Capital Resurgent: Roots of the Neoliberal Revolution
Harvard University Press, 2004 - Business & Economics - 249 pages
The advent of economic neoliberalism in the 1980s triggered a shift in the world economy. In the three decades following World War II, now considered a golden age of capitalism, economic growth was high and income inequality decreasing. But in the mid-1970s this social compact was broken as the world economy entered the stagflation crisis, following a decline in the profitability of capital. This crisis opened a new phase of stagnating growth and wages, and unemployment. Interest rates as well as dividend flows rose, and income inequality widened.
Economists Gérard Duménil and Dominique Lévy show that, despite free market platitudes, neoliberalism was a planned effort by financial interests against the postwar Keynesian compromise. The cluster of neoliberal policies--including privatization, liberalization of world trade, and reduction in state welfare benefits--is an expression of the power of finance in the world economy.
The sequence of events initiated by neoliberalism was not unprecedented. In the late nineteenth century, when economic conditions were similar to those of the 1970s, a structural crisis led to the first financial hegemony culminating in the speculative boom of the late 1920s. The authors argue persuasively for stabilizing the world economy before we run headlong into another economic disaster.
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CRISIS AND NEOLIBERALISM
The Strange Dynamics of Change
Economic Crises and Social Orders
CRISIS AND UNEMPLOYMENT
The Structural Crisis of the 1970s and 1980s
Accelerating or Slowing?
The Creator of Jobs and the Creator of Unemployment
An Epidemic of Financial Crises
Globalization under Hegemony
Myth or Reality?
Does Finance Feed the Economy?
Who Benefits from the Crime?
THE LESSONS OF HISTORY
The 1929 Precedent
Capital Mobility and Stock Market Fever
Controlling Labor Costs and Reining in the Welfare State
The End of the Crisis?
THE LAW OF FINANCE
The Interest Rate Shock and the Weight of Dividends
Keynesian State Indebtedness and Household Indebtedness