The Crisis of Neoliberalism, by Gérard Duménil and Dominique Lévy

Abstract

In The Crisis of Neoliberalism, Gérard Duménil and Dominque Lévy argue that the global financial and economic crisis should be understood in terms of shifts in the relationship between finance and nonfinancial firms. In modern capitalism, finance is the representative of the capitalist class as a whole vis-à-vis the management of productive enterprises. The current crisis is distinct because it follows a period of intensified financial hegemony. Unlike previous crises, the crisis of 2007–2008 was not caused by falling profits, nor was it the result of any shortfall of consumption demand. Rather, it was the result of the overdevelopment of financial claims on real activity. The most likely outcome of the crisis, the authors suggest, is a “neomanagerialist” regime in which finance loses much of its power and the managers of nonfinancial firms and national states regain their autonomy.

Key Words:

• Capitalism
• Crisis
• Finance
• Managerialism
• Neoliberalism