LENIN'S TOMB: Why neoliberalism persists - 0 views
leninology.blogspot.com/...hy-neoliberalism-persists.html
empire UK Britain politics finance industry capitalism neoliberalism
shared by Ed Webb on 18 May 10
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Finance has enjoyed hegemony in the past partially on account of its role in the British empire. Britain's overseas trading companies such as the East India Company or the Hudson Bay Company were based in the City of London, and it was the City's activities which financed the planters and traders. The capital's financial centre was the nexus between domestic producers and the colonies. Undoubtedly, finance has a similar role in today's imperialism, the mechanism by which surplus extracted in the 'periphery' is transferred to ruling classes in the 'metropole'. In fact, one of the reasons why the British government started to take a keen interest in consolidating the City's global role in the late 1960s was due to the loss of the colonies and the need to take on rising financial competitors, not least Wall Street.
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The fact of the matter is that there often hasn't been enough profit to be had in productive investment, while high-risk speculation has consistently delivered, and will continue to do so as long as the public bails the bankers out at moments of crisis. Just how much neoliberalism has delivered is suggested by the fact that by 2006, two fifths of all corporate profits in the US were accumulated in the financial sector - more than double the ratio at the height of 'Reagonomics' two decades before.