Academic journal article Journal of Australian Political Economy

Howard Sherman: The Roller Coaster Economy: Financial Crisis, Great Recession and the Public Option

Academic journal article Journal of Australian Political Economy

Howard Sherman: The Roller Coaster Economy: Financial Crisis, Great Recession and the Public Option

Article excerpt

Howard Sherman

The Roller Coaster Economy: Financial Crisis, Great Recession and the Public Option

M.E. Sharpe, New York, 2010, 195 pp., $56.

Howard Sherman has been an outstanding contributor to radical political economy over four decades. His work is Marxist in method, topical in focus and popular in style. It is a combination well suited for an analysis of the global financial crisis (GFC). He sets it up as an investigation into the causes of the business cycle, with particular reference to the US economy. The first part of the book demonstrates that periodic crises are endemic to capitalism, not mere wobbles caused by external shocks. According to Sherman, what makes capitalism a uniquely 'roller coaster economy' is the interaction between profit-seeking, the use of the market to determine what is produced and what is not, and the existence of money as a source of savings and of credit.

So what were the particular causes of the recent GFC? First, an 'income gap' because the fruits of economic growth went more to property owners than workers. To address the resulting 'consumption gap' workers then had recourse to growing volumes of credit, but credit collapsed in 2007 after the banking system went into a tailspin. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.