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In a scale of 1-10, Karl Marx would rank as high as 8/10; much of his work laid the very foundation of the modern understanding of the relations between labor and capital; more than any other time in history, his accuracies about the history of Capitalism to its eventual…
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Download file to see previous pages... the end of capitalism would be brought about by the insatiable chase for higher profits, which has more than led to the never ending replacement of humans [workers] with machines, leaving thousands of the populace unemployed. Indeed as the share of profits rises for the capitalists, the share of wages falls, in effect, decreasing the capacity of the masses to buy the goods capitalism produces. The data for the ever increasing income inequality alongside the weakening aggregate demand is but readily available.
Q4. Using the creative destruction”, Schumpeter argues that the failure of capitalism is internal rather than external as Karl Marx had contended. Using the phrase “creative destruction”, Schumpeter was categorical that capitalism creates its enemies from within the very elites rather than from the Marxian impoverished masses. As rightly predicted, the most radical environmentalists championing for the capitalism with a human face in the 21st century, for instance, are but socialist children of the very capitalists.
Keynes differed with the classical theorists in that while the latter believed that such markets should be self-regulating, with supply creating its own demand [Say’s law] and prices and wages adjusting when necessary to keep the said markets in a state of equilibrium, he [Keynes] argued that such markets need a hand from the government to run properly and to attain agreeable employment levels and sustained economic growth, for prices and/or wages rigid/sticky downwards, and so are the very causes of recessions and high unemployment rates.
An early defender of Keynesianism, Marriner Eccles advocated and actually took a direct role in the introduction of the expansionary fiscal policies in the Fed right after the Great Depression, virtually fixing interest rates at low levels to revitalize demand through constant borrowing from the Treasury as a result of the lowered interest rates.
Anglo-Saxon Capitalism relies heavily on free market ...Download file to see next pagesRead More
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