Saturday December 20th, 2014, 12:52 am (EST)

Political Economy

Stagnation and Financialization

The Nature of the Contradiction

More than six years after the beginning of the Great Recession in the United States, and nearly five years since it was officially declared over in this country, the core economies of the capitalist world system remain crisis-ridden. The jobs lost in the downturn in the United States have not yet been fully recovered and the economy remains sluggish. In Europe the crisis has hardly abated at all and a number of the peripheral European Union countries are in what can only be called a depression—especially Greece, Spain, and Portugal. The last member of the triad of advanced capitalist centers, Japan, has gone through what have been called two “lost decades” of slow growth and deflation and is attempting once again to jump-start the economy through a combination of devaluation of the yen and deficit spending.… | more |

Australian Coal: Should It Be Left in the Ground?

Many Australians view themselves as living in a “lucky country” because it has an abundance of mineral resources. James Goodman and David Worth, however, maintain that the mining boom has been a “curse” in disguise. It has sharpened socioeconomic and community divisions, contributed to political conflict, and resulted in “ecological mal-development” with serious environmental consequences. This applies to coal in that it not only contributes to air and water pollution, but is also a major source of carbon dioxide emissions and thus a major contributor to climate change.… | more |

Crisis, Recovery, and the Transitional Economy

The Struggle for Cooperative Ownership in Greensboro, North Carolina

There is much to ponder as the patchwork of American society continues to unravel from the effects of a new type of capitalist depression.… [T]he wealthiest 1% of Americans earned more than 19 percent of the country’s household income in 2012, their biggest share since 1928, a year before the Wall Street stock-market collapse.… [For an alternative to this] we might look to Occupy’s brief history beyond Wall Street—that is, in the cities and towns where its initial energy was so keenly felt, and where it is likely that many of us have since embarked on new projects that carry the potential of a transitional and transformational politics.… Such is the case in Greensboro, North Carolina, a mid-size Southern city known for its struggles for civil rights and socio-economic justice. It is here where the Occupy movement played a small but seminal role in what has become a fierce, grass-roots struggle for cooperative ownership in the African-American community.… | more |

The Longer View

The Longer View

Essays Toward a Critique of Political Economy

These essays by the author of The Political Economy of Growth and co-author of Monopoly Capital cover the working range of a strong and original mind. They are as diverse as his well-known discussion of Marxism and psychoanalysis, and his expert handling of the politics and economics of development.… | more |

Notes from the Editors, April 2014

Notes from the Editors, April 2014

» Notes from the Editors

The insidious nature of the economy, state, and cultural apparatus of global monopoly-finance capital is difficult to perceive—if only because it is to be found everywhere we look. Focusing on a specific case can therefore help us see what might otherwise elude us. A striking instance of this principle is to be found in the recent takeover of Chrysler by Fiat—linking a century-old Italian auto dynasty, the Great Financial Crisis of 2007–2009, the U.S. corporate bailout, the 2014 Superbowl, and the American folk music tradition.… | more |

Notes from the Editors, March 2014

Notes from the Editors, March 2014

» Notes from the Editors

This issue of Monthly Review is mainly devoted to two commemorations: for Paul Alexander Baran, who died fifty years ago this month; and for Hugo Rafael Chávez Friás, who died one year ago this month.… Paul A. Baran was the author of The Political Economy of Growth (1957) and, with Paul M. Sweezy, Monopoly Capital (1966). Baran’s work on the roots of underdevelopment focused on the way in which the imperialist world system robbed countries of their actual and potential economic surplus, chaining them to conditions of dependency.… Hugo Chávez, president of Venezuela from 1999 until his death in March 2013, provided the crucial inspiration for the Bolivarian Revolution in Venezuela. Chávez created a new vernacular of revolution linked historically to Latin America’s Bolivarian tradition (marked by Bolívar’s famous statement that “equality is the law of laws”).… | more |

The Baran–Sweezy Letters Project

The correspondence of Paul Baran and Paul Sweezy in the 1950s and early ‘60s is one of the great, unknown legacies of Marxian political economy in the United States. Over the past year and a half, I have been transcribing all of these letters with the goal of having the collection published by Monthly Review press, both as a hardcopy book of selected letters, as well as an unabridged e-book. In commemoration of my father, Paul A. Baran, on the fiftieth anniversary of his death on March 26, 1964, we decided to refer publicly for the first time to the Baran–Sweezy Letters Project and to publish a few important and representative letters.… | more |

Value and Crisis

Value and Crisis

Essays on Marxian Economics in Japan

Value and Crisis opens with a long and highly informative essay on the development of Marxian economics in Japan, and contains a number of the author’s important and original contributions to this stream of thought. Itoh discusses the major points of view on Marx’s theory of value, on theories of crisis, and on problems of Marx’s theory of market value. … | more |

