Dr. Rasmus discusses 4 key events of the past week and how they’re related: (1) What does the preliminary report on 2nd Quarter 2021 US GDP really indicate? Is it a ‘V’ or just the first half of a ‘W’ given economic indicators showing a slowing of US recovery in the second half 2021. (2) the Federal Reserve meeting showed chair Powell is intent on continuing pumping in $120B of free money to the banks and investors every month for at least another year. Plus keep a second $1T spigot is now permanently open in the Repo Market for stock speculators as well. Why then are banks and investors continuing to get all the free money, while politicians keep cutting the promised fiscal stimulus for working and middle class households and the poor? Why Sanders’ $3.5T Family Bill Dead on Arrival! (3) Rasmus next addresses the phony Infrastructure deal and the Dems latest concessions to McConnell & Republicans in the name of ‘bipartisanship’. (4) How is Biden’s & Dem’s retreat on infrastructure spending—from original $2.3T to $500B now—tied to the launch, six months after, of US House hearings on the January 6 Capitol insurrection? Why no budget reconciliation & filibuster will mean no electoral reform which will seal the Dems defeat again in 2022. Why the crisis of the decline of US Democracy continues to intensify.
In this final 3rd show discussion the differences between what Marx said and what economists today erroneously say he said, Dr. Rasmus addresses two historic issues in Marx’s analysis of capitalism. First is the idea, held by many contemporary economists who consider themselves Marxists, that under capitalism the rate of profit tends to decline over time, leading to ‘crises’ in the form of severe business cycle contractions (recessions, depressions, etc.). Rasmus shows this is incorrect, that Marx’s ‘Falling Rate of Profit’ tendency is a ‘in the long run’ argument and about breakdown of capitalism and not an explanation of short run business cycle ‘crises’ like economic depressions. Rasmus debunks the assumptions in the Falling Rate of Profit tendency argument and explains how 21st century capitalism cannot be expressed in such terms. The second issue addressed is by critics of Marx, contemporary mainstream economists, who hold that Marx failed to explain how values get transformed into prices in the real world. Thus Marx’s explanation of how exploitation of labor drives capitalist profits is never proven by Marx. Rasmus concludes with commentary why both contemporary Marxists and Mainstreamers fail to understand the financialization of capitalism today as a key source of crises, short run and long.
In this final 3rd show discussion the differences between what Marx said and what economists today erroneously say he said, Dr. Rasmus addresses two historic issues in Marx’s analysis of capitalism. First is the idea, held by many contemporary economists who consider themselves Marxists, that under capitalism the rate of profit tends to decline over time, leading to ‘crises’ in the form of severe business cycle contractions (recessions, depressions, etc.). Rasmus shows this is incorrect, that Marx’s ‘Falling Rate of Profit’ tendency is a ‘in the long run’ argument and about breakdown of capitalism and not an explanation of short run business cycle ‘crises’ like economic depressions. Rasmus debunks the assumptions in the Falling Rate of Profit tendency argument and explains how 21st century capitalism cannot be expressed in such terms. The second issue addressed is by critics of Marx, contemporary mainstream economists, who hold that Marx failed to explain how values get transformed into prices in the real world. Thus Marx’s explanation of how exploitation of labor drives capitalist profits is never proven by Marx. Rasmus concludes with commentary why both contemporary Marxists and Mainstreamers fail to understand the financialization of capitalism today as a key source of crises, short run and long.
Dr. Rasmus continues the clarification of what Marx really said vs. what contemporary economists (Marxist & Mainstream anti-Marxist) claim as Marx’s economics. Dr. Rasmus explains the 10 conceptual innovations Marx makes on the framework of classical economists before him (Smith, Ricardo, et. al.) to develop his theory of capitalist exploitation that drives the system to a breakdown crisis in the long run. After recapitulating the origins of Marx’s economic analysis and concept innovations on classical economics, begun last week, Dr. Rasmus discusses in Part 2 today the ‘heart’ of volume I of Capital: Marx’s conceptual innovations of Absolute and Relative Surplus Value, which explain how labor is exploited in production, creating a surplus that capitalists appropriate for themselves. Dr. Rasmus provides examples of how both forms of exploitation exist today in 21st century and are in fact increasing, leading to more exploitation of labor, not less. Plus, how ‘secondary’ forms of exploitation are also becoming more widespread. (Next week: Part 3 on the arguments against Marx by mainstream economists and the weak analyses by those calling themselves contemporary ‘Marxist Economists’)
Dr. Rasmus continues his analysis of three great economists (Keynes, Marx, Smith) in today’s first of 3 part series on ‘Marx’s Economics’. What are the origins of Marx’s economic thought? How it critiqued classical economics before him, while borrowing and adapting concepts from the classicals. What were the original contributions of Marx’s economics, conceptually and otherwise. Why Marx is about long run, supply side evolution of capitalist economy and the possibility of eventual breakdown of the system (and not about explaining recessions or depressions). Marx’s great innovations in quantifying the labor theory of value and explaining how and why capitalism evolves fundamentally by means of exploitation of labor. (Next week: contemporary examples why exploitation of labor is intensifying in both absolute and relative terms in the USA over at least the last 40 years. What Marx could not see in the evolution of capitalism in the 21st century).
