Recolonization of Africa, a Symptom of Our Addiction to Growth: Differential Accumulation, Why GDP Growth Rates Influence Foreign Policy

via chycho

The name of the game when it comes to investing in the markets is that you must not only be ahead of inflation but you must also beat the averages, exceeding the normal rate of return. If you don’t do both then you are neither protecting nor accumulating capital, i.e., in the limit you will lose your wealth. This principle also applies to nations.

Ignoring our need to rely on different economic measures (pdf) other than the Gross Domestic Product (GDP) of a nation to indicate progress, wealth and well-being, if a countries GDP growth rate is below the global average, then over time that country will lose influence and be subject to an unstable economy. In essence, how a countries economy performs is relative to how other countries perform – there is a “growth imperative in capitalist economies” (pdf).

But why do capitalist economies need to grow? Because competition and the quest for profit compel each business to grow or be wiped out by its competitors.”

The economic theory that best encompasses this principle is Differential Accumulation. It “emphasizes the powerful drive by dominant capital groups to beat the average and exceed the normal rate of return.” The video linked below and the following excerpts from an article entitled “Differential Accumulation” by Shimshon Bichler and Jonathan Nitzan provide further information on this train of thought (emphasis added).

continued at chycho

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  • Juan

    Heart of Darknes redux.

  • InfvoCuernos

    Back to Africa? They’re colonizing the US. Whenever some asshole in a suit pulls out a contract that’s needlessly long and says somewhere in it that they have the right to revise it whenever they want without your consent-you are being colonized. That’s some USGovt. sneaky shit. But ya, those poor Africans never seem to get ahead.

  • “Big” Richard Johnson

    Africa is about to get fucked over again.

    • rtb61

      They got the easy model first time around, they are about to get the revised North American, Australia and South American model this time around.
      It incorporates a major reduction in the native population via starvation and disease whilst under the pressure of continual warfare.

      • “Big” Richard Johnson

        That was the model first time around too.

  • http://www.zoboprepublic.wordpress.com/ zobop republic

    China is all over Africa with huge investments! I notice the post says nothing about China.

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