By Ismael Hossein-zadeh
This booklet offers a critique of the neoclassical causes of the 2008 monetary cave in, of the consequent lengthy recession and of the neoliberal austerity responses to it.
The examine argues that whereas the present perspectives of deregulation and financialization as instrumental culprits within the explosion and implosion of the monetary bubble are usually not fake, they fail to indicate that financialization is largely a sign of a complicated level of capitalist improvement. those normal factors are inclined to forget about the systemic dynamics of the buildup of finance capital, the inherent limits to that accumulation, creation and department of financial surplus, classification kin, and the stability of social forces that mildew fiscal policy.
Instead of easily blaming the ‘irrational habit’ of industry gamers, as neoliberals do, or lax public supervision, as Keynesians do, this publication makes a speciality of the middle dynamics of capitalist improvement that not just created the monetary bubble, but in addition fostered the ‘irrational habit’ of marketplace avid gamers and subverted public policy.
Due to its interdisciplinary point of view, this publication should be of curiosity to scholars and researchers in economics, finance, politics and sociology.
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Additional resources for Beyond Mainstream Explanations of the Financial Crisis: Parasitic Finance Capital
Ross, M. (2013). Goldman Sachs made up to £250 million betting on food prices in 2012. World Development Movement. uk/food-and-hunger/ goldman-sachs-made-%C2%A3251-million-betting-food-prices-2012 (accessed June 29, 2013). Shaikh, A. (1978). An Introduction to the History of Crisis Theories. S. capitalism in crisis. New York: Union for Radical Political Economics (URPE). Snyder, M. (2013). The derivative bubble: Speculating on food prices, banking on famine. Global Research, January 24. ca/the-derivativebubble-speculating-on-food-prices-banking-on-famine/5320379 (accessed February 17, 2013).
Manufacturers had invested so much in fixed capital, or capacity building, that by the late 1960s their profit rates had begun to decline as the capital–labor ratio of their operations had become too high. In other words, the enormous amounts of the so-called “sunk costs,” mainly in the form of fixed capital, or plant and equipment, had significantly eroded their profit rates (Shaikh 1987). More than anything else, it was these important changes in the actual conditions of production, and the concomitant realignment of global markets, which occasioned the gradual reservations and the ultimate abandonment of the New Deal-Keynesian economics.
It must be pointed out, however, that market religion has a major disadvantage compared to traditional or celestial religions: it promotes greed, self-centeredness and material fetishism while lacking the humanitarian or compassionate ethos of godly religions. Its response to unemployment, indebtedness and economic hardship is epitomized in the unfeeling and insensitive philosophy of “trickledown” economics of neoliberalism, which was so skillfuly popularized (among others) by President Ronald Reagan (see Nelson 2002, for example).
Beyond Mainstream Explanations of the Financial Crisis: Parasitic Finance Capital by Ismael Hossein-zadeh