This document summarizes key points from a talk given by Dr. Conor McCabe of UCD School of Social Justice on changes in capitalism over the last 25 years and the role of finance. Specifically, it discusses how finance has become a driving force for growth as productive investment has weakened, and how speculative finance emerged as a secondary engine of growth. It also quotes commentary on how economic recoveries may primarily benefit elites and increase inequality.

1. Dr. Conor McCabe
UCD School of Social Justice

18. Over the last quarter of a
century something
fundamental seems to
have changed in the way
in which capitalism works.
The tendency since 1970
has been towards greater
geographical mobility of
capital.

19. Rather than being a modest
helper to the capital
accumulation process,
[finance] gradually turned into
a driving force.
Speculative finance became a
kind of secondary engine for
growth given the weakness in
the primary engine, productive
investment.

23. “Part of the reason people get less giddy
about the Dow than they did five years
ago is that they have learnt a bit about
inequality.
what looks like a recovery, a rally or an
increase in consumer confidence may
just be the effect of elites passing money
among themselves.“
Christopher Caldwell, FT 9 March 2013

45. One company –
200 employees
One employee–
200 companies

69. Irish Executives in the six
lenders must have been
rubbing their hands with
glee as the State-
sponsored €400 billion
insurance policy covers
commercial, institutional
and interbank deposits,
and investors who have
bought some of their
debt.
The State guarantee
allows the six lenders to
borrow more freely and
more cheaply for short-
term funding that had
become scarce due to
the global credit crunch.

70. Mr. Lenihan said on
Tuesday that the
increase on the cap
on deposit
guarantees up to
€100,000 from
€20,000 last month
covered 97 per cent
of customer deposits
so the guarantee has
clearly been included
for the benefit of the
banks rather than the
savers…

71. “Denis Casey, chief
executive of Irish Life
and Permanent, said
the guarantee would
allow Permanent
TSB and the other
Irish banks covered
to borrow more
cheaply.
“The oxygen supply
for Irish banks was
being cut off and
healthy banks were
starting to gasp for
breath. This
guarantee turns on

72. “Eurostat, the EU
Commission’s data
agency has calculated
the cost of the
banking crisis in each
EU country. The
following focuses on
the cost to general
government budgets.
Ireland has really
taken one for Team
EU.”
A Really Really Special Case
Requires a Really Really
Special Solution
Michael Taft, 15 Jan 2013