Small capitalists go bankrupt, and their production means are absorbed by large capitalists. During the process of bankruptcy and absorption, capital is gradually centralized by a few large capitalists, and the entire middle class declines. Thus, two major classes, a small minority of large capitalists, and a large proletarian majority are formed. The proletarian masses, however, will finally unite and overthrow capitalist society. Today, automatic production machinery has appeared and is producing enormous profit.
Machinery is undeniably variable capital.
On the contrary, labor power is relatively becoming constant capital. In this way as capital develops, the rate of profit increases. But because of the increase of wages and the rate of progressive taxation, the individual income of a capitalist tends to diminish. But even though the rate of profit increases, a proper economic policy and also a great spiritual reformation are required to prevent the improper distribution of profit. History after Marx plainly proves that this law is erroneous.