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Credit, The Turnover of Capital, and the Law of the Falling Rate of Profit: A Critical Note

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  • Miguel D. Ramírez

Abstract

This paper argues that the total turnover period of capital, comprising both its time of production and circulation, has been almost totally ignored in the Marxian literature as an important counteracting factor to the law of the declining rate of profit. It is not mentioned at all by Marx in his famous Chapter XIV, Vol. III of Capital where he discusses other important counteracting forces, nor by Engels (in this particular context), who edited both Vols II and III of Capital. Moreover, this note contends that had Marx lived to re-write Vols II and III, he probably would have explicitly connected the expanding role of credit (associated with the development of capitalism) to a significant reduction in the turnover period of capital, thereby boosting the rate of surplus value, and countering, in an highly erratic, and contradictory manner, the fall in the rate of profit.

Suggested Citation

  • Miguel D. Ramírez, 2014. "Credit, The Turnover of Capital, and the Law of the Falling Rate of Profit: A Critical Note," Contributions to Political Economy, Cambridge Political Economy Society, vol. 33(1), pages 61-68.
    • Handle: RePEc:oup:copoec:v:33:y:2014:i:1:p:61-68.
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    File URL: http://hdl.handle.net/10.1093/cpe/bzu010
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    1. Miguel D. Ramirez, 2012. "Is the Falling Rate of Profit the Driving Force Behind Globalization?," Contributions to Political Economy, Cambridge Political Economy Society, vol. 31(1), pages 91-102.
    2. repec:oup:copoec:v:31:y::i:1:p:91-102 is not listed on IDEAS
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    Cited by:

    1. Miguel D. Ramirez, 2019. "Credit, Indebtedness and Speculation in Marx's Political Economy," Economic Thought, World Economics Association, vol. 8, pages 46-62, December.
    2. Miguel Ramirez, 2015. "Credit, Indebtedness, and Speculation in the Marxian Paradigm: A Critical Analysis," Working Papers 1507, Trinity College, Department of Economics.
    3. Miguel D. Ramirez, 2020. "Capital as a social process: A Marxian perspective," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 9(1), pages 41-71.
    4. Miguel D. Ramirez, 2019. "Marx and Ricardo on machinery: a critical note," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 26(1), pages 81-100, January.
    5. Stavros Mavroudeas, 2019. "Comment on Miguel Ramirez's paper, 'Credit, Indebtedness and Speculation in Marx's Political Economy'," Economic Thought, World Economics Association, vol. 8, pages 63-68, December.

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    More about this item

    JEL classification:

    • B10 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - General
    • B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist
    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian

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