A specter is haunting the bourgeois economists, the specter of Marx. Paul Krugman opining today in The New York Times joins the growing ranks of mainstream economist who are wondering in light of the recent economic collapse that maybe a certain bearded German theorist was not totally wrong. Mostly wrong, but not completely. Will they come all the way around? Will we be seeing members of the Wall Street Journal editorial board against the barricades screaming, "Bourgeois economist of the world unite you have noting to lose but your chains!" Most likely not (though stranger things have and will happen). Nonetheless the quotes listed below are inexplicably satisfying.
"Karl Marx had it right. At some point, Capitalism can destroy itself. You cannot keep on shifting income from labor to Capital without having an excess capacity and a lack of aggregate demand. That's what has happened. We thought that markets worked. They're not working. The individual can be rational. The firm, to survive and thrive, can push labor costs more and more down, but labor costs are someone else's income and consumption. That's why it's a self-destructive process."--Nouriel Roubini in an interview with the Wall Street Journal