Chicano

Aldo Fuentes

Essay - extra credit



“Financialization of the World Economy”.




The financial crisis must be sought in the financialization, i.e. in the process of domination, internationally, the market of financial flows on the trade market real products as a result of a much larger economic weight of the former over the latter in the contextof a market inseparable. Financialization and benefits of the technological innovations of recent years (especially the Internet) that have led to an acceleration in the volume of transactions. The continued growth of the economy in the second half of the twentieth and early twenty-first have made fundamental constituent societies, and to finance in the core of the economy. So on the one hand, thepossession of goods and purchasing power, determine the power and the risk of social exclusion and govern the destinies of people. On the other hand, in an open and mobile, finance transforms a interpersonal trust in the institutions guaranteed by the market liquidity. The financialization of the global economy begins to take shape with increasing the amount of money and the demand for dollars asa solution to remake the world after World War II. This financial order explodes in mid-seventies, resulting in a major crisis, which would mean the rise of neoliberal doctrine as "correction" of policy failures and the issue of massive borrowing economies. Within the current phase of financialization not only sets a new dynamic profile and economic forms in an old model but also a period ofreorganization of the competition between fractions of capital in the configurations of dominant network company, culminating in a subordinated integration of industrial and commercial fractions, implying a special appropriation of surplus for the banking and insurance, real actor mercy of the concentration of capital. But the real key is not found primarily in the rearrangement of "cooperation andhierarchy" bourgeois, but in deepening the processes of extraction of surplus value, and thereby increasing the rate of exploitation. Extraction of surplus value extortion and social degradation, and reorganization of the wage relation, the development of public policies to regulate flexible and extent of social reproduction mechanisms that will push most people to be available, employable andadapted to the industrial relations framework with increasing demands, less compensation and fewer social rights networks.
The cornerstone of this dynamic eventually be supported on the back of the direct producers, mainly the working class, which ultimately is the one who suffers from the restructuring, the vulnerabilization of living and working conditions, outsourcing and outsourcing,precarious and job insecurity, the erosion of their direct and indirect wage levels, or deterioration of health and welfare. In short, not only changing the regulation and government intervention, not only generate new forms of appropriation of surplus (against long-term structured investment and against direct producers with limited resources market penetration), but this is results in increased laborexploitation, social and environmental in new forms that are worth exploring. finds that investment rates are increasingly fragile. This is because the recovery of the average return rate could not compensate for the retention and diversion of the surplus to "shareholders, creditors and owners of funds”, the clear detriment of economic growth itself. The rate of retained earnings, effectiveindicator that moves the investment drops. This indicator speaks of excess free from interest and dividends paid, and therefore susceptible to rollover. This is the true meaning of financialization, a symptom of the crisis, investment barrier, ballast enclosing the collapse of the global financial system, which determines the real productive economic behavior and destabilizing macroeconomic dynamics in...