Funding white supremacy is a core, not incidental, function of the modern capitalist state in the U.S. It is also the title of economist Robert B. Williams’ 2025 book, Funding White Supremacy: Federal Wealth Policies and the Modern Racial Wealth Gap.

Bob and Steve share the fundamental position that capitalism doesn’t just produce inequality by accident, it builds durable ladders for some and trapdoors for others. Wealth, not income, is the key instrument because it is power that reproduces itself across generations.

Bob lays out the major policy mechanism of stealth wealth-building: how the federal government subsidizes asset accumulation through the tax code, especially via “tax expenditures” (deductions, exclusions, preferential treatment) that provide vast benefits to the wealthy.

From an MMT perspective, the conversation underlines a crucial point: the state’s problem is not “finding the money,” it’s choosing who gets the public subsidy. A system that claims scarcity around public goods reliably mobilizes massive policy support for private asset appreciation and wealth compounding. In other words, benefits reward ownership and existing assets, not the people struggling to acquire them.

Bob situates this historically, tracing the origins of the modern income and estate tax era to the early 20th century and argues that any progressive policy history coexisted with, and was intertwined with, overt white supremacist politics.

Robert B. Williams is the Stedman Professor of Economics, Guilford College. Bob has taught economics and political economy for over 40 years. He has written three books, including Funding White Supremacy: Federal Wealth Policies and the Modern Racial Wealth Gap (Cambridge University Press, 2025).