Blog 2: RSA Animate – Crisis of Capitalism

David Harvey explains the crisis of capitalism with a Marxist perspective. He believes the problem to the current crisis is the excessive power of finance capital. He explains that wages and national income have become stagnant, and that this results in less money for people to be able to buy goods and it decreases demand. According to Marx, in capitalism, wealth takes the form of commodities. The capitalists, who own the instruments of production, produce goods only to get a profit. They do this by making the workers sell their labor power for a wage. With the profit, capitalists create ways to increase productivity and in turn make more money. This makes the capitalists wealthier while the workers get poorer. Marx says that this will lead to a crisis because of the class struggle, which will invoke a class consciousness. Harvey agrees with Marx and says that the power the financiers had made them too greedy. All the accumulation of wealth is in the hands of the financiers. He believes the solution for this is to join and anti-capitalist organization and change our way of thinking.

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2 responses to “Blog 2: RSA Animate – Crisis of Capitalism

  1. Sorry try comment it by reblogged by accident.
    However, I agree with you. The owners of production have become too greedy and just think about themselves. As they get richer the workers get poorer. The solution that is provided is unrealistic in my point of view because anti-capitalist organzations are usually composed of individuals who are unsatisfied with this way of thinking which may represent these workers. Therefore, even if they tried it could be impossible because in reality the more money an organization has the more powerful it will be, and in this case it is the capitalist who have it. With their power of wealth they can control many things.

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