No effective demand, no credit…it’s Armageddon Mr Osborne!

If you’re still scratching your head wondering how on earth we could have got ourselves into this horrendous financial mess, David Harvey sets out his explanation in a clear and believable way in the clip below.

David Harvey is a leading social theorist. He is actually an academic geographer ‘by trade’, but most recently he’s been credited with restoring social class and Marxist methods as serious methodological tools in the critique of global capitalism. His most recent book “The Enigma of Capital: and the Crises of Capitalism” takes a long view of the current economic crisis. Harvey explains how capitalism came to dominate the world and why it resulted in the current financial crisis. He describes that the essence of capitalism is its amorality and lawlessness. He believes to talk of a regulated, ethical capitalism is to make a fundamental error. His book proved hugely popular and sparked a new interest in his work.

So, it’s been the distortion of the excessive power of finance capital…yes! Decades of wage repression with effective demand being maintained by easy credit…yes! The empowerment of financiers through financial innovation…yes! Successive administrations deliberately siding with the city and allowing manufacturing industry to wither…yes! It’s all happened under our noses, and all in our name.

Take a look at this animated clip. Don’t be put off by his Marxist sympathies, it’s good!

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