Debunking Economics - the podcast

Explore how cooperatives could reshape capitalism by aligning worker interests with profit motives. Discover the cyclical nature of debt in financial systems, especially the shift to household lending. Hear real-world success stories from companies like Mondragon and John Lewis, showcasing the motivational power of employee ownership. Delve into the democratic principles of cooperatives and their community focus. Learn how cooperative banking supports local economies, promoting equity over profit while also discussing workforce representation in corporate governance.

What drives economies into decline? Explore the debate between external shocks and the internal struggles tied to resources and wages. Is inflation the true enemy of growth? Discover Karl Marx's perspectives on profit and investment strains. Learn about the factors that pull economies out of recessions, including the power of consumer confidence and the role of government intervention. Plus, uncover how companies strategically thrive during downturns and the potential of universal basic income to support those affected by economic cycles.

It’s a sad fact that war can pay. The US arms industry is one major beneficiary. The UK is a long way behind, but it also a big supplier of armaments to the world. If governments of the world upped their defence pending to 3 percent of GDP that would see a massive increase in demand for weaponry. In Britian’s case it could re-engage the manufacturing sector and maybe even lead Britain back to a trade surplus. Phil asks Steve why we seem happy to see government spending on defence, supporting growth in the private sector. What a shame we don’t apply the same logic to helping other sectors grow – sectors that don’t involve killing people.  Hosted on Acast. See acast.com/privacy for more information.

Phil, a marketing expert, grapples with Marx's idea of surplus value while discussing how brand perception impacts pricing, particularly luxury goods like Gucci handbags. He argues that modern marketing creates value beyond labor costs. Steve counters with the relevance of Marx's theories, highlighting the disconnect between consumer perceptions and true production value. They delve into the implications of income disparities in capitalism, exploring who really benefits from surplus value in today’s economy.

Steve Keen, a prominent economist known for his insights on financial instability, joins to discuss the stark economic differences between the US and Europe post-COVID. He emphasizes that the US's proactive government spending, like the Inflation Reduction Act, has fueled recovery while Europe struggles under rigid fiscal rules. Keen critiques misconceptions about national debt and highlights how US housing market dynamics boost consumer spending, in contrast to Germany's stagnation. The conversation dives into innovation, labor strategies, and the need for a rethink on economic policies.

The podcast dives into the gaps between overall economic indicators and the realities faced by low-income individuals. It critiques the reliance on aggregate statistics, revealing how they mask important disparities within social classes. The discussion emphasizes the need for nuanced economic models that consider income distribution, particularly as central bank policies impact these groups differently. Challenging traditional classifications of workers and capitalists, it advocates for a clearer understanding of today’s complex labor market dynamics.

The pandemic was the biggest economic disturbance since the second world war. In both cases supply chains were severely disrupted, either by German U-boats or, more recently, factories and borders closed to stop the spread of disease. On the face of it, though, we have got off relatively Scot-free. We haven’t seen the massive fall in GDP experienced after the war. In fact we saw a sharper fall in GDP in the 2008 financial crisis.What is different is how we have handled the readjustment. After the war the focus was on growth, with very low interest rates, even though the inflation rate in Britain almost reached 17%. This time we’re told growth is again the focus, but the policies being applied, by governments and central banks, seem to suggest otherwise. Hosted on Acast. See acast.com/privacy for more information.

A couple of years ago, when warning of the need to fight inflation, Jerome Powell, Governor of the US Federal Reserve says interest rate would rise and jobs might disappear. Yet, interest rates have risen, and unemployment hasn’t fallen anywhere near as much as expected. So, what’s going on? Does it mean, thankfully, that monetary policy isn’t working as well as expected? Now the talk is of a soft landing, where jobs have been protected and inflation has come down. The work of fine tuning by the central bank, or just a coincidence. Phil Dobbie and Steve Keen talk about the interplay between jobs, wages, inflation and central bank policy. Hosted on Acast. See acast.com/privacy for more information.

The growing wave of retirees is straining government budgets and welfare systems. As baby boomers age, potential solutions include attracting younger migrants or reconsidering budget balancing. The podcast delves into the pension crisis and critiques changes in economic policies that impact income and living standards for the elderly. It highlights the necessity for a shift in economic strategies to foster sustainability. The discussion also touches on the urgency for younger generations to drive political changes amid rising financial challenges.

The last time interest rates were this high they came down rather fast. This time central bankers are determined to manage a slow unwind and deliver a return to growth without wreaking havoc on the economy. Will they be successful? This week Steve Keen argues the high interest rates are inflicting damage without treating the problem. Inflation is being caused by businesses increasing their mark-ups. But, Phil asks, surely they are only able to do that because demand is outstripping supply. And what should interest rates return to? Central bakers call it the R* - is there a danger if they assume it’s too high we could drive ourselves towards debt deflation? Hosted on Acast. See acast.com/privacy for more information.