https://en.wikipedia.org/wiki/Capital_accumulation#Over-accumulation_and_crisis https://en.wikipedia.org/wiki/Capital_accumulation#Over-accu... > Over-accumula

https://en.wikipedia.org/wiki/Capital_accumulation#Over-accumulation_and_crisis https://en.wikipedia.org/wiki/Capital_accumulation#Over-accu... > Over-accumulation and crisis > The Marxist analysis of capital accumulation and the development of capitalism identifies systemic issues with the process that arise with expansion of the productive forces. A crisis of overaccumulation of capital occurs when the rate of profit is greater than the rate of new profitable investment outlets in the economy, arising from increasing productivity from a rising organic composition of capital (higher capital input to labor input ratio). This depresses the wage bill, leading to stagnant wages and high rates of unemployment for the working class while excess profits search for new profitable investment opportunities. Marx believed that this cyclical process would be the fundamental cause for the dissolution of capitalism and its replacement by socialism, which would operate according to a different economic dynamic.[9] > In Marxist thought, socialism would succeed capitalism as the dominant mode of production when the accumulation of capital can no longer sustain itself due to falling rates of profit in real production relative to increasing productivity. A socialist economy would not base production on the accumulation of capital, instead basing production on the criteria of satisfying human needs and directly producing use-values. This concept is encapsulated in the principle of production for use.