“Very, very dangerous time for modern capitalism, and maybe, the end of this system's ability to function. Debt may be playing that role. It certainly has played that role in the demise of other economic systems and empires.”
In 10 years, there’s been a 25% increase in what Prof Wolff calls “the four horsemen of debt”- mortgage, credit card, automobile & student debt. Even more shocking, corporate debt has doubled. Not to mention the government’s debt.
The truth is, we are in uncharted economic territory. For ten years, Economic Update has brought you a critical understanding of the way our economy has changed. To commemorate this anniversary and what has changed, you can watch this special video analyzing the looming reality of global debt, what it means for the economy & our lives.
Debt creates a system of interdependence. When a loan is taken out, there is an obligation and expectation to repay it. Companies and countries buy and sell debt like they were true economic commodities. However, in a system as unpredictable as capitalism, these expectations often can’t be met, and the debt networks can come crashing down.
“We have a network, a spider's web of debt and obligation. Which means if you lose your job, it's not just a catastrophe for you and your family, it's a catastrophe for the whole network.”
The dot-com crisis, the Great Recession of 2008, and the COVID economic downturn all revealed the dangers of debt. Yet, to grow the profits of capitalism, debts are bigger today than they were 10 years ago, bigger than ever before.
“10 years ago, when this enormous increase in debt was really gathering steam, was also the time that we started Economic Update… So we kept an eye on this extraordinary growth in debt and what it meant.”
This month, we’re celebrating our success in covering the issues of our times like debt, and we hope you can support us in growing our audience and offering coverage like this for years to come.
Producing Economic Update has always depended on audience donations. To help us grow for another 10 years, please consider donating to Democracy at Work with a monthly gift. Our monthly supporters are invaluable to us, in that they allow us to plan for the future, and commit to bringing you more Economic Update. Thank you.