2. In her 1913 book, The Accumulation of Capital, Luxemburg argues that Marx oversimplified the relationship between capital and labor, that productivity increases would make accommodation between the two sectors impossible: Capitalism would inevitably collapse as it would run out of markets to exploit, at home and abroad.

3. Thomas Sowell, Say's Law. (Princeton: Princeton University Press, 1972), pp. 168-190. Sowell argues that "Marx had no labor theory of value, for example. His business cycle theory is equally remote from popular beliefs about it. As in other areas of Marxian thought, prevailing interpretations and their origins must be analyzed along with Marx's own theories." Marx in fact scorned the idea that workers should receive the full "value" of their product, calling this a "utopian interpretation of Ricardo's theory." Sowell also points out that Marx was not an "underconsumptionist," a demand-side forerunner of Keynes. "Interpreters who have viewed Marx as [such] have been driven to the farcical expedient of quoting each other and ignoring Marx."

4. In Writings of the Young Marx on Philosophy and Society (L. Easton and K. Guddat, eds., New York: 1967), p. 201, Marx explicitly argues that democracy is the only way the divisions of society could be overcome: "It is not a question whether civil society should exercise legislative power through deputies or through all as individuals. Rather it is a question of the extent and greatest possible universalisation of voting, of active as well as passive suffrage."

5. From Karl Marx and Friedrich Engels, The Communist Manifesto (1848; English translation of 1888, edited by Engels), reprinted in Modern Political Thought: The Great Issues, ed. by William Ebenstein, (New York: Holt, Rinehart & Winston, 1960), pp. 413-22. In another typical passage celebrating these bourgeois forces of production: "Modern industry has established the world market, for which the discovery of America paved the way. This market has given an immense development to commerce, to navigation, to communications by land. This development has, in its turn, reacted on the extension of industry; and in proportion as industry, commerce, navigation, railways extended, in the same proportion the bourgeoisie developed, increased its capital, and pushed into the background every class handed down from the Middle Ages. We see, therefore, how the modern bourgeoisie is itself the product of a long course of development, of a series of revolutions in the modes of production and exchange."

6. Karl Marx, The Grundrisse. Edited and translated by David McLellan. (New York: Harper Torchbook, 1972). In his introduction, McLellan argues that a clear understanding of Marx is not possible without a reading of his Paris Manuscripts, which were not published until the late 1950s: "This reappraisal may have been slow, but, in the minds of some, it was radical, and Marx was discovered to be a humanist, an existentialist, even a 'spiritual existentialist.'" p. 1. In The Grundrisse itself, written when Marx was 41, we find him disputing Adam Smith's concept of labor as an individual's sacrifice of his time and energy for purposes of exchange: "It seems far from A. Smith's thoughts that the individual, 'in his normal state of health, strength, activity, skill and efficiency,' might also require a normal portion of work, and of cessation of rest... The result [of overcoming obstacles] is the self-realisation and objectification of the subject, therefore real freedom, whose activity is precisely labor." p. 124.

7. Ibid. p. 48.

8. Frederich Engels, Anti-Duhring. (New York: International Publishers, 1966), p. 165. In this important exposition of Marxism, Engels makes it absolutely clear that a classless society has nothing to do with the kind of egalitarianism often attributed to Marx. Anything beyond the opportunity to move between social groups would be an "absurdity." p. 118.

9. Jude Wanniski, The Way the World Works. (New York: Basic Books, Inc., 1978), pp. 150-51. As I put it then: "Beneath the sarcasm and rage of Capital and the Communist Manifesto, there is an undeniable admiration for the efficiencies of the laissez-faire growth model. Indeed, it is super-efficiency that flaws capitalism in Marx's view. The system is so efficient that it 'over produces,' which means there must be periodic crashes, contractions, in order to restore equilibrium. The masses take the brunt of the contraction. They ultimately must react politically to defend themselves against this cycle of pleasure and pain. The proletariat takes matters into its own hands if only to smooth out the cycle and distribute both the pleasure and the pain more equally among the classes."

10. In Theses on Feuerbach, which Marx wrote in 1845, he argues: "The materialist doctrine that men are products of circumstances and upbringing and that, therefore, changed men are products of other circumstances and changed upbringing, forgets that circumstances are changed precisely by men and that the educator must himself be educated." Quoted in Modern Political Thought: The Great Issues, 2nd Ed. William Ebenstein, ed. (New York: Holt, Rinehart and Winston, Inc., 1960), p. 410.

11. Karl Marx and Friedrich Engels, "Class Struggles" in Anthology of World Prose (New York: Halcyon House, 1935), p. 821.

12. In Charles P. Kindleberger's 1985 collection of essays, Keynesianism vs. Monetarism (London: George Allen & Unwin), there is the only serious mention of my Crash hypothesis by a renowned academic that I've yet found. Kindleberger, an MIT professor emeritus, actually cites the theory in five separate essays, although in each he argues that it is probably not valid: "In the Way the World Works (1978), Jude Wanniski even tries to explain Black Thursday and Black Tuesday, 24 and 29 October 1929, respectively, by the defeat of some low-tariff adherents in a Senate subcommittee on a minor carbide item somehow foreshadowing the passage of Smoot-Hawley tariff some nine months later, its signing into law by widespread protest at home and abroad, retaliation by some forty countries, and the world depression that ensued." Kindleberger obviously did not read the book, though, as the critical measure involving 20,000 commodities was far beyond the subcommittee stage, had already passed the House, breaking through a wall of opposition on the Senate floor during that fateful week.

