In Defense of Washington and Wall Street

by Robert Fitch
  1. John Plender,"Capitalism in Convulsion," Financial Times, September 18, 2008.
  2. Thomas Atkins, "Depression overshadows G20 summit," Reuters, November 10, 2008.
  3. See for example Joseph Stiglitz.
  4. 4See Capital, III, 251-2 for Marx's definition of "absolute overproduction" and its cause.
  5. A core notion of Mussolini and various fascist intellectuals like Corradini, re-cycled by Mao and filtering down to the Third Worldist Left in the 70's.
  6. em>The Populist Persuasion, (New York: Basic Books, 1995). 273.
  7. A self-referential term used by such as The Brookings Institution, the Democratic Leadership Council and Colin Powell.
  8. BBC, "Marx popular amid credit crunch," Oct. 20, 2008.
  9. Michael Bleaney, Underconsumption Theories (New York: International Publishers, 1976), esp. ch.6.
  10. "Future Results of British Rule in India," Portable Marx, 337; see also Capital, III, 333-334.
  11. Mainstream economics -- particularly "supply side" economics which flourished during the Long Boom -- was able to grasp #1 but not #2. While acknowledging problem of inequality, they maintained that people were still better off than before; And insisted that true system-shattering crises were impossible. Economists influential on the American Left rejected both #1, and #2. They saw capitalism sunk in protracted stagnation; and argued, just like the Russian 19th century populists that the only way to develop productive forces in third world was some form of de-linkage.
  12. Capital, Vol III (Moscow: Progress Publishers, 1966), p.490.
  13. Vol. III, Ch.27, p. 441.
  14. A point made by an anonymous blogger who insists that Marx is obsolete because he fails to realize that the crisis really is caused by machinations of the financial sector.
  15. Ben S. Bernanke, "Remarks on the economic outlook," At the International Monetary Conference, Barcelona, Spain (via satellite), June 3, 2008.
  16. A genuine boom, marked by unprecedented growth in productivity, and not a super-bubble, as George Soros argues. See The New Paradigm for Financial Markets (New York: Public Affairs, 2008) esp. ch.5 "The Super-Bubble Hypothesis"
  17. Judith Bannister, "Manufacturing Employment in China," BLS, Monthly Review, July, 2005.
  18. BLS, "Earnings."
  19. RIETI, "Benchmarking Industrial Competitiveness by International Comparison of Productivity," Dec. 26, 2006.
  20. Judith Banister, "Manufacturing Earnings and compensation in China," BLS Monthly Labor Review, November 2005.
  21. BEA, Gross Domestic Product by Industry Accounts, 1947-2007. Between 1983 and 2007 financial profits rose from 17 percent to nearly 40 percent of all corporate profits ERP, Table B-91, 2008.
  22. Christopher Whalen, "Expanding Fed's Power is Wrong Plan," American Banker, April 4, 2008.
  23. The Subprime Solution, 49.
  24. Don Lee, "A Home Boom Busts," Los Angeles Times, Jan. 8, 2006.
  25. "Alt -A" stands for Alternative A. It's a euphemism for mortgages slightly less dodgy than sub-prime mortgages. See here.
  26. Niall Fergusson, The House of Rothschild 1849- 1999. 465.
  27. credits FIRE with approximately $2.76 in lobbying expenditures between 1996 and 2008.
  28. Roger Lowenstein, When Genius Failed, (New York: Random House, 2000), 187.
  29. Ben S. Bernanke, "Financial Regulation and Financial Stability, July 8, 2008.
  30. For savings glut thesis see here. For the liquidity glut view see StanleyRoach.
  31. Martin Wolf, "Villains and victims of global capital flows," Financial Times June 12 2007.
  32. In Marxian terminology, the ratio of surplus value(s) over variable capital (v) or s/v., which is also the ratio of paid to unpaid labor.
  33. Vol. III, ch. 30, p. 491.
  34. Vol III, ch.30. p. 490.
  35. New York Daily Tribune, July 14, 1853, cited in Lezek Kolakowski, Main Currents of Marxism (New York: W.W.Norton, 2005), 248.