Subjects Archives: Global Economic Crisis

Capitalism has generated recurring “crises” everywhere and throughout its history.  It alternates bursts of growth and prosperity with crisis periods when many workers lose jobs and homes, bankruptcies close enterprises, production shrinks, and governments reduce public services.  Growth periods almost always promote speculation, overproduction, inflation, and excess debts that crises then erase or even reverse.  […]

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 […]

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 […]

JOHANNESBURG, 26 May 2009 (IRIN) — Food prices will rise again by 2015, when economies are expected to have recovered from the global recession, pushing up demand once more, says a recent UN report. 2008 is seen as the year of food crises, prompted in part by high fuel prices, but these started declining as […]

C. Wright Mills created the concept of a “power elite;” he imported the term “New Left” from Europe to the United States, and he was among the first to catch the phrases “paradigm” and “postmodern.”  A global thinker in a square era, he was everything postwar America was not: radical, original, and hip.  His work […]

  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 […]

A talk given at a Left Forum panel, April 2009. It’s spring and I’ve been thinking a lot lately about reincarnation.  If I’m a good adjunct can I come back as a tenured professor?  If I stay a loyal Cub fan, can I come back as a Yankee fan?  Actually, it’s political reincarnation that I’ve […]

Kate’s is a local bar in a far northeast corner of the Bronx.  During the day, elderly patrons wash away their remaining years in a sea of booze-inspired camaraderie.  I peek in sometimes as much from curiosity as to remind myself of a future I hope to avoid.  A few years back someone changed the […]

A group of economists from across Canada are concerned about the federal government’s response to the auto crisis that blames the CAW for a crisis it didn’t create.  They’ve signed the following open letter outlining their concern that government pressure to cut wages will increase the risk of deflation and calling for new and focused […]

Any recession by definition is associated with an excessive liquidity preference.  An ex ante excess supply of goods and services, i.e. the demand for goods and services falling short of the base output at the base prices corresponding to that output, which is what a recession is, must be associated with an ex ante excess […]

  Four Lectures on Marxism (Monthly Review Press, 1981).  Reprinted by Cornerstone Publications, Kharagpur, West Bengal.  ISBN 978-81-88401-17-8.  Rs 55. pp 97 Back in the dog days of the Great Depression, “a very bourgeois American first-year graduate student” (as he would describe himself in a letter to a friend decades later) from Harvard landed in […]

As all working people know, April 15 is Tax Day, when we have to pay our annual financial tribute to the Powers That Be.  Naturally, we resent this, because we know that the rich and powerful hire expensive tax attorneys to make sure they get out of paying taxes, leaving us to foot most of […]

A huge chorus now clamors to heap new regulations on banks, credit markets, international capital flows, and so on.  Regulations, for many in politics, the media, and academia, seem to have become the magic bullet that will not only “solve” the current economic crisis but also prevent future meltdowns.  Many labor union and left voices […]

Deep economic crises violently interrupt daily lives and force more radical responses onto the public agenda.  In the case of the North American auto industry, however, that radicalism has been remarkably one-sided.  Absent an alternative of their own, workers were (and remain) trapped by their dependency on “their” corporations becoming stronger.  On the one hand, […]

  This article analyzes one of Japan’s most widely reported labor stories in recent years.  The unusual degree of national attention given to this incident is evidence that the labor question has become a central issue in Japanese politics.1  It also offers insight into critical shifts in the landscape of both labor politics and labor […]

During his speech, the Venezuelan head of state insisted that “the agreements not remain on paper” as in previous years.  He condemned the arrest warrant on the president of Sudan, Omar al-Bashir, issued by the International Criminal Court “by order of the United States” and stressed the need to create a currency to confront the […]

I think that what we’re going through now — which is really just starting, we’re nowhere in the middle of it yet either, I think — is much bigger and more extensive than the Great Depression.  There are particular difficulties of fixing it because of the fact that it is bigger, it is more global, […]

Private capitalism (in which productive assets are owned by private individuals and groups and in which markets rather than state planning dominate the distribution of resources and products) has repeatedly demonstrated a tendency to flare out into overproduction and/or asset inflation bubbles that burst with horrific social consequences.  Endless reforms, restructurings, and regulations were all […]

The government estimates the growth rate will be 2% at the maximum this year.

“The strategy is to create a public instrument in which the banks place certain percentages of their targeted portfolios.”

  2009 started off badly.  The international economic crisis is the top priority of governments, companies, international organizations, and individuals preoccupied with having a roof to sleep under and food on the table. The situation has surprised almost everybody, albeit Cuba to a lesser degree.  Almost a decade ago, Comandante Fidel Castro warned that the […]