The Crisis of Capitalism in Europe, West and East

There are three dimensions to the current, unprecedented global crisis of capitalism: economic, ecological, and political.... Let us look first at the economic dimension, which will be our main concern in this article. Capitalism is facing a major realization crisis—an inability to sell the output produced, i.e., to realize, in the form of profits, the surplus value extracted from workers' labor. Neoliberalism can be viewed as an attempt initially to solve the stagflation crisis of the 1970s by abandoning the "Keynesian consensus" of the "golden age" of capitalism (relatively high social welfare spending, strong unions, and labor-management cooperation), via an attack on labor. It succeeded, in that profit rates eventually recovered in the major capitalist economies by the 1990sThis article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website

Capitalism · Economic growth · Economics · Economy · Financial crisis · Keynesian economics · Market economy · Neoclassical economics · Neoliberalism (international relations) · Political economy · Political science · Politics · Profit (economics) · Rate of profit · Stagflation · Surplus value · Unemployment · Value (mathematics) · Welfare · Housing, Finance, and Neoliberalism · Law · Political and Economic history of UK and US · Political Economy and Marxism

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  Open Access•Mahito Hayashi•Environment and Planning A…•2014

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