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Capitalism Hits the Fan A lecture by Richard Wolff (Unabridged Version) Transcript I take it as my task this evening to try to present a sense of what is going on in the American economy – and around the world – since the United States plays such an enormous role in the world economy; to give you a sense of how we got into this situation; and give you some help, I hope, in navigating where we go from here. And if that suggests to you that you yourself are going to have to play some sort of role, then I have gotten my thought across – since the people who are in charge are completely without any idea of what to do, which if you pay attention, you will notice.
3 THINGS THE ECONOMIC CRISIS IS NOT This is the most severe economic crisis of capitalism in my lifetime, which means, as I look around the room, in yours as well. And it has to be understood and approached in that framework if it’s going to be taken seriously and if people are going to have a reasonable shot at coming out on the other end of this process in something less than a devastated personal, social situation. So let me start by suggesting to you some things that this economic crisis is not. It’s not a financial crisis – not withstanding that that name is used all the time. To call it a financial crisis limits it in ways that make no sense. As you will see, this crisis comes out of the entire economic system we have here in the United States. It didn’t start with banking. It didn’t stay in the realm of banking, and it will not be limited at any time and in any significant way to the credit markets or to banking or insurance companies. The second thing it isn’t is temporary, or fleeting, or short. That’s a wishful thinking, a little bit like imagining the crisis is limited to finance is wishful thinking. Let me illustrate that with two historical parallels to keep in mind. First, we had another great crisis back in the 1930s. Let’s remember what that was like, since the current one is rightfully being compared to that one. That one blew, or exploded, in 1929. For the next 10 years, from 1929 to 1939, two presidents, Hoover and Roosevelt, tried a variety of monetary and fiscal policies – many looking exactly like what you see today in Washington. And they didn’t work. And for 10 years, we could not get out of that depression. And what finally lifted us MEDIA EDUCATION FOUNDATION | www.MEDIAED.org This transcript may be reproduced for educational, non-profit uses only.
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