The Hill channel on YouTube has the video Author: How elites sold out American workers and how to fix it.
Author Matthew Klein discusses his new book, Trade Wars are Class Wars, in which Klein explains how today’s trade conflicts are caused by governments promoting the interests of elites at the expense of workers.
For years, I have been trying to get people to understand this. One thing not mentioned in the interview is that countries used to negotiate with each other on tax laws to prevent the wealthy from fleeing one country to go to another country that charged them less in taxes. George W. Bush put a stop to the USA’s participation in these negotiations. Biden could get these talks started again, but I bet he won’t.
The Jain Family Institute channel on YouTube has the video Trade Wars Are Class Wars: Adam Tooze, Michael Pettis, & Matthew Klein in conversation. There are echo problems when Michael Pettis speaks.
Even just half way through this second video, I find the situation explained with much more insight than I have been able to figure out on my own.
Watching this second video to the end, I notice that all the people involved in the video fail to recognize the overhead on the USA economy due to the financialization of the USA economy. If you remove this overhead, then people in the USA don’t need increased wages to have a higher standard of living.
We have to restore the laws against usury, we have to change the tax advantages of financialized enterprise, we have to restore laws against monopolies and trusts. If we were able to do that, and then have the Federal Reserve Bank (Federal Government) payoff the private debt burden and prevent the debts’ rebuilding, then we could compete in trade in the international arena. If restoring anti-usury laws made it unprofitable for the credit card companies to make a profit the way they do now, there would be less of an incentive for them to entice people into credit card debt. If public colleges were free, student debt wouldn’t get built up again. If the tax cuts to the rich were rescinded and replaced by tax cuts to the not rich, the need for the not rich to borrow money to pay taxes would go away. This is all laid out by MMT proponents like Stephanie Kelton and particularly Michael Hudson.
Undoing Joe Biden’s bankruptcy reform laws would also take the incentive out of financializing the economy.
Making it illegal for vulture capitalists to rob private pension plans of the companies they take over, would also slow down that pernicious process. The vulture capitalists make their money by buying companies, stripping the assets, and putting the proceeds into their own pockets. If we could put the brakes on the takers like Mitt Romney, it would go a long way toward solving our economic problems.
Perhaps the boo discount code YETWC will prove useful in purchasing the book.
Reading Trade Wars Are Class Wars is essential. I am half way through the book. I am sure I’ll have to digest a lot and think about what I have read a lot before I will fully appreciate it. I am learning that even some of the recent economic miracles in China and Germany were won on the backs of the lower classes.
Looking at my subsequent post Polarisation, Then a Crash: Michael Hudson on the Rentier Economy you get to see Michael Hudson explain the role of the overhead in stifling our economy.