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“Going back to the theories of imperialism a century earlier, that overaccumulation is the source of all capitalist crises, the crisis that erupted in 2007 was not caused by a profit squeeze or collapse in investment due to overaccumulation. In the US in particular, profits and investment has recovered since the early 1980s… Indeed investment was growing significantly in the two years before the onset of the crisis, profits were at a peak and capacity utilisation in industry had just moved above the historic average… it was only after the financial meltdown in 2007-8 that profits and investment declined.” Gindin and Panitch
But the Gindin/Panitch account quoted above of the years before the credit crunch of 2007 and the Great Recession of 2008-9 just does not correspond with the facts. Yes, investment did not start to fall until 2008 BUT by then US corporate profits had been falling some two years and investment dropped as a result followed by GDP. And in the recovery, again it was profits that led investment and GDP up.
http://thenextrecession.wordpress.com/2014/03/19/sam-gindin-and-the-cause-of-every-crisis-is-different/ ________________________________________________ Send list submissions to: Marxism@greenhouse.economics.utah.edu Set your options at: http://greenhouse.economics.utah.edu/mailman/options/marxism/archive%40mail-archive.com
