ABSTRACT
If we observe the accumulation process after a crisis, it is apparent that initially reproduction takes place on a reduced scale. Social production undergoes a contraction. Because of the 'solidarity of the branches of production' the sector in which overproduction first occurs does not matter. Overproduction in the leading sectors involves general overproduction; hence there is no productive accumulation, no expanded reconversion of profit into capital, no increase in the application of means of production. Productive accumulation has ceased. But what happens to individual accumulation and to particular branches of production? Production continues even if it is on a reduced scale. It is just as certain that a large number of enterprises, especially those which are most technically efficient in their own sector and those which operate in sectors producing the basic necessities of life, the consumption of which cannot be too severely curtailed, still make a profit. A part of this profit can be accumulated. But the rate of profit has fallen, and this decline may also reduce the rate of accumulation. Similarly, the total amount of profit has declined, and this too diminishes the possibility of accumulation. Furthermore, while one part of the capitalist class makes a profit, another part sustains losses which must be defrayed from additional capital if bankruptcy is to be avoided. Real production, however, is not expanded during a depression, and if accumulation takes place, it can only be accumulation in the form of money. Where does the money for the accumulating capitalists come from?
