,M>XISM & ,BROOK+S ,9/ITUTION 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,S\RCE3 ,9T]NATIONAL ,REVIEW1 VOL4 #b1 ,NO4 #f1 ,AUG4 #a#i#c#g1 PP4 #i-#f2 
,TRANSCRIB$3 BY ,?OMAS ,S*MIDT4 

,A,S,I,D,E ,F,R,O,M M9OR CRITICISM DIRECT$ AT ! S]IES ( ECONOMIC /UDIES 
UND]TAK5 BY ! ,BROOK+S ,9/ITUTION UND] ! G5]AL HEAD+ ,9COME 
& ,ECONOMIC ,PROGRESS1 !SE PUBLICATIONS HAVE BE5 WIDELY HAIL$ AS AN 
IMPORTANT CONTRIBUTION TO CONTEMPOR>Y ECONOMIC RESE>*4 ,A FEW DETAILS 9 ! 
/UDIES HAVE MET ) OPPOSITION ON ! P>T ( SOME ECONOMI/S4 ,! COMPUT+ 
ME?ODS & ! RESULTS HAVE BE5 *ALL5G$ BY O!RS4 ,/ILL1 LOOK+ AT ! 
:OLE WORK FROM A G5]AL PO9T ( VIEW1 ONE MAY V5TURE TO SAY ?AT EV5 ! 
,M>XI/ WILL BE READY TO PAY HOMAGE TO ! ,9/ITUTION & TO ! AU?ORS ( 
! S]IES1 TO :I* !RE HAS REC5TLY BE5 ADD$ ! HI<LY VALUABLE VOLUME 
5TITL$ ,! ,RECOV]Y ,PROBLEM 9 ! ,UNIT$ ,/ATES4 

,PROGRESS 9 B\RGEOIS ECONOMIC !ORY IS NECESS>ILY LIMIT$ BY ! 
/ATUS-QUO DESIRES ( ! PRIVILEG$ UND] ! CAPITALI/ RELATIONS4 
,9 SO F> AS ?IS 0SCI5CE0 CAN ADVANCE1 IT IS !REBY DOOM$ TO 
PROCE$ T[>D ITS [N ABOLITION1 ?AT IS1 TO >RIVE AT NO?+ MORE ?AN ! 
R$ISCOV]Y ( ECONOMIC PO/ULATES PRES5T$ TO ! WORLD #g YE>S AGO BY ,M>X4 
,J4 ,M4 ,KEYNES' LATE/ ATTEMPT TO 0REVOLUTIONIZE0 B\RGEOIS 
ECONOMY1 9 HIS ,G5]AL ,!ORY ( ,EMPLOYM5T1 ,9T]E/ & ,MONEY1 
MAY S]VE AS AN EXAMPLE4 ,IT L$ HIM1 AS HAS BE5 WIDELY OBS]V$1 ONE /EP 
NE>] TO ,M>XISM1 BUT ALSO AT ! SAME TIME TWO /EPS F>!R AWAY FROM REAL 
UND]/&+4 ,?IS BORR[+ FROM ,M>XISM BECOMES A NECESSITY EV5 :5 ! 
ECONOMI/ M]ELY TRIES TO DO JU/ICE TO ! FACTUAL DEVELOPM5T2 ?\<1 ( 
C\RSE1 ! BORR[+ MAY BE UNCONSCI\S-AS IT IS OBVI\S ?AT MO/ ( ! 
FAM\S ECONOMI/S1 ,KEYNES 9CLUD$1 HAVE NEV] /UDI$ ,M>X4 ,BUT UN=TUNATELY 
= !M ! FACTS >E ON ,M>X'S SIDE4 ,! SECRET ( ! OBS]VABLE 
PR$ICTIVE P[] ( ,M>XIAN ECONOMICS LIES 9 ITS ACCEPTANCE ( ! LAW ( 
VALUE AS ! DET]M9+ 9N] LAW ( CAPITALI/ DEVELOPM5T4 ,& 
9V]SELY1 ! IMPOT5CE ( PRES5T-DAY B\RGEOIS ECONOMY1 AS DI/+UI%$ 
FROM ! CLASSICAL ECONOMI/S1 CAN BE SATISFACTORILY EXPLA9$ BY ITS REJECTION 
( AN OBJECTIVE MEASURE ( VALUE4 ,TO ACCEPT 9CID5TALLY1 UND] SU* 
CONDITIONS1 C]TA9 DETAILS ( ! ,M>XIAN !ORIES MAKES ! B\RGEOIS 
!ORETICIAN ONLY ! MORE RIDICUL\S2 JU/ AS A NAK$ MAN M]ELY EMPHASIZES 
HIS NUDITY BY PUTT+ ON ONE SOCK4 ,WE CAN UND]/& ! CRITIC :O REF]R$ TO 
,MR4 ,KEYNES' WORK & HIS CRUSAD+ ZEAL AS 0AN 9T]E/+ EXHIBIT 
9 ! MUSEUM ( DEPRESSION CURIOSITIES40 

,! ,BROOK+S ,9/ITUTION1 =TUNATELY1 HAS NO AMBITION TO 
0REVOLUTIONIZE0 B\RGEOIS ECONOMY4 ,BAS+ ITS !ORY-SU* AS !RE 
IS-ON NO?+ MORE ?AN EMPIRICALLY OBS]V$ FACTS1 IT >RIVES AT /ATEM5TS 
& CONCLUSIONS ( ! HI<E/ 9T]E/ ALSO TO ,M>XI/S4 ,NOT)/&+ ! 
RA!R PITIFUL PETIT-B\RGEOIS SOCIOLOGICAL \TLOOK1 :I* F9DS ITS EXPRESSION 
9 ECONOMIC REPORTS CALL+ = A RETURN TO GOOD OLD LAISSEZ-FAIRE 
CAPITALISM & ITS DEMOCRATIC POLITICAL 9/ITUTIONS1 & :I* SEEMS UTT]LY 
\T ( PLACE1 9 VIEW ( ! MAT]IAL PRES5T$1 7:I* P]MITS AN 5TIRELY 
DIFF]5T SOCIAL VISION71 ! WORK ( ! ,9/ITUTION (F]S ! CASE ( A REAL 
EVALUATION ( ! PRES5T-DAY DILEMMA ( CAPITALISM BY B\RGEOIS 
ECONOMI/S4 

,I,I 

,9 ! ?IRD VOLUME ( ! S]IES1 ,! ,=MATION ( ,CAPITAL1 ,H4 
,G4 ,M\LTON HAD ALREADY PO9T$ \T ?AT MO/ ( ! ]RORS ( CLASSICAL ECONOMY 
RESULT$ 9 L>GE P>T FROM ! CIRCUM/ANCE ?AT !SE ECONOMI/S CONSID]$ 
ALL ECONOMIC PROBLEMS FROM ! /&PO9T ( ! 9DIVIDUAL CAPITALI/ 9/EAD 
( ! TOTAL CAPITAL4 ,?IS NE$ = LOOK+ AT CAPITALISM AS A :OLE1 IS ALSO 
ONE ( ! MA9 PO/ULATES ( ,M>XIAN ECONOMIC !ORY4 ,! ATOMIZ$ ECONOMIC 
ACTIVITY ( 9DIVIDUAL CAPITALI/S & CAPITALI/ GR\PS MU/1 TO BE SURE1 BE 
TAK5 9TO CONSID]ATION1 BUT A REAL UND]/&+ ( ALL PH5OM5A CONNECT$ 
) ?IS PRESUPPOSES AN ANALYSIS ( ! DEVELOPM5TAL T5D5CIES ( AN 
AB/RACT TOTAL CAPITAL1 CONDITION$ BY ! LAW ( VALUE4 ,EV5 IF 9 REALITY ! 
LAW ( VALUE HAS TO FUNCTION BY WAY ( COMPETITION1 ?IS LATT] CAN EXPLA9 
NO?+ FUNDAM5TAL1 BUT IS ITSELF 9 NE$ ( EXPLANATION2 & ?IS IS 
FURNI%$ BY ! VALUE CONCEPT4 ,COMPETITION IS NOT A KEY TO ?AT UND]/&+1 
& 9 FACT NO EXPLANATION ( CAPITALISM IS POSSIBLE FROM ! PO9T ( VIEW ( 
! 9DIVIDUAL CAPITALI/4 

,:ILE ,M>X />T$ \T ) ! 9VE/IGATION ( A S+LE COMMODITY & HAD 
ALREADY DISCOV]$ 9 ITS TW(OLD VALUE =M ! :OLE SECRET ( ! GR&EUR 
& MIS]Y ( CAPITALISM1 ! ,BROOK+S ,9/ITUTION USES ANO!R ME?OD4 ,IT 
ADDS UP ! SUM TOTAL ( ,AM]ICA'S CAPACITY TO PRODUCE & CONSUME1 
9VE/IGATES ! =MATION ( ITS CAPITAL 9 PHYSICAL AS WELL AS 9 MONET>Y 
T]MS1 9 SO F> AS IT WAS F\ND POSSIBLE1 9 ORD] TO DET]M9E 0:E!R 
! EXI/+ ME?OD ( DI/RIBUT+ ! NATIONAL 9COME T5DS TO EVOKE FROM \R 
PRODUCTIVE RES\RCES ! GREATE/ FL[ ( GOODS & S]VICES ( :I* !Y >E 
CAPABLE4 ,OR IF C]TA9 ( \R PRACTICES 9 ! DI/RIBUTION ( WEAL? 9TRODUCE 
MALADJU/M5TS 9TO ! PRODUCTIVE SY/EM :I* T5DS TO 9T]F]E ) ITS 
MO/ SUCCESSFUL FUNCTION+80 ,NOT ONLY H]E1 :]E ,M>X />TS ) ! 
CELL =M ( CAPITALISM & ! ,BROOK+S ,9/ITUTION ) ! SUM TOTAL ( 
ECONOMIC CAPACITIES1 DOES ! ,BROOK+S ME?OD ( 9VE/IGATION DIFF] FROM 
,M>X'S4 ,BUT :]E ! LATT] /UDIES ! DET]M9+ SPH]E ( 
PRODUCTION 9 ORD] TO EXPLA9 ! CAPITALI/ MODE ( DI/RIBUTION1 
! ,BROOK+S 9VE/IGATION TRIES TO F9D \T :E!R ! LATT] 9T]F]ES 
) ! FULL DEVELOPM5T ( ! PRODUCTIVE POSSIBILITIES4 ,NEV]!LESS1 BY 
FOLL[+ ,M>X'S ME?OD & APPLY+ IT TO ! ACTUALITIES ( PRES5T-DAY 
CAPITALISM1 WE >RIVE AT CONCLUSIONS QUITE SIMIL> TO ?OSE PRES5T$ BY ! 
,BROOK+S ,9/ITUTION4 ,& ALSO1 ANY ATTEMPT TO GET AT ! UND]LY+ CAUSES ( 
! SYMPTOMS REVEAL$ 9 ! ,BROOK+S REPORT W\LD LEAD US F9ALLY TO ! 
VALUE-*>ACT] ( CAPITALI/ PRODUCTION4 ,= !SE REASONS - AS WE %ALL SEE 
LAT] - AL?\< ! ,BROOK+S 9VE/IGATION DOES NOT CONCLUDE ) A RECOGNITION 
( ! CONTRADICTIONS 9VOLV$ 9 VALUE PRODUCTION1 ITS PROPOSALS & 
PR$ICTIONS >E ESS5TIALLY ! SAME AS ?OSE ,M>X HAD >RIV$ AT 9 HIS [N 
WAY1 ?AT IS1 9 SO F> AS !Y DEAL ) CAPITALI/ NECESSITIES4 

