Critiques of Capitalism Week 5

Growth as a religion Is a larger real GDP always preferable to a smaller real GDP?

Social Classes Is there a class system within the U.S. and does it affect the quality of life?

Large corporations Monopoly capitalism: system in which large firms dominate 51 of world’s top economies are corporations 200 largest corporations produce 27.5% of world output but employ 1% of world’s population

Price competition not relevant Large firms find other ways to compete: advertising, planned obsolescence, model changes,

Bretton Woods Agreement 1944 Established a system of fixed exchange rates. Breakdown

International Monetary Fund Founded as part of the Bretton Woods Agreement. A world central bank that would lend to countries that had balance of payments deficits at the fixed exchange rates.

Beginning of the end of fixed exchange rates … Richard Nixon closes the Gold Window in 1971.

Role of IMF under floating exchange rates Lending to countries that are experiencing runs on their currencies (e.g., Thailand 1997)

Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovenia, Spain A B C F F G G I I L M N P S S