Just don’t call them Marxists

October 5, 2009

BofA Merrill Lynch economist Ethan Harris isn’t buying what he calls “extreme perma-bear stories” about the U.S. economy. A couple of weeks of disappointing U.S. economic data, culminating in Friday’s weak employment report , revived concerns that the economy was struggling to reach recession escape velocity.

In a research note, Harris said the bad news hasn’t changed his forecast for U.S. economic growth of 3 percent-plus over the next two years. He says the economy has a natural tendency to eventually return to full employment once the “negative shocks” are gone. He points to six major economic theories to support his view, including Keynesian, the Austrian school, and the “financial accelerator model,” which counts Federal Reserve Chairman Ben Bernanke among its advocates. 

But he acknowledges there is one well-known economic theory which does not support his forecast:

“The one notable exception to this view is Marxism. In Marxist theory the capitalist world is doomed to ever worsening cycles of boom and bust, culminating in its collapse and the assent of communism. Needless to say, we do not ascribe to this view.”


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Our economic model is doomed to fail. But only because it operates purely from a profit perspective. Our economy will fail because we value money over human life.

Because of this no one will ever be able to elicit enough cooperation and good will to make any system work. After all, why should I work in your interests if I know full well you don’t have my interests at heart?

Therefore we must work in order to bring benefit to each other and not for our selves. We are social creatures by nature. We need each other simply to survive the struggles of this place.

But even though biology dictates that we work together our minds and hearts are not in harmony with this truth. We still seek to look out for our own interests at the expense of our fellows. This is why we will fail. Read any story in the head lines and you will find people grasping for power, influence, or some other pleasure.

Our economy will fail because we love money and only money. People can go into poverty. They can go hungry, or die the victims of another person’s grasping for fleeting pleasure and power. And even though we see these things we simply shrug our shoulders and say to ourselves that that’s just how it is.

That is a lie.

We can change. And in truth we must. Or we will die the victims of our own blind ignorance. One can act individually in the areas of life where one has influence, to do good for the benefit of another.

We must do this because it makes us happy to do good for another person. When we find our happiness in the happiness of others, we will be free of the suffering we bring to each other. All crisis will end.

Posted by Benny Acosta | Report as abusive

Good writing and quite readable.
We have witnessed Marxian theory of Socialism in many western countries and in China,Albania and in Cuba.
Because of dis integration of Soviet Union,some massive protests against ex-Poland,Prague,Albania and in some western states, Marxism came to suspended stages.
Then,democracy prevails in these western countries.
In China, Government controls and single party system prevails and now,she added modern capitalism in big cushioned types.
Under no circumstances America will be turned to Socialism.
Free economy principles will always in force in America.
So, there is no need of worries to capitalists, free trade thinkers.

Posted by krishnamurthi ramachandran | Report as abusive