1. HOW TO SOLVE THE
CRISIS?
Alcím mintájának szerkesztése
Dr. Zoltan Pogatsa
24.5.2012
2. V or W shaped?
L-shaped:
• Corporate capitalism
• Corporate party financing
• State capture
• Unsustainable corporate, household and state
finances
• Crisis
24.5.2012
3. Rate of profit
Marx: falling
Reality: growing
Question: WHO WILL BUY THE PRODUCTS?
24.5.2012
4. Answers
1. Mediatised consumerism
2. Borrowing from the future (debt)
3. Ridding the state of resources (tax cuts,
offshore)
4. Geographical expansion (CEE, China, BRICS)
5. Environmental degradation
6. War
24.5.2012
18. Responses so far
• Anticyclical fiscal expansion
• Monetary easying (QE1&2, ECB)
• Austerity (Stiglitz, Soros, etc.)
• No regulation
• No sustainability
24.5.2012
19. Why don’t politicians act?
Finance
Chris Dodd, Chair of Senate Banking Committe
received $2.9mn from securities industry in
2007-2009, more than three times any senator
who was not a presidential candidate. („13
Bankers”)
Defense
Lockheed Martin is the biggest campaign
24.5.2012
20. How to solve the crisis?
Cut the nexus between
corporations and government.
24.5.2012
24. Greece
• 3-5% of GDP in Offshore (mainly Cyprus)
• Military expenditure: EU countries sold €1bn
worth of military to Greece in 2010
• Would need 6-8% growth to get out of
sovereign debt trap
• Will not happen with 5th wave of austerity
24.5.2012
