Alternative Visions

Alternative Visions - Marx’s Economics vs. Contemporary Marxist Economics: Part 3

In this final 3^rd 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 21^st 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.

Alternative Visions - Marx’s Economics vs. Marxist Economics: Part 2

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 21^st 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’) 

Alternative Visions - Marx’s Economics vs. ‘Marxist’ Economics: Part 1

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 21^st century).

Alternative Visions - Part 3: Keynes’ Economics vs. Keynesian

 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.)

Alternative Visions - Biden Capitulates on Infrastructure + Part 2: Keynes’ Economics vs. ‘Keynesian’

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).

Alternative Visions - Why Keynes’ Economics is Not ‘Keynesian Economics’

 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).

Alternative Visions - Inflation, Infrastructure ‘Smoke & Mirrors’, & Keynes’ Economics

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.)

Alternative Visions - Biden Capitulates on Infrastructure & Tax Hikes

 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).

Alternative Visions - Infrastructure Negotiations Follies

Dr. Rasmus dissects the moves of Dems and Republicans on the Infrastructure bill (aka American Jobs Act) now underway. Both sides are mostly just ‘moving the money around’ and using various ‘smoke & mirrors’ to show they’re making proposals and counterproposals: GOP negotiators (McConnell et. al.) initially proposed $568B, but $394B of that was money already authorized and passed in other legislation. Yesterday, they raised their proposal to $928B, but that was by diverting $350B also already passed in the February ‘American Rescue Plan’ (Covid relief bill). Thus, GOP proposing to spend money already spent! Biden proposed March 31 a $2.3T spending on infrastructure, but unilaterally dropped it to $1.7T (and quietly agreed to include $304B already authorized in transport funding to be included in $1.7T. Biden ‘signaled’ in meeting with GOP to agree to final $1T only. Both Dems & GOP breaking out $400B on separate corp subsidy bills for manufacturing, tech, R&D, chips, etc. soon to be passed. Smoke & mirror negotiations going on for public consumption.  Rasmus also comments on latest economic stats on jobs and durable goods consumer spending and on political democracy reforms collapsing with HR-1 election reform now DOA + collapse of Commission on Jan. 6 riots. Rasmus concludes fight for Democracy only beginning, but red state Republicans have the longer term advantage as their legislatures move now aggressively to restrict and suppress voting.

Alternative Visions - Bitcoin & Cryptos Financial Bubble Bust + Biden Infrastructure Plan Debates

 Dr. Rasmus focuses on the recent 40% collapse in Bitcoin crypto currency deflation. What were the forces driving up Bitcoin & cryptos prices in 2020 and how have they changed. Why Bitcoin prices are now collapsing, and will they continue. What is the nature of speculative financial asset investing and the rise of the new global finance capital elite in recent decades. Rasmus discusses the forces deflating Bitcoin demand: China’s new digital currency, US Federal Reserve plans to regulate, tax, and eventually issue its own digital currency, etc. What’s behind China’s announcing its own DC (including efforts to bypass the US dominated SWIFT international payments system and the $US as primary global trading currency)—and thus avoid US economic imperialism key levers of economic control. Why the US Treasury is now moving to regulate and tax cryptos. The show concludes with a briefer assessment of debates on the Biden Infrastructure bill, and why the negotiations now focus on providing $400B in subsidies to auto and semiconductor big corporations first as Biden moves toward bipartisan support for his proposed Infrastructure legislation. The risks to the rests of the bill targeting support for workers and communities.