Commodity, Effective Demand and Crisis

Abstract

The reason for the comprehension shock by economists caused by the economic crisis is due to the general use of model based on Say’s law. Accepting the law in theory disables the consideration and the study of capitalist crisis. Therefore, when it occurs in practice, the media is loaded with questions and incongruous explanations, showing that the theoretical economic model mostly adopted does not fit capitalist reality. Marx and Keynes, trespassing the limits of say’s law, initiated the formulation of the theory of capitalist crisis with different methods, what resulted in different levels of explanation for disequilibrium. This paper argues that the theory of capitalist crisis can be constructed through combination of the concepts of commodity contradiction and effective demand. It also indicates that the economic thought of Keynes synthesizes the contradiction between plan and market.