Home » Posts tagged 'nicolai kondratiev'

Tag Archives: nicolai kondratiev

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

Has Our Luck Finally Run Out?

Has Our Luck Finally Run Out?

We are woefully unprepared for a long run of bad luck.

Long-term cycles escape our notice because they play out over many years or even decades; few noticed the decreasing rainfall in the Mediterranean region in 150 A.D. but this gradual decline in rainfall slowly but surely reduced the grain harvests of the Roman Empire, which coupled with rising populations resulted in a reduced caloric intake for many people.

This weakened their immune systems in subtle ways, leaving them more vulnerable to the Antonine Plague of 165 AD.

The decline of temperatures in Northern Europe in the early 1300s led to “years without summer” and failed grain harvests which reduced the caloric intake of most people, leaving them weakened and more vulnerable to the Black Plague which swept Europe in 1347.

I’ve mentioned the book The Fate of Rome: Climate, Disease, and the End of an Empire a number of times as a source for understanding the impact of natural cycles on human civilization.

It’s important to note that the natural cycles and pandemics of 200 AD didn’t just cripple the Roman Empire; this same era saw the collapse of the mighty Parthian Empire of Persia, the kingdoms of India and the Han Dynasty in China.

In addition to natural cycles, there are human socio-economic cycles of debt and decay of civic values and the social contract: a proliferation of parasitic elites, a weakening of state finances and a decline in the purchasing power of wages/labor.

The rising dependence on debt and its eventual collapse is a cycle noted by Kondratieff and others, and Peter Turchin listed these three dynamics as the key drivers of decisive discord of the kind that brings down empires and nations.

…click on the above link to read the rest of the article…

Kondratiev – Riding the Economic Wave

Kondratiev – Riding the Economic Wave

LET’S escape Brexit and see what’s happening in the wider world. Most forecasters are gloomy about global economic prospects. According to Schroders, doyen of UK assets managers: “We forecast a more stagflationary environment in 2019 with global growth set to slow and inflation to rise”. The Davos World Economic Forum predicts a “sharp drop-off in world trade growth, which fell from over 5 per cent at the beginning of 2018 to nearly zero at the end”. Forbes business magazine warns: “The biggest problem for the global economy in 2019 will be massive business failures that could also lead to bank failures in emerging markets”.

Of course, the forecasters have been wrong before but it is clear that the main analysts of the global capitalist economy are pessimistic about current trends. They are right to be worried.

The international economy operates in pulses christened Kondratiev waves after Nicolai Kondratiev (1892-1938), the Russian economist and statistician who first identified them. These K-waves consist of an expansionary upswing lasting normally 15-20 years, followed by a downswing of similar length. We are now in such a downswing that could last till the 2030s.

What causes Kondratiev pulses? There is a rich literature trying to identify the cause, in particular the work of the Belgian economist, the late, great Ernest Mandel. Crudely, it works like this. Social and economic conditions mature to spark a runaway investment boom in the latest cluster of new technologies. After a period, excess investment and increased competition lower rates of profitability, curbing the boom.

At the same time – because this is as much a sociological as an economic process – growth expands the global workforce, both in numbers and geographically. The new, militant workforce launches social struggles to capture some of the wealth created in the boom. This, in turn, adds to the squeeze on profits. The peak and early down wave are characterised by violent social conflicts, whose outcome determines the length of the contraction.

 …click on the above link to read the rest of the article…

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress