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Essay causes of global financial crisis of 2008
Essay causes of global financial crisis of 2008
Effects of stock market crash
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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 there is a series of events going on where the prices goes up and as Marx mention there is ‘overproduction’. By 2009 North USA manage to bring stock market price almost back to normal, creating growing debts into other countries, such as Ukraine, Hungary and Greece, who had to loan major amounts from IMF to fend off bankruptcy. It has been noted from Marxists theorists that the current financial crisis, come together with a more general down turn in the global capitalist economy and has been shaped the worst economic crisis since the 1930s.
‘The crisis is an expression of the reassertion of the fundamental laws of the capitalist economy. Its source lies in the fact that the claims of capital have vastly outgrown the available mass of surplus value. Capital must seek to overcome the imbalance.’
The Marxists framework continues to be used by many analysts because it is one of the most completed and systematic theoretical critiques of capitalism which was ever created (Cohen J.B., 2008). Marxist an...
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...sity Press, Princeton University Press; Reprint Edition
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Marx believes there is a true human nature, that of a free species being, but our social environment can alienate us from it. To describe this nature, he first describes the class conflict between the bourgeois and the proletariats. Coined by Marx, the bourgeois are “the exploiting and ruling class.”, and the proletariats are “the exploited and oppressed class” (Marx, 207). These two classes are separated because of the machine we call capitalism. Capitalism arises from private property, specialization of labor, wage labor, and inevitably causes competition.
The Communist Manifesto was published in 1848, a period of political turmoil in Europe. Its meaning in today’s capitalistic world is a very controversial issue. Some people, such as the American government, consider socialism taboo and thus disregard the manifesto. They believe that capitalism, and the world itself, has changed greatly from the one Marx was describing in the Manifesto and, therefore, that Marx’s ideas cannot be used to comprehend today’s economy. Others find that the Manifesto highlights issues that are still problematic today. Marx’s predicative notions in the Communist Manifesto are the key to understanding modern day capitalism.
The ideology of Marxism, established by German philosopher Karl Marx, is a collectively known set of assumptions of a political ideology, which focuses especially on analysis of materialist interpretation of historical development, or on class struggle within the society. The primarily approach of Marxism, nonetheless, was the critique of capitalism. The strength of his inquiry lies in belief of inevitable shift from capitalism and he aims to advocate the new form of ideology and economy, the socialism. The title of this essay is provocative as in today´s world, there exist many proponents who claim, the core of Marx conception of ideology is still relevant in the 21st globalised world. However, Marxism is relevant to the extent to which is it important to examine every political and economic conception, moreover if we are able to perceive its outcomes after the concepts has been practically applied. This paper is intended to assess key ideas of Marxism with observations of positives and negatives it brought and the reasons why the concepts failed.
Polanyi, Karl. "Societies and Economic Systems," "The Self Regulating Market and Fictitious Commodities: Labour, Land, and Money." "The Great Transformation. Boston: Beacon Press, 1957. pp. 43-55, 68-75
ABSTRACT: I defend the continued viability of Marx's critique of capitalism against Ronald Aronson's recent claim that because Marxists are 'unable to point to a social class or movement' away from capitalism, Marxism is 'over' 'as a project of historical transformation.' First, Marx's account of the forced extraction of surplus labor remains true. It constitutes an indictment of the process of capital accumulation because defenses of capitalism's right to profit based on productive contribution are weak. If generalized, the current cooperative movement, well advanced in many nations, can displace capitalism and thus counts as the movement Aronson challenges Marxists to point to. It will do this, I argue, by stopping capitalist exploitation, blocking capital accumulation, and narrowing class divisions. But in defending Marx by pointing to the cooperative movement, we have diverged from Marx's essentially political strategy for bringing about socialism onto an economic one of support for tendencies toward workplace democracy worldwide.
Stanford, J. (2008). Economics for everyone: A short guide to the economics of capitalism. (p. 235). London: Pluto Press.
Americans have come to the “resolution” of borrowing money to pay off debt. This also comes into play as what gas lead Americans to stop saving all they have earned, and spend both what they receive and borrow, These “resolutions” have brought Americans to an end stage crisis. It then leads to requirements of corrupt capitalism (3).
This essay will examine the causes of the 2008 Global Financial Crisis (GFC) from a Marxist perspective. This paper will specifically examine and critique how Marx’s Theory of Crisis can be applied to understand and interpret the underlying structural causes of the 2008 Global Financial Crisis.
In his Manifesto of the Communist Party Karl Marx created a radical theory revolving not around the man made institution of government itself, but around the ever present guiding vice of man that is materialism and the economic classes that stemmed from it. By unfolding the relat...
Communism, socialism, and capitalism are the three basic forms of economical systems, each evident in the world. Although Karl Marx is portrayed as the father of communism, Marx is able to provide a substantial amount of information about the capitalistic world. In his work, “Capital (1867)”, Marx discusses the nature of commodities, wages, and the relationship between a worker and the capitalist economic system. As a result, Marx portrays workers as human beings who have been exploited in order to maximize production and profit in a capitalistic society. Although Karl Marx wrote “Capital (1867)” over a century ago, Marx’s arguments concerning the various uses of human labor, commodities, and values, have remained relevant in the United States
This paper provides an overview of the crisis, outlines the major causes of the crisis, examine alternative solutions to the problem
Born from the revolutions of 1848 throughout Europe, Marxism sought to end the class struggles that were destroying the continent. The solution to the problems of all nations occurred to Marx to be Socialism, a branch that is presently known as Marxism. Under this seemingly “utopian” socioeconomic system, equality was granted to all citizens who were in essence a community of one. “. . . universal free education; arming of the people; a progressive income tax; limitations upon inheritance; state ownership of banks. . .”(Palmer 506). These rights of which constituted Marxism eventually went on to be incorporated in Leninism and modern-day socialism. At least in its beginning, the intent of Marxism and the Communist League were noble towards the goal o...
There were many theories that promotes and explains how the capitalist system works; however, Karl Marx’s Capital is the first one that can explain the imminent relationship between poverty and wealth, inequality and growth under capitalism. ...
He is known worldwide for his numerous theories and ideas in regards to society, economics and politics. His outlook on these subjects is known as Marxism. Marxism focuses on the imbalance and struggle between classes and society. Marx’s theories stem from the concept of materialism based society and the implications thereof. These concepts leads to the Marxist theory of the failure of capitalism. Marx had a number of specific reasons for the downfall of capitalism yet capitalism remains very real and successful. Marxism covers a wide range of topics and theories, but an in depth analysis of his criticism to capitalism and how it is not relevant to modern day will be explored.
Shawki, Ahmed, Paul D’Amato (2000), “Briefing: The Shape of World Capitalism,” International Socialist Review, [http://www.isreview.org/issues/11/world_capitalism.shtml], accessed 19 May 2012.