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5 - The everyday social sources of imperial and hegemonic financial orders

Published online by Cambridge University Press:  22 September 2009

Leonard Seabrooke
Affiliation:
Associate Professor International Center for Business and Politics Copenhagen Business School; Adjunct Senior Fellow Department of International Relations, RSPAS Australian National University
John M. Hobson
Affiliation:
University of Sheffield
Leonard Seabrooke
Affiliation:
Copenhagen Business School
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Summary

Imagine that you are a member of the working or lower-middle classes. You scrimp and save to put together some savings with the hope of acquiring a home loan. Banks, however, refuse you credit on the grounds of your socioeconomic position and nobody will lend you money at anything but outrageously high interest rates. Such usury is apparently justified because your socioeconomic position suggests that you are an unsafe bet. And while you are going without, the talk on the street is that your government has been implicitly subsidising high-income earners' ever-increasing private international investments with public money. In particular, you hear complaints that publicly funded warships are being sent to far-off lands to ensure payment on private investments at a time when the domestic economy is stagnating. Worse still, some politicians want to raise tariffs on foodstuffs to pay for the construction of more warships on the grounds of protecting national security. You and your friends don't believe their claims to the legitimacy of such policy changes. If such a policy is pursued then not only will you not have access to a home loan but price increases on basic commodities will hurt your family and community. Unsurprisingly, your everyday frustration about lack of access to credit and property, as well as the prospect of increased relative tax burdens, builds.

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Publisher: Cambridge University Press
Print publication year: 2007

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