Tag: Arabic

  • The Endless Crisis

    The Endless Crisis

    The Endless Crisis: How Monopoly-Finance Capital Produces Stagnation and Upheaval from the USA to ChinaThe Endless Crisis: How Monopoly-Finance Capital Produces Stagnation and Upheaval from the USA to China,” (coauthored with Robert W. McChesney, Foster listed first, New York: Monthly Review Press, 2012), 227 pp.

    Introduction to book excerpted as “How Monopoly-Finance Capital Leads to Economic Stagnation,” Utne Reader, October 2012.

    Translations:

    • Polish translation, Book and Press/Le Monde Diplomatique Polish Book Series, 2013;
    • German translation (Hamburg: Laika Verlag)
    • Arabic translation by Fuad Nassar Center, Ramallah, Palestine.

    The days of boom and bubble are over, and the time has come to understand the long-term economic reality. Although the Great Recession officially ended in June 2009, hopes for a new phase of rapid economic expansion were quickly dashed. Instead, growth has been slow, unemployment has remained high, wages and benefits have seen little improvement, poverty has increased, and the trend toward more inequality of incomes and wealth has continued. It appears that the Great Recession has given way to a period of long-term anemic growth, which Foster and McChesney aptly term the Great Stagnation.

    This incisive and timely book traces the origins of economic stagnation and explains what it means for a clear understanding of our current situation. The authors point out that increasing monopolization of the economy—when a handful of large firms dominate one or several industries—leads to an over-abundance of capital and too few profitable investment opportunities, with economic stagnation as the result. Absent powerful stimuli to investment, such as historic innovations like the automobile or major government spending, modern capitalist economies have become increasingly dependent on the financial sector to realize profits. And while financialization may have provided a temporary respite from stagnation, it is a solution that cannot last indefinitely, as instability in financial markets over the last half-decade has made clear.

    Reviews:

    The authors carefully develop a powerful case that the normal state of ‘really existing capitalist economies,’ increasingly dominated by multinational megacorporations along with associated financialization, is not growth with occasional recession, but rather stagnation with occasional escapes that have diminishing prospects. Hence an ‘endless crisis,’ endless in both time and space, including China. And a crisis that is heading towards disaster unless there is a radical change of course. This valuable inquiry should be carefully studied and pondered, and should be taken as an incentive to action.

    —Noam Chomsky

    In the distinguished tradition of Paul Baran and Paul Sweezy, Foster and McChesney here combine grim analysis with bleak prognosis, reminding us that monopoly power disappeared from the textbooks but not from real life. This is a useful book for anyone raised on the reflexive American optimism of the post-war years.

    —James K. Galbraith, author, Inequality and Instability: A Study of the World Economy Just Before the Great Crisis

    The Endless Crisis provides a compelling discussion of the central economic reality of our time: that the Wall Street collapse and Great Recession of 2007-09 was a human calamity whose effects are ongoing. Foster and McChesney explore the underlying causes of the crisis as a result of the normal operations of capitalism in its contemporary neoliberal variant. Their discussions on financialization, monopoly power, imperialism, and other topics all provide opportunities for us to think more clearly about what is wrong with the societies we live in and how to advance a transformative political project in behalf of equality and social justice.

    —Robert Pollin, Professor of Economics and Co-Director, Political Economy Research Institute, University of Massachusetts-Amherst

    The Endless Crisis goes beyond being thought-provoking, well-written, and interesting. In many respects it is chilling in its analysis of the evolution of global capitalism and the contours of the global class struggle. This book constitutes a polemic not only with neo-liberal theory but with those who believe that tinkering with the worst aspects of capitalism will resolve the crisis. Foster and McChesney take the reader into the world of the global monopolies and the plutocracies that they have spawned. When you finish this book you cannot but ask the question: ‘When do we get serious about a strategy for the Left to respond to the system of modern day robber-barons that Foster and McChesney so well analyze?’

