Summary and Analysis by Chapter

Chapter 6: The Inexorable System of Karl Marx

Marx predicted trends which capitalism would follow. Surprisingly, most of them have come true. These predictions he called the "laws of motion":

  1. As the economy expands, profits fall, both within the business cycle and outside it.

  2. As profits fall, business seeks new survival techniques by innovating, inventing, and experimenting.

  3. Business runs in cycles of depression and boom.

  4. Huge firms dominate the business scene and suppress smaller firms.

  5. Finally, the working class overcomes factory owners and capitalism disappears.


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