Tugan-Baranowsky and Effective Demand

Bibliographic Data

ID10487348
AuthorsJohn Milios (0000-0002-8587-6241, corresponding author), Dimitris P Sotiropoulos (0000-0002-0585-9426, National Technical University of Athens), Dimitris Sotiropoulos
Year2007
Volume71
Issue2
Pages227-242
Publication date2007-04-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueScience & Society (JOURNAL)
Journal identifiersISSN: 0036-8237 • E-ISSN: 1943-2801
PublisherGuilford Press (PUBLISHER • US)
DOI10.1521/siso.2007.71.2.227
OpenAlexW2140662391
LanguageEN
Citations received2
References cited11

Tugan-Baranowsky criticized underconsuption crisis theories on the basis of Marx's reproduction schemes in Vol. II of Capital. However, he incorporated in his analysis the “absolute immiseration thesis,” and claimed that “proportionality” between production sectors would exclude any possibility of crisis, despite the supposedly continuous fall in mass consumption. This approach allows for a Keynesian interpretation of Marx's theory of expanded reproduction of social capital, according to which a constantly increasing investment demand may always compensate for the lacking demand for consumer goods. In contrast to Keynesian approaches, the ultimate “cause” of an economic crisis is found to be not “lack of demand” but “lack of surplus value,” in the sense that the totality of capitalist contradictions renders capital unable to exploit labor at the level of exploitation that is required for sustaining profitability rates

Capital (architecture · Capital accumulation · Capital good · Capitalism · Economics · Effective demand · Exploit · Investment (military · Keynesian economics · Microeconomics · Neoclassical economics · Production (economics · Profit (economics · Profitability index · Reproduction · Surplus value · Value (mathematics · Economic Theory and Institutions · Economic Theory and Policy · Law · Political Economy and Marxism

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