An Analysis of the Consistency of Raising Labor Income Share and Raising Economic Growth Rate: Based on Marx's Social Reproduction Formula

This paper refuted the theory of labor income share and capital income share in western economics, and used Marx's formula of social reproduction to conduct normative research on labor income share and capital income share. Three factors that affect the labor income share and capital income share in the social reproduction were clarified. They are the capital organic composition of the two major categories, the ratio between the two, and the surplus value accumulation rate of the whole society. The relationship of economic growth rate with labor income share and capital income share was obtained, by taking capital accumulation as the link between labor income share/capital income share and economic growth.On this basis, it was analyzed and tested that the consistency of raising labor income share and raising economic growth rate, and that priority growth of means of production is the common path to raise the both. With the help of an example in Marx's “Das Kapital”, the author verified the consistency of raising the both.