Capitalism's Crisis Deepens

Richard D. Wolff: Richard D. Wolff is Professor of Economics Emeritus, University of Massachusetts, Amherst and a Visiting Professor at the New School University in New York. Wolff’s recent work has concentrated on analyzing the causes and alternative solutions to the global economic crisis. His groundbreaking book Democracy at Work: A Cure for Capitalism inspired the creation of Democracy at Work, a nonprofit organization dedicated to showing how and why to make democratic workplaces real.

“The New York Times magazine has described Richard Wolff as “probably America’s most prominent Marxist economist”. And that is probably not an exaggeration in the description of this emeritus Professor of Economics at the University of Massachusetts, Amherst and visiting professor at the New School University in New York.”—Michael Roberts, author of The Long Depression

• Table of ContentsPreface .................................................................................................. iPart I: Crisis Capitalism ........................................................................ 1Capitalist Crisis and the Return to Marx ..................................................................... 2 The Myth of ?American Exceptionalism? Implodes ................................................... 13 The Revenge of Trickle-Down Economics .................................................................. 15 The Crisis Enters Year Five ........................................................................................ 17 In Economic Crisis, Capitalism Delivers the Bads .................................................... 20 A Tale of Two Lootings .............................................................................................. 22 Capitalism and Poverty.............................................................................................. 24 Five Reasons Why the Crisis Persists ........................................................................ 26 Capitalism’s Ideological Crutches ............................................................................. 28 Online Education: Another Phony ?Revolution? ........................................................ 31 Capitalism Efficient? We can do so Much Better ...................................................... 33 From Detroit to China to Bangladesh: Capitalism’s Costs, Capitalists’ Freedom ..... 35 Economic Development in Rana Plaza ...................................................................... 37Capitalism, Democracy, and Elections ...................................................................... 39 Pure? Capitalism is Pure Fantasy .............................................................................. 41How Capitalism’s Great Relocation Pauperized America’s Middle Class ................. 43 US Political Dysfunction and Capitalism’s Withdrawal ............................................ 46 Capitalism and Unemployment ................................................................................. 48 Capitalism and Democracy: Year-End Lessons ........................................................ 50 Political Corruption and Capitalism .......................................................................... 52Part II: Crisis Economics ................................................................... 54Austerity ........................................................................................................................ 55 US Tax Deal Brings Austerity Closer ......................................................................... 56 Main Street Moves against Wall Street ...................................................................... 57 Why Capitalism is Choosing Plan B .......................................................................... 59 Choosing Ryan, Embracing Austerity ........................................................................ 61 The Truth about Profits and Austerity ...................................................................... 63 The Great Austerity Shell Game ................................................................................ 64 Austerity, US Style, Exposed ..................................................................................... 67Austerity: Another Policy Mistake? .......................................................................... 69 Taxes............................................................................................................................... 71 Corporations to Government: Give Us More, Tax Us Less ....................................... 72 How the Rich Soaked the Rest of Us .......................................................................... 75 Who REALLY Pays Taxes .......................................................................................... 78 Public Sector.................................................................................................................. 80 Attacking Public Employees: Will New York Lead? ................................................... 81 Public Sector Squeeze (Max Fraad Wolff co-authorship) ......................................... 83 The Real Reason for Public Finance Crisis ................................................................ 86 The Hidden Money .................................................................................................... 88 Social Security’s Explosive Injustices ........................................................................ 90Banking ......................................................................................................................... 92 Bonuses for Bankers, Bankruptcy for Public Services .............................................. 93 Lehman Brothers: Financially and Morally Bankrupt .............................................. 95 Big Finance’s Pathology Compels the Logic of Socialised Banking .......................... 97 Debt ............................................................................................................................... 99 S&P’s Judgment on US Debt is Substandard and Poor .......................................... 100 Living within Our Means? and Standard and Poor’s Downgrade ......................... 102 Deficits, Debts and Deepening Crisis ...................................................................... 104 Europe’s Debt Crisis Deepens .................................................................................. 107 Deficits, Debts and Demagogues .............................................................................. 110 The So Called Recovery ................................................................................................ 112 Recovery Noises and Political Taboos ...................................................................... 113 Recovery, What Recovery? ....................................................................................... 116 Economic Recovery for Whom? ............................................................................... 118 After Five Years: Report Card on Crisis Capitalism ................................................ 120 Recovery Hype: American Capitalism’s Weapon of Mass Distraction ..................... 122Part III: Crisis Politics ...................................................................... 125Government Intervention ............................................................................................ 126 Government Economic Intervention for Whom? .................................................... 127 This is No Bailout for Main Street America ............................................................. 129 Federal Reserve ............................................................................................................ 134 Ben Bernanke’s Silence Speaks Volumes ................................................................. 135Bernanke’s Speech was Only a Minor Footnote to Enduring Crisis ........................ 137 Janet Yellen and I were taught to Revere Capitalism. But it’s a Failing System ...... 139 Debt Ceilings and Budget Battles ................................................................................. 141 Budget Battles: Sound, Fury and Fakery .................................................................. 142 Fiscal Cliff Follies: Political Theatre Distracts from Key Problems with the Fix ..... 144 Economic Policy Debates: Theatre of Distraction .................................................... 146 Political Economy of Partisan ?Debates? .....................................................................148 On President Obama’s Budget.................................................................................. 149 Ongoing Crisis and Liberal Blindness ...................................................................... 151 The Truth about ?Class War? in America ................................................................. 154 The Political Economy of Obama’s Re-Election ....................................................... 156 Class War Redux: How the American Right Embraced Marxist Struggle ............... 158 What GOP-Tea Party Risks With Block of New, New Deal ...................................... 161US Politics’ True Bipartisan Consensus: Capitalism is Untouchable ....................... 163Part IV: Crisis Responses, Going Beyond Capitalism ....................... 165Occupy .......................................................................................................................... 166 Occupy Wall Street Ends Capitalism’s Alibi ............................................................. 167 How the 1% got Richer, while the 99% got Poorer ................................................... 169 The Originality of Occupy Wall Street ...................................................................... 171 Harvard Students Join the Movement ..................................................................... 173 Criticism, Violence and Roosting Chickens .............................................................. 175 Occupy Production: A Vision for Democracy at Work ............................................. 176 Occupy the Corporation ........................................................................................... 178 Debates on the Left ..................................................................................................... 180 What’s left of the American Left? ............................................................................. 181 A New Dawn for the US Left ..................................................................................... 183 Socialism for the 21st Century ............................................................................... 185 Debating Capitalism – Redefining Outdated Terms ................................................ 191 Lessons from Labor ...................................................................................................... 193 Lost Elections, Strategic Lessons for Workers’ Movements Everywhere ................ 194 Detroit’s Decline is a Distinctively Capitalist Failure ............................................... 197 Organized Labour’s Decline in the US is Well Known. But What Drove It? ............ 199 Lessons From Chattanooga ..................................................................................... 202Alternatives ................................................................................................................. 205 The Threats of Business and the Business of Threats ............................................. 206 Manifesto for Economic Democracy and Ecological Sanity .................................... 208 Economic Democracy, Not Austerity or Keynesian Growth .................................... 213 Yes, there is an Alternative to Capitalism: Mondragon Shows the Way .................. 215 Silence is louder than Their Words: Effective Economic Policies Neither CandidateAdvocates .................................................................................................................. 218 Economic Prosperity and Economic Democracy: The Worker Co-op Solution ....... 221 Socialism and Workers’ Self Directed Enterprises .................................................. 223