Michael Hudson: A Philosophy for a Fair Society

Image by Truthout.org via Flickr

by Michael Hudson
Writer, Dandelion Salad
June 28, 2022

Shepheard-Walwyn Publishers on Jun 16, 2022

Welcome to the Shepheard Walwyn podcast and a two part interview with Michael Hudson, perhaps to the world’s most influential (but rarely acknowledged) economist. Michael has had a remarkable career starting off as a practical or reality-based economist working for a variety of institutions looking and how banks really behave.

He looked at the balance of payments economics for David Rockefeller at Chase Manhattan Bank; worked for Herman Kahn at the Hudson Institute, and advised the US State Department on how they could fund the Vietnam War when the gold was running out. He now advises the Chinese Government on how to maintain an industrial economy and avoid the traps the US Finance economy has fallen into.

Michael’s most famous work is Super Imperialism, the Economic Strategy of American Empire but has also written extensively on ancient economies in the Near East.

He is one of our longest running writers having co-written the soon to be re-released eBook, A Philosophy for a Fair Society with Kris Feder and the late GJ Miller and. Incidentally, this book is a great introduction to his whole body of work so do check it out!

In this first episode we looked at how economics got corrupted from industrial economics where people made money by making things, to a finance economy where a small elite group makes money by manipulating financial instruments. There’s some meaty topics but I promise it’s worth your time.

Time stamps are as follows:
00:00 Welcome and introduction
02:27 How did he get into economics?
11:15 The effect of real estate and credit on the economy in today’s finance economy system
17:55 Why did the classical economists fight so hard to get rid of the rentier class?
21:21 Why was almost everyone a socialist at the start of the 20th century? And why was the public sector seen as the 4th factor of production?
31:07 The fight against classical economics and its concept of rent as unearned income
36:27 What Henry George got wrong
44:09 How the fight to maintain an industrial economy is being fought in Russia and China
53:11 How GDP calculations distort the value creation process today
59:13 How the University of Chicago and its graduates enjoy their free lunch
1:08:21 The New Road to Serfdom and the legacy of the new feudalism
1:11:51 Outro

Please note, that although the paperback copies are out of stock currently, it is only available in eBook.

Part 2

Shepheard-Walwyn Publishers on Jun 17, 2022

In this episode, we dig into Michael’s most famous work, Super Imperialism, the Economic Strategy of the American Empire. In this book, first published in 1972, Michael described how the USA was able to force the world to use the US dollar as its default international currency – the so-called ‘dollarisation’ of the world economy which accelerated in the 1960s to today. We also look at the reverse which is happening as we speak – the rapidly accelerating de-dollarisation due to US actions against Russia and China. Essentially this is where economies around the world stop using the US dollar as their trading and reserve currency and start using other currencies instead in terms of impact. This change may be the most important economic event since the Second World War.

Here are the timestamps for the conversation:
0:00 Welcome and focus on Super Imperialism
1:56 Understanding money and balance of payments deficits and how the USA avoided paying for its deficits
13:23 What’s Michael’s view on the economic impact of the Ukraine conflict?
16:59 What’s the real cause of the grain shortage and how are we moving to a multi-polar world?
28:01 Is Biden really in charge?
30:19 Working with Herman Kahn at the Hudson Institute.
37:00 How is China dealing with the Tech Billionaires?
41:02 What are the scenarios for Russia and China?
45:11 What is your take on China’s zero COVID policies?
49:25 Outro

Transcript

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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 A Philosophy for a Fair Society (2022), The Destiny of Civilization (2022), …and forgive them their debts (2018), 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 & 3rd Edition 2021), 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 Michael Hudson, mh@michael-hudson.com. Originally published June 18, 2022.

See also:

Super Imperialism by Michael Hudson (2nd Edition 2003; pdf)

From the archives:

The Fed’s Austerity Program to Reduce Wages, by Michael Hudson

Capitalism Is Working As Intended: The Madness of Capitalist Inequality, by Pete Dolack

Will Griffin: 4 Characteristics of the Current Phase of Imperialism

Michael Parenti: Globalization, the New Imperialism

Vijay Prashad: The Coming Food Crisis: Ukraine War Is Wake-Up Call for Global South

Michael Hudson: Sanctions: The Blowback

The American Empire Self-destructs, by Michael Hudson

Michael Hudson: The Neoliberal Exploitation Under a Super-Imperialism Lens

Michael Hudson: Super Imperialism: The Economic Strategy of American Empire

America’s Neoliberal Financialization Policy vs. China’s Industrial Socialism, by Michael Hudson

Michael Hudson: Changes in Superimperialism: The Position of the USA and China in our Global Economic System