The rise and fall of capitalism

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the rise and fall of capitalism

The Rise and Fall of Neoliberal Capitalism by David M. Kotz

The financial and economic collapse that began in the United States in 2008 and spread to the rest of the world continues to burden the global economy. David Kotz, who was one of the few academic economists to predict it, argues that the ongoing economic crisis is not simply the aftermath of financial panic and an unusually severe recession but instead is a structural crisis of neoliberal, or free-market, capitalism. Consequently, continuing stagnation cannot be resolved by policy measures alone. It requires major institutional restructuring.

Kotz analyzes the reasons for the rise of free-market ideas, policies, and institutions beginning around 1980. He shows how the neoliberal capitalism that resulted was able to produce a series of long although tepid economic expansions, punctuated by relatively brief recessions, as well as a low rate of inflation. This created the impression of a Great Moderation. However, the very same factors that promoted long expansions and low inflation--growing inequality, an increasingly risk-seeking financial sector, and a series of large asset bubbles--were not only objectionable in themselves but also put the economy on an unsustainable trajectory. Kotz interprets the current push for austerity as an attempt to deepen and preserve neoliberal capitalism. However, both economic theory and history suggest that neither austerity measures nor other policy adjustments can bring another period of stable economic expansion. Kotz considers several possible directions of economic restructuring, concluding that significant economic change is likely in the years ahead.
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Published 18.12.2018

What Threatens Capitalism Now?

Opinion January 31, Modern Capitalism arose in the expanding merchant trade of the 16th and 17th centuries.
David M. Kotz

Rise of the robots – and the fall of capitalism?

The history of capitalism has diverse and much debated roots, but fully fledged capitalism is generally thought to have emerged in Northwestern Europe , especially in the Low Countries mainly present-day Flanders and Netherlands and Great Britain , in the sixteenth to seventeenth centuries. Over the following centuries, capital has accumulated by a variety of different methods, in a variety of scales, and associated with a great deal of variation in the concentration of economic power and wealth. Capitalism has gradually become the dominant economic system throughout the world. It is an ongoing debate within the fields of economics and sociology as to what the past, current and future stages of capitalism consist of. While ongoing disagreement about exact stages exists, many economists have posited the following general states.

In , the economy, still reliant on horse, wind and steam power, would still just have been recognisable to a Greek or Roman; by the modern age had been launched. Over 30 years the automobile, the aeroplane, the radio, the skyscraper, the ocean liner and a whole range of domestic electrical appliances emerged as astonishing new artefacts. Modernity had been launched. Although from Europe was to be mired in war and subsequent recession, Edwardian England shared in the early growth, which culminated in America's Roaring Twenties. The dollar challenged sterling; the European empires, led by the British, inexorably declined before the dazzling technological, industrial and financial might of America.

Home Blog Rise of the robots — and the fall of capitalism? Could robots bring about the downfall of capitalism? Will some humans become totally redundant or will workers simply find jobs in other sectors? Hector Pollitt explains why scenarios currently being assessed at CE are pretty pessimistic as far as jobs are concerned. The end of capitalism has been predicted many times before, going back to at least the writings of Karl Marx. More recently, the financial crisis led many people to believe that a new system was both needed and inevitable. In many cases the predictions were based on either flimsy or flawed evidence and reflected the political leanings of the authors.

Paul De Grauwe


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