Zombie Capitalism Global Crisis and the Relevance of Marx

factories in Germany during Second World War 269; closure of Dagenham Assembly plant 259

Ford, Henry 35

"Fordism", theory of 164; critique of 164

Foreign Direct Investment, destinations 183; stocks, concentrated in developed countries 263; shares of different state 263; flows 1982-2006, growth of stock 1950-2007 255; not mainly on new productive capacity 261; low proportion of total US investment in recent decades 260

Formal employment 339

Former USSR, growth in 1990s 225

Forrester, Viviane quoted 258

Foster, John Bellamy 81; on peak oil 318

Fragmentation among slum dwellers 344-5

France, fall in industrial production in slump 143; economic output 1940s to 1970s 161; during long boom 170; cuts in public expenditure 240; imperialism in Africa after decolonisation 1 85; conflicting interests with US in Africa and Middle East 274

Frankenstein's monster 85

Free labour, partial negation of 175

"Freeing" of labour 40

Freeman, Alan, on unproductive labour 127

Freeman, Richard, figures on global workforce, critique of 390

Friedman, Milton 300; popularity of ideas after crisis of mid 1970s 192; denounced as Keynesian 194

Fukuyama, Francis, and "end to history" 258

GS meeting in Rostock 2007 309

Galbraith, John Kenneth 202; on planning during long boom 168-9

Garcia, Miguel Angel 49

General Electric, reliance of finance for profits 284-5

General Motors, and financial profits 284; in crisis in 2009 290

General Theory of Employment,

Interest and Money (John Maynard Keynes) 149

George Bush senior, on New World Order 258

Georgian attack on Ossetia, 2008, 319; role of US 274

German capitalism, economic growth and profits in 1990s and early 2000s 240

German Ideology (Marx and Engels) quoted 81

German unification, economic efects 239

Germany, industrial output in 1920s 144; beginning of crisis in 1 928 148; fall in industrial production 1929- 33 143; economic recovery of mid and late 1 930s 155; seizure of western Poland 156; state planning during two world wars 1 15; West Germany during long boom 164, 170; economic output 1947-70 161; increase in share of global output 198; unemployment 1957, 1960 172; East Germany, crisis of 1953 179; unification, economic effects 239, and Croatian Independence 270; Social Democrat-Green government 240; fall in real wages 240; world's biggest exporter 239

Ghana 185

Giddens, Anthony 325

Gillman, Joseph 146

Global character of capital's destructiveness in 21st century 316

Global crisis, national solutions to in 1930s and today 302-3

Global Gamble, The (Peter Gowan) 293

Global South 18, 91; in long boom 182-201; state capitalism and economic growth 1 90; economic growth, unevenness of 189; and end of long boom 217-225; impact of collapse of Keynesian and Stalinisteconomic models 217-8; terms of trade 218; negotiations with multinationals 222; debt 223; inability of poor countries to attract investment 222 see also Third World, Emerging markets

"Globalisation" 258, 260, 261, 264, 266, 267, 277, 281, 298, 301, 325,

410

Index

351, 378, 382; realities and myths, 257-262

Glyn, Andrew 71; (with Sutcliffe) on wages as cause of declining profits 197; on financial crises 280

GM crops, no solution to global food problem 322

"Golden Age of capitalism" 161, 172, 182,191, 195, 224, 232, 290, 296, 304; see also Long boom

Goldman, Josef and Korba, Karel, quoted 177

Gorbachev, Mikhail 209; on stagnation in Soviet economy 202-3

Government controls on monetary flows across borders, abandoned285

Government expenditure, and class struggle 175

Gowan, Peter, on clashes between finance and productive capital 293

Gramsci, Antonio, on state as "centaur" 1 1 1

Great Depression of 1870s and 1880s 88; and imperialism 97

Great Depression of the 1930s 9; see also Slump of 1930s

Great Leap Forward 188

Greece 218

Green revolution, and increased food output 321; benefits becoming exhausted 321-2

Greenhouse gases 308

Greenspan, Alan, before US Congress 8; on "permanence" of economic expansion in 1990s 229; and new paradigm 229

Greenwash, not sufficient explanation for slow action over climate change 310

Grossman, Henryk, 204; and theory of breakdown based on rate of profit 77-78; criticism of Rosa Luxemburg, Bauer and Bukharin 1 01; theory connecting imperialism and rate of profit 101-2; destruction of values through war 131; interpretation of Marx's theory 152

