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Capital intensity, unproductive activities and the Great Recession in the US economy

Author

Listed:
  • Lefteris Tsoulfidis
  • Dimitris Paitaridis

Abstract

The purpose of this article is to show that the Great Recession of 2007 in the USA is of the classical type featuring the rising value composition of capital which more than fully offsets the rising rate of surplus value giving rise to a falling rate of profit. The tendential fall of the latter, from a point onwards, led to a stagnant mass of real net profits, thereby decreased net investment and eventually impacted on employment. The evolution of capital intensity and the consequences of unproductive activities remain key issues in the discussions of capital accumulation and its periodic ruptures.

Suggested Citation

  • Lefteris Tsoulfidis & Dimitris Paitaridis, 2019. "Capital intensity, unproductive activities and the Great Recession in the US economy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 43(3), pages 623-647.
    • Handle: RePEc:oup:cambje:v:43:y:2019:i:3:p:623-647.
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    File URL: http://hdl.handle.net/10.1093/cje/bey051
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    Cited by:

    1. Tsoulfidis, Lefteris & Tsimis, Achilleas & Paitaridis, Dimitris, 2018. "The Rise and Fall of Unproductive Activities in the US Economy 1964-2015: Facts, Theory and Empirical Evidence," MPRA Paper 84035, University Library of Munich, Germany.
    2. Rotta, Tomás N. & Kumar, Rishabh, 2024. "Was Marx right? Development and exploitation in 43 countries, 2000–2014," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 213-223.
    3. Francesca Grassetti & Edgar J. Sanchez Carrera, 2025. "Economic Growth, Poverty Traps, and Wealth Concentration: Riddles and Waves Driven by Unproductive Assets," Working Papers - Economics wp2025_05.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.

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    Keywords

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    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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