    —Bill Fletcher, Jr., BlackCommentator.com; author of Solidarity Divided and ‘They’re Bankrupting us’ And Twenty Other Myths about Unions

    The most important book yet to appear on stagnation, the central problem of modern economic reality. Essential reading for serious liberal, heterodox, radical, and all open-minded economic thinkers.

    —Gar Alperovitz, author, America Beyond Capitalism; Lionel R. Bauman Professor of Political Economy, University of Maryland

    John Bellamy Foster and Robert McChesney’s The Endless Crisis very effectively integrates analysis of the development, character, and impact of monopoly-finance capital, which includes the now global and immense reserve army of labor, and with stagnation tendencies harder and harder to overcome. They also demonstrate well the urgency of working class organization on a global basis.

    —Edward S. Herman, professor emeritus of finance, the Wharton School, University of Pennsylvania

    This is a most remarkable and important book. It is political economy at its best. It offers a sophisticated explanation of the socio-economic crisis facing the global and domestic economies. The authors further argue that the socio-economic crisis cannot be resolved without a total transformation away from the oligopolistic capitalistic system. The work of Foster and McChesney can be embraced by all heterodox political economy traditions.

    —Hans G. Despain, Marx & Philosophy Review of Books

    A focused and muscular work that ranks alongside the works of John Kenneth Galbraith, Paul Sweezy, Paul Baran and other great political economists who were unafraid to deliver sobering criticisms of modern capitalism. It is a robustly researched testament to the enduring relevance of Marxist theory in the 21st century.

    —Philip Louro, New Politics

    The Marxist perspective, exemplified in a new book by John Bellamy Foster and Robert McChesney, is also useful. This argues that the strong western growth rates in the middle of the 20th century were something of a mirage . . . The result has been a declining trend rate of growth, and the increased financialisation of western economies as the surpluses have been re-cycled through the banks in a search for yield. Hence the Latin American debt crisis. Hence the sub-prime mortgage crisis. Hence the inability of the global economy to emerge from its torpor.

    —Larry Elliott, the Guardian

    Read a review by Bernard D’Mello of The Endless Crisis in Economic & Political Weekly on MRzine.org

  • Monopoly-Finance Capital and the Paradox of Accumulation

    Monopoly-Finance Capital and the Paradox of Accumulation

    Monopoly-Finance Capital and the Paradox of Accumulation“, (coauthored with Robert W. McChesney, Foster listed first), Monthly Review vol. 61, no. 5 (October 2009), pp. 1-20.  DOI: 10.14452/MR-061-05-2009-09_1

    This month marks the eightieth anniversary of the 1929 Stock Market Crash that precipitated the Great Depression of the 1930s. Ironically, this comes at the very moment that the capitalist system is celebrating having narrowly escaped falling into a similar abyss. The financial crash and the decline in output a year ago, following the collapse of Lehman Brothers, was as steep as at the beginning of the Great Depression. “For a while,” Paul Krugman wrote in the New York Times in August, “key economic indicators — world trade, world industrial production, even stock prices—were falling as fast or faster than they did in 1929-30. But in the 1930s the trend lines kept heading down. This time, the plunge appears to be ending after just one terrible year.” Big government, through the federal bailout and stimulus, as well as the shock-absorber effects of the continued payouts of unemployment and Social Security benefits, Medicare, etc., slowed the descent and helped the economy to level off, albeit at a point well below previous output.

    Reprints:
    • Reprinted in John F. Sitton, ed., Marx Today: Selected Works and Recent Debates (New York: Palgrave-Macmillan, 2010), 185-200.
    Translations:
    • Galician translation by Xosé Díaz Díaz in Terra e Tempo (no. 2, 2010), http://www.terraetempo.net.
    • Arabic translation by Thamer Al-Saffar, Civilized Dialogue, May 24, 2010, http://www.ahewar.org.
    • Chinese transltion in Foreign Theoretical Trends,2010.
    • Turkish translations appears in Kapitalizmin Finansal Krizi, edited by Prof. Dr. Abdullah Ersoy (Ankara, Turkey: Imaj Publishing, 2011), 330pp; and in Monthly Review, Turkish edition, 26 (Istanbul: Kalkedon Publications, March 2011).
    • Bangla translation in Bangla Monthly Review, vol. 2. no. 2 (March 2010). Translation by Farooque Chowdhury.

