"If I told you eight years ago that America would reverse the great recession, reboot the auto industry, and unleash the greatest stretch of job creation in our history ... you might have said our sights were set a little too high." Thus boasted the former US president Barack Obama in his farewell address. But is the financial crisis really behind us? Has the strategy implemented to save the banks not, on the contrary, created the conditions for the next conflagration? Cédric Durandwrites.
An abbreviated version of this article appeared in the February 2017 Le Monde diplomatique. Translated by David Broder.
Figure 1: GDP growth in the advanced economies
Happy anniversary! On 2 April 2007, New Century Financial Corporation entered into liquidation. The collapse of this US real estate investment company — the second biggest provider of the now-infamous subprime mortgages — fired the starting gun on a financial crisis bigger than any the world had seen since 1929. Ten years on, capitalism is still yet to recover from this major shock. Growth is sluggish, under-employment endemic and the extreme monetary policies implement by central banks are reaching their limits.
“Before capitalism will go to hell, it will for the foreseeable future hang in limbo, dead or about to die from an overdose of itself but still very much around, as nobody will have the power to move its decaying body out of the way.” - Wolfgang Streeck
After years of ill health, capitalism is now in a critical condition. Growth has given way to stagnation; inequality is leading to instability; and confidence in the money economy has all but evaporated.
We present a reading list of titles that examine our current economic state, including Wolfgang Streeck's critically-acclaimed analysis, How Will Capitalism End? and Geoff Mann's provocative new book on Keynesianism, political economy, and revolution.
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"Before capitalism will go to hell, it will hang in limbo from an overdose of itself" - Wolfgang Streeck
An extract, taken from How Will Capitalism End? by Wolfgang Streeck, currently 50% off as part of our end-of-year sale.
"Wolfgang Streeck: the German economist calling time on capitalism" - Aditya Chakrabortty interviews Wolfgang Streeck.
2011 demonstration against Berlusconi in Palermo. via Wikimedia Commons.
Comparisons between Donald Trump and former Italian PM Silvio Berlusconi abounded throughout the presidential election campaign and have only proliferated since Trump declared victory. They are not entirely ungrounded.
Trump and Berlusconi are both men who came to power from business rather than politics and both have presented their inexperience with the political establishment as a mark of purity. They have both insisted on their entrepreneurial success as the most evident proof of their qualification to rule the country. Like Plato’s tyrant, they both exhibit an ethos based on a dream of continuous and unlimited jouissance and an aggressive and hubristic eros (though Berlusconi prefers to think of himself as an irresistible seducer rather than a rapist). They both indulge in gross misogynistic and racist jokes and have reshaped public language by legitimizing insult and political incorrectness as acceptable forms of political communication and by embodying an exhilarating return of the repressed. They both revel in kitschy aesthetics and don the orange hue of artificial tanning. And they both allied with the far right in order to advance a political project of authoritarian neoliberalism and unbridled capitalism.