Capitalism Research Articles

Economic Growth in a Cooperative Economy

Abstract We develop and formalise an equilibrium concept for a dynamic economy in which production takes place in worker cooperatives. The concept rules out allocations of workers to cooperatives in which a worker in one cooperative could move to a different cooperative and make both herself and the existing workers in the receiving cooperative better off. It also rules out allocations in which workers in a cooperative would be made better off by some of the other workers leaving. We also provide a minimum-information equilibrium-selection criterion which refines our equilibrium concept. We illustrate the application of our concept and refinement in the context of an overlapping-generation economy with specific preferences and technology. The cooperative economy follows a dynamic path qualitatively similar to the path followed by a capitalist economy, featuring gradual convergence to a steady state with constant output. However the cooperative economy features a static inefficiency, in that, for a given aggregate capital stock, firm size is smaller than what a social planner would choose. On the other hand, the cooperative economy cannot be dynamically inefficient, and could accumulate capital at a rate that is higher or lower than the capitalist economy. As a result, steady-state income per worker could be higher or lower in the cooperative economy. We also present an illustrative calibration which quantitatively compares steady-state incomes and welfare in a cooperative and in a capitalist economy.

The state role in the housing sector in Hamburg and Havana challenges and successes of the state's claim to control in different political and planning systems

AbstractHousing supply is a controversial topic across the globe. In Europe, for example, housing provision is fundamentally characterised by capitalist market economy. However, the intensity of state intervention differs significantly in the respective European countries. Germany is certainly one of the countries in which the state traditionally intervenes considerably in the housing market and attempts to control it through various measures. In addition, the stakeholders in the housing market are very different, and the housing market is highly segmented. In Cuba, as a rather atypical example for Latin America, where the housing market is largely liberalised, the housing market is very strongly regulated by the socialist Cuban state. In this article, we address the topics of housing supply by analysing the institutional framework conditions and the different levels of intervention in the very different systems of Germany and Cuba. In doing so, we find that the objectives at the planning and political levels in these two case studies are quite similar despite the major political and social differences. It has become clear, that there is a gap between the aspiration of the political-administrative planning system and the planning expectations of the citizens in both systems. However, it is also emphasised that the state's claim to intervene in the housing market and the regulations, production and financing conditions are very different. Using Vaus’s ‘most-different-case approach’, we emphasise for the two cities of Hamburg and Havana that although considerable successes have been achieved in both systems in terms of adequate housing provision, but major challenges still exist in both cities. The analysis has also made clear how important it is to combine housing policy demands with the realities of housing industry, real estate markets and urban planning perspectives.

Between Whale Teeth and the Moral Uses of the Sea: Considering Religion in the US Whaling Industry’s Extractive Zone

This article argues that the nineteenth century US whaling industry provides an oceanic perspective on extractive zones that illuminates their multi-sited, multiscalar nature where the local and global are deeply entangled. Further, I suggest that viewing this process through the underexamined lens of religion can contribute to a fuller understanding of the widespread, often neglected, impacts of extractivism. I take an 1845 sermon by liberal Protestant theologian Horace Bushnell, “A Discourse on the Moral Uses of the Sea,” read alongside the labors of the American whaling industry, as a mid-nineteenth century moment to consider the concealment of the natural resource extraction that is necessary for the production of the conditions of possibility for the imagination of “civilization” ideologically and theologically in the mid-nineteenth century. I look to the journey of whale teeth as they move between waste, items of trade in a global capitalist market, and powerful ritual objects in Fiji, assessing how the extractive zone as a contact zone also transforms religion, which in turn can be a location of agency and resistance. The article calls attention to the critical entanglements of indigenous and settler worlds, whose stories cannot be told separately from one another.

Consumer possessed: A comment on assessing Belk’s “Possessions and the Extended Self”

While outstanding in observing the contemporary experience of being a “consumer” to become a “canonical article” in consumer research, as Thompson deftly analyzes, Belk’s “Possessions and the Extended Self” is subject to varied traps of remaining within the “mainstream marketing’s ideological boat.” This commentary attempts to highlight these ideological traps as we hopefully escape contemporary capitalism’s system of production of consumer subjectivity.

