DENVER, COLORADO – Political economists Radhika Desai and Michael Hudson engage in a detailed discussion about the significant escalation of debt in the United States and around the world, shedding light on how neoliberal economics fosters extensive bubbles based on speculation and asset-price inflation.
In their latest Geopolitical Economy Hour episode, Desai and Hudson delve into the alarming rise of debt crises in all sectors of the economy, from household to government and commercial real estate. They also delve into the role of the Federal Reserve in perpetuating the cycle of debt through its tolerance of inflation to sustain asset markets.
Furthermore, the economists explore the impact of neoliberal policies on the economy, including the expansion of debt, the financial sector’s mounting influence, and the disadvantages faced by ordinary citizens due to a disproportionate financial system.
Desai and Hudson discusss how neoliberalism has led the economy to be dominated by a select group of sectors, including the financial industry, the military industrial complex, and pharmaceutical and technology companies. They emphasize the impact of monopolization and rent-seeking behavior on the economy as a whole.
Looking ahead, the economists plan on addressing the need for an alternative economic framework and exploring potential solutions to address the existing challenges and inequalities prevalent within the current financial system.
Their analysis sheds light on the need for a more equitable, sustainable, and inclusive economic model that prioritizes the needs of all citizens, regardless of their income level or social status. The discussion serves as a call to action for policymakers and stakeholders to work towards a more just and transparent economic system that benefits all members of society.