Average Unemployment High as Rate of Profit Continues to Stagnate

After the Great Recession, there has remained a historically high duration in unemployment. Even seven years past the event, the U.S. still suffers from long periods of unemployment. Ideas surrounding the solution to this problem remain scarce.  The Fed’s interest rate is still at a near historical low. Economists see little positive effect in lowering…

How Real Estate Credit Bubbles Lead to Crisis

How is finance killing the economy? Credit is a powerful tool of capitalism. It can be used to stimulate economic growth, or it can be used to deter capital investment by shifting money creation into the Finance, Insurance, Real Estate (FIRE) sector. The latter will inevitably cause the economic system to go into crisis.

Overtime Work and High Unemployment: An Explanation

Very soon I’m going to put out a book which attempts to explain Marxist economics in as simple a way as possible. This book I’m going to offer for free as an ebook, only requiring payment to obtain a physical copy. I’d like to share a portion of it now to answer a question that…

Why Protectionism Won’t Work This Time

A good deal of the bourgeoisie, left and right, have begun talking about protectionism again. Most well known is of course Donald Trump who has been invoking images of 1950’s America when the father could support his whole family on a single income.[1] This has also begun to appear in Australia with the Labour Party.[2]…

From Marx to Goldman Sachs: The Fictions of Fictitious Capital

As published in Critique, based on a presentation given at the China Academy of Sciences, School of Marxist Studies in Beijing in November 2009, and at the Left Forum in New York City, March 20, 2010. Classical economists developed the labor theory of value to isolate economic rent, which they defined as the excess of…

Why “Real” Capitalism Can Never Exist

Introduction We’ve often heard the phrase “that’s not real capitalism” used as a denial for all the undemocratic, horrible, inhuman things capitalism does. Anytime capitalism does something horrible the excuse is made that a “real” free market wouldn’t have done it. This is usually accompanied by all manner of false claims about how the government…

The Class Nature of Hipster Economics

As manufacturing has left the urban center and pretty much everywhere else, the lack of jobs is creating a severe gap in value generation. This leads to lower incomes for First World working and middle class people which translate to a lack of taxable income. This lack of tax revenue is causing many cities infrastructure…

Did Paul Krugman Admit Exploitation?

It’s wonderful to see a mainstream economics man like Paul Krugman come across a Marxist criticism by accident. I’m not surprised its Krugman who does it, he seems to be a hell of a lot more honest than just about anyone out there in the media. I found this statement in his book End This…

Lessons Lost In The Sequester

There is something that those who lend money have learned over the years. If you physically punish someone who owes you an outstanding loan, you severely restrict their ability to pay it back. This is why certain measures in society were done away with like poorhouses and debtors prisons. (Interestingly the mafia never came to…