The Economic and Social Capital Factors in the Victory of Independent Candidate Pairs in the 2020 Regional Head and Deputy Regional Head Elections of Metro City

Based on KPU Regulation Number 1 of 2020 which regulates the nomination of regional heads and deputy regional heads in the 2020 simultaneous regional elections, there are changes to the nomination requirements from the individual path. Data on the results of the 2020 regional elections show that there were six individual candidate pairs who won the elections, one of which was in Metro City, Lampung province. The victory of individual candidate pairs in the Metro City regional elections can be said to break the dominance of candidate pairs from political parties who always win elections. This research examines the victory of candidate pairs Wahdi and Qomaru from the perspective of political, economic and social capital. The theory of capital refers to Pierre Bourdieu (1992), and is supported by the theory of political capital from John A. Booth and Patricia Bayer Richard (1998). The research method is qualitative with primary data collection through in-depth interviews. The research findings show that social capital (grassroots network), and economic capital (capital control) became the main factors of Wahdi and Qomaru's victory, which succeeded in defeating a pair of candidates from political parties, making it the first time Metro City was led by a mayor and deputy mayor not from a political party.

Global value and wealth chains in contemporary capitalism: Editorial introduction

This introduction to a special section on global value chains and global wealth chains elaborates on the concept of entanglement as a way to understand dynamics of value capture, accumulation and inequality in contemporary capitalism. The authors first review the analytical framework they have proposed for analyzing entangled chains based on two dimensions: 1) the relative importance of intangible versus tangible assets; and (2) the primary strategy of lead firms – specifically, whether that strategy is oriented towards value creation or wealth accumulation activities. They then briefly discuss the four papers comprising this special section which collectively advance our knowledge of how production and finance are imbricated in the global political economy.

Riding out the Storm: How State-Owned Enterprises in China Fought the COVID Crisis

The COVID-19 pandemic disrupted economic and social activities worldwide, exposing and exacerbating inherent flaws in the capitalist system. The pandemic’s devastating impact highlights the need for the state and its institutional agencies to actively intervene in public health crises and mitigate the economic damage they cause. This article situates the effectiveness and contribution of state-owned enterprises (SOEs) in the context of the COVID crisis in China. It first examines how SOEs successfully mobilized their productive capacity at the beginning of the pandemic. Using empirical evidence from publicly listed companies, we then demonstrate how SOEs engaged in countercyclical investment when private investment collapsed. The evidence suggests that SOEs served as a crucial instrument in strengthening social and economic stability, which helped China ride out the COVID storm. We conclude that SOEs are vital for achieving stable social and economic performance in a neoliberal global economy. JEL Classification: E11, O47, P31

Law, Commodification, and the Distribution of Resources

Abstract By exploring the historical and theoretical underpinnings of law as a source of distributional inequities and resource depletion, in tandem with its influence on investment in tangible and intangible assets in contemporary capitalism, this special issue paves the way for new understandings that might better promote shared community interests in sustainability and social equality.

Income Distribution and the Elasticity of Substitution in the Works of Joan Robinson

ABSTRACT Independently devised by John Hicks and Joan Robinson, the elasticity of substitution (σ) plays an important role in mainstream theories of inequality. This paper examines the role of σ in Robinson's writings, charting the differing ways in which she used it to examine questions of distribution. Robinson initially applied the concept to examine distribution in a Keynesian framework, proceeding to downplay its importance later on in spite of having played a central role in its formulation. Her criticisms of the nature of neoclassical production functions led her to dismiss mainstream theories of distribution as tautological, while seeing σ as an expression of the potential for rising profit shares under full employment. The use of a single parameter such as the substitution elasticity in mainstream frameworks neglected the important role played by investment and institutions, drawing focus away from an understanding of the ‘rules of the game’ that determined distributive shares in capitalist economies. Given the primacy of σ in discussions today — in textbooks and in the works of economists such as Thomas Piketty — her writings offer an important critique of established frameworks, while also advancing alternatives that stress the role of institutions and class conflict in modern economies.

