Why Recessions Happen

Michael Roberts argues that capitalists invest only when it is profitable, and that when profitability falls across the major economies, investment and hiring give way to a slump. In response to Marshall’s question about whether falling profitability causes depressions or only accompanies them, Roberts sets out Marx’s law of the tendency of the rate of profit to fall as presented in volume three of Capital: competition pushes firms toward new machinery, the advantage fades as the technology spreads, and profitability tends to fall. He applies the same logic to AI, whose profitability he says does not yet exist. [FULL EPISODE URL — https://youtu.be/or5WcT9yB5A]
#MichaelRoberts #Recession #MarxistEconomics