We have a Capitalism crisis on our hands.
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David Harvey: Okay so we’ve been
through this crisis and there are all sorts of
explanatory formats out there. And it’s
interesting to look at the different genres. One
genre is that it’s all about human frailty. Alan
Greenspan took refuge in the fact “It’s human
nature” he said, “and you can’t do anything
about that.” But there’s a whole world of
explanations that kind of say it’s the predatory
instincts, it’s the instincts, the mastery, it’s the
delusions of investors, and the greed and all
the rest of it. So there’s a whole range of
discussion of that. And, of course, the more
we learn about the daily practices on Wall
Street we forget there’s a great deal of truth in
all of that.
The second genre is that there’s
institutional failures; regulators were asleep at
the switch; the shadow banking system
innovated outside of their purview etc, etc, etc
and, therefore, institutions have to be
reconfigured and it has to be a global effort by
the G20s something of that kind. So we look at
the institutional level and say that has failed and
that has to be reconfigured.
The third genre is to say everybody was
obsessed with a false theory, they read too
much ((0:01:20.4?)) and believed in the
efficiency of markets and it’s time we actually
got back to something like Keynes or we took
seriously Hyman Minsky’s theory inherent
instability of financial activities.
The next genre is it has cultural origins.
Now we don’t hear that much in the United
States but if you were in Germany and France
there are many people there who would say…
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