Subjects Archives: Stagnation

  • Ten Theses on New Developmentalism

    On May 24 and 25 of 2010, a group of economists sharing a Keynesian and structuralist development macroeconomics approach convened in São Paulo to discuss ten theses on New Developmentalism — the name that some of them have been using for some years to describe the national development strategy that middle income countries are today […]

  • Playing the Currency Blame Game

    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 […]

  • Riding Capitalism to the Bottom: Why Republicans Gain as the Economy Falters

      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 […]

  • Currency Wars and Global Rebalancing

      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. […]

  • From Sugar to Services: An Overview of the Cuban Economy

      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 […]

  • Signs of the Beginning of the End of the Long Retreat of Labor

    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 […]

  • The Enigma of Capital and the Crisis This Time

    Paper prepared for the American Sociological Association Meetings in Atlanta, August 16th, 2010. There are many explanations for the crisis of capital that began in 2007.  But the one thing missing is an understanding of “systemic risks.”  I was alerted to this when Her Majesty the Queen visited the London School of Economics and asked […]

  • FDI as a Means of Financing Development

    Discussions on foreign direct investment (FDI) as a means of financing development often suffer from two different shortcomings.  The first, a very basic one, confuses real with financial resources.  The second does not distinguish between different forms of foreign direct investment.  The question of financing development is concerned with finding the real resources for increasing […]

  • Europe in Crisis

    Part 1: The German Space of Accumulation The present state of affairs in the Eurozone and in the EU reflects the partition of the European Union into three groups. The first is a group of neomercantilist countries centred on Germany and formed by Holland, Belgium, Austria and Scandinavia.  Their neomercantilism can be defined as a […]

  • Update on the Venezuelan Economy

    Executive Summary: After nearly six years of record economic growth, the Venezuelan economy went into recession in the first quarter of 2009, shrinking by 3.3 percent that year.  A number of analysts see this as the end of an “oil boom” and the beginning of a long period of recession and stagnation. For example, in […]

  • 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’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 […]

  • “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 […]

  • 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 […]

  • 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 […]

  • The Fear of Secular Stagnation

    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 […]

  • Socialism or Reformism?

    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 […]

  • The Merkel Model Spreads to Japan

    The European public debt crisis, artificially created by the puritan obtuseness of German Chancellor Angela Merkel, has spread to even Japan.  In fact, Naoto Kan, the new prime minister, mentioned Greece in a speech in which he claimed to fear the collapse of the Japanese economy under a heavy public debt equal to 230 percent […]

  • Exploiting “Crisis” to Crush Labor

    One thing should be made clear about the situation in the Eurozone economies that is not clear at all if we rely on most of the news reports.  This is not a situation where countries face a “dilemma” because they have overspent and piled up too much public debt.  They do not face “tough choices” […]