[Marxism] Economic Stagnation, Mass Unemployment, Budget Deficits and the Industrial Cycle

Mike Treen mike at unite.org.nz
Sun Feb 17 15:50:39 MST 2013

I think this post from the Critique of Crisis Theory blog reflects
something of a theoretical breakthrough in both clarifying what triggers
every crisis of overproduction and explaining that overproduction has been
progressively accumulating across all the industrial cycles since Keynesian
"stabilization" policies were implemented, making a "super-crash" down the
road virtually inevitable.

Mike Treen


*As I explained last month, though the world capitalist economy is still in
a stagnation phase five years after the start of the “Great Recession,”
there is no reason to think this condition is permanent. Capitalism knows
no permanent economic state, whether boom, crisis, depression/stagnation or
average prosperity.*
*Instead, the condition of the world capitalist economy constantly changes
as the tendency of the industrial capitalists to expand production without
limit periodically collides with the much slower growth of the market for
the commodities produced. The result is a vicious circle of boom and bust,
what Marx called the industrial cycle.*
*The current economic situation, however, does exhibit unusual features
that cry out for an explanation. The most important is the severity of the
preceding crisis followed by a—so far—very weak recovery. This is indeed
unusual, perhaps unprecedented, in the history of capitalist industrial
cycles. In the past, sharp recessions that liquidated a lot of inventory
were followed by strong initial recoveries as business moved to rebuild
depleted stocks.*
*To read the full Blog go to:*

Mike Treen
National Director
Unite Union
09 215 3392
029 5254744

More information about the Marxism mailing list