods (raw materials and fixed capital), and Department II specialized exclusively in the production of the means of subsistence (consumers' goods). Marx assumed that: (1) ‘normal’ prices prevail, that is, the market prices of goods reflect the amounts of labor value embodied in them, which in turn determine relative prices or rates of exchange embodying equivalent amounts of labor time; (2) real wages and real surplus value are constant on a per capita basis; (3) the stock of capital remains unchanged from one production time period to another, which implies that net investment is zero, meaning that there is no net addition to the existing stock of capital – gross investment in fixed capital is therefore equal to depreciation or the amount of wear and tear of the existing capital stock; and (4) the capital output ratio (c/o), the organic composition of capital (c/v), and the rate of surplus value (s/v) are the same for both Departments.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 1979

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×