Passage – 2 Capitalism faced a crisis of profitability in the | UPSCPrep.com

Passage – 2
Capitalism faced a crisis of profitability in the 1970s. Opinions differ regarding its causes, but the global elite had no doubts about the solution: financialisation and globalisation. Also known as the “neo-liberal turn”, it helped solve the problem of falling rates of profit by empowering capital to flow across national borders to wherever the returns were the highest, buy up state-owned assets and enterprises cheaply, and use labour arbitrage to appropriate a greater share of produced value.