Subjects Archives: Financialization

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 […]

One of the central paradoxes in economic theory relates to the hostility that financial interests in a modern capitalist economy systematically display towards any policy of enlarged State expenditure financed by borrowing, even though such expenditure increases capitalists’ profits and wealth. Let us suppose that the government undertakes a larger borrowing-financed public expenditure programme, and […]

On May 16th, some 60 percent of India’s 714 million-strong electorate delivered a definitive victory to the Congress-led United Progressive Alliance (UPA), giving it a commanding 262 seats in India’s 543-member parliament.  The UPA’s principal opponent, the National Democratic Alliance (NDA), led by the Hindu-nationalist Bharatiya Janata Party (BJP), took a severe beating, dropping down […]

In the recently concluded 2009 general elections to the lower house of the parliament, the Social Democratic Left (SDL henceforth) In India, composed of the Communist Party of India-Marxist (CPM), the Communist Party of India (CPI), and a bunch of smaller left-wing parties, has witnessed the severest electoral drubbing in a long time.  This year, […]

  The past decade has witnessed a renewed interest in social policies, and some governments have increased social spending to soften the impacts of economic reform.  These changes have come in the wake of widespread realization of the failure of the neoliberal economic model to generate economic growth and dynamism and to reduce poverty.  Meanwhile, […]

  John Bellamy Foster and Fred Magdoff, The Great Financial Crisis: Causes and Consequences, New York: Monthly Review Press/Kharagpur, India: Cornerstone Publications, 2009, pp 160, US$12.95/Rs 100. Beginning with the failure of two Bear Stearns hedge funds and the consequent freezing of the high-risk collateralised debt obligations market in June 2007, the financial crisis deepened […]