The U.S. Economic Crisis

A Marxian Analysis

in Theoria
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The U.S. economy’s high-tech sector (internet, computers, telecommunications, etc.) burst its classic speculative bubble in 2000. The Nasdaq stock market lost 40 per cent of its value during the year and lost another 20 per cent in the first quarter of 2001. The Nasdaq dragged down most other stock market indicators in the U.S. Trillions of dollars in U.S. wealth vanished. The wealthiest citizens turned away from the stock market as rapid losses replaced the absurdly high gains of 1999. Other U.S. citizens watched in horror as their recent expansions of securities holdings rapidly shrank in value (also confronting many with vanished savings and reduced retirement benefits since their pensions were invested in ‘history’s greatest boom’). See Appendix 5 for the details on U.S. stock ownership patterns. Industries began to scale back their investment programs as rapid growth shifted to slow growth and recession loomed. The majority of workers slowed their spending and their accumulation of debt because of falling stock prices and because they fear a recession’s impact on wages, benefits, and job security. All these negative developments are continuing into 2001.

Theoria

A Journal of Social and Political Theory

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