Economic Update with Richard D. Wolff

Episode: "A Socialist Politician Wins"

Date: July 25, 2019
Guest: Lee Carter, Virginia House of Delegates, District 50

Overview: Episode Theme and Purpose

This episode of Economic Update centers on the economic and political realities facing working people in the United States, highlighting how entrenched inequality and corporate interests shape policy and daily life. The main feature is an in-depth interview with Lee Carter, an openly socialist legislator from Virginia, whose recent victory against a primary challenge serves as a case study for the viability and impact of openly socialist politics in America. The discussion explores Carter’s legislative experiences, challenges from both major parties, and the grassroots organizing necessary to enact meaningful change from within the system.

Key Discussion Points & Insights

1. Stark Inequality in Education Funding

• [00:28] Wolff highlights a Harper’s Magazine statistic:
  “The difference is $2,226 per year” between what is spent on white vs. non-white students’ education in U.S. schools.
• Systemic underfunding of schools serving predominantly non-white students is presented as a root cause of persistent socioeconomic inequality.
  • “There is no justification for it.”
  • These disparities produce the very differences in income and opportunity that the U.S. claims to want to solve.

2. Profit Motive in the Food and Health Industries

• [02:55] Wolff discusses a Consumer Reports study on trends in fast food:
  • From 1986 to 2017, calories, sodium, and portion sizes in fast food have sharply risen.
    • Desserts: 392 → 572 calories (+46%)
    • Entrees: 430 → 480 calories (+12%)
    • Sides: 238 → 287 calories (+21%)
• The health rhetoric of government and industry is undermined by profit-driven product changes.
  • “Profit is what drives the definition of a fast food meal, not health.” [03:59]
  • Emergence of a two-class food system: those who can afford organic vs. the rest.

3. Worker Morality vs. Corporate Morality – Wayfair Protest

• [06:02] Wolff commends Wayfair workers protesting the sale of furniture to immigrant detention centers.
  • Workers argue for moral input over the ends of their labor:
    • “They actually want their morality to be part of the decision about what their work life amounts to.” [06:52]
• Raises the notion that workers, not just managers or owners, should decide how products of their labor are used.

4. U.S. Responsibility in Migration Crisis

• [08:03] Wolff critiques Trump Administration rhetoric about immigrant deaths.
  • Rebuts the blame placed on desperate parents, contextualizes ‘push’ factors — U.S. involvement in foreign economies, climate change, and war, driving migration.
    • “The push factor is always bigger than the pull factor…The United States has real responsibility.” [09:52]
  • Highlights the contradiction between U.S. symbolism of the “huddled masses” and current policy.

5. The 2017 Trump Tax Cut: Reality vs. Promise

• [12:08] Wolff debunks the promise that the corporate tax cut would benefit workers:
  • AT&T, the flagship corporation promoting the tax cut, eliminated 23,328 jobs afterward.
    • “The big tax cut reduced the jobs.”
  • Only 4.3% of workers saw any wage increase or one-time bonus; corporations spent far more on stock buybacks benefitting the wealthy.
    • “10% of the shareholders in America own 84% of the shares.” [13:56]

Interview with Lee Carter: The Experience of Being a Socialist Legislator

[15:49]

Carter's Unique Position in Virginia’s Legislature

• Carter is the only openly socialist member of the Virginia General Assembly, in a narrowly Republican-controlled chamber (51-49).
  • “Every Republican looks at a bill with Lee Carter's name at the top as an automatic no. And every Democrat...as a maybe so.” [16:51]
• Must devote energy convincing Democrats that more ambitious change is feasible, rather than merely accepting compromise.
  • Sees sporadic but meaningful progress:
    “It's a bit of a tough sell, but it happens in fits and spurts.” [17:28]

Shifting the Overton Window: From Medicaid Expansion to Single-Payer

• Carter’s advocacy for single-payer health care catalyzed movement even among opponents:
  • “At a time when the rest of the Virginia Democratic Party was talking about maybe we can expand Medicaid, I go in there and I start talking about single payer healthcare. And what do you know, the Republicans go, whoa, we should probably expand Medicaid....now there's 300,000 Virginians who have health insurance today that did not have it two years ago.” [18:07–19:03]
  • Keeps the long-term vision alive while pursuing incremental gains.

Media’s “Socialist” Framing & Coverage Challenges

• Media invariably labels Carter as “the socialist delegate”—coverage is minimal in a large DC media market.
  • “My local newspaper is the Washington Post, Virginia Section, which is owned by Jeff Bezos, who is not exactly a fan….” [20:08]
  • Difficult to be heard among more conventional politicians.

