Profit Upon Expropriation Essay

Length: 2 pages Sources: 1 Subject: Careers Type: Essay Paper: #8502010 Related Topics: Performance Evaluation, Political Parties
Excerpt from Essay :

Political Economy

What is 'Profit upon expropriation?' Why can it not account for the existence of positive profits across the economy?

Profit upon expropriation is juxtaposed against profit by production, where the profit derives from a specific production process. Marx saw profit from expropriation as that which arises from a share of existing cash flows. Thus, owning shares in a company would qualify. For example, Ford makes cars -- that is profit from production. A shareholder in Ford is paid a dividend -- they produced nothing. That is profit upon expropriation (Lapavitsas & Levina, 2011).

This cannot account for the existence of positive profits across the economy, because this is profit that derives from passivity. Profit accrues through the actual production of goods and services, wherein resources are converted into economic activity. The issue with profit upon expropriation is that it does not constitute activity, therefore nothing of value of produced. That somebody can earn profit without producing anything of value is, in fact, not profit at all. It is not a positive profit because nothing positive has been done to earn it. Some might argue that the provision of capital is...


Even someone who accepts this would have to evaluate whether this service is being compensated appropriately by the market system. If not, it still would not be producing positive profit across the economy. However, as noted, Marx rejects the idea that expropriation is true profit because nothing is being produced -- there is no genuine benefit to the economy.

Positive profits across the economy can be generated in a number of ways. This includes the exploitation of natural resources, the provision of services, and the production of goods. All of these reflect some form of labor, and some manner of transformation that results from that labor, to deliver a tangible benefit. Profit upon expropriation simply does not fit this understanding of the nature of profit across the economy.

What are the three types of control capitalist employers can exert over production process?

Capitalist control over production is fundamentally important. In a production process capitalist employers can exert three different ways of control: simple control, technical control and bureaucratic control.

The first type of control capitalist employers can exert over production process is simple control. This type of control is when employers directly supervise workers. Employers motivate workers both by giving rewards and…

Sources Used in Documents:


Lapavitsas, C. & Levina, I. (2011). Financial profit from production and profit upon alienation. Research on Money and Finance.

Cite this Document:

"Profit Upon Expropriation" (2015, April 23) Retrieved January 18, 2022, from

"Profit Upon Expropriation" 23 April 2015. Web.18 January. 2022. <>

"Profit Upon Expropriation", 23 April 2015, Accessed.18 January. 2022,

Related Documents
Expropriation and Compensation of Foreign
Words: 6406 Length: 25 Pages Topic: Economics Paper #: 7725717

The State is just taking back its rightful property under the contractual obligations of the agreement signed between the host State and the foreign investor who' assets are being seized in the expropriation. Another cause for direct expropriation is the concept that the State will in some way gain financially, socially, or economically from the expropriate assets beyond their value of compensation. If a particular investment can generate more

Antigua Guatemala Coffee
Words: 5779 Length: 18 Pages Topic: Business Paper #: 30151335

Antigua Guatemala Coffee Antigua Guatemala International (AGI) will be a manufacturer and exporter of Guatemalan coffee to Japan and the global. AGI will use a new system in the food and beverage industry to offer Antigua Guatemala coffee in a time-efficient and convenient way. AGI will provide vendors, retailers, and cafes with the ability to buy freshly brewed Antigua Guatemala coffee. It will be a high quality option to the institutional

Foreign Market Determine Which Institutional and Risk
Words: 1872 Length: 6 Pages Topic: Business Paper #: 21417696

Foreign Market Determine which institutional and risk factors must be considered and whether they support entry or not. The company needs to evaluate critically the risks and institutional factors before deciding on entering the foreign market. The institutional and risk factors must be relevant to the ambitions and expectations of the company. Institutional factors constitute three principal aspects. The first aspect of institutional factors is the political institutions for instance the

Strategic Management the Case for Diversification Deltacom/Earthlink...
Words: 1611 Length: 5 Pages Topic: Business Paper #: 73633595

Strategic Management The Case for Diversification Deltacom/Earthlink is facing a challenging operating environment. As a regional player in an intensely-competitive market, we face an uncertain future. We acquired Deltacom in order to facilitate future growth, but a quick look at our financials indicates that our growth has flatlined and our profits declined to almost nothing last year (MSN Moneycentral, 2013). One of the issues is that there was considerable overlap between Earthlink

Reputation of Insurers in the
Words: 5779 Length: 21 Pages Topic: Business Paper #: 98283904

" China's undeveloped market limits investment returns potential and express insurance to a risk in investment. (Beijing Review, 2005) A plan for compulsory malpractice insurance was stated by the Beijing Insurance Regulatory Committee in June 2005 under a directive requiring all state-owned non-profit making medical organizations to have coverage under medical mal-practice insurance. Interim rules were also reported to be set for allowing insurance funds to enter the stock market. Those

Structure Constrains Growth Bounded Rational
Words: 2848 Length: 8 Pages Topic: Business - Management Paper #: 59638757

404). They found that complexity especially in hierarchical organizations strongly determines success of design choice outcomes, especially when endogenous adaptation in different modules delivers "local performance improvement" (Ethiraj and Levinthal, 2004, p. 404). This is based on H.A. Simon's 1962 model of organizations, products and technology as complex, evolving systems where some choices constrain decision-making in the lowest levels, and also "near-decomposability" (Ethiraj & Levinthal, 2004, p. 404), the