March 25, 2014

Profit for Marxists

Working paper at SSRN

Abstract  Marxian economics and standard economics are widely different yet they share a central weakness: the respective profit theories are demonstrably false - each one in its own characteristic way. Roughly speaking, Marx tried to explain profit by objective factors while standard economics cites subjective factors. For different reasons, neither route led to satisfactory results. The conclusion is straightforward: one has to do better. The conceptual consequence is to first reconstruct the profit theory from a solid basis with no regard to either Marxian or standard premises. In order to succeed, objective-structural axioms have to be taken as formal point of departure.