S/P/297. Discuss why crises occur within the capitalist mode of production and consider the ways in which they act as forcible adjustments of the system enabling new rounds of capital accumulation to begin

The paper examines the causes and consequences of crises under capitalism reviewing Karl Marx's theory, and indicating the features of the capitalist mode of production, living labour, competition, accumulation of profit, etc. Economists' opinions on the crises of overproduction are reviewed drawing examples from the history of the UK and the present situation with the Northern Rock crisis.