This article draws on Marxist theories of crises, imperialism, and class formation to identify commonalities and differences between the stagnation of the 1930s and today. Its key argument is that the anti-systemic movements that existed in the 1930s and gained ground after the Second World War pushed capitalists to turn from imperialist expansion and rivalry to the deep penetration of domestic markets. By doing so they unleashed strong economic growth that allowed for social compromise without hurting profits. Yet, once labour and other social movements threatened to shift the balance of class power into their favor, capitalist counter-reform began. In its course, global restructuring, and notably the integration of Russia and China into the world market, created space for accumulation. The cause for the current stagnation is that this space has been used up. In the absence of systemic challenges capitalists have little reason to seek a major overhaul of their accumulation strategies that could help to overcome stagnation. Instead they prop up profits at the expense of the subaltern classes even if this prolongs stagnation and leads to sharper social divisions.