Deindustrialization While the United States industrial production has remained constant over the last 40 or so years, the percent of people employed by industrial production has dropped from 35 to 20 (real loss). Effects have been dire on many communities (Detroit, MI; Gary, IN, Cleveland, OH). Yet industrial growth has become global. Concentration of capital Keynesianism focuses on high employment and state intervention o Neoliberalism focuses of private capital and the avoiding of inflation Outcome has been a severe reconcentration of wealth in the upper most strata of society In 1996, the net worth of the 358 richest people in the world was equal to the combined income of the poorest 2.3 billion people Income share of top .1 of US earners has grown by almost 300 since 1980 3537 of wealth is controlled by top 15 in US; bottom 85 controls about 155 of wealth Financialization Increasing importance of financial markets Tied to globalization of production and deregulation of banking and financial institutions Some liberal economists argue that wealth tends to be more concentrated under financial dominant economies than under production dominant economies. 90 of financial wealth is controlled by 10 of the population. Wall StMain St. Who take the blame when markets tank? Foreign Direct Investment (FDI) The migration of work to the developing world (Brazil, Russia, India, China) as countries such as china and India liberalized has improved economic conditions in those areas. Transnational Corporations Have grown from a few thousand in the late 1960s to 90,000 today. They account for 70 of world trade and roughly 1.5 trillion in foreign direct investment Power allows them to dictate policy IGOs and NGOs International government Organization (WHO, International Court of Justice, UNICEF, United Nations) NonGovernmental Organization (over 3 million today, must be nonprofit) These entities help to create a sense of global awareness Developing Worlds Debt According to Steger, in 2007 the developing world owed about 3.3 trillion to outside sources, up from 618 billion in 1980 (between 19802006 these countries paid off 7.7 trillion in loans) Liberal economists argue that this keep developing countries indebted to those giving them loans and allows IMF etc. to dictate their economic policy. Austerity.