TheRealNews on Jan 1, 2018
Low interest rates, “quantitative easing,” and the mitigation of antitrust laws led to more mergers and acquisitions in 2017, but that’s only going to fuel greater wealth inequality and tighten the corporate grip on the political system, explains economist Michael Hudson.
“MICHAEL HUDSON: Well, my answer may seem counterintuitive. I think the Republican tax law is so bad that it almost guarantees a Republican victory because it’s so bad. But the seeming irony is, it’s so bad that it enables the Democratic Party to think, A-ha, it’s so bad that all we have to do is be the lesser evil. We can now kick out all the supporters of Bernie Sanders, kick out anyone who supports Elizabeth Warren. We can now declare war on the pro-labor part of the Democratic Party whereas the Republican Party is the party of the 1%, we can be the party of the 10%, and we can all agree that we’re against the 90%. And there’s going to be such a bloodbath in the Democratic Party as the Hillary supporters fight against the Bernie supporters, fight against labor, fight against unionization, fight against consumers. That’s basically the Democratic program and this is going to end up fracturing the Democratic Party.
I can’t believe that Bernie and Elizabeth and the others are going to stand by and let the Democratic Party be captured by the donor class that controls it now, and I think there’s going to be a bloodbath that is probably going to take more than four years. Finally, my hope is that the Democratic party will split, the donor class will go where it belongs with the rest of the Republican Party, leaving a rump party to become a new democratic party, either a democratic socialist party or something like the British Labour Party became when it threw off the Tony Blair overhead. That’s what it looks like is going to happen in America. The lesser evil policy of the Democrats isn’t going to wash much as really, a campaign against the awful Trump tax giveaway.”
Michael Hudson is President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of J is for Junk Economics (2017), Killing the Host (2015), The Bubble and Beyond (2012), Super Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt: A History of Theories of Polarization v. Convergence in the World Economy (1992 & 2009) and of The Myth of Aid (1971), amongst many others. He can be reached via his website, firstname.lastname@example.org.
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