Notes from the Editors, February 2014

Notes from the Editors, February 2014

» Notes from the Editors

A comparison of the present state of the natural sciences with that of the social (or human) sciences cannot but give rise to a disquieting sense of the relative poverty of the latter. Although natural scientists are raising the alarm with regard to the planetary environmental emergency and are demanding social solutions, social scientists have largely failed to take up the challenge. To be sure, there has been a vast upsurge in recent years of social-scientific discussions of climate change. But most of this work has remained confined within the narrow boundaries of mainstream social science, relying on such amorphous, dehistoricized concepts as human behavior, organizations, institutions, government, economic growth, industrialization, modernization, the market, energy efficiency, public opinion, and the like—variables that can be treated in purely technical, “non-normative” terms, divorced from historical context, social relations, and social agency.… Conspicuously missing from conventional social science is any serious consideration of the actual social system in which we live and which clearly constitutes the root of the problem: namely, capitalism. Also excluded are such fundamental issues as accumulation, class (including its gendered and racialized forms), the state, the cultural apparatus, imperialism, monopolistic corporations, economic stagnation, financialization, Marx’s concept of the metabolic rift—and indeed all the other major historical realities of our time.… | more |

Sharp Left Turn for the Media Reform Movement

Toward a Post-Capitalist Democracy

The contemporary media reform movement exploded into prominence in the United States in 2003 as a response to the effort by the Bush Federal Communications Commission (FCC) to weaken media ownership regulations.… The size and success of this popular uprising was…a testament to the power of activism to thwart the plans of the powerful in seemingly hopeless conditions.… The Obama campaign in 2007 and 2008 expressed interest in media reform and worked closely with members of the movement…. Except for Obama’s speech against the Iraq War invasion, it was arguably his communication platform that most distinguished him as a progressive in the 2008 presidential primaries.… One can debate whether this was an appropriate strategic shift at the time but there can be no debate that the strategy failed. The Obama administration abandoned its platform almost immediately, and repudiated the movement.… | more |

Saving Our Unions

Dare to Struggle, Dare to Win?

Any review of the recent ups and downs of U.S. labor must start in Michigan, long a bastion of blue-collar unionism rooted in car manufacturing. Fifteen months ago, this Midwestern industrial state became another notch in the belt of the National Right to Work Committee, joining the not-very-desirable company of Texas, Oklahoma, Alabama, and twenty other “open shop” states.… The emergence of sun-belt labor relations in the birthplace of the United Auto Workers (UAW) was shocking to some. But this political setback was preceded by high-profile defeats in neighboring states that began in 2005. First Indiana, followed by Wisconsin and Ohio, stripped public workers of their bargaining rights (although the Republican attack on government employees was later repelled by popular referendum in the Buckeye State). Then in early 2012, GOP legislators in Indiana passed a right-to-work law applicable to private industry.… | more |

Social Inequities and Exclusions in Kerala’s ‘Egalitarian’ Development

Social inequalities and exclusions can devastate people’s lives, especially when they are far from the centers of power and control. This wreckage can be seen in many different parts of their lives, but particularly in their health. The health of any given country’s population is primarily determined by politics, and public policies play a critical role. All over the world, countries with a history of egalitarian ideologies, and corresponding policies aimed at reducing social inequalities, have healthier populations. The Indian state of Kerala, which has a long-running radical political tradition and a history of social-reform movements in the early twentieth century, is acclaimed for its achievements in health and social-sector development, including low levels of mortality and fertility, and high levels of life expectancy and literacy—all despite its low-performing economy. Kerala has become a veritable mecca for other low-income nations in social development and health advancement.… | more |

Notes from the Editors, January 2014

Notes from the Editors, January 2014

» Notes from the Editors

On November 16, 2013, Paul Krugman published a piece on his New York Times blog entitled “Secular Stagnation, Coalmines, Bubbles, and Larry Summers,” consisting of an extended commentary on former Clinton Treasury Secretary and Obama economic advisor Lawrence Summers’s November 8 presentation to the IMF’s Economic Forum.… Krugman, in following up on Summers’s IMF speech, highlighted Alvin Hansen’s theory of secular stagnation in the 1930s to ‘50s.… [acknowledging that] long-term economic stagnation…was now “the norm” for the economy, not the exception.… Writing in a fashion that could have come straight out of Monthly Review at any point in the last forty years, he declared: “We now know that the economic expansion of 2003–2007 was driven by a bubble. You can say the same about the later part of the 90s expansion; and you can in fact say the same about the later years of the Reagan expansion, which was driven at that point by runaway thrift institutions and a large bubble in commercial real estate.” But in trying to understand how stagnation itself came about and created this whole irrational set of economic conditions, Krugman…failed to draw attention to the much more important problem of investment under conditions of overcapacity and mature industry, as well as the whole question of monopolistic/oligopolistic capitalism—all of which were taken seriously at some level by Hansen, and were developed in a far more radical way by socialist thinkers such as Michał Kalecki, Joseph Steindl, Paul Baran, and Paul Sweezy.… | more |

