Government bailouts prevent capitalist crises from restoring profitability

Evidence

Marx believed technological advances are always making production more efficient, which in turn lowers costs and makes it more difficult for capitalists to maximize profit. Periodical crises can restore some degree of profitability by allowing successful corporations to absorb the resources of failing corporations. The problem, according to some theorists, is that recent government bailouts are preventing that process from fully unfolding. — Nick Couldry & Ulises A. Mejias, The Costs of Connection, 801

Categorization

• XREF: Relevant to the rival-school comparative framing: a Marxist profit-cycle mechanism that platforms can be read against. — connects to: Letting banks fail produced better outcomes than bailouts in 2008 — Mark Blyth, Austerity: The History of a Dangerous…, 622; Troika bailouts forecast recovery but economies contracted further — Mark Blyth, Austerity: The History of a Dangerous…, 200; The 2009 bailout rescued bankers while imposing austerity on workers — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 391 (+6 more)

Broader Connections

• Deep crises that cull banks require state intervention to save capitalism. #qualifies (0.88) — Yanis Varoufakis, Technofeudalism, 827
• The 2009 bailout rescued bankers while imposing austerity on workers #exemplifies (0.85) — Yanis Varoufakis, Technofeudalism, 391
• Welfare cuts paired with corporate bailouts transfer resources from workers to capital owners #exemplifies (0.82) — Clara E. Mattei, Escape from Capitalism, 144
• Federal crisis bailouts enacted Milton Friedman’s Depression remedy of shielding the wealthy #exemplifies (0.78) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 508
• Private asset managers designed and ran government bailout programs #qualifies (0.75) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 944