Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/175324
Authors: 
Herr, Hansjörg
Year of Publication: 
2018
Series/Report no.: 
Working Paper, Institute for International Political Economy Berlin 98/2018
Abstract: 
Today we can learn from the Communist Manifesto that unregulated markets lead to disastrous economic, social, and political developments, which can endanger the reproduction of the capital system itself. The liberal argument, based on Adam Smith's invisible hand - that markets coordinate the selfish actions of millions of people and lead to the welfare of nations -, is a dangerous dream. The consequence is that politicians should not listen to economists, including foreign advisors who preach the liberal dreams of radical versions of capitalist systems. Especially for developing countries, it is vital that they strive for a regulated version of capitalist development. Marx and Engels had a deep understanding of the functioning of capitalism. They underestimated the possibilities to regulate the capitalist system and also allowed the working class to take part in prosperity. However, there is always the danger that capitalist systems evolve with low levels of regulation with the features of capitalism analysed in the Manifesto.
Subjects: 
Marxism
Communist Manifesto
capitalism
development strategy
JEL: 
B14
B30
O11
Document Type: 
Working Paper
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