A concept in Crisis Theory that states there is an inherent contradiction within Capitalism.
Process
- Power of labour is broken causing wage repression or deflation
- Corporate profits increase in proportion to the degree at which wages fall
- We sell or support market with more goods
- Increasing supply is problematic as demand is the same population as those with represesed wages
- Credit markets are pumped up in order to supply average consumer with more buyingpower
- Causes a Recession
- Cascading defaults manifest in institutional failure