Chapter 7: The cyclical nature of capitalism

Question 1

The nature of capitalism

Answer 1

Roosevelts New Deal, followed by WW2, turned the cycle from economic collapse into an economic boom. The post-war boom, which lasted from 1945 to 1968 was the longest boom in history

Question 2

cyclical crisis of capitalism meaning

Answer 2

it is subject to repeated periods of boom and slump of inflation and recession.

Question 3

Do they happen often

Answer 3

they happen regularly in capitalist economies. Marxist theory holds that these periodic crises will eventually cause the capitalist system to self destruct

Question 4

What is the Marxist theory on capital

Answer 4

Marxist theory holds that these periodic crises will eventually cause the capitalist system to self destruct

Question 5

Has a cyclical crisis happened yet?

Answer 5

no, it has not happened,

Question 6

An example of cyclical decline

Answer 6

In 2008, the American economy went into a slump after years of economic boom. President Obama became president in 2009, during America’s worst economic crisis since the Great Depression. The financial and banking sectors were in ruins, Americans were deeply in debt and consumers has stopped spending. The price of houses had dropped and unemployment was soaring