Daily Archives: October 10, 2020


Capitalism’s Charade Continues

Michael Hudson has posted the interview Capitalism’s Charade Continues

Maybe I get this because I have read and heard a lot from Michael Hudson and Steve Keen over the last few years.

Here are some tips in case you aren’t familiar with these two economists.

Listen to Michael Hudson explain that it is not a transfer of wealth but an inflation of asset prices that is making the rich so much richer. If the bottom 90% have only a small fraction of wealth, there isn’t much wealth to transfer to the rich. The way the rich get richer is if what they already own becomes “worth” more.

Also try to understand the difference between Finance Capitalism and Industrial Capitalism. Michael Hudson slips in some important insights that you may miss if you are not prepared. You may not understand that Socialism and Industrial Capitalism are complementary. Socialism and Financial Capitalism are antithetical.

One of the things that neither one mentions in talking about corporate stock buybacks is that companies don’t have to pay dividends on the shares they have bought back. Those of us who hold stocks for dividend income get the remaining dividend payments to maintain our income, and the corporations get to use some of what used to go to dividend payments to pay the interest on the money they borrowed to buy back their stocks. So the rise in stock prices per share is only one of the benefits of stock buybacks.