{"resolved":true,"match_type":"uuid","source_type":"original_book","book_id":"50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","title":"Digital Capitalism","author":null,"edition":null,"publisher":null,"year":null,"isbn":"2021022153","requested_by":"printed_page","book":{"source_type":"original_book","book_id":"50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","id":"50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","uuid":"50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","title":"Digital Capitalism","normalized_title":"digitalcapitalism","author":null,"edition":null,"publisher":null,"year":null,"isbn":"2021022153","isbns":["2021022153","9781032119182","9781032119205","9781003222149","2405518376"],"parsed":true,"ai_readable":true,"document_type":"book","page_count":343,"navigation_url":"https://workshop.closeclaw.top/ai/book/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","title_url":"https://workshop.closeclaw.top/ai/title/Digital%20Capitalism","fixed_page_url_template":"https://workshop.closeclaw.top/ai/book/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed/page/{printed_page}","path_api_url_template":"https://workshop.closeclaw.top/api/ai/book/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed/page/{printed_page}","read_url":"https://workshop.closeclaw.top/api/ai/read/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","page_url":"https://workshop.closeclaw.top/api/ai/books/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed/page","search_url":"https://workshop.closeclaw.top/api/ai/books/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed/search"},"page":{"printed_page":214,"pdf_page":228,"physical_index":228,"physical_index_base":0,"printed_page_status":"recognized","page_sha256":"dbebc0482d90dcc83ad1e644a19587bbe964abcfdba8eb0290618d21998050cb"},"chapter":"DIGITAL CAPITALISM","content":"If we divide the numerator and the denominator by v, then we get:\n\n$$\nR O P = { \\frac { \\frac { s } { v } } { { \\frac { c } { v } } + 1 } }\n$$\n\nThis formula shows that the rate of profit depends: (a) on the rate of surplus-value that Marx also calls the rate of exploitation because it described the relationship of unpaid and paid labours; and (b) the organic composition of capital that represents the relationship of dead and living labour, constant and variable capital, the value of machinery/resources, and labour-power. The organic composition is a measure of an economy’s technological intensity. The rate of profit is directly proportional to the rate of surplus-value and indirectly proportional to the organic composition of capital.\n\nNew technology has the potential to increase both the rate of surplus-value and the organic composition of capital. The effects of new technology on the rate of profit depend on the relationship between the rate of surplus-value and the organic composition. If the organic composition increases more than the rate of surplus-value, then a fall of the rate of profit emerges. Vice versa, if the rate of surplus-value increases more than the organic composition, then the rate of profit rises. An important factor in this respect is class struggle that influences the absolute value of variable capital v. In any case, the formula for the rate of profit shows that technification has contradictory potentials: it can increase productivity and the exploitation of labour.\n\nThe increase of the organic composition as structural tendency of capital stands in a contradiction with class struggles. The outcomes of this contradiction cannot be predicted in advance, but depend on historical circumstances. If the organic composition increases and there are no or unsuccessful workers’ struggles so that the wage sum decreases, then the rate of profit can increase. If however workers’ struggles are successful and they resist lay-offs and achieve wage-increases, the profit rate is more likely to fall.\n\nFigures 9.1 and 9.2 show the development of the rate of profit, the organic composition, and the rate of surplus-value in the USA and the EU15 countries.\n\nThe rate of surplus-value, that is, the degree of exploitation, has decreased in the 1960s and was relatively low in the 1970s in both the USA and the EU15. This is an indication that the working class’ struggles were relatively successful in this time period and resulted in relative wage increases. In the early 1980s, the time of the rise of neoliberal politics such as Reagonomics and Thatcherism, the degree of exploitation started a long-term increase caused by wage repression.\n\n214\n\nThemes","previous_page":null,"next_page":215}