Henryk Grossmann’s Breakdown Model: On the Real Cause of the Fictitious Breakdown Tendency

 
by Andrew Kliman 
 


INTERACTIVE SPREADSHEET FILE: The Bauer-Grossmann reproduction scheme once rising productivity cheapens commodities


REFERENCES

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Duménil, Gérard and Dominique Lévy. 2000. The Conservation of Value: A rejoinder to Alan Freeman, Review of Radical Political Economics 32.1, pp. 119–46.

Grossmann, Henryk. 1992. The Law of Accumulation and Breakdown of the Capitalist System: Being also a theory of crises. Translated and abridged by Jairus Banaji. London: Pluto Press.

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Satia, Priya. 2020. We All Think History Will Be on Our Side. Here’s Why We Shouldn’t Rely on That Assumption, Time magazine, Oct. 20. https://time.com/5901461/historical-judgment/ .
 


 

1 Comment

  1. Thanks for this measured critique; beyond the various technical problems with Grossman’s work that you discuss here, it seems to me that his analysis depends on a gratuitous psychological/political assumption about capitalist behaviour — that they will give up the game merely because their personal revenue disappears.

    But being a capitalist is a valuable social privilege, one worth making sacrifices to retain. And of course the capitalists do not in fact have to make personal sacrifices — they can extort resources from society at the point of a gun, i.e. by instituting a fascist regime.

    Given Grossman’s location in space and time, failure to consider this seems a rather startling oversight.

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