DeepSummary
In this episode of the Dead Pundits Society, host Adam Proctor interviews Mike Beggs, a senior lecturer in political economy at the University of Sydney and editorial board member of Jacobin magazine. They discuss the dynamics of capitalist finance, socialist transformation, and the challenges faced by left-wing political movements in achieving full employment and combating inflation.
Beggs explains the role of the stock market and Wall Street in global capitalism, arguing that while stock market fluctuations can have psychological effects, they do not directly impact the real economy as much as perceived. They also delve into the concept of a 'Wall Street referendum,' where fear of alienating financial markets can hinder the implementation of socialist policies.
The conversation then turns to the lessons of the 1970s, when the labor movement benefited from relative full employment but struggled to translate its economic power into political power. Beggs suggests that maintaining full employment requires a politicization of the economy, which could ultimately prove unsustainable for capitalism.
Key Episodes Takeaways
- The stock market and Wall Street do not directly impact the real economy as much as perceived, but the fear of alienating financial markets can hinder the implementation of socialist policies.
- Achieving and sustaining full employment within a capitalist system requires a politicization of the economy, which may ultimately prove unsustainable for capitalism.
- The labor movement in the 1970s struggled to translate its economic gains from relative full employment into lasting political power.
- Implementing centralized wage controls and bargaining, which were seen as necessary for sustaining full employment, presents significant challenges, especially in countries like the United States without a history of such practices.
- Keynesian policies were not solely responsible for achieving full employment in the post-war period, contrary to common assumptions.
- Workers' economic power is crucial for driving socialist transformation, but the labor movement has been weakened in recent decades by policies designed to keep labor markets from tightening.
- The politicization of income distribution required for sustaining full employment is inherently unstable for capitalism and could lead to further conflict and transformation.
- There is no single, predetermined strategy for navigating capitalist finance and achieving socialist transformation; it requires a flexible, context-specific approach that anticipates and responds to potential pitfalls and setbacks.
Top Episodes Quotes
- “I mean, the thing is, the biggest thing for market participants is probably this sudden upsurge in volatility, because for a long time, volatility on the stock market for the last couple of years was very low, and suddenly it shot up.“ by Mike Beggs
- “I think that's a huge ask for a country like the US where you don't have any history of that kind of centralized bargaining. But I think that so many economists back in the fifties recognized that you needed to have incomes controls to make full employment work.“ by Mike Beggs
- “I think there's a question as to how much keynesian policy was responsible for full employment after the war. I think that can be really overstated.“ by Mike Beggs
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Episode Information
Dead Pundits Society
Dead Pundits Society
3/9/18