Monday, August 15, 2011

Was Marx right in the end?

In a recent interview Nouriel Roubini (also known as the prophet of the crisis) said that capitalism could auto-destroy itself when too much capital accumulation takes place and the agregate demand becomes in turn very weak. The original declaration can be seen here:



First I'd like to note that in general any system involving human beings can self-destroy by simply commiting suicide. If somebody wants to give credit to Marx she should prove somehow that capitalism will always lead to a self-destruction stage. My second observation is the focus on consumption that appears in current macro-economics world. We need to keep increasing our consumption in order to match the ever increasing producing capacity and this is the only way we can advance the global GDP (here domestic is planet Earth :). I think the real trap in today's economics is this focus on consumption that creates the demand. We can live a happy life without this exacerbated consumption and in the end this is a matter of what we value, isn't it?

P.S. By comparing the subjective theory of value and labour theory of value one can understand the fallacy of Marxism, but more on this in another post.
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