Globalisation, inequality and economic crisis

Abstract

As finance capital becomes multinational, it begins to exercise enormous influence on individual countries, by its capacity to shift away from a country that refuses to subordinate itself to its demands. As a result of the concessions it is able thus to extract, for example, free trade, withdrawal of welfare subsides, tax concessions to the rich, labour ‘reform’, and so on., inequalities have grown as real income of the working (and workless) populations decline, while profits rise. ‘Crisis’ in this situation becomes a normal phenomenon.