ACCUMULATION AND TECHNICAL CHANGE - MARX REVISITED

There are three mechanisms of accumulation and technical change in Marx's approach. One is accumulation within a given technological and organizational framework, along a given growth path. This is what brings increasing masses of more efficient machines. The second consists of short-term dips below the normal growth path, due to disappointed expectations. These two mechanisms are the basis of Marxian growth theory. The third mechanism causes shifts in the growth path. These shifts, which are beyond the explanatory power of the theory, in large measure determine whether a society is rich or poor. As a theorist Marx makes behavioral assumptions that do not explain how and why major technological and organizational shifts take place, a characteristic he shares with contemporary neoclassical growth theorists. The shifts are caused by institutional factors, which are hinted at by Marx the historian but play no role in the theoretical scheme. We can learn from the mistakes of Marx the theorist, and from the observations of Marx the historian.