From: Jerry Levy (Gerald_A_Levy@MSN.COM)
Date: Sat Mar 04 2006 - 09:12:32 EST
Hi Mike L and everyone else, I asked, "Is the concept of a falling rate of profit a subject for science fiction? and Mike replied with a question of his own "Yes, what else?". To which I will reply (initially) with another question: _not contemporary capitalism then_? *Expanded question with commentary*: Is there an empirical 'test' with which we can determine whether narratives concerning a decline in the general rate of profit are science fiction or not? I.e. how can particular narratives concerning a falling rate of profit be verified or falsified empirically? (Or can they be? If there are no criteria be which a theorem can be verified or falsified, what does that tell us about the theorem?). Note here the importance of making an empirical connection (or, expressing it differently, a narrative of contemporary capitalism which corresponds to its history) since if one were _only_ (read: merely) able to establish a theorem as a logically consistent proposition, then the theorem would not necessarily have any relation whatsoever to the real social subject -- capitalism. Instead, a logically consistent theorem disconnected from real world capitalism could be said to be the stuff of science fiction! To continue: we all know Marxists who have for many years (indeed, in some cases, decades) been predicting another capitalist crisis _and_ asserting that the "underlying cause" of that crisis will be the law of the tendency for the general rate of profit to decline. Indeed, I am on a yahoo group (whose name and moderator I won't mention) whose members mostly predict an immanent financial and economic meltdown. This group has been in existence for about 5 years and the predicted catastrophe hasn't happened yet. This raises several additional questions: o is there a point in time when if no financial and economic collapse happens as predicted that one says that there is something wrong with the underlying analysis? (and, again, if one can't develop a test for falsifiability, then how do we know that it isn't just a form of science fiction? ... remembering, of course, that science fiction is generally rooted at least in an indirect way to contemporary understandings of science). o suppose that a crisis happens as predicted and there is a decline in profitability. Can it be established (rather than merely asserted) that the crisis is a manifestation of the tendency for the general rate of profit to decline? How is it possible to identify this cause as the "underlying cause" for an individual (but general) crisis _rather than_ other possible causes (e.g. disproportionality, underconsumption, labor power shortage, conjuncturally specific cause, etc.)? o can it be established _empirically_ that the law of the tendency for the general rate of profit to decline is the "underlying cause" of a crisis rather than a merely formal, abstract possibility for the cause of crisis? o recalling that there are multiple "counteracting factors" to the "law", doesn't one have to account for these factors in an empirical analysis of crisis? Is this possible econometrically without making heroic assumptions about the importance of the factors themselves? Are there "too many unknowns"? Therefore, whether there is or is not a crisis, how can it be determined that the cause of the crisis or failure to experience a crisis is related in any verifiable or falsifiable way to the TRPF? If this question isn't answered, how do we know whether the Story of the Falling Rate of Profit isn't a revolutionary fairy tale, 19th Century urban legend, or early work of science fiction? In solidarity, Jerry
This archive was generated by hypermail 2.1.5 : Sat Mar 11 2006 - 00:00:02 EST