I decided to make a quick explanation of the principle of the “tendency of the rate of profit to fall”, a concept which is really important to understand if you want to know why capitalism is inherently, unavoidably, destined to collapse. 1/8

Capitalism relies on constant profits in order to function. By definition, Capitalism is when one has money, invests it into productive enterprise, and gets a greater amount than they started with. This Money-Commodity-Money* dynamic is the central feature of capitalism. 2/8

As any capitalist will tell you, market dynamics drive innovation and productivity. For example, textile factories put hand-weavers out of business. Factories could produce a higher volume of cloth at a lower cost by decreasing the amount of labor required per unit produced. 3/8

This central feature of capitalism, the coercive laws of competition driving innovation and increased productivity, is what gives rise to the tendency of the rate of profit to fall. 10 units of hand-woven cloth will sell for a much higher cost than 10 factory-produced units. 4/8

The factory cloth will out-compete the artisanal cloth, but has a lower profit margin per item. In order to overcome this issue, the capitalist must seek new markets for their products to maintain that M-C-M* cycle we discussed above. This is the foundation of imperialism. 5/8

The capitalist (and their State) finds new markets in the global south in order to maintain their rate of profit. This is, of course, a genocidal process of turning indigenous economies into raw material extractors for the capitalist, and purchasers of its industrial products 6/8

In this way, imperial capitalism has spread across the globe and still exists in the form of institutions like the IMF and World Bank. All of the actions of capitalist countries are explainable by their struggle to prop up the rate of profit, whose natural tendency is to fall 7/8

Capitalist market economies are always on the brink of succumbing to their internal contradictions. If we let them, capitalists will destroy the planet through hyper exploitation in their futile attempt to deliver on the impossible promise of infinite growth in a finite world 8/8