This typically occurs as capitalists invest in the temporary efficiency of machinery rather than labor power. As labor power is the ultimate force of value, a lack in this sector enables a decrease in existing profits. In addition, a lack of labor power will decrease employment within the economy. As this idea is further developed, Marx concludes that fluctuations in lower wages, exploitation, cheapened capital, growing populations and foreign trade act as byproducts to the falling rate of profit. Although many recognize this as problematic, Karl Marx states that capitalists will not stray from this cycle for two reasons. The first entails that capitalists are dependent on any believed gain of profit and will utilize machinery as a temporary use of extra productivity and finally, the second holds the belief that the less labor power used, the lower number of hours needed for production and therefore, produces a greater amount of daily …show more content…
If this occurs, many industries may be at risk of falling profits, business failure and decreasing the national rate of employment. In order to avoid such issues, the Canadian economy must recognize the theory of capital accumulation and implement regulations on the substitution of labour power within the economy. This act would not only stabilize the economy but additionally, the labour force. Criticisms of this theory express that although these claims may be true, capitalism is often accompanied by rises consistent to economic growth. However, as the counter-argument is theoretical and exceptions may occur, Canada should remain cautious and implement policies which limit the use of machinery and set minimum standards on the use of labour