127 Cards in this Set
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Economics
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A complex price system that allocates goods and services.
1. equilibrium(supply/demand)
2. unit of analysis: individuals and rational maximize of utility
3. free exchange between buyers and sellers
4. focus on markets/exchange
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Geographical political economy
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A capitalist system of producing and dividing social wealth.
1. dynamic change, instability and crisis
2. unit of analysis: social relations, institutions and social classes
3. conflict between different groups with specific interests
4. focus on production/distribution and exchange
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GDP(gross domestic product)
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how much a country produces. doesn't include the black market or externalities
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Use value
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what use comes out of a certain commodity
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Exchange value
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items can be exchanged if their quantities equal the same value. money is the universal equivalent
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Value as socially necessary labor time
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value. Labor time, under normal conditions with average skill and intensity at once. A product of competition to increase labor productivity. Average production/labor time is based on competition.
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Commodity fetishism
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There's a definite social relation between man, that assumes the form of a relationship between things(Marx). The specific social character of each producer's labor doesn't show itself except in echange. Quantitative price levels= conceals real social labor that made a commodity possible.…
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Forms and uses of money
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Currency, Deposits, Credit: means of payment, unit of account, facilitates exchange. Stored of Value: wealth tranfered over time
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Money as social power
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Individual carries his social power, as well as his band with society in his pocket (e.g Seinfield, clip in class)
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Money and political power
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Money buys political aspects (advertising). Limits donations, money should be free speech. Public finance - tax.
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Money as Capital
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* Capitalism is summer up by the one single formula. 3-6-3 golf rule,
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How banking works
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Pays people small amounts to lend them money, then lending that money onto others for larger amounts.
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Inflation (causes/loses)
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- rate of general price in rising
Causes: economic expansion, labor costs, profits higher inflation, charges higher prizes
Loses: fixed income (specific class sectors, inflation goes up, wages go down)
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Monetary Policy
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A form of government regulation in which the nation's money supply and interest rates are controlled.
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2 characteristics of capitalism
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1. privately owned production for profit
2. workers get wages(but not ownership) in exchange for work
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2 classes of capitalism
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1.capital
2. labor
*majority is labor
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What is a Capitalist State?
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an economic system in which private individuals and corporations controlled the means of production and used them to earn.
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The state- what is historically and geographically specific to capitalism?
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- An institution that produces the conditions for market based on private forms of wealth appropriations.
Historically:
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Understand all 8 steps in the making of a capitalist state
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1) Destroy the commons. 2) Create legal and institutional framework for private property. 3) Enforce private property and markets. 4) Produce consent without force. 5) Deal with social costs and externalities. 6) Issue currency. 7) Provide National Defense. 8) Respond to popular pressure
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Capital
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control over and ownership of means of production(machines, technology, pays workers)
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Labor
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wage-labor is labor power as a commodity; free to choose job; must work to survive in world/economy; capacity to work is sold(makes it a commodity)
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Social reproduction
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The lives of the workers outside of the work place. Includes homework, leisure, biological reproduction, health, education etc.
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Value of labor power
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Subsistence to live/need to work to make a living; non-commodified labor stil valuable in the reproduction of labor
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surplus value(and how to increase)
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value of labor to capital -(minus) exchange value of labor(wages)
2 ways to increase it:
1. increase work intensity and work length
2. labor saving innovations(machines)
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Reproduction of labor
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the social practices necessary to produce a worker
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3 concepts of Capital
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Class - People who manage and control capital
Process - continuos flow of value
Thing - commodities, objects, fixed things
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Fixed vs. circulating Capital
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(contradiction between fixity and motion)
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Driving forces of capitalism
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Growth - business, wealth, profit
Competition - big vs small (apple vs windows)
Constant innovation and 'creative destruction'
Increase concentration of capital - larger you get, the more you produce.
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Crisis tendencies of capitalism
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1) Contradiction between production and realization of value, wage levels, make lover wages for more workers.
2) Financial crisis - fictitious capital premised on future value creation - morgages, loans, housing market
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What parts of nature does capitalism value?