Grundrisse (Marx) 129

Guano 82

Gulf states 183

Index

Gunder Frank, Andre 190; denies being a Marxist 186; version of dependency theory 187

Haber-Bosch process 82

Hamilton, Clive, debate with George Monbiot 311

Hamilton, Lee 274

Handloom weavers, livelihoods destroyed by advance of capitalism 40

Hansen, Alvin 144, 146

Hanson, James 309

Hardt, Michael 331, 333; on capitalism not needing imperialism 93 see also Negri, Toni

Harris, Nigel, 1 1 0; on capitalism and peace ${ \mathfrak { s } } _ { 2 } { \mathrm { : } }$ misinterpretation of Bolshevik position 187; "weakening of the drive to war" 258

Harvey, David 1 12; on "class compromise" during long boom 163

Hayashi, Fumio 215

Hayek, Friedrich August von, 149, 300; explanation for slump of 1930s 145, 151; "roundabout processes" and declining profit margins 151; guarded praise for Marx on crises 67; on inadequacies of Bohm-Bawerk's theory of capital 67

Health and education workers, in US 334

Health provision 334; and variable capital 135

Hedge funds, massive growth 284

Hegel, Georg Wilhelm Friedrich 13

Hierarchy of states, cannot be stable 270-71

Hilferding, Rudolf, 165, 279, 298; critique of neoclassical economics $4 4 ;$ analysis of early 20th century capitalism 89-91; and tendency of rate of profit to fall $7 7 ;$ ambiguities in Finance Capital ${ \mathfrak { s o } } ;$ on finance capital and war ${ \mathfrak { s o } } ;$ on division of functions within capitalist class 1 14; minister under Weimar Republic 91 see also Organised capitalism

Himmelweit, Susan 71

Hindu rate of growth 189

411

Hobsbawm, Eric, on falling profit rates in 1 9th century 69

Hobson, J A 292; finance capital and imperialism 92; his alternative to imperialism 184

Hodgson, Geoff 48

Holloway, John, on instant mobility of capital 258

Holy Grail of economics 9, 145

Hong Kong 242

Hong Kong and Shanghai Banking Corporation 255

Hoover, Herbert 144

Horvat, Branko, quoted 178

Howe, Geoffrey, budget of 1979 193

Human capital 128

Hungary, revolution of 1956 207

Husson, Michel 299

Hutton, Will 163; and short-termism 294; on superiority of Japanese model 211

International capitalist class, theory of 268

IMF 230, 231; austerity packages and Asian crisis 242; quoted in favour of growth of Third World debt, 1980 220; IMF/World Bank debt relief programmes 220

Immigration controls, reasons for 173

Imperialism, and end of first Great Depression 97; and export of capital 98; and rate of profit 102; classical theory of 93-99; common criticisms of 96; defence of 96-97; weaknesses in Lenin's theory 97-98; Rosa Luxemburg's theory 99; Imperialism and World Economy (Nicolai Bukharin) 95; and economic development, Lenin's position 1 87; without formal empires184-5

Imperialism, the highest stage of capitalism (V. I. Lenin) 93

Imports, of developed countries from developing countries 263

Import-substitutionist model of development, 218; see also Developmentalist ideology, Dependency theories

Incomes, in late 1920s US 146

India 17; under Nehru, not neocolony 185; economic growth 1950-81 189; per capita growth in 1960s 189; economic stagnation in 1970s 218; economy in 1990s and early 2000s 251-2; rate of accumulation since reforms 251; employment in industrial sector 252; informal employment 339; fall in real wages in organised sector in 1990s 340; pay in organised and unorganised sectors 340; inequality today 251; pavement dwellers and working class 342-3; agricultural output 189; much less important to world system than China today 251

Indonesia 185, 242; crisis of 1997-8
224, 351; anti-Chinese riots in 345

Industrial countries economic growth in 1980s and 1990; against IMF forecasts 224

Industrial capital, relative immobility of 241

Industrial complexes 109, 259

Industrial concentration across national borders 256

Industrial firms turn to finance in 1990s 284

Inflation, in mid 1970s 191; inflation barrier 204; hidden inflation 179, 204

Informal employment, in Latin America, India, China 339

Innovation, technical, and long boom 165

Instability, global 325

Intellectual property rights, and role of state 265

Interdependence between states and capitals 112

Interest rates, raised by Volcker 296; cut by Volcker 297; real in 1990s and early 2000s 297; and interests of finance 287-8; slashed to deal with credit crunch 277