,! VALUE CONCEPT IMPLIES A DI/9CTION BETWE5 ! PHYSICAL 7NATURAL7 & 
! M>KET =M ( WEAL?4 ,! ,BROOK+S 9VE/IGATION ALSO MAKES ?IS 
DI/9CTION1 AL?\< ) LESS CONSI/5CY & ) AN 9ADEQUATE RECOGNITION 
( ITS IMPORTANCE4 ,?US1 9 ,9COME & ,ECONOMIC ,PROGRESS ,M\LTON 
WRITES ?AT 0! LEVEL ( CONSUMPTION A*IEV$ BY ! PEOPLE IS GOV]N$ 
9 ! LA/ ANALYSIS BY ! VOLUME ( GOODS & S]VICES FL[+ FROM 
PRODUCTIVE S\RCES 9TO CONSUMPTIVE *ANNELS40 ,TO ,M>X ALSO !RE LIES AT 
! BASE ( ALL REAL ECONOMIC UND]/&+ ! CONCRETIZ+ ( ALL PH5OM5A4 
,ALL SOCIO-ECONOMIC PROBLEMS HAVE TO BE R$UC$ TO !IR REAL1 MAT]IAL =M4 
,= 9 ! LA/ ANALYSIS1 SAYS ,M>X1 0ANY NATION :I* CEASES TO WORK1 IF 
ONLY = A FEW WEEKS1 W\LD DIE ( HUNG]4 ,! MASSES ( PRODUCTS1 
CORRESPOND+ TO ! DIFF]5T NE$S DEM& DIFF]5T & QUANTITATIVELY 
DET]M9ATE MASSES ( SOCIAL LABOR40 ,?IS SITUATION1 DICTAT$ BY NATURAL 
LAWS1 ,M>X (F]S AS PRO( ( ! CORRECTNESS ( HIS VALUE CONCEPT & ITS 
USEFULNESS AS AN EXPLANATION ( ! CAPITALI/ ME*ANISM4 ,=1 HE GOES ON TO 
SAY1 ! =M 09 :I* ?IS PROPORTIONAL DIVISION ( LABOR OP]ATES1 9 
A /ATE ( SOCIETY 9 :I* ! CONNECTION ( SOCIAL LABOR ASS]TS ITSELF AS 
PRIVATE EX*ANGE ( ! 9DIVIDUAL PRODUCTS ( LABOR1 IS NO?+ O!R 
?AN ! EX*ANGE VALUE ( !SE PRODUCTS40 ,TO BE SURE1 ! 
,BROOK+S ,9/ITUTION DOES NOT CONCEIVE SU* A PRES5TATION ( ! PROBLEM1 BUT 
ITS CONCLUSIONS1 >RIV$ AT FROM A CONSID]ATION ( ! PHYSICAL SIDE ( 
PRODUCTION & CONSUMPTION1 >E V]Y SIMIL> TO ?OSE :I* FL[ FROM AN 
9VE/IGATION ( ! PROBLEM FROM ! VIEWPO9T ( USE-VALUE 9 ! ,M>XIAN 
S5SE4 ,IT IS TRUE ?AT 9 CAPITALI/ SOCIETY1 IT IS NOT ! PRODUCTION ( 
USE-VALUES1 BUT ( PR(IT1 :I* CON/ITUTES ! DET]M9+ FACTOR4 ,BUT IT IS 
PRECISELY ! 9CAPACITY = ECONOMIC ACTIVITY 9 T]MS ( PRODUCTION = USE 
:I* BR+S AB\T ! EXI/+ SOCIAL DI/RESS4 ,IT IS ONLY BY LOOK+ AT 
PRODUCTION 9 ! NUDE1 BY /RIPP+ IT ( ITS CAPITAL *>ACT]1 ?AT AN 
UND]/&+ ( PRES5T-DAY SOCIETY IS POSSIBLE4 

,I,I,I 

,A COMMODITY HAS BO? USE-VALUE & EX*ANGE-VALUE4 ,! FIR/ IS ( 9T]E/ 
TO ! BUY]-CONSUM]1 ! SECOND TO ! PRODUC]-SELL]4 ,ONE ASPECT EXPRESSES1 
SO TO SPEAK1 ! NATURAL PROP]TY A COMMODITY1 :ILE ! O!R IMPLIES A 
SPECIFIC SOCIAL RELATION%IP4 ,A RECOGNITION ( ! TW(OLD *>ACT] ( 
COMMODITIES IS 9DISP5SABLE TO AN UND]/&+ ( CAPITALI/ ECONOMY1 EV5 
?\< 9 REALITY1 UND] VALUE PRODUCTION1 ! TWO =MS ( VALUE >E 
COMPLETELY FUZ$4 ,! ROAD TO =TUNE AS WELL AS ! ROAD TO RU9 HAS ITS B$ 
9 ?IS TW(OLD *>ACT] EXI/+ 9 COMMODITY VALUES4 ,FROM ! VIEWPO9T ( 
USE-VALUE-IF WE MAY CONT9UE TO USE ?AT T]M-HUMAN LABOR CREATES CONSUMPTION 
GOODS1 ) ! 9/RUM5TS ( PRODUCTION4 ,FROM A VALUE PO9T ( VIEW1 H[EV]1 
PRODUCTION MU/ BE PR(ITABLE 9 ORD] TO BE POSSIBLE4 ,A SMALL] CAPITAL MU/ 
BECOME A GREAT] CAPITAL2 A SURPLUS VALUE MU/ BE CREAT$ BY ! WORK]S = 
! [N]S ( ! EXI/+ CAPITAL4 ,?IS SURPLUS VALUE1 EXPRESS$ 9 PHYSICAL 
T]MS1 IS NO?+ BUT UNPAID LABOR P[]4 

,! APPROPRIATION ( LABOR P[] BY ! [N]S ( CAPITAL IS POSSIBLE 
BECAUSE LABOR P[]1 A COMMODITY = SALE LIKE ANY O!R COMMODITY1 HAS BO? 
USE & EX*ANGE-VALUE4 ,! WORK]'S WAGES1 ! M>KET-PRICE EXPRESSION 
( ! VALUE ( LABOR P[] - DET]M9$ 9 ! LA/ 9/ANCE BY ! LABOR TIME 
REQUIR$ = PRODUC+ ! COMMODITIES NE$$ TO KEEP ! LABOR] FIT = WORK 
& ABLE TO REPRODUCE HIMSELF - >E ITS EX*ANGE VALUE4 ,BUT ! 
CAPITALI/1 9 BUY+ ?AT LABOR P[]1 GETS ITS USE VALUE4 

,! WORK] IS7 ABLE TO PRODUCE MORE ?AN HE NE$S = EXI/5CE3 ?AT IS 
:AT MAKES CAPITALISM POSSIBLE4 ,IT IS ONLY ! SURPLUS VALUE1 ?AT IS1 UNPAID 
LABOR P[]1 :I* 5ABLES EXPANSION ( CAPITAL4 ,! MASS ( ! APPROPRIAT$ 
SURPLUS VALUE DET]M9ES ! RATE ( CAPITAL EXPANSION1 OR ACCUMULATION4 ,WE MAY 
BE P>DON$ = RE/AT+ !SE SIMPLE ?+S1 AS !Y >E ESS5TIAL TO ANY 
UND]/&+ ( ! DYNAMICS ( CAPITALISM1 S9CE IT IS ONLY 9 ! TW(OLD 
*>ACT] ( ! COMMODITY LABOR P[] ?AT ! SECRET ( CAPITALI/ PROGRESS1 
& ALSO ( CAPITALI/ DECL9E1 CAN BE F\ND4 ,! GREAT] ! DIFF]5CE 
BETWE5 ! TOTAL SOCIAL EX*ANGE VALUE ( LABOR P[]1 ?AT IS1 ! TOTAL WAGE 
FUND1 & ! TOTAL SOCIAL USE-VALUE ( LABOR P[]1 ?AT IS1 ! SUM TOTAL ( 
ALL PRODUCTION1 ! FA/] CAPITALISM CAN ACCUMULATE4 ,PROSP]ITY IS ONLY 
ANO!R WORD = AN ACCEL]AT$ ACCUMULATION2 ! SMALL] ! %>E ( SOCIAL 
PRODUCTION FALL+ TO ! WORK]S1 ! GREAT] WILL BE CAPITALI/ PROSP]ITY1 
! MORE CAN BE 0SAV$0 9 ! =M ( ADDITIONAL CAPITAL4 
,PROGRESSIVE CAPITALISM MEANT ?AT ! PUR*AS+ P[] ( ! WORK]S 
RELATIVE TO ! 9CREAS+ PRODUCTIVITY FELL CONT9U\SLY4 ,ALL 
/ATI/ICS COMP>+ ! RISE ( WAGES ) ! GR[? ( PRODUCTIVITY PROVE 
?IS FACT UNMI/AKABLY4 ,EV5 ?\< ! WAGES ( ! ,AM]ICAN WORK]S W]E 
HI<] 9 #ai ?AN 9 #a#h#e1 !IR %>E ( ! TOTAL SOCIAL PRODUCT 9 #ai 
WAS MU* SMALL] ?AN 9 #a#h#e4 

,! TW(OLD *>ACT] ( COMMODITIES IMPLIES A CONTRADICTION4 ,S9CE ! 
VALUE ( COMMODITIES IS DET]M9$ 9 ! LA/ ANALYSIS BY ! SOCIAL AV]AGE 
LABOR TIME NECESS>Y = !IR PRODUCTION1 AS ?IS PRODUCTION TIME IS R$UC$ 
! VALUE WILL BE L[]$4 ,MORE USE-VALUES WILL BE PRODUC$ 9 A GIV5 P]IOD 
( TIME1 BUT ! EX*ANGE VALUE ( EA* COMMODITY UNIT DROPS4 ,AS LONG AS ! 
PRODUCTIVITY ( LABOR RISES FA/] ?AN ! VALUE ( ! COMMODITIES DECL9ES1 
! DECREASE 9 ! EX*ANGE VALUE 9 ! 9DIVIDUAL COMMODITY IS COMP5SAT$ 
BY AN 9CREASE1 9 ! NUMB] ( ! COMMODITIES SOLD4 ,?IS CONTRADICTORY 
MOVEM5T EXPLA9S ! RISE ( CAPITALISM AS WELL AS :Y ! WORK]S C\LD GET 
HI<] WAGES & AT ! SAME TIME C\LD BE MORE EXPLOIT$4 ,AN EV] GREAT] P>T 
( ! LABOR TIME FELL TO ! CAPITALI/S1 ?US P]MITT+ AN 9CREASE 9 
PRODUCTIVITY BY TE*NOLOGICAL DEVELOPM5T :I* %ORT5$ ! LABOR TIME 
NECESS>Y = ! PRODUCTION & REPRODUCTION ( LABOR P[]1 9 SPITE ( AN 
9CREASE 9 ! MASS ( ACTUAL COMMODITIES :I* ! WORK]S REALIZ$ 9 ! 
=M ( HI<] WAGES4 ,! PORTION ( ! PRODUCT FALL+ TO ! WORK]S 
9CREAS$1 BUT IT 9CREAS$ MORE SL[LY ?AN !IR ACTUAL \TPUT4 ,)\T ?IS 
9CREASE 9 EXPLOITATION1 ?AT IS1 AN EV] GREAT] MASS ( SURPLUS VALUE 
REALIZ$ FROM A GIV5 NUMB] ( WORK]S1 MAK+ POSSIBLE ! EXPLOITATION ( 
ADDITIONAL WORK]S1 CAPITALISM C\LD NOT HAVE DRIV5 =W>D4 ,BUT ?IS IT DID1 
EMBODY+ 9 ITSELF ! PRODUCTION ( AN EV] GREAT] NUMB] ( USE VALUES1 
EXPLOIT+ AN EV] GR[+ NUMB] ( WAGE SLAVES1 APPROPRIAT+ MORE & /ILL 
MORE SURPLUS VALUE1 :I*1 /AT$ 9 A SIMPLE WAY1 MEANT ! DEVELOPM5T ( ! 
CAPITALI/ WORLD M>KET4 ,TO UND]/& CAPITALISM PROP]LY MEANS TO RECOGNIZE 
9 IT A WORLD PROBLEM4 ,TO ,M>XISM1 CAPITALI/ ECONOMY IS 9T]NATIONAL1 & ! 
,BROOK+S ,9/ITUTION1 9 CONTRADI/9CTION TO ALL ! NONS5SE LATELY 
PROCLAIM$ BY ! AUT>*IC ILLUSIONI/S ( A CAPITALI/ PLANN$ ECONOMY1 IS 
RI<T 9 /AT+ ?AT 0! PROBLEM ( ! DI/RIBUTION ( 9COME 9 
RELATION TO ECONOMIC PROGRESS IS A WORLD PROBLEM40 

