Subjects Archives: Political Economy

John Maynard Keynes, though bourgeois in his outlook, was a remarkably insightful economist, whose book Economic Consequences of the Peace was copiously quoted by Lenin at the Second Congress of the Communist International to argue that conditions had ripened for the world revolution.  But even Keynes’ insights could not fully comprehend the paradox that is […]

The demonstrations that have rocked France this past week highlight some of its differences from the United States.  This photo, for example, shows the difference between rioting in baseball-playing versus soccer-playing countries.  In the U.S., we would pick up the tear gas canister and THROW it — rather than kick it — back at the […]

The slanging match over currency and monetary policies at the annual Fund-Bank meetings, held over the second weekend of October, points to the disarray in global economic governance.  While the US sought to mobilise IMF support for an effort to realign exchange rates and ensure an appreciation of the renminbi in the wake of China’s […]

Introduction Recently governments, economists, and international financial institutions have been debating the merits of further fiscal stimulus to combat the Great Recession versus fiscal austerity or “adjustment” — that is, higher taxes and/or lower government spending — to combat budget deficits.  Some supporters of austerity have gone as far as arguing that fiscal adjustment could […]

  Is the United States at long last getting serious about global imbalances, or are we risking currency wars that can end in unmitigated disaster for all?  No one knows, though tension is on the rise with China.  This much is certain: Any advantage from a lower currency is a zero-sum gain for the world […]

When the Crash of 2008 hit Wall Street, European capitalism was thrown into disarray.  With the demise of the export-absorbing monster that was the US consumer market, what in 2003 Joseph Halevi and I called “The Global Minotaur” (see Monthly Review, Vol. 55), Europe not only lost a critical source of aggregate demand but also […]

CHAPTERS 28 and 29 Obama came down from the residence and saw Biden.  Biden advised him:  “What you’re about to do is a presidential order; it is no longer an issue of continuing a discussion. This is not what you think. This is an order. Without them, we’re locked into in Vietnam”. Obama answered: “I’m […]

Imagine a world ravaged by a plague, and suppose that the year’s Nobel Prize for Medicine is awarded to researchers whose whole career is based on the assumption that plagues are impossible.  The world would have been outraged.  That is precisely how we should feel about yesterday’s announcement of the recipients of the 2010 Nobel […]

  Overlooked in the recent rise of the Tea Party and the Republican Right is the way these groups have learned how to grow and thrive on the failures of capitalism.  The Democrats, in contrast, remain tied to its successes.  With capitalism performing particularly poorly at present, it is no wonder that the Right is […]

  Guido Mantega, the Brazilian Finance Minister, said recently that Brazil is in the middle of a currency war.  His preoccupation with exchange rate appreciation is not directed to global imbalances, in general, or China, in particular.  A more depreciated currency provides protection for domestic production and makes domestic goods and services cheaper for foreigners. […]

  Historical Materialism has extended the deadline for proposal submissions to its special issue on the Middle East, conceived broadly to include: the Arab world from the Atlantic to the Gulf, Israel/Palestine, Iran and Turkey.  The new deadline for abstracts is the 10th of November 2010. HM is a Marxist journal, appearing four times a […]

  Summary: In 1989, services comprised no more than 10 per cent of Cuba’s export revenues, with sugar accounting for over 70 per cent.  In 2007, by contrast, it was sugar that made up 10 per cent of overseas earnings while services accounted for 70 per cent.  The article provides an overview of this drastic […]

  When Time magazine awarded Brazil’s President Lula the most influential world leader spot in its 2010 ranking of most influential people, Michael Moore, who wrote the excerpt on Lula, heralded the creation of the Bolsa Familia programme as well as the expansion of public education and health care.  These are important achievements, but one […]

  The free trade push has begun again.  Both U.S. President Barack Obama and South Korean President Lee Myung-bak are calling for ratification of the U.S.-Korea Free Trade Agreement, which was signed by the two countries’ trade representatives in April 2007 but has yet to be approved by either the U.S. Congress or the South […]

Six years ago, I organized a bus from the Albany area to attend the “Million Worker March,” which was an attempt by longshore local ILWU Local 10 and some activist African-American union leaders to present labor’s demands during the 2004 election year.  That rally was not supported by the AFL-CIO and of course fell far […]

Testimony before the Congressional Out of Poverty Caucus Hearing on “An Emergency Response to the Crisis of Poverty in America,” 30 September 2010. Thank you very much for the opportunity to speak today to the Congressional Out of Poverty Caucus on the poverty crisis facing America. In 2009, the national poverty rate hit 14.3 percent, […]

An alarming trend is sweeping Europe.  Far-right parties, using anti-Muslim and anti-immigrant rhetoric, have made electoral gains in several European countries.  In the June European parliament elections, these parties were able to garner votes in a way they haven’t before.  The British National Party (BNP), which has its roots in fascist parties of the past, […]

  The article “Palestinian Economic Dependency on Israel,”1 published on the Alternative Information Center’s website on 23 September 2010, briefly mentioned official development assistance (ODA) to Palestinians.2  This article will elaborate more fully on foreign aid to the Palestinians, particularly in relation to the Israeli economy. Trade Deficit The Occupied Palestinian Territory (OPT) has an […]

Michael Norton (of Harvard Business School) and Dan Ariely (of Duke) have released results (pdf) from a series of experiments they did in 2005 on the subject of wealth inequality.  They asked individuals in a nationally representative online panel to (1) estimate the current US distribution of wealth and (2) “build a better America” by […]

With the economy suffering from near double-digit unemployment, public debate is dominated by concerns over the budget deficit and national debt.  This discussion is unfortunate both because there is no reason for people to be concerned about the deficit at present, and more importantly, because it discourages action on the unemployment crisis that is devastating […]