     

  • The Great Financial Crisis

    The Great Financial Crisis

    The Great Financial CrisisThe Great Financial Crisis: Causes and Consequences,” (coauthored with Fred Magdoff, Foster listed first, New York: Monthly Review Press, 2009), 160 pp.

    Editions:

    • Indian edition (English) published by Cornerstone Books, Kharagpur, 2009.

    Translations:

    • Korean translation from Eulyoo Publishers.
    • Czech language edition published by Grimmus, Czech Republic, 2009.
    • Spanish translation, Fondo De Cultura Económico (Spain), 2009.
    • Bangla translation by Farooque Chowdhury (Dhaka: Shahitya Prakash, 2011).
    • Arabic translation by Ateyyah Kareem Al Zafiri (Afaq Educational Services Company, Kuwait City, Kuwait, 2013).
    • Selected chapters appear in Kapitalizmin Finansal Krizi (Turkish), edited by Prof. Dr. Abdullah Ersoy (Ankara, Turkey: Imaj Publishing, 2011), 330pp.

    The bursting of the housing bubble and the ensuing financial debacle have left most people, including many economists and financial experts asking: Why did this happen? If they had been reading Monthly Review, and were familiar with such articles as “The Household Debt Bubble,” “The Explosion of Debt and Speculation,” and “The Financialization of Capitalism,” they would not have needed to ask. In their new book, The Great Financial Crisis: Causes and Consequences, Monthly Review editor John Bellamy Foster and long-time Monthly Review contributor, Fred Magdoff, update this analysis, exploring the whole course of what is now known as “the worst financial crisis since the Great Depression”: from the debt explosion and housing bubble to the subprime debacle and federal bailout. They argue that this latest financial crash, although greater than any since 1929, is itself a symptom of deeper problems connected to the stagnation of the “real” or productive economy of mature capitalism. Financial bubbles have become the chief means of countering stagnation, but these inevitably burst, bringing the underlying economic problems back to the surface. The only recourse of the system: new and bigger bubbles, leading, as they too pop, to still greater financial crises and worsening conditions of production—in what has now become a vicious cycle.

    With this as their key, Foster and Magdoff are able to examine the complex interconnections associated with rising debt, weakening production and investment, stagnant wages, burgeoning unemployment, rapidly growing class inequality, spiraling global economic instability, and spreading militarism and imperialism. At the center of the story is the latest phase of capitalism, “monopoly-finance capital,” that has generated a giant casino economy and promotes enormously exorbitant, exploitative, and corrupt practices as well as violence abroad—all geared to finding and protecting profitable ways to invest the corporate capital surplus. Meanwhile, the real, pressing needs of most people in the society go unaddressed. The only genuine way out of trap, The Great Financial Crisis argues, is the promotion of those very measures—such as massively expanding socially useful public spending, improving the security of the working class, and democratizing ownership of productive property—that are invariably opposed by the current system of wealth and power. If the legendary Mother Jones was right, and we must educate ourselves for the coming struggle, then this book is today’s most essential reading.

    Reviews:

    …an insightful account of the roots of the crisis.

    —Noam Chomsky, Hopes and Prospects

    With all the charges of ‘socialist’ hurled at Barack Obama from the howling back benches, I decided it was time to find out what some real socialists are saying about the crisis of monopoly capitalism. It’s a short book long on insight.

    —Bill Moyers, on selecting the book for his booklist

    In this timely and thorough analysis of the current financial crisis, Foster and Magdoff explore its roots and the radical changes that might be undertaken in response. . . . This book makes a valuable contribution to the ongoing examination of our current debt crisis, one that deserves our full attention.

    Publishers Weekly

    Those interested in the Marxist perspective should get hold of The Great Financial Crisis. . . . It is a fascinating read.

