The US war on Iran is leading the world to a global depression. Professor Richard Wolff places the current crisis in the context of the capitalist system and the decline of US hegemonic power.
The American-Israeli conflict with Iran is already causing worldwide economic disruptions, especially in Asia, where fuel shortages, factory shutdowns, and job losses are becoming increasingly apparent. The global economy appears poised to enter a recessive phase, or potentially a deeper depression. To better understand the possible developments and chances of averting severe consequences, Chris Hedges interviews economist Richard D. Wolff, professor emeritus at the University of Massachusetts-Amherst.
Wolff opens by highlighting the inherent fragility within capitalism. Since the 1970s, companies have outsourced production to maximize profits, creating delicate supply networks that are susceptible to energy restrictions and political upheaval.
Studies show capitalist economies experience downturns in cycles of four to seven years. Given that the last downturn occurred five to six years ago, we might be approaching another. Wolff adds that it is premature to forecast whether the next crisis will bring inflation, stagflation, or deflation. Specifically for the United States, escalating military expenses combined with a historic $40 trillion debt and declining creditworthiness will compel borrowing at higher interest rates, thereby worsening the financial strain on the population.
Wolff observes, “We are living through the end of the empire and that end has been accelerated and brought closer by everything going on in the Middle East.” The US faces a pivotal choice: intensifying the conflict in Iran could increase the chances of a worldwide economic collapse. The outlook is bleak, with no effective international framework in place to address these global challenges collaboratively. Moreover, the United States remains in denial about the reality of its waning influence. As Wolff concludes, “It’s not a question of maintaining your dominance. That’s gone. It’s a question of working things out. Our leaders don’t think or talk like that.”
Original article: chrishedges.substack.com
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