Crisis Theory: A view in Marxian Economics

RationaleIn economic history there are many examples of economic collapses and

depressions. The reasons given for these facts are usually controversial. A

study on Marxian Economics and the Crisis Theory would help economists to

understand the structure of capitalism in a different approach. This would give

them motives to suggest to governments more efficient measures in order to

face the current depression. The purpose of this essay is to introduce the

main reasons why the economic system collapses according to the Marxian

Tradition. Crisis theory is separated into three main categories that each one

differently presents the causes of the crises:

Crises associated with falling tendency of the rate of profit

Crises arising from disproportionality

Crises arising from under-consumption

Most of the Marxists use the crisis theory to justify the long-term economic

cycles and the limits of capitalism. There were many Marxian movements

and each one was accepting a different version of the crisis theory. I think that

every scientist would be interested in studying an unconventional theory.

Finally a possible question that someone would ask is if the crisis theory could

interpret the current crisis.