Re: Re: Re: Marx and financial crises

[Doug Henwood]

Edwin Dickens wrote:

>Doesn't that create a problem for your--and Michael's--argument that the
>only way out of a crisis (e.g., in Japan right now) is to liquidate real
>estate, liquidate labor, etc., as Andrew Mellon used to say?

Japan has been able to stave off complete collapse, but can't get the 
engine of accumulation restarted. I don't know if this is forever. 
Maybe some more severe wage cutting would do the trick.

I once had a Shaikh student tell me that the reason the U.S. 
depression went on so long in the 1930s was that the New Deal 
prevented the Mellon process from running its course.

Doug