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Agriculture, resources and raw material needs work for harvest. Live stock. Commodities that are part of raw material sector.
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What parts of nature does capitalism not value?
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Air, oxygen. Wetlands, atmospheric process, soil nutrient cycle. Classified as ecological process.
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Externalities
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Side effects of industrial or comercial activity that effects other parties without being reflected in the cost of the good. e.g Bangladesh sweat shops
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Climate Change
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Industry, transport, commercial, electric power. Pollution - Global warming. Factories - externalities
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Anthropocene
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Began when human activities had a significant global impact on earth ecosystems.
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3 perspectives on Growth on a Finite Planet
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1) Scarcity and Apocalypse - run out of resources
2) Market-techno optimism - Market will find a new thing
3) anti-capitalist - grow and people. Wast is good for growth. trash in ocean, throw away culture, food system and distribution.
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2 logics of power
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1) Territorial state power - Internal: education. External: Iraq, setting on to another territory.
2) Logical of capital - networks and flows of money and investment.
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World systems theory
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A view of the global economic system as divided between nations that control wealth and those that provide natural resources and labor.
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Spatial division of labor
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Concentration of production sectors/tasks in certain geographic areas.
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Contradiction between fixity and motion
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Fixed = Invest in factories
Motion = always moving
Deindustrialization - Detroit, cars now made in Japan and Germany
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The biological old regime
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Land- food, fiber, fuel, everything was from the land. Labor- Sweat and blood (muscles) biological systems that get tired. Ecological Constrains- everything relied on heat. Metal works had to draw energy from forests, wood (Charcoal)
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The industrial transformation of land and labor
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Labor- fossil fuels and automatic machinery, coal used to heat everything. Later on steam power. Coal stars in England and spreads.
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Uneven consequences for global power relations
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Balance and power shifts - China and India become most productive.
Military - Britain beat down China because of iron base steam boat. Make the most more efficient during batle
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Uneven consequences for new labor regimes
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Wage labor. Women and Children - now they could hire any one for much less.
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Internal vs. global explanations of the Industrial Revolution
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Internal- demographics; market culture; science
Global- coal (steam engines/coal mines); colonies (colonizing raw materials)
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Mercantile vs. industrial colonialism
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Mercantile (1492-1800)- luxury items
Industrial (1800-1945)- raw materials; working class diets
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Labor systems in colonial enemies
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Indigenous don't want to work for colonies because don't want to be slaves. Slave based plantation economies led to destruction of indigenous economies (kick out natives)
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From port to internal colonialism
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Global market + global trade. Coast: have access to the sea. Internal: railroads
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Imposing the nation-state
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1884 Berlin Conference: who would own what. Create laws and administrative state. Exploiting ethnic differences
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Culture and imperialism
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"civilization" versus "savagery". ring of process, education and improvement. E.g stolen generation in Australia. Aboriginals kids taken and stolen to make work
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Post colonialism and legacies of the colonial
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Not ruling for benefit of society. Continue in political organization of nation territorial states.
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Banana republics
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Plantation system, bacteria destro all plantation, segment plantation, land intensive
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Fordism basics
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Mass production and mass consumption. Social "regime of accumulation"
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Mass Production and Scientific management
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Mass production became popular which produced items in bulk and of the same kind. Increase in mechanization and the assembly line.
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Ford's $5/day wage
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Henry Ford wanted to pay his workers enough money so they could afford the cars they were producing
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Cause of Great Depression
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Mass production but no effective demand. Credit, banks fail. Cutting wages and the rise of communism.
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New Deal Institutions of Mass Consumption
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Federal Housing Admin(FHA) and Home Owners Loan Corp(HOLC). Made housing more affordable with low interest rates, low down payments and longer mortgages. Spent on roads/highways. Restructuring of banks to make credit cheap and available. National labor relations act (1935) and collective …
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Geography of Fordist Consumption
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Spreading out of metropolism so city people can get out to the country; access to the American Dream
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Fordist Exclusion
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National: white male workers win
Global: 1953 CIA backed coup of democratically elected socialist Mosaddegh of Iran. 1954 CIA backed coup of Guzman of Guatemala
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Bretton Woods System
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New Hampshire, in 1944, system provided foundation for postwar economic globalization, for the World Bank and the International Monetary Fund; based on the promotion of free trade, stable currencies, and high levels of capital investment.