,I,V 

,ACCORD+ TO ! ,BROOK+S REPORT1 CAPITAL 0AT ONE & ! SAME TIME 
9CREASES \R \TPUT ( MAT]IAL MEANS ( HUMAN SATISFACTION & ALSO DISPLACES 
LABOR]S :O ONLY ?R\< !IR EMPLOYM5T GA9 ! RI<T TO CLAIM A %>E ( 
?IS EXP&$ PRODUCT4 ,UNLESS !SE WORK]S >E REABSORB$ AT SOME O!R PO9T 
:]E EXPANSION CAN BE EFFECT$1 !IR PUR*AS+ P[] IS CURTAIL$ OR EV5 
COMPLETELY DE/ROY$1 & ! M>KET = CONSUMPTION GOODS IS 
CONTRACT$40 ,?IS SITUATION HAS BR\<T AB\T ! >GUM5TS CONC]N+ 
0OV] PRODUCTION0 & 0EXCESS-CAPACITY0 & ALSO ! 
POPUL> !ORIES2 TO ! EFFECT ?AT AN 9CREASE 9 ! PUR*AS+ P[] ( ! 
MASSES1 OR A SL[+ D[N ( TE*NOLOGICAL PROGRESS1 ?AT IS1 A TOTAL REV]SAL 
( ! PREVI\S TR5DS ( CAPITALISM1 WILL DO AWAY ) ! PRES5T 
DIFFICULTIES4 ,SUGGE/IONS >E BE+ MADE = MORE OR LESS CONSCI\S 9TRUSIONS 
9TO ! M>KET RELATIONS2 A CONTROLL$ CAPITALISM IS PROPOS$2 & V>I\S 
S*EMES HAVE BE5 DEVIS$ = ?IS PURPOSE1 & SOME ( !M EV5 TRI$ \T1 
DEAL+ ) MONEY & CR$IT MANIPULATIONS1 RE/RICTION ( PRODUCTION & 
>TIFICIAL PRICE CONTROL4 ,ALL CAPITALI/ PROBLEMS FROM SU* PO9TS ( VIEW >E 
LOOK$ = 9 ! SPH]E ( DI/RIBUTION1 :I* IS ASSUM$ TO BE \T ( BALANCE 
) PRODUCTION4 ,BUT ALSO TO ?OSE1 WRITES ,M\LTON1 0:O W\LD UNLEA% 
\R PRODUCTIVE P[] & ACCEL]ATE \R ECONOMIC PROGRESS1 ! DI/RIBUTION ( 
WEAL? & 9COME HAS BECOME ! C5TRAL CONC]N20 & ?IS IS ! REASON 
= ! 9VE/IGATION ( :I* ! RESULTS >E COMPIL$ 9 ! S]IES ON 
,9COME & ,ECONOMIC ,PROGRESS4 

,9 MEASUR+ FIR/ ! PRODUCTIVE CAPACITIES ( ,AM]ICAN ECONOMY1 ! 
,BROOK+S HAS NOT BAS$ ITSELF1 AS SO (T5 IS DONE1 ON AN EVALUATION ( ! 
PRODUCTIVE APP>ATUS ALONE1 BUT ALSO ON LABOR P[]1 9 :I* IT RECOGNIZES ! 
ONLY WEAL?-CREAT+ =CE2 = 0! MAXIMUM = MANY L9ES ( PRODUCTION 
IS DET]M9$ BY ! TOTAL NUMB] ( WORK]S ( A P>TICUL> SKILL :O >E 
AVAILABLE1 & ! TOTAL OP]ATIONS ( \R ECONOMIC SY/EM AS A :OLE CANNOT 
EXCE$ ! TOTAL LABOR =CE AVAILABLE AT ANY GIV5 TIME ( PEAK DEM&40 
,?IS PO9T ( VIEW IS OBVI\SLY CORRECT1 NOT)/&+ ! FACT ( AN EV] 
EXI/+ >MY ( UNEMPLOY$1 ?IS LATT] BE+ ONE ( ! NECESSITIES ( 
CAPITALISM AS WELL AS ONE ( ITS MANY CALAMITIES4 ,! ,BROOK+S SUMM>Y 9 
RELATION TO ! TOTAL ( PRODUCTIVE CAPACITIES E/IMATES ?AT 0! 
ECONOMIC MA*9E OP]ATES AT ! BE/ >\ND #h P] ?AT ( CAPACITY & AT ! 
WOR/ AT LITTLE MORE ?AN #e P] C5T4 ,AS A G5]AL AV]AGE1 OV] ! 
F\RTE5-YE> P]IOD FROM #aibb ?R\< #a#i#c#e1 ! PRODUCTIVE ME*ANISM BY MEANS 
( :I* \R WANTS >E SUPPLI$ MAY BE SAID TO HAVE RUN AT LITTLE MORE ?AN 
TWO-?IRDS EFFICI5CY40 ,! NEXT QUE/ION RAIS$ IS AS TO :Y A #a P] 
C5T EFFICI5CY WAS NOT POSSIBLE4 ,REJECT$ AS AN EXPLANATION = ?IS 
%ORTCOM+ >E POSSIBLE DIFFICULTIES )9 ! PRODUCTIVE ME*ANISM ITSELF1 
AS WELL AS DIFFICULTIES RELAT$ TO CONSUMPTIVE REQUIREM5TS4 ,=1 AS ,M\LTON 
/ATES 9 ,9COME & ,ECONOMIC ,PROGRESS1 0! WANTS ( PEOPLE 
W]E F> FROM SATISFI$ DUR+ ! P]IOD ( \R HI<E/ ECONOMIC A*IEVEM5T4 
,! VALUE ( ! TOTAL NATIONAL PRODUCTION ( GOODS & S]VICES 9 #a#i#b#i1 IF 
DIVID$ EQUALLY AMONG ! 5TIRE POPULATION1 W\LD HAVE GIV5 TO EA* P]SON 
APPROXIMATELY @s#f#f#e40 ,A REASONABLE /&>D ( LIV+ = ALL FAMILIES 
W\LD HAVE NECESSITAT$ AN 9CREASE 9 PRODUCTION OV] #aibi LEVELS ( 
APPROXIMATELY #ge P] C5T1 BUT EV5 ! FULL UTILIZATION ( ! !N EXI/+ 
PRODUCTIVE CAPACITY W\LD HAVE P]MITT$ NO MORE ?AN A #b P] C5T 9CREASE4 
,UND] SU* CONDITIONS1 QUE/IONS ( OV]-PRODUCTION CANNOT >ISE4 

,COMP>$ ) CORRESPOND+ BUT MORE POPUL> /ATEM5TS ( ! TE*NOCRATIC 
ECONOMIC S5SATIONALI/S1 ?IS SAD SITUATION SEEMS ALMO/ UNREALI/IC4 ,BUT NOT 
SO FROM A ,M>XI/ PO9T ( VIEW4 ,NO O!R SITUATION IS CONCEIVABLE UND] 
CAPITALISM4 ,AS ,M>X RELATES3 0,IT IS NOT A FACT ?AT TOO MANY NECESSITIES 
( LIFE >E PRODUC$ 9 PROPORTION TO ! EXI/+ POPULATION4 ,! REV]SE IS 
TRUE4 ,NOT 5\< IS PRODUC$ TO SATISFY ! WANTS ( ! GREAT MASS DEC5TLY 
& HUMANELY4 ,IT IS NOT A FACT ?AT TOO MANY MEANS ( PRODUCTION >E PRODUC$ 
TO EMPLOY ! ABLE-BODI$ PORTION ( ! POPULATION4 ,! REV]SE IS ! CASE4 
,9 ! FIR/ PLACE1 TOO L>GE A PORTION ( ! POPULATION IS PRODUC$ 
CONSI/+ ( PEOPLE :O >E REALLY NOT CAPABLE ( WORK+1 :O >E DEP5D5T 
?R\< =CE ( CIRCUM/ANCE ON ! EXPLOITATION ( ! LABOR ( O!RS1 OR 
COMPELL$ TO P]=M C]TA9 K9DS ( LABOR :I* CAN BE DIGNIFI$ ) ?IS 
NAME ONLY UND] A MIS]ABLE MODE ( PRODUCTION4 ,9 ! SECOND PLACE1 NOT 5\< 
MEANS ( PRODUCTION >E PRODUC$ TO P]MIT ! EMPLOYM5T ( ! 5TIRE 
ABLE-BODI$ POPULATION UND] ! MO/ PRODUCTIVE CONDITIONS1 SO ?AT !IR 
ABSOLUTE LABOR TIME W\LD BE %ORT5$ BY ! MASS & EFFECTIV5ESS ( ! 
CON/ANT CAPITAL EMPLOY$ DUR+ WORK+ H\RS40 ,ACCORD+ TO ,M>X1 
CAPITALISM CAN NEV] REA* AN ECONOMIC /AGE ( G5]AL ABUNDANCE2 AT A C]TA9 
PO9T 9 ITS DEVELOPM5T1 IT BECOMES A H9DRANCE TO ! FUR!R EXPANSION ( 
! PRODUCTIVE =CES ( SOCIETY4 ,! ,BROOK+S REPORT IS A CONFIRMATION ( 
?IS !SIS4 ,CAPITALISM WILL NEV] BE ABLE TO DO AWAY ) RE/RICTION UPON 
CONSUMPTION4 ,EV5 ?\< TO ! SUP]FICIAL OBS]V] A CURTAILM5T ( 
PRODUCTION ) ITS ACCOMPANY+ LACK ( GOODS & ITS %ORTAGE ( WORK]S MAY 
APPE> P>ADOXICALLY AS OV]-PRODUCTION & EXCESS POPULATION1 ANY REAL 
9VE/IGATION ( ! FACTS WILL REVEAL ! TRUE SITUATION & ! ACCURACY ( 
,M>X'S DIAGNOSIS4 

