It is now universally recognized that the U.S. economy is experiencing a deep downturn unlike anything seen since the 1930s. Hence, the question continually arises: How close is this to a depression? One way of answering is to look at the unemployment rate. The Great Depression hit bottom in 1933 when unemployment peaked at 25 percent. Today the United States is losing jobs at the rate of 600,000 a month. But the official unemployment rate currently stands at 8.1 percent (seasonally adjusted, February 2009). This is the highest rate of official unemployment in a quarter-century, but hardly what is considered a depression-level rate, which is usually thought of as well into the double-digits. | more…
On the eightieth anniversary of the 1929 Stock Market Crash that led to the Great Depression, the United States is once again caught in a Great Financial Crisis and deep downturn of an order of magnitude comparable to the 1930s. At the center of this crisis is plunging consumer spending, caused by the destruction of household finance as a result of decades of wage stagnation and the piling up of debt. Consumer spending in today’s economy, dominated by giant firms, is significantly dependent on the sales effort, i.e., marketing as a whole, with advertising as its most conspicuous form. But the sales effort is also ebbing in the crisis, contributing to the general decline. So integral is the sales effort to the regime of monopoly capital that one cannot be understood without the other. | more…
As the first tremors of the looming financial crisis ripped through Wall Street, with the meltdown of the subprime mortgage market in the summer of 2007, the dollar plunged sharply. Perversely however, even as some financial pundits were foretelling its collapse, the deepening of the crisis following the bankruptcy of Lehman Brothers in September 2008 actually saw the dollar gain ground sharply (for the first time since the steady decline that began in 2002. | more…
For almost thirty years Turkish capitalism has taken the form of neoliberalism. Turkey’s subordination to the world neoliberal order started in the late 1970s and was pursued consistently after the 1980 military coup. The coup reflected Hayek’s contention that a transition to “free markets” may require a dictatorship.1 By dissolving political and social opposition, the coup provided the necessary political environment for the shift from the import substitution industrialization that framed economic policy since the 1960s to an export-oriented economics. During the interim regime (1980–83), Turkey experienced a fierce process of depoliticization, which limited the opportunities for an effective opposition against the launch of neoliberal policies. All segments of the labor movement that had made political gains in the preceding decade were banned from politics and the majority of prominent activists were imprisoned. The general elections held in 1983 were a farce. The military rulers banned all political parties that had organic links to pre-coup political organizations and that were in opposition to the coup and the interim regime, and allowed only three political parties to participate. | more…
It seems that nearly everyone publicly supports the reunification of Korea — the governments of the United States, North Korea, and South Korea, as well as the great majority of people in both North and South Korea. This should make us all nervous because it means that different people mean different things when they talk about reunification. We need to think carefully about what we mean when we offer our own support for reunification or, said differently, we need to stop thinking about reunification as unambiguously good and start thinking about it as a contested process. The obvious point is that a sound reunification process will greatly increase the likelihood of a desirable reunification outcome. One of our tasks then is to support Korean efforts to advance a reunification process that will be truly responsive to the needs of the Korean people. | more…