Sunday April 20th, 2014, 7:39 pm (EDT)

John Bellamy Foster

Education and the Structural Crisis of Capital

The U.S. Case

Today’s conservative movement for the reform of public education in the United States, and in much of the world, is based on the prevailing view that public education is in a state of emergency and in need of restructuring due to its own internal failures. In contrast, I shall argue that the decay of public education is mainly a product of externally imposed contradictions that are inherent to schooling in capitalist society, heightened in our time by conditions of economic stagnation in the mature capitalist economies, and by the effects of the conservative reform movement itself. The corporate-driven onslaught on students, teachers, and public schools—symbolized in the United States by George W. Bush’s No Child Left Behind (NCLB) legislation—is to be explained not so much by the failure of the schools themselves, but by the growing failures of the capitalist system, which now sees the privatization of public education as central to addressing its larger malaise.… | more |

The Internationalization of Monopoly Capital

In a 1997 article entitled “More (or Less) on Globalization,” Paul Sweezy referred to “the three most important underlying trends in the recent history of capitalism, the period beginning with the recession of 1974-75: (1) the slowing down of the overall rate of growth; (2) the worldwide proliferation of monopolistic (or oligopolistic) multinational corporations; and (3) what may be called the financialization of the capital accumulation process.”… The first and third of these three trends—economic stagnation in the rich economies and the financialization of accumulation—have been the subjects of widespread discussion since the onset of severe financial crisis in 2007-09. Yet the second underlying trend, which might be called the “internationalization of monopoly capital,” has received much less attention.… the dominant, neoliberal discourse—one that has also penetrated the left—assumes that the tendency toward monopoly has been vanquished… [In contrast,] we suggest that renewed international competition evident since the 1970s was much more limited in range than often supposed… In short, we are confronted by a system of international oligopoly.… | more |

On the Laws of Capitalism

In February 2011, while I was drafting what was to become “Monopoly and Competition in Twenty-First Century Capitalism,” written with Robert W. McChesney and R. Jamil Jonna (Monthly Review, April 2011), I decided to take a look at Paul Sweezy’s copy of the original 1942 edition of Joseph Schumpeter’s Capitalism, Socialism, and Democracy, which I had in my possession. In doing so, I came across a folded, two-page document, “The Laws of Capitalism,” tucked into the pages. It was written in ink in Sweezy’s very compact handwriting. In the upper-right-hand corner, Sweezy had jotted (clearly much later) in pencil: “(A debate with J.A.S. before the Harvard Graduate Students’ Economics Club, Littauer Center, probably 1946 or 1947.)” The document consisted of a detailed outline, in full sentences, of a contribution to a debate. I immediately realized that this was Sweezy’s opening talk in the now legendary Sweezy-Schumpeter debate. Until that moment, I, along with everybody else, assumed that no detailed records of the actual talks had survived… | more |

Monopoly and Competition in Twenty-First Century Capitalism

A striking paradox animates political economy in our times. On the one hand, mainstream economics and much of left economics discuss our era as one of intense and increased competition among businesses, now on a global scale. It is a matter so self-evident as no longer to require empirical verification or scholarly examination. On the other hand, wherever one looks, it seems that nearly every industry is concentrated into fewer and fewer hands. Formerly competitive sectors like retail are now the province of enormous monopolistic chains, massive economic fortunes are being assembled into the hands of a few mega-billionaires sitting atop vast empires, and the new firms and industries spawned by the digital revolution have quickly gravitated to monopoly status. In short, monopoly power is ascendant as never before.… | more |

What Every Environmentalist Needs To Know about Capitalism

What Every Environmentalist Needs To Know about Capitalism

There is a growing consensus that the planet is heading toward environmental catastrophe: climate change, ocean acidification, ozone depletion, global freshwater use, loss of biodiversity, and chemical pollution all threaten our future unless we act. What is less clear is how humanity should respond. The contemporary environmental movement is the site of many competing plans and prescriptions, and composed of a diverse set of actors, from militant activists to corporate chief executives.… | more |

The Internet’s Unholy Marriage to Capitalism

The United States and the world are now a good two decades into the Internet revolution, or what was once called the information age. The past generation has seen a blizzard of mind-boggling developments in communication, ranging from the World Wide Web and broadband, to ubiquitous cell phones that are quickly becoming high-powered wireless computers in their own right.… The full impact of the Internet revolution will only become apparent in the future, as more technological change is on the horizon that can barely be imagined and hardly anticipated. But enough time has transpired, and institutions and practices have been developed, that an assessment of the digital era is possible, as well as a sense of its likely trajectory into the future.… | more |

