ECONOMIST JAMES K. GALBRAITH EXPLAINS HOW RISING ECONOMIC INEQUALITY IS VERY CLOSELY ASSOCIATED WITH THE RISE OF THE STOCK MARKET AND THE INSTABILITY IT BROUGHT ON. THE GOLDEN AGE 1945 TO 1969 WAS A PERIOD OF REASONABLE STABLE GROWTH LARGLY SUPPORTED BY GROWTH OF WAGES. AFTER 1970 A SERIES OF POLICY INTERVENTIONS PRODUCED A SERIES OF REGRESSIONS, FUNDAMENTALLY ALTERING THE INDUSTRIAL STRUCTURE IN THE U.S.. BY THE 1980'S THE EXTENTION OF CREDIT TO A VERY LIMITED NUMBER OF HIGH-LEVEL INDUSTRIES DID NOT CREATE MUCH EMPLOYMENT. CONSEQUENTLY INEQUALITY BEGAN TO RISE ACROSS THE WORLD AS THE FINANCIAL POLICY MAKING WAS TAKEN OVER BY BANKERS THEMSELVES, WHO WITH THE HELP OF THE CLINTON ADMINISTRATION, DID AWAY WITH VIRTUALLY ALL REGULATION, LEADING ULTIMATELY TO THE CREDIT DEFAULT SWAPS THAT WARREN BUFFET APTLY TERMED "FINANCIAL WEAPONS OF MASS DESTRUCTION." PART 2 COVERS THE FIRST DECADE OF THE NEW CENTURY DURING WHICH THESE WEAPONS BEGAN TO EXPLODE, CAUSING THE BANKS TO DEMAND BAILOUTS AT TAXPAYER EXPENSE WHILE SENDING THE 99%'S JOBS AND PROSPERITY DOWN THE TOILET.

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April 18, 2012

Inequality and Instability

James K. Galbraith presents his study of the world economy just before the great crisis



April 19, 2012

Inequality and Instability - Part 2

James K. Galbraith: The Bush years - Growth demanded new markets among debtors who previously had not qualified for mortgages



Bio

James K. Galbraith teaches economics at the University of Texas where he is a Senior Scholar of the Levy Economics Institute and the Chair of the Board of Economists for Peace and Security. The son of renowned economist, the late, John Kenneth Galbraith, he writes a column called "Econoclast" for Mother Jones, and occasional commentary in many other publications, including The Texas Observer, The American Prospect, and The Nation. He is an occasional commentator for Public Radio International's Marketplace.He directs the University of Texas Inequality Project, an informal research group based at the LBJ School.