[Marxism] Fwd: Too much profit, not too little? | Michael Roberts Blog

Louis Proyect lnp3 at panix.com
Sun Nov 8 06:34:24 MST 2015

Most years I attend the London conference of the Historical Materialism 
journal.  This brings together academics and others to present papers 
and discuss issues from a generally Marxist viewpoint.  This year I 
presented a paper on whether rising inequality causes crises under 
capitalism (Does inequality causes crises).  My session was well 
attended and the audience included many of the small band of Marxist 
economist s around at the moment.

The gist of what I said was this.  Rising inequality of income and 
wealth in the major economies has become a popular thesis among both 
mainstream and heterodox economists.  The thesis is founded on the 
arguments that wages as a share of GDP have been falling in the major 
economies. This creates a gap between demand and supply, or a tendency 
to underconsumption.  That gap was filled by an explosion of debt, 
particularly household debt.  It is also encouraged financial 
institutions to engage in riskier financial investments that exposed 
them to eventual disaster.  The credit boom fuelled a housing bubble but 
eventually that burst and the house of cards came tumbling down.  QED?


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