Rather than fall into the abyss that is free-market rhetoric we should realize that capitalism as a historical formation is much different than the 'free-market' fantasy of theoreticians - Hayek and Freidman, amongst others. Rather than an ahistorical model we should notice that the historical formation of capitalism constitutes and enacts ever higher levels of planning (such examples are the federal reserve, IMF, WTO, WB, and so on) in an attempt to regulate accumulation and prevent future crisis, which of course is inevitable since crisis is organic to capitalism as a social relation premised on antagonism.
That the economic crisis we are currently living in would usher in ever higher levels of planning of accumulation was only a matter of time.
And today, "in a speech before the Council on Foreign Relations in Washington, Mr. Bernanke said the financial system needed to be regulated “as a whole, in a holistic way” and that stricter oversight of banks would not be enough to guard against future crises." (link)
"Mr. Bernanke also called for the creation of an authority to monitor and oversee broad, systemic risks" and "He said the United States could take a “macroprudential” approach — surveying the breadth of markets and financial institutions for signs of bubbles, growing risks like the subprime mortgage market, or risks shared by interconnected markets. Congress could empower a government agency like the Fed to take on that task."
Capitalism is not a free market, it requires massive planning in order to create adequate conditions for growth, which means that capitalism is not anti-state nor does it require the night-watchman state, another myth. Capital requires an active interventionist state to maintain accumulation. And what we see now is an inclusion of neo-keynesian principles demanding greater regulation of markets and financial institutions to ensure a smooth regime of accumulation, since the myth of free markets has once again fallen on its face.
That the economic crisis we are currently living in would usher in ever higher levels of planning of accumulation was only a matter of time.
And today, "in a speech before the Council on Foreign Relations in Washington, Mr. Bernanke said the financial system needed to be regulated “as a whole, in a holistic way” and that stricter oversight of banks would not be enough to guard against future crises." (link)
"Mr. Bernanke also called for the creation of an authority to monitor and oversee broad, systemic risks" and "He said the United States could take a “macroprudential” approach — surveying the breadth of markets and financial institutions for signs of bubbles, growing risks like the subprime mortgage market, or risks shared by interconnected markets. Congress could empower a government agency like the Fed to take on that task."
Capitalism is not a free market, it requires massive planning in order to create adequate conditions for growth, which means that capitalism is not anti-state nor does it require the night-watchman state, another myth. Capital requires an active interventionist state to maintain accumulation. And what we see now is an inclusion of neo-keynesian principles demanding greater regulation of markets and financial institutions to ensure a smooth regime of accumulation, since the myth of free markets has once again fallen on its face.
2 comments:
Like your stuff, even if it is a bit over my head, some of those terms. What is your definition of capitalism? Thanks, and keep posting!
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