Tag: Simulation

This post originally appeared on my substack. The tendency for the rate of profit to fall is a famous theory advanced by the classical political economists, particularly Marx. He believed that this tendency was the result of an ever increasing level of fixed capital, the result of capitalist competition and the necessity to expand production….

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This post originally appeared on my substack. The rate of profit is one of the most important macro metrics in classical economics and is key to understanding the health of a capitalist economy. When the rate of profit is falling the business cycle is entering its late phase. While it is rising the economy is relatively…

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