Essay prompt:
You have been introduced to many theories of crises in capitalism in the early part of this course. One group comes from orthodox neo-classical economics, largely—if not entirely—derived from the theoretical framework of micro-economics. A second theoretical approach was developed within Keynesian macro-economics. A third group of crisis theories derives from the Marxist critique of liberal political economy. Finally, Polanyi provides a more sociological and anthropological theoretical critique of liberal capitalism (and by extension of neo-liberal capitalism) and its crisis-prone character.
We have also covered a set of historical crises, or more precisely periods of crisis, beginning with the emergence of liberal capitalism in the U.K. during the early to mid-19th Century, and then examining the global economic crises of the 1870s, 1890s, and the Great Depression of the 1930s. The crisis of the 1970s was arguably of a very different sort with respect to its characteristics, dynamics, and severity, though its ramifications were far-reaching and enduring. We have also covered crises in Japan and East Asia that are more national and/or regional in character, though they too had and have broader long-term implications for the global economy.
Write a 7-8 page paper on which theory or theories you find most compelling, persuasive, and illuminating in accounting for the crises we have covered. You need to choose one or a small sub-set of the theories introduced; saying, in effect, “all of them” will not do. In writing this paper, consider the strengths and weaknesses of the theory/theories. Also consider whether some theories explain different global economic crisis better than others, the relationships among different theoretical explanations of crisis, and the practical implications of different theories for politics and policy in response to serious economic crisis.
