Abstract:

The World Crisis that we are passing through is the second major crisis of the last century, that took place some eighty years after the big 1929 Crash. Though we have learned quite a lot about crisis management it is obvious that as the result of present crisis millions of people will be unemployed and much of capital stock wil be devalued. In spite of all such social and economic disasters, it is a great shame in the name of humanity, that economists of our time have not been mature enough to foresee such economic upheavals, neither have they been quite expert to devise and launch efficient policy measures against crisis. The reason for this unsatisfactory performance on the side of economists is the view that has been adopted by the mainstream economists, which neglect the dynamics of capitalist system and can not disclose the crisis-triggering forces inherent in the system. However, when Marxian economic analysis method has been employed, one can get an in-depth understanding of the dynamics of capitalist , as the result of which profit and accumulation motive can be observed as the main reason of economic crisis. Policies developed to cope with crisis in the context of classical economics will not be of any cure to such disasters, but will be effective only in mitigating the symptoms of crisis to some extent.

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