The fallacy of composition and the law of profitability

In mainstream economics, the concept of the ‘fallacy of composition’ is often used.  In a general sense, the fallacy of composition arises when it assumed that the sum of all individual parts will equal the whole.  Sometimes, it does not.  There are many examples: if you stand up at a concert, you can usually see

British capital: productivity and profitability

In the first quarter of 2018, the UK economy slowed almost to a standstill.  It grew by just 0.1% in real terms. This was the lowest growth rate for over five years since a 0.1% contraction in Q4 2012. Household spending rose the least in over three years and business investment shrank the most in

Greece: the spectre of debt

I’ve just got back from a visit to Greece to speak at a conference on my book, Marx 200.  While I was there I talked to several left activists and academics and it seems that little has improved for the Greek people since my last visit two years ago.  Back in 2010, Greece started to

Rising world inequality

There is a book sweeping the popular media at the moment.  It’s called Factfulness.  It purports to argue that, contrary to the conventional wisdom, the world is becoming a better place.  Poverty is falling, life expectancy is rising; health levels are improving; people have more things and better services.  Even violence and wars are in

Global debt crisis ahead?

Argentina is seeking International Monetary Fund aid after a series of drastic interest rate rises failed to stop the slide in the peso, pushing the country towards a financial crisis. Mauricio Macri, Argentina’s right-wing, pro-big business president, announced the approach to the IMF in a nationally televised address, saying international assistance would enable the government

Marx and Keynes in Berlin

It’s 200 years today since Karl Marx was born.  And it’s just over 100 years since the great 20th century economist John Maynard Keynes wrote about Marx’s contribution.  Keynes wrote then: “how  can I accept the (Communist) doctrine which sets up as its bible above and beyond criticism, an obsolete textbook which I know not