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Secular Stagnation

Mainstream Versus Marxian Traditions

Paul M. Sweezy wrote in 1982, “it is my impression that the economics profession has not yet begun to resume the debate over stagnation which was so abruptly interrupted by the outbreak of the Second World War.” Thirty years later things appear to have changed. Former U.S. Secretary of Treasury Larry Summers shocked economists with his remarks regarding “stagnation” at the IMF Research Conference in November 2013, and he later published these ideas in the Financial Times and Business Economics.… Summers’s remarks and articles were followed by an explosion of debate concerning “secular stagnation” [which] can be defined as the tendency to long-term (or secular) stagnation in the private accumulation process of the capitalist economy, manifested in rising unemployment and excess capacity and a slowdown in overall economic growth…. Responses to Summers have been all over the map, reflecting both the fact that the capitalist economy has been slowing down, and the role in denying it by many of those seeking to legitimate the system.

It’s the System Stupid

Structural Crises and the Need for Alternatives to Capitalism

On Thursday, December 13, 2012, The Guardian announced Queen Elizabeth finally received an answer to her question—”Did nobody see this coming?”—about the 2008 financial crisis.… Perhaps she could have also asked three more questions: Does nobody see the suffering and socioeconomic injustices of oligopolistic-finance capitalism? Does no one see that the problems are structural and systemic? And is there no alternative to a system that generates continuous “quadruple crises”—the socioeconomic, political, environmental, and personal/psychological?… The conventional wisdom is “There Is No Alternative,” or TINA. For this reason most Americans simply acquiesce to capitalistic social relations and, like Sisyphus, are resigned to performing eternal tasks while enduring the “endless” quadruple crises generated by a pathological system.… The most extraordinary aspect concerning the absence of an alternative is that it is fallacious. The capitalistic system itself must be transformed. To put it into a slogan: Capitalism Is No Alternative, or CINA.