Capitalism and Degrowth: An Impossibility Theorem

[A]lmost four decades after the Club of Rome raised the issue of “the limits to growth,” the economic growth idol of modern society is once again facing a formidable challenge. What is known as “degrowth economics,” associated with the work of Serge Latouche in particular, emerged as a major European intellectual movement in 2008 with the historic conference in Paris on “Economic De-Growth for Ecological Sustainability and Social Equity,” and has since inspired a revival of radical Green thought, as epitomized by the 2010 “Degrowth Declaration” in Barcelona.… Ironically, the meteoric rise of degrowth (décroissance in French) as a concept has coincided over the last three years with the reappearance of economic crisis and stagnation on a scale not seen since the 1930s. The degrowth concept therefore forces us to confront the questions: Is degrowth feasible in a capitalist grow-or-die society—and if not, what does this say about the transition to a new society?… | more |

Capitalism and the Curse of Energy Efficiency

The Return of the Jevons Paradox

The curse of energy efficiency, better known as the Jevons Paradox—the idea that increased energy (and material-resource) efficiency leads not to conservation but increased use—was first raised by William Stanley Jevons in the nineteenth century. Although forgotten for most of the twentieth century, the Jevons Paradox has been rediscovered in recent decades and stands squarely at the center of today’s environmental dispute… | more |

The Financialization of Accumulation

In 1997, in his last published article, Paul Sweezy referred to “the financialization of the capital accumulation process” as one of the three main economic tendencies at the turn of the century (the other two were the growth of monopoly power and stagnation). Those familiar with economic theory will realize that the phrase was meant to be paradoxical. All traditions of economics, to varying degrees, have sought to separate out analytically the role of finance from the “real economy.” Accumulation is conceived as real capital formation, which increases overall economic output, as opposed to the appreciation of financial assets, which increases wealth claims but not output. In highlighting the financialization of accumulation, Sweezy was therefore pointing to what can be regarded as “the enigma of capital” in our time… | more |

The Great Financial Crisis—Three Years On

The Great Financial Crisis began in the summer of 2007 and three years later, despite a putative “recovery,” it is still having profound effects in the United States, Europe, and in much of the world. Austerity is being forced on working people in many countries. Matters are especially difficult in Greece, a country that is being compelled by the demands of bankers, including the International Monetary Fund, to squeeze its workers in return for loans from abroad to help pay down government debts. Official unemployment in the United States is still around 10 percent, and real unemployment is much higher. An unprecedented 44 percent of the officially unemployed have been without work for over six months. A record number of people are receiving government food assistance as well as meals and groceries from charities. Many U.S. states and cities, facing large shortfalls in their budgets due to falling tax revenues, are cutting jobs and reducing funding for schools and social programs… | more |

Foreword to the Summer Issue

In the eyes of much of the world, the year 1989 has come to stand for the fall of the Berlin Wall, the demise of Soviet-type societies, and the defeat of twentieth-century socialism. However, 1989 for many others, particularly in Spanish-speaking countries, is also associated with the beginning of the Latin American revolt against neoliberal shock therapy and the emergence in the years that followed of a “socialism for the 21st century.” This revolutionary turning point in Latin American (and world) history is known as the Caracazo or Sacudón (heavy riot), which erupted in Caracas, Venezuela on February 27, 1989, and quickly became “by far the most massive and severely repressed riot in the history of Latin America.”… | more |

Capitalism, the Absurd System: A View from the United States

Perhaps nothing points so clearly to the alienated nature of politics in the present day United States as the fact that capitalism, the economic system that drives the society, is effectively off-limits to critical review or discussion. To the extent that capitalism is mentioned by politicians or pundits, it is regarded in hushed tones of reverence for the genius of the market, its unquestioned efficiency, and its providential authority. One might quibble with a corrupt and greedy CEO or a regrettable loss of jobs, but the superiority and necessity of capitalism—or, more likely, its euphemism, the so-called “free market system”—is simply beyond debate or even consideration. There are, of course, those who believe that the system needs more regulation and that there is room for all sorts of fine-tuning. Nevertheless, there is no questioning of the basics.… | more |

The Financial Power Elite

Has the power of financial interests in U.S. society increased? Has Wall Street’s growing clout affected the U.S. state itself? How is this connected to the present crisis? We will argue that the financialization of U.S. capitalism over the last four decades has been accompanied by a dramatic and probably long-lasting shift in the location of the capitalist class, a growing proportion of which now derives its wealth from finance as opposed to production. This growing dominance of finance can be seen today in the inner corridors of state power.… | more |