,V 

,NOT ! ACTUAL PRODUCTIVE CAPACITY OR ! CONSUMPTIVE REQUIREM5TS CAN BE 
MADE RESPONSIBLE = ! UNSATISFACTORY FUNCTION+ ( ! CAPITALI/ 
ME*ANISM4 ,ACCORD+ TO ! ,BROOK+S ,9/ITUTION1 ! MALADJU/M5T HAS ITS 
CAUSE 9 A DI/RIBUTION ( 9COME :I* RE/RICTS ! M>KET = 
CONSUM]S' GOODS4 ,TOO MU* IS 0SAV$10 DUE TO ! 
CONC5TRATION ( 9COME2 TOO LITTLE IS SP5T BY ! GREAT MASS ( ! 
POPULATION4 ,?IS FAMILI> >GUM5T IS ALSO /AT$ BY ,M>XISM4 
0,ACCUMULATE6 ,ACCUMULATE6 ,?AT IS ,MOSES & ALL ! PROPHETS60 
BEG9S A P>AGRAPH 9 ,CAPITAL4 ,:AT IS 9T]E/+ 9 ! 
,BROOK+S REPORT 9 RELATION TO ?IS QUE/ION1 H[EV]1 IS ! PROPOS$ 
SOLUTION1 :I* DIFF]S FROM MO/ ( ! PANACEAS DEVELOP$ BY ! POPUL> 
UND]-CONSUMPTION !ORIES4 

,!RE IS NO ACTUAL OV]-PRODUCTION ( COMMODITIES4 0,PRODUCTION HAS NOT 
YE> 9 & YE> \T10 9 ,M\LTON'S OP9ION1 0BE5 9 EXCESS 
( ACTUAL CONSUMPTION1 NOTABLY 9 ! P]IOD ( ! TW5TIES :5 PRODUCTION 
WAS AT ITS PEAK4 ,!RE WAS NO L>GE ACCUMULATION ( UNSOLD 9V5TORIES1 BUT 
RA!R A NOTORI\S GR[? ( H&-TO-M\? BUY+ ) ACCOMPANY+ L[ /OCKS 
( M]*&ISE4 ,! PH5OM5ON :I* IS CALL$ OV]-PRODUCTION MADE ITS 
APPE>ANCE1 AS IT ORD9>ILY DOES1 *IEFLY 9 ! 5SU+ DEPRESSION :5 
CONSUM]S' PUR*ASE FELL FA/] ?AN PRODUCTIVE OP]ATIONS C\LD BE 
CURTAIL$40 ,M>XISM ALSO CONSID]S ! OV]-PRODUCTION ( COMMODITIES AS 
A RESULT1 NOT AS A CAUSE ( ! CRISIS TYPICAL ( CAPITALI/ PRODUCTION4 ,IT IS 
ONLY 9 RELATION TO ! UNUTILIZ$ PRODUCTIVE CAPACITIES ?AT ! ,BROOK+S 
,9/ITUTION ADDUCES ! UN=TUNATE ME*ANISM = DI/RIBUT+ ! NATIONAL 
9COME1 A ME*ANISM :I* RE/RICTS CONSUMPTION & SO H9D]S ! FULL 
EFFICI5CY ( ! PRODUCTIVE APP>ATUS4 ,LOOK+ AT CAPITALISM FROM A PO9T ( 
VIEW TO :I* IT IS =EIGN1 ?AT IS1 N\RI%+ ! ILLUSION ?AT ! PRES5T 
ECONOMIC SY/EM IS DESIGN$ TO SATISFY HUMAN NE$S1 ,M\LTON ATTEMPTS TO EXPLA9 
! PROCESS ( CAPITAL =MATION AS BAS$ ON ! GR[? ( ! CONSUMPTIVE 
DEM&S4 ,BUT HE IS UNABLE TO BR+ =W>D CONV9C+ PRO( = ?IS OP9ION4 
,HE SAYS ?AT 0AN EXPANSION ( PLANT & EQUIPM5T WILL NOT TAKE PLACE 9 
ANY L>GE WAY :5 CONSUMPTIVE DEM& IS DECL9+40 ,9 REALITY1 H[EV]1 
EXPANSION ( PLANT & EQUIPM5T TOOK PLACE 9 SPITE & BECAUSE ( ! FACT 
?AT CONSUMPTIVE DEM&S W]E DECL9+ RELATIVELY TO ?IS EXPANSION4 
,ACCUMULATION IS NOT BAS$ ON ! WANTS ( ! PEOPLE1 BUT ON ! NE$S = 
PR(IT4 ,?IS FACT IS SOME:AT BECL\D$ BY ! CIRCUM/ANCE ?AT DUR+ ! 
UPSW+1 P]IOD ( CAPITALISM BO? ! PRODUCTIVE APP>ATUS & ALSO ! 
CONSUMPTION FUND W]E GR[+4 ,BUT ! TEMPO 9 ! GR[? ( ! =M] WAS 
FA/] ?AN 9 ?AT ( ! LATT]4 ,AS REG>DS CONSUMPTION1 ! GR[? WAS 
SIMIL> TO ?AT 9 ! NUMB] ( WORK]S1 :I* LIKEWISE GREW ) ! GR[? 
( FIX$ CAPITAL1 BUT SL[] ?AN ! LATT]4 ,9 NO O!R WAY W\LD CAPITALI/ 
PROGRESS HAVE BE5 POSSIBLE4 ,! CONSUMPTIVE DEM&S DO NOT LEAD BUT FOLL[ ! 
ACCUMULATION ( CAPITAL4 ,! ,M>XI/ CAN AGREE ) ,M\LTON'S /ATEM5T 
?AT 0AVAILABLE EVID5CE %[$ CONCLUSIVELY ?AT NEW CAPITAL IS 
CON/RUCT$ ON ANY SIGNIFICANT SCALE ONLY DUR+ P]IODS :5 CONSUMPTION IS 
ALSO EXP&+4 ,9 P]IODS ( DECL9+ CONSUMPTION ! CON/RUCTION ( NEW 
CAPITAL ALSO DECREASES %>PLY40 ,BUT FROM ?IS IT DOES NOT NECESS>ILY 
FOLL[ ?AT 0CONSUMPTION IS ( A CONTROLL+ IMPORTANCE10 ?AT 
0! RATE ( GR[? ( NEW PLANT & EQUIPM5T 9 A P]IOD ( 9DU/RIAL 
EXPANSION IS ADJU/$ TO ! RATE ( 9CREASE ( CONSUMPTIVE DEM& RA!R ?AN 
TO ! VOLUME ( SAV+S AVAILABLE = 9VE/M5T PURPOSES10 AS ,M\LTON 
MA9TA9S 9 ,9COME & ,ECONOMIC ,PROGRESS4 ,IT WAS ! O!R WAY 
R\ND2 AN 9CREASE 9 NEW CAPITAL MEANT AN 9CREASE 9 CONSUMPTIVE DEM&S 
ALSO1 & A DECL9E 9 ! CON/RUCTION ( NEW CAPITAL R$UC$ ! CONSUMPTIVE 
DEM&S4 

,M\LTON'S PO9T ( VIEW1 :I* IS UNACCEPTABLE TO ! ,M>XI/1 RESULTS 
FROM A MISUND]/&+ ( ! *>ACT] ( CAPITAL & H5CE A FAILURE TO GET 
AT ! REAL PROBLEM1 ?AT ( ! OV]PRODUCTION ( CAPITAL4 ,9COME & 
,ECONOMIC ,PROGRESS /ATES 0?AT BETWE5 #aibb & #aibi ! VOLUME ( 
FUNDS R5D]$ AVAILABLE = 9VE/M5T PURPOSES WAS 9CREAS+ RAPIDLY1 BUT 
?AT ! VOLUME ( SECURITIES FLOAT$ = PURPOSE ( CON/RUCT+ NEW PLANT 
& EQUIPM5T REMA9$ PRACTICALLY UN*ANG$ 9 AM\NT FROM YE> TO YE>4 ,9 
#a#i#b#i1 ! VOLUME ( NEW SECURITIES ISSU$ = ! PURPOSE ( ACTUAL CAPITAL 
CON/RUCTION PLUS MORTGAGES WAS LESS ?AN #e BILLION1 :ILE ! VOLUME ( FUNDS 
SEEK+ 9VE/M5T WAS 9 ! NEI<BORHOOD ( #ae BILLION40 ,?IS 
SURPLUS 9 9VE/M5T MONEY IS1 H[EV]1 ACCORD+ TO ,M\LTON1 A 
0COMP>ATIVELY NEW PH5OM5ON 9 ! ,UNIT$ ,/ATES40 ,IF ?AT IS ! 
CASE1 !N ?IS 0NEW PH5OM5ON0 CANNOT BE US$ AS AN EXPLANATION 
( ! /ATEM5T ?AT 09DU/RIAL EXPANSION IS ADJU/$ TO ! RATE ( 
9CREASE ( CONSUMPTIVE DEM& RA!R ?AN TO ! VOLUME ( SAV+S AVAILABLE 
= 9VE/M5T PURPOSES10 A SITUATION :I* IS SUPPOS$ TO GIVE RISE TO A 
SURPLUS ( 9VE/M5T MONEY1 :5EV] ! CONSUMPTIVE DEM&S CANNOT BE 
EXT5D$ SUFFICI5TLY2 = ! CAPITALI/ DILEMMA ( TODAY IS ONLY AN 5L>G$ 
REPETITION ( PREVI\S DILEMMAS 9 :I* SU* A GREAT SURPLUS ( 9VE/M5T 
MONEY WAS NOT DISCOV]$4 ,! TREM5D\S SIZE ( ?IS SURPLUS IS A REC5T 
PH5OM5ON 9 ! CAPITALI/ DEVELOPM5T1 & = ! SAME REASON ?AT ! 
NUMB] ( WORK]S 9 RELATION TO ! EXI/+ CAPITAL DECREASES NO LONG] 
RELATIVELY1 BUT ABSOLUTELY1 A SITUATION :I* 9 ! ,UNIT$ ,/ATES SET 9 AB\T 
#a#i#b4 ,BO?1 A SURPLUS ( UNUSABLE CAPITAL & UNEMPLOY$ WORK]S1 >E ! 
RESULT ( ! OV]-PRODUCTION ( CAPITAL4 

