Marxist Economist Richard Wolff on How the Debt Ceiling Benefits the Rich & Powerful

As House Speaker Kevin McCarthy and President Biden prepare for their first face-to-face meeting this week to discuss raising the debt ceiling, we speak with Marxist economist Richard Wolff about why the limit on the federal government’s borrowing lets politicians avoid making hard choices about taxing the wealthy. House Republicans are pushing for major spending cuts as part of any deal to raise the federal government’s $31.4 trillion borrowing limit. “It’s 99% theatrics,” says Wolff, professor emeritus at the University of Massachusetts Amherst and a visiting professor in the Graduate Program in International Affairs of The New School. Wolff also discusses the economic impact of the Ukraine war.
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[@Riggsnic_co]

Great video, a number of the most eminent market experts have been expressing their views on the severity of the impending economic downturn and the extent to which equities might plummet. This is because the economy is heading towards a recession and inflation is persistently above the Federal Reserve's 2% target. As I'm aiming to create a portfolio worth no less than $850,000 before I turn 60, I would appreciate any advice on potential investments.

[@bob.weaver72]

There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.

[@martingiavarini]

I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.

[@hermanramos7092]

@@martingiavarini Could you possibly recommend a trustworthy advisor you've consulted with?

[@martingiavarini]

renowned for her proficiency and expertise in the financial market, “Catherine Morrison Evans” my financial advisor, holds a broad understanding of portfolio diversification and is recognized as an authority in this domain.

[@hermanramos7092]

Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance

[@Raymondjohn2]

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?

[@martingiavarini]

Indeed, you are correct! Economic downturns offer numerous prospects for ordinary individuals to create wealth from the ground up. Nevertheless, seeking guidance from an investment planner might be necessary if you desire a more assertive return.

[@lipglosskitten2610]

In the world of fina-nce, rece-ssions are prime opportunities for wealth creation. When my port-folio suffered a significant loss in April of last year, I realized the need to enlist the expertise of a financial consultant. With her guidance, I have not only recovered from my losses but also generated a profit of 250k. The knowledge and skills I have acquired through this experience have been inval-uable in my journey towards finan-cial success.

[@kenanporubsky2122]

@@lipglosskitten2610 That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?

[@lipglosskitten2610]

My advisor is ‘’Catherine Morrison Evans’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

[@kenanporubsky2122]

@@lipglosskitten2610 Thank you for this Pointer. It was to find her handler, She seems very proficient and flexible. I booked a call session with her.

[@Dannyholt33]

The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.

[@mikeroper353]

Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!

[@jessy830]

To be honest, I've had doubts about banks for a very long time, but I didn't know how to begin working with an advisor. If it's okay, could you please tell me who your advisor is? I need some recommendations.

[@mikeroper353]

credits to Colleen Rose Mccaffery, one of the best portfolio manager;s out there. she;s well known, you should look her up.

[@jessy830]

excellent share, just confirmed her page online after inputting her full name on my browser, she seems valid. very much appreciate it.

[@bobbymainz1160]

Global financial markets have been significantly impacted by SVB's demise, prompting investors to sell off bank equities hastily and reevaluate their interest rate expectations. I am a $350,000 investor who is at a crossroads and wondering if it is wise to hold onto securities that are losing value. I want guidance on the best approaches to maximizing my returns in this negative market.

[@chris-pj7rk]

It is unlikely that the market will experience big gains anytime soon in light of the latest developments involving SVB, therefore it is prudent to set reasonable expectations and get ready for a potentially protracted recovery period. It is advised to postpone making big investment decisions until the economic climate in areas of concern has stabilized. It is best to take precautions and stay out of the current disturbance.

[@johnlennon232]

During market downturns, investors should remain committed to reputable companies by maintaining or growing their investments, as well-managed businesses eventually regain their former strength. To find the best entry and exit points for long-term gains from stock appreciation, get advice from a financial expert. Gains from working with an investing advisor can be substantial, as was demonstrated during the pandemic when a gain of $530k in just 8 months was realized.

[@alexyoung3126]

@@johnlennon232 Could you kindly leave your investment advisor's contact information here? I absolutely must have one.

[@johnlennon232]

@@alexyoung3126 HEATHER ANN CHRISTENSEN, a well-known person in her field, is my advisor. I advise further investigating her credentials.

[@alexyoung3126]

@@johnlennon232 I appreciate your advice. It was easy to locate your counsel; after pasting her full name into my browser, her website appeared right away. Before hiring her services, I did a lot of research on her. Her résumé suggests that she is knowledgeable.

[@robertmarks2379]

Last year we sent100billion dollars and arms, hardware and support to Ukraine. This year it is estimated 500billion dollars plus tanks, weapons and support. The economy is killing families while we look after illegal immigrant that come across a border and funding a civil war in Ukraine that no one can win. We ran away from Afghanistan but started funding a new Afghanistan in Ukraine

[@romanski5811]

But Ukraine has to win, otherwise Russia is not going to stop getting land back to achieve its former glory. Also, if Russia succeeds to win a conventional war under the threat of nuclear destruction, then this will bolster Russia and animate other countries to get nuclear weapons themselves. Also, this will influence China and Taiwan. And nobody is for more nuclear weapons. That's why Russia has to lose. To prevent nuclear proliferation, and in part, to protect Taiwan. The problem is not the funding of the Ukraine war but rather the funding of the ultra wealthy. That's where the money has to come from for poor people.

[@celestejones6315]

Exactly... Your analogy with Afghanistan and Ukraine is spot on. Not to mention, roughly $850 billion spent on our military last year, but so many politicians currently wanting to cut funding for Medicare, SNAP, childcare subsidies, and other essentials for our own citizens to just barely get by (if you can even call it that with most of us at this point) when we still haven't come anywhere remotely close to recovering from issues predating COVID that have only been exacerbated by a pandemic that was mishandled to a horrific degree... It's absolutely insane and downright evil...

[@romanski5811]

@@celestejones6315 But Ukraine has to win, otherwise Russia is not going to stop getting land back to achieve its former glory. Also, if Russia succeeds to win a conventional war under the threat of nuclear destruction, then this will bolster Russia and animate other countries to get nuclear weapons themselves. Also, this will influence China and Taiwan. And nobody is for more nuclear weapons. That's why Russia has to lose. To prevent nuclear proliferation, and in part, to protect Taiwan. The problem is not the funding of the Ukraine war but rather the funding of the ultra wealthy. That's where the money has to come from for poor people.

[@celestesenters1052]

Putin started killing and raping babies sooooo

[@robertmarks2379]

@@celestesenters1052 and east Ukrainians say the same about west Ukrainians and Zelenskyy. We only hear what Zelenskyy wants you to hear because no outside news crews are allowed in Ukraine and they have full control of all media

[@primajump]

All through the first part of the interview I was wondering where the government was borrowing from and when I got the answer at some point, it hit me like a thunderbolt. What a clever scheme that keeps the rich richer and the poor poorer! Brilliant, I must add.

[@72marshflower15]

Capitalism being an accretive construct, money will betray all to its greater density.. In capitalism, no lives matter.

[@nicholasrapose196]

Criminal, I might add myself.

[@jondoe7936]

Your ala loves evil like this may POSBUH still with steam coming off of it

[@robertrichard6107]

Nothing Federal about the Federal Reserve.

[@jgarlito82]

Oh yea it’s a big scam for the rich . I’ve understood this since 1999 When them speaker Dennis Hastert came To my HS to explain the lie of Debt in 1999. He was peddling the same stuff back then before they found out he was a real pedo.

[@naomirodriguez6417]

Incredible interview, I wish more people realized how important this is.

[@CHIEF_420]

Necesitas compartir buena información con otra señoras 📰

[@umu-i-d2785]

In under 3 minutes Mr. Wolff explained what the whole country needs to understand about the current financial situation. Brilliant!

