Here is what the unscientific and illogical Marx has to say, I quote Ernest Mandel: Ernest Mandel, Karl Marx (1990), John Eatwell, Murray Milgate & Peter Newman (eds.), Marxian economics, London 1990, p.1-38 "Marx visualised the business cycle as intimately intertwined with a credit cycle, which can acquire a relative autonomy in relation to what occurs in production properly speaking. An (over) expansion of credit can enable the capitalist system to sell temporarily more goods that the sum of real incomes created in current production plus past savings could buy. Likewise, credit (over) expansion can enable them to invest temporarily more capital than really accumulated surplus-value (plus depreciation allowances and recovered value of raw materials) would have enabled them to invest (the first part of the formula refers to net investments; the second to gross investment). But all this is only true temporarily. In the longer run, debts must be paid; and they are not automatically paid through the results of expanded output and income made possible by credit expansion. Hence the risk of a Krach, of a credit or banking crisis, adding fuel to the mass of explosives which cause the crisis of overproduction." Your system is bankrupt. The only question is what is going to replace it.
Posted on: Tue, 13 Aug 2013 08:16:01 +0000
Trending Topics
Recently Viewed Topics
© 2015