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…
The medieval kingdom that is twentieth century Oaxaca has imprisoned hundreds of citizens arbitrarily and unjustly. Dozens more have disappeared, victims of paramilitary escuadrones de muerte (death squads). Thousands have been beaten, tortured, and robbed, lost their jobs, or have been forced into exile because they objected to government wrongdoing.…The King’s minions who control Oaxaca’s political and economic systems are a small minority of the state’s population, “but they are a powerful minority. There is no transparency. The governor arranges, controls, dispenses as he wishes—he is the head cacique, he has the legislature and the judicial system in his pocket.” Change means overthrowing the governor and the system of government that he manifests and represents. | more…
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…
Kim Phillips-Fein, Invisible Hands: The Making of the Conservative Movement from the New Deal to Reagan (New York: W.W. Norton, 2009), 356 pages, $26.95, hardcover, $16.95, paperback.
Kim Phillips-Fein has provided us with a very fine account of how we got where we are—in a stranglehold of big business conservatism that has by no means been broken by the liberal electoral victory of 2008. She has not only absorbed a considerable amount of secondary literature, but has also combed through the archives, combining her impressive research and insights with a well-paced narrative populated with a variety of interesting personalities—all quite well-to-do, all white, almost all male, and yet a very diverse and interesting lot. | more…
Aside from Keynes, no economist seems to have benefitted so much from the financial crisis of 2007-08 as the late Hyman Minsky. The collapse of the sub-prime market in August 2007 has been widely labeled a “Minsky moment,” and many view the subsequent implosion of the financial system and deep recession as confirming Minsky’s “financial instability hypothesis” regarding economic crisis in capitalist economies.…Recognition of Minsky’s intellectual contribution is welcome and deserved. Minsky was a deeply insightful theorist about the proclivity of capitalist economies to experience financially driven booms and busts, and the crisis has confirmed many of his insights. That said, the current article argues that his theory only provides a partial and incomplete account of the current crisis. | more…
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…
The recession that began in the second quarter of 1981 (the second in two years) dragged on into 1982. Most observers look for some recovery in the second half of the year, but hardly anyone expects it to be vigorous. Meanwhile, all the typical signs of stagnation continue to be in evidence. The official unemployment rate which stood at 7.6 percent in 1981 rose to 9.5 percent by the middle of 1982, and the manufacturing capacity utilization rate fell from 79.9 percent to 69.9 percent in the same period.… The counterpart to this stagnation in the realm of production and employment was a continuing ballooning of the financial superstructure of the economy which, as the essays in this volume have been at pains to emphasize, has been one of the most spectacular features of capitalist development during the post-Second World War period. | more…
