Capitalism’s Deeper Problem (Richard D. Wolff)

[Triana]

Recent press reports refer to troubling price increases for such assets as real estate, government bonds, companies targeted for acquisition and artwork. A New York Times front-page headline read “The Everything Boom, or Maybe the Everything Bubble.”

Western Europe, North America and Japan are stuck in a longer, deeper crisis than almost anyone expected. Millions have left the labor force. Wages, benefits and job security are declining; the so-called “middle classes” are evaporating.
Yet while asset prices soar, the production of goods and services, employment and workers’ incomes are not recovering and resuming growth. Instead, Western Europe, North America and Japan are stuck in a longer, deeper crisis than almost anyone expected. Millions have left the labor force. Wages, benefits and job security are declining; the so-called “middle classes” are evaporating. Having promised “recoveries,” desperate governments inject massive new quantities of money into their economies. What they accomplish most are fast-rising asset prices.

Given their persistent economic problems, consumers cannot borrow or spend more. Businesses neither borrow nor productively invest all the new, cheap money because they could not sell the extra output to distressed consumers. Instead, the newly injected trillions enable the speculation that drives up asset prices. The owners of those inflating assets celebrate a “recovery” that bypasses most of their fellow citizens. The Great Recession lumbers on.

To understand this puzzling and dangerous situation requires digging deeper than most current discussions of our economic problems. The global crisis since 2007 has captivated discussion about capitalism as a system. Yet we are faced now with more than just this latest of capitalism’s endlessly recurring “downturns” (or recessions or depressions). We see combined an extremely serious downturn in most of capitalism’s old centers, extremely unequal growth in its new centers and a resurgent global speculative bubble. This points to a deeper, worldwide problem that now challenges and threatens contemporary capitalism.

http://player.vimeo.com/video/62409423

THE REST:

http://billmoyers.com/2014/07/15/capitalism%E2%80%99s-deeper-problem/

[cantbeserious]

1. Prophetic 1994 Interview On The Impact Of Globalization

http://www.democraticunderground.com/1017201218

[Triana]

2. Absolutely. I had that post bookmarked! n/t

[octoberlib]

3. Great read!

[IkeRepublican]

4. I liked his idea on the American union sticking it to the Board of Directors...but...

You know damn well if some company said, "Take what we're offering or we're moving to China" and the union said "Fuck you, we'll do it ourselves" - the company moving to China would allocate millions in trying to sabotage the eventual competition.

And with our laws being constantly carved by those corporate interests, they'll do it - and get away with it...like they always do.

[defacto7]

5. A very good look at the history of Capitalism

in a nutshell. But me thinks the problems are deeper than he thinks.

With those last words in the form of a question, "Where are they taking us?" It doesn't take a crystal ball to know the answer... Just look to The Bilderberg Group for the battle plan. They have it pretty well spelled out, just without the naughty bits.

[RobertEarl]

6. Not a free market

Presently, if you are big enough and rich enough, you can borrow money from the government at near-zero interest. Then you turn around and invest that borrowed money in the stock exchange.

If you are big and rich enough. The rest of us are out of that market.

[nikto]

7. Richard D. Wolff is a national treasure and a shining light!