Iomparative Research In Economy Crisis Theory Of Mark And Keynes

Periodic outbreak economic crisis is a peculiar economic phenomenon to the capitalist system, which Marx and Keynes had a deep research in. Due to the essential differences in crisis theory between Marx and Keynes, in terms of research background and objective, the crisis causes and substance, there has also some differences in thinking and approaches for crisis treatment. Considering the origin of economic crisis in terms of the capitalist economic relations and economic system, Marx suggested eliminating capitalism contradiction completely and establishing socialist relations of production were essential for overcoming economic crisis. Viewing from the bourgeoisie, Keynes' economic crisis theory was based on the capitalist system as well, and stimulating consumption tended to solve this issue temporarily in his proposal. The comparative study of Marx and Keynes' economic crisis theory provides reference to China's government for consumption shortage.This study consists of four parts, besides introduction.The first part is related to the backgrounds, perspectives and assignments of Marx and Keynes'economic crisis theory. Specifically, as for the different historical background, the Marx theory derived from free competition capitalism stage while that of Keynes was from Monopoly capitalism stage. In terms of the perspectives, the former was based on the basic laws of the capitalist economic development whereas the later relied on the abnormal fluctuations of this developmental pattern. Moreover, the fundamental assignment of Marx theory was to eliminate economic crisis whilst the aim was searching for the temporary solution in Keynes'theory.The second part compared the analyses of the economic crisis reasons to Marx and Keynes. Marx thought the laborer absolute poverty was the cause of economic crisis. Basically, it is the basic contradictions of capitalism led to the economic crisis. Keynes researched from the economic agent psychological characteristics, thought that the economic crisis reason was the reduced consumption tendency.The third part compared the analyses of the economic crisis essence to Marx and Keynes. Marx's theory based on capitalist production process, he pointed out that the essence of the economic crisis was relative surplus production. Keynes's theory based on people's subjective consumption psychology, he thought that the essence of the economic crisis was the insufficient effective demand. The fourth part compared the methods of the economic crisis management to Marx and Keynes. Marx claimed that through the change in the relations of production, eradicated the capitalist contradiction, and kept balance to the two categories that can eliminate economic crisis. Keynes claimed that use inflation to expand employment, implement expansionary fiscal policies, loose monetary policies can stimulate consumption demand, and then ease economic crisis. According to above analysis, combined with our economic situation, and combined with the two theories, if can make comprehensive use that may slove our consumption shortage problem.