rate of profit

What's wrong with the Keynesian answer to austerity?

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As austerity measures bite while the economy continues to flatline, arguments for a Keynesian response to the recession are gaining traction. Marxist economist Michael Roberts casts a critical eye over the Keynesian case, arguing that it misunderstands the causes of capitalist crisis

A new radical think-tank kicked off last year in the UK. It's got a great name: Class: the Centre for Labour and Social Studies. Sounds socialist, even Marxist, doesn't it? Unfortunately, at its first meeting the speakers, especially the economists, were all Keynesians. All the arguments against austerity were Keynesian. Apparently, a Marxist analysis has no contribution to make in explaining the Great Recession and the ensuing long depression - or what to do about it.

Can Marxism explain the crisis?

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Recent panic in the stock markets has led some commentators to ask whether Karl Marx might have been right after all. Bill Dunn explains some of the core ideas at the heart of Marx's understanding of capitalism and shows how they can be used to explain the system's current crisis

Worries that banks might not get the returns they expected from lending to Greece and other states have provoked a fresh round of stock market panic. The International Monetary Fund (IMF) has downgraded its global growth forecast for 2012 to 4 percent. By coincidence, this is exactly the same figure that in October 2008 it predicted for 2009. It had no idea, even after it had begun, that we were in for a spectacular contraction.

Tories declare war

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The Con-Dem coalition has launched an all-out assault on the public sector and the welfare state in the name of reducing the budget deficit. What will be the impact of these austerity measures? Judith Orr looks at the risk of a double dip recession - and the possibilities of resistance.

It started with the banks going bust and ended up with closing playgrounds. Or as Tory education secretary Michael Gove put it, "Play has to make its contribution to tackling the deficit." Today the economic crisis is being played out in the lives and meagre budgets of millions of ordinary people in Britain as the sheer scale of attacks planned by the government starts to become concrete.

The value of money

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How do the billions wiped off the stock market relate to the rest of the capitalist system? Joseph Choonara goes back to Karl Marx to explain.

Pity money. Over recent months it has been "injected" into markets, "destroyed" in financial meltdowns and stock market collapses; it has been "devalued" and "revalued" and passed along the increasingly unfathomable webs spun by capital.

Economic crisis: Capitalism exposed

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Every time economic crises develop they are described as aberrations in an otherwise rational and balanced system. Chris Harman looks at the roots and implications of the recent credit crunch, and explains why crises are in fact an intrinsic feature of capitalism.

"Investors are no longer worried whether certain banks have enough cash. They are worried about the risk of a US or even a global recession." So the Financial Times summed up the fear of those who live off capitalist profits on 18 January.

Mainstream economic commentators agree on one thing: the crisis that began in one section of the financial system last summer could be about to create chaos through much of the capitalist system which they support.

Rate of profit warning

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No one can predict whether the recent financial crises will develop into a proper recession.

Some have hailed China's economic expansion and the development of computer technology as potential saviours of the world economy - Karl Marx would have disagreed.

The mainstream economic commentators have all been revising their calculations since the monetary crisis caused by lending to "subprime mortgages" broke in August. Alan Greenspan of the US Federal Reserve Bank thinks the odds on a recession next year have risen to about 50-50, and the International Monetary Fund seems to at least half agree.

No Time for Misplaced Optimism

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Is the recession coming to an end? Chris Harman is sceptical.

Soon after Greg Dyke took over as head of the BBC he decreed that its coverage had to be much more friendly towards big business. One consequence of this is a second god slot in the 'Today' programme--only the god this time is not called Jehovah or Allah but money. The slot, for those of you who don't get up so early, runs from 6.15am to 6.25am, when it gives way to the lesser god of sport. One message comes blaring through, day after day. There is no need to worry about the economic crisis. It never hit Britain, and if it did it's already over, not just here but in the US as well.

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