pressure exerted by surplus population on wages. However, he disputes Marx's prophetic argument of the law of increasing misery and suggests that trade unions, collective bargaining, and strikes can prevent capitalists from using the industrial reserve army to keep wages down. Popper also discusses Marx's theory of the trade cycle and surplus population, and his argument that the rate of profit tends to fall, leading to capitalism's inevitable collapse. Chapter 21, "An Evaluation of the Prophecy", explains that Marx's prophetic conclusions drawn from the observations of contemporary economic tendencies are invalid, mainly due to the poverty of historicism as an epistemology. Marx's sociological and economic analyses of contemporary society were one-sided but descriptive, and his system of unrestrained capitalism was not going to last much longer. Marx's hope for a decrease in state influence is commendable. "One of the historical tendencies that Marx claimed to have discovered", which "seems to be of a more persistent character than others", is the "tendency towards the accumulation of the means of production, and especially towards increasing the productivity of labour". Marx emphasized the connection between the development of productive forces and the credit system, which led to the trade cycle, and his theory of the trade cycle says that an approach towards full employment "stimulates inventors and investors to create and to introduce new labour-saving machinery, thereby giving rise (first to a short boom and then) to a new wave of unemployment and depression." When productivity increases, investments increase, consumption increases, labor time decreases, and the quantity of goods produced but not consumed increases. "Marx saw many things in the right light", but "he had no inkling of what was lying ahead", and his predictions were wrong. Marx's Ethics Chapter 22, "The Moral Theory of Historicism", discusses the ethical theory implied in Marx's "Capital". Marx condemned capitalism due to its inherent injustice and oligarchical nature, emphasizing the moral aspect of social institutions. Popper questions the historicist moral theory that all social changes and political revolutions are due to the economics of the epoch concerned, and argues that man and his aims are a product of society to some extent, but society is also a product of man and his aims. Popper concludes that our views and actions are not solely determined by heredity, education, and social influences, and gives the example of Beethoven to explain the sociological aspects of his work. The Aftermath