David Harvey
- Published in print:
- 2011
- Published Online:
- March 2016
- ISBN:
- 9780814772775
- eISBN:
- 9780814723555
- Item type:
- chapter
- Publisher:
- NYU Press
- DOI:
- 10.18574/nyu/9780814772775.003.0005
- Subject:
- Sociology, Economic Sociology
This chapter situates the current crisis in relation to both capitalism and the era of neoliberalism and finance capitalism, stressing in particular how an era obsessed with managing risks failed to ...
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This chapter situates the current crisis in relation to both capitalism and the era of neoliberalism and finance capitalism, stressing in particular how an era obsessed with managing risks failed to come to terms with “systemic risk.” Figuring prominently in this is the question of what would happen to a highly leveraged financial system if liquidity dried up. In order to make deeper sense of it, the chapter argues that the internal contradictions of capital accumulation should be addressed. Capitalism works in part by repeatedly challenging, transcending, or working around limits, barriers to growth. It suffers temporary crises and regains momentum as limits are overcome. As such, there is potential for a renewed capitalist momentum with China in the forefront, but there is also the possibility of trying to create a new and different kind of economy more directly focused on meeting human needs.Less
This chapter situates the current crisis in relation to both capitalism and the era of neoliberalism and finance capitalism, stressing in particular how an era obsessed with managing risks failed to come to terms with “systemic risk.” Figuring prominently in this is the question of what would happen to a highly leveraged financial system if liquidity dried up. In order to make deeper sense of it, the chapter argues that the internal contradictions of capital accumulation should be addressed. Capitalism works in part by repeatedly challenging, transcending, or working around limits, barriers to growth. It suffers temporary crises and regains momentum as limits are overcome. As such, there is potential for a renewed capitalist momentum with China in the forefront, but there is also the possibility of trying to create a new and different kind of economy more directly focused on meeting human needs.
