What are the Marxian implications of such a guaranteed-job program?
Hi Richard. I've been reading a lot lately from Stephanie Kelton, Warren Mossler, Randal Wray, Bill Mitchell, etc, about Modern Monetary Theory, and I think it's fascinating. However, one policy they advocate for consistently is a "Job Guarantee," whereby the government would offer a job to anybody who was ready, willing, and able to work, at a basic living wage. Macroeconomic claims that this would create full employment and price stability aside, I'm wondering: what are the Marxian implications of such a program? Can a program like that be structured in a way consistent with workers distributing their own surplus? (Also, do you have any other thoughts about MMT?) Thank you!
Could you please respond to this Michael Parenti lecture?
It's "Reflection On the Overthrow of Communism." It goes from 12.23-20.19 in the audio, although I agree with your logic, Dr. Wolff, what you argue validates what I also have advocated for years. creating and new economic system from the ground up by democratizing the enterprise , "co-ops etc. but Dr. Parenti argues, as do many on the left that a "pure socialism" cannot exist without a strong state etc. Top Down hierarchical centralize state power . maybe you could respond before I die which may be very soon since I have bile duct cancer "incurable" thank you
What is the role of a "manager" in a WSDE?
After having read a bit of Voltaire's Bastards and hearing a few of his speeches, I've become insterested in John Ralston Saul's thoughts on managers and managerial schools. What is the optimal role of a "manager" in a WSDE, should they exist, and what are your thoughts on the move towards university programs dedicated to different kinds of "management"?
Can you view this article on GM production?
I love Economic Update, and I'm a dedicated listener. I just wanted to bring this article to Dr. Wolff's attention: (http://www.freep.com/story/money/cars/general-motors/2016/07/12/supplier-bankruptcy-filing-could-disrupt-gm-production/86997150/). It's a perfect example of what happens when a monopsonistic purchaser controls the other firms that feed its supply chain. In this case, GM wouldn't let a company go into bankruptcy because it was under an obligation to sell GM the parts that GM needs to produce their vehicles. That sounds reasonable, but what comes next shows how truly ridiculous our economy is and has become. The reason why the company is facing bankruptcy is that GM had demanded the supplier sell the products at an unfair price that didn't allow them to function as an enterprise. So now GM has basically turned this firm into a colony that feeds their corporate empire. The smaller firm can no longer cover their costs, make their profits, and succeed as a capitalist enterprise because the larger firms won't pay them enough, but they must continue production despite all that because the larger firm demands that they do so. Love the show! Thanks to Dr. Wolff and all the folks at Democracy at work for their efforts.
Please discuss the money-supply effects of loan defaults?
As professor Keen observes, banks create money into the economy which has the effect of raising demand and driving GDP growth through turnover of money stocks. The money supply will depend on the leverage level defined by new loans minus repayments of principal and interest. It follows that defaults prevent the destruction of money through repayments (less liquidation of collateral). In this way, defaults contribute a large part of the real economy. To date I have seen no analysis to measure this affect, I suspect that many people are being sacrificed through foreclosures (etc) in order to balance the money supply when this role should be undertaken by government printing presses. I would appreciate your thoughts?
Counter fog-bots on your YouTube channel?
Are you aware that your youtube presence is under systemic attack by "fog-bots"? I have noticed this activity against the youtube presence of all major progressive speakers - it is clearly a well organised and funded tactic used to contain and limit the narratives of important progressive players. It works by flooding the youtube search with random posts of your work excluding your latest contributions: thus obscuring your overall narrative and most cogent contributions. I would suggest you look at installing a counter-bot to neutralize this attack and keep your current contributions at the top of the search list.
Thank you for your suggestion, Mitch, we will look into this issue for Prof. Wolff's channel.
[Article submission] US aircraft sales to Iran blocked by House
Dear Professor Wolff, I'm not sure if you have seen this amazing story from last Saturday's Guardian, so I thought I would send it on to you to consider for future updates. My first thought after reading the story was "holy cow", could this portend a coming re-alignment of lobbying forces in the US. Is it possible that, for the first time we could witness a battle of the titans, with the Israeli lobby coming face to face with corporate America, not to mention the possible implications for EU-Israel relations. Imagine this question being asked to the candidates in the upcomming presidential debates: "Do you support the recent House of Representatives legislation blocking Boeing's $25bn passenger aircraft sale to Iran and it's consequesces for Airbus's deal to sell Iran 118 aircraft?" https://www.theguardian.com/world/2016/jul/09/us-aircraft-sales-iran-blocked-jeopardising-25bn-boeing-deal Keep up the great work. Tim Bolger
Thanks for the submission, Tim!
How can we redefine the university coop?
Are there any colleges or universities that are organized as worker co-ops? Do the regional accreditors in the US acknowledge the worker co-op financial structure?
It's possible for any enterprise to organize as a worker cooperative, even academic institutions; there are some primary and secondary schools organized as worker coops, and these models can be expanded to higher education levels as well. Some colleges and universities also partner with coops for the benefit of their students.