,AN 9VE/IGATION ( ,9DU/RIAL ,PR(ITS 9 ! ,UNIT$ ,/ATES1 
UND]TAK5 BY ,PR(ESSOR ,R4 ,C4 ,EP/E9 & PUBLI%$ 9 #a#i#c#d1 /ATES CONC]N+ 
! RATES ( PR(IT ?AT 0! MO/ SURPRIS+ ?+1 ON ! :OLE WAS 
?AT NO GREAT OR SU/A9$ UPW>D TR5D *>ACT]IZES !M BETWE5 #aibb & 
#a#i#b#i40 ,?IS ]A HAS V]Y (T5 BE5 DUBB$ A 0PR(ITLESS 
PROSP]ITY10 & IT WAS 9 ?IS P]IOD ?AT ! SURPLUS M5TION$ BY 
,M\LTON WAS PIL$ UP4 ,?AT !RE WAS A SL[+ D[N 9 ! RATE ( 
EXPANSION IS %[N 9 ! ,BROOK+S ,=MATION ( ,CAPITAL4 ,! TWO 
FACTS >E 9T]RELAT$1 = TIMES ( GREAT PR(ITS >E TIMES ( GREAT CAPITAL 
EXPANSION1 & A DECL9E 9 PR(ITS IS ACCOMPANI$ BY A DECREASE 9 ! RATE ( 
ACCUMULATION4 ,! RATE ( PR(IT DET]M9ES ! TEMPO & EXT5T ( CAPITAL 
=MATION4 ,M\LTON HAS BE5 ABLE TO %[ ?AT 0! RATE ( PR(IT UPON 
CAPITAL 9VE/M5T 9 MANUFACTUR+ 9DU/RIES AS A :OLE %[$ A MOD]ATE 
UPW>D TR5D BETWE5 #aibb & #a#i#b#i40 ,?IS MOD]ATE UPW>D TR5D EXPLA9S 
! COMP>ATIVELY MOD]ATE RATE ( EXPANSION DUR+ !SE YE>S4 ,M\LTON 
T\*ES UPON ! REAL PROBLEM :5 HE SAYS ?AT 0! M]E FACT ?AT ! 
RATE ( PR(IT %[$ AN 9CREASE DUR+ !SE YE>S DOES NOT ( ITSELF %[ 
?AT ! VOLUME ( FUNDS AVAILABLE = ! EXPANSION ( PLANT & EQUIPM5T WAS 
ADEQUATE40 0,WE MU/ ASK10 HE GOES ON TO SAY1 IF !RE 
0W]E NOT EV5 HI<] RATES NECESS>Y 9 ORD] TO F9ANCE & ?US 
PROMOTE A MORE RAPID ECONOMIC PROGRESS80 ,C]TA9LY1 ! RATE ( PR(IT 
ALONE EXPLA9S NO?+2 IT S]VES ONLY AS AN 9DEX ( ! MASS ( PR(IT 
UND]LY+ IT4 ,BUT ,M\LTON HAS NO REAL ANSW] TO ?IS QUE/ION2 HE M]ELY 
RE/ATES HIS ASSUMPTION 0?AT !RE WAS AVAILABLE 9 ! M>KETS 
?R\<\T ! P]IOD ( ! TW5TIES AN ABUNDANCE ( FUNDS = PURPOSES ( 
CAPITAL EXPANSION40 ,! MONEY SUPPLY WAS APP>5TLY 9 EXCESS ( ! 
REQUIREM5TS = PLANT EXPANSION1 BUT :AT >E ! REQUIREM5TS = 
FUR!R EXPANSION8 ,TO ?IS QUE/ION ,M\LTON HAS NO ANSW]1 & FUR!RMORE1 HE 
DOES NOT NE$ ONE1 S9CE TO HIM !SE REQUIREM5TS >E SET BY ! CONSUMPTIVE 
DEM&S1 AS IF CAPITALISM HAD NO O!R FUNCTION ?AN TO FILL ! BELLIES ( ! 
POPULATION4 

,NOT EV]Y AM\NT ( CAPITAL IS USABLE = FUR!R PR(ITABLE ACCUMULATION4 
,! NECESS>Y RATE = ?IS EXPANSION IS BAS$ ON ! PREVI\S RATE1 :I* HAS 
TO BE SURPASS$4 ,EA* P]IOD ( ACCUMULATION SETS A NEW RECORD 9 SO F> AS ITS 
TEMPO1 ITS RATE1 IS CONC]N$4 ,ANY O!R RATE IS UNPR(ITABLE & NO 9C5TIVE 
= ACCUMULATION4 ,! QUE/ION IS1 :E!R ! SURPLUS VALUE CAN BE 
SUFFICI5TLY 9CREAS$ TO MAKE FUR!R ADVANCE POSSIBLE4 ,! ANSW] IS NOT TO 
BE S\<T 9 ! SPH]E ( CIRCULATION1 BUT AS ALREADY /AT$1 IS B\ND UP ) 
! CONTRADICTIONS >IS+ 9 ! FIELD ( PRODUCTION4 ,& ! CONTRADICTION 
H]E 9VOLV$ IS ?AT ( OBTA9+ SUFFICI5T SURPLUS VALUE TO SATISFY ! 
NE$S = ACCUMULATION )\T IMPAIR+ ! VALUE ( LABOR P[] OR R$UC+ 
! CONSUMPTIVE REQUIREM5TS ( ! CAPITALI/S4 ,CAN CAPITAL ALWAYS APPROPRIATE 
5\< SURPLUS VALUE1 REG>DLESS ( ITS [N SIZE1 TO MAKE ITSELF PROGRESSIVELY 
L>G]8 ,?IS1 & NO?+ ELSE1 IS ! REAL PROBLEM ( CAPITALISM4 

,! ,BROOK+S ,9/ITUTION HAS NOT SE5 ?IS PROBLEM1 & FALLS VICTIM TO A 
TRICK SITUATION >IS+ 9 A P>ADOXICAL SY/EM SU* AS CAPITALISM IS4 
,OBVI\SLY ! EXPANSION ( CAPITAL1 :I* MADE ! P]IODS ( PROSP]ITY 
POSSIBLE1 MEANT ! 5L>GEM5T ( ITS PRODUCTIVE APP>ATUS4 ,! GREAT] IT 
BECAME1 ! GREAT] ! NE$ = ADDITIONAL CAPITAL1 ?AT IS1 SURPLUS VALUE2 
S9CE ! AM\NT ( ! LATT] HAS TO BE ADEQUATE TO ! SIZE ATTA9$ BY ! 
EXI/+ PRODUCTIVE APP>ATUS1 :I* FROM A VALUE PO9T ( VIEW CAN ONLY 
TEMPOR>ILY BE R$UC$ BY WAY ( CRISIS & DEPRESSION4 ,EV5 IF ! AM\NT ( 
SURPLUS VALUE GR[S SIMULTANE\SLY ) ! PRODUCTIVE APP>ATUS1 ?IS V]Y 
GR[? IS CONV]T$ 9TO ITS OPPOSITE AFT] CAPITAL HAS REA*$ A C]TA9 
SIZE4 ,& ?IS BR+S US TO ! PROBLEM ( ! FALL+ RATE ( PR(IT1 :I* 
ACCOMPANIES ! PROCESS ( CAPITAL1 EXPANSION4 ,SURPLUS VALUE-?AT IS SURPLUS 
LABOR-IS DET]M9$ BY ! WAGE CAPITAL & ! RATE ( EXPLOITATION4 ,& ! 
RATE ( EXPLOITATION IS DET]M9$ BY ! DIFF]5CE BETWE5 :AT IS NECESS>Y 
TO 5ABLE ! WORK]S TO LIVE & :AT !Y ACTUALLY PRODUCE4 ,! MORE WORK]S 
& ! LESS !Y >E PAID 9 ! =M ( WAGES1 ! GREAT] ! SURPLUS VALUE4 
,BUT ! RATE ( PR(IT IS DET]M9$ BY ! SURPLUS VALUE 9 RELATION TO 
! TOTAL CAPITAL4 ,IF ! TOTAL CAPITAL 9CREASES FA/] ?AN ! PORTION 
9VE/$ 9 WAGES-AS IT DOES-!N ! RATE ( PR(IT MU/ DECL9E4 ,BUT IF ! 
PRODUCTIVITY ( LABOR 9CREASES FA/] ?AN ! RATE ( PR(IT FALLS1 DUE TO 
! MORE RAPID 9CREASE ( ! TOTAL CAPITAL ) RESPECT TO ! WAGE FUND1 
!N ! FALL 9 ! RATE ( PR(IT IS H>MLESS TO CAPITAL1 S9CE IT IS 
COMP5SAT$ BY AN 9CREASE 9 ! MASS ( PR(IT4 ,?IS S\NDS COMPLICAT$1 BUT 
IT ISN'T2 ! COMPLICATION IS ONLY ! CONSEQU5CE ( ! CONTRADICTION 
9VOLV$ 9 ! LAW ( VALUE1 :I* MEANS A DECREASE ( EX*ANGE VALUE 
FOLL[+ AN 9CREASE 9 USE VALUE4 ,EV]YONE KN[S1 & ! ,BROOK+S REPORT 
PROVES IT1 ?AT CAPITAL 9VE/$ 9 MEANS ( PRODUCTION-OR1 TO USE ANO!R 
T]M1 FIX$ CAPITAL-HAS ?R\<\T CAPITALI/ HI/ORY GR[N FA/] ?AN ! 
P>T ( CAPITAL 9VE/$ 9 WAGES4 ,S9CE ONLY ! WAGE-FUND IS WEAL? 
CREAT+-A FACT :I* ALSO IS RECOGNIZ$ BY ! ,BROOK+S ,9/ITUTION-!N IF 
IT W]E NOT = AN EV] ACCEL]AT$ 9CREASE 9 ! PRODUCTIVITY ( LABOR1 
PR(ITS MU/ BECOME SMALL] 9 RELATION TO ! GR[? ( CAPITAL4 ,ONLY AN 
IMPASSE 9 EXPLOITATION1 OR A R$UCTION ( ! SIZE ( CAPITAL1 CAN RELIEVE ! 
SITUATION4 

,R$UC+ ! SIZE ( CAPITAL1 OR1 TO USE A ,M>XI/ T]M1 L[]+ ! 
ORGANIC COMPOSITION ( CAPITAL1 IS ONLY TEMPOR>ILY POSSIBLE2 ?IS IS A PROCESS 
9VOLV+ DEVALUATION & BANKRUPTCIES DUR+ ! CRISIS4 ,! DEPRESSION P]IOD 
WITNESSES ! ATTEMPTS TO SWIT* ?IS DE/RUCTIVE PHASE ( CAPITALISM OV] 9TO 
A NEW P]IOD ( ADVANCE4 ,?IS NEW PROSP]ITY1 S\<T DUR+ ! DEPRESSION1 
NECESSITATES A REORGANIZATION ( CAPITAL & AN 9CREASE 9 ITS PRODUCTIVITY1 
:I* MEANS ! REE/ABLI%M5T ( A SUFFICI5T PR(ITABILITY ON A L[] 
VALUE-PRICE LEVEL = ?OSE CAPITALS :I* HAVE PULL$ ?R\< ! CRISIS4 ,IF 
?IS IS POSSIBLE1 ADDITIONAL CAPITAL WILL BE 9VE/$1 AN ECONOMIC ACTIVITY 
SETS 9 :I* BY ITS [N MOM5TUM CONT9UES TO OP]ATE ON ?IS NEW VALUE-PRICE 
LEVEL BEYOND ! PO9T ( PR(ITABILITY1 & 5DS AGA91 BY REASON ( ?IS 
MOM5TUM1 9 A NEW CRA%4 ,! SMALL] ! MAGNITUDE ( ! TOTAL CAPITAL ! 
EASI] IT IS TO OV]COME ! CRISIS4 ,CONV]SELY1 ! GREAT] ! CAPITAL 9 
EXI/5CE ! MORE DIFFICULT IT IS TO REE/ABLI% PR(ITABLE CAPITAL 
ACCUMULATION1 S9CE IT BECOMES MORE & MORE DIFFICULT TO DRAW FROM ! SURPLUS 
VALUE CREAT$ ! FUNDS NE$$ = FUR!R EXPANSION1 BECAUSE ! MAGNITUDE ( 
!SE FUNDS IS DET]M9$ BY ! MAGNITUDE :I* CAPITAL HAS ALREADY ATTA9$1 
& S9CE ! EXPLOITATION ( A GIV5 NUMB] ( WORK]S HAS SOCIAL & NATURAL 
LIMITS4 ,ADDITIONAL WORK]S HAVE TO BE EXPLOIT$1 BUT TO MAKE ?IS POSSIBLE ON 
! BASIS ( ! HI< ORGANIC COMPOSITION ( CAPITAL ALREADY ATTA9$ MEANS A 
GIGANTIC MASS ( SURPLUS VALUE TO BE 9VE/$ 9 ADDITIONAL FIX$ CAPITAL4 ,WE 
REPEAT ?AT NOT EV]Y AM\NT ( CAPITAL SUFFICES = ?IS PURPOSE4 ,! #a 
BILLION M5TION$ BY ! ,BROOK+S ,9/ITUTION1 L>GE AS ?IS SUM IS1 MAY BE 
TOO SMALL = ! E/ABLI%M5T ( A PRODUCTIVE APP>ATUS CAPABLE ( EXPLOIT+ 
SU* AN ADDITIONAL MASS ( WORK]S AS W\LD BE NECESS>Y TO MAKE ?IS 
9VE/M5T PR(ITABLE & H5CE POSSIBLE4 ,UND] SU* CONDITIONS ?IS SURPLUS 
W\LD 9 REALITY REPRES5T A %ORTAGE ( CAPITAL2 & IT IS TO ?IS 
QUE/ION ?AT ! ,BROOK+S ,9/ITUTION %\LD DIRECT ITS FUR!R 
ATT5TION1 ! MORE SO BECAUSE1 AS WE %ALL PRES5TLY SEE1 9 ITS 
RECOMM5DATIONS IT PO9TS DIRECTLY TO ! UNAVOIDABLE NECESSITY ( A TREM5D\S 
5L>GEM5T2 ( ! PRODUCTIVE APP>ATUS & ( ! >MY ( LABOR4 

