So Karl Marx, it seems, was partly right in arguing that globalization, financial intermediation run amok, and redistribution of income and wealth from labor to capital could lead capitalism to self-destruct (though his view that socialism would be better has proved wrong). Firms are cutting jobs because there is not enough final demand. But cutting jobs reduces labor income, increases inequality, and reduces final demand.If the best minds in the very center of Wall Street cannot find a better ideology than Marx's Capital, what will be of us?
Recent popular demonstrations, from the Middle East to Israel to the United Kingdom, and rising popular anger in China—and soon enough in other advanced economies and emerging markets—are all driven by the same issues and tensions: growing inequality, poverty, unemployment, and hopelessness. Even the world's middle classes are feeling the squeeze of falling incomes and opportunities.
Thursday, August 18, 2011
Marx is Not Dead
Prof. Nouriel Rubini is one of America's most salient economist. For a change, he is not an Ashkenazi but an Oriental (Persian) Jew. He has read Karl Marx's Capital and now we discover that he is a Marxist. Writes: