The paper "To What Extent Is Global Capitalism In Crisis" is a good example of macro and microeconomic essay. Capitalism is an economic system whereby a country allows freedom of its trade and industry to be owned privately rather than by the state. When freedom applied to the sphere of production, it results in the free market. The global economies form the web in which national boundaries are increasingly irrelevant to trade, investment, and other economic activities. The global crisis is, as a result, the collapse of the financial systems globally. Between the years 2008-2009, the capitalist system in Europe and the United States suffered a shock that shook the foundations of its financial institutions and threatened to bankrupt its systems.
The present find the causes of global crisis, relate the global capitalism with other economic models, and to respond to the theory whether, capitalism is the better ideology in the economic systems, its advantages and disadvantages over the other types of economic ideas. Theory of global capitalism It starts with the global capital mobility that allows capital to reorganize production all over the world, allowing maximization of profit-making opportunities.
This means that the systems of production are fragmented into the global circuits of accumulation. Production is moved to different countries where production is cheaper (Foley, 2012). However, this global decentralization has taken place alongside the centralization of command and control of the world economy (Pabst, 2012). Economic organizations merge with political counterparts, and the leaders start to think of themselves and how to live in new ways these leaders for a new ruling class of global elites regardless of their nationality (Shinjiro et al. , 2012).
The unifying of the world into a single mode of production form globalization (Hope, 2011). However, the new form global capitalism operates with difficulty, with conflicts arising between the rich and the poor, conflicts of control between the elite group and the global poor and the marginalized (Pabst, 2012).
Dunn, B 2014, The Political Economy Of Global Capitalism And Crisis, Abington, Oxon:
Routledge, Discovery eBooks, EBSCOhost, viewed 22 September 2015.
Harris, J 2015, 'Global Capitalism and the Crisis of Humanity', Race And Class, 4, p. 95,
Academic OneFile, EBSCOhost, viewed 22 September 2015.
Foley, D. K. 2012. ‘The political economy of postcrisis global capitalism’. South Atlantic
Quarterly, 111(2), 251-263
Hope, W. 2011. ‘Crisis of temporalities: Global capitalism after the 2007–08 financial collapse’.
Time & Society, 20(1), 94-118.
Pabst, A 2012, The Crisis Of Global Capitalism : Pope Benedict XVI's Social Encyclical And
The Future Of Political Economy, Cambridge, U.K.: James Clarke & Co, Discovery eBooks, EBSCOhost, viewed 22 September 2015.
Rosenbloom, J 2015, 'Screpanti, Ernesto. Global imperialism and the great crisis: the uncertain
future of capitalism', CHOICE: Current Reviews for Academic Libraries, 5, p. 862, Literature Resource Center, EBSCOhost, viewed 22 September 2015.
Shinjiro, H, Dymski, G, Yagi, K, & Yokokawa, N 2012, Crises Of Global Economies And The
Future Of Capitalism : Reviving Marxian Crisis Theory, Hoboken: Routledge, Discovery eBooks, EBSCOhost, viewed 22 September 2015
Walter, I 2015, 'Robinson, William I.: Global capitalism and the crisis of humanity', CHOICE:
Current Reviews for Academic Libraries, 7, p. 1200, Literature Resource Center, EBSCOhost, viewed 22 September 2015.