The US economy is now heavily dependent on finance for accumulation, which coincides with the explosion in debt. Private debt is now massive and growing, and those that own the debt have paid politicians (including “middle class” Biden) to keep their debts on the books. In fact, when the last crash happened, there was supposed to be help for home owners, and their debt, municipal debt and none of that happened. Cause the debt finance owns cannot be written down, even as wages, and profits, and tax revenues fall. The too big to fail banks are now much larger, and they pose a larger threat to the system, which means when the crash happens, the state will bail out financial capital, and they’ll keep all the debt on the books again. And it will be both parties doing this again.
Regarding inflation, realize what the financial press said. They said that wages were better than expected and there were fears about inflation. I want all of the working people reading this to think about that. Increased wages for working people is something that spooks the markets, and increased wages results in people with high propensities to spend (the poorer you are, the higher that propensity is, usually) having more money. So, not only do the capitalists want to push forward with automation (without ever discussing ownership, and whether or not it then makes sense for capitalists to own the machines), not only will they create intellectual property rights regimes that benefit large corporations, not only will they offshore production to places with massively low wages, in countries that are often authoritarian, and next to no environmental regulations, but if wages (despite all of this) increase, the financial markets will flip out. Then there’s the fact that capitalism is undeniably the key driver in the environmental crisis and in undermining democracies the world over.
This is capitalism. It isn’t a capitalism that is bad because it isn’t properly regulated. It isn’t just this version of capitalism that is bad. This is capitalism, always has been. And now the left in many developed countries is too weak to be a good counterweight. Maybe what is ahead will radicalize people further. That is already underway in the US, I just hope it speeds up a bit, cause those in power have no freaking answers and things continue to get much worse thanks to them and their crappy ideas.
We need public banking and we need to take away the power of private banks to create credit money. Let’s socialize that too. Kind of funny that Marx essentially assumed that capitalism had an important historical role to play, in that it would develop countries to the point where socialism was possible. If you read Marx, he basically assumed that industrial capital would take on financial capital, and warned time and time again what would happen if it didn’t. Well, it hasn’t, and at some point, a crisis will be too big for central banks to do anything. If you look at what central banks have done since, they’ve just made the next crash far, far, far worse.