Methodological individualism versus class analysis : the “great recession” as a test case.

Abstract

While the mainstream economic analysis relates with the other branches of social sciences in an “imperialistic” perspective, an alternative paradigm of social reproduction can contribute to develop an interdisciplinary approach to political economy. Originated in the contributions of Classical economists and Marx and currently developed by the critical schools of economic thought, the paradigm of social reproduction rejects the individualistic foundations of mainstream economics and recognize social classes and related conflicts on production and distribution as essential elements to make economic analysis consistent with the current reality of capitalist development and crisis. In this sense, the alternative paradigm suggests an interpretation of the recent “Great Recession” based on the specific anthropology of consumption of social classes within capitalism and its implications on the pace of aggregate expenditure. Empirical evidence gives support to this interpretation, which also offers some insights about the possible relations between the complex spatial and temporal dynamics of capitalist crisis and the international development of progressive social movements.