A critique of crisis theory (original) (raw)

Abstract

Using Marx's method to understand how and why capitalism continues to have crises with such regularity.

Key takeaways

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1. Marx's crisis theory highlights capitalism's periodic crises, rooted in overproduction and environmental incompatibility.
2. Capitalism's historical limitations lead to inevitable crises, exacerbating centralization and monopoly.
3. The 2007-08 recession marks a significant turning point, indicating worsening future downturns.
4. Conflicting theories, including the tendency of the rate of profit to fall (TROPF), diverge from Marx's original overproduction analysis.
5. Engels identified periodic crises as collisions between production capacity and market growth limitations.

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FAQs

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What explains the relationship between capitalism and environmental crises?add

The research highlights capitalism's drive for profit maximization leads to an ecological incompatibility, posing a systemic crisis. This pattern intensifies further with each economic crisis, culminating in larger, more destabilizing upheavals.

When did Marx's views on crisis theory evolve significantly?add

Marx's systematic treatment of crisis theory evolved across his works, notably in Capital, with insights scattered throughout volumes. Notably, he indicated cyclical crises as rooted in overproduction by 1848, during the Communist Manifesto.

How do conflicting crisis theories diverge from Marx's original concepts?add

Two contemporary Marxist schools focus primarily on the tendency of the rate of profit to fall, diverging from Marx's overproduction framework. Marx identified overproduction crises as primary from the outset, contrary to modern interpretations.

What role does gold play in Marx's labor theory of value?add

Marx posited that a measure of value must itself be a commodity, with gold fulfilling this function due to its properties. The production trends of gold counter-cyclically influence capitalism, affecting value, price, and profit dynamics.

Why do some modern Marxists overlook overproduction in crisis explanations?add

Modern interpretations, particularly influenced by Keynesian thought, focus on under-consumption crises rather than overproduction. Many Marxist theorists have adapted their frameworks, leading to a neglect of the original emphasis on overproduction.