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Argentine economy

The theory of monopoly capital and the supposed end of competition

Juan Kornblihtt

Traducción de Leonardo Kosloff

It’s almost commonplace to lay blame on the big monopolies of being the cause of the evils provoked by capitalism. In this article, we will discuss this idea. Not because the capitals with the highest concentration deserve any defense, but because the idea that their power resides in their monopolistic character leads to confusions regarding the functioning of capitalism, and, in large measure, how to combat it. The North-American economist Paul Sweezy is one of the most influencing intellectuals in Marxism and the one who gave theoretical justification to the idea that the domination of monopoly capital replaced competition [1]. His theories are present in a large number of traditional parties of the left in all their variants, from Maoists to Trotskyists. The debate could seem minor and be reduced to subtleties. Nevertheless, what is being hidden behind attributing the handling of the economy to the monopolies is the absolute transformation of Marx’s theory: the end of competition between capitals implies, in the last instance, to forget the theory of value. A position which is against the data afforded by reality: permanent increase in the productivity of companies to win markets, the disputes through price lowering for different products, the persistence of various companies including in those branches with the highest concentration, and the historical tendency of the falling rate of profit.

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Argentine economy

traducido por Leonardo Kosloff