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Cold War Geopolitics
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U.S allies with all countries upon free trade and private investment. Stopping communist expansion as main goal. The spread of American economic system, free trade, and American dominance of the system
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Neoliberalism
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Less government involvement, back lash against government that should control everything.
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Liberalism
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Belief that government can and should achieve justice and equality of opportunity
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Fordism in crisis
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Europe and Japan threatened competition. Stagflation: inflation and mass unemployment.
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Crisis as a "distributional struggle"
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Spending to much money.
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Neoliberalism ideology
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Price mechanism vs central control. Invisible hand of the market (free market). competition necessary, needs to be a fair market environment. anti-government and anti-monopoly
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Neoliberalism in practice
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Margaret thatcher/ronald reagan/ privatization of public services; deregulation(allows for more competition); monetarism (Volker shock) - raised interest rates and shocked economy into recession; breaking of labor unions; tax and spending cuts
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Consequences for workers
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Inequality: (bigger gap between rich and poor); poverty. For workers: hard to keep up a Fordist standard of consumption with stagnating income/wages(duel income working families, longer hours spent working, debt). job insecurity. Polarized labor market.
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Neoliberalism as a debt regime
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When countries in dept, trouble happens. Developing countries are borrowing money.
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Washington Consenus
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Deregulation, privatization, open global markets, fiscal discipline
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Post Bretton Woods Monetary Regime
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Could use gold as money, but not enough gold available. People started to believe the dollar is worthy - pure dollar standard.
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Dollar Hegemony?
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US can run massive balance of payments deficits. More dollar flowing out than money going in. Wall street the center if global finance
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Dollar and global imbalances
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China and USA: mass production of cheap consumer goods ---- mass consumption of Chinese imports. China investor in US. China holds huge reserves of dollars to purchase oil.
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Why it is not new?
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A world made by transnational corporations. Because of world trade. Makes it a smaller world with bigger opportunities.
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Globalization of industry
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Global supply chain. Worldwide purchasing, manufacturing, and selling
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Subcontracting
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Hiring local firms to distribute, produce or sell goods and services.
Apple and Nike: don't own the factories.
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Globalization of Labor
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People forced to move to the cities. Lower wages. Migration expansion. the growth and spread of investment, trade, production, communication, and new technology around the world.
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Time-Space compression technologies
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explains how quickly innovations diffuse and refers to how interlinked two places are through transportation and communication technologies. Through technology can cut down space and time.
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3 perspectives on uneven development
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1. Nature- environmental determinism; areas that lack basic resources to become wealthy
ex: sub-saharan africa has many resources but is underdeveloped
2. Culture- modernization theory: certain regions develop in a way because they are culturally (d)efficient
ex: European protestant ha…
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Capitalism and uneven development
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Dependency theory- to understand prosperity, you must understand that it depends on what type of area you're in: low wage zones, raw material production, spatial divisions of labor, unequal flows of wealth
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competition(pros and cons)
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pros: striving for better quality products; innovation and choice; growth
cons: cost cutting; externalizing costs; greed and fear
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economies of scale
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when average production costs tend to decline as volume of output grows
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guides of geography of investment
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-labor costs and quality: reliance on workers to do labor
-transportation and infrastructure
-taxes and legal environment(regulations): firms go where there are lower taxes and little regulation
-political environment: how stable the government/state is
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creative destruction
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joseph shumpeter Intentionally creating a productive environment that has consequences on others; actors are aware of effects; product becomes obsolete
ex: blackberry, VHS
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overaccumulation crisis
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contradiction between profit imperative, competition and effective demand; market is flooded with products but there isn't enough effective demand to buy those products. Individual gains will hurt system as a whole.
