Economic Update with Richard D. Wolff

Episode: Dark Times, Hard Truths – June 11, 2020

Episode Overview

In this thought-provoking episode, economist Richard D. Wolff examines how capitalism has failed not only to prepare for the COVID-19 crisis and ensuing economic crash, but also how it has grossly mismanaged these overlapping crises as they unfolded. Wolff dives into systemic failures related to virus testing, the Federal Reserve’s handling of the economic crash, and the deepening inequalities woven throughout the American response. He then discusses cultural, political, and class conflict dimensions, before conducting a candid and critical interview with comedian and commentator Jimmy Dore on the state of American democracy, political leadership, and the prospects for meaningful reform.

Key Discussion Points and Insights

1. Capitalism's Failure in Managing the Pandemic (00:10–07:30)

• Testing as a Fiasco:
  Wolff condemns the lack of widespread coronavirus testing in the US.

  “It’s a disaster that this system hasn’t done that. That's not managing the virus. It's failing to do that.” – Richard Wolff (02:02)

• Profit Motive Undermines Public Health:
  Referencing a Los Angeles Times story, Wolff describes a “Wild West of virus testing companies” where profiteering trumps coordinated response.

  “Uh oh, capitalism to the rescue. No, to the mess. Because here’s what: profit is the driver.” (03:30)

  • Testing companies sell overpriced, unreliable tests, worsening public trust and the pandemic, while no national system steps in.

2. Economic Crash and the Federal Reserve (07:30–11:00)

• Federal Reserve's Corporate Bailouts:
  The Fed purchases corporate bonds, enabling large companies to accrue limitless debt; meanwhile, individuals and small businesses suffer.

  “This is called making a situation worse by helping those who need it least at the top of the heap, at everybody else’s expense.” (08:53)

• Intensifying Inequality:
  Wolff warns that these policies will “make inequality worse in the United States.”

3. Breakdown of Economic Relationships and Class Struggle (11:00–14:00)

• Commercial Rent Crisis and Legal Battles:
  As tenants miss rent payments, landlords face bankruptcy, and a “sauve qui peut, everyone for themselves” mentality emerges.

  “If the working class...doesn’t get itself together and mobilize...it will come out on the short end of this game because everybody else is lawyering up to fight out who gets screwed and who gets saved.” (13:07)

• Historical Parallel:
  Wolff likens the current need for worker organization to the labor struggles of the 1930s.

4. COVID Profiteering and Sam Mendes’ Critique (14:00–15:00)

• Streaming Giants Profit as Arts Suffer:
  Film director Sam Mendes criticizes Netflix/Amazon for benefiting during COVID while theaters and artists suffer.

  "If the rich do not help the poor, in the end they won't be rich very much longer.” (14:39)

  • Mendes called for a small portion of profits to preserve creative infrastructure.

5. Militarized Responses to Protests (15:00–15:40)

• Trump’s Call for “Domination”:
  Wolff criticizes Trump's order to "dominate" protesters.

  “Dominate is not to solve the problems. People protest because there are problems that aren’t being solved. Dominating them doesn’t solve the problem.” (15:12)

  • Historical analogy: US failures in Vietnam, Afghanistan, Iraq.

6. Unemployment as Class War (15:40–15:43)

• Wage Suppression and Worker Desperation:
  Employers exploit mass unemployment to press for wage cuts and reduce benefits.

Interview: Jimmy Dore with Richard Wolff (15:44–28:23)

The Decline of America’s Economy and Political System (16:32–20:42)

• Union Decimation and Policy Failure:
  Dore cites the decline of unions since Reagan and critiques both Republican and Democratic administrations for economic inequality.
  • Key critique: Obama expanded wars, entrenched corporate power, and failed to address inequality.
• US Could Have Chosen a Different Economic Path:
  Dore contrasts America’s approach to Germany’s pandemic response (“They just wired the money into the business's bank account so they don't have to lay anybody off.” – 18:21).
• Corporate Capture of Government:
  America is now a "rapacious oligarchy" (a term he attributes to Dylan Ratigan).

