In the quest to make as much money as possible, capitalists actually create the conditions that produce less profit. They create conditions that pay workers less over time which means workers can't afford to buy the goods they produce which means a smaller market for the piggies. They can get around this by expanding into new markets (international business) but that only works for so long. Eventually they can't keep growing and in order for investors to keep making money they have to start cutting costs internally which ultimately hurts the business/economy as a whole.
That's actually a separate issue, crises of overproduction are unique to capitalism because of "anarchistic" production.
Decreasing rate of profit is what happens with "innovation". As you develop the means of production, you increase the productivity of a working hour at the expense of a larger capital outlay in means of production. This creates the conditions for monopoly as the only capitals able to front the money for a profitable enterprise are existing large ones.
Small firms are pushed out because the profitability of a working hour is set by the output of the large manufacturers, so as those small holders fail, their workforces go to work for the large capital for less pay even though their productive output is higher because they're paying for the cost of the initial capital outlay with their surplus value.
In the quest to make as much money as possible, capitalists actually create the conditions that produce less profit. They create conditions that pay workers less over time which means workers can't afford to buy the goods they produce which means a smaller market for the piggies. They can get around this by expanding into new markets (international business) but that only works for so long. Eventually they can't keep growing and in order for investors to keep making money they have to start cutting costs internally which ultimately hurts the business/economy as a whole.
That's actually a separate issue, crises of overproduction are unique to capitalism because of "anarchistic" production.
Decreasing rate of profit is what happens with "innovation". As you develop the means of production, you increase the productivity of a working hour at the expense of a larger capital outlay in means of production. This creates the conditions for monopoly as the only capitals able to front the money for a profitable enterprise are existing large ones.
Small firms are pushed out because the profitability of a working hour is set by the output of the large manufacturers, so as those small holders fail, their workforces go to work for the large capital for less pay even though their productive output is higher because they're paying for the cost of the initial capital outlay with their surplus value.