Explosive expansion of the financial markets in the clinton-ara

Short history of the global economic crisis – Part 2

That "Golden age" of capitalism, by reconstruction and rapid "internal expansion" marked period of the welfare state, Keynesian market economy, went over since the 70s in stagnation and inflation (the end of the "Golden age" of capitalism and rise of neoliberalism). For the first time since the end of the war, the productivity progress required by scientific advancement progressed to mass unemployment and a falling profit rate in most industrial sites. The neoliberalism practiced from the 1980s in the US and Great Britain aimed at raising the profit rate of companies by stagnation in the payrens, social degradation, tax relief for companies and the deregulation of labor market. The cancellation of the gold standard as well as the deregulation of the financial industry led to the "Financial explosion", which slowly began to act as a motor of the stagnant real economy.

The end of the "Golden age" Capitalism and the rise of Neoliberalism (Part 1) and the real estate speculation on the collapse of the global deficit economy (Part 3)

Neoliberal contradictions and stagnation

The reforms introduced by the Neoliberal soon brought the immanent, unuserous contradicts to them. The stagnant leaning, the tax gifts and social disconnection, actually love the profits and waxed soon, but at the same time the mass demand fell. Here comes a fundamental contradiction of the capitalist mode of production to bear, which could be described as incompatibility of business and economic logic. Each capitalist company is self-consuming to maintain its costs without a low price, and Reagan and Thatcher’s trade union policy facilitated the companies to print the labor costs or limit at least – in relation to growing productivity -. But as soon as the majority of companies reach this tactic of cost reduction, the manufacturing industry breaks away their own market, as the Keynesian principle, after which the workers should be the consumers of their own products, can no longer grab.

Walden Bello, renowned globalization critic and sociology professor at the University of Manila, brought down the functioning of this decades, classically capitalist over-production crisis to the point:

It is the tendency of capitalism to build huge productive capacity that exceeds the consumers of the population, especially due to social inequality, which limits the general purchasing power.

Walden Bello

To the goods mountains, which no buyers can find, the mountains go to capital, which is difficult in further product production a profitable investment opportunity. In addition, since the 70s, the increase in mass unemployment. This crisis of overproduction thus also leads to the overaccumulation of the capital – as we have already seen, this flow "excessive" Capital mainly in the financial markets and fired their storm growth. For the Oconomen Paul Sweezy, who already acknowledged the causes of finance capitalism in the 80s (link to / r4 / article / 29/29184 / 4.HTML), it was precisely this decrease in investment, which contributed to the continued stagnation of the real economy, the industrial base of the USA,.

Explosive expansion of the financial markets in the Clinton-Ara

Private, not bound to the real estate sector in percent of the US Power

It is obvious that the investment in the United States has experienced a radical burglary since the Fruhren 80s, which lasts the middle of the 90s. This is followed by a short, storm growth, which collapses as quickly after the year 2000 (this short investment bonanza is a reflection of the high-tech bubble, which we will still speak later). So this indicator had to indicate an economy in a crisis whose industrial base is always more slowly developing, so stagnant.

The already discussed economic stagnation of the 70s (link to / r4 / article / 29/29184 / 2.HTML) was therefore more specified by the mains of neoliberal governments in the 80s. In addition, it is now clear why the capital generated in goods production capital, is not reinvested in the industry, but fell into the financial markets (uberakkumulation): there are simply no profitable investment opportunities, as the market tends to shrink due to falling demand. In fact, these capital inflows in the 80s and at the beginning of the 1990s formed the most important "fuel" For the most prolific financial markets.

In the reigned by Sweezy or Bello, stagnation does not mean that there is a total standstill of the economy, but that a long-term tendency of a permanently falling economic growth in the industrialigners prevails, which are manifested to all the economic cycles. Wonderful this trend is illustrated by the German economy, as this was not directly exposed to the effects of finance capitalism. So the average growth per decade in the FRG fell. In the 1950s, Germany reached 8.2 percent a freight economic growth of 8.2 percent, in which 60s were 4.4 percent, in the 1970s 2.8 and averaging averaging 2,6. Between 1991 and 2003, the German economy even grew even more than 1.2 percent.

It seems as if the dynamics of capitalist development with progressive development of technology, with continued revolutionizing the productive force, the air. Still, this tendency for stagnation in Japan, this tendency is understood in Japan, which collaborated in the 90’s own equity and real estate speculation and equity households in the 90s and to fight with deflationary tendencies and a barely growing economy.

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