“We are living in the effects of a rapacious oligarchy that literally is legislating against its own citizens… We are rich enough to take care of all of this. And I think the fact that people are catching onto that is why they're in the streets right now.” – Jimmy Dore (19:43)

Political Parties and Failure of Reform (20:42–26:42)

• Hopelessness in Both Parties:
  Dore argues the Democrats and Republicans are two sides of the same coin, both serving corporate interests.

  “Donald Trump and Nancy Pelosi work for the same guy. This is professional wrestling. They have to come out and pretend to not like each other… when they are all working together behind the scenes.” (26:25)

• Biden as a Symptom, Not a Solution:
  Criticizes Biden’s entire legislative record and says he’s part of the problem:

  “Joe Biden is the reason we have Trump… the reason why the prison population exploded. Joe Biden.” (22:22)

• On Bernie Sanders and the Progressive Leadership:
  Dore lambastes Sanders and The Squad for capitulating to party leadership, and not standing up to the CARES Act:

  “Not only did they not stand up and try to help people through the CARES act… What they did was they voted for it. They actually committed an evil. Now they gave cover to the rapacious oligarchy who’s screwing you.” (24:03)

• Legislated Upward Transfer of Wealth:
  The CARES Act is called “the largest upward transfer of wealth in the history of humankind.”

Prospects for Change and What Comes Next (26:42–28:23)

• Cautious Outlook:
  Wolff asks about the future. Dore expresses little optimism for dramatic, positive change given corporate power and entrenched inequality:

  “I don't want to be a pessimist, but my cynicism cannot keep up with the Democratic Party.” (27:41)

• Importance of Criticism:
  Wolff closes by stressing the importance of voices like Dore’s, who “say the things that have to be said that the others are afraid of.” (27:45)

Notable Quotes and Memorable Moments

• “Testing by the employer or testing by the government. Somebody in this system has failed to organize the testing, but the failure goes beyond that.” – Richard Wolff (01:30)
• "This is an assault on everybody. And that's going to be played out in the next six months unless, again, we get the message we have to organize, to fight or else we're coming out on the short end." – Richard Wolff (15:34)
• “Obama…didn't do a damn thing about [inequality]. In fact, he made the banks bigger, made the Bush tax cuts permanent, took us from two wars to seven.… Now, it's not like that was a secret that they didn't know… They didn’t want to do it.” – Jimmy Dore (17:01)
• "Our government is now an abusive…we're in an abusive relationship with our government and there’s no help." – Jimmy Dore (24:48)
• “This moment was created for [Bernie]. He has the solutions…yet he won’t push for them right now because he is subservient to the Democratic party.” – Jimmy Dore (25:51)

Timestamps for Key Segments

• 00:10–07:30: Capitalism and Virus Mismanagement/Testing Fiasco
• 07:30–11:00: Federal Reserve and Corporate Bailouts
• 11:00–14:00: Commercial Rent, Court Fights, and Class Struggle
• 14:00–15:00: Sam Mendes’ Critique of COVID Profiteering
• 15:00–15:40: Trump’s “Dominate” Order & Protest Response
• 15:40–15:43: Unemployment as Class War
• 15:44–16:32: Introduction to Jimmy Dore
• 16:32–20:42: Dore on Economic Decline & Inequality
• 20:42–26:42: Political Betrayals, Democrats vs. Republicans, The CARES Act
• 26:42–28:23: Dore on Prospects for Change, Closing Remarks

Summary Tone

The episode is direct, urgent, and unapologetically critical. Both Wolff and Dore employ a mix of economic analysis, historical perspective, and sharp political commentary, leavened with a sense of outrage at systemic injustices—aimed at motivating listeners to recognize current dangers and the need for organized resistance and change.

This episode offers a sobering, in-depth exploration of America’s crisis—from public health mismanagement to the erosion of democracy, with a call for critical awareness, solidarity, and action.