Neoliberalism — a short respite for capitalism

It is commonly argued that the economic crisis, which began in 2008 with the collapse of Lehman Brothers, was the result of the preceding decades of neo-liberal policies. In this article Soteris Vlahos argues that the origin of the crisis lie further back in time, in the crisis of profitability of real production that struck the world in the early 1970s. And furthermore, he claims that neo-liberal policies helped alleviate this. By creating unemployment and attacking the living standards of the working class, it attempted to restore profits. Then it dealt with the subsequent loss of demand by pumping fictitious capital into the system. However, this led the world into today’s even deeper and unsolvable mess.

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