Luxemburgist Crisis Theory

  1. subcp
    subcp
    In Luxemburg's model, focusing on 1 of the 2 aspects of capitalist crisis recognized by Marx (tendency toward overaccumulation of the means of production and a tendency for the rate of profit to fall) and the 'saturation of pre-capitalist markets' theory, how are manifestations of the crisis of capitalism, in decadence, understood related to the explosion of debt and credit?

    I've seen other comrades link the saturation of underdeveloped markets with the natural turn of capital to extensive use of credit and debt, 'phantom capital', etc. to fill the need for the overaccumulation. Since the 1970's we've seen that relationship flip-flop, with the majority of production taking place in formerly underdeveloped regions (the saturated markets) and distribution/consumption/reproduction functions occurring in the central capitalist nations. Some argue that credit/debt have become a part of the wage since the 1970's (communisation publications).

    I'm trying to get a better handle on how credit and debt, as they've exploded since the post-war period (specifically after 1973), but generally since the onset of decadence, fit into the Luxemburgist model of crisis theory.

    Any thoughts or ideas on this topic?
  2. Alf
    Alf
    Did you follow the debate that took place within the ICC on this? The following article is probably the most comprehensive 'Luxemburgist' attempt within this discussion to explain the relationship between debt and extra-capitalist markets during the decadence of capitalism: http://en.internationalism.org/ir/14...ar-boom-part-5. But it should really be read in conjunction with the previous articles which argued about this question from different starting points. You can find them on this page, starting with International Review 135: http://en.internationalism.org/booktree/2145
  3. Noa Rodman
    Noa Rodman
    There was also a thread about it on the ICC forum (here). I give some references to pro-Luxemburg articles (by Bellofiore), but I have become convinced that Luxemburg's framework is wrong. On limits of credit, I recommend this article; http://libcom.org/library/credit-rom...-zachary-atlas