Is Capitalism in Crisis? Latest Trends of a System Run Amok

C.J. Polychroniou, a political economist/political scientist here interviews David M. Kotz, professor of economics at the University of Massachusetts at Amherst and author of The Rise and Fall of Neoliberal Capitalism (Harvard University Press, 2015).

      Today, the question that should haunt progressive-minded and radical scholars and activists alike is whether capitalism itself is in crisis, given that the latest trends in the system are working perfectly well for global corporations and the rich, producing new levels of wealth and increasing inequality.

 This is a long view analysis of economics and capital as a national and global system.  It could be a great place to start a discussion of the concept "small is beautiful" as it begs the question: Is a localized, sustainable social and economic order possible?  This is of course a very important question as the framework of discussions of capitalism most often does not address ecological sustainability which is so critical as we pass  400 ppm atmospheric CO2 which already guarantees climate disasters and threatens survival on the planet. This article concludes that a state centralized socialism has already proven the most effective model to address such a crisis but leaves us wondering how to best structure a stable state social order in the long run on a small planet.



This discussion continues:

     Having survived the financial meltdown of 2008, corporate capitalism and the financial masters of the universe have made a triumphant return to their "business as usual" approach: They are now savoring a new era of wealth, even as the rest of the population continues to struggle with income stagnation, job insecurity and unemployment.
     This travesty was made possible in large part by the massive US government bailout plan that essentially rescued major banks and financial institutions from bankruptcy with taxpayer money (the total commitment on the part of the government to the bank bailout plan was over $16 trillion). In the meantime, corporate capitalism has continued running recklessly to the precipice with regard to the environment, as profits take precedence not only over people but over the sustainability of the planet itself.
     Capitalism has always been a highly irrational socioeconomic system, but the constant drive for accumulation has especially run amok in the age of high finance, privatization and globalization.

The outcome of all this is not at all obvious and in fact as this article insinuates, the strongest possibility in our current political landscape is a fascist strongman and more war and oppression, rather than a new utopian renaissance.  I for one will not give up my dreams for peace and justice. In fact, such dreams may be all that can save us.

Is Capitalism in Crisis? Latest Trends of a System Run Amok: