You are currently browsing the daily archive for October 1, 2010.
Capitalism as a system transcends borders, and so does the latest capitalist crisis. Sometimes pictures tell a story better than words. A brilliant animated cartoon appeared this summer on youtube, illustrating a lecture by CUNY-based British social theorist David Harvey in which he outlines his explanation of the 2008-20xx economic crisis.
Harvey’s analysis of the structural politico-economic origins and mechanisms of the crisis is poignant. The witty animation brought to life by the RSA is a true delight, regardless of what one may think of his arguments. A certain part of Harvey’s narrative caught my eye in relation to microfinance (more below). But first, let me briefly recap his story (in an unduly simplified manner). Harvey says:
There are five common explanations of the crisis, all of which are somewhat true:
[1] It stems from human nature – predatory instincts, greed, etc.
[2] The regulators failed, therefore institutions need to be reconfigured.
[3] Everyone believed in a false theory – forget Hayek, return to Keynes!
[4] It has cultural origins – homeowning-obsessed Americans and lazy Greeks, your fault!
[5] It’s a failure of policy – too much regulation of the wrong sort.
