According to Marxist theory of crises, as growing competition among capitals, sales increasing of investment in constant capital (part of initial capital vitamins for the purchase of equipment) which reduces the investment in variable capital (the capital for the initial reproduction of the workforce).
In this way, increases the organic composition of capital, increase in capital and a steady reduction in capital investment variable, or no investment in the reproduction of the labor force, only goods-producing value, so this movement causes the falling trend in the rate of profit on capital as a whole. Good health starts with is an excellent way to help your health The rate of profit is defined as the ratio between the value and the sum of constant capital and variable capital, causing the health fall of the mass gain by the overproduction of capital. Lowering the gain is reduced investment and employment through this route and company use of machinery, raw materials and articles of subsistence, multiply the depressive effect and spread to other companies industries.
The low rate of gain offset cancer by the destruction of capital, either physically, by war, or merely economic, for the competition. Firms ruin, increase unemployment and precariousness of work, devalued the work force. Capital accumulation reappeared as competitors for victory (which have absorbed or broken business market share, reinforcing the trend towards concentration and centralization of capital) increased the returns to gain faster than the increase in inversion.
This basic process of recovery is imposed simultaneously increase the working hours of nutrition workers and the reduction in real wages and benefits, drawing unemployment, the appropriation vitamin of the increased efficiency of labor, the looting of colonial peoples or other of peasants, artisans and indigenous peoples, the war, political maneuvering, the achievements and investments in countries or areas “backward”, where the rate of gain is higher, the charging of interest to companies in the state or other states, etc.
The only “clean” out of the crisis has been cheaper capital through the discoveries, the effort of government and technological advancement, but this method also ends the long decline in its share of aggregate employment and the capital invested in wages, restored in time the cause of products the crisis by using less work for live weight and re-invested less incorporate new value and get less value compared with the old values, or constant capital to labor impasse.
- Business Week Online via Yahoo! UK
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