SOCIOL 1A06 Lecture Notes - Lecture 16: Subprime Mortgage Crisis, Free Trade, Free-Trade Zone
12 Nov 2017
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Document Summary
Describes world wide exchange, social and cultural changes. Critics would critique how the interconnectedness does not apply to everyone. Positive; it brings about economic, social, political connectedness/ progress. Shrinking of the world as capital (money) Capitalism (overcapacity - making to many things and not enough consumers to buy/a ord, taxes, global commodity chains - how products get produced, cultural imperialism - American values, messages and ideas (ex. what"s important, whats beautiful ) being exported) Financial capital (casino capitalism - wealthy people making lots of money) Neo-liberal economic policy - no or very little government regulation over market. Critique of neoliberal economics: subprime mortgage crisis in us sets o global recession. Housing values declined, interest rates increased leading to an increase in mortgage delinquencies and foreclosures. Subprime mortgages were held as securities for many nancial rms because low interest rates (ex. 1%) and this persuaded people to buy a home. Decline in capital, credit tightening and global recession was the result.
