The definition of surplus, as developed in Chapter 3, was calculated for Jamaica in the preceding chapter. It was shown there that the surplus--measured as Surplus II or Surplus III--increased significantly during the 1960s ,and 1970s (cf. Table 5.4). One possible explanation for this would be the Baran ( 1957) hypothesis of an increasing degree of monopoly capitalism. According to this hypothesis, the surplus increases as per capita incomes grow because markets (for commodities as well as for factors of production) become distinguished by increasing imperfections--monopoly on commodity markets and monopsony on factor markets. In addition, economic growth, according to Baran is, more often than not, characterized by a declining share of the employed labor force working in productive (i.e., surplus-generating) activities and the gap between the productivity and the wage of the productive labor force widens. Hence, according to Baran, increasing monopoly capitalism occurs when per capita incomes increase and this is reflected, inter alia, in an increasing share of the surplus being allocated to capitalists in the form of increasing profits.
However, in Jamaica profits fell more or less consistently between the late 1960s and the early 1980s, 1 which would not seem to indicate any increase in the degree of monopoly capitalism (at least not in Baran's sense). Furthermore, as noted in Chapter 5, the relatively rapid increase for most years of the 1960s of per capita incomes as well as of profits was in the 1970s turned into a deep and long recession. Per capita incomes--and for some years, even GDP--fell while the functional shares of GDP remained virtually constant, thus indicating that different classes in society carried their part of the burden of stagnation. One of the major points of Chapter 5, however, was that profits as share of Surplus II and Surplus III declined systematically throughout the 1970s: as Table 5.4 shows, the share of profits in Surplus III declined from approximately 39 percent in 1962-66 to 26 percent in 1977-81. This phenomenon was