THE HISTORICAL SIGNIFICANCE AND THE SOCIAL COSTS OF THE SUBPRIME CRISIS: DRAWING ON THE JAPANESE EXPERIENCE
<p class="first" id="d339739e59">The historical significance and the social costs of the subprime crisis are examined in three separate but related sections. The subprime crisis originated from the financial turmoil in the USA in 2007, and soon turne...
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| Format: | Article |
| Language: | English |
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Pluto Journals
2010-06-01
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| Series: | World Review of Political Economy |
| Online Access: | https://www.scienceopen.com/hosted-document?doi=10.2307/41942918 |
| Summary: | <p class="first" id="d339739e59">The historical significance and the social costs of the subprime crisis are examined
in three separate but related sections. The subprime crisis originated from the financial
turmoil in the USA in 2007, and soon turned into a serious world economic crisis.
The first section treats the specific features of the subprime crisis particularly
in comparison with the Japanese bubble of the 1980s and the ensuing crisis of the
1990s, and discusses why the crisis became re-coupled this time. A notion of financialization
of labor-power as an important new trend is also presented. The second section pursues
the comparison further by discussing briefly the great depression that followed after
1929, and suggests reasons why the current crisis might not be equally drastic. Finally,
the third section probes into the social costs of the crisis in four aspects. They
proved the failure of neoliberal belief in the rational efficiency of unregulated
market principles, and concluded the age of neoliberalism.
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| ISSN: | 2042-891X 2042-8928 |