“Before I speak, I have something important to say.”
–Groucho Marx
In a clip from a longer interview with WSJ’s Simon Constable, Dr Nouriel Roubini claims Karl Marx was right about capitalism eventually destroying itself. While not quite yet at the breaking point, Roubini observes, we are headed down the road to disaster as predicted by Marx.
Roubini echoes my view that debt reduction and restructuring is the only way to restore real growth to the US and other economies. Breaking up a few zombie banks and cartels probably would not bother him either. But let’s focus on Roubini’s somewhat provocative comment that Marx correctly predicted the present global debt bust and economic deflation.
When I hear people talking about Marxism in reverent tones it makes me nauseous. Marx was not right at all about class being the key determinant of human action. Yet despite America’s pretensions to being a free market, democratic society, the Marxian world view won the battle for ideas in the 20th Century. The New Deal and Great Society efforts to increase the scope of government in America all stem from the socialist ideas of FDR and his political heirs in both parties.
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