The Limits to Capital provides one of the best theoretical guides to the history and geography of capitalist development. In this new edition, Harvey updates his classic text with a substantial discussion of the turmoil in world markets today.
In his analyses of 'fictitious capital' and 'uneven geographical development' Harvey takes the reader step by step through layers of crisis formation, beginning with Marx's controversial argument concerning the falling rate of profit, moving through crises of credit and finance, and closing with a timely analysis geopolitical and geographical considerations.
Capital could not just abolish the gains of the postwar period. It was necessary to preserve social peace. The "trick" in the 1970s consisted of using inflation to defuse the emerging conflict between labour and capital over redistribution. The money machine was used to compensate for the loss of income which resulted from the reduction in capital’s contribution to the welfare state… Evidently, that could not last. So from the late 1970s inflation was replaced with public debt, and states borrowed (rather than tax) in order to be able to keep up the level of services. Then, in the 1990s, when states began to worry about the growing weight of debt servicing as part of their budgets, and reduced their spending (and thus social services) we took recourse to private debt. In other words, we made it easier than ever for households to take on debt so that they could preserve their purchasing power, which was being cut back by these budget consolidation measures. And that led us to the 2008 catastrophe.
This post first appeared at Research & Destroy.
We can imagine a person slowly becoming aware that he is the subject of catastrophe. The form of consciousness might be likened to someone peering out the window of a plane. They have been aboard for a long time, years, decades. From cruising altitude the landscape below scrolls past evenly, somewhat abstracted. The stabilizing mechanisms of eye and brain smooth the scene. Perhaps they are somewhere above the upper midwest. Their knowledge of the miseries that have seized flyover country hovers at the periphery of a becalmed boredom. Steady hum of the jet engines, sense of stillness. Borne by prevailing winds the first balloonists detected no wind whatsoever. So this flight. Though the passengers will never travel faster than this they scarcely feel any motion at all.