[Marxism] Fwd: Excessive credit, rentier capital and crises | Michael Roberts Blog

Louis Proyect lnp3 at panix.com
Mon May 29 05:22:17 MDT 2017

The key omission in this view of crises is any role for profit and 
profitability – which is after all the core of Marx’s analysis of 
capitalism – a mode of production for profit not need.  Profit is 
missing from Keen’s analysis.  Indeed, Keen considers Marx’s theory of 
value to be wrong or illogical, accepting the standard neo-Ricardian 
interpretation and Marx’s law of the tendency of the rate of profit to 
fall as being irrelevant to a theory of crises.  Hudson has nothing to 
say about Marx’s key insights.

The post-Keynesians rely on the Keynes-Kalecki equation, namely that 
profits = investment, but it is investment that drives or creates 
profits, not vice versa, as Marx would have it.  This view recently 
reached its extreme in another relatively new book, Capitalism as 
Oligarchy, by Jim O’Reilly, where, similar to the view of leading 
post-Keynesian, Engelbert Stockhammer, that is rising inequality that is 
decisive to crises rather than profitability of capital, O’Reilly argues 
that “inequality isn’t a side-effect of something we happen to call 
‘capitalism’ but is rather the core of what the system is”.


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