there has actually been massive inflation … but … in the prices of financial assets

Steven Welzer
Dec 7, 2024

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Up and down cycles of course, but the capitalist economy generally grew strongly circa 1500–2000. There were phases: mercantilism, colonialism, industrialism, and then globalization.

The dynamics were such that opportunities for growth dwindled over time. As growth slowed more and more investment went into financial assets rather than into real productive assets.

Money for financial speculation was available as the central banks tried to buoy economic growth. But the flood of money has mostly just resulted in inflation in the prices of financial assets:

Nasdaq index since 1985

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Steven Welzer
Steven Welzer

Written by Steven Welzer

A Green Party activist, Steve was an original co-editor of DSA’s “Ecosocialist Review.” He now serves on the Editorial Board of the New Green Horizons webzine.

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