Michael Hudson

Michael Hudson, American economist and author of Super Imperialism: The Economic Strategy of American Empire (1972) discusses the rentier economy that accounts for the growing disparity in wealth due to finance capitalism. Giving a history of the polarisation of the US economy from the 1960s through the present, Hudson discusses how the high costs of education and housing have led to a growing problem of student debt, higher costs of living and increasing austerity. Noting how 80% of bank loans are made for real estate in the US, Hudson expounds upon how loans and exponentially growing debts outstrip profits from the economy, proving disastrous for both the government and the people who are paying increasing amounts on housing with little to no money left to spend on goods and services. Hudson contends that finance capitalism is a “self-terminating” oligarchical system leaving workers traumatised, afraid to strike or react to working conditions, while they are pushed towards serfdom as the US and Europe are heading towards a debt crisis on par with that of Argentina and Greece.