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ok so since marxism is trending I'm going to post the best introduction I've come across of marx's labour theory of value and theory of crisis, which is the core of his work and the marxist critique of capitalism. THREAD WITH CLIPS
now we know what variable capital and surplus value are. how do they function in relation to one another, and the broader capitalist system, and how does this relate to economic crises? for that we need to know what the rate of profit and constant capital are, all explained here
a crucial concept was introduced there, central to marx's critical analysis of capitalism and theory of crises: the law of the tendency of the rate of profit to fall over a business cycle through the increase in the ratio of constant to variable capital (machines replace labour)
alright, so we now know the core concepts and how they function as part of the broader framework (recent research by piketty et al has confirmed: living labour (V) is being replaced by dead labour (C) at a high rate). now let's move to the next step: how does this lead to crises?
we've come to the crucial part: if the ratio s/v increases at a lower rate than c/v (living labour replaced by dead labour) the rate of profit goes down. that's it. that's the logic of capitalism. *but* it is a tendency bc there are counteracting influences. then the crisis hits
and in these periodic crises, which are intrinsic to capitalism, constant capital (C) is destroyed, while unemployment reduces variable capital (V), restoring the balance. however what is not mentioned there but marx did note was that these crises would only get worse over time
now I believe marx was in essence correct in his analysis of capitalism and its logic, and it's asinine to pretend otherwise. we are witnessing firsthand how constant capital (C) is rapidly replacing variable capital (V) through the increasing development of AI and automation
which means that ever greater crises await us in the near future, and the means by which they can be diminished and the balance can be restored are becoming unavailable. and some among the bourgeoisie know it, which is why they're pushing neoliberal UBI proposals
the only thing we don't know is whether they'll be successful in creating some kind of neoliberal hellscape, where most can barely survive through some UBI while they live as kings, or whether we'll go extinct through climate change. or, you know, socialism
anyway, here's the full video by cliff bowman. the best short intro to some of marx's core economic concepts and critique of capitalism I've come across
