The Research On The Reform Of American Capitalism Viewed From The Financial-Economic Crisis

The development of American capitalism abides by the steps of "unbalance, crisis, self-examination and reform". Since established the American capitalism has been accompanied with economic crisis. There are14times bigger crisis since the Independence Declaration published. Generally, the capitalist economic crisis has some characteristics as follows:overproduction, regularity, the capital flows from industry to banking business and financial industry.2008American financial and economic crisis initiated by the sub-prime mortgage crisis shows different features compare to crisis before the crisis:occurred in the stage of international financial monopoly capitalism and the new stage of globalization, crossed the traditional overproduction and displayed the financial derivatives overproduction, spread fast and influence widely. The financial and economic crisis resulted from the long-time practice of new-liberalism in united states, the root cause lies in the capitalist basic contradiction movement-socialization of production and the capitalist ownership of the means of production.The2008financial and economic crisis indicates the unbalance of American-style capitalism. American economist named Stiglitz generalized the unbalance into four kinds:the market and the state,between individualism and the community, between man and nature, between means and ends. The first means the rising of liberal-market approach and the sinking of government intervention. Such as, the Federal Reserve and Securities Supervision Commission had not taken the accountability to supervise the speculative activities; Bush and Obama both spend big money to rescue the "too-big-too-fall" bankers and venture invest companies which should take the blame for the crisis. The second means the rising of individual and the sinking of community. Such as, not only the employees but also the higher level manager and the governor make errors, even more, they let alone the coming of the crisis. So we can say the sub-prime mortgage crisis is trust crisis. The third mainly discuss the model of development and consumption which are not Sustainable. Such as, as the most big energy consumer, the united states is consuming much oil, gas nature resources which polluted the environment. The proportion is too high. The last one means the financial sectors and banks began alienated these years, because most profit are provided by the financial sectors, they do less to keep the industry prosperity.The root cause of crisis lies in the capitalist basic contradiction, and it is the biggest unbalance in united states. Although contemporary capitalism is different from those before, but the greedy and pursuit for profit has not change. The financial corporations make many kinds of derivatives and encourage people to buy, so the money are moved to the Wall Street, then removed to few high level managers and financiers who monopoly the market and maintain the control of capita. On the other hand, at the beginning of1970's, the reform named "return to market" and "deregulation" promoted the economy structure transition and produced the financial bubble. Although there are big changes between the contemporary capitalism and the capitalism before, the capital pursuit for profit is not change. Production capital and financial capital in essence are both pursuit for the expansion of capital value and profit maximization. So only the few capitalist and financier control most fortune, they will promote the capital to gain more value, added the distorted credit system and more venture invest, the financial and economic crisis finally broken out.The financial and economic crisis and the social unbalance produced great influence as follows. Firstly, it make people reflect the modern capitalism, question and criticize the American-style capitalism. Secondly, it promote the American reform and make people pay attention to the accumulation and trend of the socialist factors. Thirdly, the government will strengthen regulation and supervision, it also will turn the economic losses to other regions and countries. Fourthly, the Washing Consensus and the market liberalism approach lost charm after the crisis, the developing countries are likely to look for the develop model and road which are fit for the states. That is to say, the capitalism is no longer the single choice. It is more difficult for the united states to force other states practicing capitalist rules and order depend on the USA dollars and military force. Fifth, all kinds of socialism provide new choices. As a competitor to capitalism, socialism has been in low tide after the1990's setback. During the crisis, some scholars rethink the destiny of capitalism and the future of socialism. Although the mature of capitalism is preparing conditions for next social stage-socialism, and socialism is coming in the future. But it is a long time before this, and there are rise and fall in future.After the broken out of the financial and economic crisis, the federal government took many kinds of methods and measures to rescue the corporations and stimulate economy. And the government reform the institutions and regulate laws on the basis of reflection to capitalism. It is the objective wish and fundamental goal of the reform to regain the American-style capitalism balance, perfect the capitalist system, make capitalist institution last forever. Obama administration's reform adopted two tactics:incremental changes, strategic ambiguity. The reform's policies focus on not only cut back taxes and rescue package, but also many aspects as follows:transfer the economic structure, revive the real economy; urge financial sectors take responsibility; more de-leverage; restructure supervision system and endowed more power to superintendent; promote health-care reform and expend employment. The reform retrieved the economy slowly, and accompanied with high unemployment rate. There are some other problems as follows:the financial system which includes banks and insure companies has less change; there are still more difficulties faced by financial supervision; there comes a high financial deficit which leads to national debt crisis seriously.Although president Obama and his administration took a new reform, the decline