Economist and Marxist thinker Prabhat Patnaik has declared that capitalism is currently facing a profound stagnation, effectively reaching a ‘dead end’ where it can no longer progress, casting a long shadow over the global economy.
During a recent address, Professor Patnaik asserted that the dramatic rise in income inequality seen across all nations operating under the neoliberal economic system has directly led to this systemic stagnation.
He explained that signs of this economic deadlock became apparent shortly after the neoliberal capitalist model began to take hold.
Patnaik highlighted two alarming consequences of capitalism’s current impasse. The first is the resurgence of neo-fascism, which has already seized power in various countries. He described fascism as being built on two core tenets: severe repression and the deliberate incitement of hatred against vulnerable religious or ethnic groups. Such regimes are characterized by harsh suppression, the weakening of democratic institutions, and the marginalization of minorities.
The second consequence is a surge in economic aggression, evident in policies like tariff wars. Patnaik criticized these policies as embodying a ‘beggar-thy-neighbor’ approach, where countries attempt to export their unemployment, thereby exacerbating global instability.
He drew parallels to revolutionary theorist Rosa Luxemburg’s foresight, who predicted that capitalism would eventually reach a point where it could no longer accumulate further capital, leading to its inevitable collapse from internal contradictions. While a complete breakdown might not be immediate, Patnaik noted that today’s crisis of stagnation strongly echoes Luxemburg’s dire prophecy.
Despite various efforts to revitalize this struggling system, Professor Patnaik contended that capitalism’s contemporary state reveals its intrinsic immorality, violence, and militarism. He cited ongoing conflicts, such as the dire situation in Gaza, and increased military build-ups across Europe as clear manifestations of a decaying global order.
In his concluding remarks, Professor Patnaik issued a grave warning: in its desperate struggle for survival, capitalism is propelling humanity towards a dangerous precipice, a ‘new hell’ of its own creation.
This insightful critique was delivered during an event where Professor Patnaik received the prestigious Prof. V. Aravindakshan Award-2025, an occasion that further emphasized the urgency of understanding and addressing the profound challenges posed by contemporary capitalism.