Wednesday 21 September 2011

Prepare for Marx's four horseman as the end of capitalism fast approaches

Great post yesterday from Chris Dillow over at Stumbling and Mumbling who believes that Karl Marx's Final crisis of capitalism has arrived.

According to Chris,the four features which Marx predicted are upon us.

Just to remind you they are

1.The rate of profit would fall, reducing the motive to invest and producing slower growth and bigger recessions.

2.Low returns on real assets would lead to speculative bubbles and swindles and hence financial crises.

3.Increased inequality would exacerbate economies’ propensity for crises, by creating a mass of people too poor to buy the goods which capitalism produced.

4.capitalism would cease to be a means for developing the economy’s productive forces and become instead a barrier to their development

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