TITLE:
The 2007-08 Financial Crisis from a Marxist View
AUTHORS:
Fernando Henrique Taques, Henrique Pavan Beiro De Souza, Douglas Alcantara Alencar
KEYWORDS:
Crisis, Marxist Theory, Subprime
JOURNAL NAME:
Modern Economy,
Vol.8 No.9,
August
29,
2017
ABSTRACT: The international financial crisis in the American
economy in 2008 brought again to the fore an economic discussion on the origin
of crises. Previously, only the 1929 accident had such magnitude, putting in
discussion the economic policies adopted until then, raising the economic
debate between several economic schools of thought. The effects of the crisis
were notorious about the financial markets, but also hit hard the real economy,
especially the productive sector, such as industry and services. Indeed, the
consequences on employment, income and on the level of trade were not only felt
by the American economy, but also in other countries. Starting from this
context, this article aims to describe the propelling elements and the forms of
theoretical manifestation of the crises under a marxist perspective, seeking to
understand the origins of this phenomenon from the marxist stream, as well as
discourse about the 2008 crisis and its developments on the American economy.
Therefore, it makes use of economic indicators on the evolution of prices and
sale of real estate in the United States, growth rate of gross domestic product
and employment and income between 2000 and 2010. The methodology also includes
the arguments on the capital bearer of interest and fictitious capital in
addition to the role of the rate of profit, exposed in the Marxist conception
of the origin of financial crises. As a result, it can be seen that the
fictitious capital dominates economic and political relations so that the
crisis has its origin on capital and not in the productive sphere.