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What is Capitalism
Capital refers to the money invested in the various stages of productions
potential one area of potential breakdown is that labour is dispatched by cheaper courses, between
China follows an export strategy
Combine growth 0 exporting to us and europe
rising unemployment in the area which has higher wage puts downward pressre on wars, for working in
---> but with rising unemployment in the us europe these marekts do not demand as much china
---> issues of next compensate for falling wage/ increasing.
-- decling demand
The State: is the mix of political institution which has responsibility for formulating these governing
rules of society in a way that is by both.
-->> executive, legislative, bureaucracy, judiciary.
Government -> temporary ruling party.
The state within a capitalist frame
- has a central responsibility to mediate and contain the underlying problems that arise from capitalist
How the state is involved.
1. Managing aggregate demand - compensates for the tendency of capitalists to force down wages and
demands the system.
-> can have speculative bubbles and crashes (Stock markets..can bid up price to a point that is
unattainable) ....stock market crashes...therefore state intervenes and creates and intervention.
2. State manages the relations b/t labour and capital. Ex. the Keynesian welfare state, labour market
conditions (employment equity programs. deal with wage differentiation b/t f/m