[Marxism] Robert Fitch: only Marxism can explain the financial crisis

[Charles Brown <cdb1003@xxxxxxxxxxx>]

Robert Fitch: only Marxism can explain the financial crisis


"As far as what drove the boom and what caused 
the bust, it's the rate of exploitation that's the dog. The savings rate is the 
tail."

^^^^
CB: And it is exploitation that 
impoverishes and restricts the consumption
of the masses. Workers are not paid
enough to buy all that they make.


For the economists, the financial markets determine the markets for 
commodities. Any nation could have a giant trade surplus; it's ultimately just 
a policy choice about savings behavior. The country with the giant surplus just 
happened to be China. Utterly ignored is the fact that trade surplus/ capital 
glut could never have formed without staggeringly high rates of labor 
exploitation in the strict Marxian sense: the ratio of value added by labor 
divided by wages.32 As far as what drove the boom and what caused the bust, 
it's the rate of exploitation that's the dog. The savings rate is the tail.

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