I’m pausing my critical review of Anwar Shaikh this month. Instead, I’ll devote this post to examining the current economic and political situation as it appears from the belly of the beast.
The economic contradictions of the capitalist system are coming to a head. This happens just before a universal crisis of general commodity overproduction. It’s particularly marked this time due to the frenzied character of the COVID aftermath boom. We’re seeing the contradiction between the capitalist system’s drive to continuously expand production and the limits on production imposed by the market’s ability to absorb commodities at a profit.
The Federal Reserve System is trying to slow the U.S. economy to a sustainable pace without sending it into a politically damaging recession. It says it wants less hiring and a slower expansion of production to fight inflation. Inflation is seen to be the result of too little commodity production relative to demand. How does reducing the number of people employed and slowing the production rate reduce inflation? Shouldn’t the answer be to produce more and employ more?
A Critique of Crisis Theory 
What if they found a scientifically way to make gold? would that solve the crisis of overproduction permanently with a ever increasing supply of gold?