Capitalism and Its Current Crisis

Prabhat Patnaik
Monthly Review

This article is part of a series Middle-East-4-Change is highlighting that look at the economic impact of imperialist globlisation on peripheral countries

The “thirty-year crisis” of capitalism, which encompassed two world wars and the Great Depression, was followed by a period that some economists call the Golden Age of capitalism. Today, however, capitalism is once again enmeshed in a crisis that portends far-reaching consequences. I am not referring here to the mere phenomenon of the generally slower average growth that has marked the system since the mid-1970s. Rather, I am talking specifically of the crisis that started with the collapse of the U.S. housing bubble in 2007-8 and which, far from abating, is only becoming more pronounced.

The Western media often give the impression that the capitalist world is slowly emerging from this crisis. Since the Eurozone continues to be mired in stagnation, this impression derives entirely from the experience of the United States, where there has been talk of raising the interest rate on the grounds that the crisis is over, and inflation is now the new threat. There are, however, two points about the U.S. “recovery” that need to be noted.

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