Economic Update with Richard D. Wolff

Episode: Dems’ Self-promotion versus Hard Economic Realities

Date: March 25, 2021
Guest: Bob Hennelly (award-winning journalist)

Episode Overview

In this episode, host Richard D. Wolff critically examines the gap between political self-promotion by Democrats and the harsh realities of the current U.S. economy, especially during the COVID-19 pandemic. The episode explores the struggles of workers in dying industries, international mishandling of the pandemic, misleading narratives about economic recovery, and Democratic failures to fight for significant changes like a higher minimum wage. In the second half, journalist Bob Hennelly joins to discuss the impact of recent legislation, persistent poverty, food insecurity, vaccine inequities, and the standing of the labor movement.

Key Discussion Points and Insights

The Coal Industry’s Slow Demise and Policy Failures

[00:15 - 04:40]

• Wolff highlights the decline of the coal industry, attributing it to ecological concerns and higher costs relative to alternatives.
• Main critique: The abandonment of coal workers and towns is not a natural tragedy, but a failure of capitalism to care for displaced people.
  • “As the coal industry shrinks, the communities that depend on it...are left behind. It is no surprise that they fight back. ...We should help those people. They're our fellow citizens.” (Wolff, 01:25)
• Wolff argues for a nationally funded, humane transition: maintaining laid-off workers’ incomes, retraining, and guaranteeing placement in new jobs.
• He blames both media and politicians for ignoring these policy possibilities, contrasting them with empty promises from figures like Donald Trump.

Brazil’s COVID-19 Disaster: A Cautionary Tale

[04:41 - 08:00]

• Brazil is suffering the world’s worst COVID-19 rates behind only the U.S., with government neglect worsening the crisis.
• Wolff draws a parallel between Brazil’s Bolsonaro and Trump, highlighting their downplaying of the pandemic and failure to protect public health.
  • “Mr. Bolsonaro ... advised the people of Brazil ... to 'stop whining about the disease.' What he meant, of course, was stop whining about my horrific mishandling of this disease. Like Trump.” (Wolff, 06:30)
• Observes that the hardest-hit countries have “strongman” leaders who scapegoat minorities and mismanage public health.

The “Pent-Up Demand” Myth and Problems with Recovery

[08:01 - 13:50]

• Wolff critiques claims of an impending economic “boom” from pent-up demand, comparing the current situation unfavorably with 1945.
  • The end of WWII brought a surge after 16 years of deprivation, while COVID-19 has lasted just a year.
  • Household debt is exponentially higher now, reducing disposable income.
  • The U.S. faces global competition, especially from China, unlike post-war dominance.
  • Extreme inequality concentrates wealth among the rich—who did not cut back consumption and thus won’t fuel a surge.
  • “To call this [wealth tax] modest is one of the great understatements of human history.” (Wolff, 13:30)
• Conclusion: There are no grounds for expecting a mid-century style economic boom.

Elizabeth Warren’s Wealth Tax Proposal

[13:51 - 15:30]

• Wolff explains that Warren’s proposal exempts 99.9% of Americans and modestly taxes fortunes above $50 million.
• The ultra-wealthy will still grow their assets faster than the tax rate, making opposition “just this side of disgusting.”
  • “[The wealth tax] is even grosser than what we have, that those people shouldn't have decided they ought to pay their fair share.” (Wolff, 15:28)

Interview with Bob Hennelly

Democrats and the Minimum Wage Failure

[15:37 - 19:20]

• The Senate dropped the $15 minimum wage from COVID relief under parliamentary pretext.
• Hennelly: The ruling class engineered “cover” by using the parliamentarian’s nonbinding advisory.
  • “What this consensus has done, this corporate consensus by people who are millionaires who raised billions to hold onto their office, is to keep capital formation safe. That's it.” (Hennelly, 18:22)
• The exclusion of a wage hike preserves corporate profit at the expense of 20-30 million underpaid workers.
• Democrats’ rhetoric on behalf of the working class has not translated into meaningful policy.

