Yanis Varoufakis: The Future of Capitalism | The New School
TLDRThe transcript captures a thought-provoking discussion on the future of capitalism and democracy, featuring distinguished speakers like Yanis Varoufakis and Eva Boyer. They delve into the historical and contemporary challenges faced by economies, particularly Greece, within the European Union framework. The speakers argue for a more democratic and just economic system, critiquing austerity measures and the lack of genuine democratic processes. They advocate for investment, smarter tax systems, and an internationalist perspective to combat the rise of extremism and promote progressive politics.
Takeaways
- 🎓 The New School is recognized for promoting subversive thinking in economics and maintaining a connection with real-existing capitalism.
- 📚 Economic theories often fail to capture the essence of capitalism and democracy, as they are highly indeterminate processes.
- 💡 Robert Heilbroner's work, particularly 'The Worldly Philosophers', is considered a brilliant introduction to economic thinking, combining economic history and thought.
- 🗣️ Yanis Varoufakis emphasizes the importance of critical analysis and the pursuit of changing the world through scholarship, in line with The New School's mission.
- 🌍 The European Union is experiencing a democratic deficit, with important decisions being made in a democracy-free zone, leading to a crisis of capitalism.
- 🛑 The concept of democracy in ancient Athens was different from modern liberal democracy, with power lying with the poor majority and a focus on the right to be heard regardless of status.
- 🔄 The struggle between capital and labor within capitalism is a profound disequilibrium process, with capital aiming to commodify and cheapen labor.
- 🚫 The rise of austerity measures in Europe, particularly in Greece, has led to increased poverty and unemployment, and a decrease in public resources.
- 💥 The potential of technology to disrupt the current logic of corporate capitalism, possibly leading to a 'Star Trek'-like utopia or a 'Matrix'-like dystopia.
- 🌉 The need for a green new deal and political activism to impose change and stabilize the European Union amidst the current economic and political challenges.
Q & A
What was the main theme of the discussion at The New School?
-The main theme of the discussion at The New School was the future of capitalism, with a focus on critical inquiry and tradition, as well as the role of economic policy analysis in shaping this future.
Who is Yanis Varoufakis and what is his background?
-Yanis Varoufakis is a distinguished economist and former Greek finance minister. He has a PhD from the University of Essex and has published numerous scholarly works, including books on game theory and modern political economics. He is known for his critical perspectives on capitalism and his involvement in the Greek debt crisis.
What is the significance of Robert Heilbroner in the context of this discussion?
-Robert Heilbroner was a notable economist whose work, including his book 'The Worldly Philosophers', is considered a significant contribution to understanding the range and complexity of economic thought. His approach to economics, combining economic history and thought, is embedded in the DNA of the Economics Department at The New School.
What is the role of The New School in promoting progressive and critical thought?
-The New School has always been a place for progressive and critical thought, with its history tracing back to its founding in 1919 by progressive thinkers. It provides an environment for independent thinking and engagement with original ideas in various fields, including economics, art, and social practice.
How did Yanis Varoufakis describe his experience as Greece's finance minister during the debt crisis?
-Yanis Varoufakis described his experience as challenging, particularly in dealing with the European finance ministers. He highlighted the tension between the principles of continuity and democracy within the European Union, and the difficulty of negotiating debt restructuring due to the conflicting interests and the Troika's refusal to acknowledge the unsustainability of Greece's debt.
What was the key message in Yanis Varoufakis's speech about democracy?
-The key message in Yanis Varoufakis's speech about democracy was that it is a system for people who are not sure about what they think, and that through argument and practice, society can create what did not exist before. He emphasized that democracy is a highly indeterminate process and cannot be reduced to a technical solution or a set of equations.
What did Yanis Varoufakis suggest is the future of capitalism and democracy?
-Yanis Varoufakis suggested that the future of capitalism and democracy is uncertain and could lead to either a 'Star Trek'-like utopia, where technology serves the common good, or a 'Matrix'-like dystopia, where humans become servants to machines. The choice, he argued, will depend on democratic politics and the ability to regulate the increasing concentration of power in the IT sector.
How did Eva Boyer address the issue of austerity measures in her talk?
-Eva Boyer criticized the austerity measures imposed on Greece, arguing that they were based on a false narrative of Greek laziness and overspending. She pointed out that the real issue was a lack of public resources, not national resources, and that the austerity policies led to a decrease in demand, business closures, and high youth unemployment, without allowing the Greek people to work themselves out of the crisis.
What is the role of the European Central Bank (ECB) in the European Union's economic policies?
-The European Central Bank (ECB) plays a central role in the European Union's economic policies by institutionalizing monetarism and contributing to a series of monetary and fiscal arrangements that have led to austerity. The ECB's policies have been criticized for not acting as a government bank and for imposing cash flow limits on central government, similar to those found in private households and businesses.
What does the concept of 'phronesis' mean in ancient Athenian democracy?
-In ancient Athenian democracy, 'phronesis' referred to the right to have one's views listened to on their merit, independently of who is speaking. It emphasized the importance of the content of the argument over the status or eloquence of the speaker, and it was a key aspect of the democratic process in Athens.
How did the speaker, Mark Setterfield, relate the developments in Europe to potential future developments in the US?
-Mark Setterfield drew parallels between the developments in Europe, particularly the rise of right-wing politics and the disintegration of the European Union, to potential future developments in the US. He suggested that the US could face similar challenges if it does not address the economic and political discontent currently present in the country.