[@jerometekien2927]

Tax the Billionares!!!!😡😡😡

[@CarRamrod234]

Let's call them what they really are (and dislike being called): Oligarchs

[@janelliot5643]

@CarRamrod234 the parasite class, as Michael Hudson calls them

[@jettiy5]

The eat the rich concept never works in the long run. Why because the rich always comes back to eat its self in the end.

[@thunderpooch]

They're hoarders.

[@thunderpooch]

@@jettiy5 that doesn't make sense. The concept of eating the rich is simple: you're cleaning up the gene pool by removing the most psychopathic and manipulative people in the world.

[@mikeifyouplease]

Thank you so much Mr. Wolf! I never understood why we as a nation kept borrowing more money, only to go continuously deeper into debt. However; with your simple and concise explanation, now I do...for the first time in my over 70 years as a citizen of this country.

[@Leo-zi8oc]

Check out Yanis Varoufakis if you are interested in politics and economics. Both Yanis and Wolf are smart cookies and Yanis gives you a perspective on Europe as well. Plus they are friends and like-minded economists

[@francismarion6400]

Notice how the bigger government gets, the faster debt increases.

[@hamidhamidi3134]

Long story short, Money wins ALWAYS.

[@20luzer52]

For some reason, I trust economist that speak with ordinary everyday language.

[@sayfo666]

You need Stephanie Kelton

[@henrygustav7948]

Richard Wolff is stuck on the neoliberal framework and can't change direction because he has been telling this bullshit for a long time. Telling the truth would mean he has been wrong about Fed govt finances for most of his life. The Federal govt does not tax or borrow dollars that they then spend. They spend firstly, then and only then can ANYONE pay taxes or buy US treasuries. US dollars come FROM the Federal govt, not taxpayers. There is nothing wrong with the National debt per say. All it is, is the total amount of dollars the US Govt has spent since inception that it has yet to tax back, this money sits in the economy as our savings, earning interest. To pay it back means to move some $ from savings accounts at the Federal reserve to checking accounts. The Fed govt borrows US dollars from no one. Why would you when you are the issuer/creator of dollars?

[@sayfo666]

And how’s this? The US gov doesn’t “have” or “not have” money. Using phrases like “How do they plan on paying for this?” or “What is the pay for” is an immediate misinterpretation of the role of the 🇺🇸 govt as like a household in the private sector. The govt spends by fiat i.e. political will and in that way adds net dollars to the money supply. And when it taxes (as well as issuing fees and fines) it drains money from the money supply. Knowledge of central banking and monetary operations helps understand the paradigm better. As far as the treasury and general account that is just spreadsheets and bookkeeping; the 🇺🇸 doesn’t store away taxes for recycling. There is no possible monetary operation for recycling taxes, because the way the gov spends concerns “high powered money”, which is what is injected into the money supply after a congressional appropriation. High powered money is a result of the Treasury making deposits - per law via the congress - into a bank account AS WELL AS the Fed ensuring the deposits clear by adding the corresponding reserves into a bank’s reserve account at the Fed. High powered money is the combination of Treasury deposits (into a firm’s bank account) and Fed deposits(into the bank’s reserve account). When the US gov spends it issues the dollars from a law (legal fiction) which are added to the money supply as cash + reserves where again cash is dollars in a current account and reserves are settlement funds in a bank’s reserve account(also considered as cash). Taxes reverse the process. It’s operationally impossible to recycle taxes. When taxes are paid, that person’s payment meets the tax obligation leaving only bookkeeping for the Treasury, Fed, SS, etc. A person’s bank debits the account for the amount paid to IRS. Therefore a tax is paid and that means the dollars in the person’s current account are deleted by the bank. Then the bank’s reserves take over & they are used to settle the rest of the transaction ending up back at central bank where they are also deleted as having completed the initial tax obligation. There is no monetary operation available or necessary to conjure up those settled reserves for re-spending as the govt will just issue new dollars and reserves each time it spends henceforth.

[@janelliot5643]

What an incredibly clever shell game! We are all being conned

[@henrygustav7948]

being conned by Professor Wolf who knows nothing of Federal finances.

[@UnCaje]

@@henrygustav7948 Help us to understand

[@janelliot5643]

@@henrygustav7948 oh please!

[@r.gronkowski856]

Speaking from "URANUS" Gustav?

[@henrygustav7948]

@@janelliot5643 looks like my comments are getting deleted.

[@donnacribb5712]

Yellen should resign now

[@michaelcap9550]

And take Sleepy Joe.

[@wongpohchan9485]

Yellen has nothing to do with the state of your country's finances. It's the non-ending wars your country is always waging. Your government has no problems spending hundreds of billions and even trillions on wars and getting loans from suckers all over the world.

[@thomasbland1026]

Tell it like it is; bravo! Tax the greedy rich double!

[@craigschiele4976]

They already pay most of the taxes.

[@RichardTabar]

Excellent summary Dr

[@sayfo666]

Technically federal taxes NEVER provide revenue for govt spending. State/municipal taxes = revenue but fed taxes NEVER fund spending. 🇺🇸= monetarily sovereign & doesn’t need income to spend b/c it issues the dollar. All spending = new $$ as a result of political will in congress.

[@tonywilliams8878]

Thank you Mr Wolf for speaking out and sharing

[@sayfo666]

It’s not “our tax dollars” that are paying for ANYTHING. It is operationally impossible to recycle federal taxes for spending. ALL federal taxes redeemed by the IRS are deleted by the Fed leaving only spreadsheet bookkeeping for the Treasury, social security, Medicare, etc. All federal spending is NEW DOLLARS appropriated via political will in congress. Where the political will goes, the money ALWAYS follows.

[@dw7312]

The average people are taxed highly already!

[@beng4647]

That is why we need to tax the rich more. Unless you want to pay more?

[@sayfo666]

@@beng4647 • Not for revenue • Only for reducing inequality. Technically federal taxes NEVER provide revenue for govt spending. State/municipal taxes = revenue but fed taxes NEVER fund spending. 🇺🇸= monetarily sovereign & doesn’t need income to spend b/c it issues the dollar. All spending = new $$ as a result of political will in congress.

[@beng4647]

@@sayfo666 ok 🤡

[@sayfo666]

@@beng4647 doesn’t understand govt finance or currency so can’t make an argument. What federal taxes are for: 👉🏽 Govt taxes to manage down & prevent dynasties. 👉🏽 To de-incentivise & punish bad behaviour eg pollution, sweat shops 👉🏽 For accounting to assess costs & allocate benefit eg Social Security 👉🏽 To relieve inflation pressures & create policy space in the economy 👉🏽 To drive the dollar with the successful enforcement of federal taxes, fees, & fines whereby all taxes must be paid in USD ensuring domestic demand for the national unit of account.

[@shawnchurch316]

The average people effectively pay zero or next to zero income taxes while the top 20 percent pays 86 percent of income taxes.

[@Tom-mu7zy]

It's not a debt ceiling, it is a debt balloon. Like a real balloon, every time you touch it from below, it just floats a little higher.

[@cheri238]

Incredibly the best, Amy Goodman and team Democracy Now and Professor Wolff !!!

[@francismarion6400]

The obvious answer is to shrink government by say, 95% so the greedy corporations have nothing to feed them.

[@cheri238]

@@francismarion6400 💯 correct

[@NaderNabilart]

Dr. Wolf is a national treasure. Thank you DN for the opportunity to hear the professor's point of view.

[@jvcyt298]

Workers of the world unite, you have nothing to lose but your chains.

[@danielcuthbert961]

Let's organize the fifth international

[@AC-re9ee]

That's what russia thought as well 🙄🙄

[@yourenotyour5169]

Nah, I'm not being run over by corporate greed because I chose a different line of work other than a barista or fast food employee.