13. Hawley is quoted in Frank Knight's 1921 Risk, Uncertainty and Profit (New York: Augustus M. Kelley Reprints of Economic Classics, 1964), in itself one of the most important supply-side books of the century, its ideas thusfar successfully drowned out by the demand-side: "...the profit of an undertaking, or the residue of the product after the claims of land, capital, and labor (furnished by others or by the undertaker himself) are satisfied, is not the reward of management or coordination, but of the risks and responsibilities that the undertaker...subjects himself to."

14. See Jude Wanniski, "Macroeconomics: The Enemy Within," The Wall Street Journal, June 27, 1991, op-ed page, and David P. Goldman, "Growth Economics and Macroeconomics," The Public Interest, FALL 1991, p. 78. According to Goldman, "Von Neumann showed that it was only possible to describe a growing economy by a system of capital equations under the condition that every part of the economy grew in precisely the same proportion. Any change whatever in these proportions -- of capital to labor, or nuts to bolts -- would make the system of equations insoluble. Since innovation alters the mix of production factors, by implication no system of equations can measure its effect on an economy."

15. Ludwig von Mises, Human Action: A Treatise on Economics, third revised edition (Chicago: Contemporary Books, Inc., 1963), pp. 808-09. Von Mises includes a devastating critique of Marxism in this compendium, although he does separate Marxists from other socialist schools with: "...the Marxists do not praise and kindle the class struggle for its own sake. In their eyes the class struggle is good only because it is the device by means of which the 'productive forces,' those mysterious forces directing the course of human evolution, are bound to bring about the 'classless' society in which there will be neither classes nor class conflicts." p. 675.

16. David McLellan, The Thought of Karl Marx: An Introduction, (New York: Harper & Row, 1971), pp. 183-84. McLellan quotes from Marx of 1872 that "What all socialists understand by anarchism is this: as soon as the goal of the proletarian movement, the abolition of classes, shall have been reached, the power of the state, whose function it is to keep the great majority of producers beneath the yoke of a small minority of exploiters, will disappear and governmental functions will be transformed into simple administrative functions." p. 184.

17. David McLellan, The Thought of Karl Marx: An Introduction, (New York: Harper & Row, 1971), pp. 183-84. McLellan quotes from Marx of 1872 that "What all socialists understand by anarchism is this: as soon as the goal of the proletarian movement, the abolition of classes, shall have been reached, the power of the state, whose function it is to keep the great majority of producers beneath the yoke of a small minority of exploiters, will disappear and governmental functions will be transformed into simple administrative functions." p. 184.

18. Charles Horner, "China on Our Minds," Commentary, January 1994, p. 52. Horner obviously enjoys tweaking the Establishment, early on in his article giving us this: "These days, of course, China is showing itself amenable to a softer kind of Westernism, one without hard political edges or doom-laden visions, and preoccupied with making money. Yet western relief over this seeming conversion of one-fourth of mankind to a faith in 'market forces' has been short-lived, and is now dampened by an anxiety which, in certain quarters, has already given way to dread."

19. In Anti-Duhring, op cit., Engels, in discussing the economic theories of David Hume, at one point notes: "Everyone knows the passionate fight that the masses of the English people were waging, just in Hume's period, against the system of indirect taxes which was being systematically exploited by the notorious Robert Walpole for the relief of the landlords and of the rich in general." p. 264.

20. The black "underclass" certainly fits Marx's definition of a class, one conscious of itself, with common hostility to another social group. While we tend to ascribe a certain dignity to "political prisoners" that we would never think of assigning to the criminal underclass, it remains the case that American society must realistically conclude that flaws in the political system are primarily responsible for the rage that is common to both "political prisoners" and the "underclass" -- rage being the pain felt by a real or perceived injustice or slight. With 68% of blacks now being born out of wedlock, it would be foolish not to attribute much of the outrageous behavior of young black men and women to the experimental social engineering of the entrenched political class.

21. As it is, more than half of all African American college graduates in the United States today are employed by public or private concerns engaged in the redistribution of wealth to the black and white underclass.

22. Reuven Brenner, "Taxation in General, of Capital Gains in Particular," Typescript, January 7, 1994, p. 14. Brenner adds: "The reason that this argument is rarely mentioned in public debates is that it cannot be summarized in the simple sound bite or diagram, whereas how much the rich, the middle and the poor have, can be. The fact that many families move up and others go down within the distribution of wealth, and thus the fact that we are not talking about the same people staying permanently rich or poor, is never even mentioned, and is lost in the superficial public debates and presentations."

23. Marx was born of Jewish parents, from a long line of rabbis, who converted to Christianity after his birth. Marx himself was baptized at the age of six and was conscientious in his practice through his teenage years. While he remained an admirer of Christ throughout his life, in his college years he developed a hostility to organized religion. This grew out of his identification of the church as a conscious agent of the political oligarchs in suppressing the interests of the working class. In 1952, age 16, I literally left the Catholic Church during Sunday mass when the Irish pastor, in his sermon, praised Senator Joe McCarthy and identified "the Jews" as his principal opponents. I returned to the church in 1966.

24. Writings of the Young Marx, op cit., p. 39.