duvinrouge attempts to explain cyclical crises and longer term trends
A lot of Marxists seem confused about economic crises. Some evoke the fall in the rate of profit to explain cyclical crises, some underconsumption, some forget the law of value and sound like establishment economists, while some just forget the materialist foundations of Marx and drift into a world of subjective will powering the class struggle. So here’s an attempt to explain the nature of an abstract cyclical crisis and how it differs from breakdown.
A cyclical crisis is just over-production. An overproduction of commodities relative to the commodity that acts as the universal equivalent – money. In otherwords, production runs ahead of the market. There is a problem realising surplus value. As the law of value asserts itself commodity production falls, i.e. there’s a recession.