The Second Brenner Debate

Brenner believes that the decline in profitability that began in the mid-1960s was rootedin overcapacity and overproduction caused by intensified international competition in the manufacturing sector. The reason why the decline in profit rate caused by excessive competition has been delayed in recovery is mainly due to insufficient exit and excessive entry into the production sector with oversupply. Brenner criticized the supply-side explanation for only focusing on the “vertical” relationship between capital and labor, underestimating the “horizontal” relationship between capital and the resulting economic contradictions. Critics argue that the linear explanation of attributing the decline in profit rate to international competition is seriously flawed and cannot place labor relations at the center of capitalist historical narratives a priori. This article systematically reviews the debate surrounding Brenner's “Theory of Excessive International Competition” and summarizes it as “The Second Brenner Debate”.