We have seen two complementary threats to capitalism. In addition to the falling rate of profit we have seen Marx’s analysis of the boom/bust cycle. Capitalist crisis will follow capitalist crisis, and with the increasing globalization of trade, and growing commodification of all activities, each one will be more damaging than its predecessor. In sum, then, the natural functioning of capitalism means that it is a system in terminal decline; like so many of its products it has built-in obsolescence. Eventually it becomes so weak that it will be vulnerable to revolutionary overthrow.
Recall that we began examining Marx’s economic theory as an adjunct to his theory of history. Just as feudalism was taken over by capitalism, capitalism will be replaced by com- munism. We have seen, now, why Marx thinks that capitalism will come to end. At the highest level of abstraction it fails because eventually it will fetter the development of the productive forces. In more detail the falling rate of profit and increasing tendency to crisis does the harm. But why is any of this a reason for thinking that communism will come on the scene? That is our next topic.