Sunday, October 28, 2018
Profit, Excess, Interest
Profit is a Surplus with respect to an initial investment. But it is also an Excess--with respect to breaking even. Thus, as has been previously discussed, the Profit-motive is open to the diagnosis that it is an expression of Greed, and, hence, a Vice. Now, as the fundamental principle of Capitalism, it is a factor in all transactions. But, one transaction in particular expresses the characteristic of a fundamental principle that it is for its own sake--charging Interest on a loan. That expression is sharply defined since Interest quantifies the Excess entailed in Profit-seeking, i. e. with respect to an Interest-free loan. Thus, Interest is the primary exemplar of Capitalism. Now, Interest entails not only Excess, but Deficiency, i. e. that of the payer. Thus, Interest is a Zero-Sum relation, or, in other words, the Profit that it entails is one-sided, not general. Accordingly, by missing that Profit is an Excess, Marx also overlooks that the fundamental Capitalist contradiction is that between Excess and Deficiency in what is purportedly a unity, i. e. a Nation.
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