[@msimon6808]

And your money. And your life.

[@Rustea314]

The 1% is united and organized; the 99% divided and disorganized.

[@gregoryschmidt88]

Free Julian Assange !!

[@victorteo4783]

Americans should listen to Prof. Richard Wolff, spread it around.

[@ozarkexplorations7221]

Thank you Mr. Wolf I did not know exactly how this all worked and now that I do it pisses me off to no end. What can we do about all this when half of the country is courting fascism. 100 corporations paid no taxes last year, hell I think we paid some of them money back that they never had to pay in, how the hell does that work? I can't understand how a few thousand wealthy people can control 350 million . All we have to do is make them pay their fair share to Live in our great country if you don't want to contribute to us being a great country than get out!!!

[@johnjames4567]

wo ...they gave you jobs...products..... a viable economy........and Congress is the one that let them slide by making laws that exempt taxes......unless you are hollering at Congress you hollering at the wrong people....

[@sayfo666]

Technically it is operationally impossible for federal taxes to be recycled. Federal taxes NEVER provide revenue nor funding for govt spending. State and municipal taxes are revenue but federal taxes NEVER fund any spending. The US is monetarily sovereign and doesn’t need an income to spend because it issues the currency. All spending is new dollars as a result of political will in congress(known as “high powered money” because it is bank deposits + bank reserves). Federal taxes do the reverse resulting in deleted funds from the bank account and deleted reserves from the bank’s reserve account. Therefore re-spending is operationally non-existent. Once the reserves are deleted from the reserve system all that is left is bookkeeping for the IRS, Fed, treasury, and Social security etc. for allocation purposes. So, what needs to happen is a shift in political will to what benefits Main St/the 99% Even Social security is just a spreadsheet for accounting and allocation purposes, not an account full of contributions. Shocking maybe, but since leaving the gold standard domestically in ‘33 via FDR, federal taxes have definitely not been revenue because there was no longer a gold standard to defend.

[@henrygustav7948]

Richard Wolff is stuck on the neoliberal framework and can't change direction because he has been telling this bullshit for a long time. Telling the truth would mean he has been wrong about Fed govt finances for most of his life. The Federal govt does not tax or borrow dollars that they then spend. They spend firstly, then and only then can ANYONE pay taxes or buy US treasuries. US dollars come FROM the Federal govt, not taxpayers. There is nothing wrong with the National debt per say. All it is, is the total amount of dollars the US Govt has spent since inception that it has yet to tax back, this money sits in the economy as our savings, earning interest. To pay it back means to move some $ from savings accounts at the Federal reserve to checking accounts.

[@sayfo666]

@@Trollkungen1 • Just fine, why? The Fed remits all of its profits less expenses to the Treasury.

[@sayfo666]

@@Trollkungen1 • What about Scandinavia? Some of the EU countries? Venezuela is a mixed economy btw.

[@dreamervanroom]

Your clear thinking has given me ideas that I never had before. Thank you so much.

[@williamsimpson3155]

Wolf is still candy-coating it... Robert Reich and TYT explain the debt ceiling grift in much better detail...

[@sayfo666]

@@williamsimpson3155 • It isn’t anything monumental. No other monetarily sovereign govt has a debt ceiling. All the debt ceiling is is a political constraint on 🇺🇸 govt meeting it’s obligations in its own currency - the dollar. Done and dusted.

[@72marshflower15]

@dreamervanroom ~ I used to think that way, but Mr. Wolfe can hardly be called "Marxist" when Marx defined capitalism as we understand it today.. I know that the name comes from the rationalizing of Karl Marx, but there were tribes in South America that knew what "Co"mm"Uni"sm was before the US founders did (We the People), and then Marx, so we're dealing with a timeless empirical science of no one's invention.. Keep in mind that great minds don't think alike.. 🤗

[@celestejones6315]

@@williamsimpson3155 I really like Robert Reich too, but it's funny you say that because I see Reich as candy coating a lot of stuff compared to Wolff's Economic Update episodes and Democracy at Work in general, lol. I love and listen to them both relentlessly, don't get me wrong. But I tend to see Wolff as more cut-throat against capitalism (in his non-interview content at least, like Economic Update and AskProfWolff that's targeting his followers more than just the general public), while Reich's content seems more "explainer"-esque and like it's more geared toward people just starting to get their feet wet in challenging pro-capitalist ideologies, or possibly just trying to open the general public's eyes enough to do so. But I could be totally wrong in that, and I'm definitely not saying there's anything wrong with that, but you've got me wondering if maybe I'm missing a portion of his work that goes beyond that. And if so, what parts of his work are more radical and assertive that you could recommend? (I hope this isn't coming off as antagonistic, lol. I'm genuinely curious to look into anything you can point me to that I haven't come across before - like I said, I admire them both immensely.)

[@vivalaleta]

Stop raising the debt ceiling and take the funding out of our bloated military.

[@sayfo666]

🇺🇸 is monetarily sovereign & in no way suffering from affordability issues. 🇺🇸 can ALWAYS afford ANYTHING priced in U💲D. Our problem is strictly a deficiency in political will. Where the political will goes the money ALWAYS follows.

[@sayfo666]

The only constraint or action that can cause the USA to go into default is political. The debt ceiling itself is a political constraint and in no way a necessity. The US govt can always afford to pay its obligations denominated in dollars. And the US has ZERO foreign debt as it NEVER borrrows in a foreign currency. The selling of treasury bonds is NOT a borrowing operation. The US govt issues the currency by fiat and has the sole legal monopoly authority to issue dollars when it spends so there is no where else $’s can come from and therefore no need to borrow $USD.
The govt sells bonds as a tool of monetary policy so the Fed can hit its overnight rate target. And treasuries are essentially savings accounts at the Fed in the form of interest bearing bonds.

[@NoThatRyan]

It was great to see Professor Wolff on the show.

[@liztorres8167]

Professor Wolff simplifies the waste & corruption of our government. He’s awesome

[@sayfo666]

Sorta. Prof Stephanie Kelton much much better.

[@paulwolinsky1538]

@@sayfo666 How is Kelton so much better?

[@sayfo666]

@@paulwolinsky1538 • She doesn’t peddle Thatcher-Neoliberal myths that federal taxes fund spending. She understands that Treasury bond sales are absolutely not borrowing operations. When the govt spends, reserves build up in the banking system - which if left to accumulate result in a 0% interest rate. So bond sales mop up the excess reserves allowing for the Fed to hit its overnight rate target. She understands Technically all the interest & principle of matured bonds is met with new bond sales i.e. refinancing. Bond sales don’t devalue the $. But even if congress were to pass a law so that the budget was responsible for maturing bonds it wouldn’t be a threat to 🇺🇸 govt finance because all the bonds are denominated in USD and the government has the sole legal monopoly authority to issue dollars when it spends rendering the notion the 🇺🇸 govt can go broke or become insolvent bunk.

[@sayfo666]

Prof Kelton understands Technically it is operationally impossible for federal taxes to be recycled. Federal taxes NEVER provide revenue nor funding for govt spending. State and municipal taxes are revenue but federal taxes NEVER fund any spending. The US is monetarily sovereign and doesn’t need an income to spend because it issues the currency. All spending is new dollars as a result of political will in congress(known as “high powered money” because it is bank deposits + bank reserves). Federal taxes do the reverse resulting in deleted funds from the bank account and deleted reserves from the bank’s reserve account. Therefore re-spending is operationally non-existent. Once the reserves are deleted from the reserve system all that is left is bookkeeping for the IRS, Fed, treasury, and Social security etc. for allocation purposes. So, what needs to happen is a shift in political will to what benefits Main St/the 99% Even Social security is just a spreadsheet for accounting and allocation purposes, not an account full of contributions. Shocking maybe, but since leaving the gold standard domestically in ‘33 via FDR, federal taxes have definitely not been revenue because there was no longer a gold standard to defend.

