The Rate of Profit in Canadian Manufacturing, 1950-1981

Abstract

This paper interprets and measures changes in the rate of profit in Canadian manufacturing over the period 1950-1981. The interpretation stresses endogenous forces that lead to a rising real wage and a rising technical composition of capital, two trends amply confirmed by the evidence. These forces act to reduce the rate of profit. The counteracting forces which are measured include the falling value of consumption commodities (so that, in net the value of labor power does not rise), the falling value of means of production (not sufficient, however, to prevent the value composition of capital from rising) and the increasing rate of turnover of capital. The net effect of these forces is a con..