A book about economic crisis

What is the cause of economic crisis

? There is not a one cause, but many. Perhaps, the more important is explained by Robert Brenner in a very useful book titled: The Boom and the Bubble: The US in the World Economy

This work offers a wide frame to understand the phenomena that are to the origins of crisis. According to Robert Brenner, the first causes of crisis would be over-capacity and over-production. During the first 1970s, firms and big companies, to survive the oil crisis, attempted to increase their plants and equipments. These enormous efforts took to a powerful growth of employment and gains. The high level of profitability lasted for all 1980s. At the end of that years and during 1990s, companies of US, Asia and Germany began to create a production made by imports and exports. In those years, rapid monetary fluctuations allowed to enter into new foreign markets that improved the trades shares of US and other developed countries. Market, at that time, was euphoric and believed that a similar shine could last forever. Instead, at the end of 1990s, with the advent of New Economy, a new age of production took the place of traditional economy. New technologies, PC, telecommunications, spread in every side of market, brought to believe that economy could exist with no real production. Brenner, through several chapters of book, asks himself if it is possible to have a good economy by considering only a new economy. The answer for this question may be discovered only by reading the book. The volume is suitable for who loves economic topics. Each chapter contains also figures and stats on years of upturn and downturn of US. Even if this book speaks about US economy, it may be useful to get the other causes of global crisis. In the middle of book, Brenner speaks also on financial economy and the role of banks related to lend of money to householder and companies. These latter, just at the early 2000s, invested their savings and capitals in equities and bonds. Financial investments were excessive and always made by thinking to over capacity and over production. But it is never a good thing to spend more than you earn. Today, the damages are under our eyes. I advise you to read Robert Brenner’s book. His work, published in 2003 by Verso, has 331 pages. Source image: www.versobooks.com