The Plight of the U.S. Working Class

Modern capitalism, sociologist Max Weber famously observed early in the twentieth century, is based on “the rational capitalistic organization of (formally) free labor.” But the “rationality” of the system in this sphere, as Weber was to acknowledge elsewhere, was so restrictive as to be in reality “irrational.” Despite its formal freedom, labor under capitalism was substantively unfree.… This was in accordance with the argument advanced in Karl Marx’s Capital. Since the vast majority of individuals in the capitalist system are divorced from the means of production they have no other way to survive but to sell their labor power to those who own these means, that is, the capitalist class.… The result is a strong tendency to the polarization of income and wealth in society. The more the social productivity of labor grows the more it serves to promote the wealth and power of private capital, while at the same time increasing the relative poverty and economic dependency of the workers.… | more |

The Labor Share Question in China

In the past two decades, China’s economic growth has been increasingly dependent on investment. To maintain the growth of investment, China must sustain a fairly high rate of profit, and the fall in labor’s share has been seen as a crucial factor to sustain profitability.… Although the mainstream economists have widely admitted there is a downward trend for labor’s share in China, they explain this trend with a story that has nothing to do with class struggle. In this story, the decline of labor’s share is caused by sectoral changes, mainly the decrease of agriculture and the increase of industry and services as a percent of GDP in the reform era…. [But] Does the decline of labor’s share result from sectoral changes?… [In fact] the decline of labor’s share resulted from the loss in the power of the working class during the transition to capitalism. Sectoral changes have disguised the class conflicts in this historical process.… | more |

European Labor

Political and Ideological Crisis in an Increasingly More Authoritarian European Union

Acute economic and political drama mark contemporary Europe. The terrible trauma of the financial crisis has been followed by a sovereign-debt disaster. In the countries most deeply affected, the people have been faced with massive attacks on public services, wages, pensions, trade unions, and social rights. The draconian austerity policies have pushed the situation in those countries from bad to worse, leading them into a deep depression.… Confronted with these multiple crises, the traditional labor movements appear perplexed and partly paralyzed. Social democracy is in political and ideological disarray and confusion, reflecting a deep crisis in these movements. On the one hand, social democrats have played a leading role in fierce attacks on trade unions and the welfare state in countries where they have been in power. On the other hand, other social democrats adopt statements and support appeals that sharply condemn the political course now followed by the European Union.… | more |

"This book shows what it takes to defend democracy, workers rights, and social justice unionism."
—Dolores Huerta

Save Our Unions

Dispatches from A Movement in Distress

Save Our Unions: Dispatches From A Movement in Distress brings together recent essays and reporting by labor journalist Steve Early. The author illuminates the challenges facing U.S. workers, whether they’re trying to democratize their union, win a strike, defend past contract gains, or bargain with management for the first time.… | more |

Marx and the Rift in the Universal Metabolism of Nature

The rediscovery over the last decade and a half of Marx’s theory of metabolic rift has come to be seen by many on the left as offering a powerful critique of the relation between nature and contemporary capitalist society. The result has been the development of a more unified ecological world view transcending the divisions between natural and social science, and allowing us to perceive the concrete ways in which the contradictions of capital accumulation are generating ecological crises and catastrophes.… Yet, this recovery of Marx’s ecological argument has given rise to further questions and criticisms.… | more |

"Indispensable... To say that I highly recommend it to all of those concerned with these issues would be an understatement."
—John Bellamy Foster

Three Essays on Marx’s Value Theory

In this slim, insightful volume, noted economist Samir Amin returns to the core of Marxian economic thought: Marx’s theory of value. Amin defends Marx’s theory of value against its critics and also tackles some of its trickier aspects. He examines the relationship between Marx’s abstract concepts—such as “socially necessary labor time”—and how they are manifested in the capitalist marketplace as prices, wages, rents, and so on. He also explains how variations in price are affected by the development of “monopoly-capitalism,” the abandonment of the gold standard, and the deepening of capitalism as a global system.… | more |

The Implosion of Contemporary Capitalism

The Implosion of Contemporary Capitalism

Renowned political economist Samir Amin, engaged in a unique lifelong effort both to narrate and affect the human condition on a global scale, brings his analysis up to the present—the world of 2013. The key events of our times—financial crisis, the emerging nations, globalization, financialization, political Islam, Euro–zone implosion—are related in a coherent, historically based, account. … | more |

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