When the Great Depression followed the 1929 stock-market crash, almost everyone acknowledged that capitalism was unstable, unreliable, and prone to stagnation. In the decades that followed, however, that perception changed. Capitalism’s postwar revival, and especially the post-Cold War rush to financialised globalisation, resurrected faith in markets’ self-regulating abilities.
First, it must balance employers’ demand for waged labour with the available labour supply. Second, it must equalise savings and investment. If the prevailing real interest rate fails to balance the labour market, we end up with unemployment, precariousness, wasted human potential and poverty. If it fails to bring investment up to the level of savings, deflation sets in and feeds back into even lower investment.
If that were true, capitalism would never stagnate — unless a meddling government or self-seeking trade union damaged its dazzling machinery. Of course, it is not true, for three reasons. Instead of investing, they embark on more mergers and acquisitions, which strengthen the technostucture’s capacity to fix prices, lower wages, and spend their cash buying up their companies’ own shares to boost their bonuses. Consequently, excess savings increase further and prices fail to reflect relative scarcity or, to be more precise, the only scarcity that prices, wages, and interest rates end up reflecting is the scarcity of aggregate demand for goods, labour, and savings.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
BUSINESS MAVERICK OP-ED: Business schools are SA’s natural partner in the Fourth Industrial RevolutionSouth Africa is playing catch-up, and while it might aspire to become a leading light in the evolving global developments, realistically, the Presidential Commission on the Fourth Industrial Revolution has set its sights on achieving competitiveness and the need for inclusive growth. No
La source: dailymaverick - 🏆 3. / 84 Lire la suite »
BUSINESS MAVERICK: PwC’s Steinhoff report suggests profit was boosted by R106bn in seven yearsFollowing the delivery of the PricewaterhouseCoopers report into Steinhoff, the full impact of the apparent fraud is just beginning to sink in, and even for those expecting the worst, it’s gobsmacking. According to PwC, between 2009 and 2016, the company apparently created fictitious profit-boosting schemes totalling R106bn, which is just under three times the net profit of the company over that period.
La source: dailymaverick - 🏆 3. / 84 Lire la suite »
Business Maverick: Jumia’s billion-dollar NYSE listing comes amid both good and worrying signsLater in 2019, the New York Stock Exchange will see the first listing of an African technology company to be valued at more than $1-billion, a real, actual dinkum unicorn. The company, Jumia, is Nigeria-based and is known as the African Amazon since it is primarily an e-commerce business. But is it a good investment?
La source: dailymaverick - 🏆 3. / 84 Lire la suite »
MAVERICK BUSINESS: Rating agencies are likely looking for changes larger than South Africa’s political system can deliverThe language of rating agencies is often obscure; publicly Moody’s talks about ‘persistent structural challenges’ and the risk of ‘fiscal slippages in the face of both slower growth and increasing political pressures’. What this means is that they are looking for some substantial and fast policy changes, probably larger than SA’s political system can manage.
La source: dailymaverick - 🏆 3. / 84 Lire la suite »
Mohale: ANC govt 'killed' more black business, black professionals than National PartyThe ANC government has 'killed' more black businesses and black professionals than the National Party did, Bonang Mohale, CEO of Business Leadership SA tells Eusebius McKaiser on Radio 702. U were not allowed to even have a business by then, this kind of thinking 😢 Indeed. When Blacks are corrupted with a virus like Windows, vomit such statements. We have more Tenderprenuers today then ever in a history of SA. That Black Business, if you don't believe me, where do money for Cubana come from?
La source: News24 - 🏆 4. / 80 Lire la suite »