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 American Soldiers in Iraq by Ascension Mejorado, Manuel Roman
Cover of the book Culture, Aesthetics and Affect in Ubiquitous Media by Ascension Mejorado, Manuel Roman
Cover of the book Routledge Handbook of Families in Asia by Ascension Mejorado, Manuel Roman
Cover of the book Patterns of Social Inequality by Ascension Mejorado, Manuel Roman
Cover of the book Japan's Local Newspapers by Ascension Mejorado, Manuel Roman
Cover of the book Greek: A Comprehensive Grammar of the Modern Language by Ascension Mejorado, Manuel Roman
Cover of the book Subject Mentoring in the Secondary School by Ascension Mejorado, Manuel Roman
Cover of the book Crime Scene Investigation by Ascension Mejorado, Manuel Roman
Cover of the book Ethics, Money and Sport by Ascension Mejorado, Manuel Roman
Cover of the book Awakening by Ascension Mejorado, Manuel Roman
Cover of the book Rene Descartes' Meditations on First Philosophy in Focus by Ascension Mejorado, Manuel Roman
Cover of the book Offending Behaviour by Ascension Mejorado, Manuel Roman
Cover of the book On Justifying Democracy by Ascension Mejorado, Manuel Roman
Cover of the book China's Urban Space by Ascension Mejorado, Manuel Roman
Cover of the book Learners, Learning and Educational Activity 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