Technologies like AI contribute to automate the production of goods and services by substituting for human labor. Capitalists invest in developing technologies in order to obtain more profit and larger profit rate. However, the profit rate has gradually fallen in many countries during the last several decades. Through the empirical study for 6 countries during 1950-2019, this paper shows that the main reason for the falling rate of profit is the technological progress.
ACKNOWLEDGMENT This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MSIT) (no. RS-2023-00242022).
