1 / 31

HOW TO SOLVE THE CRISIS?

HOW TO SOLVE THE CRISIS?. Dr. Zoltan Pogatsa. V or W shaped ?. L-shaped : Corporate capitalism Corporate party financing State capture Unsustainable corporate , household and state finances Crisis. Rate of profit. Marx: falling Reality : growing

shaina
Download Presentation

HOW TO SOLVE THE CRISIS?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa

  2. V or W shaped? L-shaped: • Corporatecapitalism • Corporatepartyfinancing • Statecapture • Unsustainablecorporate, household and statefinances • Crisis

  3. Rate of profit Marx: falling Reality: growing Question: WHO WILL BUY THE PRODUCTS?

  4. Answers • Mediatisedconsumerism • Borrowingfromthefuture (debt) • Riddingthestate of resources (taxcuts, offshore) • Geographicalexpansion (CEE, China, BRICS) • Environmentaldegradation • War

  5. Mediatisedconsumerism

  6. RIDDING THE STATE OF RESOURCES

  7. EVER SMALLER STATE Becauseit is „toolarge”

  8. Financial deregulation(Johnson & Kwak „13 Bankers”)

  9. Banking compensation

  10. Securitization

  11. Offshore (Shaxton: Treasure Island) TaxJustice Network Financial Secrecy Index: • US • Luxemburg • Switzerland • CaymanIslands • UK • Rich individualsin offshore: a completeyearly US GDP • Corporations: Vodafone, Google, Enron, Wizzair, CBA….

  12. War

  13. Sovereignindebtedness

  14. Householdindebtedness

  15. Geographicalexpansion • CEE, BRIC, etc. • New consumersforcorporations • Cheaplabouroffshoringforcorporations

  16. ENVIRONMENTAL DEGRADATION

  17. Responsesso far • Anticyclicalfiscalexpansion • Monetaryeasying (QE1&2, ECB) • Austerity (Stiglitz, Soros, etc.) • No regulation • No sustainability

  18. Whydon’tpoliticiansact? Finance Chris Dodd, Chair of Senate Banking Committereceived $2.9mn fromsecuritiesindustryin 2007-2009, more thanthreetimesanysenatorwhowasnot a presidentialcandidate. („13 Bankers”) Defense Lockheed Martin is thebiggestcampaignsponsor of BuckMcKeon (chair, Congress Military ForcesCommitee) and Daniel Inouye (chair, Senate Military ProcurementCommitte).(Hartung „Prophets of War”) Offshore Lord Ashcroft, Chairman of UK ConservativeParty is a taxcitizen of Belize. Revolvingdoor Robert Rubin (Goldman>Glass-Stegall>Citi), Dick Cheney (Halliburton)

  19. Howtosolvethecrisis? Cutthe nexus betweencorporations and government.

  20. GREECE

  21. Greekstatenotbig!

  22. Revenuesideproblem!

  23. Greece • 3-5% of GDP in Offshore (mainlyCyprus) • Military expenditure: EU countriessold €1bn worth of military toGreecein 2010 • Wouldneed 6-8% growthtoget out of sovereigndebttrap • Willnothappenwith 5th wave of austerity

  24. Cheaplendingin€uro

  25. €urozonenot an optimalcurrencyarea

  26. Not a productivityissue!

  27. But a wageissue!

  28. Germanybenefittedfrom€z

  29. Greece had deindustrialisedin free trade

  30. THANK YOU! pogatsa@gmail.com

More Related