On The Nature and Causes of The Wealth of Nations, 200708

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On The Nature and Causes of The Wealth of
Nations, 2007/08

• A. Erinç Yeldan
• Bilkent University
• IDEAs Network

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something significant has changed in the way
capitalism has been working since about 1970
David Harvey, 1989
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Changes in the Global Environment

• economic limits of Fordist production and mass
  consumption have been reached by the 1970s.
• Profit rates in manufacturing in US and elsewhere
  started to decline as capital intensities
  increased

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Source Moseley, Monthly Review, 2003
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Symbol tick MAN country TURK cusip
56418H100 isin TURK56418H1005 / symbol sign
- change caltype percent 2.5 / change
price value 44.52. If you are still
reading the above sentence, you are already too
late!
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Source Wolff and Resnick, 2006, Advances in
Marxist Theory
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Source EconomicPolicy Institute
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Turkey Labor Productivity and Real Wages,
2000-2006
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Revised Growth Projections
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Revised Growth Projections
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Lessons

• the argument that this time things are
  different is a statement that can only be made
  by fools that fail to take any lessons from
  history...
• Kenneth Rogoff, IMF Chief Economist, 2005