Financial Crises and the Sabotage of the Production process: A Veblenian Perspective

This work explores Veblen's contributions regarding the endogenous factors within institutions and financial management practices that influence crises and constrain economic growth. Veblen emphasizes the prevalence of management practices that prioritize financial maximization over productive efficiency, promoting industrial "sabotage." Economic and social inequalities, along with productive idleness, are essential to sustaining the capitalist system. The predatory mindset governing this dynamic also affects political institutions, intensifying power concentration and instability. As a result, attempts to restore financial order after crises deepen industrial sabotage and power concentration. Veblen's analysis aligns with post-Keynesians, such as Minsky, and advances by incorporating political aspects into the understanding of financial crises.

Keywords:
institutionalism; financial crises; instability; economic growth; mergers and acquisitions