    —Larry Elliot, economics editor, The Guardian

    Follows Marxist writers Harry Magdoff and Paul Sweezy in arguing that ‘stagnation’ is the normal state of capitalism (or what the present authors term ‘monopoly-finance capital’). To preserve ‘growth,’ finance becomes increasingly decoupled from investment in real things, but in doing so it creates bubbles, and we all know what happens when they are pricked … Foster and Magdoff did call out an imminent collapse of the US “household debt bubble” as far back as spring 2006.

    The Guardian

    I like to hope that some members of the economics profession, some journalists who routinely interpret economics for the general public, and even (could we hope?) some public officials unafraid to think what had previously been the unthinkable (namely that radical leftists have something useful to say about the U.S. economy and economic policy) will take up this book and engage with it. . . . We ignore the arguments of this book and other dissenting economists at our peril.

    —Michael Meeropol, Challenge magazine

    The challenge for the left is to articulate both the temporary nature of capitalism’s fixes and of capitalism itself in accessible terms. This book is a useful weapon for all who strive to do so.

    Morning Star

    Everyone at last knows we are in a great financial crisis. Foster and Magdoff have seen it coming for some time now. If you want a clear and cogent explanation of the reality of our debt crisis and what might be done about it, this is your book.

    —Immanuel Wallerstein, Yale University

    The Great Financial Crisis will be extremely useful for all who are trying to sort out the meaning of the most serious crisis U.S. and global capitalism has faced in eighty years. Few today are able both to make sense of the details of the modern ‘financial architecture’ that turned a predictable burst in the U.S. housing bubble into a full scale financial meltdown, and also to bring an historical perspective stemming from the work of Keynes, Hansen, Steindl, Kalecki, Minsky, Galbraith, and of course Marx, Sweezy, and Harry Magdoff. Because the authors could draw on their own excellent coverage of the lead up to the crisis in the pages of Monthly Review magazine, we have an invaluable book available to us much sooner than would otherwise be possible.

    —Robin Hahnel, Professor of Economics, American University

    Those of us who are dissatisfied with the analyses of the financial-economic meltdown of 2008 that attribute it to easily remediable ‘mistakes’ on the part of financial institutions, regulators, or policy-makers can learn a lot from John Bellamy Foster and Fred Magdoff’s The Great Financial Crisis: Causes and Consequences. Foster and Magdoff follow up the theses of Paul Sweezy, Paul Baran, and Harry Magdoff that diagnose the structural problems of U.S. capitalism in its chronic tendency toward stagnation rooted in inadequate business investment and leading to slow growth, unemployment of labor, and low utilization of capital. This book makes the case that the excesses of financialization and the widening inequality of income distribution are themselves indirect effects of stagnation in the real economy, and explains with sobering clarity why the roots of this crisis may turn out to be deep and difficult to address with conventional policy measures.

    —Duncan K Foley, Leo Model Professor of Economics

    New School for Social Research

    Much of the analysis of the latest economic meltdown has been confined to explanations about the housing bubble and bust. In The Great Financial Crisis, Foster and Magdoff take a broader approach, presenting a rigorous and sorely needed historical and forward-looking perspective of the capitalist system out of control. With intricate detail, Foster and Magdoff contextualize the housing debt and speculative bubble within its rightful place at the core of an accelerated period of the financialization of capital, eloquently arguing why a people-first, or socialistic, approach to this crisis is the most logical way to stabilize the general economy.

    —Nomi Prins, author of Other People’s Money and Jacked

    Harry Magdoff and Paul Sweezy, to whom this book is dedicated, analyzed the financial crisis as inseparable from the tendency to stagnation of monopoly capital. The present book is written in the same spirit and brings their approach fully up to date under the circumstances of ‘monopoly-finance capital.’ It underlines that, whatever might be attempted today, the necessarily recurring crisis is bound to get worse without remedying the causes of stagnation. Thus Foster and Fred Magdoff rightly stress that ‘the answer lies in a truly revolutionary reconstruction of the entire society.’ Their book is a worthy memorial to Harry Magdoff and Paul Sweezy.

