Professional Documents
Culture Documents
Hyman P. Minsky*
May 1993
I participated
in the
21st
of Bard
60th
the
Century
College
at the Jerome
Levy
4, 5, and
of the
inauguration
as President
60th
on Financing
on March
anniversary
Roosevelt
in a Conference
anniversary
Economics
Institute
March
6 1993.
of Franklin
of the United
of the bank
Prosperity
States
holiday
4 was the
D.
and March
6 was
in the United
States.
The problems
problems
confronting
inherited
put
new model
half
Over
shown
dozen
term
resonate.
capitalism
States,
was
Roosevelt's
(1933-1937).
or so years
Although
as the
older
quite
period,
capitalism
needs
replaced.
Whether
of President
Clinton
years
first
the United
the past
completely
model
his
sixty
well
for
a century.
its age.
1929-33
capitalism
during
served
faced
President
a failed
in place
almost
Roosevelt
1933-1937
clearly
he realizes
down
model
our current
to be at least
Clinton
the
model
thoroughly
it or not,
is to discover
had
model
has
as
over
the
of
overhauled
if not
the historic
task
and put
in place
a new
capitalism.
The usual
"Roosevelt
description
closed
of the
the banks."
in some
Governors
of the
states.
was being
inaugurated
1933 bank
This
30 states
On Saturday
he was
informed
holiday
is not true.
had been
March
that
is
By March
closed
by the
4, as Roosevelt
the New
York
also deep.
Today as
capitalist".
3)
Japan,
5)
The
bank
interventionist
pointed
capitalism.
a government
out,
As Kalecki
deficit
is the equivalent
investment
enterprise
is concerned.
in place
in the
are protected
as occurred
Most
consisted
1930's
from
a severe
businesses
and
contraction
Until
contracts
employment
the Roosevelt
for defense
government
the weakness
of the private
and
it involved
structure
was
in place.
The
States
was based
upon
compartmentalization
structure
was
organizations
agriculture,
investment
banking
investment
bank,
infused
government
of
to spur
resorted
civilian
to a variety
devices
of
to offset
for labor.
deal
1936
with
that
structure
was
of thought
and
the new
financial
financial
structure
of the
The financial
and deposit
special
functions
and exports,
financial
i.e.
housing,
commercial
insurance.
the Reconstruction
equity
of the
two principles,
for delineated
imports
such
bankrupt
of the power
and transparency.
reconstituted
profits,
destruction
financial
1936
and still
Roosevelt
production
a great
negotiation.
United
rates,
demand
put
of 1929-33.
employment
of the
II were
confronted
government
funded
The reconstitution
War
the discovery
inadequately
task
that
of
capitalism
in aggregate
farms,
system.
World
unemployment
government
major
fall
the crisis
of the high
financial
and after
Levy
of
of the profits
in the great
acutely
and Jerome
banking,
A government
Finance
into transportation,
Corporation,
industry
and
finance.4
Furthermore
As a result even
As fragility
The combination of
has shown that Kennedy's aphorism can be true, the ends that
a successful economy needs to achieve includes a wide
distribution
In the
is groping towards
This new model
I have
I have not
characteristics
of capitalism.
success.
As these
Ever
In principle
As a result
Roosevelt
era the
capitalism
Over
the price
price
of the
law caught
is corporate
the more
level
level
investment
than
output
but
to purchase
up with
40 months
of equities
cost
market
reforms
the
fact
stock
67% of the
it would
for commercial
1929 price
only
on the
cost
stock
of the prices
greater
than
1 to 1 before
1929,
new was
1 to 4.
market
for capital
which
theory
prices.
hand
assets,
economic
alternative
goods
was
full
really
to producers
Similar
capital
order
ratio
new
towers.
assets
was
of old to
investment
for investment,
the
of bargains.
prices
and services
1929
as office
in 1933 the
market
theory
such
to produce
exchange.
ratio
In standard
buildings
the
fell by 85%.
15% of the
If the
second
contraction
exchanges
held
the
modern
ratios
when
that
of the great
output
on the
a firm
output
of the
capitalism.
of current
In 1933 it would
price
security
are available.
matters
upon
As the
are relative
in a capitalist
economy output
flows.
of
At
In a modern
Each
in capitalist economies.
for funds) and their customers who have a need for outlets
in which money can be placed.
A main
The very
of
leads
Many aspects of
A big depression
Capitalism
is discernible over
Only capitalist
If the life
However
Therefor there is a
(AFDC),
In
This welfare
welfare is work for the mother and child care for the
children.
Welfare reform leads to a similar problem as social
security reform.
There
goods and
until the 1970's and even now many are only partially
funded.
few years on the job and until recently were not portable.
Over the past several years a large number of the greatest
corporations of the United States have had serious financial
difficulties.
to reduce not only their shop floor workers but also their
overheads.
As yet
is a repudiation of the
will have to
is likely
This
We can see
organizations,
It is
in taxation.
The
As was mentioned