Karl Marx Was Right About Banking Crisis

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Ben Cohen
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By Ben Cohen


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Karl Marx

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Álvaro Herraiz

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It seems Karl Marx knew a thing or two about the causes of banking crises:

Owners of capital will stimulate the working class to buy more and more of expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks, which will have to be nationalised, and the State will have to take the road which will eventually lead to communism"

Karl Marx, Das Kapital, 1867