ABSTRACT
The saturation of the domestic market led capitalists to seek various ways to employ their wealth. One of these was investment abroad. The globalisation policies, decided upon by the western countries in the 1970s, consisted in liberalising international trade, in the hope of extending the traditional advantage of the developed economies in the world market. The western economies are oppressed by rents and unproductive capital in search of productive employment. In the very long run, a new trade balance should appear, but meanwhile in the western countries manufacture will be dismantled, high unemployment will become permanent and poverty will spread further. A key element in depression has been the confusion between productive and unproductive investments, and between productive and unproductive labour. Another type of confusion that has contributed to depression is between production of profit and production of wealth. The confusion between profit and wealth stands in the way of recognising saturation and encourages parasitism.