Can you comment on this WSJ article?
Article: http://blogs.wsj.com/economics/2016/06/21/not-just-the-1-the-upper-middle-class-is-larger-and-richer-than-ever/?mod=e2fb My comment was: "When they say "the middle class is shrinking," they're right. But it's not because "the lower class is growing." This article shows that it's actually because "the upper middle class is growing" – and very rapidly. "As a representative of the "upper lower middle class," I want to suggest that we in the bottom 68% really need to think about what this means, and build bridges with that group, because they, perhaps even more than the 1% because of their relatively greater numbers, are a huge barrier to a more equitable society."
Can you please have a discussion with Dr. Webster Tarpley?
I was struck by Dr Webster Tarpley (host of the weekly radio broadcast, 'World Crisis Radio', overseer of the 'Tax Wall Street Party', and frequent Left Forum guest) offering a steadfast class-driven analysis of the dire predicament the 'precariat' faces in contemporary U.S society...to be heard in the second hour of his latest show. For Saturday, July 9th, easily accessible online. From his lengthy and impassioned detailing of the one-percent's decades-long refusal to contribute almost any of their loot to the demands of infrastructure, healthcare, education, etc., to his insistence that MLK's last campaign on behalf of impoverished strikers in Memphis ought to remind contemporary obsessions with ethno-racial minuate that poverty and deprivation appear as projects knowing, essentially, no colour,..an invitation from ' Economic Update ' to Dr. Tarpley would surely make for an incredible show!!!
Thank you for your suggestion. We will take keep this suggestion in mind for a future episode. Thank you for being a listener, Matthew!
Why does the population willingly stay asleep?
I suspect this "sleep" begins shortly after we are born. If a mother and a father are also asleep and steal a child's life and attention, the child learns to go along with this process, and indeed, becomes an active coconspirator! Then naturally, the child either grows up as easy fodder in a capitalist society or goes to prison! Imagine a future in which schools and prisons are administered by enlightened Buddhist monks. Until then we will be content with the capitalists stealing our natural human wealth. We start out in a stable, and it gets worse. The capitalists go far beyond harvesting the poor. Soon they are stealing from each other through transferable investments such as stocks and bonds. Brothers and sisters even manage to get each other disinherited. Why aren't there more non-transferable investments such as Social Security? "Waking up" comes about through radio programs such as yours, through trustworthy mentoring, and through resource-rich websites such as my own rock-bottom "Non-escalating.Verbal Self-defense" --http://www.1010playbook.com -- at present, a two-person operation. We are open to becoming a larger enterprise by some unknown means. Any ideas or suggestions?
What about the Fed's holdings of mortgage backed securities?
What would happen if the mortgage backed securities (MBS) owned by the Federal Reserve were to significantly decline in value?
Can there be a sustainable banking sector?
Dear Prof. Wolff: I'm a Swiss Banking student and have been following your content for quite a while now. I'm grateful for your weekly Marxian/progressive content as this important perspective is not represented in conventional media. Here's my question: Could you dedicate one episode of Economic Update towards the financial sector, especially it's banks and how we can make the banking industry work for broad societal goals again? I'm especially interested in what needs to be changed, which business fields are compatible with broad societal interests, what business models of banks would have to adapt and how the banking sector could collaborate with a real economy consisting of more and more worker co-ops. Also I would be glad if my personal data remains anonymous. Yours sincerely.
Thank you for your suggestion. I try to touch on this topic throughout some episodes but will keep this in mind for a more focused episode in the future. Thank you for being a listener.
How does 3D-printing affect modern labour movements?
Is 3D-printing a useful tool for modern labour movements and anti-capitalist organizations? In my opinion 3D-printing, automation, and lightspeed communication (thanks to the internet), gives people greater control over their lives and the possibility to start creating communities, cooperatives and all other kinds of institutions, organized under socialist principles functioning outside the modern capitalist economy.
Thank you for your question, Carlos. Please refer to Catherine's question about basic income, as I refer a bit to technology in the answer. I share you optimism in the possibilities new technologies provide but am understandably cautious of their use and development under a capitalist system that will prioritize their use for profit. However, technologies can be used by different groups for different means. Thank you for your question, Carlos.
Recommended reading material?
Could you or your staff recommend some books or other reading material on Marxism? I am currently reading "From Marx to Gramci" by Paul Le Blanc, but picked that up by random and do not know if there are better books or authors that I should look be looking for. Thank you so very much.
Thank you, Susan. I suggest a good compendium of key writings (one if the best and oldest us by Emile Burns and is called Handbook of Marxism). You may also, for Marxian economics, take a look at our book (myself and Steve Resnick, Contested Economic Theories, MIT Press, 2012). Going to Marx himself would also work; best there are Marx' The German Ideology, The Civil Wars in France, and the compendium of his notebooks called The Grundrisse. Thank you again for your question, Susan.