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View Diary: Anti-Capitalist Meetup: Austerity, Triple Dip Recessions and Economic Crisis (79 comments)

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  •  in all cases (3+ / 0-)

    except where Smith, Ricardo and Marx were discussing the "early and rude state" or the "state of Nature" or simple comodity production, they were discussing the capitalist economic system. In the cases of the former, while they recognised the problems in the system (low incomes and demand in Smith; the impact of the introduction of machinery on wages and employment in Ricardo), they still maintained that the system in spite of crises would provide for all until it finally crashed. Marx in Capitaldescribed the laws of motion that led to constant economic crises and the long-run tendency towards a falling rate of profit (again, only a tendency). So while in the advanced capitalist world the rate of profits in manufacturing and industry is low, the cheaper raw materials, the low wages and the high rate of exploitation enables higher profitability in those sectors. That is why they moved to the capitalist periphery and the emergent economies.

    The destruction of incomes of the majority in the advanced capitalist world in a period of low growth is part of an attempt to keep up profitability while waiting for China, India and Brazil to take off. Meanwhile, wages (and the social welfare states) there are still low or only developing and in the advanced capitalist world they are destroying everything that people fought so long for and the majority while not necessarily buying into the argument are resigned and see no way out; the lie that bourgeois democracy provides representation for all in system are being rapidly disproved.

    "Hegel noticed somewhere that all great world history facts and people so to speak twice occur. He forgot to add: the one time as tragedy, the other time as farce" Karl Marx, The Eighteenth Brumaire of Louis Bonaparte .

    by NY brit expat on Sun Jan 20, 2013 at 01:01:20 PM PST

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