Monday, September 15, 2014

Nouriel Roubini vs Karl Marx

Karl Marx oversold socialism, but he was right in claiming that globalization, unfettered financial capitalism, and redistribution of income and wealth from labor to capital could lead capitalism to self-destruct. 

As Marx argued, unregulated capitalism can lead to regular bouts of overcapacity, under consumption, and the recurrence of destructive financial crises fueled by credit bubbles, and asset-price booms and busts.