Richard Wolff Interview: Capitalism Con Job, MMT, “Booming” Economy

YouTube has the video Richard Wolff Interview: Capitalism Con Job, MMT, “Booming” Economy.

Worth every second to watch this video.

Of course being an engineer, I tend to focus on the exceptions.

As for reform solving our problems, I don’t think the problem in trying to reform was such a failure. It succeeded pretty well from after the war to about mid 1970s as Wolff said. The trouble was that people who were moderately happy with those reforms did not see the massive effort that was going on to undermine those reforms. Moreover, as the older generation goes away, and the younger generation takes over, they weren’t steeped in the reasons why the reforms were necessary. They were easy targets for the propagandists who explained to them the horrors of the reforms. The liberal/progressives failed in counter-education to the people who hadn’t lived through it. By the time we got to Obama, he was too young to know this himself.

As for MMT, Wolfe is partly right, but partly ignorant of what the MMT proponents see as their whole program. Sometimes I even chide the MMT people for thinking that it is all about monetary policy perhaps because the name ot the theory has the word money or monetary in it. Keynes, back in the 30s, explained why monetary policy is like pushing on a string when you are trying to fix economic recession or depression. You need a very strong fiscal policy with direct purchases of goods and services by the government. MMT people see it is there, but they don’t give fiscal policy enough emphasis. MMT people see the Job Guarantee as an integral part of MMT, which is in part Fiscal policy. MMT is what opens the policy choices for far more fiscal stimulus. Anything to do with fiddling with taxes is mostly monetary policy. Government direct investment in expanding the economic capacity of the country is the fiscal policy that needs more emphasis.

All of the other reforms that Wolfe mentions are also part of fixing our problems. MMT is only part of the solution. I know that, and I think even the MMT bigwigs know that.

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