Wednesday, February 29, 2012
Michael Hudson: Planning for the One Per Cent
There is a lengthy interview on video plus a transcript with Michael Hudson at this site.Michael Hudson was formerly a Wall Street Financial analyst. At present he is a distinguished research professor in economics at the U. of Missouri in Kansas City.
Hudson discusses the role of large banks, financial power, and public policy. Hudson notes that concentration of ownership of corporations also concentrates political power. Lobbying and donations by corproations increases their political powr.
In particular Hudson argues that finance is becoming more and more important in determining policy. Planning and policy are less determined by government than by large financial institutions. This has been happening Hudson claims since the 1980's and is evident not just in Europe but in North America as well. The overhwelming influence of financial powers on the plans for bailouts in Europe seem to support Hudson's views on this.
Banks often plan for the short term wanting to increase their profit and little else. The reckless loaning of money and use of complex financial instruments whose risk was diffiult to determine helped create the recent recession. Many bank schemes have nothing to do with increasing production or innovation. For much more see the full interview and transcipt here.