Trying to Help Rescue Value for Everyone

Potts, Nick

doi:10.1080/03017600902760695

Cited by 7 publications

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“…But as Freeman and Kliman (2000) make clear, Marx is concerned with the value profit rate, not the physical rate, and the profit rate relates surplus-value to the capital which was actually advanced, not its replacement value today as if it was magically advanced today for yesterday. Potts (2009a) employs a common scenario, with rising physical profitability, to illustrate how, if we apply a simultaneous and dualistic method, or the New Interpretation’s method, the value profit rate equals the rising physical profit rate. But if we apply a sequential and non-dualistic method, the value profit rate falls as the physical profit rate rises, disproving the Okishio theorem.…”

Section: Bringing Marx Back Into the Gamementioning

confidence: 99%

Marx and the crisis

Potts

2011

Capital & Class

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This paper argues that Marx’s economics leads us to a deeper understanding of our current crisis than do either mainstream, Keynesian or ‘mainstream Marxist’ economics. First, Marx explains how a tendency for the rate of profit to fall in boom manifests in the generation and speculative investment of ‘surplus’ capital in the financial system/fictitious capital, providing a tendential basis for, rather than an accidental account of, financial bubbles/crises. Secondly, Marx’s understanding that crisis is absolutely necessary to restore the profit rate, and so return the economy to boom, explains why developed countries’ governments’ attempts to postpone or limit crises since the 1970s have merely prevented a decisive enough crisis to restore the profit rate. Persistently low profitability has simply caused the world economy to stagnate, with persistently surplus capital taking many disruptive, adventurous paths. Finally, I consider how Marx’s identification of when lending is ‘lending’, and when it is simply ‘usury’, can help us understand how the nature of the financial system has changed over the last forty years.

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Section: Bringing Marx Back Into the Gamementioning

confidence: 99%

Marx and the crisis

Potts

2011

Capital & Class

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“…Profitability in value terms falls precisely because of the rising organic composition of capital that increases productivity/profitability in use‐value terms. Potts (2009) employs a common scenario of a growing economy, with rising profitability in use‐value terms, to show how, if we take a simultaneous and dualistic (to price and value) approach, the profit rate, identical in use‐value and value terms, rises. In contrast, if we take a sequential and non‐dualistic approach, the profit rate in value terms falls as it rises in use‐value terms.…”

Section: Notesmentioning

confidence: 99%

The missing C that threatens to flood us all

Potts

2011

International Journal of Social Economics

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PurposeThe purpose of this paper is to contrast conventional economists' belief that human needs are optimally satisfied by the market, with Marx's view that capitalism has a narrow focus on money making, where satisfying human needs is at most a by‐product of the system's restricted purpose.Design/methodology/approachThe paper explores conventional economics, then Marx's economics, focusing on the issue of saving the environment, as the most basic human need is having a viable environment.FindingsEconomists' focus on use‐value and optimality is explored. Marx's alternative explanation of capitalism is then introduced. The author explains why Marx thinks capitalism has a tendency to boom and slump and to produce rising levels of inequality and considers how, under capitalism, the environment could be saved, and concludes that both human needs and the environment are best secured in a more advanced social system than capitalism.Research limitations/implicationsTo properly understand capitalism, one must look to Marx's unsurpassed analysis of capitalism, rather than conventional economists' attempts to justify, but not actually explain, capitalism.Practical implicationsSaving the environment is likely to be far more difficult and disruptive to the economy than conventional economists imagine.Social implicationsFor society to actually focus on satisfying human needs, including, crucially, saving the environment, there needs to be a move to a more advanced social system than capitalism.Originality/valueThe paper challenges orthodox views by applying Marx's deeper understanding of the economy to the question of human needs/the environment.

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“…Kliman (2007) summarizes the case provided by the temporal single system interpretation (TSSI) of Marx's theory. Recent contributions include those by Carchedi (2009) and Potts (2009). Kliman and Freeman (2009) demonstrate the comprehensive lack of a meaningful response.…”

Section: Endnotesmentioning

confidence: 99%

Marxism without Marx: A note towards a critique

Freeman

2010

Capital & Class

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The most severe economic crisis since 1929 has produced a level of intellectual disarray probably not seen since 1968. In one crucial respect, the climate is different: Marxism’s intellectual impact is negligible. The culprit is not Marx but ‘Marxism without Marx’—a systematic attempt to divorce his conclusions from his economic theory. The demise of western Marxism marks the failure of this project. This note signals a first attempt to assess Marx’s real relevance to the crisis of 2008.

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Trying to Help Rescue Value for Everyone

Cited by 7 publications

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Marx and the crisis

Marx and the crisis

The missing C that threatens to flood us all

Marxism without Marx: A note towards a critique

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