How the Iran War is Accelerating the Decline of Empire (w/ Richard Wolff) | The Chris Hedges Report
5/1/202646 min
The global economic impacts of the American-Israeli war on Iran are already being felt, particularly in Asia, through shortages of fuel and other necessities, the closure of factories and the loss of jobs. We are now on a path heading for a global recession, or even worse, a global depression. To sort out what potentially lies ahead and the likelihood of preventing the worst outcomes, Chris Hedges speaks with economist Richard D. Wolff, professor emeritus at the University of Massachusetts-Amherst.
Wolff begins the interview by discussing the weaknesses of the capitalist economic system. Since the 1970s, corporations have been moving production to areas of the world where they can maximize profits. This has created fragile supply chains that are vulnerable to changes in the availability of energy and the fallout of political turmoil.
Research demonstrates that capitalist systems result in cyclical downturns every four to seven years. The last economic crisis was five to six years ago, so we may very well be on the edge of another one. Wolff reports that it is too early to determine if that will result in inflation, stagflation or deflation. For the United States, commitments to greater military spending, a historically high debt of $40 trillion and a declining credit rating will force the government to borrow money at higher interest rates, adding to the burden of an already financially stressed population.
Wolff states, “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 United States faces a critical decision. If it chooses to escalate the war on Iran, the risk of a global depression rises. The future appears to be grim. At this time, there is an absence of a functioning international mechanism through which countries can solve the current crises cooperatively. For the United States, there is also denial about the state of our falling empire. 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.”
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First 90 secondsChris Hedges· Host0:00
[gentle music] The economic fallout from two months of war in Iran is already crippling economies across the globe. Energy prices are soaring. Gasoline shortages and rationing are plaguing countries such as Vietnam, South Korea, and Thailand. Japan has had to twice dip into its strategic reserves since the war on Iran started in February. The rise in price of liquified petroleum gas means cooking gas prices have skyrocketed, devastating households in countries such as India. The price of nitrogen fertilizers produced in the Gulf are also rising at an alarming rate, guaranteeing steep increases in food prices. There are growing shortage of, shortages of helium, aluminum, naphtha, devastating industries including the microchip industry. Textile mills in India and Bangladesh have shut down. Steel mills in India and automakers in Japan have cut production. Tens of thousands of workers across the globe have already lost their jobs. Asian airlines, along with those in Poland, Germany, and Ireland, are cutting flights and raising surcharges with the doubling of the price of jet fuel. The United Arab Emirates, one of the world's richest countries with sovereign wealth funds that total more than