World Capitalism Proves Failure

Today world economy is on the verge of another collapse. Many experts call the impending crisis the most devastating in history, predicting a decrease in US GDP of up to 50%, and unemployment growth of up to 30%, which was not even during the Great Depression.

But why is the development of the economy cyclical, and, sooner or later, the world is sliding into another "hole"? The reason lies in the capitalist system of production-distribution, which has a serious flaw.

The essence of capitalism, as is known, is the extraction by the owner of profit from the exploitation of wage labor. All means of production are in private hands.

The income received from the sale of manufactured goods, in pursuit of profit, the capitalist allows for further expansion of production. As a result, there comes a situation when supply significantly exceeds demand.

The owner begins to incur losses, closes part of the production capacity, reduces workers or cuts his wages. Trade relations are broken, a shortage of funds arises, financial markets collapse - an economic collapse sets in, which is called a crisis.

The capitalist’s problem is that the situation is aggravated by the decline in workers ’incomes (which he is to blame for), since the latter, in turn, consume even less goods. The economic decline continues until the balance between supply and solvent demand is restored.

After the crisis, a period of stagnation sets in, when the decline in production has stopped, but there is no growth either. The next stage, called revitalization, is characterized by increased exploitation of workers and the introduction of technological innovations in production. Only then does growth begin, which eventually ends again with overproduction and the collapse of the economic system.

Each time, with the onset of another crisis, the working class takes the most painful blow, which is on the verge of survival. And the situation can be resolved in only one way - the transition from capitalism, which has repeatedly demonstrated its failure, to socialism.

  • Photos used: Semenov.m7 /
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  1. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) April 23 2020 16: 03
    Another collapse in 30 years. In the internet there is a cool video "A Brief History of the Dollar Collapse".
    Since 2008, we have already passed 2 crises.
    Bottom line: the list of bucks millionaires - billionaires from the Russian Federation is very swollen.
    1. rotkiv04 Offline rotkiv04
      rotkiv04 (Victor) April 23 2020 17: 16
      And not only the list, but they themselves.
  2. Digital error Offline Digital error
    Digital error (Eugene) April 23 2020 16: 07
    The economic decline continues until the balance between supply and solvent demand is restored

    Where they understand this, they distribute "helicopter" money that support "small shopkeepers" - small business.
    After the epidemic, there will be less competition, which will inevitably affect the quality of goods, their value, and, as a consequence, the quality of life.
  3. rotkiv04 Offline rotkiv04
    rotkiv04 (Victor) April 23 2020 17: 13
    After a pseudo-pandemic, capitalism will flourish, though, as the Kiev cicero Pedalka said, not only everyone will see this.
  4. steelmaker Offline steelmaker
    steelmaker April 23 2020 22: 07
    There never was a crisis under the communists. Because vodka and tobacco were state property. Only vodka and tobacco were used to pay salaries to state employees and pensions to pensioners in the USSR !! In short, we must take power into our own hands. Our sugar is 26-30 rubles. We take a moonshine still, in the village the "bro" has a well - water is a freebie. Half a liter is 15 rubles. maximum. In general, we need to compete with Kazakhstani vodka, at least arrange it at our plant. This is how the healing "water" strains the brain and prevention from coronavirus.
  5. Oleg Rambover Offline Oleg Rambover
    Oleg Rambover (Oleg Rambover) April 24 2020 00: 14
    And the situation can be resolved in only one way - the transition from capitalism, which has repeatedly demonstrated its failure, to socialism.

    This is a rather amusing statement, given that the author most likely personally observed the deafening crash of the socialist experiment in our country. In fact, there is no alternative to capitalism and is not expected. By the way, it cannot be said that world crises did not affect the Soviet Union.
  6. Natan bruk Offline Natan bruk
    Natan bruk (Natan Bruk) April 27 2020 07: 15
    Judging by the style, this article was written by a retired teacher of history of the CPSU.
  7. Citizen Mѣshkov (Sergѣi) April 28 2020 23: 46
    Until recently, there was such a bike (or maybe not a bike), as if the Soviet "red directors" deliberately ruined the country's economy in order to grab all the tidbits for themselves. 30 years have passed. Now is it time to ponder over the fact that the current economy is being intentionally destroyed in order to take revenge?
  8. Winnie Offline Winnie
    Winnie (Winnie) 8 June 2020 22: 50
    The economic situation in the country is aggravated by the fact that in the Russian Federation it is not just capitalism, but neocolonial capitalism, when most of the resources go to the mother country. Therefore, the crisis in the Russian Federation is deeper.