Why Karl Marx Predicted the Fall of the Banking System in 1867

Understanding economics and history can gives us insight into the future of finances. This is not to say that we want to change the way our country is run and give all power to the government. It is a way to understand the different views of the world outside of our own, and see what works and what does not. In regards to Karl Marx, who was by many considered a revolutionary, and historian, as well as an influential socialist thinker; his views on finances are something worth looking into these days. This could explain the rise in the popularity of his books and writings, and the addition of classes being offered at universities and colleges.

While his ideas are disregarded by some scholars, others believe he was onto something in the areas of politics, social reform, and finances. He believed that having a country’s finances run by the banking system and private owned banks would influence people to spend more, which in turn would led to them overspending, and result in the banking industry going bankrupt. Imagine that? This scenario sounds very familiar, doesn’t it?

As we have learned spending more money than you have in your pocket can be a disaster. At the present point in history we face a recession that affects everyone. From the rich to the poor, of course, it affects the later in more ways, but the long term problems will take a bite out of everyone’s wallet. We have seen gas prices rise and fall, and this leads to companies charging more fees for deliveries. This is the case on a local level where even having a pizza delivered cost more these days.

The problem we all face is when the gas prices dropped the businesses that already hiked their prices on goods did not make the same adjustment. To be fair we can admit some businesses have reduced their prices, but more often than not we find these reductions in the form of a sale or imaged saving.

Think of it in the terms of daylight savings time. Those in the Midwest who never had to turn their clocks ahead or back in the fall were just fine with it. They could adjust to different time zones when they traveled, and were content to go back to normal when they returned home. Now some states have switched over to daylight savings time and say it is better for business. Okay, perhaps, but it does not matter how you look at it, when it comes to getting out of bed an hour earlier, some people would prefer things had stayed the same.

This is the problem we face in regard to pricing. Although businesses say they have lowered the prices, we certainly know what they were before and fell the difference in the weight of our wallets. In the pursuit for profits, our nation has gone beyond its spending limit and it is time to think of a new way to handle our finances. This road will be long and along the way there will be detours and potholes to avoid, but it may be worth the journey so we do not find ourselves picking only lent out of our pockets in the future.

Just as with your health, it is wise to seek the advice of a professional when you have questions about your educational and financial well being.

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