Monday, 23 February 2009
Well, sort of
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.
Via Sunny at Liberal Conspiracy.
Beguiling video...and yet not quite enough to convince me. Why did this system develop in the first place? I still hold to the view I posted here:
"Around 1970-75 the rate of return on industrial capital began to decline in the USA and across the West - this resulted, first, in a renewed emphasis on cutting back the share of national income that went to wages and salaries (cf here) and, second, the development of a huge and sophisticated system of credit driven finance capital. It is this unprecedented credit system which has created globalisation, not any allegedly 'game changing' technologies such as computers. It allowed big capital to lend money to vast numbers of people whose static or declining real wages would otherwise have prevented them from acquiring assets such as housing."