Economic Update with Richard D. Wolff

Episode: Best Years of US Lie in its Past
Air Date: July 29, 2021
Host: Richard D. Wolff
Guest: Prof. August H. Nimtz, Jr.

Episode Overview

This episode explores the theme that the economic "best years" of the United States are behind it. Host Richard D. Wolff critically examines current economic conditions, corporate behavior, and tax policy before welcoming political scientist August H. Nimtz, Jr. for a discussion on Marxism, US decline, class consciousness, the pandemic, and the persistence of white supremacy. The conversation aims to help listeners understand systemic roots of today’s economic and social challenges, and why a Marxist lens remains crucial for social change.

Key Discussion Points & Insights

1. Corporate Profits, Inflation, and Wages (00:10–11:30)

• Chipotle & Inflation:

  • Chipotle has raised prices multiple times in 2021, citing increased worker wages as the cause, but Wolff argues this is mainly a "ploy" to mask profit motives.
  • Wolff notes the distinction between "average wage" and "minimum wage," emphasizing that Chipotle’s $15/hour promise is not as progressive as it appears.

• Corporate Narratives on Costs:

  • Corporations often blame price increases on wage hikes, but without transparent accounting, the real motive (boosting profits and executive pay) is obscured.
  • Example: Chipotle CEO Brian Niccol made $38 million in 2020. Wolff questions the equity of this payout compared to frontline workers.

• Notable Quote:

  "Blaming the workers, those at the bottom of the economic pyramid, is a cheap ploy. You can never verify it unless you know what's going on inside."
  — Richard D. Wolff [06:34]

2. Worker Worth, Markets, and Social Value (11:30–15:54)

• Critique of Arthur Laffer:

  • Laffer claimed many Americans, especially minorities and poor people, "aren’t worth" $15/hr due to technology.
  • Wolff criticizes this logic, arguing ‘worth’ is set by employer profit motives, not societal value.

• Social Costs of Cheap Labor:

  • If low-paid workers are left unemployed, society bears greater costs in health, welfare, and social unrest than simply raising pay.

• Market Failures:

  • Wolff argues markets do not determine human worth—society does, and reliance on markets for such judgments is dehumanizing.

• Notable Quote:

  "We are not to be shaped by the market. The market is a human institution that has to serve us."
  — Richard D. Wolff [14:15]

3. Corporate Taxes and Political Resistance (11:30–15:54)

• Trump-Era Tax Cuts:

  • Trump’s 2017 corporate tax cut (from 35% to 21%) failed to deliver sustained prosperity. The economy crashed before COVID-19 hit.

• Myth-Busting:

  • Wolff asserts that tax cuts don’t drive long-term growth, nor do tax increases automatically cause economic disaster.

• Minimum Global Tax Proposal:

  • The Biden administration’s push for a 15% global minimum corporate tax is facing opposition from Republicans and conservative Democrats, whom Wolff accuses of serving elite interests.

• Notable Quote:

  "Cutting taxes doesn’t give you what the people who push it claim. And raising taxes doesn’t cause the disasters that those same people claim."
  — Richard D. Wolff [13:58]

4. Interview with Prof. August H. Nimtz, Jr. (15:54–28:11)

Marxism’s Relevance Now (16:04–17:36)

• Crisis of Capitalism:

  • Nimtz contends that the crisis of capitalism—political and economic—is central to understanding phenomena like Trump.

• Notable Quote:

  "You can’t make sense of the Trump moment without understanding the crisis of capitalism."
  — August H. Nimtz, Jr. [16:53]

US Capitalism in Decline (17:36–19:00)

• Anemic Growth:

  • Nimtz points to declining growth rates and waning opportunities for working people, stressing "the best that capitalism has to offer... that's behind us."

• Generational Perspective:

  • Today’s youth face far slimmer prospects than previous generations.

