Capitalism; Imperialism; Saving and investment; Socialism
'Foreign trade', he says, 'is related to slumps only as charity is
related to poverty. They ultimately only enhance one another.'[251] And
further: 'The only possible means of warding off further outbreaks of
crises is the application of the two-edged knife of expanding foreign
markets. The violent urge towards such expansion is largely no more but
a morbid irritation caused by a sickly organ. Since one factor on the
home market, productivity, is ever increasing, and the other factor,
purchasing power, remains constant for the overwhelming majority of the
population, commerce must endeavour to conjure up a similarly unlimited
amount of purchasing power on the foreign market.'[252] In this way, the
irritation may be soothed to some extent so that at least there will not
be a new outbreak of the calamity right away. Every foreign market
opened defers the social problem in a like manner. Colonisation of
primitive countries would have similar effects: Europe rears a market
for herself in places where none had been before. Yet such a medicine
would essentially do no more than appease the ill. As soon as the new
markets are supplied, the problem will revert to its former state--a
conflict between the two factors: limited purchasing power versus
unlimited productivity. The new attack would be warded off the small
market only to re-appear, in even wider dimensions and with even more
violent incidents, on a larger one. And since the earth is finite and
the acquisition of new markets must some time come to an end, the time
will come when the question can no longer be simply adjourned. Sooner
or later, a definite solution will have to be found.'[253]
Rodbertus also recognises the anarchical character of capitalist
private enterprise to be conducive to crises, but only as one factor
among many, seeing it as the source of a particular type of crises, not
as the real cause of crises in general. About the crises at v.
Kirchmann's _Ort_, e.g., he says: 'I maintain that a slump of this kind
does not occur in real life. The market of to-day is large, there are
countless wants and many branches of production, productivity is
considerable and the data of commerce are obscure and misleading. The
individual entrepreneur does not know how much others are producing, and
so it may easily happen that he over-estimates the demand for a certain
commodity with which he will then overstock the market.'
Public-domain text, read in full here on John Shaqi.
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