Inequality, crisis and austerity in finance capitalism

Richard Peet

Cambridge Journal of Regions, Economy and Society, 2011, vol. 4, issue 3, 383-399

Abstract: Using concepts of social formation and policy regime, the article examines the role of neoliberalism in creating finance capitalism. Finance capitalism involves new methods of exploitation in the reproduction sphere, through debt, price gouging etc. The paper argues that governments are integral components of finance capitalism. 'Austerity measures' are finance capitalism's method of disciplining reluctant classes and regions. A case study of the deficit crisis in the USA shows that austerity measures are the only permissible policy discourse, whereas the cause of the deficit is non-progressive taxation. The paper concludes that inequality is not only unethical but also it is economically disastrous. Copyright 2011, Oxford University Press.

Date: 2011
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Cambridge Journal of Regions, Economy and Society is currently edited by Judith Clifton, Anna Davies, Betsy Donald, Emil Evenhuis, Stefania Fiorentino (Associate Editor), Harry Garretsen, Meric Gertler, Amy Glasmeier, Mia Gray, Robert Hassink, Dieter Kogler, Michael Kitson, Linda Lobao, Charles van Marrewijk, Ron Martin, Peter Sunley, Peter Tyler and Chun Yang

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