Financial Meltdown 2008 Structural Causes
Lack of Bank Regulation
Short-Term Reserves Were in Euros
Academic Economist Under
Winners and Losers
Winners and Loses 1
Debtors Can't or Won't
Pay Government Helped Top and Bottom
Government Helped Top and Bottom
Winners and Loses 2
Return on Capital-R Greater Than Economic Growth Rate-G.
Top 1% received 90% of Income Gains
World's Very Poor Benefited
Middle Income Stagnate: Poor Get Government Help! Middle Class Ignored.
1.Neoliberal Economic Orthodoxies Wrong
A. Finance does affect real economy.
B. Finance system can falter.
C. Markets Need
2. Loans to Greece from
Germany's trade surpluses
were not the problem
to fund substantial daily borrowing needs for international commerce.
3. Almost all banks were very highly leveraged
with substantial short term $ borrowing used
as Euro collateral needed for daily operations
B. Credit stopped
2. Thatcher deregulation of London's financial system had made it the hub of dollar
denominated European bank sponsored debt which flowed into and out of the U.S.
3. The U.S. eventually deregulated to loosened housing mortgage rules and
help financing of Clinton's expand minority housing Community Reinvestment Act.
4. Credit-default swaps failed. Created to safeguard the resulting low credit rating
housing loans were exempted from regulation by the Gramm-Leach-Bliley Act
which repealed banking industry safeguards provided by the Glass-Steagall Act.5. Many banks did not have the dollar reserves to meet the needs of the banking
and corporate world.
6. Walls Street's model of an extremely leverage wholesale funding model running
out of NY and London would crash.
4. Is FED Involvement in
a Geopolitical World Appropriate?
5. Stability Needs Dollar Supremacy
A. World trade is stable because the world, through
B. Dollar investments are dependent on
C. Distribution of these profits
Return to Political Economy Book Summaries 11/21/18 view horizontally Please share!
Part 2 Democracy
Failures Caused Popularism
summarized from Francis Fukuyama: Democracy's Failure to Perform
1. Development of Illiberal Democracy
1. Foreign Policy Failures of Developed Democracy
enhanced by U.S. foreign policy failures i.e. Middle East wars
2. Non-Liberal Democracy success, especially China
3. Poor Liberal Democracy Performance i.e. economic
slowness, immigration concerns, wealth accumulation
B. Definitions, nominal
1. States: monopoly on the legitimate use of force.
from Max Weber States are about Power!
2. Rule by Law: sovereignty sets the law i.e. China
3. Rule of Law: sovereignty responsible to same laws
as the governed. Laws limit power.
4. Democratic Accountability requires free political parties
with guarantee substantive accounting and a governments
that serves the entire population, not just the rich and the poor.
Liberals missed this effect of their policies.
Everyone Got More, Some Just Got More More Than Others!
C. Modern Political System
2. Patrimonialism: rulers own political system, resources , distribute wealth Who You Know
3. Neo-Illiberal States:
look democratic, limited representation,
leaders follow the money
D. U.S. Failures
at State Building
2. Three Main Forces Are Blowing Up Global Politics
Status and Social Cultural Apprehensionseventually led to disruptions.
This caused effected groups to lash out in a tribal like response.
An End to a Post WW II U.S. Led Moderation is seen by some to be causing
1. Great power conflict returning to early Cold War levels
2 Declining world wide economic prosperity
All three disruptions could last years Axion reportedhere, here and here.
Optimistic leaders thought and even hoped Trump, Brexit, or something else
would help moderate continued disruptions.
Disruption modification related to Trump, Brexit, and immigrantswill be difficult.
1. No opposing stability force seems forthcoming
2. An aging and shrinking developed world's population reinforces disruptive forces.
3. AI is increasing worker employment anxiety.
3. Climate change is increasing leader concerns.
European Threats 8/18
Would a more Federalist Approach decrease the animosity
Understanding Left-Right Populism
Summarized of Understanding Right and Left Populism by Samir Gandesha
an Associate Professor in the Department of the Humanities and the
Director of the Institute for the Humanities at Simon Fraser University.
1. Growth of PopulismRight-wing populist parties in Austria, Hungary, and Poland Also in Erdogan's Turkey 2003, Modi's India 2014, Trump's American 2016,
Batten's United Kingdom 2016.
The 2011 Tahrir Square generated
Arab Spring was short lived
Focus on two populism helps understand the difference between
Empirical study by Norris and Inglehart (2016) emphasized
of different demands a democratic, horizontal and egalitarian discourse. 2. Populism:
Three distinct elements
3) nativism vs. 3)osmopolitanism
Two distinct axes: economic and cultural
1) the rules of the game
Norris and Inglehart argue that the latter is the most convincing
One wonders whether the authors don’t seriously underestimate the threat
3. Neoliberal globalization is comprised of four processes:
1) accumulation by dispossession
Together they have increased economic
and cultural anxiety
Anxiety from neoliberal globalization has ammunition from right and left populists.
Neither Norris and Inglehart nor Laclau adequately account for
“the people” are differentially deployed by right and left and they
1) Islamic terrorism
3) European Commission,
4) International Jewish Conspiracy ...
Left populism defines “the people” as social structures/institutions
1) state and capital that thwart its aspirations for self-determination
2) allows hospitality towards the other right populism defines the enemy in personalized terms
Insecurity and anxiety are necessary, unavoidable,
even a favorable product of capitalist social relations.
They generates acceptable fear of the stranger and a punitive state.
Left populism defines the enemy in terms of socio-economic structures.
Insecurity and anxiety are caused by a dismantling of the welfare state
and workforce casualisation.
These egalitarian solutions that can also turn authoritarian.
Part Four Populism is the Reset Mechanism
Populism is not
an economic distribution complaint,
It is not just about wage stagnation and loss of jobs
It is about disempowerment, social exclusion, unfairness, and humiliation.
Many Trump Populists seek recognition, having a meaning,
from M. Sandel: Populism, Trump, and the Future of Democracy
Kantian Morality Enough for the Public Sector,
Should public discussion go beyond safe and delimiting morality
Should respect for work and be part of the discourse?
Should competing conceptions of the "good life" be on the table of public discussion?
Update from Ian Bremmer
Populism in Europe & America 1/24/19
Editor's Note: Michael wants more that Kant. Kant is enough.
Michael Aandel is a lot like Charles Murray who is basically correct,
Extreme conservatives want too much control, extreme liberals want no control.
Left wing populism is economic, the main stream view feels this is the starting point
Right wing populism is about the cultural loss caused by immigration, not prejudice
Summary of Summary
Insecurity may need more attention by populist theory.
These are key to understanding the difference between right and left forms of populism
Nazism And Neoliberal Mythmaking