This landmark text by Paul Baran and Paul Sweezy is a classic of Monopoly Capital and millions of other books are available for Amazon Kindle. Learn more. The authors of Monopoly Capital,[1] Paul A. Baran and Paul M. Sweezy, attempt to overcome “the stagnation of Marxian social science” by shifting the focus of. Paul A. Baran and Paul M. Sweezy, Monopoly Capital. New York and. London: Monthly Review Press, Pp. ix + Harry Magdoff. New School for Social .

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The normal state of monopoly capital is thus stagnation. Monopolyy also later criticized Monopoly Capital for not referring directly to Marxian value theory categories, i. While part of the expense of government-induced production piles up as the national debt, another part is continuously distributed over the whole of the economy and being paid for in higher prices by means of inflation.

Monopoly Capital by Paul Mattick

But, to repeat, the Marxian model of capital formation and its consequences is based not on competition but on the application of the labour theory of value to the accumulation process. Yet capitalism did live to see that future. Likewise, the financiers do not care whether loans are made to private entrepreneurs or to government, so long as they are secure and yield the desired rate of interest.

This was during the later years of the Vietnam War and a worsening economic climate. When used for government purchases, taxes mknopoly from capital flow back to the capitalists in form of government contracts. They also indicate that government requires and receives an ever greater share of the Gross National Product.

He was a frequent contributor to Monthly Reviewco-author with Paul M. It was one of the first major works to focus capial multinational corporations. But government can borrow additional funds.

To the extent that capital loses its capital character, the xapital of total capital — whatever it may be — monopolh be impaired, and the surplus-value, however great, will be smaller than it would be under conditions of full use of productive capacity.

And thus, while the fall of the rate of profit is checked by accumulation it cannot entirely be prevented, for there are definite limits beyond which the absolute labour-time cannot be extended and the necessary labour-time, i.

Paperback, pages ISBN: And it is of course true that this was accomplished by government interventions in the economy. Not only is this type of production non-profitable, it is made possible only through that part of total production which is still sufficiently profitable to yield taxes large enough to extend government production by way of taxation.


What is the continuing relevance of Monopoly Capital? Views Read Edit View history.

Nothing so clearly explained the current stage of capitalism, though to understand capitalism fully it was clear mnoopoly had to go back to Marx and the whole socialist tradition. The only indication as to whether it is rising or falling is given by market events.

Monthly Review | Baran and Sweezy’s Monopoly Capital, Then and Now

The complaint about the lack of demand is then, actually, a complaint about insufficient profitability. It is only through the growing capacity to produce that total exchange-value is enlarged and capital accumulated. The descriptive parts of Capital refer to capital competition and to the elimination of competition by way of competition, i.

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Monopoly Capital: An Essay on the American Economic and Social Order

In this property-income was Depreciation charges largely suffice to finance the technical innovations of, and the additions to, the productive apparatus, which, with a slow rate of expansion, is effective enough to provide an increasing national income and an even faster rise of profits.

But all these items are cost-of-production items which are not recoverable in sales-prices on the market, for, with insignificant exceptions, the products produced for government fall out of the market system. InI edited a book with the Polish economist and sociologist Henryk Szlajfer called The Faltering Economywhich was organized principally as a reply to the supply-side theory emerging on the left and secondarily to fundamentalist Marxian theories that denied the relevance of the monopoly stage of capitalism.

The increasing rate of obsolescence indicates the quickening pace in which means of production lose their profit-producing capacity. Without the accumulation of capital, however, the capitalist system can only contract, and it contracts the faster, the more its production becomes unprofitable.

Baran and Paul M. New products, catering to new wants, are not advertisements, even though they may be advertised. True, government purchases actually do increase production generally, for the non-marketable final products require intermediary productive activities, such as the production of raw materials, the consumption needs of increased employment, and the required additions and changes in the productive machinery.

Because periods of stagnation are crisis conditions, one could say that the temporary crisis has become permanent. To him, it makes no difference whether it stems from government or from private spending. This is to see society in the abstract, not as a specific society; at any rate, not as capitalist society.


Monthly Review MR was part on this side of the Atlantic of the same constellation of views as what is now known as the First New Left in Britain, from which the term arose. They provided a nascent political economy of environmentalism via their searching critique of waste in the system.

Part of a series on. Baran was Professor of Economics at Stanford University.

Monopoly Capital

According to Baran and Sweezy, the normal modes of surplus utilisation are capitalist consumption and investment — augmented by unavoidable expenses of the circulation process and by necessary but unproductive activities. Socialism portal United States portal. For Baran and Sweezy, however, capitalist problems are exclusively market problems.

The authors are under no illusion that they have succeeded in exhausting the subject. As such it cannot function capitalistic ally; but neither can it function capitalistic ally when taken by government to finance the non-profitable production of public works and government waste.

In monopoly capitalism, however, these normal modes of surplus utilisation no longer suffice because production outruns the effective demand. And it would be able to sell a larger product if capital would accumulate and thus increase the effective demand. To express this, I call the value composition, in so far as it is determined by the technical composition and mirrors the changes of the latter, the organic composition of capital. Value and surplus-value production would no longer be possible.

The conditions of capitalism would have been completely reversed. Their work played a leading role in the intellectual development of the New Left in the s and s. After wartime military service, he joined the staff of the Federal Reserve Bank of New York, leaving to become a member of the Stanford economics faculty in To the individual it also makes no difference whether he is employed in the production of waste or in that of marketable commodities.

Private accumulation therefore requires the support of government spending geared primarily towards imperialistic and militaristic government tendencies, which is the easiest and surest way to utilize surplus productive capacity. To increase their shares of a given market, or to maintain their profitability in a shrinking market, the different capitals will try to cheapen their production in order to maintain or increase their competitive ability.

As soon as capital feels itself strong, however, the crutches are thrown away and capitalism moves in accordance with its own laws of motion.