Economist Nouriel “Dr. Doom” Roubini, the New York University professor who four years ago accurately predicted the global financial crisis, said one of economist Karl Marx’s critiques of capitalism is playing itself out in the current global financial crisis.
“Karl Marx had it right,” Roubini said in an interview with wsj.com. “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 rational…is a self-destructive process.”
This process is made worse by compliant, captured governments and an elite class mostly devoid of ethics and primarily concerned with looting the middle and lower classes. Roubini makes the key point that the Arab Spring uprisings are economic in origin. So, I would say, are the recent riots in Britain.
Roubini doesn’t think there will be an “imminent collapse” of capitalism but that we are definitely in one of those crises of capitalism that Marx predicted.