Crisis Theory.

[Broletariat]

My understanding of Crisis Theory is that Crisis is a periodic event that comes about as a result of one of two things. The rate of profit has fallen low enough to cause a crisis, or misinvestment causing crisis.

I've been arguing with a cappie who posits that Crisis is not periodic and can be avoided via a cap on nominal spending growth, he uses the example of Poland and its lack of crisis.

I have no idea what nominal spending growth is. Need some clarification here.

[robbo203]

My understanding of Crisis Theory is that Crisis is a periodic event that comes about as a result of one of two things. The rate of profit has fallen low enough to cause a crisis, or misinvestment causing crisis.

I've been arguing with a cappie who posits that Crisis is not periodic and can be avoided via a cap on nominal spending growth, he uses the example of Poland and its lack of crisis.

I have no idea what nominal spending growth is. Need some clarification here.

In Marxian theory , disproportional or unbalanced growth is the main mechanism behind the capitalist trade cycle. There is a good introductory article to this here http://www.worldsocialism.org/articles/booms_and_slumps_what.php