Outlines of a Critique of Political Economy by Frederick Engels

Political economy came into being as a natural result of the expansion of trade, and with its appearance elementary, unscientific huckstering was replaced by a developed system of licensed fraud, an entire science of enrichment.

This political economy or science of enrichment born of the merchants’ mutual envy and greed, bears on its brow the mark of the most detestable selfishness. People still lived in the naive belief that gold and silver were wealth, and therefore considered nothing more urgent than the prohibition everywhere of the export of the “precious” metals. The nations faced each other like misers, each clasping to himself with both arms his precious money-bag, eyeing his neighbours with envy and distrust. Every conceivable means was employed to lure from the nations with whom one had commerce as much ready cash as possible, and to retain snugly within the customs-boundary all which had happily been gathered in.

On Technology and Degrowth

Jason Hickel

Monthly Review | 2023, Volume 75, Number 3 (July-August 2023)

High-speed train at Taichung Station, China (January 28, 2007). By Cheng-en Cheng – Flickr, CC BY-SA 2.0, Link.

I want to address a problem that seems to arise repeatedly in public discussions about green growth and degrowth. Some prominent commentators seem to assume that the debate here is primarily about the question of technology, with green growth promoting technological solutions to the ecological crisis while degrowth promotes only economic and social solutions (and in the most egregious misrepresentations is cast as “anti-technology”). This narrative is inaccurate, and even a cursory review of the literature is enough to make this clear. In fact, degrowth scholarship embraces technological change and efficiency improvements, to the extent (crucially) that these are empirically feasible, ecologically coherent, and socially just. But it also recognizes that this alone will not be enough: economic and social transformations are also necessary, including a transition out of capitalism. The debate is therefore not primarily about technology, but about science, justice, and the structure of the economic system.

It is now well-established that green growth scenarios suffer from a difficult problem. They start with the assumption that the rich countries in the “core” of the world-system should continue to increase aggregate production and consumption (“growth”) for the rest of the century. But growth does not come out of thin air. It requires energy. Rich countries already appropriate extremely high levels of energy—many times more than the rest of the world and vastly in excess of what would be required to provision good lives for all.1

The Contours of the New World: Discussion by Michael Hudson with Kin Chi Lau, Global University, Hong Kong

Prof. Hudson peels off the fetid layers of mendacity and treachery defining the recent “debt crisis deal”—and much more

There’s a big dam on the Dnieper River that supplies all of the water to Crimea and they blow it up. Thousands of homes have been flooded. Naturally, the Ukrainians said the Russians did it. The reason that Crimea was assigned to Ukraine by Khrushchev in the 1960s was because the water and electricity area all came from the dam in the north of Crimea. All of that was blown up and flooded.

When you blow up a dam, imagine that was happening in China and how that would be blown up. That’s what happened. They blew it up. The dam on the Dnieper River that supplies water as well as electricity to Crimea was blown up. I think it wasn’t by a missile, it was launched by a naval mine that was shot, a kind of automatic bomb delivered electronically by a naval torpedo that blew it up. This has caused thousands of homes to have to be abandoned and knocked off the electricity grid.

The Dnieper is now much wider, so it will be harder for Ukraine to attack the Russians. It causes serious electricity and water problems for Crimea. Obviously, they’re trying to provoke Russia to do something violent, so when the NATO meeting occurs this weekend in Vilnius, they may have a full-fledged missile attack on Moscow and St. Petersburg and start World War III. That seems to be the intention.

COVID-19 And The Failure Of The Neoliberal Regulatory State

Lee Jones and Shahar Hameiri

Progress in Political Economy | February 09, 2023

We are delighted and very grateful to receive the 2022 AIPEN Richard Higgott Prize for our article “COVID-19 and the failure of the neoliberal regulatory state,” published in the journal, Review of International Political Economy. It is getting harder to remember just how extraordinary, and extraordinarily awful, the response to COVID-19 was in so many countries, and the sense of shock and disbelief that accompanied every step towards lockdowns and closed borders in the early months of 2020. This article documents our real-time effort, through the ‘fog of war’ of the pandemic’s first year and in the darkness of lockdown, to make sense of a reality that we were living through that seemed to make little sense: How come the world’s richest societies, governed by states rated by international technocrats and scientists as being among the best prepared for a pandemic, failed so abysmally to respond to a challenge they had notionally been anticipating for many years? In short, how did we end up in this mess?

The Impending World Recession

Prabhat Patnaik

IDEAs | January 16, 2023

The IMF managing director Kristalina Georgieva has now openly admitted that the year 2023 will witness the slowing down of the world economy to a point where as much as one-third of it will see an actual contraction in gross domestic product. This is because all the three major economic powers in the world, the US, the European Union, and China, will witness slowdowns, the last of these because of the renewed Covid upsurge. Of the three, Georgieva believes, the US will perform relatively better than the other two because of the resilience of its labour market; indeed the greater resilience of the US labour market provides some hope for the world economy as a whole.

