How the Iran War is Accelerating the Decline of Empire (w/ Richard Wolff) | The Chris Hedges Report

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.”