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Structural Contradictions of the Global Neoliberal Regime

Author

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  • James Crotty

    (Economics Department, University of Massachusetts, Amherst MA 01003 crotty@econs.umass.edu)

Abstract

The paper argues that global Neoliberalism creates both chronic sluggish aggregate demand growth and chronic excess aggregate supply, and that these tendencies reinforce one another in a vicious circle. Stagnant global demand has unleashed destructive competition in core global markets, creating low profits, financial fragility, and over investment. Over investment generates the excess industry supply that sustains competitive intensity. The greater the competitive intensity, the greater the pressure on firms to cut wages and employment, and lobby for less generous social welfare spending, which further constrains aggregate demand. And so on.

Suggested Citation

  • James Crotty, 2000. "Structural Contradictions of the Global Neoliberal Regime," Review of Radical Political Economics, Union for Radical Political Economics, vol. 32(3), pages 361-368, September.
    • Handle: RePEc:sae:reorpe:v:32:y:2000:i:3:p:361-368
    DOI: 10.1177/048661340003200301
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    References listed on IDEAS

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    1. David R. Howell & Margaret Duncan & Bennett Harrison, 1998. "Low Wages in the US and High Unemployment in Europe: A Critical Assessment of the Conventional Wisdom," SCEPA working paper series. 1998-01, Schwartz Center for Economic Policy Analysis (SCEPA), The New School, revised Aug 1998.
    2. James R. Crotty, 1993. "Rethinking Marxian Investment Theory: Keynes-Minsky Instability, Competitive Regime Shifts and Coerced Investment," Review of Radical Political Economics, Union for Radical Political Economics, vol. 25(1), pages 1-26, March.
    3. Gary Dymski & James Crotty, 2000. "Can the Global Neoliberal Regime Survive Victory in Asia? The Political Economy of the Asian Crisis," Published Studies ps5, Political Economy Research Institute, University of Massachusetts at Amherst.
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    Citations

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    Cited by:

    1. Ozlem Onaran, 2004. "Life After Crisis For Labor And Capital in the Era of Neoliberal Globalization," Working Papers geewp43, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
    2. Phillip Anthony O'Hara, 2003. "Deep Recession and Financial Instability or a New Long Wave of Economic Growth for U.S. Capitalism? A Regulation School Approach," Review of Radical Political Economics, Union for Radical Political Economics, vol. 35(1), pages 18-43, March.
    3. William Van Lear, 2011. "Economic Crisis and the Fiscal Challenge of the State," Challenge, Taylor & Francis Journals, vol. 54(6), pages 61-77.
    4. World Bank, 2008. "Turkey - Country Economic Memorandum : Volume 2. Sustaining High Growth, Selected Issues," World Bank Publications - Reports 8017, The World Bank Group.
    5. James Crotty, 2003. "The Neoliberal Paradox: The Impact of Destructive Product Market Competition and Impatient Finance on Nonfinancial Corporations in the Neoliberal Era," Review of Radical Political Economics, Union for Radical Political Economics, vol. 35(3), pages 271-279, September.
    6. Bor, Özgür, 2013. "Agrarian Transformation: Power And Dominance In Markets," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 1(1), pages 1-12, July.
    7. Ejiogu, Amanze & Ambituuni, Ambisisi & Ejiogu, Chibuzo, 2021. "Accounting for accounting’s role in the neoliberalization processes of social housing in England: A Bourdieusian perspective," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 80(C).
    8. Özgür Orhangazi, 2011. "“Financial” vs. “Real”: An Overview of the Contradictory Role of Finance," Research in Political Economy, in: Revitalizing Marxist Theory for Today's Capitalism, pages 121-148, Emerald Group Publishing Limited.
    9. D. Tripati Rao, 2003. "Managing Economies," Review of Radical Political Economics, Union for Radical Political Economics, vol. 35(1), pages 73-77, March.
    10. Luis Francisco Carvalho & Joao Rodrigues, 2006. "On markets and morality: Revisiting Fred Hirsch," Review of Social Economy, Taylor & Francis Journals, vol. 64(3), pages 331-348.

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