Michael Hudson's full interview, Mitch Feierstein on the US elections and The Last Days of the World's Reserve Currency?
Meet the Renegades with Michael Hudson
With every major financial recovery since the second World War beginning in a place of greater debt than the one before it, how could we not have foreseen the financial crisis of 2008? In this episode of Meet the Renegades, economics professor and author, Michael Hudson argues we did.
How could an economy that created so much debt also save the banks rather than the economy itself after 2008? Michael discusses the phenomenon of debt deflation and how the economic curriculum should change in education.
"If you're teaching economics, you should begin with the relationship between finance and the economy, between the build up of debt and the ability to pay."
Michael discusses the 'Great Moderation' - the image of a healthy economy in which job productivity was increasing, labor complacency was at an all-time low but reflected a terrible financial position. He argues that 'traumatized' workers were too in debt to fight for better working conditions leading up to the 2008 financial crisis, and how this reflects neo-classical ideas.
We delve into what exactly is un-earned wealth? Is all wealth earned wealth? Referencing John Bates Clark's philosophy (being that un-earned income does not exist) Michael examines how these ideals are present in our economy today, which we see reflected in Wall Street and the 'criminal class'. Michael explains where we see un-earned income or 'economic rent' in our economy today and how we're trained to believe that this is the way it needs to be when in fact, it doesn't.
"You don't need intelligence to make money, all you need is greed."
Michael offers a solution, urging the importance of writing down the debt and keeping basic services in the public sector, ridding the economy of financial tumours (the Donald Trumps of the world) through a proper tax policy based upon the this public sector model.
"In this sense, the value of a unit of currency is not the measure of the value of an object, but the measure of one’s trust in other human beings."
About Renegade Inc.
Renegade Inc. is a new mainstream media platform which creates and broadcasts content aimed at those who think differently. Its mission is to inform, illuminate and inspire, focusing on three sectors: Rethinking Finance, Business & Economics, Education fit for the future, and Inspirations for culture and the creative arts.