Podcast Summary: Economic Update with Richard D. Wolff

Episode: Capitalism's Anxiety About the State
Date: October 1, 2020
Host: Richard D. Wolff (Democracy at Work)

Episode Overview

In this episode, economist Richard D. Wolff explores the complex and often tense relationship between capitalism and the state. He addresses how universal suffrage challenges capitalist power, methods capitalists employ to maintain their dominance over governmental policy, and the real-world impact of these economic and political dynamics, especially during crises like the COVID-19 pandemic. Wolff analyzes labor, race, and class inequalities, critiques both policy failures and corporate leadership, and argues for alternative economic structures that empower the majority.

Key Discussion Points & Insights

1. Healthcare Workers & Capitalist Hierarchies (00:10–04:40)

• Wolff opens with a shocking story from NYC hospitals: administrative managers were forbidden from wearing masks, even while distributing PPE to doctors and nurses.
  • Quote: “They were also told by the hierarchy of the Health and Hospitals Corporation that they were prohibited from wearing the masks ... at least one woman worker ... has now died of COVID that she contracted, perhaps probably because she wasn’t allowed to wear a mask.” — Richard D. Wolff [01:20]
• Wolff connects this to hierarchical structures in capitalism that value some lives over others, even in public institutions:
  • Quote: “We’re not going through this crisis of virus together, are we? We have a capitalist ranking system ... that rank orders who gets the equipment and who doesn’t, who lives and who dies.” [02:35]

2. Dr. Fauci, COVID-19, and Systemic Racism (04:40–10:00)

• Discusses Dr. Anthony Fauci’s address on September 22, 2020, at the Bloomberg Equality Summit, emphasizing the disproportionate toll COVID-19 takes on people of color, who occupy most essential, underpaid, and high-risk jobs.
• Highlights systemic racism:
  • Quote: “Everything Black Lives Matter was about — systemic racism — is baked into the way this country works. Dr. Fauci, talking about COVID, explains what systematic racism means.” [09:40]

3. Comparing U.S. and European Pandemic Job Responses (10:00–19:00)

• The U.S. saw unemployment skyrocket to 17–18%, while countries like Italy and Germany kept unemployment low via government intervention.
• European governments subsidized payrolls on the condition that workers keep their jobs, thus reducing anxiety and precarity. The U.S. opted for limited, temporary unemployment benefits.
  • Quote: “In Europe, the decision was everybody keeps their job ... the government comes in and picks up 60, 70, 80, 90% of your normal pay ... you will not have the anxiety that there’s no job for you.” [13:00]
• Wolff calls out U.S. politicians:
  • Quote: “Where is Mr. Biden on a mass public employment program? Where is he?” [15:30]
• Discusses further consequences, such as underfunding Social Security due to lost payroll contributions.

4. Worker Power & Political Will (19:00–22:00)

• Wolff argues that European governments didn’t dare inflict mass unemployment on workers, knowing that mass protests and general strikes would follow.
  • Quote: “If they had dared to do to their working class what the American business community and the American government did ... they would have gone right out into the streets and those economic systems would have come to a complete halt.” [19:30]
• In contrast, U.S. workers lack such organized power.

5. Diversity Excuses at Wells Fargo (22:00–25:40)

• Criticizes Wells Fargo CEO Charles Scharf for blaming lack of diversity in executive ranks on a supposed “shortage of qualified minority candidates.”
  • Quote: “Black, brown and women — that’s not a minority. That’s the majority, the overwhelming majority ... For 300 years ... White men got the jobs and other people didn’t. It was affirmative for them and exclusionary for everybody else.” [23:50]
  • Quote: “You’re not ‘not diverse’ because there aren’t qualified people. You’re too busy doing the things you ought to be ashamed of.” [25:00]

6. Capitalism and Its Anxiety About the State (Second Half: 26:10–~50:00)

A. The Problem of Universal Suffrage (27:00–30:40)

• Capitalism is threatened by the majority having the vote since the majority (employees/workers) have different interests from capitalists (the employer minority).
  • Quote: “When you have elections with universal suffrage, the employees should dominate ... That’s a danger for capitalism.” [28:30]

B. What a Worker-Controlled State Could Do (30:40–35:30)

• The majority could use political power to:
  • Redistribute wealth through taxes,
  • Support worker co-operatives,
  • Establish automatic, direct government employment during downturns,
  • Allow state-run enterprises to compete with private business (in food, utilities, health care).
• Quote: “We could do all those things by simply using universal suffrage. But you know who understands that best? The capitalists.” [34:00]

C. How Capitalists Control the State (35:30–44:00)

• Tactics for maintaining dominance:
  • Laissez-Faire Ideology: Promotes the idea that government intervention is inefficient (which Wolff refutes as ahistorical).
    • Quote: “There is no evidence for this. This is a believe-it-on-faith kind of argument ... This is pure ideological pap.” [37:00]
  • Permanent Government Budget Crisis: Starves government of funds, forces borrowing from the wealthy, and creates dependence.
  • Anti-Government Rhetoric: Paints government as a greater threat than capitalists—especially popular among libertarians.
  • Buying Politics: Capitalists fund political parties, buy politicians, and employ lobbyists.

D. Government as Scapegoat (44:00–48:00)

• The public reflexively blames government for hardships caused by private capitalists.
  • Quote: “Millions lost their homes ... Banks did. And private lending companies. You know who threw you out of your home? A capitalist threw you out ... But who’d you get angry at? The government.” [45:00]
• Critiques libertarianism for serving capitalist interests by deflecting blame from business.

E. The Big Picture: Government Could Be Transformative (48:00–end)

• Government is hobbled and underfunded due to capitalist pressure, demonstrated by the U.S. response to COVID-19.
  • Quote: “The irony is the government is the greatest threat to capitalism, and they know it. Which is why they’ve spent so much ... to control, to limit what the government can do. Don’t be fooled. Government could be a positive, transformative agency, helping all of us live better lives.” [49:00]
• Calls for the majority to control government to reshape society for collective benefit.

Notable Quotes & Memorable Moments

• “We have a capitalist ranking system ... that rank orders who gets the equipment and who doesn’t, who lives and who dies.” — Wolff [02:35]
• “Everything Black Lives Matter was about — systemic racism — is baked into the way this country works.” — Wolff [09:40]
• “If they had dared to do to their working class what the American business community ... did ... they would have gone right out into the streets...” — Wolff [19:30]
• “Laissez-faire ... this is pure ideological pap.” — Wolff [37:00]
• “The irony is the government is the greatest threat to capitalism, and they know it.” — Wolff [49:00]

Timestamps for Major Segments

• 00:10–04:40 — COVID and Hospital Hierarchy Story
• 04:40–10:00 — Dr. Fauci, Essential Workers, Systemic Racism
• 10:00–19:00 — U.S. vs. Europe: Unemployment Responses
• 19:00–22:00 — Worker Power in Europe vs. U.S.
• 22:00–25:40 — Wells Fargo, Diversity & Corporate Racism
• 26:10–30:40 — Capitalism’s Anxiety About Universal Suffrage
• 30:40–35:30 — Potential of Worker-Controlled Government
• 35:30–44:00 — Tools Capitalists Use to Restrain Government
• 44:00–48:00 — Government as Scapegoat & Libertarianism’s Role
• 48:00–end — The Transformative Potential of Government

Final Note

Richard D. Wolff concludes by teasing a future episode focusing on socialism and its relationship to the state, promising further critical analysis of political economy and the structures that shape our lives.