David Harvey: 'The financial crisis is an urban crisis' | Comment is free | guardian.co.uk
ReturnofQ 28 May 2012 12:36PM Harvey's analysis is a good one, but it omits the crucial factor that is beginning to prevent the global economy from investing surplus capital in economic activity that will produce enough returns to pay back the loans that are now essential to the generation of the credit-based money supply; energy depletion. It was the constant discovery of energy resources with a high mass-energy ratio and high portability that allowed capitalism to increase the growth of the global economy almost 32 times from the early 19th century to the early 21st. This long-term growth curve was the cushion that prevented the effects of depressions being even worse than they were, and gave people hope of an eventual recovery. This is no longer possible.
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What we might be witnessing today is the beginning of a long period of contraction, enforced downsizing and permanent recession. We have experienced nothing like this since the beginning of the agricultural revolution, except in localised pockets. No general 'recovery' as we once understood and experienced it - as a return to the growth curve - is possible, even though some developing economies now being used as receptacles for cheap manufacturing will keep on growing for a while. In such a contraction social equality and rational planning will become increasingly important as a means of preventing quite tumultuous social unrest and hostility. kippers 28 May 2012 12:42PM Good stuff. I heard Harvey speak at Cambridge almost 40 years ago (when geography students brought him back to give a lecture against the wishes of geography department): just as good now as he was then. NegativeStateRelief 28 May 2012 12:42PM Response to englishhermit, 28 May 2012 11:28AM But buses are for little people!
NegativeStateRelief 28 May 2012 12:54PM Response to sickchip, 28 May 2012 11:05AM
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Published on May 28, 2013