[@sayfo666]

Kelton teaches What federal taxes are for: 👉🏽 Govt taxes to manage down & prevent dynasties. 👉🏽 To de-incentivise & punish bad behaviour eg pollution, sweat shops 👉🏽 For accounting to assess costs & allocate benefit eg Social Security 👉🏽 To relieve inflation pressures & create policy space in the economy 👉🏽 To drive the dollar with the successful enforcement of federal taxes, fees, & fines whereby all taxes must be paid in USD ensuring domestic demand for the national unit of account.

[@knowledgeofselfdetermination]

So, in other words, the corporations own the country.

[@nil981]

Corporations shouldn't exist.

[@horustrismegistus1017]

Yea it's called fascism. You braindead fools voted in with demanding, screaming, and fire. "Mostly peaceful" of course. Only a billion dollars worth of damage and 26 murders and ww3 to get what you thought you were fighting, but hey, stay convinced this wasn't you.

[@knowledgeofselfdetermination]

@@nil981 they most certainly should not be granted/allowed to possess so much power and control.

[@craigschiele4976]

That might be the natural order of things. At least it would be more efficient than letting the politicians run it.

[@craigschiele4976]

@@nil981Then who is going to produce everything or provide the services we need or want? The government?

[@bianca-sg8zq]

Excellent commentary from Professor Wolff. Thank you.

[@sayfo666]

Technically federal taxes NEVER provide revenue for govt spending. State/municipal taxes = revenue but fed taxes NEVER fund spending. 🇺🇸= monetarily sovereign & doesn’t need income to spend b/c it issues the dollar. All spending = new $$ as a result of political will in congress.

[@sayfo666]

All the “debt” is are savings accounts at the Fed in the form of interest bearing treasuries. Bond sales are NOT borrowing operations; they are a tool of monetary policy for the Fed to hit its overnight rate target. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@vivalaleta]

Keep having this brilliant professor back on.

[@sayfo666]

No. Prof Stephanie Kelton 100x better

[@nacarreira777]

He's on NPR, too.

[@sayfo666]

@@nacarreira777 • Because he peddles neoliberal myths

[@vivalaleta]

@@sayfo666 Bullshit. And it's worker ownership of their jobs that will change the system. Not fucking MMT.

[@paulwolinsky1538]

@@sayfo666 Neoliberal myths are exactly what he argues against. What does Stephanie Kelton have to say about the debt ceiling debacle?

[@floro7687]

Soon have to borrow to pay interest!

[@sayfo666]

FALSE Treasury bond sales are absolutely not borrowing operations. When the govt spends, reserves build up in the banking system - which if left to accumulate result in a 0% interest rate. So bond sales mop up the excess reserves allowing for the Fed to hit its overnight rate target. Technically all the interest & principle of matured bonds is met with new bond sales i.e. refinancing. Bond sales don’t devalue the $. But even if congress were to pass a law so that the budget was responsible for maturing bonds it wouldn’t be a threat to 🇺🇸 govt finance because all the bonds are denominated in USD and the government has the sole legal monopoly authority to issue dollars when it spends rendering the notion the 🇺🇸 govt can go broke or become insolvent bunk.

[@Rustea314]

We can cut taxes and watch all the additional revenue flow in again, again, and again. R. Regan showed us the way

[@sayfo666]

@@Rustea314 • Technically federal taxes NEVER provide revenue for govt spending. State/municipal taxes = revenue but fed taxes NEVER fund spending. 🇺🇸= monetarily sovereign & doesn’t need income to spend b/c it issues the dollar. All spending = new $$ as a result of political will in congress.

[@Rustea314]

@@sayfo666 "Taxes never provide revenue", If true how does a government bond have value? Who would loan you money if you had no revenue and were unable to repay? The dollar is fiat if that is where you are going and it will have value until it does not.

[@gloriouse4458]

WE LUV THIS GUY 😊EASY TO UNDERSTAND N DOESN’T SPEAK IN CIRCLES LIKE OTHERS 😲😬😳

[@sayfo666]

He’s only got it 1/2 right. All the “debt” is are savings accounts at the Fed in the form of interest bearing treasuries. Bond sales are NOT borrowing operations; they are a tool of monetary policy for the Fed to hit its overnight rate target. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@henrygustav7948]

He's pushing a lie, I have no tolerance for lies. The Fed govt spends US dollars first before it can collect anything back in taxes, before anyone has dollars to buy US treasury bonds. Just like a Supermarket first has to get those coupons out there before anyone can redeem them. Movie theatres don't collect tickets and then sell them back out. They have to sell the tickets before anyone can come into the theatre and redeem those tickets for a seat.

[@texajp1946]

Billions to Ukraine while Americans don’t have healthcare, millions homeless and infrastructure crumbles

[@sayfo666]

Where the political will goes the money ALWAYS follows.

[@shannonkelly8665]

I hear that. And yet the atrocities Russia is inflicting on a country that wasn't attacking them out of pure greed to take what isn't Russia's to take can't go unanswered and allowed to continue either....The tax structure that allows the rich and the corporations to pay less than the average worker/citizen is the problem with the US's income, not that we are sending resources to support a small country in a completely unjust, unwarranted and unwanted war

[@johnjames4567]

Ukraine can't buy US products with Ukrainian currency as it is NOT accepted here....so the US either has to GIVE them dollars or buy Ukrainian products with US dollars so that they then have US dollars to buy US products with US dollars...there are no Ukrainian products being produced right now..... we do the exact same thing with EVERY country in the world

[@dainelgalera4917]

@@shannonkelly8665 I realised the western media does tell the truth. What I also realised is the way it is delivered. What amazes me the most is the media has always reported that these regions of Eastern Ukraine has been under shelling for months long before the Russians arrived. What is even more amazing that story is followed by Russia arriving. Who has been shelling these regions months/years before Russia arrived?. They never say who! What also amazed me is that somehow Russia is defending these regions against the Ukrainian Army. Now when did Kiev begin to recieve shelling? A little history in Eastern Ukraine they called for Autonomy when they were gifted to Ukraine as they themselves tried to have and protect they own sovereignty. This was blocked by West Ukraine. That was from day 1 of Ukraine Independence. Fast forward to 2014. Coup! 'Try Ukraine on Fire' truthful documentary. Let's get a little Pre invasión. In Eastern Ukraine bombed schools and museums and civilian infrastructure was being rebuilt by civilians in Eastern Ukraine which received Aid from Russia. Citizens in Eastern Ukraine were denied their pensions by the Ukrainian government. An army of Russian ethnic cleansing was allowed to rain terror on these people. If you live in Eastern Ukraine would you continually bomb your own homes and schools for years. Someone else would. Who? Why do we talk about sovereignity yet we don't look at the people of Eastern Ukraine who has from Day 0 because they applied the day before Ukraine made it their own. These are the people that has been fighting for sovereignity. Which one has actually asked them about their sovereignity in all of this. Why isn't that a discussion by all of us. Do we truly want peace or rather we want piece?

[@MrBenjizo]

@@shannonkelly8665 out of greed? You have absolutely no clue what has been happening in that part of the world for the past 9 years. Of course you will just echo the same neocon lies that the use to get public money into the hands of the war industry. Ukraine is not an American problem. America has no moral right to stand up for someone's human rights in another country when they can't stand up for their own citizens.

[@GusBrunson]

I love the title "Marxist Economist", why they don't label "Orthodox Capitalist Economist" when other economists speak?

[@richardramfire3971]

Wow. Amazing interview.

[@rhorizon]

Economists Michael Hudson and Radhika Desai now have a show on the Geopolitical Economy Report channel that's a must follow.

[@sayfo666]

As good as Prof Stephanie Kelton’s Substack??

