![Page 1: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/1.jpg)
HOW TO SOLVE THE CRISIS?
Dr. Zoltan Pogatsa
![Page 2: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/2.jpg)
V or W shaped?
L-shaped:• Corporate capitalism• Corporate party financing• State capture• Unsustainable corporate, household and state
finances• Crisis
![Page 3: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/3.jpg)
Rate of profit
Marx: falling
Reality: growing
Question: WHO WILL BUY THE PRODUCTS?
![Page 4: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/4.jpg)
Answers
1. Mediatised consumerism2. Borrowing from the future (debt)3. Ridding the state of resources (tax cuts,
offshore)4. Geographical expansion (CEE, China, BRICS)5. Environmental degradation6. War
![Page 5: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/5.jpg)
Mediatised consumerism
![Page 6: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/6.jpg)
RIDDING THE STATE OF RESOURCES
![Page 7: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/7.jpg)
EVER SMALLER STATEBecause it is „too large”
![Page 8: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/8.jpg)
Financial deregulation (Johnson & Kwak „13 Bankers”)
![Page 9: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/9.jpg)
Banking compensation
![Page 10: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/10.jpg)
![Page 11: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/11.jpg)
Securitization
![Page 12: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/12.jpg)
Offshore (Shaxton: Treasure Island)
Tax Justice Network Financial Secrecy Index:1. US2. Luxemburg3. Switzerland4. Cayman Islands5. UK• Rich individuals in offshore: a complete yearly US GDP• Corporations: Vodafone, Google, Enron, Wizzair, CBA….
![Page 13: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/13.jpg)
War
![Page 14: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/14.jpg)
Sovereign indebtedness
![Page 15: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/15.jpg)
Household indebtedness
![Page 16: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/16.jpg)
Geographical expansion
• CEE, BRIC, etc.• New consumers for corporations• Cheap labour offshoring for corporations
![Page 17: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/17.jpg)
ENVIRONMENTAL DEGRADATION
![Page 18: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/18.jpg)
Responses so far
• Anticyclical fiscal expansion• Monetary easying (QE1&2, ECB)• Austerity (Stiglitz, Soros, etc.)• No regulation• No sustainability
![Page 19: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/19.jpg)
Why don’t politicians act?FinanceChris Dodd, Chair of Senate Banking Committe received $2.9mn from securities
industry in 2007-2009, more than three times any senator who was not a presidential candidate. („13 Bankers”)
DefenseLockheed Martin is the biggest campaign sponsor of Buck McKeon (chair, Congress
Military Forces Commitee) and Daniel Inouye (chair, Senate Military Procurement Committe).(Hartung „Prophets of War”)
OffshoreLord Ashcroft, Chairman of UK Conservative Party is a tax citizen of Belize.
Revolving doorRobert Rubin (Goldman>Glass-Stegall>Citi), Dick Cheney (Halliburton)
![Page 20: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/20.jpg)
How to solve the crisis?
Cut the nexus between corporations and government.
![Page 21: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/21.jpg)
GREECE
![Page 22: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/22.jpg)
Greek state not big!
![Page 23: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/23.jpg)
Revenue side problem!
![Page 24: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/24.jpg)
Greece
• 3-5% of GDP in Offshore (mainly Cyprus)• Military expenditure: EU countries sold €1bn
worth of military to Greece in 2010• Would need 6-8% growth to get out of
sovereign debt trap• Will not happen with 5th wave of austerity
![Page 25: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/25.jpg)
Cheap lending in €uro
![Page 26: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/26.jpg)
€urozone not an optimal currency area
![Page 27: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/27.jpg)
Not a productivity issue!
![Page 28: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/28.jpg)
But a wage issue!
![Page 29: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/29.jpg)
Germany benefitted from €z
![Page 30: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/30.jpg)
Greece had deindustrialised in free trade
![Page 31: HOW TO SOLVE THE CRISIS? Dr. Zoltan Pogatsa. V or W shaped? L-shaped: Corporate capitalism Corporate party financing State capture Unsustainable corporate,](https://reader030.vdocuments.site/reader030/viewer/2022032702/56649cc95503460f949915d9/html5/thumbnails/31.jpg)
THANK [email protected]