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Title: Nouriel 'Dr. Doom' Roubini: ‘Karl Marx Was Right’
Source:
International Business Times
URL Source: http://www.ibtimes.com/articles/197 ... -crisis-debt-crisis-europe.htm
Published: Aug 13, 2011
Author: Joseph Lazzaro
Post Date: 2011-08-28 11:38:18 by lucysmom
Keywords: None
Views: 33273
Comments: 59
Companies, Roubini said, are motivated to minimize costs, to save and stockpile cash, but this leads to less money in the hands of employees, which means they have less money to spend and flow back to companies. Now, in the current financial crisis, consumers, in addition to having less money to spend due to the above, are also motivated to minimize costs, to save and stockpile cash, magnifying the effect of less money flowing back to companies. "Karl Marx had it right," Roubini said in an interview with wsj.com. "At some point capitalism can self-destroy itself. That's because you can not keep on shifting income from labor to capital without not having an excess capacity and a lack of aggregate demand. We thought that markets work. They are not working. What's individually rational ... is a self-destructive process."
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Begin Trace Mode for Comment # 6.
#4. To: lucysmom (#0)
Business people know this and don't just sit on cash. Henry Ford realized that he had to pay his workers enough so that they could afford to buy one of his cars. Then the unions got greedy... and along came VW, Toyota, and Honda. Detroit is now a socialist paradise. The reason that the "markets are not working" and the economy stinks, is a long series of government screw ups, printing funny money, thousands of special interest (globalist) regulations on both business and consumers. D&R politicians take the bribes, and we the people get screwed. It's our own fault for voting for Democrats and Republicans.
No government to bribe or screw up in Somalia - how's that working out?
Why don't you move there and send us a report? You seem obsessed with the place.
#8. To: hondo68 (#6)
Just getting tired of so-called conservatives blaming government for the bad behavior of free marketeers and themselves. It's getting to be an epidemic.
This is pretty much what the people of Somalia do to make a living, when they aren't being pirates.......
Top • Page Up • Full Thread • Page Down • Bottom/Latestyou can not keep on shifting income from labor to capital without not having an excess capacity and a lack of aggregate demand. We thought that markets work. They are not working.
#5. To: hondo68 (#4)
The reason that the "markets are not working" and the economy stinks, is a long series of government screw ups, printing funny money, thousands of special interest (globalist) regulations on both business and consumers. D&R politicians take the bribes, and we the people get screwed.
#6. To: lucysmom (#5)
Somalia - how's that working out?
Replies to Comment # 6. Why don't you move there and send us a report? You seem obsessed with the place.
#42. To: hondo68 (#6)
Why don't you move there and send us a report? You seem obsessed with the place.
End Trace Mode for Comment # 6.
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