Inter-imperialism rivalries, and Cold War 180, 181, 182

International Energy Agency, and "immanent oil crunch" 318

International Socialism 16

International trade, growth 1950-2007 255

412

Index

Internationalisation of system and crisis of 2008-9 301

International mergers, acquisitions and alliances in 1980s and 1990s 256

Investment flows, concentrated in Triad 263

Industrial countries' investment from 1960s to early 2000 (table) 282

Investment, in US in 1920s 146; global 1960-2000s 232; uneven and spasmodic growth of productive in 1980s, 1990s and early 2000s 282; productive at low level in industrial countries in 2000s 287; inflows into US and military power 273; to stop climate change "not possible" 313; resistance to low energy investments 312

Iran 183; economy under Shah 185; in 1979 351

Iran-Iraq War, role of US in 269

Iraq Study Group 274

Iraq War of 2003 319; rationale for 273; cost of to US 274; refusal of France and Germany to back 274
Irag 185

Iraq 185

Ireland, under Fianna Fail, not neocolony 185

Iron law of wages, rejected by Marx 31
Iron rice bowl 244, 340

Israel, last example of old style colonialism 184; attack on Lebanon, 2006 274; and US imperialism 274, 184

Italian knitwear industry 261

Itoh, Makato, and Lapavitsas, Costas, finance and productive capitalists not two separate groups 298

Japan, during long boom 170-1; industrial output 1940s to 1970s 161; fixed investment 1946-61 171; increase in share of global output during long boom 198; growth through 1980s 211; crisis of 1990s 9, 21 1-217, 325; explanations for crisis of 212; rate of profit 212; investment 216; crisis compared with USSR crisis of late 1980s 217; recovery in mid 2000s based on exports of equipment to China; car firms in the US 256, 261 , 281;

growth of working class 1951-98 333

Jayadev, Arjun 294

Jevons, William Stanley 41; on sunspots and economic crises 56

Jiabao, Wen, quoted on instability of Chinese economy 249

"Just in time" production methods 261

Kahn, Richard 162

Karabakh 208

Karachi, Sunni-Shia and inter-ethnic clashes 345

Kautsky, Karl 82, 292; rejects revisionist argument 89; finance capital, industrial capital and war 91-92; ultra-imperialism 92, 185; on colonialism and control of agrarian parts of world 95; on capitalist nationalisation 1 1 5

Keegan, William, 149; criticises Marx 68; and short-termism 294; on superiority of Japanese model 211

Keynes, John Maynard 10; and underconsumptionist theories of crisis 59; causes of slump 145; crisis of 1 930s 1 50; cautious 162; on rentiers 294; liking for version of labour theory of value 44-5; "Animal spirits" 150; declining marginal efficiency of capital 162; socialisation of investment 162

Keynesian measures, seen as reason for long boom 161; rarely used in long boom 163-4; failure of in late 1970s 200-1, 297; in japan in 1990s 215, 216; limited effect of 217; as national solutions 301

Keynesianism 11; as explanation for long boom, 163-5; problems with 1 95; marginalised after 1 970s 193; crisis of 1 91-3; revival during crisis of 2007-9 300; left wing illusions in 303; and neoliberalism today 303; bastard 1 62; radical 1 1

Kidron, Mike, on a world of state capitalisms 104; on Marx and productive and unproductive labour 127; on waste and organic composition of capital 130; on Marx's model and rate of profit 130- 1; on impact of arms spending 165;

Index

413

non-underconsumptionist theory of effect of arms spending in long boom 165-6; on British capital exports in long boom 183; on subsidy to advanced countries from Third World through immigration 173

Kissinger, Henry, on challenges to US hegemony 272

Klein, Naomi on "footloose factories" 258

Koechlin, Tim, on US foreign investment 260; on proportion of outsourcing in US 262

Koo, Richard 216

Korean War 198; reasons for 180, US spokesman on 181

Kosygin, Alexei 203

Kotz, David, calculations of profit rates for mid 2000s 232

Krugman, Paul, on Japanese crisis of 1990s 215; on difficulties of national states dealing with global crisis 301

