Global Slump: The Economics and Politics of Crisis and Resistance

by David McNally

Investigating the global financial meltdown as the first systemic crisis of the neoliberal stage of capitalism, this analysis argues that—far from having ended—the crisis has ushered in a period of worldwide economic and political turbulence. In developing an account of the crisis as rooted in fundamental features of capitalism, this study challenges the view that capitalism's source lies in financial deregulation, and highlights the emergence of new patterns of world inequality and new centers of accumulation, particularly in East Asia, and the profound economic instabilities these have produced. This original account of the “financialization” of the world economy during this period explores the intricate connections between international financial markets and new forms of debt and dispossession. Analyzing the massive intervention of the world’s central banks to stave off another Great Depression, this study shows that while averting a complete meltdown, this intervention also laid the basis for recurring crises for poor and working class people: job loss, increased poverty and inequality, and cuts in social programs. Taking a global view of these processes, exposing the damage inflicted on countries in the Global South, as well as the intensification of racism and attacks on migrant workers, this book also traces new patterns of social and political resistance—from housing activism and education struggles, to mass strikes and protests in Martinique, Guadeloupe, France, and Puerto Rico—as indicators of the potential for building anticapitalist opposition to the damage that neoliberal capitalism is inflicting on the lives of millions.

Genres: Economics, Nonfiction, Politics, History

230 pages, Paperback

First published December 9, 2010

About the author

David McNally is the Cullen Distinguished Professor of History and Business at the University of Houston and director of the Center for the Study of Capitalism. McNally is the author of seven books and has won a number of awards, including the Paul Sweezy Award from the American Sociological Associaton for his book Global Slump and the Deutscher Memorial Award for Monsters of the Market.

Reviews

[Tiarnán · Rating 3 out of 5]

This book is uneven as the chapters cover various subjects with greater or lesser insight.

The first short chapter, a narrative account of the global financial meltdown of 2007-09 from a Marxist perspective, is good.

The second chapter, which gives a macro-scale account of the global economic developments of the 'neoliberal era' that presaged the 2008 crisis is very good. It's superior to most major 'Marxist' alternatives, including for example David Harvey's - particularly as it shifts the analytical lens from weak concepts like a 'neoliberal thought revolution', generic 'financialization' or 'spatial fixes', to more concrete issues of political economy: the real ruling class dilemma of the stagflation crisis of the '70s as being rooted in the contradictions of Keynesianism, a global crisis of profit rates, and increased real capitalist competition between the big industrial economies, among other factors.

My favourite chapter was actually the third, which is really just an overall introduction to key concepts in Marxist social thought: its micro-sociology of capitalism and class conflict, the accurate 'Political Marxist' historical account of its origins that draws on Marx's writing on 'primitive accumulation', a useful summary of Marxist crisis theory and its superiority to rivals such as Keynesianism, and the various political and ideological conflicts systematically generated by capitalism's dynamics and constraints. This chapter is really just an excellent up-to-date primer on theoretically accessible-yet-rigorous and empirically-grounded contemporary Marxism, and should be a must-read both for anyone teaching or researching in the social sciences, as well as leftist activists.

The final chapters are sort of broad overviews of questions of racial domination and political resistance to the neoliberal era. These were pretty lame and skippable. McNally has a tendency towards a vague hippy-ish idealism when it comes to tackling real questions of politics and working class re-formation - there are better alternatives out there that don't really on some never-going-to-happen rainbow coalition of NGOs, peasants, workers, union bureaucrats, race/gender entrepreneurs, unemployed, etc. In particular the analysis of Kim Moody and Charlie Post is much better in situating a more grounded account of the dynamics that could impel the re-emergence of the only social force actually capable of challenging global capitalism: a militant rank-and-file labour movement in the industries of the capitalist core.

Basically, the third chapter is worth the cost entry alone, while the second chapter is one of the better accessible long-term/macro introductions to the analysis of the 'neoliberal era' (1970s-2008) of capitalism. The rest of the book is solid but average.

[Tom · Rating 5 out of 5]

I think i finally understand what "securitizing" mortgages is all about, thanks to David McNally's clear discussion of the elements of bank behavior that led to the financial panic of 2008. This book is generally a first rate discussion of the crash and what is going on. His last chapter on resistance was a bit rushed but has some good aspects.

