{"resolved":true,"match_type":"uuid","source_type":"original_book","book_id":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","title":"Zombie Capitalism Global Crisis and the Relevance of Marx","author":null,"edition":null,"publisher":null,"year":null,"isbn":"9781608461042","requested_by":"printed_page","book":{"source_type":"original_book","book_id":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","id":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","uuid":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","title":"Zombie Capitalism Global Crisis and the Relevance of Marx","normalized_title":"zombiecapitalismglobalcrisisandtherelevanceofmarx","author":null,"edition":null,"publisher":null,"year":null,"isbn":"9781608461042","isbns":["9781608461042"],"parsed":true,"ai_readable":true,"document_type":"book","page_count":426,"navigation_url":"https://workshop.closeclaw.top/ai/book/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","title_url":"https://workshop.closeclaw.top/ai/title/Zombie%20Capitalism%20Global%20Crisis%20and%20the%20Relevance%20of%20Marx","fixed_page_url_template":"https://workshop.closeclaw.top/ai/book/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/page/{printed_page}","path_api_url_template":"https://workshop.closeclaw.top/api/ai/book/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/page/{printed_page}","read_url":"https://workshop.closeclaw.top/api/ai/read/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","page_url":"https://workshop.closeclaw.top/api/ai/books/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/page","search_url":"https://workshop.closeclaw.top/api/ai/books/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/search"},"page":{"printed_page":191,"pdf_page":191,"physical_index":191,"physical_index_base":0,"printed_page_status":"recognized","page_sha256":"1c3155fea9b94aa7a54fb45ecb363f4ed31c2334a898ae18d926345b96fb0784"},"chapter":"Zombie Capitalism Global Crisis and the Relevance of Marx","content":"CHAPTER EIGHT\n\nThe End of the Golden Age\n\nThe crisis of Keynesianism\n\n\"The National Bureau of Economic Research has worked itself out of one of its first jobs, namely business cycles.\" So proclaimed Paul Samuelson in 1 970. Less than three years later the crisis which was supposed now to be impossible broke upon the world-or at least upon the advanced capitalist countries and a big part of the Third World. The \"golden age\" had come to a sudden end.\n\nThe reaction of governments everywhere was to try to keep it going by resorting to the Keynesian methods they had come to believe infallible. Government budget deficits, rare in the previous three decades, now became the norm. They failed to restore the system to its previous health. Not only was there the first lapse into negative growth-a real recession as opposed to the \"growth recessions\" sometimes known previously-with soaring levels of unemployment, but it was accompanied by rising levels of inflation, which in a country like Britain could approach 25 percent.\n\nThere were attempts to explain what happened as a result of the impact of the sudden very big increase in the price of oil in October 1973 due to the brief \"Yorn Kippur\" war between Israel and the Arab states and the accompanying embargo on oil exports by Saudi Arabia. But the effect of the price increase was only to reduce the national incomes of the advanced countries by about one percent-and most of the money that accrued to the oil producers ended up being recycled back to the advanced countries via the international banking system. It was hardly enough in itself to explain the scale of the impact on most of the world system-an impact which Keynesian methods should have been sufficient to deal with according to the then conventional economic wisdom. What is more, the oil price increase did not take place in isolation from other developments. Already three years earlier a \"growth recession\" had hit all the major economies simultaneously in a way which had not happened in the previous quarter century, and had been followed by a very sharp economic upturn and accelerating inflation even before the oil price rise. 1 In short, the recession that began at the end of 1973 was the culmination of precisely the sort of economic cycle that Keynesian-style state interventions had supposedly consigned to the history books.\n\n191","previous_page":190,"next_page":192}