The Illusion of Economic Recovery

[19:21 - 23:30]

• Hennelly highlights systemic, pre-existing poverty and deprivation, especially in healthcare.
  • “Even before the pandemic ... you had 250,000 people dying a year because of inadequate access to health care. ... Meanwhile, 750 are dying a day for lack of health care.” (Hennelly, 20:48)
• COVID-19 intensified women’s economic setbacks, erasing years of workplace gains due to childcare and social infrastructure collapse.
• Republican-led states are refusing to strengthen Medicaid or follow health mandates, echoing persistent regional inequalities dating back to the Confederacy.
• The relief package mirrors the exclusions of past reforms (like FDR’s), which left out domestic and farm workers, disproportionately impacting women and people of color.

Food Insecurity—Pre-existing and Worsening

[23:31 - 25:50]

• Hennelly discusses “ALICE”—Asset Limited, Income Constrained, Employed—Americans who struggle above the poverty line.
  • “These are folks that aren't in the poverty level, but struggle week to week and have to give up something in rotation to get by.” (Hennelly, 24:29)
• Food insecurity has reached shocking levels, e.g., in some New Jersey counties, 1 in 3 children lacks reliable access to meals.
• Closure of schools removed a vital source of nutrition for millions of children.

Vaccines: Inequities and Policy Shortfalls

[25:51 - 27:33]

• Vaccine distribution reflects pre-existing inequalities: “white rich people get access to the vaccine. Oh, it’s a shocker.” (Hennelly, 26:16)
• Distribution varies wildly by state; there is no coherent national strategy.
• Wolff and Hennelly both critique the federal government’s hesitance to impose mandates (e.g., requiring teachers’ vaccination for school reopening).

The Labor Movement's Current Standing

[27:34 - 28:29]

• Unions, especially in the public sector, are faring better.
  • “The unions continue to lead the way around the country for even a basic accountability...” (Hennelly, 28:09)
• Example: Only postal unions and some Congress members are pressing the USPS to reveal pandemic death tolls among workers.

Notable Quotes & Memorable Moments

• On coal communities:
  • “We should help those people. … What's happening to their industry can and sooner or later will happen to whatever we are engaged in. And we would want to be helped just as they deserve to be helped.” (Wolff, 01:25)
• On Brazil’s COVID crisis:
  • “Mr. Bolsonaro ... advised the people of Brazil ... to 'stop whining about the disease.' What he meant, of course, was stop whining about my horrific mishandling of this disease. Like Trump.” (Wolff, 06:30)
• On the failed minimum wage push:
  • “What this consensus has done ... is to keep capital formation safe. That's it. ... they have forgotten [those who put them in power].” (Hennelly, 18:22)
• On food insecurity:
  • “There's an army of Alices. ... These are folks that aren't in the poverty level, but struggle week to week and have to give up something in rotation to get by.” (Hennelly, 24:29)
• On vaccine inequity:
  • “White rich people get access to the vaccine. Oh, it’s a shocker. I’m so shocked.” (Hennelly, 26:16)

Key Timestamps for Important Segments

• Coal industry’s decline & policy failures: 00:15 – 04:40
• Brazil’s COVID-19 crisis: 04:41 – 08:00
• The “pent-up demand” myth: 08:01 – 13:50
• Wealth tax analysis: 13:51 – 15:30
• Democrats and the minimum wage: 15:37 – 19:20
• Granular reality v. “recovery” claims: 19:21 – 23:30
• Food insecurity before/after pandemic: 23:31 – 25:50
• Vaccine rollout disparities: 25:51 – 27:33
• Labor movement status: 27:34 – 28:29

Tone:
The episode is critical, direct, and unsparing, with both Wolff and Hennelly emphasizing the urgency and injustice of current economic policies. Language reflects empathy for struggling populations and sharp skepticism toward self-congratulatory political narratives.

Summary written for listeners who want to understand the substance and character of the episode without listening to the full broadcast.