Ask Prof Wolff: Western Capitalism’s Decline

A Patron of Economic Update asks: "Hello Professor Wolff, I’m not sure how familiar you are with Canadian economics but things are very bad here. The average home price in 1980 was $47k ($163k adjusted for inflation), in 2000 it was $119k ($190k adjusted for inflation). Between January 2020 and March 2022, the average home price soared from $504,350 to $795,952. The average home price in my town, with a population of 100,000, is $1 million now. My entire generation has been bought out of the housing market. The annual average earnings of full-time employees in Canada is a little more than $54,630. Average hourly wages in Canada have barely budged in 40 years. Now, the Bank of Canada increased interest rates to 8.1%. We’re told this is due to supply chain management issues, bottlenecks. Yet corporations are making record profits. Canada is experiencing neoliberalism on crack. What’s the solution? Do we need more unions? What can be done? Why are they increasing inflation now?"

This is Professor Richard Wolff's video response.

_________________________________________________________________________

“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”

_________________________________________________________________________
Follow Wolff ONLINE:

[DerekSpeareDSD]

ironic that in a system such as capitalism where "you have to have the newest and greatest thing" that itself never gets too old and too broken to be replaced. They tell you, "stop fixing that old car (or whatever) and get a new one!" but fixing this broken system over and over again is what is always done. Get rid of it. There is a better system! #GeneralStrikeNOW

[soggygrogbottom]

For the algorithm. PREACH, Prof Wolff!!

[marykaten]

I am glad that Prof. Wolff has stated very articulately that solving a run away inflation by causing a recession is not the answer we need to solve our economic problems.
I have only a Bachelor's Degree in Economics and I was shocked when the FED announced to control inflation it was increased the prime interest rate.

[Stewart]

Patiently reviewing the lecture and repeating the message until the student gets it is in my opinion what a good teacher does ! By all means carry on Prof Wolff ! You're one of the real, coherent voices in these polarized, misinformed times we're struggling to figure out !

[Marxist]

Thank you, Prof. Wolff, for spreading your knowledge & wisdom.

[comradeinternet]

What is to be done? Someone wrote a book about that, and more Canadians need to read it.

[jono]

Wolff's absolutely right! Major changes are needed and inevitable. The tyrants in power fear change & the loss of their prestige, so of course there's a fight but they are destined to lose. Fairly soon, transparent governments, UBI and robot technology will be everywhere. Get up stand up, don't give up the fight!

[stevendreith]

I could never understand how people vote against their own interests. As a naive person myself, I can still read the writing on the wall.

[robertseaborne]

Thanks Prof, for another valuable political lesson, the extent to which this proves to be factual will also determine the extent to which a declining American defined 'modern liberal unipolar world order' is being replaced by a rising China defined 'modern socialist multipolar world order'.

[emiebex]

Thank you Professor Wolff, I always appreciate when people point out the Fatal Flaws in Capitalism.

[muzzybeat]

All true, Richard, but you're not even addressing her core question. She asks, "What do we do?" How do we survive? How do we, as individuals, continue to stay alive and live indoors, etc.? Of course the system of capitalism must be replaced. But of course it will not be replaced in time to help your questioner to stay alive and survive in the immediate crisis. So what do we actually do? As opposed to what do we wish could happen that cannot happen in time to save us. Helpful answers will have to include some serious kinds of revolt, unionization, organizing, mutual aid, etc. Those kinds of things are - I believe - what she wants your specific advice on.

[DavidSanchez-vxbv]

The first step to fix something is to realize (and really accept) that it's broken. Sounds easy to understand, right? But many are still denying Capitalism is a broken system...😢

[treefrog]

Prof. Wolff, I think it would be timely for you to introduce all of us to what has been termed the "Thucydides Problem" in global socio-economic political dynamics. It is the veritable "Sword of Damocles" that hangs over all of civilization. Please.

[sitoudien]

The system is broken and can't be fixed. Whatever new system we adopt we'll have to suffer through even more pain during a transition period. Look at the former USSR adopt capitalism over night. A decade plus of inflation, hardship, crime, human trafficking, decadence.

[cheongwenpa]

Fight inflation with recession. You cannot put it more accurately and ironically 👍.

[derkaderkda]

Question from Canada? Our prices are so high. The hope of making it as millionaire or landlord is hopeless with this current concept of value. Doesn't matter if I buy shares when our wage labour income doesn't hold value to the price of commodities to sustain my working life, labour is just diminished. All I have of value to the state is my kid.

Recently the reformists are giving a double flat tax rate rebate to low-income workers and a luxury tax for for the bourgeois when they buy their yachts, jets and purses. How is it the corporations are making profits while payroll remains the same?

Finally the Central Bank of Canada is hawkish on the rates. This will bring down the prices of houses but this is rubbish as the workers will pay more and more to the profit of the big banks in Canada, Lenin was right about this one, the cartel and oligarchs.

[misspm]

Get rid of lobbyists, citizens United. Take away all investments of conflict of interest from all government employees

[ramonng]

Do your computation, it is astounding:

if $1 is paid every SECOND, the $30 trillion US debt will need 960, 000 YEARS to be repaid, not counting interest, and the principal is still

And the USA is only 245 years old...

Stop the military spending!.

[jageo]

Here, above the 49th *we too are swirling the bowl* .

[mohannair]

The beauty of the systems are the surplus formation is from the bottom who spare and lend itit to the large industrialists!!!