Kuron, Jacek, and Modzelewski, Karol, on economic crises in Soviet type economies 205-6

Kuznets, Simon 146

Kwangyang steel complex 242

Kyoto conference 309

Labour, socially necessary 41

Labour costs, socialisation of 174

Labour power 32, 36, 47; value of 85; moral element 31; labour used in reproducing 52; supply and management of 132; reproduction of 132-7; in the long boom 172-5; cost of reproduction passed on to working class family 174; overintensive exploitation of 315

Labour productivity, in US, stagnation in 1970s 202

Labour theory of value 44-5, 47, imposed on capitalists by competitive accumulation 45-6; see also Law of value

Labour time, socially necessary 25, 45, 47, 51

Labour, abstract 26

Labour, concrete 26

Labour, dequalification of, 52-3

Labour, skilled, unskilled and

value 50-3

Laclau, Ernesto, and Mouffe, Chantal 331

Landless labourers 347

Lapavitsas, Costas, on role of central banks in financial systems 109; on changes in banking system and "direct exploitation" 294

Latin America, populist regimes not neo-colonial 185; the lost decade of 1980s 220; fall in real industrial wages in 1980s 340; exports of food and raw materials to China 250; French and Spanish banks 240, 255; peasant struggles 346 see also individual countries

Law of value 26, 45; operates through pressure of capitals on each other 46; and planning within enterprise 80; operates on individual capitals through time 53; with imperialist competition between state capitalist trusts 99; and state controlled economies 118-119; and giant corporations in long boom, 169-70; on a world scale 201; under state capitalism 201; in USSR 204; and welfare and educational expenditures 1 37

Lawson, Nigel, recognises inevitability of crises 67

Leaks of surplus value from circuit of accumulation 130 see also Waste

Left internationally, attitude to USSR 157

Lehman Brothers, collapse 277

Lenin, Vladimir 77, 89, 109, 1 65, 190; theory of imperialism 93-95; critique of Kautsky on colonialism 95; quoted parrot fashion on imperialism 184; on connection between state and capital 106; on semi-colonies 185; conditions for a "pre-revolutionary crisis" 350 see also Imperialism

Less eligibility 135

Liberal government (Britain), and social reforms 88

Liberation movements 182

Lifeboat operations and economic crises 267 see also Bail outs

Lifetime of fixed capital, and rate of

414

Index

profit 236

Lisbon Declaration 2002 239

Living in Britain 2000 334

Living labour 84; and objectified labour 33

Livingstone, Ken, praise for Gordon Brown 303

Logic of capital and greenhouse gases 315

Logic of states, counterposed to logic of capital 107

Long boom 161-192; common mistaken explanations 163,165

Long Term Capital Management hedge fund, lifeboat operation 234

Losses due to telecoms bubble 286

Lucas, Robert, on failure to understand cause of slump of 1930s 9

Luxemburg, Rosa 77, 89,132; theory of imperialism 99-101; luxury consumption of capitalist class 126; "Anti-Critique" reply to Otto Bauer 101

Macmillan, Harold 349

Mage, Shane, quoted 164-5

Mahalia al-Kubra 344

Maksakovsky, Pavel V, on Marx's theory of crisis 59-61

Malaysia 221, 242; turn to state capitalism 185; anti-Chinese riots 345

Mandel, Ernest 197; on absence of crises in Soviet economy 202

Manifesto of the Communist International to the Workers of the World, The (Leon Trotsky) 1 1 6

Mann, Michael, on limits of globalisation 261

Manual occupations in service sector 334

Manufacturing, centrality in modern society 333

Mao Zedung, death 243; see also China

Marcuse, Herbert 331

Marginal efficiency of investment, and rate of profit 150

Marginal output 41; contradiction in measuring it for neoclassical theory 44

"Marginal utility" 23, 43

Marginal value of capital 44

Index

Marginalist school of economics 9, 23, 41, 162; see also neoclassical school Marketisation 240

Marshall, Alfred 41; on failure of neoclassical theory when it comes to real world 10; time as a problem to be ignored 42; merits in a labour theory of value 44

Marx, Karl, and Engels, Frederick, reject Malthusianism 320; on capitalism's destructive effect on human interaction with nature 307; on productive forces 81

