Explain the causes of the great recession Essay - 825 Words

Explain the causes of the great recession (Essay Sample) Content: Name:Instructor:Course:Date:Explain the causes of the great recession. The great recession was caused by the development of crude policy that was based on putting the screws on the people and saving of the banks. According to Harvey, the government developed pragmatic principals where the banks were to be protected no matter the costs. The banks started to behave badly since they did not have negative consequences of high-risk behavior (Harvey 50). The current policy was that was used to exist the crisis was further centralization and consolidation of the capitalist class power. Andrew Mellon stated that during the crisis the assets always return to their rightful owners. The banks continued to stash their funds to resume payment of the big bonuses they had paid for before the recession. America can solve the issue of the great recession when there is a balance among the classes, and this will depend mostly on whether mass population will rise and say it is enough. Th e system was the main cause of the great recession that had succumbed America. According to Alan Budd, the policies formed in the 1980s that attached inflation through public spending and squeezing the economy to cover the bash of workers. As a result, it would create the industrial army that will undermine labor power and allow the capitalist to make an easy profit. The availability of labor has no being a problem because of capital for the past twenty-five years. On the contrary, the disempowerment of labor through low wages has impoverished the workers.The inflation of assets values will not go on in America, but it is their turn to experience pain because of their falling asset values. In their desperate attempt to acquire more places and put surplus capital, the wave of privatization had swept the world on the back of dogma state-run enterprises (Harvey 150). Some of the state-run enterprises were inefficient, and they best way they could do better was through passing them to the private sector. The government policies have increased the problem rather than assuage by using the taxpayers to bail out banks, forgiving their debt, and the capitalist class.Discuss how the capital's response to the crisis of the Fordist / Keynesian regime of accumulation ultimately resulted in a global breakdown in accumulation in 2008Universities have continued to promote the identical useless courses of neoclassical economics and rational political theory like nothing ever happened. The crisis had occurred out of the greed for people to increase the value of their assets. The banks continue to use the money not by lending it to people, but rather leveraging and buying other banks. They are busy trying to consolidate their power in the American economy. In a way, capital-labor relation has played a critical role with the dynamic of capitalism (Harvey 10). The main problem is that capital continues to be more powerful than labor rather than the opposite. Although it has one o f the largest public budgets...