• Notable Quote:

  "The best that capitalism has to offer the working class, that’s behind us. That’s a very sobering reality."
  — August H. Nimtz, Jr. [17:53]

Polarization and the Crisis of the System (19:14–20:49)

• Polarization Linked to Economic Stagnation:

  • Economic "shrinking pie" fuels tribalism, polarization, and division.
  • Trump and Trumpism are seen as manifestations of this broader systemic crisis.

• Notable Quote:

  "The phenomenon... polarization within US Politics can be traced... to the crisis of capitalism. And Trump was a product of that."
  — August H. Nimtz, Jr. [19:52]

Working Class Consciousness in Academia (20:10–22:31)

• Class Identity Taboo:

  • Nimtz and Wolff discuss how academia is uncomfortable with the term "working class," even though most faculty qualify.

• Student Openness:

  • Undergraduates are more receptive to class analysis than graduate students or faculty.

• Notable Quote:

  "Anybody who has to sell his or her labor to survive, welcome to the working class."
  — August H. Nimtz, Jr. [21:50]

COVID-19 as a Crisis of Capitalism (22:32–25:33)

• Disproportionate US Deaths:

  • US pandemic failures are symptomatic of underlying systemic issues—especially prioritization of private profit over collective wellbeing.

• Structural Unpreparedness:

  • Years of public health cutbacks set the stage for catastrophe.

• Capitalist Values an Obstacle:

  • The "dog-eat-dog values" of capitalism are in tension with the collective effort needed in a pandemic.

• Notable Quote:

  "An economic system based upon private ownership of the means of production... would be incapable of dealing with a collective problem."
  — August H. Nimtz, Jr. [23:30]

White Supremacy: Past and Present (25:33–27:57)

• Historical Context:

  • Nimtz recounts personal experiences from the Jim Crow South, arguing that present-day white supremacy, though real, is less entrenched due to multiracial protest movements.

• Progress Noted:

  • George Floyd protests were racially diverse, unlike previous decades, signifying opportunities for uniting across racial divisions.

• Notable Quote:

  "If white supremacy was triumphant, you wouldn’t have these multiracial demonstrations."
  — August H. Nimtz, Jr. [27:42]

Memorable Moments & Quotes

• On Corporate Narratives (06:34):
  "Blaming the workers, those at the bottom of the economic pyramid, is a cheap ploy." — Richard D. Wolff

• On Market Value (14:15):
  "We are not to be shaped by the market... The market is a human institution that has to serve us." — Richard D. Wolff

• On the Declining Future (17:53):
  "The best that capitalism has to offer the working class, that's behind us. That's a sobering reality." — August H. Nimtz, Jr.

• On Race and Protest (27:42):
  "If white supremacy was triumphant, you wouldn't have these multiracial demonstrations." — August H. Nimtz, Jr.

Key Timestamps

• 00:10 – 07:00: Richard Wolff’s commentary on Chipotle, inflation, and CEO pay
• 07:00 – 11:30: Critique of Arthur Laffer and the ‘worth’ of labor
• 11:30 – 15:54: Discussion of Trump-era tax cuts and global minimum corporate tax proposal
• 15:54 – 28:11: Interview with August H. Nimtz, Jr.
  • 16:34 – 17:36: Marxism as a lens to understand US decline
  • 17:36 – 19:14: US capitalism in secular decline
  • 19:14 – 20:49: Polarization and crisis of capitalism
  • 20:49 – 22:31: Class consciousness in the academy
  • 22:32 – 25:33: COVID-19 as systemic failure
  • 25:33 – 27:57: Historical and current perspectives on white supremacy

Tone & Style

• The episode is critical, incisive, and accessible. Wolff uses wit, examples from everyday economics, and sharp critiques of political orthodoxy. Nimtz’s scholarly insights are paired with personal experience and a call for deeper collective analysis, keeping the conversation both rigorous and direct.

For Listeners

This episode is particularly valuable for anyone seeking to understand the long-term trends shaping American economic and social decline, through a critical analysis of capitalism, class, and race, and who wishes to hear nuanced perspectives from two seasoned Marxist scholars.