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Welcome friends to another edition of Economic Update, a weekly program devoted to the economic dimensions of our lives. Jobs, debts, income for ourselves and our children. I'm your host, Richard Wolff. I want to begin today by talking to you about a remarkable step taken by the city of Vancouver in British Columbia, Canada. It tells you where Bernie Sanders kind of campaign is headed and shows you that it is already happening elsewhere in our neighbor to the north. The decision in Vancouver was issued by the British Columbia government which has the authority. That government is currently a coalition of two political parties, the left leaning NDP and the British Columbia Green Party. Those two parties together are the governing coalition and here's what they as of very shortly, if they get their way, which they are expected to do, the level of income tax on wealthy people will go up for Those earning over $166,000 a year in US money, their money above that, everything above 166,000, the tax on it will go from 16.8% to 20.5%. That is a significant increase and the purpose has been made very clear. The people of Vancouver are suffering from gentrification, rapidly rising prices of homes, rents for apartments, and the government is pledged to do something to make Vancouver a livable, affordable city for the vast majority of people who are now being priced out. And that's expensive and that will take time. And they have deemed it appropriate to tax those at the top, the ones who benefit most from gentrification, to pay for it. The same government at the same time announced it plans to levy a 7% tax on sugary soda drinks in order to limit the amount of tooth decay suffered particularly by younger but also older people in it is an attempt of that government to begin moving in a different direction from what has been the norm. Taxing the wealthy is coming and it is coming to a theater near you. My next update has to do with a private report that was leaked. It was a report commissioned and paid for by the JP Morgan Chase bank, one of the largest banks in the world. The paper explains whether or not it answers the question whether or not climate change is something that threatens the world. And therefore, if JPMorgan Chase needs to, and I quote, rethink its investments in the fossil fuel industry. And the conclusion of the paper, which I've now looked at, is remarkable. First of all, it answers the question with a resounding yes, climate change is very real. Climate change's economic effects are enormous and it is advisable for JPMorgan Chase basically to get out of financing the fossil fuel industry. That's oil and gas for those of you who aren't cool clear on this subject. So beside one of the largest banks in the world taking a position, for example, diametrically opposed to that of the Trump government. And that by the way, has been done by the largest money managing firm in the world, BlackRock as well. So this is now a trend. But I want to go beyond that because the report says something even more important. It refers to to the whole climate change issue as an example of and again I quote market failure. And here's what they mean that for years now decisions have been made on what is or isn't profitable based on comparing the revenues of an investment with the costs of an investment. And what this report does, which JP Morgan believes in, is to say we were wrong in our capitalist system. That's my words, not theirswe were wrong in our system not to count the costs of environmental damage. Had we added those very real costs, many of the projects we've invested in over the years would not have been invested in because they weren't profitable. The revenues they generated weren't enough to cover the costs if you included the costs of the environmental damage. Good says my economist Hat this is a recognition that markets don't count many of the most important costs of business in our capitalist system. In the second half of today's show we when we interview Tess Fraad Wolff, she will explain and I think you'll find it intriguing that there are psychological costs of workplaces, impacts on workers that they take into their personal lives that really are big costs of capitalism that nobody counts and that therefore the market based on costs not counted is making one wrong decision, one inefficient decision after another. The love of markets, the celebration of markets, as if a market based economy is something to emulate, to celebrate and to praise means you don't understand how markets work and in particular how markets misestimate, ignore and miss the the real costs that go into the decisions made by market criteria. My next update is one that is increasingly in the news, one that many of you have asked me to talk about and it has to do with this perennially embarrassing question here in the United States about the relationship between money and politics. Let me begin with a statistic to talk about one of the relationships between money and politics. There are three I'm going to talk about in toto today. The first one is when money is literally spent by or given to and spent by candidates for office. To give you an idea, I looked at the amount of money spent by major Democratic candidates trying to become the Democratic Party presidential candidate. And the money I looked at is the money spent in the last three months up until, let's say, mid February. Those three months are the three months since Michael Bloomberg entered the race. And the reason I chose that is because his entry marks a major escalation in the flow of money to candidates. So here are the sum totals of of money spent on behalf of candidates in the last three