ANALYSIS: The tendency of the rate of profit to rise [Chris Dillow]

ProfrateRemember Marx’s tendency for the rate of profit to fall? Well, today’s official figures show that it no longer exists. If anything, there’s been a tendency in recent decades for the rate of profit to rise.
The numbers show that non-oil, non-financial companies’ net return on capital was 11% in Q4 and 11.2% in 2009 as a whole. This means that UK firms were more profitable during the worst recession since 1931 than they were at the end of the long post-war upswing in the early 1970s.

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