[@johnjames4567]

@@sayfo666 nope.....they still push the big lie...

[@lefttoitall2982]

@@sayfo666 I think MMT is very important to understand to help any country with its own sovereign to save itself. In the US we use Modern Monetary Theory for endless war but not to help its own people. I think once people get the concept they will unify the demand for a better government. Here is where I split a bit... We need a global socialist revolution to change the world. (Humanity is in bad shape.) But MMT can provide a tool to help people see past the deception of the US ever going broke! Hudson is amazing though and I only disagree with Desai that MMT isn't useful.

[@Apelles42069]

@@lefttoitall2982 Global revolution is a pipedream.

[@lefttoitall2982]

@@Apelles42069 It is socialism or the death of the species. That is the only way forward.

[@thetruthoutside8423]

Yes, strikes, and denying them profits. This is the key.

[@bilduquette9371]

End the war and the money going outside of this country

[@sayfo666]

All the “debt” is are savings accounts at the Fed in the form of interest bearing treasuries. Bond sales are NOT borrowing operations; they are a tool of monetary policy for the Fed to hit its overnight rate target. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@gentlemankennyedwards2533]

He is awesome. Clear, interesting, a real "teacher" of what he reports on. I love him.

[@tenorly]

If they're like Paul Singer, they're now looking at ways to cash in: ·Wait until the default ·wait a little more for some panicky funds to sell their bonds ·use your Caymans laundromat to buy them on the black market ·sue the Gov't for 10 times+ what you paid - then get (or bribe) some GOP judge to give you what you want. Worked for him before (he now has the Argentina precedent) - and the pickings would be *much* bigger this time.

[@izzywizzy685]

Are you really claiming that it’s the gop and only the the gop who has judges that help them? Dude the dems have huge corps backing them like crazy, they have most of the main press, most of hollywood, and more not because they want to pay more taxes so the support the side that will do just that. I bet you actually believe that they really hired 87K irs agents to go after the 1% who have experienced, expensive accountants that would deal with an audit, they aren’t worried, they have tons of resources at their disposal. It’s the dang tax code that would need to be redone not increase the amount of debt we can take on. It seems they are compounding interest too which has gone up as well.

[@henrygustav7948]

US Fed govt can not be forced to default. They can voluntarily default but can't be forced to.

[@deloresmonteiro2342]

Not my families debt. My family has paid it's share. Talk to the rich. Let them cough up all that money they have refused to pay.

[@akbarfarzin9857]

GOOD TO SEE MR! WolFF EVERY TIMES!!!!🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞🌞

[@katferguson]

Yes, I keep hearing how lay-offs, furloughs & unemployment applications are a good thing. Also if people start defaulting on their credit cards is a ‘marker’ businesses look for as well. Beyond sad.

[@roseroland1998]

Yes, we live in a difficult economy, yet passive income is an undervalued aspect. I have a varied portfolio that I have funded with my 401k. There will be no frenzy purchasing or selling. HODL till the bull run

[@Curbalnk]

This trading attitude intrigues me.I am a dividend investor, but the growth is slow and constant. I'm 39 years old, have a $300,000 portfolio, and hope to retire at 60. By then, I hope to establish a million-dollar portfolio.

[@glenbert1396]

@Lloyd Bernard Indeed, their servces are quite underrated, I have been trading with my advisor for 2 years now and I have seen a profit surge of at least $230,000 from a capital of $70,000.. Quite stress free after paying brokerage fees of course lol

[@louisairvin3052]

@@glenbert1396 You are really lucky making such profits, How do I get in touch with your financial consultant?

[@glenbert1396]

@@louisairvin3052 Personally I retained the services of ''JILL MARIE CAROLL''. We met at a conference in Colorado. Amazing personality as well. Try to schedule an appointment with her if you

[@louisairvin3052]

@@glenbert1396 good golly! super impressed with her qualifications, her site appeared top at once I searched her full name on my browser, very much appreciated..

[@ChitWhitly]

I was under the impression taxes don't fund federal level spending

[@MrDDiRusso]

The U.S. will never pay off its debt.

[@sayfo666]

The “debt” is the net money supply. “Paying it off” would mean a permanent great depression. All the “debt” is are savings accounts at the Fed in the form of interest bearing treasuries. Bond sales are NOT borrowing operations; they are a tool of monetary policy for the Fed to hit its overnight rate target. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@noellebazzi5618]

We have TO STOP Spending giving our TAXES to Ukraine to OTAN to ISRAEL and take care of US and TAKe CARE of Our Poor to create JOBS free insurance and Education

[@sayfo666]

Technically by it is operationally impossible for federal taxes to be recycled. Federal taxes NEVER provide revenue nor funding for govt spending. State and municipal taxes are revenue but federal taxes NEVER fund any spending. The US is monetarily sovereign and doesn’t need an income to spend because it issues the currency. All spending is new dollars as a result of political will in congress(known as “high powered money” because it is bank deposits + bank reserves). Federal taxes do the reverse resulting in deleted funds from the bank account and deleted reserves from the bank’s reserve account. Therefore re-spending is operationally non-existent. Once the reserves are deleted from the reserve system all that is left is bookkeeping for the IRS, Fed, treasury, and Social security etc. for allocation purposes. So, what needs to happen is a shift in political will to what benefits Main St/the 99% Even Social security is just a spreadsheet for accounting and allocation purposes, not an account full of contributions. Shocking maybe, but since leaving the gold standard domestically in ‘33 via FDR, federal taxes have definitely not been revenue because there was no longer a gold standard to defend.

[@robertasirgutz8800]

Wolff and Hedges are the clearest voices, regarding world events. Go, Doc!

[@raceoftheday7785]

Great interview

[@daviddestin1990]

Get 'em Wolff. I don't think I have heard a single word from that guy that I disagreed with. The greed of these ghouls knows no bounds, social security and medicare are about to be eliminated, finally. They will not stop until the USA looks like Indonesia..

[@sayfo666]

FALSE. Please stop with the Libertarian myths and legends. Social Security can NEVER go broke as it is funded by the currency issuer that appropriates NEW $$ every time it spends. FICA is about legal means to pay andallocation, not funding. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@vivalaleta]

Right.

[@msimon6808]

Doubtful.

[@ambrasargentini2359]

Thank you prof. Wolf, very clear explanation! Instead of pursuing a fair taxation policy for all many gov'ts prefer increasing public debt to favor corporations and the rich!

[@alexwright9971]

I love Richard Wolfe. He tells it like it is and explains it like nobody else. Let’s have him run as an independent for president.

[@thebased-capitalist9552]

Death to Socialism

[@HairyBottom]

I take it you don’t know the horrors of Marxism. It’s ok, most Democratic are uneducated.

[@linearphaze5143]

He is an open communist. Communism doesn't work. It never has. He isn't that smart advocating for a failed system

[@MrDXRamirez]

I gave you a thumbs down not because I do not like Richard Wolff. Because it is extremely nieve to assume that a man like Wolff could even function as a president much less not be removed from office by means of a coup or by force. For a man like Wolff to not end up like Allende in Chile in 1973 or like Pedro Castillo Terrones president of Peru removed from office in 2022, you and the rest of the working class of 133 million people would have to be a united social force big enough to literally remove those forces from power entirely and commence a dismantling of the State that represses all Americans. Americans are not there yet precisely owing to the intellectual ignorance of the American working class. They have not come together as a class to act in their own class interest to be able to shut down the entire economy the way the French workers today have shut down France, ditto for the British working class. US government is captured, a hostage, of the dominant ruling classes in society. Revolutions are change in the mode of production is a concept the American workers will come to understand the hard way and naiveté, despair, defeatism, mass confusion, in addition to the other social divisions capitalism relishes for its survival are in the way of workers coming together.

[@sayfo666]

No thanks. He is clueless on govt finance.

