Faculty of Arts and Broadbent Institute welcomes economist Dr. Isabella Weber as 2024 Ellen Meiksins Wood Recipient
As our political, social, environmental and economic landscapes have altered in response to global crises such as the COVID-19 pandemic, the different “solutions” to problems such as inflation become a point of contention in economics rather than an opportunity to strategize toward collective ends. And often, economic jargon is lost to the average citizen—that is, to the people most dependent on its policies.
Dr. Isabella Weber (left) and Jen Hassum, executive director of Broadbent Institute (right).
Photo credits: Jack McClelland, Broadbent Institute.
At this seemingly insurmountable impasse is the work of Dr. Isabella Weber (external link) , a German-born economist whose extensive research on economic shock and inflation is actively shaping the economic policies of Germany, the United States, and soon Canada. Dr. Weber was named the 2024 recipient of the prestigious Ellen Meiksins Wood Prize (external link) for her significant research on economic shocks and inflation. Presented by the Broadbent Institute (external link) , Canada’s leading progressive social democratic organization, the Ellen Meiksins Wood Prize is given annually to an academic, labour activist or writer who has made “outstanding contributions in political theory, social or economic history, human rights, or sociology.” As a committed partner to the Broadbent Institute, the School of Public Policy and Democratic Innovation, housed in the Faculty of Arts, was delighted to host the annual Ellen Meiksins Wood Lecture for the second year on May 30, 2024, delivered by Dr. Weber.
In honour of the legacy of Ellen Meiksins Wood, “one of the left's foremost theorists on democracy and history” who championed the belief that “democracy always has to be fought for and secured from below, never benevolently conferred from above,” the Broadbent Institute recognizes intellectuals who are actively shaping political thought and bringing about historical change. The scholarly work of Dr. Weber contributes immensely to the field of economics and puts into perspective the tangible effects of economic policies. Dr. Weber’s timely research identifies how corporations’ attempt to protect and expand their profit margins translates into reduced buying power and economic vulnerability for the working and middle class.
Starting the event, the Executive Director of the Broadbent Institute, Jen Hassum, welcomed the Interim Dean of Arts, Dr. Amy Peng. Dr. Peng honoured Ellen Meiksins Wood and introduced Dr. Weber as a critical theorist whose work provides Canadian progressives with alternatives that resist anti-democratic policy and empower today’s workers.
During Dr. Weber’s lecture, her energizing presence and sharp ability to simplify complex economic theory with relatable analogies created an enriching discussion. Dr. Weber’s lecture explored competing economic theories on inflation, market dependence, the weaponization of basic essentials, post-pandemic price increases, contentions surrounding wage increases and the systemic problems of overlapping crises. Dr. Weber emphasized that from these inflation debates, the most critical element is knowing that the past cannot be changed, but we can learn from them moving forward.
Dr. Isabella Weber delivering the 2024 Ellen Meiksins Wood Lecture hosted by the Faculty of Arts.
Photo credits: Jack McClelland, Broadbent Institute.
Dr. Weber explained that the threshold between stability and instability is crossed when a series of shocks to essential sectors occur and are subsequently “turned into generalized inflation” through what is called “seller’s inflation” (43:35-43:41). In this model, corporations do not absorb costs, but rather, respond to shocks “by pricing to protect their profit margins”—essentially, making the consumer absorb the shocks by increasing prices (43:47-43:53). Firms gain and strategically maintain temporary monopoly power through coordinated price hikes. With reduced consumer purchasing power, workers demand wage increases to regain better living standards; however, Dr. Weber points out that “the wage catchup here is a result of…and not the origin of inflation” (44:10-44:22 emphasis added).
Dr. Weber’s explanation of the 3 Stage Inflation Process is reminiscent of the spike in food prices at Canadian grocery stores. An all-too-familiar problem that has been on the rise since the pandemic, price shocks have only created further barriers to access and extreme food insecurity worldwide.
“There is no hope for “resilience” when the firms that control essentials reap record profits from disasters."
Consumers’ constant bombardment with news about supply shortages exacerbates their exploited understanding of inflation, especially in a time of crisis. Dr. Weber argues that these stories add “legitimacy” to the price spikes consumers see (52:09-52:16). However, the difference between supply and retail costs is often disproportionate. Where bringing in competition might have been a solution in the past, Dr. Weber explains, “in our times of overlapping emergencies,” it ultimately fails to control prices (57:51-57:57).