,9 A ,M>XI/ EXPLANATION ( ! PH5OM5ON1 ! #a BILLIONS REMA9$ IDLE 
BECAUSE !Y C\LD NOT BE 9VE/$ PR(ITABLY2 = SU* AN 9VE/M5T IT PROV$ 
TO BE TOO SMALL4 ,& SO ! RATE ( ACCUMULATION SL[$ D[N1 ! ABSOLUTE 
NUMB] ( WORK]S DECREAS$ AS PRODUCTIVITY WAS FUR!R 9CREAS$ )\T AN 
ACCOMPANY+ SUFFICI5T CAPITAL EXPANSION4 ,! CONTRADICTION BETWE5 PR(IT 
PRODUCTION & NE$ = ACCUMULATION WAS TOO GREAT4 ,A RELATIVE /AGNATION 5D$ 
9 AN ABSOLUTE /AGNATION1 ?AT IS1 9 CRISIS & DEPRESSION4 ,TO OV]COME ?IS 
SITUATION & P]MIT ! 9VE/M5T ( NEW PR(IT-CREAT+ CAPITAL ! SURPLUS 
VALUE HAD TO BE 9CREAS$4 ,!RE WAS NO O!R WAY 9 ! PA/1 !RE IS NO 
O!R WAY AT ! PRES5T TIME2 ?\< IT IS ALREADY QUE/IONABLE :E!R ?IS 
WAY IS /ILL OP5 9 VIEW ( ! T]RIFIC NE$ ( SURPLUS VALUE = PURPOSES ( 
ACCUMULATION4 ,WE MU/ REFRA9 9 ?IS PAP] FROM EXPATIAT+ FUR!R ON 
,M>X'S !ORY ( OV]-ACCUMULATION2 BUT FROM :AT HAS BE5 SAID IT 
FOLL[S 9DUBITABLY ?AT CAPITAL EXPANSION IS NOT DET]M9$ BY ! CONSUMPTIVE 
NE$S1 BUT ?AT !SE NE$S CAN BE CONT9U\SLY PROVID$ = ONLY SO LONG AS A 
PROGRESSIVE CAPITAL ACCUMULATION IS POSSIBLE4 

,IF ! ,BROOK+S !SIS W]E CORRECT1 ALL ?AT W\LD HE NECESS>Y TO P]MIT 
! FULL USE ( ! PRODUCTIVE CAPACITIES & POSSIBILITIES1 9CLUD+ ! IDLE 
SURPLUS READY = 9VE/M5T1 W\LD BE A %IFT 9 ! DI/RIBUTION ( 9COME 
LEAD+ TO AN 5L>G$ CONSUMPTIVE DEM&4 ,& ?IS IS PRECISELY :AT ! 
,BROOK+S PROPOSES TO DO2 BUT ! ME?OD *OS5 = ACCOMPLI%+ ?IS TASK 
DEFEATS ! PROPOSAL & ALSO 9VALIDATES ! !SIS ON :I* IT IS BAS$4 
,M\LTON REJECTS ! R$I/RIBUTION ( 9COME 9 FAVOR ( AN 9CREASE 9 
CONSUMPTIVE DEM&S BY POLITICAL MEANS OR BY SOME =M ( TAXATION SU* AS 
PROPOS$ BY ! MAJORITY ( CONTEMPOR>Y SOCIAL RE=M]S4 ,SU* ME?ODS AS 
R$I/RIBUTION1 IT IS SAID1 MU/ FAIL BECAUSE ! 0FIR/ REQUIREM5T IS 
TO 9CREASE PROGRESSIVELY ! TOTAL AM\NT ( 9COME TO BE DIVID$40 ,?IS 
PO9T ( VIEW1 NATURALLY1 EXCLUDES ALL IDEAS DEAL+ ) ! CURTAILM5T ( 
PRODUCTION OR PRODUCTIVITY1 EI!R BY WAY ( A /OPPAGE ( TE*NOLOGICAL 
DEVELOPM5T OR BY A %ORT5+ ( ! WORK+ TIME4 ,NOR IS ! ,BROOK+S 
SATISFI$ ) ! FREQU5TLY ADVOCAT$ IDEA ( 0BUY+ BACK :AT ! 
WORK]S HAVE PRODUC$10 BECAUSE IT IS EVID5T 0?AT AS YET1 & 9 
ALL PROBABILITY = MANY YE>S TO COME1 ! PROCUREM5T ( HI<] WAGES ?R\< 
LABOR ORGANIZATION CANNOT BE C\NT$ ON TO EFFECT A BROAD NATIONWIDE 9CREASE 
9 ! PUR*AS+ P[] ( ! MASSES ( ! PEOPLE4 ,IT CAN AT BE/ B5EFIT 
ONLY C]TA9 GR\PS4 ,9 SO DO+ IT T5DS TO AFFECT O!R GR\PS 
ADV]SELY40 ,BUT EV5 IF ORGANIZATION C\LD BR+ AB\T A G5]AL RISE 9 
WAGES ( ! WORK+ CLASS - AN IMPOSSIBILITY UND] CAPITALISM - SURELY ! 
,BROOK+S W\LD NOT *OOSE ?IS WAY ( 9CREAS+ CONSUMPTION1 S9CE IT IS A 
DEMOCRATICALLY IMP>TIAL 9/ITUTION :I* DESIRES A POLICY B5EFIT+ 
ALL ! SOCIAL CLASSES4 

,! ,BROOK+S PREF]S ! COMPETITIVE ME?OD ( DI/RIBUT+ ! NATIONAL 
9COME1 BECAUSE 0! 9T]E/ ( ! PR(IT-MAK] CO9CIDES ) ! 
WELF>E ( ! CONSUM]S0 & BECAUSE 09CREAS$ EFFICI5CY 
MAKES POSSIBLE L[] PRICES1 :ILE ! PR(IT 9C5TIVE 9SURES 
! ACTUAL R$UCTION ( PRICES40 ,?IS PRICE-R$UC+ POLICY IS 
ASSUM$ TO B5EFIT ! 5TIRE POPULATION & TO READJU/ ! DI/RIBUTIVE 
ME*ANISM ) A VIEW TO 5L>GEM5T ( CONSUMPTION & FULL USE ( ! 
PRODUCTIVE CAPACITIES4 ,! 5TIRE HI/ORY ( CAPITALISM IS ASSUM$ TO SUPPORT 
?IS PO9T ( VIEW4 ,( LATE1 H[EV]1 0! ME?OD ( CONT9U\SLY 
EXP&+ M>KETS ?R\< A P]SI/5T R$UCTION ( PRICES AS EFFICI5CY 
9CREASES HAS 9 CONSID]ABLE MEASURE CEAS$ TO OP]ATE40 ,! 
MONOPOLIZATION ( CAPITAL IS ADDUC$ AS ! MO/ IMPORTANT REASON = ?IS 
UN=TUNATE SITUATION2 BUT AT ! SAME TIME ! T5D5CY TO PRICE /ABILIZATION 
IS RECOGNIZ$ AS ! LOGICAL \TCOME ( PREVI\S CAPITALI/ DEVELOPM5T4 
,NEV]!LESS1 WRITES ,M\LTON1 0TO SEEK ! ACCEL]ATION ( ECONOMIC 
PROGRESS BY MEANS ( PRICE R$UCTIONS IS NOT TO ATTACK ! SY/EM ( PRIVATE 
CAPITALISM1 BUT RA!R TO RETURN TO ! V]Y LOGIC UPON :I* ?AT SY/EM WAS 
JU/IFI$ & EXTOLL$ BY BO? LAY & PR(ESSIONAL /UD5TS ( ! ECONOMIC 
PROCESS DUR+ ! DAYS :5 ! SY/EM WAS ASSUM+ ITS PRES5T G5]AL 
*>ACT]40 ,?IS POSITION IS REALLY A FLI<T FROM ACTUAL LIFE 9TO A 
MY/IC FATALISM1 COV]$ UP BY AN >TIFICIAL OPTIMISM4 ,! PRES5T /AGNAT+ 
CAPITALISM HAS OBVI\SLY GR[N \T ( FREE COMPETITIVE CAPITALISM1 & IT IS 
IMPOSSIBLE TO ATTACK ! PRES5T )\T ALSO OPPOS+ ! PA/4 ,& IT IS ALSO 
OBVI\S ?AT ! FUTURE IS NOT DE/9$ TO FOLL[ ! PATT]N ( ! PA/1 BUT 
IMM$IATELY ?AT ( ! PRES5T4 ,FROM ANY PO9T ( VIEW NO?+ ELSE IS 
POSSIBLE4 ,?IS BEWAIL+ ! LOSS ( COMPETITION ?R\< MONOPOLIZATION1 
CAPITAL CONC5TRATION & >TIFICIAL CONTROL S*EMES IS1 AS A MATT] ( FACT1 
)\T ANY REAL BASIS1 S9CE ALL ?IS HAS NOT ESS5TIALLY *ANG$ ! 
FEATURES :I* CAPITALISM POSSESS$ 9 ITS Y\?4 ,9 ! CLASSIC CAPITALISM ( 
FREE COMPETITION !RE W]E MONOPOLIES1 & 9 MONOPOLY CAPITALISM !RE IS 
COMPETITION1 AL?\< ( A MORE MATURE SORT4 ,FROM G5]AL COMPETITION AMONG 
SMALL CAPITALI/S !RE >OSE1 ) ! CONC5TRATION ( CAPITAL & AS A 
RESULT ( ?IS PROCESS1 ?AT ( ! MONOPOLIES AMONG EA* O!R4 ,A RE/RICTION 
( COMPETITION ON ! NATIONAL SCALE BR\<T AB\T AN 9T5SIFICATION ( ! 
COMPETITIVE /RUGGLE 9 ! WORLD M>KET4 ,IF ON ! ONE H& COMPETITION WAN$ 
AS REG>DS COMPLEXITY1 IT WAS ONLY 9 ORD] TO WAX 9 O!R =MS AS REG>DS 
9T5SITY4 ,H[EV] MU* ! CLASSIC CAPITALISM MAY DIFF] FROM ITS PRES5T 
MONOPOLI/IC SUCCESSOR1 /ILL ! ONE CANNOT BE SET OV] AGA9/ ! O!R3 
MONOPOLY CAPITALISM IS ! OLD-AGE MANIFE/ATION ( LAISSEZ-FAIREISM1 ?AT IS1 
IT IS SIMPLY MONOPOLI/IC LAISSEZ-FAIRE4 ,?AT 0FREEZ+ ( ! 
/ATUS QUO0 BR\<T AB\T BY ! T5D5CY TO /ABILIZE PRICES1 & :I* 
SEEMS SO WRONG TO ! ,BROOK+S ,9/ITUTION1 IS 9 REALITY & 9 ! LA/ 
ANALYSIS1 AS A ME?OD ( DE/ROY+ SMALL CAPITALI/S1 ITSELF NO?+ ELSE BUT 
AN 9DICATION ( %>P5$ COMPETITION4 ,:OEV] WANTS TO HAVE FUR!R 
CAPITALI/ PROGRESS MU/ BE 9 FAVOR ( ! /RANGULATION ( ! WEAK] 
CAPITALI/ GR\PS1 MU/ BE 9 FAVOR ( FUR!R MONOPOLIZATION1 ( A /ILL 
GREAT] ELIM9ATION ( NATIONAL COMPETITION TO /R5G!N ! COMPETITIVE P[] 
( CAPITALISM ON ! BASIS ( :AT CAPITALISM REALLY IS-A WORLD ECONOMY4 ,TO 
BASE ! POLICIES ( PRES5T-DAY CAPITALISM ON ! PR9CIPLES ( ! PA/ MEANS 
SOME?+ O!R ?AN ! M]E 5L>GEM5T ( MASS CONSUMPTION TO FUR!R A 
GREAT] USE ( ! PRODUCTIVE CAPACITIES4 ,TO A CONSI/5T ?9K] IT CAN ONLY 
MEAN ! 5L>G$ REPETITION ( PREVI\S PROCESSES1 S9CE ! REAL BASIS ( ! 
CAPITALI/ SY/EM TODAY IS ! SAME AS AT ITS BEG9N+1 NAMELY PRODUCTION = 
PR(IT1 APPROPRIATION ( AN EV] GREAT] PORTION ( ! PRODUCTS ( LABOR4 ,IF 
?IS IS POSSIBLE1 AN 5L>G$ BUT ESS5TIALLY ID5TICAL RESULT WILL BE 
OBTA9$3 MORE CONC5TRATION ( CAPITAL1 /RICT] MONOPOLIZATION1 MORE 
DIFFICULTIES1 GREAT] CRISIS4 ,! V]Y ?+ PROPOS$ BY ! ,BROOK+S 
,9/ITUTION = EFFECT+ A BETT] BALANCE BETWE5 CONSUMPTION & PRODUCTION 
WILL1 IF PUT 9TO PRACTICE1 HAVE CREAT$ A GREAT] GAP4 

