I don’t always agree with Chomsky, but what he says here about Marxism is spot on. The interesting and insightful individual concepts in Marx’s Capital – say, the idea of the monetary production economy, endogenous money,* the rudiments of aggregate demand theory, etc. – should be taken up in contemporary economy theory and developed. The other absurd, dogmatic and untenable aspects of Marxism – the labour theory of value, falling rate of profit idea, etc. – should be utterly rejected. Marx should be read as part of the history of economic theory, and his whole theory was essentially a failed theory of 19th-century capitalism, nothing else.
* I hasten to add that endogenous money theory was known well before Marx and he did not originate the theory.