process of creative destruction where obsolete companies products and technology go bust clearing the ground for innovation and economic growth.

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process of creative destruction where obsolete companies products and technology go bust clearing the ground for innovation and economic growth.

According to Marx businesses pay their workers less than the value of the product of their labor in Show more According to Marx businesses pay their workers less than the value of the product of their labor in order to make a profit. The businesses then reinvest these profits to be able to expand production. At the same time the workers cannot afford to buy what they have produced. This leads to: (a) the growth of the financial sector as workers borrow more and more. (b) more inflation as the central bank prints money so workers have more money. (c) a process of creative destruction where obsolete companies products and technology go bust clearing the ground for innovation and economic growth. (d) crisis of overproduction or what is known as recessions. Show less

 

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