From the May 1979 issue of the Socialist Standard
How Capitalism Works (5): Keynes and Capitalism
An enterprise's rate of profit is the ratio of the amount of profits it makes, say in a year, to the money-value of its assets at the beginning of that year. The average rate of profit of the whole economy is the ratio of total profit to total capital. The rate of profit would tend to fall if over time the amount of the total capital tended to increase at a faster rate than the total amount of profits.
THE CASE AGAINST CAPITALISM
(1) That, although there has been a long-term expansion of productive capacity and oil output, this has been only a fraction as fast and as extensive and as safe as technology has made possible.
(2) That, although in the long run the existing capacity has been more or less fully used, this has been broken by regular periods of under-use.
(3) That, in agriculture and in industries faced with declining markets, there has been deliberate destruction of productive capacity and regular destruction of wealth.
(4) That millions and millions of human beings who could have contributed to producing useful things have been prevented from working at all.
(5) That millions and millions more human beings have been allowed to work but only to engage in wasteful exchange and coercive activities.
(6) That the existing productive capacity has been used to produce considerable amounts of waste.
These are all serious charges and all of them are proved. They point to the need for the world's people to recover control over the productive system by abolishing the exchange economy altogether and replace it by a society that will allow them to plan the production of wealth in their own interests and to allocate the products for their own individual and collective use.