국내외 교육 커먼즈 연구에 관한 체계적 문헌고찰

Objectives This study aims to identify the landscape of discussions on educational commons in domestic and international research, discover the value of educational commons, and explore its applicability. Methods A systematic literature review was conducted on 28 studies related to educational commons (5 domestic and 23 international). For data collection, various combinations of the keywords “education” and “commons” were searched on academic databases, including RISS, KISS, SCHOLA, eArticle, DBpia, domestic and international university libraries' databases, and Google Scholar. The searches were conducted twice between January 19, 2024, and January 26, 2024. The final selected literature underwent a process of planning, screening, extraction, and implementation, with frequency analysis conducted using SPSS 18. Results Research was minimal from 2008 to 2018 but increased from 2019, with the most studies conducted in 2023, sparking related discussions. All studies proposed educational commons as an alternative educational framework based on concerns about capitalist and neoliberal educational systems. The most common research methods were literature reviews and case studies. The main trend was that discussions on educational systems emerged as a key debate surrounding educational commons. Interest in educational commons is growing in various fields, such as environmental and civic education. Additionally, the discourse on educational commons is expanding beyond schools to broader social contexts, covering from preschool children to adults. Conclusions Educational commons is confirmed to be a crucial concept for reimagining and realizing new education in the post-COVID era. However, to enhance both the quantity and quality of discourse on educational commons, it is necessary to 1) reach an academic consensus on the scope of the concept of educational commons, 2) engage in more fundamental discussions on educational commons, and 3) consider the discourse within the context of a digital-based society. It is suggested that future research on educational commons suitable for domestic circumstances should accumulate both quantitatively and qualitatively.

A ‘New Social Virtuosity’; A Dissonant Manifest(o)

ABSTRACTThis paper examines the intersection of music, creativity, and society through the lens of a critical and self‐critical appraisal of the here.here concert series; ongoing research‐led collaboration focusing on transdisciplinary approaches to experimental music with a focus on the socio‐politico‐environmental dynamics at play between all involved in a musical encounter. The authors, both academics and composers, contend that experimental music, in its super‐local, interpersonal connections, can challenge the conventional and institutional, serving as an alternative to the homogeneity and self‐centred individualism fostered by capitalist systems. We propose the concept of a ‘new social virtuosity (“social virtuosity” in a music context was coined by Maggie Nicols in the 1970s to describe Feminist Improvising Group and their challenge of the “technological or instrumental elitism”; often dismissed by male musicians. (We came across it through the PhD research of one of our students Maureen Wolloshin),’ viewing the music landscape as a vast terrain where various musical, artistic, and creative directions intersect and converge, transcending presumed binaries. The paper foregrounds the significance of curatorial practice in bridging these differences and harnessing social dissonance, particularly in the context of the capitalist systems which enable these concerts. The authors argue that curation, despite its necessary interplay with these systems, can act as a tool to disrupt and question them. They explore how the act of curation influences social and political dynamics, examining its potential to create new ways of interaction and empowerment. This approach serves as a contrast to those systems that often cause disconnection and isolation. The authors reflect upon three case studies from the last two seasons of the here.here concert series that explicitly focused on the concepts of ‘ventriloquy’ and ‘social virtuosity’ as forms of creative agency: entering into critical dialogue with and giving voice to seminal works (Cage 4′33, Alexander J. Ellis (1814–1890)) for the former and three contemporary pioneers of ‘social virtuosity’—Eva‐Maria Houben—Maggie Nicols and Eddie Prevost for the latter. The concept of ‘social dissonance’ is examined, illustrating how it can be used as a catalyst for creative dialogue and solidarity, while also encouraging a deeper understanding of our shared societal dynamics. Finally, the paper introduces the concept of ‘a new social virtuosity’, emphasising the importance of listening, collaboration, and collective intention in creating a shared musical experience that expands beyond the stage to include the audience. It concludes by examining the performance of 4′33 within this context and underscores the power of dissonance as a tool for creative and critical thinking.

‘Unbecoming’ a Professional: The Role of Memory during Field Transitions in Japan and the USA

AbstractExisting scholarship documents how, in becoming a professional, such as a partner in a professional services firm (PSF), one's habitus comes into alignment with field expectations. Less understood, however, is what happens to habitus and, relatedly, to professionals' accumulated cultural, social, and economic capitals, as individuals ‘unbecome’ a professional and transition away from the field. We examine this overlooked phenomenon via individual and focus group interviews with partners retired from PSFs in Japan and the USA. We find that, in unbecoming a professional, aspects of ex‐partners' habitus may be misaligned with the field they operate in, prompting a hysteresis effect. The lack of fit of habitus with one's current circumstances is induced by ex‐partners' nostalgia regarding accumulated capitals, that is, wistful memories capable of structuring present and future actions. By demonstrating how nostalgia informs ex‐partners' experience of the hysteresis effect, this paper contributes to understandings of the importance of memory when detaching from one's profession. Furthermore, given that our investigation is carried out across two distinct cultural settings, we also theorize how country‐specific historical work arrangements may condition memory in professionals' unbecoming from PSFs.

