Subjects Archives: Financialization

As the world looks to full stabilisation and a rebound from the crisis due to the efforts of governments, clearly, it is finance rather than the real economy that has benefited more from those initiatives.  In fact, the turnaround in the financial sector, which was responsible for the crisis in the first instance, has been […]

President Obama will go to Asia and has promised to say something about the exchange rate between the Chinese yuan and the U.S. dollar.  It would be good if some enterprising journalist asked him why the United States is worried about the Chinese dumping their dollars, and why U.S. Treasury Secretary Tim Geithner recently said […]

  Amandla: Early in 2009 you published your book The Great Financial Crisis (coauthored with Fred Magdoff).  Could you reflect now almost a year later on what made the current recession more severe than previous recessions?  Why has it been compared to the Great Depression and what type of recovery are we likely to see? […]

In the months following the outbreak of the financial crisis in late 2007, the general climate among economists and economic commentators was kind of a stupor.  Mainstream economists and conservative politicians — who had clamored for decades for the government to keep its hands off the economy, for balanced budgets, and for taxes as low […]

Mike Whitney: In your new book, The ABCs of the Economic Crisis: What Working People Need to Know, you allude to right-wing think tanks, like the Heritage Foundation and the American Enterprise Institute, which promote a “free market” ideology.  How successful have these organizations been in shaping public opinion about capitalism?  Do you think that […]

Personal income decreased $0.1 billion, or less than 0.1 percent, and disposable personal income (DPI) decreased $0.2 billion, or less than 0.1 percent, in September, according to the Bureau of Economic Analysis.  Personal consumption expenditures (PCE) decreased $47.2 billion, or 0.5 percent.  In August, personal income increased $17.4 billion, or 0.1 percent, DPI increased $14.1 […]

  Twenty years ago, 60,000 workers from New York City to Maine rallied against healthcare cost-shifting at the telecom giant then known as NYNEX (since “rebranded” as Verizon). NYNEX was a very profitable, multinational company seeking to capitalize on a demoralizing decade of lost strikes, contract givebacks and widespread unionbusting.  At a time when many […]

It is spell-binding to see how the U.S. establishment can inflate the threat of a target, no matter how tiny, remote, and (most often) non-existent that threat may be, and pretend that the real threat posed by its own behavior and policies is somehow defensive and related to that wondrously elastic thing called “national security.” […]

There is no doubt that the financial sector in India was generally much less affected by the global financial crisis of the past year than in many other developed and developing countries.  This is not to say that Indian finance was unaffected: there were wild swings in external capital flows (particularly portfolio flows) as well […]

  The momentous decision to reject any public option by the Senate Finance Committee today underscores how completely private insurance companies dominate Congressional activity.  The author of the bill for the committee, Liz Fowler, is herself a former VP of WellPoint, the nation’s largest private health insurer.  This highlights the importance of the single payer, […]

  Anastasia Pinto is executive director of the Center for Organizing, Research and Education in India.

  The Obama administration’s decision to scrap the Bush era anti-missile defense plans in Eastern Europe was actually expected.  Nonetheless, this was a very pragmatic move on the part of Washington.  However, the immediate talk and plans for a different American-led “stronger, smarter, and swifter” anti-missile strategy was not helpful.  I will reserve judgment on […]

Exactly one year ago, the Wall Street investment bank Lehmann Brothers was allowed to go bust, in a move that is generally seen to have brought on the global financial crisis.  Shock waves hit the financial markets; stock markets collapsed in waves of contagion across the world; credit seized up in most developed and many […]

BMR:What is the likely impact of the present financial crisis on geopolitics, especially if the crisis is considered in the context of the energy crisis including the peak oil issue, the food crisis, The Great Hunger, the environmental crisis, and the declining dollar?  Will the world experience war(s) as an effort to survive?  Will monopoly-finance […]

  The Media, the Left, and Power Tanner Mirrlees: Why do you think it is important for progressives to understand the media and participate in media democracy struggles? Robert McChesney: The media is one of the key areas in society where power is exercised, reinforced, and contested.  It is hard to imagine a successful left […]

It is now a commonplace that we are experiencing the greatest economic crisis since the Great Depression of the 1930s.  The downward trajectory on a global level is similar to the 1930s, though in the United States — the epicenter of the crisis — there are indications that the rate of decline may be slowing.1  […]

  Abstract In a seminal paper on Marxian business cycle theory Goodwin (1967) presented a model, which assumed that a higher wage share leads to lower investment and thus a general economic slowdown.  In contrast Kalecki (1971) was arguing that a higher wage share would have an expansionary effect because the consumption propensity out of […]

The global recession is still very much with us, despite the recent attempts by media and some policy makers especially in the North to dismiss it as almost over, and to find some indications of the “green shoots” of recovery in almost each item of economic and financial news.  But even as the downturn continues […]

  Chicago What are the banks doing with the bailout billions taxpayers gave them, to help us on the road to economic recovery? In the case of Wells Fargo and the Quad City Die Casting (QCDC) factory in Moline, Illinois, nothing good.  In fact the bank is a huge roadblock to recovery.  That’s why on […]

Jeff Madrick.  The Case for Big Government.   Princeton University Press, 2009.  205 pp.  ISBN 978-0-691-12331-8 (Hardcover). In The Political Economy of Growth, Paul Baran argued that the increased role of the US government in post-New Deal America did not solve the contradictions of monopoly capitalism but merely “removed the onus for the malfunctioning of […]