Is the US a failed state? Well, with a paralyzed economy, debt deflation, and a ruling elite waging class warfare on labor, what else should we call it?
Economist Michael Hudson often writes and talks about the US role as a global force bending the rest of the world to its will. Or trying to. This week he and Steve bring the focus home, looking at the state of affairs in the US; breaking down the causes and devastating effects of the massive transfer of income and wealth from the working class to the 1% — specifically the finance, insurance, and real estate (FIRE) sectors.
Michael slices through false promises of re-industrialization after half a century of brutal policies by both Democrat and Republican administrations.
“America cannot re-industrialize without reversing this whole philosophy of post-industrial society as a class war against labor. You can't have both. You can't have a class war against labor and re-industrialization, with the labor unionization that goes with it. That's the conundrum.”
It’s well known that the people want public spending on healthcare, student loan forgiveness, and other social programs. The episode looks at the complementary roles of both parties in opposition.
“The pretense is that the government has to borrow from bond holders. Because the bond holders decide what is economically worthwhile. Well, what does this ignore? That the bond holders are the 1%, and what they find economically worthwhile isn't using the government to benefit living standards, benefit labor, and to provide social services.”
Should either party feign to support a policy and pass legislation benefiting the people, the Supreme Court is there to stop it in its tracks, citing the original intent of the Constitution.
“Because the Constitution was drafted by authors who feared democracy. Who said that we have to make sure that we have enough checks and blocks, so that the mob cannot rule and take away the power of we, the bond holders, and landlords, and slave owners.”
There are certain themes Michael Hudson visits again and again, strengthening connections and adding nuance to a comprehensive class analysis and global political economy. If you’re lucky, he’ll pepper it with a few snarky observations as well.
Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City. Support him at patreon.com/michaelhudson
Find his work at michael-hudson.com
