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The ‘new golden age of accumulation’, the new depression and the Greek economy

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Lefteris Tsoulfidis
Lefteris Tsoulfidis

Abstract


The purpose of this paper is to delve into the
deeper causes of the current crisis and its
detailed manifestation in the case of the Greek
economy. The major argument of the paper is
that the root cause of the crisis is fundamentally
identified in the declining profitability which
past a point leads to a stagnant mass of real
net profits thereby discouraging investment
spending and leading to rising unemployment.
In the case of the Greek economy, this crisis
of profitability has been aggravated by the
contraction of its major productive activities,
that is, manufacturing and agriculture.
The contraction of these activities not only
worsened the crisis but furthermore paved the
way for the development of different forms
of its expression; that is, mounting debt and
unprecedented high rates of unemployment
bringing the whole society into a stalemate


Keywords


Falling rate of profit, unproductive activities, non-tradables, crisis, debt, Greek economy

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