Karl Marx Was Right

Karl Marx Was Right

We can’t say Karl Marx didn’t warn us: capitalism contains the seeds of its own destruction. In their chase for ever higher profits, the capitalists shed workers for machines. The higher return on capital means that the share of profits rises and the share of wages falls, and soon the mass of the population isn’t earning enough to buy the goods capitalism produces. And that’s exactly what’s been happening over the past four years of the Great Recession: ever increasing income inequality, leading to ever weaker aggregate demand – temporarily disguised by an unsustainable credit binge – leading to collapse. You don’t have to be a communist to see that this is so. We should all be Marxists now. Or should we? Every time capitalism hits an inevitable bad patch, Marx’s name is invoked with wearisome regularity. But no serious economist or political thinker – with the possible exception of Gordon Brown – has ever suggested capitalism can break free of booms and busts. Once bust, as we’ve seen time and again, the... Support this show http://supporter.acast.com/intelligencesquared. See acast.com/privacy for privacy and opt-out information. Learn more about your ad choices. Visit podcastchoices.com/adchoices

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