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unemployment
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happens when firms can't afford to pay all their workers sufficient wages as minimum wage rises.
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natural rate of unemployment
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capitalism needs unemployed people to discipline workers and instill fear of losing their jobs(gives incentive to work harder)
-U-6 rate= the total of unemployed + all the workers that are attached to the labor force + total part-time labor force
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The state(historically/geographically specific to capitalism)
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-historically: the separation of politics from economics
-geographically: territorial nation states(produced); Treaty of Westphalia(1648)-- not bounded entities and scales of governance= very clearly delineated borders for purposes of trade.
-2 forms of power:
1. state power-states ha…
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the state in the economy
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-physical security: protection of property
-legal basis for exchange and contracts(ex: Federal Trade Comission)
-state needs business("good business environment")
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the state and the "public good"
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-not automatic; a product of struggle; minimum wage laws and the value of labor power
-service provision; healthcare, education, fire, snow removal
-protecting labor(human capital); safety net; national labor relations board
-maintain critical infrastructure
-counter-cyclical economic…
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coercion and legitimacy
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coercion and violent force are sometimes necessary, esp in states that are underdeveloped
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hegemony
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consent of the governed. states use coercion and legitimation
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capitalism and democracy(benefits and threats)
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benefits: political freedom and economic freedom; marginalized can organize and influence policy
threats: media control; business and elections; voting and poverty; capitalism and undemocratic states
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biological old regime
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all forms of land and labor are rooted in biological forms of life. labor= manual power; land= food, fiber, fuel. "putting out system" and "cottage industries"(handcrafted in peoples homes). egological constraints= deforestation
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industrial transformation of land and labor
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labor now fossil fuels plus automatic machines. starts in England and spreads. land saving practices(use of less resources, finding new resources) ex: previously cut down acres of trees to burn to make coal, now mining to get coal= less land wasted.
Regime 1(1790-1840)- textiles and fac…
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consequences of industrialism
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-balance of power shifts= economic competitiveness(deindustrialization of India)
-military(opium wars; Britain developed iron based bun boats which were powered by steam, Chinese had no chance)
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consequences of labor
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the factory system and disposable labor.
-machines drive systems, not workers; machinery and investment; machinery and labor process; women and children start to work; cheap mass production=cheap goods; social resistence
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cultural effects of colonialism
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genocide, legitimation; race and improvement
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processes of subjugation
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1. destruction of indigenous subsistence economies(ex: famine in India)
2. theft of land; private property and enclosure of the commons (Dawes act of 1887); colonial state ownership(mineral economies)
3. slave labor(the congo rubber trade)
4. mass killing
5. unequal ecological exchang…
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imposing the nation state(example)
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1885 berlin conference- Nigeria: countless ethnic groups suddenly bounded together into one territory
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fordism basics
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20th c. capitalism(1890-1973). a societal regime of accumulation. mass production for mass consumption. large role for state intervention(Keynesianism)
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mass production and scientific management(Taylorism)
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increasing mechanization(assembly line); increasing divisions of labor: separation between manual(machines) labor and mental(planning) labor. Trained gorilla. subjected manual workers to intense work discipline and time management. Contradiction: overaccumulation crisis(contradiction betw…
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Ford's $5/day wage
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Henry Ford wanted to pay his workers enough money so they could afford the cars they were producing
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Great Depression cause
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hits in 1929. mass production but no effective demand. mass labor unrest. rise of communism
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new deal institutions of mass consumption(keynesianism)
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Federal Housing Admin(FHA) and Home Owners Loan Corp(HOLC). made housing more affordable with low interest rates, low down payments and longer mortgages. $4.2 mill in federal expenditures on roads/highways. restructuring of banks to make credit cheap and available. National labor relation…
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Fordist exclusion(national and global)
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national: white male workers win(US)
global:1953 CIA backed coup of democratically elected socialist Mosaddegh of Iran. 1954 CIA backed coup of Guzman of Guatemala
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fordism in crisis(why?)
