The global financial crisis demonstrates that capitalism is inherently unstable and crisis prone

Essay Instructions:

The 1000 word assignment Students should respond to ONE of the following statements: (1) Has Washington's recent “rebalancing to Asia” increased friction and instability in the region? (2) Western intervention in countries such as Iraq, Afghanistan, Libya and Mali suggests it is counter-productive and rarely achieves it objectives. (3) The global financial crisis demonstrates that capitalism is inherently unstable and crisis-prone. (4) Governments will never sacrifice their national economic interests for the environmental concerns of the global community. (5) The rise of China and India as global powers suggests the era when Western states dominated geo-politics is rapidly passing. (6) “We're in the middle of a revolution caused by the near collapse of freemarket capitalism combined with an upswing in technical innovation, a surge in desire for individual freedom and a change in human consciousness about what freedom means” (Paul Mason). Guidelines: This assignment is a 1000 word opinion article, based on the kind of opinion articles that appear daily in broadsheet newspapers. Have a look at some examples from The Age, The Sydney Morning Herald or The Australian to see how they are structured and written. You are trying to persuade the reader to your point of view using evidence, analysis, argument and conviction. You are arguing your case. There is no “correct” position to be taken. The challenge is to respond to the statement coherently, concisely and persuasively in 1000 words. In this assignment only, there is no need for footnotes, citations, references or a bibliography unless you are quoting someone else directly in your article, in which case you must acknowledge the author and provide references (either Oxford or Harvard style is acceptable). will be looking for when marking this assignment An awareness of both sides of the argument The ability to construct a well informed opinion in a lucid, coherent and brief article The ability to argue persuasively using well chosen evidence and examples please make sure it is written high standard as this my final university units and this assgnment counts half of my mark. Thank you very nuch

Essay Sample Content Preview:

THE GLOBAL FINANCIAL CRISIS DEMONSTRATES THAT CAPITALISM IS INHERENTLY UNSTABLE AND CRISIS-PRONE
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An economy based on capitalism is inherently crisis-prone. This is because it is under the influence of forces that make it unstable, self-destructive and anarchic. Since the 1930 crisis, capitalism has been experiencing its greatest crisis globally (Mayobre, p 216, 1999). The global markets have been characterized by plummeted stock markets, a long recession in prospect and the banking systems being saved from meltdowns through government interventions in countries such as Britain, and USA among others (Maiti, p 2, 2010). With such effects brought about by the global financial crisis recession is in prospect. I strongly believe that capitalism is on the collapsing verge.
The current global financial crisis demonstrates that the philosophy of free market is not a self-regulating mechanism. This is unlike what the fundamentalists of the free market have claimed. The philosophy of free market or the capitalism does not lead or serve the general interest of prosperity and economic growth (Gupta, p 151, 2008). On the contrary, capitalism operations characterize it as an alien that acts on its own. In general, it is inherently unstable hence making it uncontrollable. The mechanism of free market leads to occurrences of periodic crises that leave hundreds of employees unemployed. These crises further leave potential means of production destroyed largely. This therefore is an indication that capitalism is not in a position to master the productive forces which it has created. Therefore, capitalism is like a sorcerer who can no longer sustain nor control the nether world powers who through his own spells has called (Bowles, p 18, 2006). Periodically, the present forces of production will be exposed to the operational capitalistic relations hence ensuing crises. This mechanism of economies encourages the growth of monopolistic markets that lead to large inequalities of wealth.
Governments round the world have taken measures such as adopting banks and major mortgage companies around the world. These measures are in efforts to save or rather rescue the global financial systems from collapsing (Cassidy, p 400, 2010). The best example is the American government under the leadership of President Bush where other governments across the world followed the same suit to save the world financial systems from the risk of collapsing. World governments by the financial status globally have been forced to become major stake holders in mortgage companies and banks while in other cases governments have nationalized such companies and banks. Bush had gone further to appeal for the preservation of democratic capitalism. This is another indication that capitalism is not democratic in eh world market and the financial systems (Eyal, Szelenyi, & Townsley, p 46, 2000).
Governments have injected funds massively in to the global financial system. They come up with programs of large scale public works and projects in order to mitigate the economic depression’s worst effects on capitalism (Porritt, p 86, 2007). This is along the New Deal in the early twentieth century especially in the United States of America. This is evident that the global economic is in crises and due to collapse. However, there has been an international corpora...

Updated on January 26, 2024

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