months. Number one, Mr. Bloomberg, $409 million spent in those first three months of his effort. During that same time, the second billionaire running, Tom Steyer, spent $254 million. In third place, Bernie Sanders, who spent $117,000, roughly a quarter of the money spent by Mr. Bloomberg. Elizabeth Warren, 91 million. Peter Buttigieg, 76 million. Joe Biden, 63 million. Michael Bloomberg, 409 million. Joe Biden, 63 million. It's not even close. Vastly different amounts of money. The reason you've heard about Michael Bloomberg and Tom Steyer is not because they have a large political base. They don't have any. But what they do have is money. And if you think money doesn't shape our politics, then think about the fact that you've heard of and will hear of Mr. Bloomberg and Mr. Steyer because they outspend everybody else by enormous amounts. But that's not all. What about the money spent on lobbyists, those people who are paid to be not only in Washington, lobbying the government, pushing whatever the folks who pay them want, but also in every statehouse in every state of this country, and in many mayoral offices, too. If you have the money to hire lobbyists, you get the ears of the politicians. That's how money makes things happen. Nor are we done. Then there's the money spent on countless think tanks, media outlets, schools in which some ideas are promoted over others. You know, it produces a dead, stale conversation when money shapes what positions are heard, what positions are thought about, what positions are written about, what you see on television, and you exclude those who don't have the money to buy their way in. It means you're denied all kinds of perspectives and you're provided with an endless repeat of those favored by the very few who can afford the money. If you're upset with the stale old quality of American politics, thank the way. Money matters in our system. It's a major part of the reason people are disaffected from our political structure. Don't trust it, don't believe in it, and are sure it's terribly lopsided. My final update for today is to in a way congratulate the United States Women's Soccer Federation. They have brought charges of gender discrimination in a suit filed in Los Angeles against the U.S. soccer Federation. The trial on these charges is set to begin on on May 5th. For those of you interested, the women soccer players charge one that they are paid markedly less than their male counterparts, that men's soccer supports more pay for women, even though the federation doesn't do it. The men support the demand of the women for pay parity. And the irony is of all of this that the men's soccer also feels they are being underpaid. In other words, what's emerging here is an alliance between men and women soccer players in which the men ally with the women partly because they believe in the justice of what the women want, but partly because out of a demand for themselves, they don't want to be told, we're not paying you more. You should shut up because look how much better we're paying you than those women. They don't want those women there to be an excuse to be underpaid and then that be used as a lever to keep them from being paid more. They understand, which is why I'm bringing it up, what all of us should understand, that these pay differentials between men and women, between white and black, between educated and uneducated, between older and younger, these are so many mechanisms to enable the employer to play one against the other. To say to the men, you should shut up because the women get paid less than you to say to the women, we give you certain side benefits, time off for your families, therefore you should accept lower wages. These are ploys. They have one goal in to leave more profits for the employer and less for the employees. Don't be fooled. And the women soccer players are taking the lead in refusing to be fooled and underpaid. And as they have suffered for so long, we've come to the end of the first half of today's economic update. I want to thank you and also to remind you, subscribe to our YouTube channel. Follow us on Facebook, Twitter and Instagram. Be sure to visit democracyatwork.info that's our website to learn more about other democracy at work shows, our union co op store and our two books, Understanding Socialism and Understanding Marxism, which you can order from the website. And lastly, a special thanks to our Patreon community whose invaluable support helps make this show possible. We'll be right back with our special guest, psychotherapist Tess Fraad Wolff. Welcome back, friends, to the Second half of Economic Update for today. I am very pleased to bring to the microphone and to the camera a guest who's a specialist in psychology. It's Tess Fraad Wolf. She is a psychotherapist practicing in New York City. She's worked with both individuals and couples for nearly a decade now. And she has also trained in art therapy and in hypnotherapy. So thank you very much, Tess, for joining. Thank you. Okay, I want to jump right into it. This is a show that talks about economics a lot, but today's program has you here because I want to explore with you the link between how we experience the economy, particularly in our jobs, where we work on the one hand, and how it shapes our psychology, and a little bit on the back and forth, how the economy shapes our psychology and vice versa. So let me begin by asking you to kind of look back into your practice and what you've learned. How is it possible that you're experiencing on the job where you work in an office, a store or a factory could lead you to be what we call depressed? Is depression something that goes with work? Sometimes, always, never. How has the job shaped depression in your experience?