Dr. Rasmus concludes the 3-part overview of why Keynes’ economics is not ‘Keynesian’, focusing on the sometime radical conclusions and analysis of Keynes that is conveniently ignored by mainstream economics. Recapping the two prior shows explanation, Rasmus addresses Keynes’ views on financial asset markets, financial instability, and the rise and growing influence of professional speculators on the stability of the capitalist system. Why financial markets are often key to capitalist instability (contrary to mainstream economists and ‘Keynesians’ who largely ignore its role). The show begins with a brief commentary on the recent US Supreme Court decision further again gutting US voting rights and Democracy, giving a new green light of support to expanding voter suppression in the pro-Trump legislators in the red states. Check out Rasmus’ posting of how Neoliberalism is driving Democracy decline, in last chapter of his 2020 book, ‘The Scourge of Neoliberalism’, posted on http://jackrasmus.com blog later today, July 2.)
Dr. Rasmus begins today’s show with an analysis of Biden’s capitulation to McConnell and Republicans yesterday, in which he accepts their proposal for $579B spending on infrastructure instead of his original $2.3T (reduced in steps in recent weeks to $1.7T and then $1.1T). Gone are proposals for spending on child care, elderly, climate, and other non-corporate proposals in Biden’s original bill. Rasmus explains why this ‘deal’ was engineered from the beginning, ultimately in order to ensure Biden’s proposed tax hikes on the wealthy and investors was not necessary. The corporate wing of the Democrat party (with Manchin running ‘point’ as cover for Biden) always wanted this smaller bill. Bipartisanship was the key word always signaling it. Democrat party ‘spin’ to sell the deal now. Why ‘follow on’ bills to restore the cuts are DOA. In second half of the show Dr. Rasmus continues explaining why ‘Keynes’ Economics’ is not Keynesian, and how the latter expunged elements of Keynes’ analysis it found too radical—including critique of financial speculation, capitalist trends toward income inequality and rising unemployment, and why ‘trickle down’ (Keynesian) economics would not work. (For more on Infrastructure deal check out Dr. Rasmus’ blog articles at http://jackrasmus.com).
As promised last week, Dr. Rasmus begins a series of deep analyses of three great economists: Keynes, Marx and Adam Smith, showing how mainstream economics distorts the views of all three. What did they really say and how all were critical of capitalist economy. Today’s first in the series discusses Keynes’ 1935 book, ‘A General Theory of Employment, Interest & Money’, explaining why what is known as ‘Keynesian’ (aka mainstream) economics is not the same as Keynes’ analysis of capitalist economy. Dr. Rasmus explains contemporary mainstream economics cleverly ignores key arguments in Keynes’ original work, creating a bastardized version composed of a mix of pre-Keynes economic ideas—that Keynes himself strongly rejected—and selective, ‘safe’, economic analysis from the General Theory. Why Keynes believed capitalism’s Achilles heel was its tendency to create ever-growing income inequality while failing to deal with chronic unemployment. Why and how Keynes argued against policies that reduced and subsidized business costs (interest rates, wages, tax cuts) as the way to generate investment and growth. And why he foresaw and warned against emerging financial speculation (in stocks and other financial asset markets) becoming the dominant trend in capitalist economies, at the expense of real investment that made things, created jobs, and real incomes. (In subsequent weeks on the show Dr. Rasmus will continue the analysis of Keynes, as well as Marx and Smith—explaining what they really said and not what the media and most economists portray as their views).
Today’s show analyzes the just release Consumer Price Index inflation for May and reports on the latest developments in the ‘Infrastructure Follies’ phony negotiations going on in Congress and the Biden administration. How ‘smoke & mirror’ offers and counter-offers are steadily reducing the level of infrastructure spending and, in turn, how Biden is cutting out his tax hike proposals in turn (and what tax items are likely next). The second half of the show begins a series of shows on what did 3 noted economists (Keynes, Marx and Adam Smith) actually say—not what the media. Critics, and even economic profession claim they’ve said. What is science and what is ideology in economics, in other words. Today, the show begins with Keynes, continuing next week. How Keynes’ economics is quite different from what is called ‘Keynesian Economics’. Why has much of what Keynes actually said been purged from economics, academic and public, and replaced with what he himself, Keynes, critiqued back in the 1930s? (Subsequent shows will do the same analysis and commentary on Marx’s economics and Smith’s. Be surprised as to what they all actually said.)
In the first half hour of today’s show, Dr. Rasmus reviews a June 1 article by the San Francisco Federal Reserve showing that the US labor market is far weaker than the ‘headline’ unemployment rate indicates. Rasmus argues that jobs are being recalled (not created) at a slow rate and likely with fewer hours and thus weekly earnings. The long term historic trend, of a ‘jobless recession’ recovery will continue in 2021 and beyond. The second half hour of the show addresses Biden’s historic ‘about face’ in infrastructure negotiations this past week: cutting corporate taxes to 15% instead of raising them to 28% as Biden had promised + reducing his infrastructure spending proposal again even further, from the prior week’s $1.7T (down from $2.25T) to $1 trillion. The ‘smoke and mirrors’ moves of Republican counterproposals, and Democrats, are discussed. The final number will likely be around $1T, as predicted. All that remains is what will be the composition of spending of that $1T. (Check out Dr. Rasmus’ article in Counterpunch, Znet, and other sources, as well as his blog, jackrasmus.com, for a more detailed print publication analysis of the political games behind the infrastructure negotiations).
