Reflections on World Economic Crisis Quotes

“It is ironic that Keynesianism originated as a weapon to combat depression, but became universally accepted and "successful" only during (and because of!) the postwar expansion. At the first sign of renewed world recession, Keynesian theory has proved itself to be a snare and a delusion that has gone into immediate bankruptcy. The resulting "post-Keynesian synthesis" is also the theoretical reason for the reactionary exhumation of the simplistic, neoclassical, and monetarist economic theory of the 1920s. This revival of old theory is highlighted by the award of Nobel prizes in economics to Friedrich von Hayek, whose theoretical work was done before the Great Depression, and Milton Friedman, whose lone voice echoed in the wilderness until the new world economic crisis put his unpopular and antipopulist theories on the agenda of business board rooms and government cabinet rooms in one capitalist country after another. The real reason for the recent interest in fifty-year-old theories is that capital now wants them to legitimize its attack on the welfare state and "unproductive" expenditures on social services, which capital claims to need for "productive" investment in industry, including armaments.”
― André Gunder Frank, Reflections on World Economic Crisis

“Increasingly economic historians can draw analogies between the development of the present crisis and the period between the two world wars, as well as the crisis of a century ago, which was associated with the so-called great depression of 1873-1895. The latter crisis resulted in the rise of monopoly capitalism and imperialism, but also the end of Pax Britannica, as Britain began its decline from world leadership in the face of challenges from Germany and the United States. The present world crisis seems to be spelling the beginning of the end of Pax Americana and may hold untold other major readjustments in the international division of labor and world power in store for the future.”
― André Gunder Frank, Reflections on World Economic Crisis