Subjects Archives: Political Economy

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 […]

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 […]

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 […]

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 […]

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 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 […]

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 […]

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 […]

  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 […]

  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 […]

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 […]

  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 […]

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 […]

The issue of “blood diamonds” has once again made the news: Farai Maguwu, Director of Zimbabwe’s Mutare-based Centre for Research and Development (CRD), languishes under the long arm of Zimbabwe’s laws on alleged charges related to his research on Zimbabwe’s Marange mines.  According to a confidential 44-page report produced by investigators mandated by the Kimberley […]

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 […]

I love the prospect of secular stagnation (raised by Bob Reich) primarily because the answers are so easy: Let’s keep our eyes on the ball.  The problem in this picture is that we are capable of producing more goods and services than we want to consume.  It’s a problem of too little money chasing too […]

  An interactive cinematic experiment that reinterprets a shot from the film Umberto D by Vittorio de Sica, manipulating it in response to the attention that the viewer devotes to it.  Umberto D depicts Italy in 1952 in the middle of a deep recession, a mirror of the current economic crisis. Fernando Nabais, Project Manager, […]

  Kenneth Mouré, The Gold Standard Illusion.  France, the Bank of France and the International Gold Standard, 1914-1939.  Oxford and New York: Oxford University Press, 2002.  x + 297 pp.  Figures, tables, notes, bibliography, and index.  $72.00 (cl.) ISBN 019-924904-0. Kenneth Mouré’s new book extends and develops the analysis of his previous study of Bank […]

I We live at a time when resistance to the inequities that exist in this world and the struggle for a better world are almost totally detached from any striving for socialism.  Climate change, imperialist aggression, forcible dispossession of peasants in the name of “development”, oppression of the tribal population, gender discrimination, and ecological degradation […]

Statement to the Commission on Deficit Reduction by James K. Galbraith, Lloyd M. Bentsen, jr. Chair in Government/Business Relations, Lyndon B. Johnson School of Public Affairs, The University of Texas at Austin, and Vice President, Americans for Democratic Action, June 30, 2010 Mr. Chairmen, members of the commission, thank you for inviting this statement. I […]