Apr 20, 2019
Steve's guest is L.
Randall Wray, a professor of Economics at Bard College and Senior
Scholar at the Levy Economics Institute. In this 2017
interview, Wray looks at the Global Financial Crisis from both
sides now. The celebrated economist tells Steve how the rise of
shadow banking led to banking deregulation, opening the door for
massive fraud, leading to the global financial crisis. He then
explains in detail how globalism affected average Americans,
suppressing their wages for 40 years and forcing them to amass
unsustainable personal debt. These two threads led to the
Wray compares the
federal government’s response to the banking crisis with the
reaction to the real economy’s crisis, the jobs crisis, and the
consumer spending crisis. Is it any wonder that Wall St recovered,
but the rest of the economy did not?
He maintains that
only a federal job guarantee will prevent more pain. Manufacturing
jobs are not coming back to the US any time soon. He goes on
to address both the myths and reality of Social Security and
Medicare. And finally, he offers a simple but truthful
description of the relationship & interaction between the
central bank, or Federal Reserve, and the Treasury.