PROFITS, CRISES AND INDUSTRIAL CHANGE 2: THE EXPERIENCE OF CANADA 1950—1981

The paper measures the rate of profit and its components in Canadian manufacturing for 1950 - 1981. The rate of profit has been reduced by rises in the real wage and the technical composition of capital, partially offset by a devaluation in the means of production and a reduction in turnover times. The value of labour power and therefore the rate of exploitation have not changed. The rate of profit has consistently fallen throughout the period. These results are consistent with a theory that the falling rate of profit is endogenous to capitalism.