Mrs. Thatcher’s Mean Legacy

The Queen Mother of Global Austerity and Financialization Michael Hudson and Jeffrey Sommers We typically honor the convention to refrain from speaking ill of the recently departed. But Margaret Thatcher probably would not object to an epitaph focusing on how her political legacy was to achieve her professed aim of “irreversibly” dismantling Britain’s public sector. Attacking central planning by government, she shifted it into much more centralized financial hands – the City of London, unopposed by any economic back bench of financial regulation and “free” of meaningful anti-monopoly price regulation. Mrs. Thatcher transformed the character of British politics by heading a democratically elected Parliamentary government that permitted financial planners to carve up the ...

How Neoliberal Tax and Financial Policy Impoverishes Russia – Needlessly

* A shorter version of this paper has been published in the Russian Academy of Sciences journal, Mir Peremen (The World of Transformations), 2012 (3):49-64 (in Russian). An earlier version was posted by the Global Policy Forum meeting in Yaroslavl, Russia, September 7-8, 2011, on its website. Russian poverty is unnecessary. Like all poverty in today’s high-productivity age, it is the result of bad policy. There is no technological need for it, nor is Russia lacking in a full spectrum of natural resources and economic potential. So future historians no doubt will puzzle over how the nation was convinced to de-industrialize its economy and impoverish much of its population in favor of exporting fuels and minerals, and to impose ...

Obama Wins for whom?

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As published in Counterpunch The Democrats could not have won so handily without the Citizens United ruling. That is what enabled the Koch Brothers to spend their billions to support right-wing candidates that barked and growled like sheep dogs to give voters little civilized option but to vote for “the lesser evil.” This will be President Obama’s epitaph for future historians. Orchestrating the election like a World Wrestling Federation melodrama, the Tea Party’s sponsors threw billions of dollars into the campaign to cast the President’s party in the role of “good cop” against stereotyped opponents attacking women’s rights, Hispanics and nearly every other hyphenated-American interest group. In Connecticut, Senate candidate Linda ...

Inner Econ Geek

This interview with Profs. Hudson, Bill Black and Randy Wray at UMKC describes how the U.S. Financial sector has become criminalized, and describes how the economy will continue to shrink sharply after the November presidential election. Listen via here KCUR writes: Want to satisfy your inner econ geek? You've come to the right place. On Thursday's Central Standard, we’re having a roundtable talk on all things Post-Keynesian with distinguished UMKC research professors William Black, Randall Wray and Michael Hudson. Find out why the dynamics of private sector are essential to understanding the economy. Plus, we’ll discuss government transparency and accountability. If you're just little rusty on your economic theory and policy, join us at the table for the perfect refresher course.

Financial Conquest or Clean State?

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This is an edited and expanded transcript from a live phone interview by Dimitris Yannopoulos for Athens News, September 2012. Dimitris Yannopoulos: As an academic with a strong grounding in economic history as well as banking and a Clean Slate, professor Michael Hudson has built his own school of thought - distanced from both Keynesians and neoliberals – with regard to the stark options facing a contemporary Western world drowning in unsustainable debts of governments and households at the mercy of global banks and financiers. Options for the indebted amount to a choice between feudal-like servitude and freedom, because “debts that can’t be paid, won’t be.” That has become Prof. Hudson’s well-known tag line. He explains his logic in this ...

Modern Money and Public Purpose

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Here is the recording of the presentation I gave at the Modern Money and Public Purpose seminar recently. My delivery begins at the 43 minute mark. I highly recommend Randy's presentation beforehand. Moderator: William V. Harris, William R. Shepherd Professor of History and Director, Center for the Ancient Mediterranean, Columbia University Speaker 1: L. Randall Wray, Research Director of the Center for Full Employment and Price Stability and Professor of Economics, University of Missouri-Kansas City Speaker 2: Michael Hudson, President, Institute for the Study of Long-Term Economic Trends and Distinguished Research Professor, University of Missouri-Kansas City Tuesday, September 11, 2012 About the Seminar Series: Modern Money and Public Purpose is an eight-part, interdisciplinary seminar series held at Columbia Law School over the 2012-2013 academic ...

Surviving Progress transcript

Below are the transcripts from the film Surviving Progress I was a part of. The film can be purchased here. Canada FILM group on PROGRESS 2010: The Road to Debt Serfdom Cinémaginaire, ASHOP (USA): Interview with Michael Hudson – Tapes #112-113-114 Theme: In the name of “progress,” the world is regressing to neoserfdom. Mainstream economics has become a body of assumptions selected to rationalize a “trickle-down” tax policy favoring the financial sector driving the rest of the economy into debt, turning the economic surplus into interest charges – to be recycled into yet more debt creation. Claiming that wealth at the top pulls up the rest (“the rich are job creators”), the policy inference is to shift taxes off financial wealth and property ...

Set Up To Fail

Renegade Economists interview 05.09.2012 Interview with Professor Michael Hudson by Karl Fitzgerald Listen KF: We welcome to the show Professor Michael Hudson, Distinguished Research Professor at the University of Missouri-Kansas City, the leading Post-Keynesian university in America. It’s been fantastic to see, Michael, that the public profile of UMKC has really taken off with Randall Wray, yourself and Stephanie Kelton being quoted quite widely these days. Can you explain what Post-Keynesianism is? MH: The fact that we all have a very similar approach is what has enabled us to challenge the neoliberal Chicago School. Our approach is heterodox - we see that money is created, basically, on computer keyboards. When a bank lends money, they create a deposit by writing a loan. You ...

Wall Street’s War Against the Cities

Why Bondholders Can’t – and Shouldn’t – be Paid The pace of Wall Street’s war against the 99% is quickening in preparation for the kill. Having demonized public employees for being scheduled to receive pensions on their lifetime employment service, bondholders are insisting on getting the money instead. It is the same austerity philosophy that has been forced on Greece and Spain – and the same that is prompting President Obama and Mitt Romney to urge scaling back Social Security and Medicare. Unlike the U.S. federal government, most states and cities have constitutions that prevent them from running budget deficits. This means that when they cut property taxes, they either must borrow from the wealthy, or cut back employment and public ...