Michael Roberts, a Marxist economist, emphasises the relevance of Marx’s labour theory of value, arguing that it underpins modern Marxism. According to him, only human labour can create value; without workers, nothing would be produced. He critiques mainstream economic theories that view value as determined by individual demand, asserting that the true basis lies in the labour time required for production.
Roberts explains that commodities possess both use-value and exchange-value, revealing the capitalist’s exploitation of labour. Workers are paid less than the value of the goods they produce, creating what Marx termed ‘surplus value’. This exploitation is obscured in the capitalist system, where wages for labour fail to reflect the value generated.
He discusses the impact of tariffs and protectionism under Trump’s administration, noting a shift from globalism to nationalism, aimed at stifling rivals, particularly China. This trend could further complications in trade and is not just a fleeting threat, as tariffs are expected to affect international relations and commercial interests.
Economic inflation is another concern Roberts highlights. He attributes the recent inflation spike to weak productivity and supply chain disruptions, rather than government spending or rising wages, contradicting common narratives about demand-driven inflation. He predicts that Trump’s tariffs may exacerbate inflation due to increased import prices while high interest rates threaten companies’ financial stability.
Roberts identifies a “scissor effect” where low profits and high-interest rates pose significant risks to the economy. This precarious balance could lead to recession and heightened credit issues, risking a financial crash as debt remains hidden in private equity and unregulated sectors.
On immigration, he denounces Trump’s mass deportation policies as inhumane and economically damaging. The targeting of immigrant labour could reduce overall growth and increase inflation, as these workers are essential to various sectors of the economy. Roberts argues the need for unity among workers, irrespective of their immigrant status, to bolster wages and job security.
He notes that while some left economists dismiss the trend of diminishing profits as irrelevant, he argues that Marx’s law highlights the systemic issues facing capitalism. Roberts posits that the persistent need for profit drives recurring crises and shows capitalism’s limitations.
Despite the long-standing depression, he believes a major economic slump could potentially reset the system, with capitalists reluctant to embrace this change due to potential unrest. Therefore, they opt for bailouts to maintain stability. Yet, there may be signs of an upcoming upswing in the economy with new technologies and expanding markets.
Roberts concludes with a stark warning that previous economic recoveries were often inextricably linked to war, a perilous option in today’s nuclear era. The delicate balance of capitalism faces immense pressures, and the path forward remains uncertain.
In an interview with Michael Roberts, he stresses the centrality of Marx’s labour theory of value, which contends that human labour creates value. He critiques the mainstream economic perspective on value as dependent on individual demand. Roberts also discusses the implications of Trump’s protectionist policies and continued inflation, attributing them to supply shocks rather than demand. He highlights challenges such as high corporate debt and systemic exploitation of labour, concluding with a warning about the dangers of longer-term economic stagnation and potential war-driven recoveries.
The discourse with Michael Roberts underscores the crucial relevance of Marx’s labour theory of value and the persistent challenges within the capitalist system. He highlights the impact of exploitation, the risks of inflation exacerbated by protectionist policies, and the threat posed by high corporate debt amid low profitability. Furthermore, he warns against the inhumane policies targeting immigrant labour, advocating for solidarity among workers. Ultimately, while capitalism faces potential upheavals, the implications of these shifts remain fraught with uncertainty and risk. Roberts calls attention to the choice facing capitalists between prolonging stagnation through bailouts or facing the tumult of a necessary economic correction. The future trajectories of economic relations could shape global dynamics significantly.
Original Source: www.leftvoice.org
