The article by Nouriel Roubini asks: Is capitalism doomed? He is probably the only economist who predicted accurately the intensity of the recession of 2008. I do not intend to repeat everything he says in his comprehensive piece here. I do agree with everything he pinpoints as causes of this worldwide crisis. I certainly concur with his assessment of the current situation which can be reduced to 4 words: It is not good.
Can capitalism fail and bring about a renaissance of Marxism in its most orthodox form? All great revolutions have arisen from a crisis: The French, American, French Commune in 1871, Russian-Bolshevik in 1917, Chinese Koumintang and then communist between 1920 and 1950, Cuban in the 1950’s. Mussolini and Hitler both arrived to power during the interwar crisis. Hitler was even freely elected and then he abolished all the other political parties.
The end of communism in Europe was also caused by an economic crisis and the frustration of people locked up behind the Iron Curtain.
The solutions that Mr. Roubini recommends are also in my program in more than one way. There is one difference: I intend to use tax policy to re-establish an equilibrium as Mr. Roubini proposes but also, and more importantly, to create the conditions to make New Jersey attractive to capital.
That is the key point of my program.