
What causes inflation? Economists Radhika Desai & Michael Hudson explain
Geopolitical Economy Report
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Is the Productivity of Capitalism a Good Idea?
Prices of these monopolized services have increased not only because of higher debt service, but because of higher dividends. None of this would occur under the previous public sector services. So you have a transformation in the organization of industry as a result of privatization that builds huge financial costs to the banks and to the financial sector into the pricing of goods and services. The whole character of what the prices consist of is transformed and expanded and inflated. If capitalism is supposed to be so wonderfully productive, why are we experiencing this problem? Michael, what do you think?
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