Lesson 1
Relative and Absolute Surplus Value and Rate of Exploitation 1
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Prof. Shapiro, Ian, PLSC 118, The Moral Foundations of Politics, Spring 2010, YALE Open Courses: Yale University, Political Science (Accessed 05/10/2014), http://oyc.yale.edu/political-science/plsc-118/lecture-11 License: Creative Commons BY-NC-SA Although we are dealing with voluntary Pareto transactions, under capitalism, exploitation occurs whether or not an individual is better off. Capitalism is destined to fail, says Marx, because of (1) the possibility for liquidity crises, (2) the nature of capitalist competition inducing declining marginal profit on the industry-wide level, (3) the fact that capitalist competition eliminates competitors and promotes monopolies, (4) weak demand, as workers could not pool their money and buy all that they produce, and (5) the fact that "workers will come to realize that they have nothing to lose but their chains."

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