,V,I 

,! IDEAS DEVELOP$ BY ! ,BROOK+S ,9/ITUTION HAVE F\ND A PRACTICAL 
APPLICATION 9 ! VOLUME ,! ,RECOV]Y ,PROBLEM 9 ! ,UNIT$ 
,/ATES4 ,?IS BOOK1 :I* IS REALLY 9DISP5SABLE TO ! LAY AS WELL AS 
PR(ESSIONAL /UD5T ( ECONOMICS1 WE %ALL NOT CONSID] AT PRES5T ) 
REF]5CE TO ALL ITS CONT5TS OR ! TREM5D\S & IMPORTANT FACTUAL MAT]IAL 
:I* IT PRES5TS2 WE >E H]E 9T]E/$ ONLY 9 ITS CONCLUSIONS & 9 SO F> 
AS !Y DEAL ) ! PRES5T SITUATION 9 RELATION TO ! G5]AL !ORIES 
DEVELOP$ 9 ,9COME & ,ECONOMIC ,PROGRESS4 ,:ILE 0! 
PRES5T WORLD RECOV]Y MOVEM5T HAS BE5 UND] WAY = APPROXIMATELY F\R 
YE>S10 /ILL ! AU?ORS RECOGNIZE ?AT 0! DEGREE ( ECONOMIC 
IMPROVEM5T HAS BE5 F> FROM SUFFICI5T TO ABSORB UNEMPLOYM5T & TO RE/ORE 
=M] /&>DS ( LIV+40 

,?IS ALSO HOLDS = ,AM]ICA1 9 :I* RECOV]Y 0HAS BE5 APPRECIABLY 
LESS ?AN ?AT 9 MANY O!R C\NTRIES40 ,9 :AT WAY1 N[1 HAS ?IS 
LIMIT$ IMPROVEM5T BE5 R5D]$ POSSIBLE8 ,BY2 A BETT] DI/RIBUTION ( 9COME 
9 FAVOR ( ! BROAD MASSES1 :I* IS SUPPOS$ TO LEAD TO A FULL] USE ( ! 
PRODUCTIVE CAPACITIES8 ,OR BY OPPOSITE TR5DS1 BY A FUR!R CURTAILM5T ( MASS 
PUR*AS+ P[]1 BO? 9 RELATION TO CURR5T PRODUCTION & TO1 ! SITUATION 
PRIOR TO #a#i#b#i8 ,HAS ! PROCESS ( RECOV]Y SO F>-ATTA9$ JU/IFI$ ! !SIS 
( ! ,BROOK+S ,9/ITUTION DEVELOP$ 9 ,9COME & ,ECONOMIC 
,PROGRESS8 ,!RE IS NO?+.> 9 ! :OLE VOLUME ON ! ,RECOV]Y 
,PROBLEM 9 ! ,UNIT$ ,/ATES :I* W\LD P]MIT AN AFFIRMATIVE 
ANSW]4 

,REAL RECOV]Y1 AS MEASUR$ BY PREVI\S P]IODS ( RECOV]Y AFT] CRISIS1 HAS 
NOT AS YET OCCURR$4 ,! D[NW>D TR5D ( CAPITAL WAS /OPP$ & TURN$ 9TO 
A NEW UPSW+1 BUT SO F> IT HAS BE5 UNABLE TO SURPASS ! PRODUCTION LEVEL ( 
#a#i#b#i4 ,= A REAL BOOM1 ! #aibi LEVEL MU/ BE SURPASS$ BY F>1 BUT AS YET 
NO?+ ( ! SORT CAN REASONABLY BE EXPECT$4 ,! ,BROOK+S2 ,9/ITUTION 
DESCRIBES ! EXI/+ SITUATION QUITE WELL 9 SAY+ ?AT IT 0IS ONE ( 
DELICATE ADJU/M5T & PREC>I\S BALANCE4 ,9 A V]Y REAL S5SE ! WORLD 
/&S AT ! CROSS ROADS4 ,WE MAY MOVE GRADUALLY =W>D ALONG A BROAD FRONT1 
A*IEV+ PROGRESSIVELY HI<] LEVELS ( WELL-BE+2 OR WE MAY SUFF] A 
REV]SAL ( CURR5T TR5DS & 5T] UPON A NEW P]IOD ( RECESSION1 9VOLV+ 
FUR!R DET]IORATION ( LIV+ /&>DS & BR++ A NEW ]A ( 
DISORGANIZATION1 ! CONSEQU5CES ( :I* NO ONE CAN =ESEE40 

,! DEEPE/ PO9T ( WORLD ECONOMY WAS REA*$ 9 ! MIDDLE ( #a#i#c#b4 ,FROM 
?AT TIME ON TO ! PRES5T ! TR5D IS UPW>D4 ,BUT F\R YE>S ( SU* 
FAVORABLE DEVELOPM5T HAVE BE5 UNABLE TO BR+ AB\T A REAL PROSP]ITY4 ,IF ! 
OLD BUS9ESS CYCLE W]E /ILL 9 EFFECT1 A NEW CRISIS C\LD BE EXPECT$ BY 
#a#i#c#h2 BUT ?IS CRISIS W\LD SET 9 AT A L[] PO9T ( PRODUCTION ?AN ?AT ON 
:I* ! BOOM ( #aibi WAS BROK54 ,9 O!R WORDS ! NEW CRISIS W\LD 
E/ABLI% ! FACT ?AT CAPITALISM WAS UNABLE 9 ! :OLE C\RSE ( A COMPLETE 
BUS9ESS CYCLE TO SURPASS ! PRODUCTION LEVEL PREVI\SLY ATTA9$2 IT W\LD 
JU/IFY ! /ATEM5T ?AT CAPITALISM IS UNABLE TO OV]COME ITS /AGNANT 
*>ACT]4 ,! PRES5T DEPRESSION W\LD HAVE FAIL$ TO FULFILL ITS FUNCTION1 
?AT IS1 TO CLE> ! WAY = FUR!R PROGRESSIVE ADVANCE ( CAPITALI/ 
SOCIETY4 ,BUT IF DEPRESSION HAS *ANG$1 !N SO ALSO HAS PROSP]ITY4 ,IF ! 
=M] IS UNABLE TO FUNCTION 9 ! WELL-KN[N WAYS1 !N ALSO ! LATT] WILL 
LOOK DIFF]5T FROM PREVI\S2 P]IODS :I* W]E CALL$ PROSP]\S4 
0,PROSP]ITY0 W\LD !N BE NO?+ MORE ?AN A BREA?+ SPELL 9 
AN IRRESI/IBLE D[NW>D TR5D ( CAPITAL4 

,LEAV+ ?IS QUE/ION ASIDE1 H[EV]1 ! ,BROOK+S ACC\NT ( ! EXT5T TO 
:I* RECOV]Y HAS BE5 ATTA9$ 9VALIDATES ITS !ORETICAL CONSID]ATION 9 
RELATION TO 9COME & ECONOMIC PROGRESS4 ,ACCORD+ TO ITS [N & ALL O!R 
S]I\S /UDIES ON ! SUBJECT YET PUBLI%$ & VIEW$ FROM ! /&PO9T ( 
WORLD ECONOMY1 JU/ AS 9 ! YE>S FROM #aiba TO #a#i#b#i1 SO ALSO 9 ! YE>S 
FROM #aicb TO ! PRES5T TIME ! PRODUCTION ( MEANS ( PRODUCTION HAS 
9CREAS$ ALMO/ F\R TIMES AS FA/ AS PRODUCTION = DIRECT USE4 ,9 ORD] TO 
BR+ AB\T A REAL PROSP]ITY IT %\LD HAVE BE5 MU* FA/]1 & ! GAP 9 
RELATION TO CONSUMPTION GOODS PRODUCTION %\LD HAVE BE5 WID]4 ,AS IT WAS1 
?IS DEVELOPM5T C\LD ONLY REA* ?IS /ILL 9SUFFICI5T LEVEL BY A GREAT 
9CREASE ( PRODUCTION FROM PUBLIC FUNDS & BY ! TREM5D\S >MAM5TS 
PROGRAMS4 ,IF1 9 SPITE ( ! FACT ?AT IT WAS A P]IOD ( G5]AL 
RATIONALIZATION1 ! YE>S FROM #aiba TO #aibh W]E ALREADY RELATIVELY 
UNSATISFACTORY 9 REG>D TO PR(ITABILITY ( CAPITAL1 ! EXPECTATIONS CANNOT 
BE GREAT ) REF]5CE TO ! PR(IT NE$S = FUR!R PROGRESSIVE 
ACCUMULATION ON ! BASIS ( ! PRES5T *>ACT] ( ! DEVELOPM5T ( 
PRODUCTION4 

