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He also argued that wars among the capitalist nations for markets would be eliminated because these nations would no longer suffer from a shortage of markets.

As we know, Keynes’s monetary reform was fully put into effect by 1971, but as today’s mass unemployment crisis shows, this has not led to the promised “full employment” or abolition of crises and depressions.

A much more radical monetary reform proposal, called labor money, was popular among some socialist critics of capitalism in mid-19th century Europe.

Bitcoins can be transferred through a computer or smartphone without an intermediate financial institution.” A short history of monetary reform before the Internet One monetary reform that was popular among small farmers and small businesspeople in the late 19th-century U. The increased demand would, the supporters of bimetallism argued, put unemployed workers back to work.

In this way, the bimetallists hoped to unite the interests of workers, small farmers and small businesspeople against the rising power of the Wall Street banks.

The difference between the quantity of labor that the workers have to perform for the capitalists and the hours of labor that are necessary to produce their ability to work Marx called surplus value.

(For a more detailed explanation of the origin of surplus value, see this post).

This effect is known as “Gresham’s Law,” named after the early British economist Sir Thomas Gresham (1519-1579). dollar from the value of the gold dollar down to the value of the silver dollar. A wave of bank runs and an associated stock market crash that occurred in the northern hemisphere spring of 1893 has gone down in history as the “panic of 1893.” This panic was followed by a prolonged period of depression, mass unemployment and plunging commodity prices.

Under Gresham’s Law, cheap silver dollars would have driven gold dollars out of circulation, leaving the silver dollar as the standard dollar. Fearing that supporters of bimetallism would win the upper hand in the U. government during the 1890s, foreign capitalist investors began to cash in their U. dollars for gold, leading to a series of runs on the U. Treasury’s gold reserve as well as the gold reserves of U. This was the exact opposite of what supporters of bimetallism desired.

That is, they believed the only reason that a class of non-workers living off rent, interest or profit could exist was that Ricardo’s law of the exchange of equal quantities of labor was being violated in practice.

(2) These monetary reformers believed that if labor money was adopted, Ricardo’s law of the exchange of equal quantities of labor would be put into effect rendering the existence of an exploiting class of non-workers impossible.

Keynes believed that getting rid of the gold standard was the key to eliminating the problem of inadequate monetarily effective demand and the resulting mass unemployment.

Under the gold standard, Keynes argued, governments and central banks could not follow “full employment” policies because they had to maintain the convertibility of their currencies into gold at a fixed rate.

Workers sell their labor power to the capitalists at its value.

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