NO ADVERTISING, GOVERNMENT OR CORPORATE FUNDING

  • Latest News
  • Pitch a Story
  • Work with a Journalist
  • Join the Blog Squad
  • Afghanistan
  • Africa
  • Asia
  • Baltimore
  • Canada
  • Egypt
  • Europe
  • Latin America
  • Middle East
  • Russia
  • Economy
  • Environment
  • Health Care
  • Military
  • Occupy
  • Organize This
  • Reality Asserts Itself
  • US Politics
  • European Officials Pushing Austerity in Spain to Boost Corporate Profits By Repressing Unions and Wages


    Bill Black: International Monetary Fund and European Central Bank are pushing countries to accept a pro-corporate agenda that entails pushing down workers' wage across Europe -   February 5, 2014
    Members don't see ads. If you are a member, and you're seeing this appeal, click here


    Audio

      Share to Twitter
    Share to Facebook



    Since I happily discovered TRNN, I have noticed the great strides it has made with having numerous reporters on the ground in important sites - Jennifer Humiston
    Log in and tell us why you support TRNN

    Bio

    William K. Black, author of The Best Way to Rob a Bank is to Own One, teaches economics and law at the University of Missouri Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He has taught previously at the LBJ School of Public Affairs at the University of Texas at Austin and at Santa Clara University, where he was also the distinguished scholar in residence for insurance law and a visiting scholar at the Markkula Center for Applied Ethics.

    Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and general counsel of the Federal Home Loan Bank of San Francisco, and senior deputy chief counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement.

    Black developed the concept of "control fraud" frauds in which the CEO or head of state uses the entity as a "weapon." Control frauds cause greater financial losses than all other forms of property crime combined. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae's former senior management.

    Transcript

    European Officials Pushing Austerity in Spain to Boost Corporate Profits By Repressing Unions and WagesJESSICA DESVARIEUX, TRNN PRODUCER: Welcome to The Real News Network. I'm Jessica Desvarieux in Baltimore. And welcome to this edition of The Black Report.

    Now joining us is Bill Black. He's an associate professor of law and economics at the University of Missouri-Kansas City. He's also a white-collar criminologist and a former financial regulator. He's also a regular contributor to The Real News.

    Thanks for joining us, Bill.

    BILL BLACK, ASSOC. PROF. ECONOMICS AND LAW, UMKC: Thank you.

    DESVARIEUX: So, Bill, you recently wrote an article detailing the severe economic crisis gripping Spain's economy. Can you just explain to us how budget cuts and labor market changes are damaging Spain's economy?

    BLACK: Sure. Spain had, as a percentage of GDP, the second-largest real estate bubble in the world after Ireland. And the response when all of this went down, of course, was to cause a very serious recession.

    Instead of using economic policies that we know will get you out of recessions much more quickly, what in the U.S. context we call stimulus, the European Union and the European Central Bank and the International Monetary Fund, the IMF, the so-called troika, insisted that Spain impose austerity in the--so cutting down on spending.

    And they didn't just do that. They also said, you need to get rid of your labor laws that protect workers, because we want to cause workers' wages to fall sharply in Spain.

    But, of course, a recession occurs when demand is inadequate, and if you cut workers' wages, they have less income, and so their demand for goods and services goes down. So this is every bit as intelligent as a doctor attaching leeches to your body to bleed you to make you better, and then, when that doesn't work, put more leeches.

    DESVARIEUX: So, Bill, you have officials from the European Central Bank and the IMF claiming that the goal of austerity is really to balance the federal budget, these budgets of these companies. But you also are saying obviously demand, with lower wages, is going to wane as well. So what is really the hidden goal with these austerity programs?

    BLACK: Well, it's not so hidden. They want to reduce wages substantially, which will increase corporate profits. And they want to lock the nations in the periphery in a competition, so that Spain has to reduce its wages so that it can out-compete Portugal, and Portugal has to do it so it can out-compete the Italians, and they have to do it to out-compete the Greeks. And, of course, the progression of all of this is that--we call it The Road to Bangladesh. You know. You're going to drive wages down to the extent you can globally in order to make corporate profits rise, but also because it will have the effect of crushing labor unions.

    DESVARIEUX: Alright. Bill Black, thank you so much for joining us.

    BLACK: Thank you.

    DESVARIEUX: And thank you for joining us on The Real News Network.

    End

    DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.


    Comments

    Our automatic spam filter blocks comments with multiple links and multiple users using the same IP address. Please make thoughtful comments with minimal links using only one user name. If you think your comment has been mistakenly removed please email us at contact@therealnews.com

    Comments


    Latest Stories


    Protesting GM Auto Workers Attacked By US Embassy Staff
    The Life and Times of Emory Douglas, Minister of Culture in the Black Panther Party (3/3)
    G-20 Recommits to Lifting Private Sector Activity 2/2
    Obama Unveils Immigration Plan, But What Will It Change?
    TRNN Replay: Immigration Reform Requires Dismantling NAFTA and Respecting Migrants' Rights
    TRNN Replay: Why Do Mexican Workers Head North?
    TRNN Replay: Do Undocumented Workers Take Jobs and Lower Wages?
    Study Finds Racial Profiling Persists in Toronto Despite Ban
    G-20 Recommits to Lifting Private Sector Activity
    Who Is In Charge of Development: The Elite or the Majorities? (1/2)
    Swedish Court of Appeals Rule to Continue the Detention of Julian Assange
    TRNN Replay: Do Undocumented Workers Take Jobs and Lower Wages?
    TRNN Replay: Founding SNCC and Taking on Mississippi - Bob Moses on Reality Asserts Itself (4/9)
    The Power to Create Money in the Hands of the Banks
    TRNN Replay: The Respectable Face of Terror - Robert Moses on Reality Asserts Itself (3/9)
    Animal Agriculture: A Neglected Agent of Global Warming?
    Despite Senate Vote on Keystone XL, Tar Sands Oil Will Still Reach the Gulf
    Seattle Begins Police Reforms in Wake of Federal Civil Rights Investigation
    TRNN Replay: Bob Moses on Reality Asserts Itself (2/9)
    All Eyes on Ferguson as Gov. Nixon Declares State of Emergency Ahead of Grand Jury Decision
    The Life and Times of Emory Douglas, Minister of Culture in the Black Panther Party (2/3)
    G20 Summit Failed to Seriously Address Global Problems
    TRNN Replay: Glen Ford on Reality Asserts Itself
    Who is Behind the Ousting of President Compaore in Burkina Faso?
    Investigation Uncovers "Culture of Impunity" for Chicago Police Department
    TRNN Replay: Bob Moses on Reality Asserts Itself
    RAP NEWS 29: The G20 with Tony Abbott - Feat. Senator Scott Ludlam
    Critics Say DC's 'Model' Police Review Board Can't Stop Abuses
    $4.3 Billion Fine for Fraud in Exchange Market Manipulations is Pittance for Major Banks
    Obama Administration Leaves Door Wide Open for Torture to Occur Again

    RealNewsNetwork.com, Real News Network, Real News, Real News For Real People, IWT are trademarks and service marks of IWT.TV inc. "The Real News" is the flagship show of IWT and Real News Network.

    All original content on this site is copyright of The Real News Network.  Click here for more

    Problems with this site? Please let us know

    Linux VPS Hosting by Star Dot Hosting