The mature capitalist economy is subject to and dominated by a basic contradiction: the very growth of its productive potential puts insuperable obstacles in the way of making full use of available human and material resources for the satisfaction of the needs of the great mass of the population. What this means is (1) that in the absence of sufficiently powerful countervailing forces, the normal state of the economy is stagnation; and (2) that the real history of the system in its monopoly capitalist phase is determined by the interaction of the tendency to stagnation and the forces acting counter to this tendency. (Magdoff & Sweezy, 1988, p. 24)
KeywordsTrade Cycle Asset Price Capacity Utilization Capital Asset Excess Capacity
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