Tag Economy

Nouriel ‘Dr. Doom’ Roubini: ‘Karl Marx Was Right’

Nouriel ‘Dr. Doom’ Roubini: ‘Karl Marx Was Right’

There’s an old axiom that goes, “wise is the person who appreciates candor almost as much as good news.” With that as a guide, place the forthcoming decidedly in the category of candor.

Economist Nouriel “Dr. Doom” Roubini, the New York University professor who four years ago accurately predicted the global financial crisis, said one of economist Karl Marx’s critiques of capitalism is playing itself out in the current global financial crisis.

Marx, among other theories, argued that capitalism had an internal contradiction that would cyclically lead to crises, and that, at minimum, would place pressure on the economic system.

Companies, Roubini said, are motivated to minimize costs, to save and stockpile cash, but this leads to less money in the hands of employees, which means they have less money to spend and flow back to companies.

Now, in the current financial crisis, consumers, in addition to having less money to spend due to the above, are also motivated to minimize costs, to save and stockpile cash, magnifying the effect of less money flowing back to companies.

“Karl Marx had it right,” Roubini said in an interview with “At some point capitalism can self-destroy itself. That’s because you can not keep on shifting income from labor to capital without not having an excess capacity and a lack of aggregate demand. We thought that markets work. They are not working. What’s individually rational … is a self-destructive process.”…




Study estimates that illegal immigrants paid $11.2B in taxes last year, unlike GE, which paid zero


I bet most of you didn’t know undocumented immigrants contributed more – much more – to the national treasury last year than General Electric. Surprised? Yet it’s true.While GE – which earned a whopping $14 billion last year – is reported to have paid nothing, nada, zero in taxes (GE denies it), the undocumented paid billions in state and local taxes in 2010…




On Immigrant Entrepreneurialism

On Immigrant Entrepreneurialism

With New York City’s financial sector expected to lose 65,000 jobs in the current economic downturn, it’s more apparent than ever that the city needs to diversify its economy and nurture new sources of job growth. While it’s difficult to predict which industries will give the city the economic jolt it needs, it’s a good bet that immigrant entrepreneurs will provide a key spark to the city’s recovery.