Outlines
🎤 Introduction and Welcome
The introduction sets the stage for the event, highlighting the importance of the speaker, Yanis Varoufakis, and the timely discussion on the future of capitalism. The host appreciates the large audience, both present and online, and acknowledges the role of the Schwartz Center for Economic Policy Analysis (SCEPA) in organizing the event. The emphasis is on critical inquiry and tradition, with a nod to the late Robert Heilbroner and his significant contributions to economic thought. The New School's progressive and critical approach to education is also celebrated, with references to notable alumni and the institution's commitment to social change.
🌍 The New School and Its Legacy
This paragraph delves into the history and ethos of The New School, emphasizing its founding principles by progressive thinkers and its role as a haven for scholars fleeing fascism. It highlights the institution's commitment to critical thought and its ability to adapt to changing times, as exemplified by its diverse schools and programs. The New School's mission to integrate scholarship with real-world impact is underscored, along with its belief in the transformative power of education.
🤝 Welcoming the Guest Speaker
The speaker, Professor Yanis Varoufakis, is introduced with a focus on his academic and professional achievements. His contributions to microeconomics, particularly in game theory, and his publications are highlighted. The speaker's election to the Greek parliament and subsequent role as finance minister during the Greek debt crisis are discussed, along with his resignation in protest of austerity measures. His founding of the DiEM25 movement is also mentioned, emphasizing his commitment to European democracy.
🌟 The New School's Commitment to Scholarship
This section emphasizes The New School's dedication to scholarship that can change the world, as exemplified by its various educational programs. The New School's unique approach to learning, which fosters independent thinking and critical engagement, is praised. The speaker's alignment with The New School's values is noted, and the audience is reminded of the importance of critical analysis in understanding and shaping the world.
📚 The Importance of Economic History
The speaker discusses the significance of economic history and thought in understanding capitalism, challenging the prevalent notion that economics is a precise science. The importance of considering historical and economic perspectives is emphasized, along with the need to recognize the cyclical nature of economic ideas. The speaker criticizes the current state of economics education, which often overlooks the contributions of past thinkers and the evolution of economic systems.
🗣️ The Struggle for Democracy and Capitalism
The speaker explores the complex relationship between capitalism and democracy, arguing that they are not naturally compatible systems. He discusses the historical development of both concepts, noting that capitalism's success often lies in its ability to commodify labor and reduce costs, which inherently creates a struggle with democratic principles. The speaker suggests that the current political and economic systems are in a state of disequilibrium, with ongoing tensions between capital and labor that are unlikely to be resolved.
🌐 The Future of Capitalism and Democracy
In this section, the speaker discusses the future of capitalism and democracy, emphasizing the need for a critical examination of both systems. He suggests that the increasing concentration of power in the economic sphere, coupled with the diminishing role of political systems, is leading to a crisis of governance. The speaker argues that the rise of technology and automation could lead to a utopian or dystopian future, depending on how these changes are managed. He calls for a democratic response to these challenges, highlighting the importance of political power in shaping the future of capitalism.
Mindmap
Keywords
💡Capitalism
💡Democracy
💡Austerity
💡European Union
💡Global Minotaur
💡Heilbroner Lectures
💡Economic Crisis
💡Public Debt
💡Social Democracy
💡Technological Unemployment
Highlights
The discussion emphasizes the importance of critical inquiry and tradition in understanding the world, especially in the context of capitalism.
The New School's role in promoting progressive and critical thought is highlighted, with a history of welcoming scholars fleeing fascist regimes.
The lecture series is named after Robert Heilbroner, who was known for his ability to think independently and write critically about capitalism.
Yanis Varoufakis's academic and political career is introduced, noting his innovative approach to microeconomics and his role in the Greek debt crisis.
The concept of 'economics as a non-natural science' is introduced, challenging the idea that economic models can be as precise as those in physics.
The speaker discusses the limitations of discussing capitalism and democracy without understanding their historical contexts and complexities.
Ancient Athenian democracy is discussed as a model where the majority ruled, and the concept of 'isonomia' or equal rights was central.
The transformation of capitalism from the 19th century authoritarian regimes to modern democracies is explored, highlighting the shift of power from political to economic spheres.
The speaker shares personal experiences from the Eurogroup meetings, illustrating the clash between democratic principles and economic policies.
Kenneth Arrow's impossibility theorem is mentioned, which reveals the inability to create a well-defined common will from individual preferences.
The struggle between capital and labor within capitalism is described as an epic, unresolved conflict that is deeply disequilibrium.
The concept of democracy as a system for people who are unsure of what they think is introduced, emphasizing its role in enabling collective argument and action.
The speaker shares an anecdote about negotiations with the IMF, revealing the gap between theoretical economic models and real-world political decisions.
The transformation of the European Union into a 'democracy-free zone' is criticized, arguing that important decisions are made without democratic accountability.
The potential of technology to create a 'Star Trek'-like utopia or a 'Matrix'-like dystopia is discussed, depending on how political systems manage technological advancements.
The speaker argues for the need to democratize the European Union and return power to autonomous democratic nation-states.
The event concludes with a Q&A session where the speaker engages with the audience on topics such as Podemos in Spain, the situation in Greece, and the concept of Brexit.
Transcripts
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