Tendency of the rate of profit to fall
The tendency of the rate of profit to fall (TRPF) is a theory in the crisis theory of political economy, according to which the rate of profit—the ratio of the profit to the amount of invested capital—decreases over time. This hypothesis gained additional prominence from its discussion by Karl Marx in Chapter 13 of Capital, Volume III, but economists as diverse as Adam Smith, John Stuart Mill, David Ricardo and Stanley Jevons referred explicitly to the TRPF as an empirical phenomenon that demanded further theoretical explanation, although they differed on the reasons why the TRPF should necessarily occur.
- Align
- enright
- Author
- Rosa Luxemburg
- Comment
- enThe tendency of the rate of profit to fall (TRPF) is a theory in the crisis theory of political economy, according to which the rate of profit—the ratio of the profit to the amount of invested capital—decreases over time. This hypothesis gained additional prominence from its discussion by Karl Marx in Chapter 13 of Capital, Volume III, but economists as diverse as Adam Smith, John Stuart Mill, David Ricardo and Stanley Jevons referred explicitly to the TRPF as an empirical phenomenon that demanded further theoretical explanation, although they differed on the reasons why the TRPF should necessarily occur.
- Has abstract
- enThe tendency of the rate of profit to fall (TRPF) is a theory in the crisis theory of political economy, according to which the rate of profit—the ratio of the profit to the amount of invested capital—decreases over time. This hypothesis gained additional prominence from its discussion by Karl Marx in Chapter 13 of Capital, Volume III, but economists as diverse as Adam Smith, John Stuart Mill, David Ricardo and Stanley Jevons referred explicitly to the TRPF as an empirical phenomenon that demanded further theoretical explanation, although they differed on the reasons why the TRPF should necessarily occur. Geoffrey Hodgson stated that the theory of the TRPF "has been regarded, by most Marxists, as the backbone of revolutionary Marxism. According to this view, its refutation or removal would lead to reformism in theory and practice". Stephen Cullenberg stated that the TRPF "remains one of the most important and highly debated issues of all of economics" because it raises "the fundamental question of whether, as capitalism grows, this very process of growth will undermine its conditions of existence and thereby engender periodic or secular crises." Marx regarded the TRPF as proof that capitalist production could not be an everlasting form of production since in the end the profit principle itself would suffer a breakdown.
- Hypernym
- Hypothesis
- Is primary topic of
- Tendency of the rate of profit to fall
- Label
- enTendency of the rate of profit to fall
- Link from a Wikipage to an external page
- uwaterloo.ca/economics/people-profiles/michael-c-howard
- Link from a Wikipage to another Wikipage
- Adam Smith
- Capital, Volume I
- Capital, Volume III
- Capital: Critique of Political Economy
- Capital (economics)
- Capitalism
- Capitalist mode of production (Marxist theory)
- Category:Classical economics
- Category:Marxian economics
- Charles Bettelheim
- Constant capital
- Crisis theory
- Critique of political economy
- David Ricardo
- Die Neue Zeit
- Ernst & Young
- Eugen Böhm von Bawerk
- Eugen Varga
- Financial crisis
- Fixed capital investment
- Freight rate
- Friedrich Engels
- Geoffrey Hodgson
- Globalization
- Immiseration thesis
- Internal rate of return
- John E. Roemer
- John Stuart Mill
- Josef Steindl
- Jürgen Habermas
- Karl Marx
- Labor power
- Labor theory of value
- Ladislaus Bortkiewicz
- Ladislaus von Bortkiewicz
- Late capitalism
- Law of value
- Li Minqi
- Means of production
- Michael Heinrich
- National Income and Product Accounts
- National Statistics Office
- New Yorker Volkszeitung
- Nobuo Okishio
- Organic composition of capital
- Permanent arms economy
- Political economy
- Productivity
- Profit margin
- Rate of exploitation
- Rate of profit
- Reformism
- Reserve army of labor
- Ronald L. Meek
- Rosa Luxemburg
- S&P 500
- Secular stagnation theory
- Social Reform or Revolution%3F
- Stanley Jevons
- Steady-state economy
- Surplus value
- The Poverty of Philosophy
- The Share Centre
- United Kingdom
- Use value
- Vladimir Karpovich Dmitriev
- Quote
- enIn the “unhindered” advance of capitalist production lurks a threat to capitalism that is much graver than crises. It is the threat of the constant fall of the rate of profit, resulting not from the contradiction between production and exchange, but from the growth of the productivity of labor itself.
- SameAs
- Baisse tendancielle du taux de profit
- Caduta tendenziale del saggio di profitto
- ErDU
- Gesetz des tendenziellen Falls der Profitrate
- Kecenderungan laba untuk menurun
- Lei da tendência à queda da taxa de lucro
- m.09fc9w
- Profitkvotens fallande tendens
- Q1199857
- Tendenca falo de la profitkvoto
- Tendencia decreciente de la tasa de ganancia
- Tendenčno padanje profitne mere
- Tendency of the rate of profit to fall
- Wet van de dalende winstvoet
- Тенденция нормы прибыли к понижению
- ميل معدل الربح إلى الانخفاض
- 利潤率の傾向的低下の法則
- 이윤율의 경향적 저하 법칙
- Source
- enin her 1899 pamphlet Social Reform or Revolution?
- Subject
- Category:Classical economics
- Category:Marxian economics
- WasDerivedFrom
- Tendency of the rate of profit to fall?oldid=1116410776&ns=0
- Width
- 25.0
- WikiPageLength
- 42441
- Wikipage page ID
- 3473088
- Wikipage revision ID
- 1116410776
- WikiPageUsesTemplate
- Engels
- Template:Main
- Template:Marxian critique of political economy sidebar
- Template:Marxian economics
- Template:Quotation
- Template:Quote box
- Template:Reflist
- Template:Short description
- Template:Use dmy dates