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Crisis and conflict are inevitable in capitalist economies.

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Introduction

PECO1000 Student no. Z3220293 Marx debate. Week 6 Najah Ayoub Written Report Crisis and conflict are inevitable in capitalist economies. 'Marx believed that capitalism was doomed, and he developed an intricate analysis of the ' law of motion' of capitalist society to prove it' (Fusfeld 2002, p 50). At one level his argument had a moral basis. He argued that the 'inherent injustices of capitalism lead ultimately to social and economic conditions, which cannot be maintained' (Fusfeld 2002, p 50). On another level his argument is sociological: 'class conflict- between a decreasing number of increasingly wealthy capitalists and a growing and increasingly miserable working class- will lead ultimately to a social revolution' (Fusfeld 2002, p 50). To conclude his Final argument is economic, that 'the accumulation of capital in private hands makes possible economic abundance; yet accumulation also leads to depressions, chronic unemployment and the economic breakdown of capitalism' (Fusfeld 2002, p 50). At each level the idea of 'conflict is emphasized: conflict between ideal reality, between capital and labor, and between stagnation' (Fusfeld 2002, p 50). Out of conflict comes change, and in this respect according to Marx, capitalism must give way to another society in which conflict is replaced by ethical, social, and economic harmony. ...read more.

Middle

Nevertheless Marx's prediction of the triumph of socialism and the creation of democratic, egalitarian, and nonexplotive society has not proved accurate. 'Capitalism was placed on the defensive by the rise of communist regimes in Russia and China, and by the spread of socialism through many of the less-developed countries' (Fusfeld 2002, p 60). But in most instances, these non-capitalist economies developed authoritarian political regimes, new forms of economic and social inequality, and new aspects of exploitation. Ultimately Marx argued, as Fusfeld states ( 2002) the economy could achieve widespread abundance and produce enough for all, and at that point in human history all people could be completely free, both politically and economically. Further more Marxist economics suggested that capitalism could not achieve this Student no. Z3220293 goal, as it prevented the full development of modern technology and resulted in periodic stoppage of capital accumulation. However, it is evident that under capitalism technology has flourished. More so capitalism has provided the push for new productive industries, as it is a continued to growing and change. Thus such an economy offers more opportunities then a stagnant one. For example China is the manufacturing hub of the globe. ...read more.

Conclusion

For example the great depression and the 1987 recession. In both instances the economy had if not almost hit bottom. In a Marxist view this could be concluded as the demise of capitalism. However his detractors would argue that conflict of some form exists in all political and economic systems, concluding that capitalism addresses this inherently human conflict in order to avoid crisis. Which in some respects is true. For example on black Monday of the October 1987 when a stock collapse of unprecedented size lopped twenty-five percent off the Dow Jones industrial average. The collapse, larger than that of 1929, was handled well by the economy and the stock market began to quickly recover. More so during the great depression certain strategies were adopted to deal with the crisis. The ' new deal' was the name given by President Franklin D. Roosevelt of programs between 1933-1938 with the goal relief, recovery and reform of the United States Student no. Z3220293 economy during the great depression. The ' new deal' had three components, direct relief, economic recovery and financial reform. In these respects one can observe the recovery of capitalist economies and their ability to continue to grow. To conclude it is evident that crisis and conflict is inevitable in capitalism however such an economic system is able to adapt and recover from such conflict. ...read more.

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