During late 60s and early 70s, the world economy consisted the relationship between finance and productive capital. This article is about how this relationship has been broken down because of present financial crisis.
Today’s financial crisis seemed to be a result from collapse of the subprime loan and mortgages. However, the crisis gradually got started when world economy began outsourcing. The real engine of the economy is a labour-power. This is a well -known fact that China has developed by taking the lead of cheap labors. Once outsourcing became so popular because of the benefit, global scale of outsourcing got started. On the other hand, many employees who used to get high-wages unavoidably got fired or enforced to quit. Numbers of companies has focused on an increasing of productivity, therefore Chinese mass manufacture took a global market. If those employees had arranged subprime loans during the time of employment, they would be unable to make a regular payment after they get fired. Somehow the global movement of outsourcing related to subprime loan crisis.
What I thought interesting about this article is that they argue the financial crisis got really started since the global economic relied on cheap labor power while so many people argue the cause is the housing crisis. Because obvious phenomena caused of financial crisis was numbers homeless. Like great depression finally ended, the financial crisis has to be ended in near future. “Capital might find a way out of the crisis; it will seek to maintain or increase profitability in the real economy through pressure on wages (although this will perversely have a deflationary effect) the intensification of labour (the increased exploitation of workers). Strategies to increase both relative and absolute surplus value.”
