How can we account for the somewhat paradoxical fact that certain socialist models of the capitalist economy are often thought to be prone to political degeneration? In essence, there are four divisions among Marxist on the subject of crisis: (1) the falling rate of profit school, (2) disproportionality theory, (3) underconsumptionism, and (4) profit squeeze analysis. All but the first of these have been classified, at one time or another, as vulnerable to reformist contamination. This ceases to be puzzling once one discovers that each of the last three approaches has some resemblance to a distinct strand within establishment economics.
- Later reprinted in Foster and Szlajfer, ed. The Faltering Economy.