What is the cause of economic crisis? There is not a one cause, but many. Perhaps, the more important is explained by Robert Brenner in a very useful book titled: The Boom and the Bubble: The US in the World Economy
This work offers a wide frame to understand the phenomena that are to the origins of crisis. According to Robert Brenner, the first causes of crisis would be over-capacity and over-production. During the first 1970s, firms and big companies, to survive the oil crisis, attempted to increase their plants and equipments.
These enormous efforts took to a powerful growth of employment and gains. The high level of profitability lasted for all 1980s. At the end of that years and during 1990s, companies of US, Asia and Germany began to create a production made by imports and exports. In those years, rapid monetary fluctuations allowed to enter into new foreign markets that improved the trades shares of US and other developed countries.
Market, at that time, was euphoric and believed that a similar shine could last forever. Instead, at the end of 1990s, with the advent of New Economy, a new age of production took the place of traditional economy. New technologies, PC, telecommunications, spread in every side of market, brought to believe that economy could exist with no real production.
Brenner, through several chapters of book, asks himself if it is possible to have a good economy by considering only a new economy. The answer for this question may be discovered only by reading the book.
The volume is suitable for who loves economic topics. Each chapter contains also figures and stats on years of upturn and downturn of US. Even if this book speaks about US economy, it may be useful to get the other causes of global crisis.
In the middle of book, Brenner speaks also on financial economy and the role of banks related to lend of money to householder and companies. These latter, just at the early 2000s, invested their savings and capitals in equities and bonds. Financial investments were excessive and always made by thinking to over capacity and over production. But it is never a good thing to spend more than you earn.
Today, the damages are under our eyes. I advise you to read Robert Brenner’s book. His work, published in 2003 by Verso, has 331 pages.
Source image: www.versobooks.com
Rosalba Mancuso is the journalist, born in Sicily, who founded three online magazines in English. On Advicebooks Book Reviews, Rosalba shows her great passion for books, helping readers and book lovers choose and buy the best books she read and reviewed. She also worked as a contributor to print and online magazines and as a bilingual Italian-English writer. Here, Rosalba also offers room to authors and publishers who want to get their books reviewed through the voice of an avid reader like her. You must also know that this book review magazine lives thanks to your help. Rosalba, in fact, earns a small commission, with no cost for you, when you buy books through the affiliate links you find in her book reviews. This book review magazine is also funded by services of editorial reviews and book press releases.
I think I would sponsor dolalr match days in my community. First, I would go to my local grocery stores and offer to match dolalr for dolalr what a customer spends on that shopping trip. For example, if they purchase $125 in groceries, they could bring their receipt to a table set up for the purpose and exchange it for a Cash Check that they can immediately deposit in their bank. This offer would be good for up to $500 and could only be redeemed once per day. I would do that for a week. Then I’d help out the local businesses by doing the same in their shops although I might purchase gift certificates in equal amounts, or maybe for part of the total to encourage further shopping. I like the idea of donating large quantites of food to the Charity Food Pantries sponsered by the local churches and the Salvation Army. I think that if people were able to stock up their pantries basically for free and get some much needed supplies from their local hardware stores and clothing stores without the fear of bouncing checks for a month, it would really help to turn the attitudes around in the community; bring up the spirits of people who are having to do without because of the times; and keep our local economy going. Even one month can make a difference. And I think a million dolalrs may be just enough to do all of that.