[@bigccapitalist7269]

Not necessarily. If cutting taxes increases economic growth then tax revenue may increase in following years. In this case the debt will either increase or decrease depending on whether or not spending increases, stays the same, or decreases. An objective analysis of this situation needs to be done and this is difficult because of the built in bias of both points of view. This is what separates the two political parties and makes it difficult to come up with solutions.

[@feynmanschwingere_mc2270]

This can be measured mathematically. Guess what? You're wrong. You're advocating for trickle down economics. It doesn't work. They've studied this. You're wrong.

[@coachduke9323]

@@feynmanschwingere_mc2270 Lol, he’s not advocating any one policy or opinion. Just a non biased analysis. You can’t even comprehend what he said and then you say he’s wrong! 😂😂truly pathetic. Supple side is not even debatable at this point in time. The data is not ambiguous or close enough to make contentious claims. The American economy has proven that SS is successful. It’s also proven the Dems long time economic policy is a failure. Over and over again.

[@johnjenson9965]

He is a multi-millionaire! Rich Socialist=Hypocrite

[@thosethatcan]

WORD? DO TELL ! ~

[@jayakumarkaarikuzhy4713]

Retired Professor means he must definitely be highly educated and which brought him highly paid academic jobs in universities. His 'multi millions' must be savings from his jobs. If he had stolen someone else's wealth or made those millions through illegal activities I Would have supported your views.

[@johnjenson9965]

@jayakumar kaarikuzhy Paid speeches and appearances. Book deals! Google his net worth! Use multiple sources! Think and use your BRAIN!

[@JDMPhil87]

Awesome Headline

[@scottbanghart3866]

Reduce/Eliminate wasteful spending BEFORE ANY talk of raising the debt limit ! Insanity is defined as doing the same thing over and over and expecting different results , right !

[@sayfo666]

All the “debt” is are savings accounts at the Fed in the form of interest bearing treasuries. Bond sales are NOT borrowing operations; they are a tool of monetary policy for the Fed to hit its overnight rate target. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@scottbanghart3866]

@@sayfo666 Reduce/Eliminate wasteful spending because we ALL know it exists big time ! Social Security funds are running dry because of this and it needs to change .

[@sayfo666]

@@scottbanghart3866 • FALSE Social Security can NEVER go broke as it is funded by the currency issuer that appropriates NEW $$ every time it spends. FICA is about allocation, not funding.

[@sayfo666]

@@scottbanghart3866 • The US gov doesn’t “have” or “not have” money. Using phrases like “How do they plan on paying for this?” or “The 🇺🇸 Govt is going broke” is an immediate misinterpretation of the role of the 🇺🇸 govt as like a household in the private sector. The govt spends by fiat i.e. political will and in that way adds net dollars to the money supply. And when it taxes (as well as issuing fees and fines) it drains money from the money supply. Knowledge of central banking and monetary operations helps understand the paradigm better. As far as the treasury and general account that is just spreadsheets and bookkeeping; the 🇺🇸 doesn’t store away taxes for recycling. There is no possible monetary operation for recycling taxes, because the way the gov spends concerns “high powered money”, which is what is injected into the money supply after a congressional appropriation. High powered money is a result of the Treasury making deposits - per law via the congress - into a bank account AS WELL AS the Fed ensuring the deposits clear by adding the corresponding reserves into a bank’s reserve account at the Fed. High powered money is the combination of Treasury deposits (into a firm’s bank account) and Fed deposits(into the bank’s reserve account). When the US gov spends it issues the dollars from a law (legal fiction) which are added to the money supply as cash + reserves where again cash is dollars in a current account and reserves are settlement funds in a bank’s reserve account(also considered as cash). Taxes reverse the process. It’s operationally impossible to recycle taxes. When taxes are paid, that person’s payment meets the tax obligation leaving only bookkeeping for the Treasury, Fed, SS, etc. A person’s bank debits the account for the amount paid to IRS. Therefore a tax is paid and that means the dollars in the person’s current account are deleted by the bank. Then the bank’s reserves take over & they are used to settle the rest of the transaction ending up back at central bank where they are also deleted as having completed the initial tax obligation. There is no monetary operation available or necessary to conjure up those settled reserves for re-spending as the govt will just issue new dollars and reserves each time it spends henceforth.

[@randythomas3478]

Republic now Republic now!

[@dianahill5116]

All religious organizations should be required to pay: federal, state, County and property taxes. They should be required to do bookkeeping. What do they spend their money on: lawyers, lobbyists, campaign donations, payments for lawsuits--pedophile priests and their accomplices, bribes, retirement, life insurance, building and maintenance, landscaping, vehicles--food and shelter for themselves, stock markets, travel, advertising, building insurance, vacations, health care for themselves, and such?

[@craigschiele4976]

I doubt that will help. Perhaps you don’t realize how much 31 trillion dollars is, and that doesn’t include the unfunded social security and Medicare liabilities.

[@MontyMM27]

Good job professor Wolff

[@sayfo666]

Sorta.

[@sayfo666]

Technically by it is operationally impossible for federal taxes to be recycled. Federal taxes NEVER provide revenue nor funding for govt spending. State and municipal taxes are revenue but federal taxes NEVER fund any spending. The US is monetarily sovereign and doesn’t need an income to spend because it issues the currency. All spending is new dollars as a result of political will in congress(known as “high powered money” because it is bank deposits + bank reserves). Federal taxes do the reverse resulting in deleted funds from the bank account and deleted reserves from the bank’s reserve account. Therefore re-spending is operationally non-existent. Once the reserves are deleted from the reserve system all that is left is bookkeeping for the IRS, Fed, treasury, and Social security etc. for allocation purposes. So, what needs to happen is a shift in political will to what benefits Main St/the 99% Even Social security is just a spreadsheet for accounting and allocation purposes, not an account full of contributions. Shocking maybe, but since leaving the gold standard domestically in ‘33 via FDR, federal taxes have definitely not been revenue because there was no longer a gold standard to defend.

[@joelhenderson9393]

oh no the government would shut down? have mercy, what would we do?

[@gruit5876]

Inflation is a regressive tax that disproportionately weakens the spending power of the poor and middle class. It also hits small business hard. The federal reserve is raising interest rates and pulling money out of our national debt through quantitative tightening. Now they want to reverse course and start quantitative easing before inflation drops back down to 2%?

[@sayfo666]

All the “debt” is are savings accounts at the Fed in the form of interest bearing treasuries. Bond sales are NOT borrowing operations; they are a tool of monetary policy for the Fed to hit its overnight rate target. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@The_Savage_Wombat]

The Fed pulls money out of borrowers pocket's and into wealthy bankers pockets. It's not the fairest way to slow inflation but it sure makes the bankers happy.

[@billross9744]

Mr. Wolf. You did an amazing job of making what I would consider a boring topic very interesting and applicable, and you were able to explain that in such a way that a person like me, who gets confused easily with economics, was able to, for the most part, understand! Thank you very much!

[@henrygustav7948]

Richard Wolff is stuck on the neoliberal framework and can't change direction because he has been telling this bullshit for a long time. Telling the truth would mean he has been wrong about Fed govt finances for most of his life. The Federal govt does not tax or borrow dollars that they then spend. They spend firstly, then and only then can ANYONE pay taxes or buy US treasuries. US dollars come FROM the Federal govt, not taxpayers. There is nothing wrong with the National debt per say. All it is, is the total amount of dollars the US Govt has spent since inception that it has yet to tax back, this money sits in the economy as our savings, earning interest. To pay it back means to move some $ from savings accounts at the Federal reserve to checking accounts.

[@sayfo666]

It’s not “our tax dollars” that are paying for ANYTHING. It is operationally impossible to recycle federal taxes for spending. ALL federal taxes redeemed by the IRS are deleted by the Fed leaving only spreadsheet bookkeeping for the Treasury, social security, Medicare, etc. All federal spending is NEW DOLLARS appropriated via political will in congress. Where the political will goes, the money ALWAYS follows.

