Interview with Lotta Continua 1977
Question: We seem to be entering into a new period of serious economic and social crisis. What are the new features of this period, in comparison with the 1930’s?
Answer: The basic reasons for the current crisis are the same as those which caused all previous capitalist crises. But all crises have also specific features with respect to their initiation, the reactions released by them, and their outcome. The changing capital structure accounts for these peculiarities. Generally, a crisis follows in the wake of a period of successful capital accumulation, wherein the profits produced and realized are sufficient to maintain a given rate of expansion. This state of capitalistic prosperity requires a steadily increasing productivity of labor, large enough to offset the relative decline of profitability resulting from the changing capital structure. The competitive and therefore blind pursuit of profit on the part of individual capitals cannot help but ignore the changing capital/labor composition of the social capital. The crisis erupts, when an arising disproportionality between a required rate of profit for the social capital and its necessary rate of accumulation forbids its further expansion. This underlying but empirically unascertainable discrepancy comes to the fore in terms of market relations as a lack of effective demand, which is only another expression for a lack of accumulation on which the effective demand depends.