What follows is an introduction, in very broad brush strokes, to some basic aspects of Marx’s approach to economic analysis. It is on a similar introductory level to an earlier treatment of classical political economy. The present post serves both as a follow up to that earlier one as well as background for future posts on Marx and Marxist economics.
In an economic slump, it is misguided to cut public expenditure on services such as libraries, education, health care, and so on, as well as to remove welfare protections for the most vulnerable. In a modern monetary system – one in which government issues the currency and preferably permits the exchange-rate to float – financial affordability is not an issue. A currency-issuing government is not like a household.