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CapitalismEssaysTheory & Practice

Has Capitalism Seen Its Day?

There is a widespread sense today that capitalism is in critical condition, and more so than ever since the end of the Second World War. Looking back, the crash of 2008 was only the latest in a long sequence of political and economic disorders that began with the end of postwar prosperity in the mid-1970s. Successive crises turned out to be ever more severe, spreading more widely and rapidly through an increasingly interconnected global economy. Global inflation in the 1970s was followed by rising public debt in the 1980s, and fiscal consolidation in the 1990s was accompanied by a steep increase in private sector indebtedness (Streeck 2011; 2013a). For four decades now, disequilibrium has more or less been the normal condition of OECD capitalism, both at the national and the global levels. In fact, with time, the crises of postwar capitalism have become so pervasive that they are increasingly perceived as more than just economic in nature, in a rediscovery of the older notion of a capitalist society: …

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CapitalismEssays

The Politics of Public Debt

Neoliberalism, capitalist development, and the restructuring of the state

This is the text of the Heuss Lecture (with audio of the Q & A below), delivered as part of the General Seminar series in the Wolff Conference Room of The New School for Social Research at 6 E. 16th. St. in New York on December 11, 2013. 

From the 1970s on public debt increased more or less steadily in most, if not all, OECD countries, as it never had in peacetime. The rapid rise in public indebtedness was a general, not a national phenomenon, although in some countries, especially ones with low levels of inflation like West Germany, it began earlier than in others (Streeck 2011). In this essay I will emphasize the cross-national commonalities rather than the national specifics of the transformation of the “tax state” (Schumpeter 1991 [1918]) into a debt state and from there, at present, a consolidation state.[1] My argument focuses on the family of countries that adopted a regime of democratic capitalism, or capitalist democracy, after the Second World War, …

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