1. Accumulation & Crisis
Capital, Chapters 23-25

2. Definition? Accumulation = expanded reproduction Accumulation = growth
Accumulation = development
Accumulation means accumulation of all the elements of capital, but especially accumulation of class relations, more “capital”, more “labor”.

3. Simple Reproduction Reproducing what already is
Marx conceived “reproduction schemes”
Department I = production of MP
Department II = production of MS
DI must produce MP for DI and DII
DII must produce MS for DI and DII
There must be balance

4. Simple Reproduction
In simple reproduction surplus value spent on capitalist consumption
DII produces MS for WC and for Kclass
No investment (beyond depreciation, ie., replacing what is worn out)
No growth

5. Expanded Reproduction
Expanded Reproduction = growth
Investment, I.e., S is spent on more C + V
So Investment in DI must buy MP + MS
So investment in DII must by MP + MS
There must be balance between the two departments, proportionality

6. Reserve Army
But accumulation always includes not only the waged working in DI and DII
But also unwaged who have no “jobs”
This is usually conceived as unemployed
But for Marx, the reserve army =
latent reserve
floating reserve (frictional unemployed)
stagnant reserve (structural unemployed)

7. Accumulation and Crisis
Along with laws and force, business could go on strike, i.e., refuse to invest
For example in period of rapid growth, high profits and high investment, labor markets get tight, workers get higher wages, rate of profit fills and business cuts back on investment, reducing aggregate demand
Thus a downturn as economic activity diminishes, unemployment rises

8. Classical Business Cycle
Output
Q 
I 
 
U 
W 
W 
I 
Q 
p 
I 
time

9. Reserve Army Expands during downturn Contracts during upturn
Undermines struggle for higher wages
Undermines struggle against falling wages

10. Crisis as Regulator Crisis for business
Is turned into crisis for labor
Crisis becomes a “solution” for business
To restore balance of class power
But…. Always open ended

11. Crisis to Revolution
Crisis for capital may be over come and expanded reproduction renewed
Or...
Crisis may explode into uncontainable revolution that ruptures all of capitalist circuits and liberates emerging alternatives from capitalist constraints.

12. --END--