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US rigidity and intensified competition from Europe and Japan(Germany and Japan had just been crushed after WWII so by the 60s they were starting to rebuild themselves). Stagflation(inflation and unemployment). political crisis of fordist-keynsian welfare state
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role of price mechanism
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a free market could coordinate the activity of millions of people in a way to make everyone better off.
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neoliberalism in practice
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Margaret thatcher/ronald reagan/ privatization of public services; deregulation(allows for more competition); monetarism(Volker shock)- raised interest rates and shocked economy into recession; breaking of labor unions; tax and spending cuts
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explaining neoliberalism
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economic globalization(technology). cultural production. political organization(political action committees-- PACs). populist anger towards taxes and big government(tax revolt of 1978)
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import substitution industrialization
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Depression's legacy meant you cant rely on a globalized market because its prone to crisis, so every country must focus on their own national economies first. Anti-colonial economic nationalism. protected national markets through tariffs for imports.
problems: monopolies created rigidit…
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export oriented industrialization
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low wage production for foreign consumer markets. "the world factory" and "global laptop"(parts from a laptop come from all over the world)
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new international division of labor
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design marketing and information technologies in global North. outsourcing manufacture to low-wage global South. de-peasantization--> new pools of cheap, disposable labor. feminization of global factory labor.
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deindustrialization of the core
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contradictions of Fordism: strong regulations, high wages, rigid industrial organization made market go from mass production for mass consumption to just mass consumption. the US consumer economy as a global "cash register" directly affected producing countries' economies
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capital led model(export processing zone)
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unregulated spaces(customs, tariffs, labor laws, environmental laws). enclave economies(corporate control for global market). maquiladoras and export processing zones. zero regulation=cheap labor and cheap products.
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state led model
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state-led export industrialization. key players are "Asian Tigers"(Japan, Singapore, Taiwan, South Korea). from labor intensive consumer goods to capital intensive(ex: garmets and shoes to ---> steel and chemicals) EX: South Korea- an authoritarian state; state control of credit; subsidie…
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development complex
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big institutions in first world countries have many headquarters and bases in underdeveloped countries
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shifting meanings of development
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integrating in a global market(neoliberal goal) and countries to firmly embed themselves in the global market
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cold war model
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development through state coercion. Ex: Indonesia. US and Britain supported miitary coup in Indonesia to install General Suharto(authoritarian capitalist). to create a climate in which private enterprise and developing countries could work together for the greater profit of the free world…
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neoliberal model
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the debt regime. failure of import substitution industrialization as global markets integrate and increase competition. ISI's get critiqued. Developing countries borrowing bonanza in 1970s-->petrodollars
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petrodollars(role in debt)
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cheap oil created a huge windfall of oil money in the market which kept getting recycled back into the market and created a boom of cheap capital
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the volker shock
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1981. central banks hiked up interest rates for borrowing and financing, making credit hard to get. drove the economy into a recession(decreased investment due to high increase of interest rates)
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structural adjustment
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1980s-1990s. the IMF(international monetary fund) demands reforms for indebted countries such as (Washington Consensus): deregulation, privatization, open global markets, fiscal discipline
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debt, discipline and democracy
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structural adjustment, open global markets, fiscal discipline
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World trade organization and other mechanisms of 'global governance'
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WTO reduced barriers to trade so all countries could have harmonized tax and trade laws. NGO-ification of public services. global finance
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commodity exports(road to development)
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manufacturing vs commodity exports. price votality. agro-export model in coffee in vietnam( coffee price collapsed in late 90s, coffee farmers out of business because of overproduction and overexport of coffee)
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the world farm
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more countries develop monoculture food production; millions of acres used to feed poor families now used to grow unusual fruits for upper/middle class consumers
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mineral extraction-state-capital relations
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state ownership of subsurface materials. states become desperate for foreign direct investment. contracts negotiated with international mining firms to extract minerals. state gets partial royalities and taxes. local displacement and state corruption
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GEO 273: EXAM 2