Jacobin Radio The Dig: Crashed with Adam Tooze
Dec 19, 2018
Historian Adam Tooze, an expert on economic history and author of Crashed, dives deep into the financial crises that reshaped global politics. He discusses the Tea Party's backlash against homeowner bailouts, revealing the roots of austerity measures in Europe and the rising far-right. Tooze also critiques U.S.-China economic tensions and the effectiveness of political responses during crises, highlighting the role of central banks and the complexities of bond vigilantes. His insights connect historical events to today's political landscape, urging a reexamination of economic ideologies.
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Misread Crisis Origins
- The 2008 financial crisis unexpectedly erupted in depoliticized Atlantic finance, defying predicted geopolitical threats like a China-US meltdown. - The crisis exposed the fragility of relying solely on market forces to govern complex financial systems.
Politics Crucial in Crisis
- Market politics was an illusion created to mask finance's political construction. - The crisis response revealed that politics matter profoundly, especially who holds power during financial meltdowns.
Crisis Focus on Bank Runs
- Crisis managers focused narrowly on bank liquidity and recapitalization, sidelining the broader social suffering. - A bank run on wholesale funding markets, not mere mortgage losses, drove the systemic financial collapse.
