The Radical Middle Podcast Episode 3 - What Creates Real Wealth? Housing, Debt & Productive Growth

In Episode 3 of The Radical Middle Podcast, Thomas McMurtry and Ian Hull explore a question that was central to early political economy: what actually creates wealth in an economy? Drawing on thinkers such as David Ricardo and more contemporary economists like Michael Hudson and Richard Werner, the discussion examines the distinction between productive investment and wealth derived from rising asset prices. The conversation explores whether modern economies have increasingly confused asset appreciation with genuine productive growth. Using Canada as a case study, Thomas and Ian discuss how rising real estate prices, household debt, and mortgage lending may be reshaping the broader economy — influencing business investment, productivity, entrepreneurship, and the cost of living for younger generations. The episode also explores whether alternative banking and lending models, including more decentralized or development-oriented financial institutions, could better support productive investment and small business growth in the future. Please like, subscribe and follow! Inquires: [email protected]   Further Reading: Classical Political Economy * Adam Smith — The Wealth of Nations * David Ricardo — Principles of Political Economy and Taxation * Henry George — Progress and Poverty Modern Banking & Political Economy  * Michael Hudson — Killing the Host * Richard Werner (2014) — Can Banks Individually Create Money Out of Nothing? * Bezemer et al. (2023) — Credit Policy and the "Debt Shift" in Advanced Economies