Modeling What’s Possible: Inspiration Beyond Virginia

• Carter’s electoral victories prove to others that running (and winning) as an open socialist is realistic:
  • “The single biggest hurdle is people that say, oh, I would love to, but it's just not possible. And so by going out there and demonstrating that, yes, it is possible to win on this message, win on this message everywhere, then that's what inspires people to step forward and do it in other places.” [21:09]
• Advocates worker-owned and operated businesses to put economic power in the hands of those affected by decisions.
  • “They're never going to outsource their own jobs to another country because it's cheaper for the investors. They're never going to disregard the environmental consequences of what they do…” [22:14]

Building a Coalition for Real Change

• Carter emphasizes coalition-building: reaching out to organized labor, women’s health advocates, environmentalists to form intersectional campaigns.
  • “A lot of those folks have had the idea, the very concept of thinking big beaten out of them for 40 or 50 years, and it's about … you can win on these things because these are things that are broadly popular.” [23:37–24:47]
• Grassroots door-to-door organizing is the key to re-engaging an alienated electorate:
  • “There’s people by the tens of millions out there who have checked out of the political process entirely because they just don’t feel like anything’s going to change. And you have to be able to deliver that to them. And you have to do it frankly, where they are, on their front doorstep.” [25:15]

Navigating the Reality of Lawmaking: Pushing Against the Status Quo

• Legislative spaces are heavily shielded from constituents’ daily realities, dominated by lobbyists and establishment thinking.
  • “There’s this anti-reality force field…our state legislatures are so far removed from the people that they’re supposed to serve.” [26:26]
  • Carter insists on bringing the perspective of working people into these environments:
    • “More jobs is not gonna solve the problem of housing affordability…You need one job that's gonna pay the bills.” [27:05]
  • Recognizes the slow nature of systemic change, but affirms its possibility:
    • “It’s slow work, it’s painfully slow work, but it’s happening.” [27:31]

Notable Quotes & Memorable Moments

• Wolff on fast food industry:
  “Profit is what drives the definition of a fast food meal, not health.” [03:59]

• Wolff on workplace morality:
  “They actually want their morality to be part of the decision about what their work life amounts to.” [06:52]

• Carter on legislative obstruction:
  “Every Republican looks at a bill with Lee Carter’s name at the top as an automatic no. And every Democrat…as a maybe so.” [16:51]

• Carter on Medicaid expansion:
  "What do you know, the Republicans go, whoa, we should probably expand Medicaid...now there's 300,000 Virginians who have health insurance today that did not have it two years ago.” [19:03]

• Carter on people’s skepticism:
  “The single biggest hurdle is people that say, oh, I would love to, but it's just not possible. And so by going out there and demonstrating that, yes, it is possible to win on this message...that's what inspires people to step forward and do it in other places.” [21:09]

• Carter on coalition building:
  “It’s piecing together those groups of activists and getting them fired up that enables you to spread the word out to the massive working folks.” [25:09]

• Carter on breaking the legislative bubble:
  “There’s this anti-reality force field…our state legislatures are so far removed from the people that they’re supposed to serve.” [26:26]

Key Timestamps for Important Segments

• [00:28] – Racial class disparities in education funding
• [02:55] – Profit vs. health in fast food industry
• [06:02] – Wayfair worker protest and labor’s moral voice
• [08:03] – U.S. roots of the border crisis and media narrative
• [12:08] – Misleading promises and effects of 2017 tax cuts
• [15:49] – Lee Carter interview begins
• [16:51] – Navigating the legislative process as an open socialist
• [18:06] – Single-payer advocacy and impact on Medicaid
• [20:08] – Media coverage and socialist framing
• [21:09] – Modeling possibility: inspiring other socialists
• [23:37] – Coalition building, organizing, and strategies for success
• [26:26] – The remoteness of legislatures and breaking the “anti-reality force field”
• [27:31] – Slow but real progress for democratic socialism

Conclusion

This episode compellingly demonstrates that bold, principled challenges to the status quo—from within legislatures and at the grassroots—can yield both symbolic and substantive victories in America’s political landscape. Lee Carter’s experiences illustrate the power of persistent organizing and the importance of broad coalitions. Richard Wolff’s opening analysis reinforces the urgency of systemic economic change and worker empowerment. Ultimately, the episode offers not just critique, but palpable hope and a practical model for those seeking to effect change in their communities.