Question

Explain what is meant by the "social structure of accumulation (SSA)?" What are the four dimensions of each social structure of accumulation? How does an SSA promote a high rate of profit and capital accumulation? Why does the SSA's ability to promote a high rate of accumulation eventually diminish?

Answer 1

The Social Accumulation Structure (SSA) strategy offers a fresh way to evaluate capitalist economies and societies ' structure and growth. The word SSA relates to the institutional complex that supports the capital accumulation process. The central idea of the SSA strategy is that an efficient SSA is required for a lengthy period of comparatively fast and stable economic expansion. While an SSA encourages for a period of time development and stabilization, the SSA ultimately declines. There follows a period of stagnation and instability until a fresh SSA can be constructed.

The SSA contains both political, cultural and economic organizations. The organizations that comprise an SSA include agreements at home and abroad. Domestic organizations may include the state of labor-management relations; the organisation of the job system; the personality of industrial organisation; the role of cash and banking and their relationship to sector; the role of the state in the economy; the line-up of political parties; the state of race and sex interactions; and the personality of the dominant culture and ideology. Trade, investment, monetary-financial and political environments may be affected by global organizations.

When it is working effectively, promotes a high rate of profit and that a structural, or SSA, crisis results from a profit rate decline stemming from problems that arise in the SSA and its relation to capital accumulation. The circuit of capital framework has the advantage of effectively integrating within a single framework several crisis tendencies in capitalism including those not based on profit rate movements. A key lesson drawn from this analysis is that differences between particular SSAs imply a different process of SSA breakdown and different causes of the SSA crisis.

The sort of issue occurs in value realization. There are two consequences if the capitalists as a group can not recognize all the importance. First, the "realized rate of profit" would fall below the rate of profit in production, measured by the ratio of the amount of surplus value realized to the capital invested. Secondly, the very appearance of a issue of realization means that too much has been generated. This in itself would tend to cause the capitalists to decrease the amount of production instantly. A gap in realization would result in a mixture of price decrease and decrease in the amount of production sold.