Since the mass of the employed living labour is…
““Since the mass of the employed living labour is continually on the decline as compared to the mass of materialised labour set in motion by it, i.e., to the productively consumed means of production, it follows that the portion of living labour, unpaid and congealed in surplus-value, must also be continually on the decrease compared to the amount of value represented by the invested total capital. Since the ratio of the mass of surplus-value to the value of the invested total capital forms the rate of profit, this rate must constantly fall.””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Profit rates tend to decline because surplus value grows slower than total capital invested.
In simple terms: Profit falls as capital expands faster than surplus.
Key Takeaway
Recognize structural limits of capitalist profit.
Themes
economics
capitalism
value theory
Mood
analytical
theoretical
Type
economic
philosophical
When to use this quote
- industrial production
- investment decisions
- economic policy
Key Concepts
rate of profit
surplus value
capital accumulation
Questions to Reflect On
- What alternatives can sustain profitability?
- Can policy counteract profit rate fall?
A Different Perspective
Decline may be mitigated by technological change.