Profitability and the Great Recession

The Role of Accumulation Trends in the Financial Crisis

Business & Finance, Economics, Economic History
Cover of the book Profitability and the Great Recession by Ascension Mejorado, Manuel Roman, Taylor and Francis
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Ascension Mejorado, Manuel Roman ISBN: 9781134638567
Publisher: Taylor and Francis Publication: October 23, 2013
Imprint: Routledge Language: English
Author: Ascension Mejorado, Manuel Roman
ISBN: 9781134638567
Publisher: Taylor and Francis
Publication: October 23, 2013
Imprint: Routledge
Language: English

From the mid-1980s, investors in the US increasingly directed capital towards the financial sector at the expense of non-financial sectors, lured by the perception of higher profits. This flow of capital inflated asset prices, creating the stock market and housing bubbles which burst when the imbalance between stagnant incomes and rising debts triggered the banking meltdown. Profitability and the Great Recession analyses these trends in profitability and capital accumulation, which the authors identify as the root cause of the financial crisis, in the context of the US and other major OECD countries.

Drawing on insights from Adam Smith, David Ricardo, John Stuart Mill and Karl Marx, the authors interpret the relationship between capital accumulation and profitability trends through the conceptual lens of classical political economy. The book provides extensive empirical evidence of declining rates of US non-financial corporate accumulations from the mid-1960s and profitability trends in that sector falling from post-war highs. In contrast to this, it is shown that there was a vigorous rise of profitability in the financial sector from a 1982 trough to the early part of the twenty-first century, which led to the bloating of that sector. The authors conclude that the long-term falling accumulation trend in the non-financial corporate sector, highlighted by the bankruptcy of major automobile corporations, stands out as the underlying force that transformed the financial crisis into a fully-fledged Great Recession.

This book will be of interest to students and researchers in the areas of economics, political economy, business and finance.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

From the mid-1980s, investors in the US increasingly directed capital towards the financial sector at the expense of non-financial sectors, lured by the perception of higher profits. This flow of capital inflated asset prices, creating the stock market and housing bubbles which burst when the imbalance between stagnant incomes and rising debts triggered the banking meltdown. Profitability and the Great Recession analyses these trends in profitability and capital accumulation, which the authors identify as the root cause of the financial crisis, in the context of the US and other major OECD countries.

Drawing on insights from Adam Smith, David Ricardo, John Stuart Mill and Karl Marx, the authors interpret the relationship between capital accumulation and profitability trends through the conceptual lens of classical political economy. The book provides extensive empirical evidence of declining rates of US non-financial corporate accumulations from the mid-1960s and profitability trends in that sector falling from post-war highs. In contrast to this, it is shown that there was a vigorous rise of profitability in the financial sector from a 1982 trough to the early part of the twenty-first century, which led to the bloating of that sector. The authors conclude that the long-term falling accumulation trend in the non-financial corporate sector, highlighted by the bankruptcy of major automobile corporations, stands out as the underlying force that transformed the financial crisis into a fully-fledged Great Recession.

This book will be of interest to students and researchers in the areas of economics, political economy, business and finance.

More books from Taylor and Francis

Cover of the book The Routledge Companion to Alternative Organization by Ascension Mejorado, Manuel Roman
Cover of the book Homegrown Development in Africa by Ascension Mejorado, Manuel Roman
Cover of the book Women Remember by Ascension Mejorado, Manuel Roman
Cover of the book Perceptions of the Crusades from the Nineteenth to the Twenty-First Century by Ascension Mejorado, Manuel Roman
Cover of the book Contemporary Advances in Sport Psychology by Ascension Mejorado, Manuel Roman
Cover of the book Advances in Social Media for Travel, Tourism and Hospitality by Ascension Mejorado, Manuel Roman
Cover of the book An Introduction to Sports Coaching by Ascension Mejorado, Manuel Roman
Cover of the book Developing Children's Speech, Language and Communication Through Stories and Drama by Ascension Mejorado, Manuel Roman
Cover of the book The Infinite by Ascension Mejorado, Manuel Roman
Cover of the book Males With Eating Disorders by Ascension Mejorado, Manuel Roman
Cover of the book Modern Turkey by Ascension Mejorado, Manuel Roman
Cover of the book Value-based Human Resource Strategy by Ascension Mejorado, Manuel Roman
Cover of the book Second Language Writing Research by Ascension Mejorado, Manuel Roman
Cover of the book Methods and Uses of Hypnosis and Self-Hypnosis (Psychology Revivals) by Ascension Mejorado, Manuel Roman
Cover of the book A Political Chronology of Africa by Ascension Mejorado, Manuel Roman
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy