Free download The Enigma of Capital and the Crises of Capitalism ¶ PDF DOC TXT or eBook

Free read ç PDF, DOC, TXT or eBook î David Harvey

The Enigma of Capital and the Crises of CapitalismFor three centuries the capitalist system has shaped western society informed its rulers and conditioned the lives of its people Has the time come to move beyond itUsing his unrivalled knowledge of the subject Harvey lays bare the follies of the international financial system looking at the nature o. In this book David Harvey tries to explain the causes of the current economic crisis which he argues is the last in a string of crises that started roughly in the early 1970s but for which the ground work was laid basically at the end of World War IIHarvey argues that the boombust cycles we've seen in the past 20 30 years and especially the current one are the conseuence of the fact that too much investment capital is chasing too few investment opportunities a problem that is actually exacerbated by lowering wages because the money saved on production workerlow skiled labor becomes available for raising managerial wages and dividend payouts thus leading to increased profits and a decrease in aggregate demand because this money then becomes available for saving or reinvestment rather consumption And because capitalism reuires as Harvey puts it 'yesterday's profits to be reinvested in tomorrow's production' a process that must result in an effective yield of ca 3% every year currently than 1 trillion dollars has to be reinvested to ensure the system doesn't grind to a halt resulting in recession that is little to no growth Yet because the growth can only happen when the products produced are also sold this means that a decrease in demand caused by lowering working class wages causes instability in that circle And at the same time when there is a large and growing gap between the amount of money available for investment and the amount of money needed for the new and existing investment opportunities investors start to panic and turn to asset stock or commodity speculation resulting in the freuent bubbles we've seen happening in housing tech stocks but also in oil sugar and grain in order to maintain their yields on their savings And this bubble blowing in turn has allowed the banks and large speculators to transfer the wealth contained in things like pension funds to themselves helped along by for instance bush's privatization of pension plans simply because the former as a rule are better at guessing when to get out of 'bull markets' before they deflate and drop back to normals levels again while small investors people trying to get higher yields on their 401ks from the stock market because normal saving had become impossible because of Greenspan's low interest rate policies lose time and time againThe most important problem then is the enormous gap between supply and demand in the world economy which is largely caused by the fact that the aggregated wages of those who are expected to consume the goods produced have been dropping ever since the 1970s Because of the development of the Chinese Japanese and 'Asian Tiger's' industrial base funded in large part by western investors competition for especially low skilled but increasingly high skilled labor has been increasing for decades and this has had served as a strong downward pressure on working and lower middle class wages A second downward pressure being efficiency gains and redundancy caused by technological innovation Conseuently aggregate demand has been dropping or at least not increasing at the same pace as investment on the side of production has been growing serving as an additional reason for factory owners to downsize or outsource their workforce However because of the fact that prices didn't drop appreciably this has meant that money was available for people in high skilled and managerial positions whom we might call 'investors' defined as people who save a lot and who expect their savings to yield 'decent' returns there has been a growing mismatch between the amount of money invested and the amount of money being available for consumption needed to keep the cycle going Now one way in which consumption was kept at higher levels than was actually sustainable was by relaxing or removing restrictions on borrowing and by allowing a bubble to develop in the Real Estate market because the on paper gains in wealth could serve as collateral for the loans that were extended which meant that enough people appeared to manage when they really weren't It also helped because the rising housing market led to home construction and sales which gave people jobs which incidentally cannot be outsourced This borrowing funded consumption then helped along by first the dot com and subseuently the real estate bubbles is the proximate cause of the current crisis and its bust seems to have marked the end of the road for that behaviorHowever this leaves us with the uestion what can be done This is an enormously difficult uestion to answer because of the fact that any sharp disruptions eg by banning imports from china to help domestic industries would immediately result in a rise in prices for consumer goods which would mean that people whose wages can barely sustain them at the current low prices would then really go under Harvey knows he does not have the answer to this uestion but he does suggest that if we want to end the boom bust cycles we have to intervene in the profit wage euation Only when aggregate demand can absorb the products supplied in a year can an economy grow in a 'healthy' fashion but at the same time all profit made over and above the amount of money necessary for reinvestment some growth leads to instability because of the fact that mismatches between investment opportunities and money available for investment encourages investors to start speculatingNoteconclusion I have now rewritten this review a number of times but because of the interrelatedness of all of the aspects that play a role in the system I am finding it uite hard to come up with a way to write it that works I hope however that this makes you curious enough to pick up Harvey's book and to see how much clearly Harvey can explain this mechanism than I can because I cannot really do justice to his contributionI would suggest however that it really is worth your time if this crisis interests you And even if it doesn't because even if it doesn't interest you it does affect you

David Harvey î 0 Free read

F capitalism how it works and why sometimes it doesn't He examines the vast flows of money that surge round the world in daily volumes well in excess of the sum of all its economies He looks at the cycles of boom and bust in the world's housing and stock markets and shows that periodic episodes of m. In between reading smut I like to read serious shit Shocking I know And this book is the best serious shit book a person can read I have read a lot of books on the financial crisis and woeful state of the Western economies and this is hands down the bestHarvey paints a very accurate picture of everything wrong with late stage neo liberal capital And he does so in an easy to read and understand manner He looks at the issue from a macro perspective and shows how the whole system is unstable and on the verge of collapseI think neo liberal every one for themselves economics are terrible Not just for the individuals crushed by the harsh system but for all of us on the planet Ineuality is now at an all time high The last few times we've been in this position we ended up in two world wars You can't divorce the ever increasing conflict in the world from the fact that masses of ordinary people are struggling while a tiny elite gets richer and richerand richer If things don't change we are heading for very dark days Right off my soapbox and back to the smut Because there's only so much reality a girl can take But if you want to know why we are in the mess we're in you could do a lot worse than read this book

Free download The Enigma of Capital and the Crises of Capitalism

Free download The Enigma of Capital and the Crises of Capitalism ¶ PDF, DOC, TXT or eBook ↠ For three centuries the capitalist system has shaped western society informed its rulers and conditioned the lives of its people Has the time come to move beyond itUsing his unrivalled knowledge of thEltdown are not only inevitable in the capitalist system but essential to its survival The Enigma of Capital is a timely call to arms for the end of the capitalism and makes a compelling case for a new social order that would allow us to live within a system that could be responsible just and humane. AS much as I agreed with his views and thought his analysis to be dead on I oculdn't get excited about reading this book In order to dissuade people from the prevailing neo liberal bs leftist writers need to be far readable