Conclusion

Abstract

When James Galbraith (2011) raises the issue of economic inequality between different political regimes, he puts forward the explanation that economic inequality in the new global economy is linked to intersectoral differentials between regional blocks of production, rather than international differentials between national political powers. The global political economy is now based on the standard set by the profit maximizer in financial speculations, which has taken over national interests in social interactions. The great recession that started in the late 2000s reflects in many ways greedy behaviors, but not uniquely in financial markets. Accumulation can take many forms. As profit maximizers, the accumulation of financial assets led to financial turmoil. As utility maximizers, homeownership became a possibility with subprime loans, and better access to cheaper foods led to rising obesity across the globe. The global economic integration led to the convergence of consumption patterns due to peer comparison and habit formation, together with the creation of regional blocks of production. Economic integration goes through the production and accumulation of resources.