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Showing posts with the label "trade wars"

Global Capitalsm

This falls in the underconsumption theory. It very insighful though, but it would be interesting to see a critique of it, especially that it apparently excludes the relationship between investment and the rate of profit. "Michael Pettis and Matthew Klein's new book  Trade Wars Are Class Wars  begins  with an epigraph from John A. Hobson: "The struggle for markets, the greater eagerness of producers to sell than of consumers to buy, is the crowning proof of a false economy of distribution. Imperialism is the fruit of this false economy." Pettis and Klein update the Hobsonian thesis for the twenty-first century, arguing that, while trade wars are often thought to be the result of atavistic leadership or the contrasting economic priorities of discrete nation states, they are best understood as the malign symptoms of domestic inequalities that harm workers the world over." Trade Wars Are Class Wars