A friend who like me, has retired from work, sent me this quote:
Owners of capital will stimulate working class to buy more and more of expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks which will have to be nationalized and State will have to take the road which will eventually lead to communism.
Karl Marx, Das Kapital, 1867
Is that what happened in the United States of America recently?
The banks are near bankruptcy now and the governments have to bail them out to save a financial crash. The nationalization has not happened yet and is not likely to happen although the governments are dishing out cash with strings attached and need of reporting.
Today, I saw the public admission of guilt of the President of the City Bank group regarding the lavish expenses which the company were supporting whilst on the other hand begging the Government for help. He has since cancelled the order of the executive jet and the executives are now travelling with commercial aircraft.
I do hope that the incentive package of Obama gets through and more importantly the world economy would be back in better state.
3 comments ↓
May be you should read The Capital first! When you find it, call us.
You can find the general idea of economic cycles.
Most importantly he actually says that capitalists will become even richer after each crisis… so I don’t see how it can lead to Communism.
Marx was not a Communist. He made observations on the distinction between the means of production (Labor vs. Capital) and the outputs which they produce.
His conclusion was that Capital produces higher but more variable profits; where Labor produces more steady stream of profit (Income). The biggest force behind Capital is that it can reinvest it’s Profit in other productive resources and thus make more profit. Labor at that time had no means of reinvesting it’s profit. Thus he concluded this would lead to greater social disparity and problems.
Marx has been misused by Lenin for his own needs!
This hoax clearly shows him being misused today by people having some fun with the ignorance of the Masses again!
That’s the real beauty of Communism: exploiting the intellectual ignorance and critical thought inability of the Labor masses.
The Credit Crisis in the Financial System which started in 2007 was the result of the Democratic President Clinton who wanted everybody to be able to buy a house, whether they could pay for it or not! So he signed a bill ordering financial institutions to ALLOW people who normally could not afford to let them buy a house. The financial institutions sow this as a risk to themselves, so they differed the risk by creating investment products which they sold to investors.
Capital is currently not releasing anymore money into the Economy as long as it feels that it would not return any Profit. This is how it became a Financial System crisis.
If the Economy, which needs credit doesn’t receive it, it goes into contraction and Recession.
Today the US government is paying for its own mistake… not for that of Capital!
The American Dream… many have awaken to the reality: there is no free lunch!!!
“An over-expansion of credit can enable the capitalist system to sell temporarily more goods than the sum of real incomes created in current production, plus past savings, could buy, but in the long run, debts must be paid†Since these debts cannot be automatically paid through expanded output and income, capitalism is destined for a “Krach†– Marx’s word for a crash.
Marx set out his thoughts not only in Das Kapital but in articles such as “The Financial Crisis in Europe†which was written for the New York Daily Tribune in 1857, and in the Communist Manifesto, which was written with Engels.
In the manifesto, published in 1848, he lists the ten essential steps to communism. Step five was: “Centralisation of credit in the hands of the state. . .â€
That Marx quote is a HOAX. It has been repeatedly debunked on the web. Marx never said anything close to that in Capital, or anywhere else. Tip off – there was no such thing as consumer “technology” in 1867. The scenario imagined in this quote has nothing to do with Marx’s thoughts on the transition from capitalism to socialism, it is a fabricated quote designed to scare people.
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