M K Venu writes in the ET:
- “Marx had specifically spoken about periods of commercial crises in advanced capitalist societies which are visited by an “epidemic of overproduction”. The epidemic of overproduction creates total disorder in bourgeois society, threatening existing property and productive forces at large.
- In the current context, the epidemic of overproduction can be seen in the massive debt build-up in the western societies, the housing derivatives, credit card and auto loans, the huge inventories of global automobile majors like General Motors and Ford.
- Marx described the epidemic of overproduction as such: “Society finds itself put back in a state of momentary barbarism. Industry and commerce seem to be destroyed. And why? Because there is too much civilisation, too much means of subsistence, too much industry and too much commerce. The productive forces at the disposal of society no longer tend to further the development of bourgeois property”.
- And how does the global bourgeoisie get over such a condition? “On the one hand, by an enforced destruction of some of the existing productive forces, and on the other hand, by the conquest of new markets”. It is here that Marx provides a deep insight which global bourgeois leaders like President Obama and Gordon Brown must heed”.
The article is simple but totally misleading the concept of “production” and “overproduction”. Overproduction is not possible in a price coordinated economy because there will always be a disproportionate in growth. In the present case, government or Fed Reserve has manipulated the basic function of system say interest rate reduced etc. In fact there is “roundabout production” which will manage the cycle.
The author is totally ignorant of what J B Say, Böhm-Bawerk, Eugen vo etc have said.
Slowly the ET it marching towards “socialism” which is very dangerous to
