Rhetoric on “The End of Capitalism” - The Possibility of Forecasting the Future and the Possible Scenarios of Capitalism



According to the classical economists such as Ricardo, labour was considered as the only factor of production; while capital, realized in machinery, tools and the like was identified as the accumulated labour and that inferior lands can be exploited due to the use of labour on them. But, in the long run development of capitalism in the western countries, this idea, i.e. labour as the base of production of wealth for human being, lost its importance due to some facts: For years, economic growth rates in major developed countries were lower than the long run interest rates. Evidence from the ensuing economic crisis like the incredible growth of debts, concentration of financial and monetary assets, production capacity expansion at the global level and permanent developments of labour saving technologies, the accumulation of wealth in the hands of a minority of the population has resulted in the decrease in total consumption and increase in saving (though banking rates in major industrial countries have tended to decline relatively). Now at the present time, the fundamental question is how will the capitalist system evolve? Will the capitalist system this time be able to identify its internal and external challenges and to modify itself by using the positive and negative feedbacks? Or, will be destroyed by the internal and external challenges sooner or later? This article tries to find an answer for the above question.
JEL Classification: P17, P11