Debt disaster with no escape

The IMF-World Bank semi-annual meeting starts this week.  Earlier the IMF kicked off the show with a warning that the poor countries of the world are heading for a catastrophe from the pandemic slump, leading to defaults on the debts that their governments and companies owe to investors and banks in the ‘global north’. AccordingContinue reading “Debt disaster with no escape”

Work or toil in the pandemic

The pandemic has opened up a Pandora’s box about the future of work.  The slump has caused a huge loss of jobs, hours and earnings, particularly for those who are in all sorts of service sectors, like retail, entertainment, leisure, events, food preparation etc and it is driving thousands of small businesses surviving on smallContinue reading “Work or toil in the pandemic”

The US rate of profit before the COVID

Every year, I look at measuring the US rate of profit. Official US data are now available to update the measurement of the rate for 2019. There are many ways to measure the rate of profit (for the various ways, see  I have one way and you can check and replicate my results byContinue reading “The US rate of profit before the COVID”

Pandemics: prevention before cure

There is now firm evidence of a strong link between environmental destruction and the increased emergence of deadly new diseases such as Covid-19.  Indeed, increasing numbers of deadly new pandemics will afflict the planet if levels of deforestation and biodiversity loss continue at their current catastrophic rates.  That is the conclusion of scientists who willContinue reading “Pandemics: prevention before cure”

The Fed in a hole

At the Kansas City Fed Jackson Hole symposium, the annual jamboree ‘think-tank’ for international central bankers, US Federal Reserve Chair Jay Powell announced the end of monetary policy as a tool to control inflation.  His speech of just a few minutes completely dropped the monetarist theory of inflation as proposed by Chicago free market economistContinue reading “The Fed in a hole”

A Marxist theory of inflation

In my previous post on inflation, I spelt out why mainstream theories of inflation have been proved wrong empirically; leaving mainstream economics in a confusion about what just does drive inflation in the prices of goods and services.  In this post, I want to argue that mainstream theories of inflation falter because they are not basedContinue reading “A Marxist theory of inflation”

Taking on the ‘fearsome foursome’ and ‘market power’

Last Thursday, the US-based global tech giants reported their quarterly earnings simultaneously.  On the same day, the US economy recorded the biggest quarterly contraction in national output ever (-9.5% yoy or -32.9% annualised). In contrast, the ‘fearsome foursome’: Alphabet (Google) – the world’s largest search engine; Amazon – the world’s largest online distributor; Apple –Continue reading “Taking on the ‘fearsome foursome’ and ‘market power’”

A world rate of profit: a new approach

Marx’s model of capitalism assumes a world economy, and starts with ‘capital in general’. It was at that level of abstraction that Marx developed his model of the laws of motion of capitalism and, in particular, what he considered was the most important law of motion in the capitalist process of production, the law ofContinue reading “A world rate of profit: a new approach”