Listen Keynesians, It’s the System! Response to Palley

In an article entitled “Listen, Keynesians!,” published in January 1983 in Monthly Review, Harry Magdoff and Paul Sweezy argued that the radical break that John Maynard Keynes’s General Theory of Employment, Interest and Money (1936) represented for orthodox economics lay in the fact that “For the first time the possibility was frankly faced, indeed placed at the very center of the analysis, that breakdowns of the accumulation process, the heart and soul of economic growth, might be built into the system and non-self correcting.”…In November 1982, only two months before the publication of “Listen, Keynesians!,” Magdoff and Sweezy had pointed out in “Financial Instability: Where Will it All End?” that the question as to whether a major financial crisis (on the scale of 1929) could propel the economy into a deep downturn, approaching the scale of the Great Depression of the 1930s, was still an open one. They were responding here to Hyman Minsky, a proud Keynesian (albeit with socialist leanings), “whose views,” they claimed, were “especially worthy of attention precisely because over the years he has been the American economist who has done more than any other to focus on the crucially important destabilizing role of the financial system in advanced capitalist countries.”… | more |

What Every Environmentalist Needs to Know About Capitalism

For those concerned with the fate of the earth, the time has come to face facts: not simply the dire reality of climate change but also the pressing need for social-system change. The failure to arrive at a world climate agreement in Copenhagen in December 2009 was not simply an abdication of world leadership, as is often suggested, but had deeper roots in the inability of the capitalist system to address the accelerating threat to life on the planet. Knowledge of the nature and limits of capitalism, and the means of transcending it, has therefore become a matter of survival. In the words of Fidel Castro in December 2009: “Until very recently, the discussion [on the future of world society] revolved around the kind of society we would have. Today, the discussion centers on whether human society will survive.”… | more |

The Age of Monopoly-Finance Capital

Three years ago, in December 2006, I wrote an article for Monthly Review entitled “Monopoly-Finance Capital.” The occasion was the anniversary of Paul Baran and Paul Sweezy’s Monopoly Capital, published four decades earlier in 1966.…The article…[discussed] “the dual reality” of stagnant growth (or stagnation) and financialization, characterizing the advanced economies in this phase of capitalism. I concluded that this pointed to two possibilities: (1) a major financial and economic crisis in the form of “global debt meltdown and debt-deflation,” and (2) a prolongation of the symbiotic stagnation-financialization relationship of monopoly-finance capital. In fact, what we have experienced in the last two years, I would argue, is each of these sequentially: the worst financial-economic crisis since the 1930s, and then the system endeavoring to right itself by returning to financialization as its normal means of countering stagnation. It is thus doubly clear today that we are in a new phase of capitalism. In what follows, I shall attempt to outline the logic of this argument, as it evolved out of the work of Baran, Sweezy, and Harry Magdoff in particular, and how it relates to our present economic and social predicament.… | more |

István Mészáros, Pathfinder of Socialism

If I were asked to sum up the significance of István Mészáros for our time, I would have to follow President Hugo Chávez of Venezuela in referring to him as the “Pathfinder of Socialism.” His work…provides a strategic vision of the building of socialism, the absence of which, for many decades, constituted one of the principal weaknesses of the anti-capitalist movement, worldwide.… | more |

Why Ecological Revolution?

It is now universally recognized within science that humanity is confronting the prospect—if we do not soon change course—of a planetary ecological collapse. Not only is the global ecological crisis becoming more and more severe, with the time in which to address it fast running out, but the dominant environmental strategies are also forms of denial, demonstrably doomed to fail, judging by their own limited objectives. This tragic failure, I will argue, can be attributed to the refusal of the powers that be to address the roots of the ecological problem in capitalist production and the resulting necessity of ecological and social revolution.… | more |

The Vulnerable Planet Fifteen Years Later

The original intent of The Vulnerable Planet,when it was first published fifteen years ago, was to provide a brief historical materialist analysis of the development of the global ecological crisis, beginning with the early civilizations and leading up to the monopoly capitalist society of the late twentieth century. Looking back now at the book as it was originally written—and at the second edition published five years later, incorporating a few minor changes plus an afterword—I see no major point on which the analysis has proven to be substantially wrong or where it needs significant revision. Nevertheless, the last decade and a half has witnessed an acceleration of history with respect to the human relation to the environment, adding force to the concerns that the book expressed.… | more |

The Paradox of Wealth: Capitalism and Ecological Destruction

Today orthodox economics is reputedly being harnessed to an entirely new end: saving the planet from the ecological destruction wrought by capitalist expansion. It promises to accomplish this through the further expansion of capitalism itself, cleared of its excesses and excrescences. A growing army of self-styled “sustainable developers” argues that there is no contradiction between the unlimited accumulation of capital — the credo of economic liberalism from Adam Smith to the present — and the preservation of the earth. The system can continue to expand by creating a new “sustainable capitalism,” bringing the efficiency of the market to bear on nature and its reproduction. In reality, these visions amount to little more than a renewed strategy for profiting on planetary destruction.… | more |