Thursday, August 18, 2011

Nouriel 'Dr. Doom' Roubini: ‘Karl Marx Was Right’ - International Business Times

Interesting even if you do not agree with the view.

Nouriel 'Dr. Doom' Roubini: ‘Karl Marx Was Right’ - International Business Times:

"Karl Marx had it right," Roubini said in an interview with "At some point capitalism can self-destroy itself. That's because you can not keep on shifting income from labor to capital without not having an excess capacity and a lack of aggregate demand. We thought that markets work. They are not working. What's individually a self-destructive process.

Roubini added absent organic, strong GDP growth -- which can increase wages and consumer spending -- what's needed is large fiscal stimulus, agreeing with another high-profile economist, Nobel Prize-winner Paul Krugman, that, in the case of the United States, the $786 billion fiscal stimulus approved by Congress in 2009 was too small to create the aggregate demand necessary to advance the U.S. economic recovery to a self-sustaining expansion."

I have to imagine virtually every macro class in the world will have some variant of this on their tests this year.

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