Theory and Practice of Crisis in Political Economy: The Case of the Great Recession in Spain

This paper addresses Marx’s theory of crisis in order to analyze the Great Recession in Spain, a peripheral economy within the Eurozone. It demonstrates that underlying the problem of the “housing bubble” is an incapacity to generate surplus value, which in turn explains certain particularities related to capital composition, productivity, wages, and finance. The article further carries out a critique of both orthodox and heterodox approaches that focus on (1) profit squeeze caused by labor market rigidities, (2) underconsumption due to stagnant wages, and (3) finances, interest rates, and indebtedness JEL classification: B14, E11, E20, E43, J30

Unproductive Workers and State Repression

Social Reproduction Theory, as advanced by scholars such as Bhattacharya (2017) and Ferguson (2019), is at its core a theory of the revolutionary capacity of “unproductive” workers such as teachers, nurses, and social workers who are disproportionately women and disproportionately employed by the state. However, Social Reproduction Theory overlooks the contradictory and antagonistic role of the state in the lives of people, as the reproduction of labor power in capitalism proceeds via antagonism and state repression. The task of teachers, nurses, and social workers is the production of not just any life but that of a docile, exploitable worker. JEL classification: B51, B54, P1, I3

China’s Escape from the Peripheral Condition: A Success Story?

This article explores the strategy of active interventions through which Chinese policymakers have created the conditions for pulling their country out of its peripheral status within the world economy. We find that the strategic use of exchange rate policy and the maintenance of extensive ownership in industrial assets by the national government have played a key role in cumulatively promoting the upgrading of technological capabilities of the national workforce since the mid-1990 onward. Economic data show support for the hypotheses of an increasing capacity of Chinese producers to gain access to oligopolistic technology markets. To the extent that this offers the opportunity to capture a slice of the technological rent hitherto reserved to the capitalist center, our study suggests that the growth of real wages in China will be consistent with the maintenance of the country’s external balance in the long run. JEL classification: L16, O47, J21, F13, B51

Economic Policies for Innovative Enterprises: Implementing Multi-Stakeholder Corporate Governance

Large corporations dominate economic and social life in the United States and around the globe. The mainstream corporate governance ideology of “shareholder primacy” claims that the exclusive purpose of a corporation is to generate returns for shareholders, which means that governance decisions should be exclusively in their hands. However, shareholder primacy lacks a theory of how companies innovate, and instead focuses solely on allocation of corporate profits, misunderstanding the relationship of shareholders to the twenty-first-century corporation. The theory of the corporation as an innovative enterprise—engaged in productive innovation by producing higher-quality goods and services for lower unit costs—is an accurate way to understand what makes corporations successful producers. Stakeholder theory from progressive legal scholarship illustrates specific corporate governance institutions that can assist innovation, including fiduciary duty, stakeholder participation in decision making, and equity ownership. This article contributes to the growing literature refuting shareholder primacy by utilizing the theories of the innovative enterprise and multi-stakeholder governance to propose reshaping US corporate governance to better to serve innovation in production and a balance of power in distributional decision making. JEL classification: B50, D21, G30, G35, K22

Rethinking the Formation of Public Distribution System: A Class-Focused Approach

Using the methodology of overdetermination, class process of surplus labor as the entry point and socially determined need of food security, we deliver an alternative class-focused rendition of the public distribution system (PDS) in India. We first surmise our theoretical framework to infer that the overdetermined and contradictory relation of class and social needs matter for PDS. Beyond the reasoning of being pro-poor, fair, or wasteful, we deploy this framework to reinterpret the formation of Indian PDS in the 1960s. Its demonstration requires revisiting the historical condition that shaped capital’s passive revolution through the post-independence Indian state and its subsequent crisis arising out of the contradictions and conflicts in the class-need space. We argue that PDS signals a case of success and not failure of capitalism.

In Support of a Renewable Energy and Materials Economy: A Global Green New Deal That Includes Arctic Sea Ice Triage and Carbon Cycle Restoration

A Global Green New Deal (GGND)—that includes Arctic sea ice climate triage and carbon cycle climate restoration, and that, following Eisenberger (2020), would move us toward a renewable energy and materials economy (REME)—is necessary to turn our current civilization and species-threatening climate crises into an opportunity to stabilize our planet’s climate and advance to a new, more equitable and prosperous stage of human development. Imminent, potentially catastrophic, global climate impacts of Arctic sea ice loss, the first global climate “tipping point,” are reviewed, and practical and efficient potential climate triage methods for avoiding this are summarized. Longer-term carbon dioxide removal (CDR) and carbon capture, sequestration, and use (CCSU) methods, that would move us toward long-term carbon cycle climate restoration, are presented. A general reframing of climate policy and specific GGND policy proposals—that include Arctic sea ice climate triage and carbon cycle climate restoration that would rapidly move us toward a REME and avoid increasingly catastrophic climate impacts—are proposed. JEL Classification: Q53, Q54, Q55, Q56, Q58

Neo-Dualism: Accumulation, Distress, and Proliferation of a Fissured Informality

A dominant strand of orthodoxy argues that the problem of the informal sector could be mitigated through the capitalistic growth process. But our observations on India are different—with an expansion of the capitalistic formal sector, as the economy grows, there is a proliferation of fissured informality. Using a structuralist macro-model, we provide certain explanations for this phenomenon, which are also tested empirically using Indian subnational-state and firm-level data. Thus, we explore both the short- and long-run effects of the expansion of the formal sector on the heterogeneous informal economy. While a section of the population is pulled into the advanced informal activities, a vast segment is pushed to petty production. Accordingly, the orthodox transition narrative is questioned and alternative policy and political possibilities are introduced. JEL Classification: O11, O13, O17, P48

Work Time Matters for Mental Health: A Gender Analysis of Paid and Unpaid Labor in the United States

Based on Midlife in the United States (MIDUS) survey data for 2013–14, this paper examines the association between work time (inclusive of both paid and unpaid work time) and the mental health outcomes of men and women in the United States, controlling for economic and social buffers, education, and demographic factors. In the United States, even though women constitute close to half of the paid labor force, they still perform the lion’s share of unpaid work. The findings indicate that total work time is positively related with emotional distress for women, while there is no statistically significant relationship for men. For women, the relationship between work time and mental health is primarily driven by unpaid work rather than paid work. Evaluating the relationship between mental health and both productive and reproductive work is critical to develop effective public policies toward gender equity and social well-being. JEL classification: I14, J16, J01