the mechanism as a whole tends relentlessly towards its final end with the general process of accumulation . . . Once these counter-tendencies are themselves defused or simply cease to operate, the breakdown tendency gains the upper hand and asserts itself in the absolute form of the final crisis. 55
Yet it is possible to see hypothetical circumstances in which Grossman's arguments would apply. Intense competition between capitals-itself intensified by falling profit rates-could compel each to invest in ever more expensive means of production so as to obtain the advanced technology that is a precondition for survival. In this way the technical prerequisites of successful competition would contradict the possibility of maintaining profitability; the embodiment of capital in certain use values would contradict the possibility of expanding its value. Resistance from the working class could prevent restoration of profit rates through the method of paying for labour power at below its reproduction costs. And something might prevent the usual boom-recession cycles from driving some firms out of business and easing the long-term problems of others. Grossman's theory can then show how the falling rate of profit can produce deep problems for the system, without being treated as definitive proof that capitalism has to collapse of its own accord.
The concentration and centralisation of capital
The second long-term process recognised by Marx was what he called the "concentration and centralisation" of capital.56 It is not difficult to grasp what is involved. Concentration refers to the way in which exploitation enables individual capitals to accumulate and so grow larger. The small firm becomes a big firm and the big firm becomes a giant-providing it can survive each cyclical crisis. Centralisation refers to the way in which each crisis weeds out some capitals, leaving those that remain controlling a bigger part of the whole system.
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Understanding the System: Marx and Beyond