Mainstream Economist: Marx Was Right. Capitalism May Be Destroying Itself | AlterNet: "Karl Marx had it right. At some point, Capitalism can destroy itself. You cannot keep on shifting income from labor to Capital without having an excess capacity and a lack of aggregate demand. That's what has happened. We thought that markets worked. They're not working. The individual can be rational. The firm, to survive and thrive, can push labor costs more and more down, but labor costs are someone else's income and consumption. That's why it's a self-destructive process."
The "mainstream economist" is Roubini. As I've said in the past, the "immiseration of the proletariat" was not supposed to happen because "a rising tide lifts all boats." The latter was true when there was some modicum of decency governing what management and traders took out of their companies and the economy. No longer.
The big question now is whether the nation-state has the ability to tell multinational corporations what to do, or will they be blackmailed with threats to "do what we say or we'll take it all offshore."
That's where the front lines are.
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