The neoliberal capture of the state has laid the ground for the financialization of capitalism, a stage of capitalism that cannot be reversed without developing new methods of public provision in housing, education, health, pensions and the other sources financialization has used to create profit. This is the crux of the argument advanced in Costas Lapavitsas's latest work, Profiting without Producing: How Finance Exploits Us All.
With this book, Lapavitsas sheds much light into one of the most misunderstood processes in the evolution of capitalism, correcting in the process the tendency on the part of many "progressive" economists to regard regulation as the ultimate solution to the exploitative nature of finance capital. For Lapavitsas, the struggle against finance capital is simultaneously a struggle against capitalism and for democratic socialism.
Below are some extracts from a Truthout interview with Costas on his theory of financialization of capitalism - you can read the interview in full here.
C.J. Polychroniou: The landscape of contemporary capitalism has been shaped by neoliberalism, globalization and financialization. Your new book deals with the financialization of capitalism. First, what does financialization mean for you, and in what ways does it represent a new feature of capitalism?
Costas Lapavitsas: For me, financialization represents a new historical period in the development of capitalism. Marxist political economy typically recognizes three great periods: laissez-faire capitalism around the middle of the 19th century, monopoly capitalism toward the end of the 19th century and imperialism that lasted perhaps until the Second World War. The 70 years since the war have been very difficult to categorize, not least because of the extraordinary Long Boom that lasted until the early 1970s, with unprecedented growth rates, rising incomes and greater equality. The Long Boom has been followed by four decades of indifferent growth, often stagnant incomes and rising inequality. In my view, financialization is a term that adequately characterizes this period. Its dominant feature has been the extraordinary rise of finance, which has come to penetrate areas of economic and social activity previously relatively distant to it.
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THE CITY / URBAN EXPLORATION
Explore Everything: Place-Hacking the City
Bradley L. Garrett
"Garrett perceives the city like no one else I know. Seen through his eyes, it is newly porous, full of “vanishing points”, “imperfect joinings” and portals – service hatches, padlocked doorways – that you wouldn't usually notice... The city's accessible space extends far down into the earth (sewers, bunkers, tunnels) and far up into the air (skyscrapers, cranes), with the street level only serving as a median altitude." – Robert Macfarlane, Guardian
"[Combines] erudite references (Montesquieu, Walter Benjamin) with compelling photographs of men in hoodies in strange places." – Rowan Moore, The Observer Architecture Books of the Year
Photo by Henri Zerdoun
We were deeply saddened to hear that André Schiffrin had died. He was not only the preeminent radical American publisher of his generation—perhaps of all generations—he was also a Verso author, the writer of the two most trenchant books on contemporary publishing, The Business of Books (2001) and Words and Money (2010).