The Financial and Economic Crisis of 2008: A Systemic Crisis of Neoliberal Capitalism

First Published May 4, 2009 Research Article

Authors

Economics, University of Massachusetts Amherst, Amherst, MA 01003-9277, [email protected]
by this author
First Published Online: May 4, 2009

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.
Google Scholar
Baker, D. 2007. Midsummer meltdown: Prospects for the stock and housing markets. Center for Economic and Policy Research , www.cepr.net, August.
Google Scholar
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.
Google Scholar
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.
Google Scholar
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.
Google Scholar
Economic Report of the President. Various years. Washington, DC: U.S. Government Printing Office.
Google Scholar
Federal Reserve System. 2008. Flow of funds accounts. Data from website www.federalreserve.gov/ . Data downloaded on various dates in November and December.
Google Scholar
Gordon, D.M. , R. Edwards , and M. Reich. 1982. Segmented work, divided workers. Cambridge: Cambridge University Press .
Google Scholar
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 .
Google Scholar
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.
Google Scholar
____________. 2008. Contradictions of economic growth in the neoliberal era: Accumulation and crisis in the contemporary U.S. economy. Review of Radical Political Economics 40 (2) (Spring): 174-188.
Google Scholar | SAGE Journals
____________. 2003. Neoliberalism and the U.S. economic expansion of the 1990s . Monthly Review 54 (3) (April): 15-33.
Google Scholar
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.
Google Scholar
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.
Google Scholar | Crossref
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.
Google Scholar
Office of Federal Housing Enterprise Oversight. 2008. Data from website http://www.ofheo.gov/., downloaded Nov. 6.
Google Scholar
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.
Google Scholar
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.
Google Scholar
______________________________. 2001. National income and product accounts. Website www.bea.gov/. Data downloaded August 29.
Google Scholar
U.S. Bureau of Labor Statistics. 2008. Data from website www.bls.gov/. Data downloaded on various dates during November through December.
Google Scholar
U.S. Census Bureau. 2008. Website address http://www.census.gov/. Data downloaded Dec. 8.
Google Scholar
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.
Google Scholar

Access content

To read the fulltext, please use one of the options below to sign in or purchase access.
  • Access Options

    My Account

    Welcome
    You do not have access to this content.

    Chinese Institutions / 中国用户

    Click the button below for the full-text content

    请点击以下获取该全文

    Institutional Access

    does not have access to this content.

    Purchase Content

    24 hours online access to download content

    Research off-campus without worrying about access issues. Find out about Lean Library here


Purchase

RRP-article-ppv for $37.50
Single Issue 24 hour E-access for $263.66

Cookies Notification

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more.
Top