This article argues that the oil price shocks of the 1970s triggered a wave of global financialization led by Western banks and the US State that disconnected actual production from social reproduction in hundreds of indebted countries after 1982. It draws on a case study of Citibank lending in Mexico, the first country (of dozens) to default on the spate of cross-border loans spurred by new petrodollar (oil/gas debt) recycling strategies. I argue that this turn to fictive production—now ubiquitous as a neoliberal strategy—as well as the accompanying social exclusion that results, calls for rethinking the concept of “mode of production” in efforts to characterize late capitalism.
Continue reading
Tag Archives: Sandy Smith-Nonini
Sandy Smith-Nonini & Donald M. Nonini: Fueling the Neoliberal Turn: Why We Need to Engage Timothy Mitchell’s “Carbon Democracy”
A central, perhaps the central, question in political economy today is how forces of democracy, including organized labor and its allies, can regain a degree of control over corporate capitalism in the neoliberal era. Equally pressing (and related) is our need to confront climate change and replace fossil fuels with alternative energy resources. While the silos of academia have splintered political economy from studies of energy, the beauty of Timothy Mitchell’s Carbon Democracy lies in his eloquent and comprehensive study that merges these two essential aspects of industrial production and modern society into an integrated analysis.