Steve Bannon’s Thursday WarRoom discussion with Phillip Patrick about the collapse of the French government offers a fascinating lens into the broader economic issues facing global powers. Drawing from the events in France, Bannon ties the crisis to Thomas Piketty’s Capital themes, offering a stark warning for the United States.

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Capital in the Twenty-First Century

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“Yesterday, The French Government Collapsed”

Bannon opened the discussion by highlighting the no-confidence vote that ousted France’s Prime Minister. He pointed out the rare unity between the far-right and left in this move.
"Here’s the lesson, boys and girls,” Bannon said. "The French far-right and left unite in vote to oust the Prime Minister. Why? It’s simple. The system is unsustainable.”

Bannon described the French situation as emblematic of a larger global problem: mounting deficits and unsustainable economic models. He compared France’s predicament to the challenges the U.S. faces with massive spending and slow economic growth.

The Economic Crisis: A Piketty Connection

Bannon linked the collapse in France to Piketty’s analysis in Capital, a book he described as “dense but essential reading.” He highlighted the irony of Piketty’s ideas, rooted in French economic thought, influencing policies that contributed to the government’s fall.

“Isn’t it ironic,” Bannon remarked, “that Piketty’s own country suffers from the very policies he championed? It’s a warning for us here in the U.S.”

He noted that France’s reliance on Modern Monetary Theory (MMT)—the idea that governments can finance deficits by printing money without immediate consequences—was a major factor.

The Dangers of Modern Monetary Theory

Bannon argued that MMT, while tempting, has significant pitfalls. He explained that excessive deficit spending under MMT erodes investor confidence, leading to financial instability. "France shows us the limitations of this approach,” Bannon said. "Debt might not matter to governments, but it does to investors. And they’re speaking loud and clear.”

He warned that the U.S. could face similar issues if leaders continue down this path. "We’re adding a trillion dollars in debt every 100 days,” Bannon said. "The model’s unsustainable. Without serious reforms, we’ll find ourselves in a situation like France’s.”

A Call to Action for the U.S.

Bannon emphasized the need for the U.S. to learn from France’s mistakes. He proposed focusing on reducing deficits, reforming tax policies, and controlling spending. "We need to act before it’s too late,” he said.

Patrick echoed these sentiments, urging Americans to educate themselves on economic issues. He praised Bannon’s efforts to raise awareness, saying, "This is about empowering people to understand the stakes.”

Why Capital Still Matters

Bannon’s reference to Capital wasn’t just a critique. He acknowledged its importance in understanding wealth inequality and economic dynamics. "It’s dense, sure, but it’s essential reading,” Bannon said. "If we’re going to fix these issues, we need to understand how we got here.”

Conclusion: A Warning and a Path Forward

Bannon and Patrick used the French crisis as a cautionary tale for the U.S., blending economic theory with real-world events. Their message was clear: without reforms, the U.S. risks a similar collapse. As Bannon put it, "The time to act is now, or we’ll be the next headline.”