In his book Mapping Turbulence — Sidecar, Joshua Rahtz provides a significant conceptualization of the postwar global economy [d9b4614c]. Rahtz argues that downward pressure on prices in the 1970s resulted in falling profitability and investment, leaving the economy vulnerable to exogenous shocks. He criticizes both Keynesian demand-side stimulus and neoliberalism for their failure to bring about a lasting recovery. Rahtz's analysis has gained traction among mainstream and heterodox economists, but recent commentaries challenge his underlying premises [d9b4614c].
The critiques argue that Rahtz's work is dogmatic and relies on mutually exclusive theories of falling profitability. They also claim that the world economy is robust and that the rate of profit has fully recovered. However, Rahtz defends his work by stating that he focuses on falling profit rates in specific sectors at specific times and that the transformations undertaken to restore profitability have had political and social implications. He further argues that the current political capitalist conjuncture is characterized by an assault on living standards and a hardening of the state's repressive apparatuses [d9b4614c].
This article emphasizes the importance of understanding the historical context and specificities of economic developments. It highlights Rahtz's analysis of the postwar global economy, which sheds light on the challenges faced by the global economy due to falling profitability and the inadequacy of Keynesian and neoliberal approaches. The article also acknowledges the recent critiques of Rahtz's work, which question his underlying assumptions and argue for the robustness of the world economy [d9b4614c].
Overall, Mapping Turbulence provides a critical analysis of the postwar global economy, exploring the implications of falling profitability and the limitations of mainstream economic theories. It invites readers to consider the historical context and specificities of economic developments, challenging prevailing narratives and offering alternative perspectives [d9b4614c].