Subjects Archives: Political Economy

  • Whose Recovery?  What Double Dip?

    Is there an economic recovery underway?  Was there one that has now stopped?  Will our current recession, partly recovered from, now tumble downward again in a second or “double” dip?  Mainstream politicians, journalists, and academics are engaged in hot and heavy debates about recoveries and double dips.  Yet the economic reality for most Americans is […]

  • Quarterly Report on Household Debt and Credit

      Excerpt: Household Debt and Credit Developments in 2010Q21 Aggregate consumer debt continued to decline in the second quarter, continuing its trend of the previous six quarters.  As of June 30, 2010, total consumer indebtedness was $11.7 trillion, a reduction of $812 billion (6.5%) from its peak level at the close of 2008Q3, and $178 […]

  • Hormel Strike a Key Event in Nation’s Labor History

    From the late summer of 1985 into the early spring of 1986, the small town of Austin, Minnesota, figured prominently in the national news.  The dramatic themes and issues, twists and turns, of a labor conflict there captured the national imagination.  This interest was not merely passive, as more than thirty support committees formed across […]

  • Will Chinese Workers Challenge Global Capitalism?

      Paul Jay: In China in June, leaders of the Chinese Communist Party said that it’s time for workers’ wages to go up.  And there’s been a lot of discussion about whether China’s actually restructuring its economy to try to boost domestic demand.  Certainly in what leaders say in other parts of the world they […]

  • What Oil and Gas Companies Extract — from the American Public: It’s Time to End Unjustified Tax Loopholes for Oil and Gas Companies

      In the wake of the disastrous oil spill in the Gulf of Mexico, the public and the media have turned their attention to some of the subsidies provided through the tax code to BP, the corporation that leased the ill-fated Deepwater Horizon drilling platform.1  The truth is that oil and gas companies have for […]

  • What’s So Great about the Great Recession?

    David Leonhardt tells readers that the Great Recession has had some silver linings for many workers.  High on his list is continued wage growth.  This is misleading.  All the real wage growth in this downturn occurred in the months of November and December of 2008.  This was due to a plunge in the price of […]

  • The State under Neo-liberalism

    Much has been written on the subject of the capitalist State in the era of neo-liberalism.  Two features of the “neo-liberal State” in particular have been highlighted.1  One relates to the change in the nature of the State, from being an entity apparently standing above society and intervening in its economic functioning in the interests […]

  • Hungary’s Defiance of IMF and European Authorities Scares the Guardians of Austerity in Europe

    The government of Hungary has taken on a lot of powerful interests in the last couple of months, and so far appears to be winning — despite provoking outrage from “everybody who’s anybody.” “The IMF should hold the line,” shouted the Financial Times in an editorial the day after Hungary sent the IMF packing in […]

  • Fiscal Discipline and All That

    Rarely has an economic idea had such a brief revival.  After several years of almost undisputed sway of monetarist ideology over economic policy makers across the world, suddenly Keynesian ideas were back in fashion, in particular the idea that active state intervention in the form of increased state expenditure is necessary to bring a market […]

  • A New Type of Political Organization? The Greater Toronto Workers Assembly

    At the end of the first decade of the twenty-first century, the Left around the world is undergoing reformation.  As the Great Recession has vividly demonstrated, more than three decades of neoliberal capitalism have eroded many of the significant gains won in the immediate decades following WWII.  From wage and benefit concessions to reductions in […]

  • Nationalism, Liberalism, and Capitalism

    The Economist (July 15) published an editorial on Egypt and Saudi Arabia (two dictatorial countries allied with the United States in the Middle East) expressing hope that they would become democratic in the future.  What is surprising, however, is that in the same issue the magazine did a favorable review of a book by Stephen […]

  • A call to the President of the United States

    A few days ago, an article was published that really contained many facts related to the oil spill that occurred 105 days ago. President Obama had authorized the drilling of that well, trusting in the capacity of modern technology to produce oil, which he wished to make abundantly available, thus freeing the United States from […]

  • The Structural Crisis of Capitalism

    There is a very pervasive view that the current capitalist crisis consists exclusively of the financial crisis and, in so far as the financial crisis is now over, the crisis as a whole is over.  This, I believe, is erroneous, and this is because, like Bob Brenner, I also believe that the current financial crisis […]

  • “Work”: In Search of a New Slogan

    In 1972 Selma James, founder of the International Wages for Housework Campaign and, more recently, Global Women’s Strike, wrote the following: “We demand the right to work less.”  Her reasoning was clear — when women work for a wage for 40 hours a week and still carry the weight of childcare and housework, what is […]

  • Export Dependence and Sustainability of Growth in China and the East Asian Production Network

      Excerpt: [T]he conventional growth accounting based on the national income identity does not provide an adequate framework for assessing the contribution of components of demand to growth.  The standard exports/GDP ratio overestimates the income (value-added) generated by exports because it ignores the foreign (import) contents of exports, which tend to be particularly high in […]

  • Greece and the IMF: Who Exactly Is Being Saved?

      Excerpt: Importantly, the initial collapse and following standstill in economic activity and nominal levels of GDP is also extremely bad news for the strategy of fiscal consolidation itself.  On the one hand, to keep on servicing interest payments (see above), nominal debt will continue to go up.  On the other hand, nominal GDP goes […]

  • Capitalism as a Cultural System?

    Joyce Appleby.  The Relentless Revolution: A History of Capitalism.  New York: W.W. Norton, 2010.  $29.95.  Pp. xii, 494. Joyce Appleby, who taught U.S. history for many years at UCLA, presided over both the Organization of American Historians and American Historical Association, and served her term as professor-in-exile among the Brits at Oxford, comes to the […]

  • Monopoly Capital Blocks Rational Policy of Wage-led Growth

      Paul Jay: So we’ve been talking about macroeconomic policy, the G-20, austerity.  And there was one little line in the G-20 document I thought was interesting, and it’s sort of buried in amongst everything.  It said countries could facilitate wages going up proportional to productivity, which is rather interesting, ’cause it’s the only time […]

  • A Dual Task

    As we have pointed out on more than one occasion in this space, the government deficit is far from being a primary trouble spot.  In fact it serves as an important counteracting force to the prevailing stagnation.  On the other hand, the business community here and abroad sees the deficit, presumably because of its effect […]

  • Alternatives to Fiscal Austerity in Spain

    Executive Summary: This paper looks at the planned austerity measures in Spain, the rationale for the spending cuts and tax increases, likely outcomes for future debt-to-GDP ratios, and the probable results of alternative policies. It is widely believed that Spain got into trouble because of the over-expansion of government spending.  However, during the economic expansion […]