Here is 11 minutes and 11 seconds of animated articulation (for the subscribers, here’s the youtube link: “RSA Animate – Crises of Capitalism“).
It’s based on David Harvey’s book, “The Enigma of Capital“.
If you’re looking for a summary of the essential crisis, my understanding is:
- Capitalism is all about the investment of capital in productive assets
- Assets are only productive because they produce things that people will consume
- But the wage-earners that would consume stuff are earning less money
- Because the holders of capital are interested in maximising their profits, not in maximising their workers’ wages
- And therein lies the internal crisis.
But that’s not a very good summary. Rather take the 11 minutes and 11 seconds and watch the animation.
Rolling Alpha posts opinions on finance, economics, and the corporate life in general. Follow me on Twitter @RollingAlpha, and on Facebook at www.facebook.com/rollingalpha.