This paper presents a case that the financial and economic crisis that began in the United States in 2008 indicates the start of a systemic crisis of neoliberal capitalism. The same institutional features of neoliberal capitalism that promoted a series of long economic expansions over several decades also created long-run trends that have led to a systemic crisis. Major economic restructuring is likely to follow.
AFL-CIO.2007. 2006 trends in CEO pay. Downloaded from website http://www.aflcio.org/corporatewatch/paywatch/pay/index.cfm, July 4, 2007.
2.
Baker, D.2007. Midsummer meltdown: Prospects for the stock and housing markets. Center for Economic and Policy Research , www.cepr.net, August.
3.
Bowles, S., D.M. Gordon, and T.E. Weisskopf.1990. After the wasteland: A democratic economics for the year 2000. Armonk, NY: M. E. Sharpe, Inc.
4.
Crotty, J.2008. Structural causes of the global financial crisis: A critical assessment of the new financial architecture. Political Economy Research Institute Working Paper Series No. 180, http://www.peri.umass.edu/nc/201/, September.
5.
Economic Policy Institute.2007. Share of aggregate family income received by quintile and top 5% of families, 1947-2004. Downloaded from website http://www.epinet.org/ , July 3.
6.
Economic Report of the President.Various years. Washington, DC: U.S. Government Printing Office.
7.
Federal Reserve System.2008. Flow of funds accounts. Data from website www.federalreserve.gov/ . Data downloaded on various dates in November and December.
8.
Gordon, D.M., R. Edwards, and M. Reich.1982. Segmented work, divided workers. Cambridge: Cambridge University Press .
9.
Greenspan, A., and J. Kennedy.2007. Sources and uses of equity extracted from homes.Federal Reserve Board Finance and Economics Discussion Series No. 2007-20. Available at http://www.federalreserve.gov/pubs/feds/2007/200720/200720pap.pdf .
10.
Kotz, D.M.2009. Economic crises and institutional structures: A comparison of regulated and neoliberal capitalism in the U.S. In Heterodox macroeconomics: Keynes, Marx and globalization, ed. J. Goldstein and M. Hillard.Routledge, forthcoming.
11.
____________. 2008. Contradictions of economic growth in the neoliberal era: Accumulation and crisis in the contemporary U.S. economy. Review of Radical Political Economics40 (2) (Spring): 174-188.
12.
____________. 2003. Neoliberalism and the U.S. economic expansion of the 1990s . Monthly Review54 (3) (April): 15-33.
13.
Kotz, D.M., and T. McDonough. 2009. Global neoliberalism and the contemporary social structure of accumulation. In Contemporary capitalism and its crises: Social structure of accumulation theory for the twenty-first century, ed. T. McDonough, M. Reich, and D. M. Kotz.Cambridge: Cambridge University Press, forthcoming.
14.
Kotz, D. M., T. McDonough , and M. Reich, eds. 1994. Social structures of accumulation: The political economy of growth and crisis. Cambridge: Cambridge University Press.
15.
McDonough, T., M. Reich, and D.M. Kotz.2009. Contemporary capitalism and its crises: Social structure of accumulation theory for the twenty-first century. Cambridge: Cambridge University Press , forthcoming.
16.
Office of Federal Housing Enterprise Oversight. 2008. Data from website http://www.ofheo.gov/., downloaded Nov. 6.
17.
Piketty, T., and E. Saez.2007. Income inequality in the United States, 1913-1998. Updated table A3, downloaded from website http://elsa.berkeley.edu/~saez/ on July 18.
18.
U.S. Bureau of Economic Analysis.2008. National income and product accounts. Website www.bea.gov/ . Data downloaded on various dates during November through December.
19.
______________________________. 2001. National income and product accounts. Website www.bea.gov/. Data downloaded August 29.
20.
U.S. Bureau of Labor Statistics. 2008. Data from website www.bls.gov/. Data downloaded on various dates during November through December.
21.
U.S. Census Bureau. 2008. Website address http://www.census.gov/. Data downloaded Dec. 8.
22.
Wolfson, M., and D.M. Kotz.2009. A reconsideration of social structure of accumulation theory. In Contemporary capitalism and its crises: Social structure of accumulation theory for the twenty-first century , ed. T. McDonough, M. Reich, and D. M. Kotz.Cambridge: Cambridge University Press.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
