“We need to understand the limits of capitalism. Capitalism has serious limits in the sense that it puts exchange value over use value. And this is by definition irrational according to logic of need, but very rational according to logic of profit...

But we also need to understand that we are the ones who have produced the system. That's where the empowering voice comes out, because it says, okay, if we have created it, we can also change it.

And guess what? The system is really fragile. That's why we need austerity constantly to protect it.”

Economist Clara Mattei talks to Steve about the launch of the Center for Heterodox Economics (CHE) on the eve of its inaugural conference, February 6th through 8th, in Tulsa, OK.

In the episode, Clara expresses her frustration with the inadequacies of mainstream economic education that neglects the real-life challenges faced by students and communities and explains that the CHE is being designed to break down traditional academic barriers and elitism.

She mentions names of some participants in the upcoming conference, including Jamie Galbraith, Anwar Shaikh, Branko Milanovic, and Robert Brenner.

From the Mission page on its website, the CHE is built on the following pillars:

 1. Critical Political Economy: Understanding the dynamics of power, class, and social relations that shape economic outcomes. 

2. Critical History of Economic Thought and Economic History: Exploring diverse schools of thought and the historical evolution of economic systems to inform our understanding of contemporary challenges. 

3. Praxis: Economics, at its core, should be about more than analysis—it should be about action. At CHE, we are dedicated to producing knowledge that not only explains the world but transforms it.

For information, go to https://sites.utulsa.edu/chetu/

Clara E. Mattei is Professor of Economics and Director of the Center for Heterodox Economics (CHE). She previously taught at the The New School for Social Research Economics Department and has been a fellow of the Institute for Advanced Studies, Princeton. Her research contributes to the history of capitalism, exploring the critical relation between economic ideas and technocratic policy making. Her first book, The Capital Order: How Economists Invented Austerity and Paved the Way to Fascism (University of Chicago Press 2022) is translated in over 10 languages. Her current book project critically reassesses the Golden Age of Capitalism (1945-1975) and its Keynesianism through the lens of austerity capitalism.