Question

Why did Karl Marx considered inflation to be the main economic problem that would ultimately cause the collapse of capitalism? Explain.

Answer 1

Karl Marx's seminal work "Das Kapital," his magnum opus first published in 1867. In his book, Marx described his theory of the capitalist system, its dynamism, and its tendencies toward self-destruction.

According to Marx, it was not due to the pressure of labor pools that drove wages to the mimimum level but rather the existence of a large army of unemployed people, which he blamed on the capitalists. He said that within the capitalist system, labor was a mere commodity that could gain only subsistence wages.

thus inflation would cause the major unemployment which ultimately leads to the cause of the collapse of capitalism.