    —István Mészáros, author of The Challenge and Burden of Historical Time

    and Beyond Capital

    Foster and Magdoff’s very readable account of the crisis merits close and wide attention. Their analysis of consumer debt burdens is the perfect antidote for everyone who is tired of hearing how ‘we’ went on a consumption binge, and their historically sensitive discussions of the roots of the crisis are fresh and provocative.

    —Thomas Ferguson, University of Massachusetts, Boston

    Author of The Golden Rule: The Investment Theory of Party Competition and the Logic of Money-Driven Political Systems

    John Bellamy Foster and Fred Magdoff’s book on ‘The Great Financial Crisis’ is an excellent example for the usefulness of studying Marx’s works and that of other Marxist political economists, e.g. the writings of Paul M. Sweezy and Harry Magdoff, in order to better grasp the dynamics and contradictions of the financial turmoil and its implications for social conflict. The disastrous contemporary financial crisis cannot be understood as the consequence of a ‘wrong regulation’ of the world of finance. It is an emanation of the ‘real’ accumulation process of financialized monopoly capital.

    —Elmar Altvater, Otto-Suhr-Institute of the Free University of Berlin

    Foster and Magdoff’s new book presents a sharp and stimulating analysis of the historical origins and structural roots of the current financial crisis. The authors argue that the implosion is a logical consequence of the contradictions of monopoly finance capital—contradictions that are reflected in the twin processes of financialization and stagnation that have dominated the development of the U.S. economy in the recent decades. It is an essential read if the mea culpas and post mortems of ‘the experts’ faced suddenly with ‘a fundamental flaw’ in the logic of unregulated markets have left you demanding a more penetrating account of this crisis.

    —Ramaa Vasudevan, Colorado State University

    A must read! Here is an excellent guide to understanding the role debt overload and the stagnation of real economy played in the recent crisis, in the tradition of Sweezy and Magdoff.

    —Michael Perelman, Professor of Economics, California State University at Chico

    Author of Railroading Economics, The Invention of Capitalism

    and The Confiscation of American Prosperity

    The financial crisis of 2007–08, and with more certainly in store for 2009 and beyond, is one of the great calamities of modern neoliberal capitalism. But it should come as no surprise for regular readers of John Bellamy Foster and Fred Magdoff’s writings over the past few years in Monthly Review. In a series of highly accessible and cogent articles, they have consistently explained both the build up to the crisis and its consequences. The Great Financial Crisis brings their ideas together in one place. It is compelling reading for anyone seeking to both understand and change the world we live in today.

    —Robert Pollin, Professor of Economics and Co-Director, Political Economy Research Institute (PERI), University of Massachusetts-Amherst

  • Critique of Intelligent Design

    Critique of Intelligent Design

    Buy at Monthly Review Press

    Critique of Intelligent Design: Materialism versus Creationism from Antiquity to the Present,” (co-authored with Brett Clark and Richard York, Foster listed first, New York: Monthly Review Press, 2008), 240 pp.

    Critique of Intelligent Design is a direct reply to the criticisms of intelligent design proponents and a compelling account of the long debate between materialism and religion in the West. It provides an overview of the contemporary fight concerning nature, science, history, morality, and knowledge. Separate chapters are devoted to the design debate in antiquity, the Enlightenment and natural theology, Marx, Darwin, and Freud, and to current scientific debates over evolution and design. It offers empowering tools to understand and defend critical and scientific reasoning in both the natural and social sciences and society as a whole.

    Reprints:

    • Reprint of chapter 5, “Marx’s Critique of Heaven and Critique of Earth,” Monthly Review, vol. 60, no. 5 (October 2008), pp. 22-42; Chapter 5.
    Translations:
    •  Arabic translations in Civilized Dialogue, issue 2498 (December 17, 2008), http://www.ahewar.org/ and Free Thought, March 3, 2010.
  • The U.S. Imperial Triangle and Military Spending

    The U.S. Imperial Triangle and Military Spending

    The U.S. Imperial Triangle and Military Spending“, (coauthored with Hannah Holleman and Robert W. McChesney, Foster listed first), Monthly Review, vol. 60, no. 5 (October 2008), pp. 1-19. DOI: 10.14452/MR-060-05-2008-09_1

    Note: due to an unfortunate error in the publication of the Turkish edition, in which the bylines of two different articles were confused, the authors are mistakenly listed as Richard York, Brett Clark, and John Bellamy Foster.

