Urban Addendum

According to Harvey in a global economy a frequent movement of the investments and industries in new and different places can “fix” the overaccumulation capitalistic crises that arise from the tendency of capital to accumulate over and above, which has as a result the surpluses of capital and labor to be left underutilized or even unutilized. By relocating the investments to new places the surplus that existed in the old locations can now be reinvested profitably in the production, reinforce the supply chain and help the restructuring of commodities.  This circle process of the movement of capital in new or old markets that got temporarily out of the production processes, can help to maximize the profits and increase the efficiency. At  the same time new "space" is being produced and upgraded with physical and social infrastructure,  helping the surpluses of labor and capital to be absorbed in the new productive aggregation, that is now profitable because of the spatial enlargement of the system of accumulation. However, to attract private capital to new places that are not regarded as profitable, the local officials of these new markets are using incentives that can have many negative consequences, such as growth inequality or declines at the welfare of the society.  The state or the local government becomes entrepreneurial and capitalistic and prefers new investments rather than equity.