Marx, Karl, ideas 21-40, 55; on waste and organic composition of capital 129-30; financial profits as paper claim on real production 289; on role of finance 281; on role of credit system and fraud 64; discussion on finance in Volume Three of Capital 298; on accumulation for the sake of accumulation 204; on anarchy of market and despotism of factory 80; on capital accumulation and growth of "surplus" population 340; on capitalists as hostile brothers 268; on crises of 1846 and 1857 in Britain 152; on damage to agriculture by capitalism 82; on division of functions within capitalist class 1 1 4; on interest rate rises to protect value of money 286- 7; on labour and the natural world 81-82; on organisation of production within enterprise 79; on state machine in 19th century France 1 1 1; on sudden outbreak of crisis 148; on the state and unproductive expenditures 129; refines distinction between productive and unproductive labour in Capital 122-12; on vampire-like character of capitalism 84; skilled and unskilled labour 50; refutation of Say's law 57

Marx's theory of value, criticisms of 41

Marxist economic theory, tendency to look inwards 15; explanation of interwar slump 152-2; failures to integrate arms spending into analyses 165

415

Mass of surplus value, and accumulation 1 1 8; seeking investment in 1980s, 1990s and 2000s 281

Matthews, R C 0 163, 164

Maxwell Empire 233

McCormack, Ga van, on Keynesian measures in japan in 1 990s 216

Menger, Carl 41

Merchants' capital 107

Mergers, international as proportion of total 260; and jumping national state barriers 267

Mexico 218, 221; crisis of early 1990s 224

Michl, Thomas 195, 197

Middle classes, aspirant in poorer countries 221

Migration, state encouraged during long boom 172-3 181; reduces cost of reproducing labour power 173

Military competition, in Bukharin's theory 96; and economic competition 200

Military expenditure, and long boom 164; level during boom 165-6; by US in 2000s 273; and productive/unproductive distinction 127-8

Military hardware, continual role of 268

Military Keynesianism under Reagan 272; in 2000s 273

Military state capitalism 15 6

Military-industrial complexes 168

Mill, John Stuart 67; denies possibility of general crisis of overproduction 56

Mills, C Wright 331

Minford, Patrick 230

Mining disaster in Guangdong, China, in 2005 245

Minsky, moment 64, shifts 283

Minsky, Hyman 64

Ministry of International Trade and Industry, The (MITI) 171

Mobutu, Sese Seko 185

Modzelewski, Karol 204

Mohun, Simon 126

Monbiot, George, on Stern Report 313

Monetarism, and slump 145; takes over from Keynesianism 192-3, 297; and inflation in Britain 1980s 193;

failure of in early 1980s 193, 201

"Monetary measures" 149, 162; Keynes's scepticism over 370

Money capital 61,107; mobility of 107; growth of pools of 283

Money supply, growth in Britain 1980s 194

Money, Marx's account of 27; as universal equivalent 27

Monopolies 90-91; growth of 15; and crises, according to Hilferding 91

Monopoly profits 90

Monopoly stage of capitalism, in Lenin's theory 93-5

Morales, Evo 346

Mortgage bubble of early 2000s 286

Moseley, Fred 126, 195-6, 1 97; calculations of profit rates for mid 2000s 232

Mouffe, Chantal, and Laclau, Ernesto 349

MST Brazil's landless workers movement 346

Multinationals, weight in global economy 257; dependence on home base for much profitability 260, 264; dependence on states for trade negotiations 265; and role of states in aiding accumulation 265; US, affiliate sales mainly local 261 see also Transnationality index

Multinational capitals, conflicting agenda 268

Multiplier effect 162

Multipolarity 274

Mumbai, textile strike of 1982-3 345; Anti-Muslim riots of 1992-3 345

Mutual Assured Destruction (MAD) doctrine 268

Nasser, Abdul 185 see also Egypt

Nation states and global crises 301

National Bureau of Economic Research 191

National Energy Policy, report of 2001 319

Nationalisation by former colonies 185

NATO 180; expansion into Eastern Europe 272

Nature, and capitalism 307

Nature of Capitalist Crisis, The (John

416

Index

Strachey) 163

Nazi Germany, state planning 1 16; new investment 155

Needs of capitals and the needs of capitalism 314

Negri, Toni 93, 331, 333; see alsoHardt, Michael

Nehru, Jawaharlal 185

Nehruvian "socialism" 251

Neoclassical economists 14, 51; and value 26, 41; arguments against Marx 41; theory of market clearing 42

