In Fulcher’s book, he talked about three different systems of managed capitalism within Sweden, United States, and Japan. Capitalism was developed in many different societies, which also means it took different institutional forms. In the 1980s, neo-liberal model of capitalism became dominant across different societies, but does that mean that capitalism everywhere would be the same? Within Sweden, they had a strong labor movement, developed welfare state, barely any involvement in the industrialization process. But was successful in the development of functionally managed capitalism. Swedish industry was reliant greatly on exports and had to be very competitive if it was to survive because of their small population and lack of markets and resources. Sweden took on a five-month strike because of an escalation of conflict; industries wanting to outgun each other. American Capitalism is at the opposite end of the ideological and organizational spectrum. Industrialization occurred, where there was belief in success through enterprise and initiative. The business corporation flourished and it produced corporate instead of a corporatist capitalism; where business corporations were controlling and not the class organizations. In chapter 3, it talked about how America was home of the managerial revolution theory.
A man by the name of Alfred Chandler argued that the managers of American corporations were allowed to do the job during that period of corporate growth. Japanese industrial capitalism was managed from the beginning. In the 19th century, Japan was very commercialized and entrepreneurial. After what was called the Meji Restoration, Japan’s revolution in the 19th-century industrialized as part of a program to build a stronger and more independent country; one that would stand up to the Western empires. Japan was the only society to industrialize in a successful way in the 19th-century. Distinct managed capitalism was there and the state had a big role in corporate concentration that stretched all over the country. When asked if capitalism has gone global, there are many different answers to that question. Large sums of money are being transferred across the world every single day, companies are running manufactured operations all over the world, and markets for all goods, capital, and labor are global, too. But there are many myths and realities about global capitalism that have an impact on peoples lives every single day. One myth that chapter 5 talked about was that global capitalism is something new. Capitalism spread across the nation almost right away when it came into existence, and it was also in the 19th-century when global economy.
Capital moved around freely within different countries and increased regulated relationships among those national economies. According to a man by the name of David Coates, “Capital’s search for labour has doubled the size of the ‘world proletariat’ to some 3 billion people during the last thirty years of the 20th century” (Fulcher, 2015, pg. 83). The main spread of capitalist production was from the transnational corporation, and good example of this would be the growth of manufacturing plants in Mexico. “This began when in 1965 Mexico allowed factories within ten miles or its border with the United States to import raw materials and parts duty-free, if the finished product was re-exported. Their growth accelerated after the 1993 NAFTA Agreement removed the remaining barriers to trade. American, European, and eventually Japanese capital moved in to exploit cheap Mexican labour.” (Fulcher, 2015, pg. 84). Recently Asia has provided bigger attraction to capital, Japanese capital especially.
The production of goods and services in Japan became expensive as a result of the fast growth of Japanese industry after WWII led to lack of labor and land. Another thing that moved out of the old industrial societies was global telework. All of the sudden typing, talking on the phone, processing of data, developing software, and solving problems could be done while at a distance away. Global tourism, global agriculture, and global money have spread nationwide, making technical advances possible internationally. Overall, myth one was that global capitalism is recent and that it is historical, going way back. The second myth was that capital circulates globally, but in reality it only moves between different groups of rich countries. A third myth is that capitalism is organized globally, not nationally.
The last myth says that global capitalism mixes the world we live in and the world has become more divided by inequalities of wealth. The crisis of the 19-century involved many and the bursting of the tulip bible in the 17th century in Amsterdam did not impact the economy as a whole. Unemployment caused major suffering and capitalists then went out of business, however, it did not destroy capitalism. But a man by the name of Karl Marx argued that capitalism always resulted in crisis because production was different from consumption. Mass unemployment also resulted in a crisis, people depended greatly on labor for their own survival. This type of crisis occurred every ten years during the first couple months of the 19th-century. Fast forward some years and how are governments responding and the world recovering? What is the future of capitalism? In the last chapter of the book it talked about how the short term of capitalism has a clear future. Crisis may occur but there is barely any reason to think that one of those might be the last. The future of capitalism does not just depend on capitalism but also on the way people respond to capitalism. So, how the government responds, or political movements develop along with religious movements, and how capitalists respond in general. The future of capitalism will not be shaped by institutions and declining countries of the West, but by the countries of the East. They are not ‘Eastern capitalism’, but they are very different and offer different features about capitalism.
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