Capitalism And The Great Depression

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In 2008, following the housing bubble crash, mortgages foreclosed across the country and the New York Stock Exchange saw catastrophic losses; several economists began to question the strength of an unregulated capitalist system. The debate sparked the question: Is crisis an inevitable aspect of capitalism? With nearly 80 years past since the beginning of the Great Depression, memories of high unemployment rates and sluggish economic growth during the Depression-era had mostly been erased by a long period of relative prosperity. The recession of the late 2000s served as a reminder of the danger that capitalism can pose to society. The Marxian critique of capitalism provides a framework for analyzing the pitfalls and conditions of existence of capitalism that led to the Great Depression of the 20th century and the recession of the 21st century. Additionally, discussion of Marx’s crisis theories has been reinvigorated by the increasing amount of income inequality in the USA, which many people blame on the greed inherent in a profit-driven capitalist society. When evaluating the dilemmas surrounding capitalism, it is essential to draw comparisons between the Great Depression and the recession of 2008. The similarities between these economic crises demonstrate the tendency of the capitalist system to send us down a similar path towards economic turmoil and declines in overall living standards. The relevance of Marxian theory is amplified by the similarities between the economic
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