The US rate of profit in 2021

Michael Roberts Blog

Every year, I analyse the US rate of profit on capital.  This is because the US data is the best and most comprehensive to use and because the US is the most important capitalist economy, often setting the scene for trends in global capitalism.  We now have the data for 2021 (that’s as far as the official national data go).

There are many ways to measure the rate of profit a la Marx – see http://pinguet.free.fr/basu2012.pdf).  I prefer to measure the rate of profit by looking at total surplus value in an economy against total private capital employed in production; to be as close as possible to Marx’s original formula of s/(C+v), where s = surplus value; C = constant capital – which should include both fixed assets (machinery etc) and circulating capital (raw materials and intermediate components); and v = wages or employee costs. My calculations can be…

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