Carlos Arze Vargas

The fact that one of the risks inherent to the capitalist system – the over-production of capital derived from attempts to counteract the fall of profit rates by means of an increase of the reserve rates – has come to pass is evidence of the structural nature of the current economic crisis. This not only disproves the theory that a lack of state regulation of financial capital brought about the crisis but also calls for responses beyond those applied to date: essentially, increasing public debt in order to buttress corporate balance sheets.