[@sjv9147s]

Prof. Richard Wolff explains the reasons and mechanics so clearly. He brings it all down to the bare basics. Cuts through all the grease, so to speak.

[@gruntgamer4204]

Funny how they say our families should have to pay on it when it's their fault the debt is in place.

[@sayfo666]

All the “debt” is are savings accounts at the Fed in the form of interest bearing treasuries. Bond sales are NOT borrowing operations; they are a tool of monetary policy for the Fed to hit its overnight rate target. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@MrRrc123]

Congress is in charge of spending our money.they want to look out for the rich and powerful there own pockets and make us pay for Putins war.they want us to pay for the illegals they are housing and feeding while they make cuts to snap housing etc for the citizens who are elderly disabled kids etc.They need to take care of the citizens before anyone else.The rich has way more then enough you can't take it with you when you die.Nobody should be living in poverty when there are some who living high on the hog.

[@tiffanygriffin8647]

This is what happens when value-based currency (as in when it was backed by gold, for example) was replaced with valueless paper currency. Every dollar in our system is now result of debt. It’s gonna get bad.

[@gruit5876]

Ray Dalio said it best a few days ago in fortune Magazine, "Billionaire investor Ray Dalio says the U.S. debt limit is a ‘farce’ it ‘works like a bunch of alcoholics who write laws to enforce drinking limits’ ".

[@dannywindham3295]

It is a farce it's a lie United States federal government doesn't borrow its own currency that it creates that makes no sense. United States federal government is the Creator and the issue of the currency the US dollar the money. Article 1 Section 8 Clause 5 of The Constitution. Congress shall have the power to coin money and regulate the value thereof. Article 1 Section 8 Congress shall have the power of the purse. There is no debt the so-called debt that isn't the debt of any kind is nothing but treasury Securities that anyone can buy. These treasury Securities are left over from the gold standard there in anachronism. Professor Stephanie Kelton learn mmt please

[@TIznus]

It boggles me how one can argue the excesses of capitalism result in over powerful oligarchs… When that is exactly what happens every single time under communism.

[@kardz1848]

The only ones that actually want to be communist have never experienced its effects.

[@lefttoitall2982]

No, respectfully, that has never happened. Understanding the definitions of terms like Capitalism, Socialism, Communism, etc., is how we are able to transcend from comments like these. Moreover, true "Communism," has never happened in any country ever. There have been various versions of socialism in countries but you cannot have actual "Communism" under a global Capitalist economic system.

[@curtisjeffries9640]

Economist and Marxist don't go together. Not if you want a healthy, functioning economy.

[@lefttoitall2982]

@@curtisjeffries9640 Well, first of all, are you suggesting that this is a "healthy economy?" I think that there are many mainstream economists who would disagree with you there. Second; Marx was an economist, like Prof. Wolff, and they are the one's creating solutions that would mitigate the excessive profit driven greed that drives capitalism into an more economically viable, sustainable and moral system. Third, China, a mixed economy, alleviated extreme poverty in their country within a couple of decades, making the West look incredibly backwards in comparison.

[@curtisjeffries9640]

@@lefttoitall2982 Try not to delete your comments, bruh. 😂

[@MelliFluoGddy]

The government does not need to rely on taxes to spend into the economy. Who pays the taxes does not issue the currency.

[@bengay4449]

Unfortunately, a corporate tax is simply passed down to the consumer and so it acts as an indirect tax on every spender in the United States. It's a terrible system.

[@mjhzen8313]

If I was president, I would put Richard Wolff in my cabinet. I would have to clone him though, because I would make him my Treasury Secretary, my Labor Secretary, my Commerce Secretary, my Education Secretary, and my Energy Secretary.

[@sayfo666]

He is totally clueless on govt finance and currency. Technically federal taxes NEVER provide revenue for govt spending. State/municipal taxes = revenue but fed taxes NEVER fund spending. 🇺🇸= monetarily sovereign & doesn’t need income to spend b/c it issues the dollar. All spending = new $$ as a result of political will in congress.

[@ryans4096]

High level convo! Thanks!

[@francismarion6400]

As an individual, when you cut spending, your debt doesn't go up. As an individual, if you get a tax cut, your disposable income goes up.

[@ObiShawnKenobi1]

This is sickening, why is this allowed?

[@meat_popsicle69]

3% reduction in the budget is a large cut?

[@sayfo666]

Technically it is operationally impossible for federal taxes to be recycled. Federal taxes NEVER provide revenue nor funding for govt spending. State and municipal taxes are revenue but federal taxes NEVER fund any spending. The US is monetarily sovereign and doesn’t need an income to spend because it issues the currency. All spending is new dollars as a result of political will in congress(known as “high powered money” because it is bank deposits + bank reserves). Federal taxes do the reverse resulting in deleted funds from the bank account and deleted reserves from the bank’s reserve account. Therefore re-spending is operationally non-existent. Once the reserves are deleted from the reserve system all that is left is bookkeeping for the IRS, Fed, treasury, and Social security etc. for allocation purposes. So, what needs to happen is a shift in political will to what benefits Main St/the 99% Even Social security is just a spreadsheet for accounting and allocation purposes, not an account full of contributions. Shocking maybe, but since leaving the gold standard domestically in ‘33 via FDR, federal taxes have definitely not been revenue because there was no longer a gold standard to defend.

[@meusha846]

The prophet of economics!

[@r4ybc]

Explain the mechanism of federal "borrowing". Have a good think about the answer. Sad to see this huge blind spot in the good professor's take on macroeconomics.

[@newpilgrim]

6:00 to 6:33...you can't make this 💩up! Thanks for keeping it real!

[@adampaul9179]

Bring Richard Wolff on the show more often.

[@celestejones6315]

YES! I really wish they would!

[@cloudbusting_]

Yes and don't forget David Harvey either.

[@sportsfisher9677]

Why ? He is a Marxist. Marxism in old Soviet union and in China are not Democratic systems. Why do we have to choose between fascism and marxism ?

[@cloudbusting_]

@@sportsfisher9677 Richard Wolff is not an advocate for China or the defunct USSR. He analyzes politics of today with a Marxist lens, e.g. a lens which privileges the views of labor over capitalists. Wolff is an advocate of democracy in the workplace, for instance, something that we have never had access to in our so-called democratic countries. Democracy has always stopped at the door of the private sphere, belying the very concept in real terms.

[@michaelcap9550]

@@cloudbusting_ Marxist lens - the problem.

[@72marshflower15]

Marxist theorist? Marx defined capitalism as we understand it today. He was even pen pals with Abe Lincoln 💥

[@Daniel-ci4cd]

no tax-no gov.-anarchy

[@markmoses4646]

You need to have on an MMT economist, like Warren Mosler or Stephanie Melton. Wolff doesn't get MMT economics on the macro level.

[@tonicalloway7227]

Thank you Dr. Wolff,for such a short and simple explanation to a big and complexed situation..

[@henrygustav7948]

Richard Wolff is stuck on the neoliberal framework and can't change direction because he has been telling this bullshit for a long time. Telling the truth would mean he has been wrong about Fed govt finances for most of his life. The Federal govt does not tax or borrow dollars that they then spend. They spend firstly, then and only then can ANYONE pay taxes or buy US treasuries. There is nothing wrong with the National debt per say. All it is, is the total amount of dollars the US Govt has spent since inception that it has yet to tax back, this money sits in the economy as our savings, earning interest. To pay it back means to move some $ from savings accounts at the Federal reserve to checking accounts.

