The global economic crisis – Nacho Alvarez

The global economic crisis - Nacho Álvarez

• Outline of the lecture

• The neoliberal answer to the crisis since the 1980’s

- The extension of neoliberal measures: liberalization, privatization and external opening of economies. - Main characteristics of the neoliberal period: financialization, stagnation and unemployment. - Restoring profitability: the wage regression. - The resurgence of financial capital and the accumulation of debt -Export-led growth vs. debt-led growth

• Marxist analysis of the current crisis

- Profitability and evolution of the rate of profit - Financialization and accumulation of fictitious capital: the crisis of neoliberalism - The Euro crisis: a storm in the center of the world economy - The crisis in the periphery: Latin America and Asia

• The responses of the elites to the current crisis and possible alternatives

- The response in USA: the support to Wall Street and to financial capital - Bailouts, austerity and Memorandums in the European Union: deepening social regression - An alternative economic policy

• Reading Materials

• Husson, Michel and Louçã, Francisco (2012): “Late capitalism and neo-liberalism. A perspective on the current phase of the long wave of capitalist development”, January 2012.

• Husson, Michel (2010): “The debate on the rate of profit”, International Viewpoint, July 2010.

• Moseley, Fred (2012): "The U.S. Economic Crisis: Profitability Crisis and Household Debt Crisis Combined”, URPE-Occupy Summer Conference, August 2012.

• Shaikh, Anwar (2012): “Causes and Consequences of the Current Global Economic Crisis”, URPE-Occupy Summer Conference, August 2012.

• Toussaint, Eric (2011): “In the eye of the storm: the debt crisis in the European Union”, CADTM, September 2011.

• Toussaint, Eric (2011): “New Debt Crisis in Third World?”, International Viewpoint, 31, October, 2011.

• Millet, Damien and Toussaint, Éric (2012): “What emergency programme for the crisis?”, International Viewpoint, July 2012.

• Questions for the groups

• The neoliberal answer to the crisis since the 1980’s

1. How profitability was restored? Which are the main cornerstones of neoliberalism? 2. Is neoliberalism a sustainable model? What are the main weaknesses?

• Marxist analysis of the current crisis

1. Are we witnessing “the crisis” of capitalism or the crisis of neoliberal capitalism? 2. Why the Euro is the weakest “link” at this moment? 3. Could Asia and Latin America decouple from the crisis in the advanced capitalist countries?

• The responses of the elites to the current crisis and possible alternatives

1. What are the main objectives imposed by the elites in this crisis and how do they pursue them? 2. What contradictions and limitations face the strategy of the elites? 3. How can we raise an alternative to the crisis?