There are two ironical elements in Georgieva’s remarks. The first is that the best prospects for the world economy today, even the IMF concedes if only implicitly, lie in workers’ incomes in the US not falling greatly. For an institution that has systematically advocated cuts in wages, whether in the form of remunerations or of social wages, as an essential part of its stabilisation-cum-structural adjustment policies, this is a surprising, though welcome, admission. Of course Georgieva, many would argue, is seeing US labour market resilience only as the result of US’s economic performance and not as its cause. But her considering it a “blessing” (though not an unmixed one for reasons we shall soon see) leaves one in no doubt that the demand-sustaining role of workers’ incomes is also being recognised by her.

The Euro Without German Industry

Michael Hudson | October 04, 2022

The reaction to the sabotage of three of the four Nord Stream 1 and 2 pipelines in four places on Monday, September 26, has focused on speculations about who did it and whether NATO will make a serious attempt to discover the answer. Yet instead of panic, there has been a great sigh of diplomatic relief, even calm. Disabling these pipelines ends the uncertainty and worries on the part of US/NATO diplomats that nearly reached a crisis proportion the previous week, when large demonstrations took place in Germany calling for the sanctions to end and to commission Nord Stream 2 to resolve the energy shortage. 

The German public was coming to understand what it will mean if their steel companies, fertilizer companies, glass companies and toilet-paper companies were shutting down. These companies were forecasting that they would have to go out of business entirely – or shift operations to the United States – if Germany did not withdraw from the trade and currency sanctions against Russia and permit Russian gas and oil imports to resume, and presumably to fall back from their astronomical eight to tenfold price increase.

Michael Hudson: A roadmap to escape the west’s stranglehold

Pepe Escobar

THE CRADLE | October 06, 2022

It is impossible to track the geoeconomic turbulence inherent to the “birth pangs” of the multipolar world without the insights of Professor Michael Hudson at the University of Missouri, and author of the already seminal The Destiny of Civilization.

In his latest essay, Professor Hudson digs deeper into Germany’s suicidal economic/financial policies; their effect on the already falling euro – and hints at some possibilities for fast integrating Eurasia and the Global South as a whole to try to break the Hegemon’s stranglehold.

That led to a series of email exchanges, especially about the future role of the yuan, where Hudson remarked:

“The Chinese whom I’ve talked to for years and years did not expect the dollar to weaken. They’re not crying about its rise, but they are concerned about flight capital from China as I think after the Party Congress [starting on October 16] there will be a crackdown on the Shanghai free-market advocacy. Pressure for the coming changes has been long building up. The spirit of reform to rein in ‘free markets’ was spreading among students over a decade ago, and they have been rising in the Party hierarchy.”

Dollar Decline to Make Americans Poorer, Economist Hudson Says

teleSUR | July 18, 2022

Image of U.S. dollar bills. | Photo: Twitter/ @business

The de-dollarization or decline of dollar hegemony will put the United States in a slow crash and make everyday Americans poorer. Other countries have to de-dollarize because of American foreign policy, which forces them to create an alternative, said Michael Hudson, professor of economics at the University of Missouri-Kansas City.

“Any country that supported land reform, any country that protected its economy and grew its own food, and any country that did anything the United States didn’t like, they have all the foreign exchange, and all the savings stolen,” Hudson said, adding that “so obviously, this has led countries no longer to keep their savings in the form of U.S. dollars.”

Dollar hegemony is the system where U.S. overseas military spending and other spending deficits result in U.S. dollar savings in foreign countries. Then, foreign central banks recycle their reserves in dollars in the form of purchasing U.S. treasuries. Dollar hegemony enabled Americans to have high living standards and to become rich even though the U.S. is de-industrialized.

A tightening world

Michael Roberts Blog | June 18, 2022

It’s been a big week for the major central banks. First, the European Central Bank (ECB) called an emergency meeting because government bond yields were rising sharply in the more indebted Eurozone economies like Italy and Spain.  That threatens to deliver a new sovereign debt crisis as happened after the Great Recession from 2010-2014, leading to the Greek nightmare.

Karl Marx: Historian of Social Times and Spaces

Red May TV | May 13, 2022

Drawing on current perspectives in philosophy of history and a rigorous reading of Karl Marx’s oeuvre, George Garcia-Quesada’s recent book, Karl Marx, Historian of Social Times and Spaces, demolishes the all-too-common portrayal of Marx as an evolutionary determinist. By unpacking Marx’s concepts of social space and social time, he highlights the ways it can explain dynamics of complex multilinear development of human societies and of capitalism in particular. Cordelia Belton and Edwad, hosts of the podcast REEL ABSTRACTION, lead an inquiry into the book and consult with Massimiliano Tomba, whose own book, Marx’s Temporalities shows that an adequate historiographical paradigm for capitalism must consider the plurality of temporal layers that come into conflict in modernity.

George Garcia Quesada, Massimiliano Tomba, Edwad, Cordelia Belton

SOURCE: https://www.youtube.com/watch?v=Rswhe2trn8A

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