Highlighting the Urgent Need for Reforms in the Face of Financial Failures at State-Owned Enterprises in Iraq

General Background: The financial analysis of companies' reports is critical for assessing their past performance, forecasting future results, and identifying operational strengths and weaknesses. Specific Background: Financial failure, which occurs when a company cannot generate adequate returns to cover costs and capital expenses, poses significant risks to stakeholders. For state-owned companies, the implications of financial failure are especially profound, given their integral role in national economies, such as Iraq's. Knowledge Gap: There is limited understanding of the extent to which state-owned companies in Iraq utilize financial analysis to predict financial failure, particularly in the context of economic transitions and privatization pressures. Aims: This study aims to evaluate the dependence of Iraqi state-owned companies on financial analysis as a predictive tool for financial distress and to identify the key factors contributing to their financial failures. Results: The research reveals that 42% of the companies examined have experienced financial failure, as measured by the Argenti index. Contributing factors include employment challenges, insufficient financing, and the transition from a socialist to a capitalist economy, which has left companies vulnerable to privatization. Novelty: The study provides novel insights into how economic transition impacts the financial stability of state-owned companies, highlighting the practical application of the Argenti index in diagnosing financial weaknesses. Implications: The findings underscore the urgent need to support state-owned enterprises by revitalizing the industrial sector, improving administrative efficiency, and adopting more systematic financial analysis tools. Additionally, the research recommends creating an accessible information center for investors and creditors, which would enhance transparency and support decision-making. This approach could help mitigate financial distress and attract new investment, ultimately contributing to Iraq’s economic recovery. Highlights: Financial analysis helps predict failures in state-owned companies. 42% of companies fail, based on the Argenti index. Privatization and economic shifts increase financial risk. Keywords: Financial analysis, Argenti index, state-owned companies, financial failure, privatization

Analysis of Extreme Daily Rainfall in Cotonou, Benin (West Africa)

Global warming has a global impact on the water cycle and in particular on precipitation. This work is devoted to the analysis of the variability of extreme rainfall in the economic capital of Benin. For this purpose, the 58-year daily rainfall data collected at the Meteo Benin synoptic station in Cotonou between 1960 and 2018 are used. The annual daily maxima was established for the analysis. The generalized distribution of extreme values ​​(GEV) is used to estimate the quantiles according to the defined return periods. The daily heavy rainfall had a normal character with return periods of less than six years in Cotonou, between 1960 and 2018. There was a marginal increase in frequency of extreme rainfall since the beginning of 21st century. Extreme rainfall events may lead to floods as seen in 2010. Therefore, pro-active short- and long-term measures are the need of the hour to cope up against rainfall variability under the global warming scenario.

Governmentality, Democracy, and Liberalism: Desire in Samrat Upadhyay’s ‘The Guru of Love’

In Samrat Upadhyay’s The Guru of Love (2003), the political and the personal intersect, with the novel as a genre exposing how they are interwoven. In the Nepali-American novelist Upadhyay’s novel, democracy and liberalism operate through the management and redirection of desires, instead of constraining them. The novel itself, as a genre, becomes the canvas for orchestrating this transformative process, engaging both characters and readers. Set against the backdrop of Nepal in the global south, The Guru of Love challenges conventional notions, suggesting that democracy’s efficacy does not hinge on industrialisation and education alone. Instead, democracy itself can serve as a potent political tool for nurturing a citizenry that favours such politics. As this novel shows, the key tenet of liberal and capitalist governance lies in the augmentation and regulation of the individual’s desires. Upadhyay’s novel is a testament to the celebration of individualism and shows the workings of capitalist and liberal deregulation as a mechanism for managing and channelling desires. It portrays how these political ideologies shape and mould the individual’s personal aspirations and society’s political paradigms.

Containing spaces for learning through experience: A psychosocial approach to co-operation.

