>Posted on 5 Sep 1994 at 01:43:31 by Uriacc Mailer (002033)
>
>underconsumption
>
>Date: Sun, 4 Sep 1994 22:42:31 -0700
>Reply-To: [EMAIL PROTECTED]
>From: [EMAIL PROTECTED] (donna jones)
>
Donna Jones wrote a very informative posting giving a critique of
underconsumption theory. In the hope of eliciting further comment,
I have a few comments of my own:
1) She points out that underconsumption crises can be self-correcting
because capital moves out of sectors for which there is too little
consumer demand, thereby reducing supply. This sounds like a good
explanation of the business cycle. Since capital movements occur
over time and space, these movements are very important to understanding
capitalism, even if they are self-correcting mechanisms for an
instantaneous capitalism on the head of a pin.
2) The alternative crisis theory she alludes to is that of a rising organic
composition. This too can be overcome (e.g. through uneven
technological change that affects the value composition of capital).
Moreover, certain patterns of change can lead to a decreasing organic
composition and rising profit rates. So why is this source of crisis
necessarily more profound than underconsumption?
Marsh Feldman
Community Planning Phone: 401/792-2248
204 Rodman Hall FAX: 401/792-4395
University of Rhode Island Internet: [EMAIL PROTECTED]
Kingston, RI 02881-0815
"Marginality confers legitimacy on one's contrariness."