[Klejton · Rating 2 out of 5]

Pretty lazy intellectually to be honest. At some point in page 70, he tries to imply that “mainstream economists” (whoever these people are) seem to think that capitalists produce things out of their kindness of their hearts but he is here to tell us that they actually do it for profit! No shit, what a revelation. I am sure economists know that people invest in order to make profits, not because they’re inherently good people who just want to make stuff. Like he doesn’t even moderately try to argue against the actual arguments presented by his (and mine) ideological opponents.

This is written in a very dumbed down form and it gives the impression that the author is targeting those not familiar with Marx but if you’re not already bought into and familiar with Marx, this will not convince anyone because the author almost categorically refuses to engage with counter arguments in any meaningful depth.

[Jesse · Rating 5 out of 5]

I can't say enough things about how amazing this book is. The clearest, most accessible, and insightful explanation of the Great Recession, the post-war economy, and the rise of neoliberalism I've read. And, having read Marx's capital vol 1, McNally provides a peerless, concrete and helpful explanation of Marxist economics and his theory of capitalist crises.

[david · Rating 5 out of 5]

READ THIS BOOK. now. it's truly a gift from a radical political economist and activist to us. it is given in order to help clarify our world in order to change it.

[Jason Schulman · Rating 5 out of 5]

An excellent and very readable Marxist account of the world's current economic predicament, and a reminder that resistance to austerity is widespread and growing.

[Guillaume · Rating 4 out of 5]

Un livre très important, mais un peu inconstant et qui s'essouffle dans les derniers miles. De manière générale McNally offre des explications claires de concepts écono-politiques complexes, mais il en échappe par-ci par-là où certains paragraphes pourraient amener une bonne confusion chez les non-initiés, et la traduction de Martineau, très fidèle, semble répéter ces écueils par certains choix de termes alambiqués qui auraient pu être évités. Pour ma part j'ai eu la chance de me faire enseigner les grands traits de ce livre dans quelques cours d'université ce qui l'a rendu complètement intelligible, en portant une attention aux détails j'ai pu en approfondir ma compréhension.
Le sujet de base est la crise économique de 2008, mais ce qui est intéressant, c'est comment McNally ratisse large pour en montrer les fondements. Ce livre offre la meilleure explication condensée de ce qui a formé l'essence du néolibéralisme pour la période 1979-2008, en plus d'offrir une solide théorie des crises économiques capitalistes contemporaines, basée sur celle de Marx, ainsi qu'un portrait de la forme et des lieux de la colonisation du capitalisme moderne. Pour ces aspects, ce livre est un must : de l'intro jusqu'à la moitié du chapitre 5, où McNally tombe dans une longue tirade quasi-éditoriale contre la Chine, puis enchaîne le chapitre 6 et la conclusion dans un optimisme assez idéologique face à "de nouvelles gauches", imprégné de raccourcis et de fausses équivalences. La postface à l'édition française de 2013 est toutefois un ajout substantiel, environ 12 pages de contenu auquel il faut absolument porter attention, où certains enjeux d'économie politique sont ajoutés et où les grandes visions du chapitre 6/ conclusion sont remis en perspective et en nuances.

[Mimi Norton]

I read chapters 2 & 5 to learn about neoliberalism in preparation for the Socialism conference tomorrow (where the author will be speaking). I’m learning a lot!!

[Jeff · Rating 4 out of 5]

Similar to 13 bankers, econned, and other books related to the 2007-present financial crisis. The author writes from a background of radical political economy. Financial regulation was necessary, but not sufficient (even if fully implemented) to staunch the "human recession" that is continuing to occur due to the savages of the relations of capital. While the book wasn't as thorough as other books on political economy in describing the minute details of the crisis, it did provide provide a broadly accurate understanding with a coherent message. The author looks hopeful that a new left in the global north will emerge, as it has in the struggles of the global south. I personally do not think that this is such a naive hope: that "another world is possible". One need only look at the current headlines to see that when backed into a corner, people come together to fight injustice. If I were to write a book about our current financial/economic/political/social times, this book would be it.

[Jordan McPeek · Rating 5 out of 5]

Really clear description of the crisis in understandable language. The last couple chapters veer off to look at the social relations that created (or is that, were created by?) the crisis, and the hope for change. Very pessimistic, yet hopeful that a better world will arrive one day, after a long period of laying the foundation for radical change. Great foundational book that brings together a range of topics for the developing radical mind. In particular for me, it explains why I should care about migrant justice.

[Dean Ray · Rating 3 out of 5]

An engaging and critical look at the 2008 financial crisis. The links to race and culture are poignant. Is a bit heavy on the construction of resistance without a praxis or telos. You'll learn something.