The Dynamics of Fixed Capital Revaluation and Scrapping

Abstract

This paper offers a theoretical approach to the study of intracapi talist class rivalry focusing on the dynamic properties of fixed capital revaluation when technological change is introduced. Historically capitalist accumulation has relied on multiperiod assets which increase the roundaboutness of produc tion. As the flexibility of the production system decreases, technical obsolescence is increasingly damaging, and may cause the realized rate of profit to fall. Those capitalists who use external funds to finance investment will find themselves with an increasingly expensive debt to be serviced out of shrinking profits.