    The United States is unique today among major states in the degree of its reliance on military spending, and its determination to stand astride the world, militarily as well as economically. No other country in the post–Second World War world has been so globally destructive or inflicted so many war fatalities. Since 2001, acknowledged U.S. national defense spending has increased by almost 60 percent in real dollar terms to a level in 2007 of $553 billion. This is higher than at any point since the Second World War (though lower than previous decades as a percentage of GDP). Based on such official figures, the United States is reported by the Stockholm International Peace Research Institute (SIPRI) as accounting for 45 percent of world military expenditures. Yet, so gargantuan and labyrinthine are U.S. military expenditures that the above grossly understates their true magnitude, which, as we shall see below, reached $1 trillion in 2007.

    Translations:
    • Bangla translation in Natun Diganta (a Bangla quarterly from Dhaka), July-September 2009.
    • Translated by Farooque Chowdhury. Turkish translation in Monthly Review, Turkish edition (Istanbul: Kalkeodon), no. 22, pp. 7-28.

     

  • Monopoly-Finance Capital

    Monopoly-Finance Capital

    Monopoly-Finance Capital“, Monthly Review, vol. 58, no. 7 (December 2006), pp. 1-14. DOI: 10.14452/MR-058-07-2006-11_1

    The year now ending marks the fortieth anniversary of Paul Baran and Paul Sweezy’s classic work, Monopoly Capital: An Essay on the American Economic and Social Order (Monthly Review Press, 1966). Compared to mainstream economic works of the early to mid-1960s (the most popular and influential of which were John Kenneth Galbraith’s New Industrial State and Milton Friedman’s Capitalism and Freedom), Monopoly Capital stood out not simply in its radicalism but also in its historical specificity. What Baran and Sweezy sought to explain was not capitalism as such, the fundamental account of which was to be found in Marx’s Capital, but rather a particular stage of capitalist development. Their stated goal was nothing less than to provide a brief “essay-sketch” of the monopoly stage of capitalism by examining the interaction of its basic economic tendencies, narrowly conceived, with the historical, political, and social forces that helped to shape and support them.

    Translations:
    • Chinese translation by Research Center on Marxism, Yunnan Normal University, Foreign Theoretical Trends (China), no. 3, 2007.
    • Turkish translation in http://www.sendika.org, October 16, 2008.
    • Arabic translation by Thamer Al-Saffar in Civilized Dialogue 1925, May 24, 2007, http://www.ahewar.org/debat/show.art.asp?aid=97582

     

  • A Warning to Africa

    A Warning to Africa

    A Warning to Africa: The New U.S. Imperial Grand Strategy“, Monthly Review vol. 58, no. 2 (June 2006), pp.1-12. DOI: 10.14452/MR-058-02-2006-06_1

    Imperialism is constant for capitalism. But it passes through various phases as the system evolves. At present the world is experiencing a new age of imperialism marked by a U.S. grand strategy of global domination. One indication of how things have changed is that the U.S. military is now truly global in its operations with permanent bases on every continent, including Africa, where a new scramble for control is taking place focused on oil.

    Reprints:
    • Reprinted in Itinerários (Portugal), 2010. Reprinted in Pambazuka News: World Forum for Social Justice in Africa, www.pambazuka.org published by Fahamu in Oxford, U.K.
    Translations:
    • Chinese translation by Qi Jianjun, Social Sciences Abroad (China), no. 3, 2009.
    • French translation in Mondialisation.ca, March 13, 2007.
    • Arabic translation in Donia-Alwatan (Gaza-Palestine), www.alwatanvoice.com, January 15, 2007.
    • Korean translation in Monthly Review Korean Edition, no. 1 published by Philmac Publishing, Seoul Korea, May 2007, 40-57.
    • Italian version appears at Arianna Editrice.it, March 13, 2007.