Economic Update with Richard D. Wolff

Episode: Capitalism in Denial
Date: September 12, 2019

Overview

In this episode, economist Richard D. Wolff critically examines the phenomenon of "denial" among capitalist societies facing economic decline, focusing on developments in the United Kingdom and the United States. Wolff highlights the systemic roots of crises, discusses scapegoating tactics (blaming immigrants and foreigners), and explores the political economy of immigration and the situation in Latin America—especially Venezuela. Throughout, he emphasizes how refusing to confront the failures of capitalism leads societies to repeat historical mistakes with tragic consequences.

Key Discussion Points and Insights

1. The UK and US: Parallel Crises and Denial

[00:10–13:40]

• UK's Austerity and Brexit:

  • Britain’s response to the 2008 financial crash was harsh austerity after bailing out banks and corporations.
  • Services were cut and wages fell more sharply than elsewhere; public dissatisfaction mounted.
  • The ruling Conservative Party deflected systemic critique by blaming the European Union, culminating in the Brexit vote.
  • Wolff characterizes this as “a real program of denial”: “Blaming immigrants, how popular these days, and Europeans, how nice to blame foreigners.” (Wolff, 04:00)
  • The result has been increasing economic turmoil and growing national malaise.

• US Economic Realities and Political Deflection:

  • The US faces similar problems: after a decade since the last recession (2009–2010), another downturn is imminent.
  • Wolff calls recurring crises “the same truth... Every four to seven years, this capitalism has an economic meltdown.” (Wolff, 06:00)
  • President Trump, seeking re-election, repeatedly touts a booming economy while preparing to blame immigrants, China, and the Federal Reserve for impending troubles.
  • Trump’s interests align with sustaining the status quo, “protect[ing] what puts you in office and what keeps you in office,” avoiding blame for the system itself. (Wolff, 11:40)
  • Both leaders’ denial and scapegoating mean “the decline is only getting worse, and the British people, deep in their souls, know it... or they're going to go down with it.” (Wolff, 04:50)

2. The Political Economy of Immigration

[15:10–24:30]

• Why Immigration Really Happens:

  • Wolff argues: “Immigration happens... because employers want it. They are recruiting... to bring workers here. Why? It's profitable.” (Wolff, 17:00)
  • Immigrants are often attracted for their willingness to work for lower wages.

• Both Political Parties Serve Capital:

  • Democrats idealize immigration in humanitarian terms, invoking the Statue of Liberty’s welcoming message, but thereby assist capitalists seeking cheap labor.
  • Republicans turn “native workers against the immigrants,” blaming newcomers for job and cultural disruption rather than confronting the employer’s motives. (Wolff, 19:00)
  • Both parties distract from systemic issues; meanwhile, “the employers are laughing all the way to the bank.” (Wolff, 20:40)

• Ultimate Logic of Capital:

  • If anti-immigration sentiment prevails, employers move production overseas or automate jobs: “It makes as much sense beating them up as if you ran into the factory and beat up the machine that replaced you.” (Wolff, 22:30)
  • The real problem, Wolff insists, is the capitalist system—“not poor immigrants.”

• A Democratic Alternative:

  • Everyone who wants a job should have the right to one, with society matching “individual interests and passions... with what is needed in society.” (Wolff, 23:40)
  • This would enable rational, democratic decision-making on immigration.

3. Latin America and the Meaning of Venezuela

[24:40–34:50]

• Longstanding Patterns of Inequality:

  • Latin America’s economies, Wolff argues, have been capitalist for centuries, marked by “a small minority of very rich people... and a vast majority of extraordinarily poor people.” (Wolff, 26:20)
  • Extreme poverty and slums ("favelas" in Brazil) are the norm across the region.

• Cycles of Revolution:

  • Chronic inequality occasionally gives rise to revolutions (e.g., Guatemala 1954, Cuba 1959), often opposed by the US, which has long acted as a regional hegemon (the Monroe Doctrine).
  • Venezuela and Cuba stand out as rare exceptions challenging capitalist norms; both faced (or continue to face) US efforts at regime change.

• Nuanced View on Socialist Experiments:

  • Wolff acknowledges the flaws and mistakes of Cuban and Venezuelan governments: “Have they done things we wouldn’t want them to do... You betcha. They are not perfect.” (Wolff, 32:40)
  • But he stresses that it’s unfair to expect these states to resolve centuries of entrenched capitalism overnight or without error.

• Root Problem:

  • The real cause of instability, poverty, and migration is the capitalist system itself, imported and perpetuated by elites: “The big problem... is not Cuba and not Venezuela... It's the capitalist system that has produced and reproduced their poverty, their misery, their inequality.” (Wolff, 33:50)
  • So long as these root issues go unaddressed, the region is doomed to more turmoil and mass migration.

Notable Quotes & Memorable Moments

• “Blaming immigrants, how popular these days, and Europeans, how nice to blame foreigners. Notice, immigrants and foreigners are the problem, and you rail against them... and you imagine that this is gonna solve the problem of a declining capitalism.” — Richard D. Wolff (04:00)
• “Every four to seven years, this capitalism has an economic meltdown... the words are endless because the repetition is endless.” — Richard D. Wolff (06:00)
• “You can do whatever you want as long as you protect what puts you in office and what keeps you in office. That's the harsh reality.” — Richard D. Wolff (11:40)
• “Immigration happens... because employers want it. They are recruiting... to bring workers here. Why? It's profitable.” — Richard D. Wolff (17:00)
• “While all this bickering... goes on, the employers are laughing all the way to the bank.” — Richard D. Wolff (20:40)
• “It makes as much sense beating [immigrants] up as if you ran into the factory and beat up the machine that replaced you. Grow up is the answer we need in the face of a system... designed for profit and not for the needs of people.” — Richard D. Wolff (22:30)
• "If you ask me what you are entitled to do, what should we do about immigration? Here's a simple two-part: Every person who wants a job in the United States ought to be given the right to have one." — Richard D. Wolff (23:40)
• “The big problem facing Latin America is not Cuba and not Venezuela... It's the capitalist system that has produced... their poverty, misery, inequality.” — Richard D. Wolff (33:50)

Important Timestamps

• 00:10 — Introduction; parallels between UK and US crises
• 03:30 — UK austerity post-2008 and scapegoating via Brexit
• 06:00 — Recurring capitalist recessions in the US
• 08:40 — Trump’s tactics: blaming immigrants, foreigners, and the Federal Reserve
• 11:40 — Leaders’ allegiance to the system and denial
• 15:10 — Beginning of second half; preview of immigration and Latin America topics
• 17:00 — The true economic logic behind immigration
• 19:30 — How Democrats and Republicans serve capital (immigration narrative)
• 22:30 — Employer strategies: offshoring, automation, and scapegoating
• 23:40 — Vision for a democratic economic alternative
• 24:40 — Introduction to Latin American economic history
• 26:20 — Inequality and poverty as capitalist legacies in Latin America
• 30:00 — Overview of periodic revolutions and US interventions
• 32:40 — Admitting the flaws but contextualizing Cuba and Venezuela
• 33:50 — Core message: Latin America’s problem is the capitalist system

Tone and Takeaways

Richard D. Wolff maintains a direct, critical, and sometimes wryly humorous tone as he challenges dominant narratives about economic crises, immigration, and Latin American politics. The throughline is a call to confront the deep-rooted systemic failures of capitalism, both at home and abroad, warning that denial and scapegoating only forestall reckoning—and that radical, democratic change is overdue for the benefit of all.

For listeners seeking structural analysis, critical engagement with mainstream accounts, and clear explanations of complex economic and political phenomena, this episode provides both context and a call to action.