Economic Update with Richard D. Wolff: Best Of Series Part 3 – Interviews Echoing Today

In this compelling episode of Economic Update with Richard D. Wolff, host Richard D. Wolff curates a selection of impactful interviews from previous episodes, highlighting enduring economic issues and their intricate connections with law, politics, and global dynamics. This long-form summary delves into the key discussions with three distinguished guests: Leonard Goodman, Stephanie Kelton, and Yanis Varoufakis, capturing their insights on the interplay between the legal system and the economy, the rise of corporate power, and the shifting landscape of the global economy.

1. Leonard Goodman: The Intersection of Law, Politics, and the Economy

Timestamp Highlights: [04:10 – 16:48]

Leonard Goodman, a seasoned Chicago criminal defense lawyer with 25 years of experience, engages in a profound discussion about how politics permeates the legal system and, by extension, the economy. Goodman elucidates three primary ways in which politics influences the criminal justice system:

1. Politically Motivated Prosecutions: Goodman references the investigation into former President Donald Trump and his associates, highlighting concerns over politically charged legal actions. He states, "politically motivated investigations and prosecutions... show that highly politicized opposition research found its way into a criminal investigation of Trump and his associates during the election" ([04:44]).

2. Protection of Corporate Interests: He underscores the federal government's role in safeguarding corporate interests, citing examples like the aggressive prosecution of pipeline protesters and the tragic case of Aaron Swartz. Goodman remarks, "You could look at what's going on with the pipeline protesters... and Aaron Swartz... he downloaded some copyrighted materials, not for personal profit, but to release them to the public. And he was aggressively prosecuted... and he took his own life tragically" ([05:20]).

3. Selective Prosecution and Economic Inequality: Goodman critiques the disparity in legal accountability, where high-level corporate figures often evade prosecution while low-level individuals face harsh penalties. He illustrates this with the mortgage fraud crisis, stating, "Eric Holder candidly admitted in 2013, they don't prosecute bankers... But who does go to jail? It's generally the politically powerless" ([07:10]).

Goodman emphasizes the systemic flaws where economic policies and legal practices disproportionately impact marginalized communities, perpetuating economic instability and inequality.

2. Stephanie Kelton: Corporate Power and Economic Stability

Timestamp Highlights: [09:22 – 16:48]

Stephanie Kelton, a renowned economist and proponent of Modern Monetary Theory (MMT), delves into the concept of inverted totalitarianism and its implications for economic policy and societal stability. Drawing from Sheldon Wolin's framework, Kelton explains how corporate interests have overshadowed democratic processes:

• Inverted Totalitarianism: Kelton describes this as a system where "economics takes precedence over politics," contrasting it with traditional fascism where "politics would take precedence over economics." She argues that in today's landscape, "power really does rest now completely in the hands of corporate America." ([09:22])

• Consumer Control and Debt: She discusses how consumerism and debt have become tools for controlling the populace, referencing Wolin's idea of "cheap consumer products produced in sweatshops overseas and access to easy credit." Kelton highlights the pitfalls of corporatized credit systems, warning of "debt peonage" where individuals are trapped by escalating credit costs and mounting medical expenses ([11:29]).

• Potential for Social Unrest: Kelton warns of the impending "debt bubble implosion," particularly with student debt exceeding a trillion dollars, which could unleash widespread anger and exacerbate societal divisions. She critiques the Democratic Party for "committing political suicide by refusing to address the issues that gave rise to Trump and the insurgency of Bernie Sanders about hate," suggesting that unresolved economic grievances fuel extremist movements ([14:23]).

Kelton's analysis underscores the urgent need for systemic economic reforms to mitigate corporate dominance and address the root causes of economic and social instability.

3. Yanis Varoufakis: The Fragmentation of the Global Economy and the Threat of Conflict

Timestamp Highlights: [16:58 – 30:57]

Yanis Varoufakis, an esteemed economist, former Greek Finance Minister, and author of "What Killed Capitalism", provides a critical examination of the evolving global economic order. Varoufakis addresses the disintegration of the US-led economic dominance and the emergence of rival blocs:

• Cloud Capital vs. Traditional Finance: Varoufakis introduces the concept of "cloud capital," a fusion of internet-based technologies and finance, primarily dominated by American and Chinese enterprises. He warns that this shift threatens the US's "hegemony of the dollar payment system," suggesting that China’s advancements in cloud finance could undermine the dollar's global supremacy ([22:00]).

  "Cloud capital has merged with Chinese finance capital to create what I call cloud finance in China because that is a clear and present danger to the predominance of the dollar payment system." ([23:44])

• Potential for Armed Conflict: He expresses concerns over geopolitical tensions, particularly regarding Taiwan, attributing the heightened risk of conflict to China's challenge to the dollar's dominance. Varoufakis cautions that the US might resort to extreme measures to preserve its economic hegemony, including the possibility of "nuclear war to prevent losing that monopoly." ([25:07])

  "Why should the Emiratis or the South Africans... submit to the predominance of the dollar payment system where the United States government can confiscate billions and billions at will of whoever it doesn't like, but the United States will nuke itself if it needs to do it in order to preserve its dollar monopoly." ([25:07])

• Europe’s Irrelevance: Varoufakis is decidedly pessimistic about Europe's role in the global arena, labeling it as "absolutely irrelevant." He argues that internal divisions and the lack of cohesive leadership within the European Union render it incapable of influencing or stabilizing global economic and political tensions.

  "Europe is irrelevant, Rick, absolutely irrelevant." ([27:51])

  He laments the decline of unified European power, pointing out that contemporary European leadership lacks the influence and control necessary to impact global dynamics, thereby contributing to worldwide instability ([30:36]).

Varoufakis emphasizes the urgent need for global solidarity and systemic economic overhauls to prevent catastrophic conflicts driven by economic rivalries and the collapse of established financial systems.

Conclusion

This episode of Economic Update with Richard D. Wolff masterfully weaves together critical analyses from experts across the legal and economic spectra. Leonard Goodman brings to light the symbiotic relationship between politics and the legal system, exposing systemic injustices that exacerbate economic inequality. Stephanie Kelton expands on the overarching dominance of corporate power and its detrimental effects on democratic institutions and social stability. Lastly, Yanis Varoufakis presents a sobering view of the fractured global economy, highlighting the looming threats posed by technological and financial upheavals.

Together, these interviews offer a comprehensive exploration of the multifaceted challenges facing contemporary economies, underscored by the urgent need for transformative policies and global cooperation to foster equitable and sustainable economic systems.

Notable Quotes:

• Leonard Goodman ([04:44]): "politically motivated investigations and prosecutions... show that highly politicized opposition research found its way into a criminal investigation of Trump and his associates during the election."

• Stephanie Kelton ([09:22]): "power really does rest now completely in the hands of corporate America."

• Yanis Varoufakis ([23:44]): "Cloud capital has merged with Chinese finance capital to create what I call cloud finance in China because that is a clear and present danger to the predominance of the dollar payment system."

• Yanis Varoufakis ([25:07]): "Why should the Emiratis or the South Africans... submit to the predominance of the dollar payment system... but the United States will nuke itself if it needs to do it in order to preserve its dollar monopoly."

• Yanis Varoufakis ([27:51]): "Europe is irrelevant, Rick, absolutely irrelevant."

This summary encapsulates the essence of the episode, presenting a cohesive narrative that connects legal, political, and economic dimensions shaping our world today.