[@sayfo666]

Except that It’s not “our tax dollars” that are paying for ANYTHING. It is operationally impossible to recycle federal taxes for spending. ALL federal taxes redeemed by the IRS are deleted by the Fed leaving only spreadsheet bookkeeping for the Treasury, social security, Medicare, etc. All federal spending is NEW DOLLARS appropriated via political will in congress. Where the political will goes, the money ALWAYS follows.

[@michaelmcgarrity6987]

I agree with Professor Wolff on the Debt Ceiling although I'm usually at odds with his positions. There are likely many unrecognizable common interests across Ideologic and Political divides. 96 Billion Dollars to Zelensky without Accounting or Audit Controls as millions of American Citizens struggle to pay for Food, Energy and Shelter. America should be first priority.

[@sayfo666]

Where the political will goes the money ALWAYS follows.

[@michaelmcgarrity6987]

@@sayfo666 Political Will of most ordinary American Citizens goes to maintenance of General Prosperity as Elite Grifter Parasites Will Free Lunch for themselves and the Masses Cheer. They will keep dishing it out as long as People Beg for more. The Bamboozled demand more money for Zelensky as they can't pay for Food, Energy and Shelter. To hell with the Morons. The Depth of our resilience is being drained as Consequences load up in the Pipeline. Morons deserve what they get. All well and good until the Systems Crash then no one is immune as the Piper takes due Pay and you are on your own.

[@bettyburch3692]

Thank you

[@sayfo666]

All the “debt” is are savings accounts at the Fed in the form of interest bearing treasuries. Bond sales are NOT borrowing operations; they are a tool of monetary policy for the Fed to hit its overnight rate target. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@cherylhausam9981]

We don’t need to raise the debt ceiling.

[@richardedward123]

Holy cow. I actually understood an economist.

[@sayfo666]

Technically federal taxes NEVER provide revenue for govt spending. State/municipal taxes = revenue but fed taxes NEVER fund spending. 🇺🇸= monetarily sovereign & doesn’t need income to spend b/c it issues the dollar. All spending = new $$ as a result of political will in congress.

[@ericsuarez834]

He is great, follow him and you'll learn more than in college

[@sayfo666]

@@ericsuarez834, no you won’t. Follow Stephanie Kelton.

[@shannonkelly8665]

I don't know who she is, and first time for me with this professor. Maybe instead of, maybe it's listen to several sources and perspectives?

[@msimon6808]

@@shannonkelly8665 Unlimited debt means worthless money.

[@RawGuruRecords]

thank you, please have more economic gurus

[@sayfo666]

Yes, Stephanie Kelton

[@karenmessinger9609]

We're taxed too much as it is. It's the unnecessary spending that needs to stop.. Quit sending money elsewhere as well especially for stupid stuff like to Pakistan for quitting smoking.

[@sayfo666]

Relax. All the “debt” is are savings accounts at the Fed in the form of interest bearing treasuries. Bond sales are NOT borrowing operations; they are a tool of monetary policy for the Fed to hit its overnight rate target. Bond principle & interest is met w/bond refinancing. But the bonds are denominated in U💲D & since the 🇺🇸 govt is the currency issuer, as it is the sole legal monopoly authority issuer of U💲D, it can never become insolvent w/respect to obligations in its own currency.

[@dancewomyn1]

I only returned to this channel to hear the brilliant Mr. Wolff. I was a real supporter of Democracy Now, but have found in recent years (the last three) that they have, to put it mildly, lost their progressive edge, and now seem to be placating to whomever is paying their bills.

[@innerlocus]

So, one owner, and two managers, that makes me feel like I have a choice on who owns the US, with slave wages.

[@celestejones6315]

I'm so ecstatic to see him here. It feels like it's been too long to wait for this interview with y'all, lol. Despite how I listen to him on his other channels all the time, even still. He has so many insightful discussions on the issues with Ukraine too, and not from a pro-war profiteering, pro-capitalist propaganda perspective either, among a lot of other current world problems that are rarely if ever discussed elsewhere. (Dr. Harriett Fraad from Democracy at Work would also be an amazing interview source on SO many subject matters, too.) Thank you so much, Democracy Now, for having him on here. I wish more people would listen to him, and I'm grateful that more people are introduced to his work through you all.

[@henrikrolfsen584]

Imagine this: A Light-year is the distance light travels in one year. A very great quantity, in deed! As Light streams through space at 186,000 miles per second, that means that it travels 5.88 trillion miles in a year. Needless to say, "5,88 Trillion" is a number very difficult for anyone to even visualize. Now try to imagine 30 Trillion! This is the number of Dollars the United States Government currently owes the International Banking System!

[@KScan-cj5wi]

It doesn't owe that to the IBS......................it just creates government negative equity and the double entry is reserves in the central bank which allows commercial banks to buy bonds using those reserves , if it was all paid back it would destroy money and growth, at least that is what another economist I have been listening to lately says! I think the debt story is to keep us all in fear.

[@carterhoey3097]

How does borrowing from corporations instead of taxing them hurt working class people?

[@luperamos7307]

Who do you think benefitted when all this money was printed? You heard how all the billionaires got so much richer. How the houses of the asset owning classes gained massively in value. And how the rest were turned into eternal renters. That is structural. But most economists still insisted how great money printing is. News, you may get more money, but the stuff you buy will gain even more. And if there is a shortage of that product in addition (such as housing), you will be priced out forever.

[@sayfo666]

Nonsense fear mongering. Govt doesn’t “print” anything when it spends. Political will in congress(legislative appropriation)gives Treasury authority to instruct Fed to make deposits (via keyboard) into relevant bank accounts + reserves into relevant bank reserve accts(settlement funds) aka High Powered Money. Using the phrase “printing money” is an erroneous anachronism as the 🇺🇸 govt has always spent by fiat. How else could it spend?? 👉What drives or “backs” the 🇺🇸 dollar is the legal obligation to pay all federal taxes, fees, fines, and court expenses ONLY In U💲D or face fines/prison. Often when someone is unfortunately describing policy as “printing money” - this is referring to money pumped into the banking system aka banking reserves that CANNOT leave the central banking system. Yes, the Fed can make loans against borrower collateral, but of course those loans must be paid back so that is endogenous money(not net increase to the money supply). Reserves held by banks do pay a little interest but because of the SLR (Supplemental Leverage Ratio) it is MUCH more profitable to make loans than to hold on to reserves. One dollar is always worth ONE DOLLAR. No matter the size of the money supply one dollar will NEVER be worth more or less than ONE DOLLAR. The national money of account (the dollar) is not at all like a commodity, which can change in value. That’s because the dollar is what is used to measure value, and not something of value at all in and of itself. Commodities are not a threat to currencies because commodities are bought and sold with currencies.

[@joestocker7639]

I kept hearing the wizard of OZ, If I Only Had A Brain every time he talked.

[@sayfo666]

Stephanie Kelton is the economist for you. You Tube and Twitter

[@granolafunk6192]

@@sayfo666

[@ericbailey9549]

The government can only increase or decrease the tax rate, not the collected taxes. The government gets around the same percentage of GDP.

[@michaelstone7514]

Cut the spending plain and simple. Plenty of tax revenue.

[@Jon-zi5mu]

Get rid of Trump's tax breaks, that would be a start.

[@colbycarr4794]

Get rid of frivolous spending, and the interest expense will go down. Double win!

[@Jon-zi5mu]

@@colbycarr4794 Frivolous spending on what specifically?

[@oliverclinton5145]

I feel one Of the greatest challenges that we first timers face in the ma rket is that we end up losing all we have, making it difficult to find ourselves back to our feet. My biggest advice is to always seek the services of a professional just like I did when I ventured into it for the first time. Big thanks to Jasmine Querida. I now make huge profits by weekly through her services while still learning to stand on my own.

[@jasonwiese3794]

I'm new at this, how can I reach him?

[@oliverclinton5145]

@@jasonwiese3794 "Queridafx"

[@oliverclinton5145]

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