According to Marxist economist Richard Wolff, there's a hidden cost to America's debt that few people talk about. China owns roughly $800 billion in U.S. Treasury bonds. That means the U.S. government—using taxpayer dollars—pays interest to China every year. But instead of funding schools, hospitals, or infrastructure at home, that money flows straight to Beijing—funds that can then be used to advance Chinese interests, including military development.
Wolff argues that this quiet arrangement reveals a deeper contradiction at the heart of capitalism: while Americans are told their taxes support domestic progress, the reality is that wealth is being funneled overseas to sustain a system that works against their own interests.
"If Americans really understood how this works," Wolff says, "they'd realize the truth is the exact opposite of what they've been told."
Richard Wolff is Professor Emeritus of Economics at the University of Massachusetts Amherst and a visiting professor at The New School, where he works on economics in the Marxist tradition. This is Richard's fifth appearance on Robinson's Podcast. In episode #127, he and Robinson discussed some of the most profound criticisms of capitalism; in #154, they focused on the myths surrounding Marxism and Marx himself; in #190 they covered the Israel-Palestine conflict from a Marxist perspective; and in #222 they assess the end of the American Empire. In this episode, Richard and Robinson talk about the 2024 election. More particularly, they discuss the irrelevance of Donald Trump, both candidates' economic policies, the Biden administration's track record, Ukraine and Russia, Israel and Palestine, China, the promise of Kamala Harris, immigration, and the future of the United States. Richard's latest book is Understanding Capitalism (Democracy at Work, 2024).
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