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://www.newyorker. com/archive/ 1997/10/20/ 1997_10_20_ 248_TNY_CARDS_ 000379653 
 

John Cassidy, The Next Thinker, "THE RETURN OF KARL MARX," The New Yorker, 
October 20, 1997, p. 248






Keywords 
Capitalism; 
Communism; 
Economics; 
Marx, Karl 


THE NEXT THINKER about Karl Marx's influence as an economist... Writer was 
talking with a college friend who now worked at a big Wall Street investment 
bank... To my surprise, he brought up Karl Marx. "The longer I spend on Wall 
Street, the more convinced I am that Marx was right," he said. I assumed he was 
joking. "There is a Nobel Prize waiting for the economist who resurrects Marx 
and puts it all together in a coherent model," he continued, quite seriously. 
"I am absolutely convinced that Marx's approach is the best way to look at 
capitalism." 
I didn't hide my astonishment. We had both studied economics during the early 
eighties at Oxford, where most of our teachers agreed with Keynes that Marx's 
economic theories were "complicated hocus-pocus" and Communism was "an insult 
to our intelligence. " The prevailing attitude among bright students of our 
generation was that Marx's arguments were fit only for polytechnic lecturers 
and aspiring Labour Party politicians. .. More than fifty years ago, Edmund 
Wilson noted that much of Marx's prose "hypnotizes the reader with its 
paradoxes and eventually puts him to sleep." The passing decades have not made 
the going any easier. Marx was ludicrously prolix... The writer gradually began 
to understand what his friend meant. In many ways, Marx's legacy has been 
obscured by the failure of Communism, which wasn't his primary interest. 
In fact, he had little to say about how a socialist society should operate, and 
what he did write, about the withering away of the state and so on, wasn't very 
helpful--something Lenin and his comrades quickly discovered after seizing 
power... When Marx wasn't driving the reader to distraction, he wrote riveting 
passages about globalization, inequality, political corruption, monopolization, 
technical progress, the decline of high culture, and the enervating nature of 
modern existence--issues that economists are now confronting anew... Marx was 
born in 1818, and died in 1883... Marx wasn't a crude reductionist, but he did 
believe that the way in which society organized production ultimately shaped 
people's attitudes and beliefs. Capitalism, for example, made human beings 
subjugate themselves to base avarice... "Globalization" is the buzzword of the 
late twentieth century, on the lips of everybody from Jiang Zemin to Tony 
Blair, but Marx predicted most of
 its ramifications a hundred and fifty years ago... 
Globalization is set to become the biggest political issue of the next 
century... In one way, Marx's efforts were a failure. His mathematical model of 
the economy, which depended on the idea that labor is the source of all value, 
was riven with internal inconsistencies and is rarely studied these days.... 
One important lesson Marx taught is that capitalism tends toward monopoly--an 
observation that was far from obvious in his day--giving rise to a need for 
strong regulation.. .. Likewise endogenous-growth theory models are undoubtedly 
Marxist in spirit, since their main aim is to demonstrate how technical 
progress emerges from the competitive process, and not from Heaven, as in the 
neoclassical model. 
Describes Marx's "theory of immiseration" which says that profits would 
increase faster than wages, so that workers would become poorer relative to 
capitalists over time, and this is what happened during the last two decades. 
Inflation-adjusted wages are still below their 1973 levels, but profits have 
soared. ... A key question for the future, the answer to which will determine 
the fate of the soaring slock market and much else, is whether capital can hold 
on to its recent gains. Writer visits Highgate Cemetery, where he visited 
Marx's grave... Perhaps me most enduring element of Marx's work is his 
discussion of where power lies in a capitalist society. This is a subject that 
economists, with their fixation on consumer choice, have neglected for decades, 
but recently a few of them have returned to Marx's idea that the circumstances 
in which people are forced to make choices are often just as important as the 
choices... Marx, of course, delighted in
 declaring that politicians merely carry water for their corporate paymasters.. 
. The sight of a President granting shady businessmen access to the White House 
in return for campaign contributions would have shocked him not at all. Despite 
his errors, he was a man for whom our economic system held few surprises. His 
books will be worth reading as long as capitalism endures.
The New Yorker’s archives are not yet fully available online. The full text of 
all articles published before May, 2006, can be found in “The Complete New 
Yorker,” which is available for purchase on DVD and hard drive. Many New Yorker 
stories published since December, 2000, are available through Nexis. Individual 
back issues may be purchased from our customer-service department at 
1-800-825-2510.
 
 
 


 



Satrio Arismunandar 
Executive Producer
News Division, Trans TV, Lantai 3
Jl. Kapten P. Tendean Kav. 12 - 14 A, Jakarta 12790 
Phone: 7917-7000, 7918-4544 ext. 4023,  Fax: 79184558, 79184627
 
http://satrioarismunandar6.blogspot.com
http://satrioarismunandar.multiply.com  
 
"Perjuangan seorang mukmin sejati tidak akan berhenti, kecuali kedua telapak 
kakinya telah menginjak pintu surga." (Imam Ahmad bin Hanbal)


      

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