Karl Marx and Democrat Economic Policy

[Hector12]

A political writer should be read for insight, rather than doctrine. Political writers cannot prove their theories with controlled, repeatable experiments the way chemists and physicists can. We cannot go back in time, choose a different policy and make different decisions.

In my opinion Karl Marx had two valid insights. He was mistaken about everything else. First, the natural tendency of capitalism is to accumulate wealth and income at the top. Second, partly as a result of this capitalism experiences increasingly destructive economic downturns.

This is what did happen from the time Marx wrote the Communist Manifesto in 1847 to the Stock Market Crash in 1929, and the resulting Great Depression.

The New Deal of Franklin Roosevelt countered these tendencies with laws to protect labor unions, establish a minimum wage, and with a well financed public sector of the economy paid for by steeply progressive taxation.

Consequently the United States developed the largest and richest middle class in the world. Recessions became milder.

The United States Department of Commerce publishes a chart that shows fluctuations in the per capita gross domestic product from 1920 to 2002 in 1996 dollars.

Singularity is Near -SIN Graph - Per-Capita GDP

The stock market crash cannot be blamed on the Democrats. From 1921 to 1929 the Republican Party controlled the presidency, both houses of Congress, and the Supreme Court. From the inauguration of Warren G. Harding in 1921 to the last full year Herbert Hoover was president in 1932 the per capita GDP in 1996 dollars declined from $5,758 to $4,901.

From the inauguration of Franklin Roosevelt in 1933 to the last full year President Truman was president the per capita GDP in 1996 dollars grew from $4,804 to $1,1980.

From 1921 to 2000 we had Republican presidents for forty years, and Democrat presidents for the other forty years. During this time there was over twice as much economic growth under Democrat presidents as under Republican presidents. During this time Democrat presidents raised the top tax rate. Republican presidents reduced the top tax rate.

http://www.irs.gov/pub/irs-soi/02inpetr.pdf

Democrats also raised the minim wage and strengthened labor unions.

There has usually been more job creation per year under Democrat presidents than Republican presidents.

Bush On Jobs: The Worst Track Record On Record - Democratic Underground

 

[occupied]

Marx was a fascinating character well worth reading for anyone as long as it's taken as a philosophical pursuit. He was certainly right about the worst excesses of concentrated wealth damaging the very fabric of an industrial nation but his solutions were utopian pipe dreams that should have never been taken seriously.

 

[Grumblenuts]

In my opinion Karl Marx had two valid insights. He was mistaken about everything else.

Here are twenty quotes from Marx to start with. Pick the two you find "valid" then please explain how the remainder are "mistaken."

#1 “Catch a man a fish, and you can sell it to him. Teach a man to fish, and you ruin a wonderful business opportunity.”

 

[Hector12]

Here are twenty quotes from Marx to start with. Pick the two you find "valid" then please explain how the remainder are "mistaken."

#1 “Catch a man a fish, and you can sell it to him. Teach a man to fish, and you ruin a wonderful business opportunity.”

Karl Marx was correct that unregulated capitalism concentrates wealth and income at the top. His most serious error was can be found in one sentence in The Communist Manifesto: "The working men of Europe have no country."

He assumed a natural progression from the stone age to slavery to feudalism to capitalism. The revival of slavery in the Americas should have shown him that this is not true. He assumed that capitalism would be replaced by socialism, which would be replaced by the classless society in which there would be no war, poverty, or crime. This is not true either.

 

[Grumblenuts]

but his solutions were utopian pipe dreams that should have never been taken seriously.

Marx and Engels actually argued the same regarding "utopian pipe dreams." They presumed class struggle necessary for economic progress. No pain, no gain. There were and still are plenty of utopian socialists who feel they can simply convince their way to progress through scientific argument and the like.

 

[Oddball]

Karl Marx was correct that unregulated capitalism concentrates wealth and income at the top.

ORLY, where's his example?

 

[Grumblenuts]

He assumed that capitalism would be replaced by socialism, which would be replaced by the classless society in which there would be no war, poverty, or crime. This is not true either.

He certainly had beliefs and proposed things. I don't believe that he assumed much of anything. If you could quote Marx arguing for the abolition of every sort of private property I'd likely end up having to agree with much of your take. I'm no expert but from all I've heard and read I don't believe he was that dumb. Sure "the means of production" but to me that implies property owned solely by a wealthy "owner class" and being used deliberately to keep the masses subjugated.

 

[Hector12]

ORLY, where's his example?

The examples are the U.S. economy before the inauguration of President Franklin Roosevelt and after the inauguration of President Ronald Reagan.

 

[Hector12]

Marx and Engels actually argued the same regarding "utopian pipe dreams." They presumed class struggle necessary for economic progress. No pain, no gain. There were and still are plenty of utopian socialists who feel they can simply convince their way to progress through scientific argument and the like.

Revolutions usually replace one tyranny with another. I favor peaceful, evolutionary reform.

 

[Grumblenuts]

Revolutions usually replace one tyranny with another. I favor peaceful, evolutionary reform.

You say you don't wanna revolution?

You say you got a real solution
Well, you know
We'd all love to see the plan

 

[Oddball]

The examples are the U.S. economy before the inauguration of President Franklin Roosevelt and after the inauguration of President Ronald Reagan.

Marx was dead by the time Reagan rolled around....Beside that, no businesses were unregulated during those time periods.

But commies lie, so there's that.

 

[Lumpy 1]

Thanks Guys .. I feel smarter now..

 

[TNHarley]

During this time there was over twice as much economic growth under Democrat presidents as under Republican presidents

There was also war.

 

[TNHarley]

There is a very good argument that the great depression was caused by too much govt. In fact, there isnt much of argument otherwise.

 

[Hector12]

There is a very good argument that the great depression was caused by too much govt. In fact, there isnt much of argument otherwise.

Even before the Second World War the government grew quite a bit during the Roosevelt administration. Roosevelt was reelected in 1936 and 1940 because life improved for most Americans.

 

[Hector12]

Marx was dead by the time Reagan rolled around....Beside that, no businesses were unregulated during those time periods.

But commies lie, so there's that.

Business regulations increased after the inauguration of Franklin Roosevelt. They were scaled back after the inauguration of Ronald Reagan.

 

[Oddball]

Business regulations increased after the inauguration of Franklin Roosevelt. They were scaled back after the inauguration of Ronald Reagan.

You said "unregulated", not deregulated....But nobody thought those goalposts were going to move themselves.

Also, this was all under the regime of the "centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly” (sound familiar?) of the Federal Reserve.