trend of American-style capitalism is not change. Because reform will take a long time, so the policies should pay attention to long-term problems. But Bush and Obama both took problem-solve policy to coordinate the contradiction between the ordinary people and the wall street. Obama's policies is to maintain the capitalist interest. And in the election environment political negotiation and low-efficiency waste the good reform time and reduce the policies effect. What's more, the reform didn't touch the fundamental problem, and vested interest groups persisted and attacked policies which can damage their interest.As the spread of financial and economic crisis and its influence, the "occupy wall street" movement broken out. The appeals of the movement includes asking the government to solve the high unemployment rate problem, separating the money and politics, reducing the capitalist effect to politics, aganist the war. The "occupy wall street" movement broke out under the globalization and informatization. There were nearly fifty years since the mass movement since1960's. The movement has some distinctive features:the background includes financial economic crisis and many movements alike abroad; it's launch, organize and information distribution utilized the network; it spread quickly, the people held different requirements and cities involved increase rapidly; it has the the characters of "people's revolutioary" coloured by the theory of "action" in modern conditions, also of opposing to oppress from the factory owner and fighting for rights in early Europe labour movement, of nonviolent and uncooperative, of serious spreading to the other countries."Occupy Wall Street" implies positive meaning:promote president's social reform, spur the government to play a large role and interfere in economy widely, adjust Party's negotiation procedure, train the labour class and middle-class. Of course, the movement will not shake capitalist economical, political and social system. Because the capital system is still with life, but it tell us the system is facing serious problems which should be resolved. If the problems can't be removed, the base of capitalism will demaged.The financial and economic crisis facilitate the accumulation or trend of socialist factor in united states:the increasing of national economy ingredients and social capital, the increasing of government interfere and the standard of welfare, the increasing of democracy governance and popular democracy, the increasing of people's fighting for right. The driving force of the accumulation lie in five aspects:the traditional of socialism and labour movement, the economy crisis and present social reality, the class struggle between the labour class and capitalist, the informational technology and other countries reform movement. Certainly, the root cause lies in the capitalist basic contradiction. The socialist factor is growing and forward to the bright future, it will promote the developed the united states to a new society.The sub-prime crisis was promoted by the development of financial market in united states, and the broke of the financial bubble indues international society quickly. It implies the decline of new-liberalism. The government's measurements opposeing the crisis abandon the principle of not interfering the market. The keynesianism and the new-liberalism both have drawbacks, to avoid next crisis, the government policies should take the advantages of the two theories. And it will be the correct choice to escaping future crisis. So to the federal government, it is time to retrieve the balance of the keynesianism and the new-liberalism. A new theory would be created in the future which be cherished by the reform.Until1990's China found the road of market-oriented reform since it began to exercise the policy of opening and reform in the end of1970's. In the past years, China got enormous progress while made some mistakes, one of the most merits is that we established the socialist market system. Now we still face some serious problems which lies in economical, political, cultural, social fields, such as the growing gap between rich and poor, reform stalled before national enterprise, society's moral lose. These problems are related with the market-oriented reform. Even more, there are unbalance between the government role and market freedom, the development and environment protection, the individual and community, growing income polarization and common prosperity and so on.Of course, there is big difference between the united states and China. Above all, the united states take the capitalist road while China take the socialist road. As the most developed capitalist nation, America has established a system of economical, political, culture, institutional system which stand at the center of the world. As the largest developing countries, China are establishing socialist system and taking use of capitalist civilization to serve the modernization. There is a basic difference between the problems faced by two countries. The America unbalance-which rooted the capitalist basic contradiction occurred-is under the conditions of mature market and political systems, while the problems-which are produced in the socialist primary stage-faced by China are under the conditions of immature market and political systems. So the only way we can do is deepen the reform.So the problems faced by America are not the same problems faced by China, the unbalance of America is not mean the unbalance of China, and the lessons are not fit for the China's national condition. But with the civilization we introduced from western countries, some decadent capitalist influence flowed into China. And in the reform of house system, medical system, high education and national enterprise, some serious problems comes. So some of the unbalance of America emerged in China, that is to say, we can draw some enlightenments from the America financial-economy crisis and the reform.The enlightenments mainly include:we should pay attention to the high-level manager's high salary from the stated-owned enterprise, the reform of the stated-owned enterprise and forbidding privatization of them, the improvement of socialist moral, the balance of the real economy and fictitious economy. One words, the only way before China is Chinese characteristic socialism.