The Enigma of Capital

And the Crises of Capitalism

Bibliographic Data

ID13836668
AuthorsDavid Harvey (0000-0003-3703-7336, corresponding author)
Year2011
Volume40
Issue3
Pages366-367
Publication date2011-04-22
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueContemporary Sociology A Journal of Reviews (JOURNAL)
Journal identifiersISSN: 0094-3061 • E-ISSN: 1939-8638
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.1177/0094306110404516g
OpenAlexW1502624808
LanguageEN
Citations received580

Since the moment the deeply unsettling financial disaster erupted in September 2008, a crisis of confidence has gripped the economic mind. Experts of all stripes, from Alan Greenspan on down, were at a loss to explain what had happened. David Harvey saw this moment coming. A legendary scholar and critic of capitalism, he has been warning of problems for decades. Now, in The Enigma of Capital, Harvey provides a sweeping and brilliantly clear explanation of how the disaster happened, and how we can avoid another like it. Unlike other commentators, Harvey does not focus on subprime loans or mortgage securitization as the root cause of the calamity. Instead, he looks at something that reaches far deeper into the heart of capitalism--the flow of money through society. He shows how falling profit margins in the 1970s generated a deep transformation. With government assistance, capital was freed to flow across borders, and production moved to cheaper labor markets, depressing workers' incomes in the West. But as more and more money moved out of the laboring classes and into the pockets of the wealthy, a problem arose--how could the workers afford to buy the products which fueled the now-global economy? To solve this problem, a new kind of finance capitalism arose, pouring rivers of credit to increasingly strapped consumers. Moreover, these financial institutions loaned money to both real-estate developers as well as home buyers--in effect, controlling both the supply and demand for housing. But when the real-estate market collapsed, so did this financial edifice, an edifice that dominated our economy. We cannot afford to simply shore up this financial system, Harvey writes; we need to undertake a radical overhaul. With this landmark account, he offers a richly informed discussion of how we can turn our economy in a new direction--fairer, healthier, more just, and truly sustainable"--Publisher's description

Ancient history · Capital (architecture · Capitalism · Economics · Keynesian economics · Neoclassical economics · Political economy · Political science · Economic Theory and Policy · History · Law

Tools

Open DOISci-Hub