Research On Financialization Of Capitalism And Financial Capitalism

A large number of economists have analyzed the cause of the crisis after outbreak of U.S. subprime mortgage crisis in2007, financial crisis of the capitalist world in2008, the euro zone sovereign debt crisis in2009.Mainstream economists focus mainly on exogenous factors and policies, and not on institutional analysis.Based on the Marxist political economy, this paper will focus on institutional analysis, explore the relationship between production and finance under the capitalist mode of production and point out capitalist economic system itself is the deeper cause of the crisis.The paper points out that the fundamental reason of both the financial crisis and the debt crisis exists in the basic contradictions inherent in the capitalist mode of production between capitalist private ownership of production materials and socialized production.Financialisation gives the economic crisis as a forced solution of basic contradiction of capitalism the specific form of the financial crisis and the debt crisis.To correctly understand the financial crisis and the debt crisis in the capitalist world today, we need to re-look at capitalism "de-industrialization" and "financialisation", the paper will interpret the nature of these processes from the capitalist system itself. Followed Arrighi’s view, in this paper the concept of financialisation will be interpreted as change in the pattern of capital accumulation that profit obtained through financial channels rather than through the production and trade channels.The paper treat the financialisation of the United States as the fourth capitalism system accumulation cycle that United States is the center and each system accumulation cycle composed of two stages:material expansion phase and financial expansion phase.When the center entered into financial expansion phase.the system faced crisis, as the system accumulated Center Genoa, the Netherlands, the United Kingdom and the United States were unable to escape this rule.Historically, Genoa, the Netherlands, the United Kingdom entered into the financial expansion stage,when they lost the competitive advantage of production and trade and today United States is experiencing the same financial expansion.In a short period of time, financialisation and de-industrialization helped to the restoration of the Centre profitability that in long-term difficult to continue. Accompanied by the rise of the new center, the old center will be replaced and fade.Judging from the course of the development of capitalism, the countries as center of the system accumulation were difficult to get rid of the final financial expansion trend. After all, financial capital can not directly create surplus value, so the source of profits of financial capital lies in surplus value created by industrial capital, which leads to contradictions between industrial capital accumulation and financial capital accumulation.This will certainly lead to changes in relationship between employers and employees, the capital and market and government, so financialisation of capitalism actually brings the comprehensive transformation of capitalism. The paper establishes a Marxist theoretical framework to explain the financialisation mechanism, based on the meaning and essence of capitalist financialisation. This framework consists of three levels:the internal conditions of capitalist financialisation, exteral driving factors of the outer loop of the capitalist financialisation and the system driving factors of capitalist financialisation.Based on analysis of mechanism of capitalist financialisation, the paper discusses the inherent relationship between industrialization, de-industrialization and financialisation and points out that industrialization is the basis of the financialisation and de-industrialization is the demand condition of financial expansion. Based on the analysis of internal mechanism of financialisation,the paper makes theoretical and empirical analysis of financialisation of U.S. economy.In this paper, from the perspective of financialisation, financialization as a solution to the basic contradiction of capitalism led to the outbreak of the financial crisis, at the same time, debt crisis has become a specific form of financial crisis. As a mandatory solution to resolve the basic contradictions of capitalism, financial crisis is a unique movement of the basic contradictions of capitalism and the inevitable result of the development of capitalism to financial capitalism stage.The main contents are as follows:Chapter Ⅰ is the introduction, introduces the background, significance, researching methods, the main contents as well as the innovation and prospects of the paper; Chapter Ⅱ is about the connotation and nature of the capitalist financialization, financialization connotation is summarized from three angles, and points out the connotation and nature of financialisation; Chapter III investigates internal driving factors of financialization in capitalist mode of production based on the Marxist theory of monetary and financial theories; Chapter IVexplores the outer loop of the capitalist financial conditions,from the piontview of capitalist accumulation system,analyzes the relationship between industrialization, de-industrialization and financialisation, and the reasons for the expansion of the capitalist system and mechanism; Chapter V explores the relationship between the financialisation of capitalism and neo-liberal economic system, and points out the rise of neo-liberal economic system start the process of financialization; Chapter Ⅵanalyzes performance and mechanism of U.S. financialization,points out performance, driving factors as well as mechanisms of the U.S. economy; Chapter VII explores relationship between financialization and financial crisis of capitalism, discusses the basic contradiction of capitalism that dampens the financialization of capitalism, de-industrialization, intensified labor conflicts and global economic imbalances led to the outbreak of the financial crisis in2008. ChapterⅦ explores relationship between financialization and sovereign debt crisis of capitalism,and points out financialisation is the cause that led to the occurrence of the debt crisis;Chapter IX explores the nature,feature and future of financial capitalism.This paper is trying to reveal the future direction of the U.S. economy from the piontviews of "re-industrialization" strategy implementation and the unsustainable dollar hegemony.