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Cognitive Capitalism as a Financial Economy of Production

Author

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  • Andrea Fumagalli

    (Department of Economics and Quantitative Methods, University of Pavia)

  • Stefano Lucarelli

    (Department of Economics “Hyman P. Minsky”, University of Bergamo)

Abstract

The structural changes that occurred in the last 30 years have substantially modified the capitalistic organization of society, both at national and international level. A new regime of accumulation devoid of a stable mode of regulation and centred on financial valorisation of new socio-economic growth perspectives has been consolidating. Conditions imposed by financial markets in order to create the shareholder's value consisted of promoting downsizing, reengineering, outsourcing and M&A processes. The flexibilization of labour force and precarization of existence has thus been the result of the established valorization norm. But why should the corporate restructuring sustain the enterprise value by creating income stock ? The definition of a new regime of accumulation involves a research on the criteria of valorisation and the prevailing technological paradigm. The main changes of new capitalism concern mainly two spheres: the role played by knowledge in the new technological paradigm and valorisation process and the importance of finance. The dominant technological paradigm and the role played by knowledge within it are not enough to explain the evolution of the accumulation regime. It is needed to introduce further elements necessary to explain the expectations that sustain the investment choices made by capitalists; these are the conventions or collective beliefs. Then, after describing the main features of the accumulation paradigm that many scholars have not hesitated to name as Cognitive Capitalism , we shall attempt to provide a theoretical framework of it intended as a financial economy of production. We shall therefore proceed to the reformulation of the schemes of monetary circuit (Graziani 2003).

Suggested Citation

  • Andrea Fumagalli & Stefano Lucarelli, 2010. "Cognitive Capitalism as a Financial Economy of Production," Quaderni di Dipartimento 127, University of Pavia, Department of Economics and Quantitative Methods.
    • Handle: RePEc:pav:wpaper:127
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    References listed on IDEAS

    as
    1. Graziani,Augusto, 2003. "The Monetary Theory of Production," Cambridge Books, Cambridge University Press, number 9780521812115, October.
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    11. Carlo Vercellone, 2007. "From Formal Subsumption to General Intellect: Elements for a Marxist Reading of the Thesis of Cognitive Capitalism, in Historical Materialism," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00263661, HAL.
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    Cited by:

    1. Ivan Siqueira, 2012. "Education and Learning in the 21st Century: An Emergency Agenda for Sustainable Development," Journal of Education and Vocational Research, AMH International, vol. 3(10), pages 313-318.

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    More about this item

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies

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