[lbo-talk] Subprime crisis - overaccumulation?

Patrick Bond pbond at mail.ngo.za
Wed Jan 16 07:20:10 PST 2008


James Heartfield wrote:
>> James, that's quite original.
>>
>
> But what Marx says is quite clear:
> "From time to time the conflict of antagonistic agencies finds vent in
> crises. The crises are always but momentary and forcible solutions of the
> existing contradictions. They are violent eruptions which for a time restore
> the disturbed equilibrium." Capital, Vol. III, L&W, p 249 (or
> http://www.marxists.org/archive/marx/works/1894-c3/ch15.htm)
>
>

Darn, you got me there! Ok, I admit, it's been a while - Harvey's Reading K class in 1985 - since I've gone over that passage.


> Crisis is a * momentary* (not forty-years long), violent eruption.

Just ponder, however, that this was written pre-Keynes. What if crises are now longer-term processes that have much more sophisticated elite management and partial-devalorisation and displacement techniques than in the late 19th century. Then James, you don't want to be caught in a description that is so time-bound, do you? That's why I think Robert Cox's is a much more useful approach.


> I think
> the terminological difference here is that Patrick is using the concepts
> 'crisis' and 'law of motion' interchangeably
No, the 'laws of motion' are about accumulation dynamics that are untenable over time; and they give rise to crises. One is cause the other effect.


> (the coinage 'crisis
> formation' rather blurs the difference). But the Capitalist law of motion,
> or law of accumulation, is the constant, and the crisis, is a specific
> manifestation of the underlying law of motion, evidence of
> 'overaccumulation'.

Agreed.
> It is wrong, incidentally, to think that the only thing
> that Capitalism does is tend towards crisis. It also expands the productive
> base.

Of course, up to a point.


> ... The British
> economy did grow for fifty consecutive quarters over that period, so if your
> conceptual apparatus cannot account for that, you should fix it.
>

But that's my point; you took only the growth period, so it's a bogus basis of apples/oranges to other periods which also include recessions. Ah never mind.


> I did explain to you what had happened, you just could not hear me. The
> forcible resolution of the crisis in the 1980s was at the expense of the
> working class.
That's just one of several causal processes, you know. I don't like going in that direction with my analysis for a few reasons I'll get into another day when there's more time.


> The subprime crisis is indeed serious, but it is most certainly not the
> manifestation of a crisis of overaccumulation, for the simple reason that
> the Western economies have not experienced overaccumulation - on the
> contrary, Europe in particular continues to experience historically low
> rates of business investment,

But *because* of sustained overaccumulation at the world scale... Ok?! Nah I know you won't believe it until I come up with stats. (Somebody give me a sabbatical and a quiet country to live in.)

Ciao, Patrick



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