Ann Pettifor on breaking the despotic power of finance
Dr. Ann Pettifor is a world-renowned economist whose book ‘The Coming First World Debt Crisis’ was published in 2006, just one year before the start of the worst financial crisis in three quarters of a century. She is one of the few economists who can claim to have genuinely predicted the crisis.
She has a new book called ‘Just Money: How Society Can Break the Despotic Power of Finance’. Pettifor describes how the legitimacy of monetary systems originates in the social contracts inherent in credit-based transactions. The breakdown of the Bretton Woods system led to a destabilizing credit structure increasingly dominated by speculative activity instead of credit based on productive investment. Pettifor explains her framework for understanding money that will lead to sustainable and productive growth without destabilizing bubbles and crisis.
Also, Erin Ade and Edward Harrison discuss a recent study from the ‘The Equality of Opportunity Project’, which has mapped out the 10 best and worst cities in the US for economic mobility.