Re: What is Marx's view of fiscal policy ?

[Fred Moseley <fmoseley@xxxxxxxxxxxxx>]

> Charles Brown wrote 29 May 2007
>
> CB;
> . . . Has it been mainly in the U.S. that
> crises have been smoothed over, and long term rate of profit raised ?

I think most of the advanced countries have had a significant recovery
of the rate of profit..

> . . .
> Does the almost complete recovery of the long-run rate of profit without
> a serious depression and devaluation of capital depend in part on the
> gouging of the Soviet Union and Eastern European economies when they were
> opened up for looting ? And the opening up of the "Non-Aligned" countries
> similarly to be looted in neo-liberal imperialism ?

Yes, especially because it opens up new areas of low wages.


> I know it's a big debate, but Marx says both that the law of the tendency of
> the rate of profit to fall and inadequate demand from the masses of
> consumers/wage-laborers explain/cause crises ? With wages falling over the
> period you mention, how were profits _realized_ ? Does the current financial
> regime "print" the money , effectively , to pay and realize the profits ?

Consumption has been maintained by unprecedented levels of debt.  An
important question now is whether that can be maintained.

Comradely,
Fred

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