Crisis and Contradiction in the World Economy

The current economic crisis has been the deepest in world capitalism since the 1930s, a fact now acknowledged by scores of mainstream commentators. This article provide an overview of the extent of the crisis by reference to data on trade, output, the stock markets, job losses and unemployment, maki...

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Bibliographic Details
Published in:Journal of Australian political economy 2009 (64), p.37-64
Main Author: Bramble, Tom
Format: Article
Language:English
Subjects:
Capitalism
Debts, Public
Economic aspects
Economic development
Economic history
Financial markets
Gross domestic product
Japan
Unemployment
Western Europe
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Summary:The current economic crisis has been the deepest in world capitalism since the 1930s, a fact now acknowledged by scores of mainstream commentators. This article provide an overview of the extent of the crisis by reference to data on trade, output, the stock markets, job losses and unemployment, making comparisons both with the Great Depression and other post-1945 recessions. It also considers the evidence for a bottoming-out in the economic freefall in the second quarter of 2009, as well as the reasons for it. The bulk of the article, however, is devoted to an examination of structural contradictions that persist in the world economy and which have either been exacerbated by the measures taken to halt the freefall or which have only temporarily been ameliorated. These factors include the accumulation of vast financial sector debt that has not been seriously tackled nor its dimensions understood, endemic excess capacity in the world economy, unsustainable public debt and stimulus packages, and a series of contradictions in the Chinese economy. The article concludes with an assessment of the prospects for the world economy.
ISSN:0156-5826