Neoclassical school of economics, 10, 14, 22, 23, 26, 47, 53, 144, 369; critique of Marx, 41-46; contradictions in, 42, 44; failure to explain crises 9, 56; Keynes and, 44-45, 162; theory of value 43; see also Marginalist school of economics

Neoliberal ideology in Global South 221

"Neoliberal" policies 240

Neo-populism 347

Net social wage in 1970s and 1980s 237-238 (graph) 237

New classical school 194

New Deal 154

New era of 1920s 144; and "new paradigm" of 1990s 236

New imperialism, similarities and differences with old imperialism 270-72, 253

"New paradigm" 229

New York Times on military contracts and global competitiveness 265

NGOs 342

Nixon, Richard, cuts US arms spending, ends "Bretton Woods" system 198

Non-productive expenditures, in capitalist competition 169; and slump of 1 930s 155

Northern Rock, toast of City dinner 287; nationalised 277

Notermans, Ton 164; quoted on Keynesianism not explaining long boom 195

Nove, Alex, quoted on Soviet growth 175

Nuclear weapons 269

Index

O'Connor, James, on role of welfare benefits for capital 174

O'Hara, Phillip 248

Obama, Barack, election campaign and climate change 313; first budget 327

Offe, Claus 1 10

Off-shoring, real role 336

Oil 183; crisis of 1973-4 1 84, 191; price and Soviet economy 207

Okishio's theorem 71, 73, theoretical refutation of 74-5; empirical refutation of 197

"Old boy" networks 109

Olympia & York 233

Ophelimity 43

Organic composition of capital, in Marx, 38; and technical advance 70; at end of 19th century 102; during long boom 168; in 1990s 234; in China in early 2000s 248

Organised capitalism, Hilferding's theory of 91

"Outsourcing" overseas, limits to scale of 262

Over-accumulation, under state capitalism 179; in USSR 177; overinvestment in China mid-2000s 248

Overproduction 61, 178; of telecoms bandwidth in 1990s 286; endemic according to Rosa Luxemburg 100

Overseas investment, during Cold War 181

Panic of November 2008 290

Pareto, Vilfredo 42, 43

Peak oil 31 8-20; implication over decades 319; does not counter climate change 320

Pearl Harbour 156

Peasantry 346-9; persistence of in Asia and Africa 346; differentiation within 347, 348; doing nonagricultural labour 332; Chinese 243

Peasants and Proletarians: the struggles of Third World workers (Robin Cohen, Peter C W Gutkind, Phyllis Brazier) 344

Pensions, Germany under Bismarck 88; during long boom 174

Pentagon, report on global insecurity resulting from climate change 328

417

Permanent arms economy, as explanation for long boom 165- 168; contradictions in 1 98-9

Pigou, Arthur Cecil 145

Plaza Accord of 1985 214, 266

Poland, crises of 1970s and 1980s 206-7; 1980-8 1, 351; significance for whole Eastern bloc 206-7

Polarisation of classes 87

"Political capitalists" 1 15

Political Economy of Growth, The (Paul Baran) 186

Pollution, in 19th century 307

Ponzi schemes 64, 283

Portugal 218

Posco 242

Post industrial society, theories of 331, 332

Poverty, in China in early 2000s 245; in India in 1990s and early 2000s 252; in USSR in late 1980s 208

Pravda on unemployment in USSR 208

Prebisch, Raoul 186

Precarious jobs, real levels in Western Europe, 336-7

Preobrazhensky, Evgeny 159; on slump of 1930s 153; impact of world crisis on USSR 158

Prescott, Edward C, on failure to understand cause of slump of 1930s 9; on Japanese crisis of 1990s 215

Price signals and climate change 311

Price and values 46; deviations from values 87

Primitive accumulation 39-40, 132, 258-9; and slavery 40; in USSR 176; China 245

Primitive communism 21

Private equity funds 279

Privatised Keynesianism 288

Productive and unproductive labour, 121-6; distinction does not depend on physical form of output 121; and accumulation 125; and commerce 125; Kidron on 127; Carchedi on 12 7

Productive capital 18, 107; twofold character of 108; and state 108; relative immobility of 107-8, 335; source of funds for banks 65; multinational, and rise of

finance 281

Productive capitalists and credit 62-4

Productive forces, can become destructive 81

Productive labour, and dynamic of system as whole 125

Productivity of labour, and rate of profit 73; Europe stops catching up with US in 1990s 239

