This is a hard question to answer in regard to their opinion on the Depression to single out any one phrase. Depression and Recessions are centered on this concept, capitalism base was on the production of goods for consumption, production of durable goods, consumption goods and the life span of each between production and profit (Classical economics Money-Capital-for more Money M-C-M = products for consumption). Financialization has shortened the life span by producing new forms of production of services while at the same time we acquire training in the meaning of obsolescent desire to increasing acceleration in the moment of action. This acquired meaning of Capitalism, as the fundamental institution, fallows the distribution of wealth in the same sense that no one entity can fully understand the workings and risk of the entire financial market, and by concentrating wealth in a limited number reduces risk when the lender of last resort can pull its revenue from the entire population, “currently a class system” developed by the desire to control the mass population. As David Harvey states a decrease in expenditures (tax cut) must be supported by cuts in expenditures (social programs) consider Robert Reich’s “unrealized capital gain” (money not spent on consumption goods) or, shifting to financialization (Money-to make more-Money = speculation) because of shorter life span on return of profits. It is my interpretation, all the financial crises are preceded by a concentration of wealth in fewer members of the social culture that occupies a particular geographic location and that other elements, sometimes numerous, trigger panic, to crash, to crises, each element not enough on its own but a sequence of actions that produce circumstances. When ignored, because of the belief that the market is self-correcting, are the true causes of financial crises this can be summed up by the proses of accumulation. The systematic underlying problem of accumulation under monopoly-finance-capital is stagnation undoing aggregate demand and support of Minskys “Financial Instability Hypothesis”. The accumulation developments can be seen as marking transformation of the stage of monopoly capital into the new phase of monopoly-finance capital. Characteristic of this phase of accumulation is the stagnation-financialization. Whereby, financial expansion has become the main “hope” for the system, yet is incapable of overcoming the underlying structural weakness of the economy. Much like drug addiction, new, larger fixes are required at each point merely to keep the system going. Every crisis leads to a brief period of restraint, followed by further excesses bringing us back to the desire for short term life span, by producing new forms of production in financial services. Other external stimuli, such as military spending, continue to play a significant role in lifting the economy, but are now secondary in impact to the ballooning of finance. Accumulation cannot be seen as simply adding to the existing capital goods it must also be perceived as a buildup to financial claims to wealth. The key words used in their publication are “over accumulation”, “stagnation”, “financialization”, “monopoly-capital-finance”, and “financial speculation”, just to list a few. In the US-stimulated significantly by increasingly higher levels of debt and this speculation adds to more debt supported by a predator state that is too weak to protect the hospitality of a cosmopolitan community’s culture of social habitus. Over accumulation in the real or productive economy is the further contradiction of a system that increasingly seeks to promote growth in production as a secondary effect of the promotion of speculative financial assets. It is as if, in Marx’s famous short-hand, one could indefinitely expand wealth and value by means of M[oney]- M′, instead of M-C[ommodity]-M′ — skipping altogether the production of commodities in the generation of surplus value, i.e., profit. This is a potent sign, if there ever was one, of the system’s increasing irrationality. The fact that the root difficulty remains a rising rate of exploitation of workers is indicated by the fact that, in 2006, the real hourly wage rate of private, nonagricultural workers in the United States was the same as in 1967, despite the enormous growth in productivity and wealth in the succeeding decades. In 2000-07, productivity growth in the U.S. economy was 2.2 percent, while median hourly wage growth was -0.1 percent. Wage and salary disbursements as a percentage of GDP declined sharply from approximately 53 percent in 1970 to about 46 percent in 2005. Yet, as if in stark defiance of these trends, consumption at the same time rose as a percent of GDP from around 60 percent in the early 1960s to about 70 percent in 2007. Such contradictory developments were made possible by a massive expansion of household debt and the creation in the end of a household bubble, rooted in the securitization of home mortgages. The bursting of the “housing bubble” was the inevitable result of the destruction of the household finances of the great majority of the working population. As I stated earlier the key concept, the life span of each between production and profit are keys that need to be considered when identifying future financial obsolescent desire to increasing acceleration in the moment of an action. Consider the action prior to each financial crises have in common, (separation and inequality of wealth), (drop in aggregate demand), (wild gyrations in financial markets), (fear of future income), (debt disease), (lack of knowledge of government foreigner or domestic), and the false belief (the market is self-correcting). If the market was self-correcting financial crises would not happen on the scale related to 2008, 1997,1929, or any others global or domestic.
Posted on: Mon, 04 Nov 2013 18:06:36 +0000
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