POP2406 Week 5

  • Created by: Elizbooks
  • Created on: 10-05-22 13:59
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  • POPP2406 Week 5
    • Globalisation - Giovanni Arrighi - history of capitalist expansion
      • Marx theory - capitalism must grow to survive in the economy and experiences cycles where more money is invested in the economy to produce goods, this good is sold to the market which creates more money in the form of profit
        • For capitalist to grow, it needs more demand from consumers and new markets in new locations
          • If markets become over saturated, it will be difficult for growth to happen which could reduce consumption and lead to a crisis
          • Increases demands through technology and advertisements
    • 1945-1970's the Bretton Woods era
      • Conference: to find ways to control the global economy by preventing currency changes and speculations and provide stability for trading purposes and finances
        • Keynesian growth regime
          • Investment in production which decreased unemployment rates
    • Globalisation: core-peripheral dependency
      • Western economies exploited colonies and former colonies to make profit and create growth e.g. used cheap resources from colonies to make goods and services
      • Needs more regulation and control e.g. tarrifs and leads to conflict due to regulatory tools
    • Neoliberal Revolution
      • Stagflation, oil shocks and money replacing dollar as a currency ended the Bretton Woods period
      • Less centralised and less regulation with US, UK and European financial sector
      • Privatisation and marketisation e.g. gas, electricity
      • Institutions such as the IMF and WB monitor economic growth in 3rd world countries and provide finance
    • Neoliberal era
      • GDP high but wages for workers has not increased that much
      • Tax rate - steady - due to less regulated financial markets and as a company expands, it is easier for them to hide their money from the state to pay taxes and may do tax avoidance


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