This past weekend saw many occasions around the world mark the 200th anniversary of the birth of Karl Marx. Rather than lament the rise of one of the most destructive influences of the modern world, most if not all were quite celebratory. The much-loved philosopher, especially in academic circles, has for his followers given them an outlet for revival.
It began in 2008. Panic gripped the world, markets crashed, and the economy collapsed. Leftish media outlets could barely contain their approval upon reporting how sales of Marx’s volumes were up sharply, particularly the big one Das Kapital. What that meant was far more than reported 300% sales growth.
Increasing numbers of Germans appear ready to out themselves as Marx fans in a time when it is fashionable to repeat the philosopher’s belief that excessive capitalism with all its greed finally ends up destroying itself.
That story appeared in the UK on October 15, 2008, in the immediate aftermath of the second wave of panic (there would follow a third in early 2009). Just eight days later, former Federal Reserve Chairman Alan Greenspan was called up to Capitol Hill to testify about the mess. He apologized for it; sort of.
“I have found a flaw,” he said. He didn’t identify the flaw as himself or his successor, but the free market doctrine of self-interest.
I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms.
The implications were Marxist, or at least favorable to his restoration. Free markets had failed, Greenspan claimed, self-interested capitalism had been the cause of much suffering and damage just as Marx had claimed it would. In 1857, Karl had written to Friedrich Engels, his oftentimes partner, greedily recounting, “The American Crash is a delight to behold and it’s far from over.” He thought Wall Street would perish, and America with it (it nearly did).
Yet, Wall Street survived. So did the United States. They thrived, even. One of these days, though, maybe, just maybe Karl the stopped clock might be right.
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