Collapse

Marx discovered the scientific laws that drive the course of history, as I shortly discused in a previous post. His main economical findigns are contained in the (postomous published) II book of "Das Kapital": inequalities of income origin first economic cycles and later depression. The reason is that the existence of large majorities with low income causes a deficit of demand.
These laws were demonstrated by the crisis of 1929. Keynes devised to increase the demand with debts (i.e. public finance) and this model worked until 2008, although in the course of '80s public finance was replaced with private finance in th anglo-saxon countries (not in Europe). In America the inequalitesi are particularly large, to such an extent that real growth ceased already in the 70's and it was necessary to increase the public and private debt to almost infinite dimensions.

Nonetheless, the huge crisis of 2008 seems to demonstrates that finance can offset inequalities of income up to some point.
Today, the hopes of capitalism lie in the growthof former Third World countries, but I dare say that this growth can continue for no more than 10-20 years.