Nèdeem Elmahjoub's blog

A discussion of neoliberalism and the future of the global economy

Pandemic Economics

Nesrine Malik : The pandemic exposed our failing healthcare systems; the disparity between the  perception of immigrants as a drain  and the reality of them as pillars of our communities; the gulf between races and classes; the incompetence of our politicians; the fatal consequences of diminishing public services. There is a naivety in the hope that once ideas are discussed and made popular, they will permeate policymaking and bring about change. History shows us that, during a period of economic upheaval, this is unlikely. The 2008 financial crisis is the clearest cautionary tale. If the loss of life is at a level deemed acceptable by big business and government, the focus will shift to moving on while minimising the need for change. The old order – that some are already writing eulogies for – will surge back rather than retreating. History shows us that whatever horrors a crisis exposes, they can be covered up in the shattered aftermath."

Coronavirus will require us to completely reshape the economy Will it?

"It was the virus that did it"

Recession on the horizon?

"Before Donald Trump was elected, stock markets went down every time he improved in the public opinion polls.  Finance capital did not want him to win.  But since his surprise election, stock markets have not slumped.  On the contrary, they have risen substantially along with a strengthening dollar.  It seems that ‘the Donald’ could be a good thing for Capital after all." Testing Trumponomics

The long depression Via Michael Roberts " Back in work, still out of pocket : Labour market recovery since the Great Recession - the jobs gap will not be closed until 2017 at the earliest AND the wages gap may never be closed. Some countries have real wages over 20% below where they would have been without the Great Recession and subsequent weak recovery. The UK scores worse than Greece on this relative measure . According to a study by the OECD, the labour market recovery in OECD countries has been steady but slow s ince the Great Recession. More worrying is the fate of wage growth over the same period.  The jobs recovery has been underway since the first quarter of 2010, when the OECD average employment rate reached its post-crisis trough, with only 58.6% of the population (ages 15-74 years) employed. This was 2.2% lower than the employment rate in 2007, corresponding to 20.3 million missing jobs. Despite the slow and uneven nature of the economic recovery, the jobs de...

The Long Depression: Marxism and the Long Crisis of Capitalism by Michael Roberts (Haymarket Books, 19 July 2016)

"Brexit in the long run may not make a huge difference to the health of British capitalism, but right now it could help accelerate a new global recession.  And that would have a much bigger impact on the lives of those who voted for Brexit than the perceived problems of ‘overcrowding’ from immigration or regulation from Brussels." The Impact of Brexit