The poorest nations are increasingly beholden to the hedge funds — Bill Mitchell

We kid ourselves when talking about change. I see a lot of Op Ed material recently from the so-called Left that seems to suggest, for example, that those concerned about climate change are really just handing the keys to capital who will use the appetite for ‘change’ to impose punitive policy shifts that will damage the poorer households and communities, while at the same time, strengthen the elite control over income distribution and governments. There are elements on the Left that also think we can ‘heal’ Capitalism – somehow by redefining what ‘capital’ means. This morphs into an assertion that the major problem is that private banks can create credit at will such that we have allowed ‘allowed the credit commons to be privatised’, which in turn drives an unsustainable need for growth to continue to pay interest. I will comment more on that idea in another post – as part of my Degrowth series. But the relevant point here is that Capitalism has created institutions that work to perpetuate the power relations that define who owns capital. These institutions extend to the multi-lateral, government funded organisations such as the IMF and the World Bank, who now function quite differently to the way they were originally conceived. I was thinking about that while reading the latest World Bank publication – International Debt Report 2022 (released December 6, 2022) which captures what is really wrong with Capitalism and leads one to conclude that ‘healing’ requires killing the patient!…

What is really wrong with "capitalism"? The capitalist system is based on favoring capital (ownership) over labor (people) and land (environment). This systemic imbalance leads not only to periodic breakdown economically and financially in the form of cyclic recessions, financial crises and occasional depressions, but also to ecological destruction in the pursuit of growth (profits) and social dysfunction by prioritizing profits over people's needs.

The claim is that there is no alternative (TINA). Is that really the case?

Bill Mitchell – billy blog
The poorest nations are increasingly beholden to the hedge funds
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia