There are three dimensions to the current, unprecedented global crisis of capitalism: economic, ecological, and political.
Let us look first at the economic dimension, which will be our main concern in this article. Capitalism is facing a major realization crisis—an inability to sell the output produced, i.e., to realize, in the form of profits, the surplus value extracted from workers’ labor. Neoliberalism can be viewed as an attempt initially to solve the stagflation crisis of the 1970s by abandoning the “Keynesian consensus” of the “golden age” of capitalism (relatively high social welfare spending, strong unions, and labor-management cooperation), via an attack on labor. It succeeded, in that profit rates eventually recovered in the major capitalist economies by the 1990s | more…
When Marilyn Buck died last August 3, she had lived outside prison, on parole, for only twenty days. At age sixty-two, she had spent her last twenty-five years in various maximum security prisons. Before that, she lived years underground, supporting and taking part in actions with the Black Panther Party and later, the Black Liberation Army. Marilyn was a white woman who carried a great deal of pain, most of which came from her unflinching acknowledgement of the centuries of untold inequities suffered by African Americans and other people of color at the hands of “freedom-loving” white America | more…
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…
During the period stretching from the 1970s through the 1990s, Monthly Review, under the editorship of Harry Magdoff and Paul Sweezy, stood apart in its analysis of the tendency to economic stagnation in advanced capitalism and its view that the economic slowdown beginning in the 1970s was a manifestation of this secular tendency. The financial explosion that also emerged in these years was seen as an attempt by the system to stave off stagnation by means of credit-debt expansion, but at the cost of increasing financial fragility | more…
Over the past generation, the U.S. economy as well as most of the rest of the global economy have been dominated by the idea that free market capitalism produces dynamic growth, financial stability, and as close as we are likely to come to a fair society. Supporters of this pro-market framework hold that government interventions to encourage growth, stability, or even fairness will almost always produce more harm than good. This mode of thinking has been the intellectual foundation for the era of financial deregulation in the United States—the dismantling of the Glass-Steagall regulatory system that was built amid the rubble of the 1929 stock market crash and ensuing 1930s Depression. The Clinton administration provided the final nails in the coffin of financial regulation with the passage of the Financial Services Modernization Act in 1999 | more…
At the end of the twentieth century, while financial economists satisfied their intellectual pretensions to useful knowledge by conjuring up visions of a world peopled with materialistic consumer-investors optimizing rationally in accordance with their willingness to hazard their wealth, the propertied classes themselves were succumbing to new delusions fostered by the financial markets. The reasoned response of propertied individuals to their experience of the world of speculative finance has created a new political culture with important consequences for the political economy of capitalism | more…
Growing up on a Midwestern farm while Marx worked on the final draft of Capital, Vol. I, was a boy who, as a man, would have a very different take on the relationship of workers to the products of their labor. Thorstein Veblen would become famous for what he wrote about the fetishized commodities of consumers.…For Veblen, all the nonessentials that we purchase as consumers reflect standards of respectability established by the upper class. The “motive that lies at the root of ownership is emulation,” he wrote, not just of others but of wealthy and powerful others. Under capitalism, one’s property “becomes the conventional basis of esteem,” by which Veblen meant both the high regard of others and self-esteem.…Over the past few decades, however, standards for personal appearance have been transformed in ways that seem to turn Veblen’s conspicuous consumption idea inside out | more…
Marge Piercy (www.margepiercy.com) is the author of seventeen novels, most recently Sex Wars; seventeen volumes of poetry, most recently The Crooked Inheritance; a memoir, Sleeping with Cats; and two nonfiction books. Knopf will publish her second volume of selected poems, The Hunger Moon: Selected Poems, 1980-2010, next March | more…
Michael Perelman, The Confiscation of American Prosperity. From Right-Wing Extremism and Economic Ideology to the Next Great Depression (New York: Palgrave Macmillan, 2007), 239 pages, $30.00 hardcover.
Yves Smith, Econned: How Unenlightened Self Interest Undermined Democracy and Corrupted Capitalism (New York: Palgrave Macmillan, 2010), 362 pages, $30 hardcover.
Some forty years ago, the American business empire viewed itself as under siege as a result of government interventions threatening its freedom of action, demands for annual wage increases in the face of declining corporate profitability, import penetration of its home markets, as well as by loss of global hegemony symbolized by defeat in Vietnam. The empire struck back. A conglomerate of right-wing forces proceeded to declare war on the social reforms and institutions that had taken shape since the 1930s under the wing of an expanding federal government | more…
In this provocative study, economist Ernesto Screpanti argues that imperialism—far from disappearing or mutating into a benign “globalization”—has in fact entered a new phase, which he terms “global imperialism.” This is a phase defined by multinational firms cut loose from the nation-state framework and free to chase profits over the entire surface of the globe. No longer dependent on nation-states for building a political consensus that accommodates capital accumulation, these firms seek to bend governments to their will and destroy barriers to the free movement of capital. And while military force continues to play an important role in imperial strategy, it is the discipline of the global market that keeps workers in check by pitting them against each other no matter what their national origin. | more…
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…
As the June-July 2010 World Cup draws the world’s attention to South Africa, the country’s poor and working-class people will continue protesting, at what is now among the highest rates per person in the world. Since 2005, the police have conservatively measured an annual average of more than eight thousand “Gatherings Act” incidents (public demonstrations legally defined as involving upwards of fifteen demonstrators) by an angry urban populace….This general urban uprising has included resistance to the commodification of life—e.g., commercialization of municipal services—and to rising poverty and inequality in the country’s slums. | more…
