the business cycle proves capitalism has failed, according to karl marx but joseph schumpeter sees theseles as proof of the glorious success of capitalism. is either man right? 1929 is the year of collision between 19th-century economic theory and 20th-century economic reality. out of the crash john maynard keynes provides a new theory of the business cycle. what was his revolutionary idea? boom and bust: who can explain the business cycle? with the help of richard gill, we'll explore that question on this edition of economics usa. i'm david schoumacher. boom or bust? why is the economy so unstable? factories sit idle or stagger along because nobody has any money to spend. workers sit home without any money to spend hoping the economy gets better so they can work again. it's a pattern that repeats itself over and over again. few people worried about trying to explain economic fluctuations during the 19th century. americans were too busy building railroads expanding commerce overseas, or creating new industry. the years after the civil war saw a continuing expansion of the american econom

the business cycle proves capitalism has failed, according to karl marx but joseph schumpeter sees theseas proof of the glorious success of capitalism. is either man right? 1929 is the year of collision between 19th-century economic theory and 20th-century economic reality.

say that that cartoon is saying something about every muslim _ like you cannot say if you depict karl marxis hands that every marxist is a killer or if you depict jesus christ on the cross with beer in his hand that all christians are drunkards. >> let's talk then about whether there are double standards in all of this. because in charlie hebdo's case, they fired a cartoonist, maurice sinet, at one point, because he drew something that was critical of nicolas sarkozy, then the french president's son, who was getting married to a jewish woman. and this was deemed to be antisemitic. so is there a double standard, where this guy gets fired for that but then has no problem publishing cartoons that are seen as making fun of the prophet muhammad? >> there is a double standard, and i think that is a problem. though i will say this _ i do not think that mocking a religious doctrine is the same as mocking the memory of 6 million people who were killed during the second world war. france does have hate speech laws, and among them, holocaust denial is a criminal offense. >> right. >> and i have for a

karl marx. you got him. nice beard!, $800.

karl marx wrote about this where he said art literature, culture are merely the superstructure of the underlying economic reality. so in this screw, poverty is the cause of everything. and if you just gave these terrorist -- people who are terrorists today jobs, everything would be fine because the root cause is always economic, it's a philosophy that doesn't always understand checks or culture. everything is economic and everything is about poverty. >> some have said that it's about the president not wanting to change his policy because in the campaign after killing osama bin laden, we all remember he used the phrase osama bin laden is dead and al qaeda is on the run. maybe he doesn't want to have to turn away from that as dana parino just mentioned, and you're not getting it quite right. but you're seeing it as a much deeper, ideological explanation? >> given the manifest failure of the president's i'd idealogy to pray itself out in the real world. but i think this is part of the president's inherent radicalism i think it reflects itself in its approach to international terrorism an

because bolsheviks as they are living out the words of karl marx, workers of the world unite, we have to go after the labor unions. mitchell palmer starts this new division where they are going to root out signs of bolshevism and labor radicalism and organized labor. these are called the palmer raids. they physically go to union halls in 1919, the early 1920's and round up people on suspicion of labor radicalism and agitation and the end of the porting a number of them. the palmer raids. the palmer raids were led by this general intelligence division palmer created, led by this zealous young investigator j. edgar hoover. his endless career is just getting started. ok. so, when we look at the labor unrest of 1919, we have to remember -- where were the workers coming from? we know because we talked about this. the workers were african-americans at this time seeking to make real the promises woodrow wilson had set forward in bringing the united states into war. going to make the world safe for democracy. from the workers' perspective this meant more democracy in the workplace. in the con

isn't there -- karl marx said that at a certain point changes in quantity become changes in quality. can you explain to us why you think those things are less important than the kinds of visionary things you talked about a minute ago? >> well, certainly there are many of these that have had a cumulative effect of being incredibly valuable. my approach is in many ways a how-to advice book for people who are going to start companies, who are going to found companies. and i think that if you want to start a successful company you want to do something where you have a monopoly where you're doing something nobody else in the world is doing it, and where there's a significant difference between what you're doing and what everybody else is doing. and i think software has been characterized by these fairly large breakthroughs which is why people in software have made so much money. it's not because it's more valuable. it's because the microeconomics of software are very monopoly-prone and very lucrative. and i think the very disturbing history of innovation is that most of the inventors and

just as reading karl marx is not the way to understand the history of the soviet union reading atoms does not allow us to understand the history of capitalism as it actually unfolded. capitalism is by now looking back on 500 years of history and it is that history that is at the center of this book. "empire of cotton" as the subtitle says it is also a global history. as you know and as i mentioned earlier most history that has been written in the past 150 years has focused on national history and indeed the entire discipline of history is organized along national lines. we publish books on particular national histories and we teach courses on particular national history such as french, chinese and american history and her personal associations dedicated to particular natural history spread this is as such not surprising as history as an academic discipline itself hand-in-hand with the nation-state and history played an important role in the constitution of nation-states. "empire of cotton" breaks with these traditions in the fundamental argument of the book is we can neither understa

. >> i've never read karl marx and i don't know the faces of communism.ed up from hearsay. from what i've heard, i don't like it. >> in 1955, the academy passed a bylaw that prohibited any blacklisted writer from being nominated for an oscar. when the "bridge on the river kwai" won best screenplay in 1957, the original novelist collected the oscar but he didn't write the script. >> for the best writing of a motion picture -- >> the two writers who did, michael wilson and carl foreman, were on the blacklist. so for the academy, they didn't exist. >> some people committed suicide when they were on that list. there were people that moved to europe and never came back. >> some blacklisted writers continued working under pseudonyms. >> the nominations for best picture motion picture story are robert rich. >> when they won oscars for best screenplay, there was no one to walk up the aisle. >> vice president of the screenwriters association will accept the award. >> after four years, the academy reversed itself. much later, it officially welcomed back those it ha