Profit margins, China mid 2000s 248

Profit rate, theory of tendency to fall, Marx on centrality of theory 69; and crisis 75-78; countervailing tendencies 72; some Marxists critical of theory 69; Marxist theory after Marx 77; and state capitalism 201

Profit rates, equalisation of 87; falling in mid 19th century 88; recovery in Britain in 1890s 88; before and after First World War 151; from 1970s to early 2000s 232; fall in, and attractiveness of financial investment 281; claims that they recovered sufficiently in 1 990s 299 and investment, in Japan 171

Profitability, in China, and low international value of Yuan 289; and investment in low energy production 31 1-12

Project for a New American Century and US hegemony 272

Proletarianisation of public sector employees 138

Protectionism 145, 302; Hilferding's account of rise of 90

Proxy wars, typical of present period 269

Public expenditures and class struggle 138

Public works 216

"Pump priming" and slump of 1930s 155

Purchasing Power Parity 250

Quantitative easing 301

Raju, Ramalinga, India's "Young Entrepreneur of the Year" 287

Rate of profit, and productivity of labour 73 and imperialism 102; and investment 76; effect of arms expenditure on 131; and turnover time of capital 235; under state capitalism 1 1 7-119; in long boom and after 164, 195-7; and end of long boom 200; and Japanese crisis of 1990s 216; and restructuring through crisis 232; in China in 1990s and early 2000s, estimates 248; and wages and crisis 76

418

Index

Rational expectations theory 194

Raw material barrier 204

Raw material, and empire before World War One 97; cheapening during long boom 165

RBS Nabisco takeover of late 1980s 279

Reagan, Ronald, economic policy 194

Real business cycle theories 5 6

Real wages, rise at end of 1 9th century 88; see also Wages, United States, Germany, Long Boom

Realist school of international relations 103

Recessions, growth, during long boom 165; of mid 1970s, explanations for 191-2; of 1980s and 1990s 224; of 2001-2, 287; panic among commentators 230; loss of manufacturing jobs 332; of 2008-9 spread to China and India 291; of 2008-9 and cutbacks in green investments 313-4

Recycling of oil funds, and growth of finance 281

Reform, economic, in Communist countries 17 6

Regional character of many multinationals 262-3

Regulation School 164

Reification 28

Reiman, Michael 15 8

Relative surplus value 34

"Rentiers" 92, 98, 1 14; "power of" 294; "euthanasia of" 162

Reproduction of labour power and productive labour 135-7

Reserve army of labour 137-8

Restructuring of capital, in slump, war
and long boom 164; in 1980s,
1990s and early 2000s 224, 234-5;
limited economic effects of 235;
and working class 335; across
national borders, and growth of

finance 281

Revisionist controversy 89

Ricardo, David 12, 24, 25, 43, 46; development of ideas of Adam Smith 22; theory of value 30; gap in his theory of value 4 7; theory of falling rate of profit 69; followers of 23

Rio Earth Summit 1992 309

Robinson, Joan, on support for economic orthodoxy by those with power 1 1; on persistence of neoclassical theories that have been refuted 44; on "Bastard Keynesianism" 162; on changed message from apologists for capitalism 192

Roosevelt, Franklin D 154

Roubini, Nouriel 300; quoted 277

Rows between governments in crisis of 2008-9 302

Rowthorn, Bob, quoted 333; on wages as cause of declining profits 197

Royalties, and role of state 266; on seeds 322

Rugman, Alan M, on non global nature of big multinationals 262

Russia 327; Tsarist, industrial development 187; slump of 1990s, scale of 210; in 1 989-91 351 see also USSR

Sablowski, Thomas, on difficulty of separating financial and industrial capitalists 298

Sachs, Jeffrey, and shock therapy 210

Samuelson, Paul, text book 1 O; critique of Marx on value and price 48; quoted on end of business cycles 191

Sao Paulo, Brazil, size of formal and informal workforces 340; Economist calls it "a Detroit in the making" 188

Sarkozy, Nicolas, warns of danger of "a European 1968" 351

Saudi Arabia 183

Savings & Loans, bail out 233

Say, Jean-Baptiste 55

Say's law 57

Schroeder, on "internal modernisation" 240

Index

419