This paper investigates one of the fundamental differences between a co-operative undertaking and a capitalist business: democratic participatory governance as opposed to hierarchical leadership. The latter often comes across as a ‘norm’ to be taken for granted. As such, co-operation is translated into the language of ‘team work’ and ‘staff consultation’, the domains of a successful capitalist company. Participation in co-operative governance, however, is more profound than this and requires an enhanced understanding of the somatic and affective qualities behind democratic decision-making. The paper suggests that a new language might be used to describe this difference, perhaps collective governance should be regarded as a virtue that can be recognised as working beyond values, even co-operative values. A further question arises: if indeed co-operative participatory governance is about relationships among equals, how can this be taught and/or learnt beyond the hard lessons of life experience? What can educational establishments do to teach people how to participate and govern by participating? The paper suggests that possible avenues of exploration in search of an answer to these questions might lie in a psycho-social approach that is able to encourage group learning from experience.

Circular vs One-Way Production Processes: Two Different Views on Production and Income Distribution

ABSTRACT This paper examines two distinct representations of production processes: circular production, where commodities function as both inputs and outputs, and one-way production, which starts with factors of production and ends with finished goods. These frameworks offer different views on profits. In circular systems, profits arise from surplus production, while in one-way systems, they appear to emerge from price differences between final goods and inputs. Using Sraffa’s price equations, we analyse the properties of both systems. We demonstrate that while one-way systems seem to allow for profit increases by raising prices, this is an illusion as it ultimately reduces real wages, the true source of profits. Additionally, we show that one-way systems become circular when real wages are fixed. Finally, the paper discusses how this distinction is important in understanding the shift from Walras’ general equilibrium theory to neo-Walrasian formulations. This study highlights the importance of circularity in the functioning of capitalist economies and its implications for the theory of distribution.

Social Reproductive Labor and Uto/Dystopia: An Analysis of Leila, Midnight Robber and Woman World

ABSTRACT Contemporary science fiction and speculative fiction with utopian/dystopian aspects from South Asia and the Caribbean have rarely been studied in tandem. Furthermore, no scholarly work has analyzed such texts produced under conditions of contemporary capitalism in the light of social reproduction theory which considers social reproductive labor that rejuvenates labor power. I study Leila (2017) by the Indian writer Prayaag Akbar, Midnight Robber (2000) by the Jamaican-born Nalo Hopkinson, and Woman World (2018) by the diasporic Indian writer Aminder Dhaliwal to connect social reproductive labor and utopianism and argue that social reproductive labor rejuvenates the labor power of utopian agents in social reproductive spaces such as homes, schools, hospitals, gardens etc. resisting dystopian conditions, nurturing hope, and rejuvenating utopian thinking. I question how utopianism is related to social reproductive labor in postcolonial contexts of the Global South, and propose that 1) dystopian scenarios are brought about by control of social reproductive spaces and 2) progress/betterment is actualized with renewal and rejuvenation via social reproductive labor. I contend that relating twenty-first-century utopianism to social reproduction is a valuable and novel approach, especially in postcolonial contexts where conditions of labor have been determined by complex histories of colonialism, enslavement, and indentured labor.

The use of games as playful pedagogical materials to problematize decolonial practices in educational environments

This article analyzes the relevance of working on decolonial issues through playfulness in mathematics. Methodologically, this is a bibliographical research, with a qualitative approach and reports of practices carried out with Youth and Adult Education classes and in Elementary School I. According to Educational Legislation, it is crucial to think about new methods that contribute to a movement of resistance and rupture in favor of the decolonization of schooling. In addition to contributing to the consolidation of mathematical concepts and countering patterns of Eurocentric colonial power, games provide reflections on conscious consumption, thus breaking with the capitalist system, which, according to Krenak, has the power of co-optation. Among the results and conclusions, playfulness in mathematics helps to promote inclusive education that values diversity.

A Tale of Two Economies: Diachronic Comparative Analysis of Diverging Paths of Growth and Inequality in the United States and the United Kingdom

This study investigates the correlation between the Gini index and gross domestic product (GDP) in two of the world’s largest capitalist economies: the United States and the United Kingdom. Utilizing econometric methods, including stationarity tests and linear regression, this research work aims to elucidate the relationship between economic inequality and economic growth. The results for the United States reveal a significant positive correlation between GDP and the Gini index, suggesting that economic growth is associated with rising income inequality. In contrast, the United Kingdom shows a much weaker relationship, indicating that other factors, such as redistributive policies and social welfare programs, may mitigate the impact of economic growth on income inequality. These findings highlight the importance of national policies and institutional frameworks in shaping economic outcomes and can be used in policy making. This study contributes to the existing literature by providing a comparative analysis of the correlation between GDP and the Gini index in two major capitalist economies, offering fresh empirical insights.