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Michael Hudson

Michael Hudson Quotes

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Famous Michael Hudson Quotes

“Deflation means a slowdown of income growth. Markets shrink, new capital investment and employment also taper off, so wages decline. That is what's happening as deliberate policy in Europe and the United States. Falling or stagnant prices are simply the result of having less income to spend.”

MeanStatesFallGrowthUnitedResultsUnited StatesPolicyHappeningsEuropeInvestmentIncomeEmploymentDeclineWagesDeliberateShrinksStagnantDeflationCapital Investment
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“Now, suppose that a homeowner puts down only 3% of their own money or 3.5% for the FHA. That means if prices go down by only 3%, the house will be in negative equity and it would pay the homeowner just to walk away and say, "The house now is worth less than the mortgage I owe. I think I'm just going to move out and buy a cheaper house." So it's very risky when you have only a 3% or 3.5% equity for the loan. The bank really isn't left with much cushion as collateral.”

IfsThinkingMeanMovingHouseLeftWalksPayNegativeEquityLoanMortgageCheaperCushionsCollateralHomeowners
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“The only way people can repay the debt is by cutting their living standards very drastically. It means agreeing to shift their pension plans from defined benefit plans - when you know what you're going to get - into just "defined contribution plans," where you put money in, like into a roach motel, and you don't know what's coming out.”

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“To save the banks from making losses that would wipe out their net worth, you'll have to get rid of Social Security. It means that you'll essentially have to abolish government and turn it over to the banking system to run, with an idea that the role of governments is to extract income from the economy to pay to the bondholders and the banks.”

MeanIdeasGovernmentRunningTurnsSocialLossPayRolesEconomySecurityIncomeSocial SecurityBankingWipeAbolishBanking SystemNet WorthRole Of Government
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“Wages for the ninety-nine percent have gone down, steadily, since 2008. They've gone down especially for the bottom twenty-five percent of the population. This means that they've gone down especially for Blacks and Hispanics and other blue-collar workers. Their net worth has actually turned negative, and they don't have enough money to get by.”

MeanEnoughGoneFivePercentNegativeTwentiesBlueWorkersBottomPopulationNineWagesNinetyTwenty FiveCollarsNinety NineBlue CollarNet WorthBlue Collar Workers
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“From 2008 to 2016 all the growth in the American economy, all the growth in national income, was earned just by the wealthiest 5% of the population. So they got all the growth. 95% of the population didn't grow. If you can get a flat tax or other lower tax, as Trump is suggesting, then this richest 5% will be able to keep even more money. That means that the 95% will be even poorer than they were before, relative to the very top.”

IfsMeanAbleGrowsGrowthEconomyTrumpTaxesPopulationIncomeFlatsRelativeMore MoneySuggestingAmerican EconomyFlat Tax
Author:Michael Hudson
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