0,PRODUCTION & EMPLOYM5T >E BASIC & ULTIMATE PO9TS ( REF]5CE 
9 MOD]N 9DU/RIAL LIFE10 SAYS ! ,BROOK+S ,9/ITUTION CORRECTLY4 ,9 
?IS RELATION ! ,RECOV]Y ,PROBLEM PRES5TS ! FOLL[+ PICTURE3 
0,ON A FULL-TIME BASIS SU* AS PREVAIL$ 9 #a#i#b#i1 MORE ?AN #b P] C5T ( 
! NATION'S LABOR =CE REMA9S UNUTILIZ$ 9 #a#i#c#f2 BY ! MIDDLE ( 
#aicf WE W]E /ILL #b#e-#c P] C5T BEL[ ! ADJU/$ #aibi LEVEL 9 BO? 
MANUFACTUR+ PRODUCTION & TOTAL \TPUT ( GOODS & S]VICES40 ,A V]Y 
UNFAVORABLE SITUATION1 9DICAT+ ! DIFFICULTIES ( CAPITALISM 9 B5D+ ! 
ECONOMIC REALITY TO SUIT ITS NE$ = PR(IT4 ,AFT] TWO YE>S ( DEPRESSION ! 
PRODUCTIVITY ( ! WORK]S1 :I* PREVI\SLY HAD 9CREAS$ AFT] ! CRA% ( 
#a#i#b#i1 DECL9$ CONSID]ABLY1 MAK+ ! REE/ABLI%M5T ( PR(ITABILITY /ILL 
MORE DIFFICULT & 9DICAT+ ! IMPRACTICABILITY ( A DECISIVE R$UCTION 9 
WAGES AS A MEANS ( OV]-COM+ ! CRISIS4 ,:AT CAN BE SAV$ 9 ?AT WAY MAY 
BE :OLLY (FSET BY A DECREASE 9 PRODUCTIVITY1 %[+ ONCE MORE ?AT ONLY 
AN ACCEL]AT$ ACCUMULATION IS A REAL SOLUTION = CAPITALI/ 
DIFFICULTIES4 ,BUT ?IS FAIL$ TO COME AB\T1 9 SPITE ( A RATE ( 9T]E/ 
L[] ?AN EV] BE=E 9 CAPITALI/ HI/ORY4 ,! FAVORABLE CIRCUM/ANCES = 
CAPITAL EXPANSION W]E L>GELY (FSET BY MANY >IS+ CIRCUM/ANCES ( AN 
UNFAVORABLE *>ACT]2 AS = 9/ANCE1 BY AN 9CREASE ( SOCIALLY UNAVOIDABLE 
EXP5DITURES :I* ATE FROM ! ALREADY 9SUFFICI5T SURPLUS VALUE4 ,! 
,BROOK+S ,9/ITUTION NOTES ?AT ! DEGREE ( RECOV]Y SO F> ATTA9$ WAS 
R5D]$ POSSIBLE ONLY BY A FUR!R SPREAD BETWE5 ! ACTUAL \TPUT ( ! 
WORK]S & !IR ACTUAL 9COME4 ,MORE VALUE & SURPLUS VALUE WAS REALIZ$ ON A 
GIV5 CAPITAL1 & ?IS1 9 CONJUNCTION ) ! RE-ORGANIZATION ( CAPITAL 
DUR+ ! CRISIS1 & ALSO ) ! GOV]NM5TAL SP5D+ PROGRAM1 P]MITT$ 
! FACELIFT+ ( CAPITAL :I* WE HAVE N[ WITNESS$4 ,9 SO F> AS 
0PROSP]ITY0 WAS ADVANC$ BY AN 9CREASE 9 GOV]NM5TAL SP5D+1 
MADE POSSIBLE BY EXT5D+ ! CR$IT FACILITIES1 IT CAN BE JU/IFI$ ONLY 9 
CASE IT LEADS TO A REAL PROSP]ITY :I* WILL COV] ! DEFICIT TO :I* ?IS 
>TIFICIAL ME?OD HAS GIV5 RISE4 ,SO ?AT ! SOME:AT HAPPY PRES5T SITUATION 
IS CL\D$ BY =EBOD+S AB\T ! FUTURE4 ,/ILL1 ! BASIC NE$ REMA9S1 9 
! EYES ( ! ,BROOK+S ,9/ITUTION1 0! ABSORPTION ( ! UNEMPLOY$ 
9 ! PRODUCTION ( ADDITIONAL GOODS & S]VICES 9 ! FIELD ( PRIVATE 
9DU/RY40 ,UND] ?IS G5]AL =MULA1 TO RAISE ! /&>D ( LIV+ ( 
WAGE WORK]S1 AS ! ,9/ITUTION DESIRES1 09VOLVES NECESS>ILY 
9CREAS+ ! SPREAD BETWE5 ! WAGE RATES & PRICES4 ,AN 9CREAS+ SPREAD 
BETWE5 WAGE RATES & PRICES DEP5DS FUNDAM5TALLY UPON 9CREAS+ ! 
EFFICI5CY ( PRODUCTION40 ,BUT WAGES >E ! PRICE ( LABOR P[]4 ,IF 
PRICES FALL1 SO ALSO ! PRICE ( LABOR P[]1 O!RWISE PR(ITS W\LD BE 
R$UC$2 BUT1 SAYS ! ,BROOK+S ,9/ITUTION1 0ONLY 9CONSEQU5TIAL 
9CREASES 9 WAGES CAN BE A*IEV$ BY TR5*+ UPON ! PR(ITS40 ,TO 
JU/IFY ?IS CONTRADICTORY /ATEM5T IS EQUIVAL5T TO D5Y+ ! VALUE-PRICE 
*>ACT] ( LABOR P[] & IF PRICES DECL9E WAGES ALSO MU/ FALL1 UNLESS 
WAGES W]E NOT TO BE SUBJECT TO ! LAW ( VALUE4 ,BUT !N ! :OLE CAPITALI/ 
SY/EM W\LD BE AN IMPOSSIBILITY1 AS ?IS SY/EM DEP5DS = ITS EXI/5CE ON 
! FACT ?AT LABOR P[] IS A COMMODITY SUBJECT TO ! LAW ( VALUE4 ,:AT ! 
,BROOK+S ,9/ITUTION MEANS TO SAY IS ?AT PRICES %\LD FALL FA/] ?AN ! 
PRICE ( LABOR P[]1 ?US GIV+ MORE ACTUAL PUR*AS+ P[] TO ! WORK]S2 
A ?+ :I* *>ACT]IZES ! :OLE DEVELOPM5T ( CAPITALISM1 BUT :I* ALSO 
MEANS ?AT ! PRODUCTIVITY ( ! WORK]S MU/ 9CREASE MORE RAPIDLY ?AN 
CONSUMPTION4 ,BUT ?IS PROCESS HAS L$ TO ! PRES5T SITUATION2 TO REPEAT ! 
PROCESS IS EQUIVAL5T TO BR++ AB\T ! SAME SITUATION1 :I*1 H[EV]1 ! 
,BROOK+S ,9/ITUTION IS \T TO *ANGE1 & ! GAP BETWE5 PRODUCTION & 
CONSUMPTION1 :I* ! ,9/ITUTION WANTS TO BE CLOS$1 WILL BE WID5$4 ,TOR BE 
SURE1 ! ,BROOK+S PROPOSALS >E QUITE 9 H>MONY ) ! NE$S ( 
CAPITALISM2 ANY O!R SORT ( PROPOSAL IS SO MU* NONS5SE4 ,?AT ?IS IS ! 
ONLY FIELD ( ACTION = CAPITAL IS RECOGNIZ$ BY ! ,M>XI/ ALSO4 ,BUT ) 
?IS ! ALL-EMBRAC+1 ALL-GR\PS-(-SOCIETY-B5EFITT+1 SOCIO-ECONOMIC 
PHILOSOPHY CONTA9$ 9 ! WRIT+S ( ! ,BROOK+S ,9/ITUTION IS R$UC$ TO 
A FAIRY TALE4 

,MORE PR(ITS1 MORE SURPLUS VALUE3 ?AT IS ! REAL NE$ ( CAPITAL4 ,IF ?AT 
NE$ IS SATISFI$1 CAPITALI/ SOCIETY WILL BE HAPPY ALL >\ND4 ,= ?IS 
REASON1 & 9 SPITE ( ITS PHILOSOPHY1 ! ,BROOK+S ,9/ITUTE RECOGNIZES AS 
FAVORABLE FACTORS 9 ! PRES5T SITUATION3 ! L[ RATE ( 9T]E/1 ! 
R$UCTION ( PRIVATE 9DEBT$NESS2 9CREAS+ EFFICI5CY ( PRODUCTION & 
FULL] UTILIZATION ( CAPACITY1 MAK+ POSSIBLE HI<] WAGES & HI<] PR(ITS 
9 RELATION TO PRICES2 A S\ND BANK+ & MONET>Y POLICY2 EXPANSION ( 
=EIGN TRADE1 & ! ACCUMULAT$ DEFICI5CY ( PRODUCTION AS A /IMULUS TO 
FUR!R EXPANSION4 ,= ALL !SE FACTORS 9CREASE ! PR(ITABILITY ( CAPITAL4 
,& IT LOOKS ) SORR[ ON ALL ! EXI/+ UNFAVORABLE FACTORS1 SU* AS ! 
DIFFICULTIES 9VOLV$ 9 MA9TA9+ FISCAL /ABILITY1 ! DANG] ( PRICE 
9FLATION1 ! PRES5T TR5D 9 ! LABOR MOVEM5T T[>D A MORE SELF-SEEK+ 
ACTIVITY1 ! ILL-CONCEIV$ 9DU/RIAL & SOCIAL LEGISLATION1 & ALSO ! 
UN/ABLE 9T]NATIONAL SITUATION4 

,ASIDE FROM ITS ILLUSIONS & ]RORS1 ! ,BROOK+S ,9/ITUTION RECOGNIZES 
ONE ?+ ) EXTREME CL>ITY1 & ?AT IS ?AT ! PRES5T SY/EM1 BAS$ ON 
PR(IT PRODUCTION1 CAN ONLY FUNCTION & PROCE$ AS SU*4 ,9 HELP+ TO MAKE 
?IS CLE> & 9 PO9T+ \T ALL ! CAPITALI/ PROBLEMS >IS+ FROM ?IS 
SITUATION1 ! ,BROOK+S ,9/ITUTION HAS R5D]$ A S]VICE BO? TO ! 
CAPITALI/ CLASS & ALSO TO ,M>XISM4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #b1 #bba 3 ,M>XISM & ,BROOK+S ,9/ITUTION -- ,ADD$4 
,JANU>Y #h1 #bbb 3 ,M>XISM & ,BROOK+S ,9/ITUTION -- ,UPDAT$4 

 FILE G5]AT$ FROM 3  
HTTP3_/_/REVOLTLIB4COM_/