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Today on Scheer Intelligence we dive deep into the intricate web of America’s economic landscape with our esteemed guest, Doug Henwood. As a prominent economist and writer for outlets like The Nation and Jacobin, Doug brings a critical progressive lens to the disarray of the American ruling class.
In this episode, we explore the alarming short-sightedness of our elites, their complicity in fostering economic inequality, and the historical missteps that have led us to this precarious moment. From the legacy of the Clinton administration to the contemporary challenges of neoliberalism, we dissect the threads of class struggle that weave through our society.
Join us as Doug shares insights on the recent political shifts in New York City, the role of grassroots movements, and the urgent need for a transformative vision that prioritizes the well-being of the many over the profits of the few. It’s a conversation that cuts to the heart of our collective future—one you won’t want to miss!
SUMMARY
Robert Scheer and economist Doug Henwood discuss the deep decay—“the rot”—within America’s ruling class. Henwood argues today’s political and economic elites are short-sighted, unimaginative, and corrupted by money. While Trump is an obvious symptom, Henwood stresses that the Democratic establishment, Ivy League elite, and corporate leaders are equally hollow and ineffective.
Scheer pushes back by noting that the decline didn’t begin with Trump. He points to the Clinton era—especially figures like Lawrence Summers—as central architects of the neoliberal turn that dismantled New Deal regulations, empowered Wall Street, destroyed welfare protections, and fueled decades of inequality. Summers in particular is criticized as cynical, ethically compromised, and deeply connected to financial deregulation and predatory finance.
Henwood agrees: Clinton-era Democrats were not passive—they aggressively advanced neoliberal policies pioneered by Reagan and Thatcher, transforming the Democratic Party into a pro-market, pro-finance machine. This shift was mirrored globally among center-left parties. The result: collapsing wages, financial crises, and widespread political alienation.
Scheer emphasizes that inequality today—especially tech monopolies and billionaire dominance—directly traces back to Clinton’s dismantling of antitrust enforcement and financial rules.
Turning to the present, both discuss the surprising joint appearance of Trump and New York’s incoming socialist mayor, Zohran Mamdani, whose FDR-style agenda focuses on public transit affordability, working-class needs, and reversing decades of austerity imposed since New York’s 1975 fiscal crisis. Henwood notes Trump often uses populist language but enacts policies that harm working people, from Medicaid cuts to deregulation.
Still, Henwood sees Mamdani’s win as potentially marking a break from the decades-long neoliberal order that began with the NYC fiscal crisis and was nationalized by Reagan, Clinton, and their successors.
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