The World Economic Crisis: A Marxist Analysis Essay

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A financial crisis developed with an amazing speed starting from the late summer and early autumn of 2008 and it still affects the world today. This crisis has damaged many of the largest financial institutions firstly in the US and the whole world then followed, but the worst damage was that a large part of the world's financial system had almost collapse. A lot of researches tried to explain the reasons of the current global crises and try to figure out ways of changing or helping the system. This paper argues about explain the current global economic crises with new Marxists analysts and that the current crisis should be seen as a systemic crisis of capitalism because of bad structure. In order to reach the point of economic crisis …show more content…
Moreover they believe that human needs are been placed be market needs and that the most important thing is how capitalist can be profited by workers. They consider a capitalist society to be a society of oppositions and conflicts and criticize of the status quo and the existing structures of power. However, Marxists aim to create knowledge of the unfair capitalists system and the crises that are caused by the system (McGuire P. and McQuarie D., 1994). As Karl Marx had mention in the ‘communist manifesto’ there will come a point where bourgeois will lose control and will lead to crisis: “Modern bourgeois society with its relations of production, of exchange, and of property…is like the sorcerer who is no longer able to control the power of the nether world whom he has called up by his spells.”
Firstly, Marxists theory about crisis is that the cause of crisis is in internal mechanisms of the capitalist system which reflect the opposing character of the capitalist development. Furthermore, Marx mention about the rate of profit will fall due to the rise in the value of production relative to labour power, therefore the profit squeeze due to a declining diffidence army of labour, this lead to the rate of unemployment to increase and be replaced by other machines. According to Marx, the progressive propensity for the general rate of profit in a capitalist system to fall is the expression and the unusual to the

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