Armstrong Economics Blog/Economics
Re-Posted Dec 22, 2017 by Martin Armstrong
QUESTION: Why do you paint the left/Democrats as really being Marxist?
ANSWER: Marx is the one that started the entire focus on the class warfare. Keep in mind that Marx began his position with socialism – not communism. It was the Commune Movement in Paris that persuaded Marx to adopt communism, which was the surrender of all property.
The reason I call the left Marxist is that this is where the class warfare begins. This philosophy did far more than simply invoke class warfare. It instigated the entire belief that government could manage the economy and eliminate the business cycle. John Maynard Keynes also followed that segment of Marx taking the position that government could control the business cycle. Therefore, both Marx and Keynes shared a common belief that the government could eliminate the business cycle. Towards the end of Keynes’ life, he relented that he had fought against the business cycle and Smith’s Invisible Hand, and came to realize he was wrong.
Here you have a video clip of Larry Summers being interviewed by Bloomberg. The question asked was simple. Why have economists been unable to ever predict a recession and manage the economy?
Then you have the former Chairman of the Federal Reserve, Arthur Burns, who was there for the end of Bretton Woods. He too stated bluntly that this entire philosophy that began with Marx advocating that government can manage the economy has failed.
The next Chairman of the Federal Reserve, Paul Volcker, also maintained the same position that the business cycle always won (Rediscovery of the Business Cycle). This “New Economics” was the Keynesian position that government could manage the economy eliminating the business cycle, which has utterly failed.
Therefore, anyone who says that this is not Marxism is really ignorant of where this entire line of economic thought began in modern times.