You See The Crisis Brewing: Earned Income Is Under Pressure And Labor Is In Structural Decline… Once Their Ability To Service More Debt Vanishes, So Does Demand For Goods And Services.
July 12th, 2013
by Charles Hugh-Smith
The crisis of capitalism has not been resolved; it’s simply been papered over.
First, a disclaimer: this is an interpretive discussion of some aspects of Marx’s analysis (which was based on the capitalism he observed in the late 19th century) applied to present-day cartel-state capitalism. It is not a scholarly or academic presentation.
The discussion covers a lot of ground, though, so please refill your beverage container and strap in….
That Marx’s prescription for a socialist/Communist alternative to capitalism failed does not necessarily negate his critique of capitalism. Marx spent hundreds of pages analyzing capital and capitalism and relatively few sketching out a pie-in-the-sky alternative that was not grounded in historical examples or working models.
So it is no surprise that his prescriptive work is an occasionally risible historical curiosity while his critique stands as a systemic analysis.
Marx got a number of things right, one of which appears to be playing out on a global scale. You probably know that Marx expected capitalism to experience a series of ever-larger boom-bust cycles that would eventually precipitate revolution and overthrow of the existing financial-political order.