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The U.S. Economic Crisis: From a Profitability Crisis to an Overindebtedness Crisis.
- Source :
-
Review of Radical Political Economics . Dec2013, Vol. 45 Issue 4, p472-477. 6p. - Publication Year :
- 2013
-
Abstract
- This paper argues that the fundamental cause of the current economic crisis in the U.S. economy was a significant long-term decline in the rate of profit from the 1950s to the 1970s. Capitalists responded to this profitability crisis by attempting to restore their rate of profit by a variety of strategies, including: wages and benefit cuts, inflation, “speed-up” on the job, and globalization. These strategies have largely restored the rate of profit, but have resulted in stagnant real wages for workers for decades. As a result, household indebtedness has increased to unprecedented levels and must be substantially reduced in order to make possible a sustainable recovery. [ABSTRACT FROM PUBLISHER]
- Subjects :
- *FINANCIAL crises
*CORPORATE profits
*PROFIT
*CAPITALISM
*ECONOMIC recovery
*WAGES
Subjects
Details
- Language :
- English
- ISSN :
- 04866134
- Volume :
- 45
- Issue :
- 4
- Database :
- Academic Search Index
- Journal :
- Review of Radical Political Economics
- Publication Type :
- Academic Journal
- Accession number :
- 91621168
- Full Text :
- https://doi.org/10.1177/0486613412475187