Economic Update with Richard D. Wolff

Episode: "A New Labor Movement Rising"

Date: June 13, 2019
Host: Richard D. Wolff
Guest: Neha Matthew Shah (President, Progressive Workers Union; International Environmental Justice Representative, Sierra Club)

Overview

In this episode, Richard D. Wolff explores the rise of a new labor movement, particularly within nonprofit organizations, and discusses recent economic developments affecting American workers. The episode transitions from topical economic news—including union activity, the declining role of organized religion, international trade tensions, and pharmaceutical price gouging—to an extended interview with Neha Matthew Shah. Neha provides insight into the Progressive Workers Union’s (PWU) mission to unite traditional labor issues with broader social justice efforts, specifically within nonprofit environments.

Key Discussion Points & Insights

1. Correction and Context: The NYS Nurses Union Agreement (00:10)

• Wolff clarifies a previous report on the New York State Nurses Association strike, noting internal dissent:
  • "There was quite a bit of disagreement in and among the nurses about that agreement and about whether they could have and should have struck for a much better agreement..." (00:38, Wolff)
  • He stresses that labor struggles are ongoing and internal debates reflect deeper issues within unions.

2. Decline in Religious Membership & Tax Subsidies (02:00)

• Highlighting a Gallup poll: Membership in U.S. religious institutions has dropped from 76% to 50% over 20-25 years—a historic low.
• Policy issue: Despite declining membership, religious institutions are tax-exempt and still benefit from public services, indirectly burdening non-religious Americans with those costs.
  • "Those who get free services from the government and don't pay for them thereby put a burden on those who must pay..." (03:51, Wolff)

3. Shifting Global Alliances & U.S. Economic Nationalism (04:19)

• Angela Merkel’s remarks: Europe now sees the U.S. as a “rival,” not just an ally—joining Russia and China in a trio of global competitors.
• Toyota’s response to tariffs: Labelled President Trump’s national security justification for auto tariffs as exclusionary, threatening jobs.
  • "Toyota announces it no longer feels welcome in the United States...they will leave. And what happens to American auto workers working for Toyota...?" (06:46, Wolff)
• Historical parallel: Wolff warns that economic nationalism failed in the past, specifically citing Germany under Hitler.

4. Pharmaceutical Price Gouging Lawsuits (09:56)

• 40 states sue pharmaceutical firms: Alleging massive price inflation—up to 1000% on some drugs.
• Out-of-pocket costs for insulin:
  • Italy: $19/month
  • UK: $65/month
  • US: $360/month
• Wealth and life expectancy disparity: The richest Americans live up to 15 years longer than the poorest—a gap greater than the U.S.-Yemen average.

5. Misconceptions About Tariffs (12:44)

• Wolff explains that tariffs are a tax on American importers and consumers, not on foreign producers.
  • "A tariff is a tax...they can pass that on at a higher price to you and me." (13:19, Wolff)

6. Stalled Raise the Wage Act (14:16)

• Minimum wage bill remains stalled: Would increase federal minimum wage to $15/hour by 2024.
• Wolff's take: Real policy change for millions of mothers delayed while symbolic gestures (e.g., Mother’s Day cards) continue.

7. Corruption in Capitalist Systems (14:53)

• Example: Arrest of French political figures for tax fraud.
• Systemic issue: Profit-driven systems incentivize bribery and exploitation, rarely leading to substantial reform.

Interview: Neha Matthew Shah—Progressive Workers Union and a New Labor Movement (15:35)

PWU Background & Mission (15:47)

• PWU’s origin: Founded in 1991 at the Sierra Club after layoffs and increased working hours spurred a union drive.
• Structure: Two unions represent Sierra Club employees; three years ago, the John Muir Local rebranded as Progressive Workers Union.
  • "They quickly realized that unionizing was really the only way to protect their worker rights." (15:53, Shah)

A New Wave of Union Organizing (16:45)

• Intentional difference from traditional unions: PWU sees itself as leading a new wave—blending labor with larger social justice aims.
• Personal trajectory: Neha joined union activities out of a desire for true organizational accountability to social and economic justice.

The Nonprofit Industrial Complex & Union Response (17:53)

• Problem: Nonprofit sector has a "legacy of exploitation"—long hours, pay inequities, lack of accountability.
• Union’s role: Challenging this by organizing for collective accountability and forcing organizations to live up to their public values.
  • "Unionizing organizations like the Sierra Club...is really about making progressive organizations practice what they preach and therefore strengthening movements from within." (18:53, Shah)

Dual Mission: Worker Rights and Social Justice (19:30)

• PWU’s philosophy: Incremental workplace reforms aren’t enough; unions must simultaneously fight for broader social justice.
  • "We have to do that...For example...we were able to successfully, through the union’s efforts, push for paid internships." (19:35, Shah)
• Concrete achievement: Union secured paid internships at the Sierra Club, challenging sector norms.

Integrating Union and Broader Social Movements (20:58)

• PWU’s commitment: Full participation in anti-racist, anti-sexist, and anti-oppression movements as core union activity.
  • "We are whole people...what we live and do day to day should be a lived reality of how we do our work as well." (21:26, Shah)

Organizing vs. Service Model of Unionism (23:20)

• Service model: Passive, top-down approach, where members only call the union in a crisis.
• Organizing model: Engages members as collective leaders, prioritizes building grassroots power and centering marginalized voices.
  • "Something that I constantly say on our member calls...‘I am not the union, Neha Matthew is not the union, we are the union.’" (24:14, Shah)

Special Challenges for Nonprofit Unions (25:25)

• Unique dynamic: Nonprofits claim “we’re all on the same side,” sometimes delegitimizing union demands.
• PWU’s response: Demanding accountability—e.g., pushing Sierra Club to support Tesla factory union drives.
  • "We’re actually able to live this talk about being a bottom-up organization, being a grassroots-based organization...because we have a voice sitting across the table from management." (27:37, Shah)

Legacy and Hope for Labor-Social Unity (27:43)

• Wolff’s conclusion: The split between social movements and labor in the U.S. historically served elite interests. This episode signals hope for reunification and transformative change.
  • "It was a service to the people who run this society that [labor and social movements]...was a split. It’s now coming back together again, thanks to a new generation of labor activists..." (28:10, Wolff)

Notable Quotes and Memorable Moments

"50 percent of Americans who are not members of religious institutions are subsidizing the 50 percent who are. And you might want to think about that."
— Richard D. Wolff (03:51)

"Toyota announces it no longer feels welcome in the United States...If they're not welcome, they will leave. And what happens to American auto workers...?"
— Richard D. Wolff (06:46)

"In the United States, the richest Americans live...15 years longer than the poorest...That gap between rich and poor in America is wider than the gap between the average American and the average length of life of a Yemeni or Ethiopian citizen."
— Richard D. Wolff (11:53)

"A tariff is a tax...So the people who end up paying the tariffs are the American companies and the American consumer."
— Richard D. Wolff (13:19)

"Unionizing organizations like the Sierra Club...is really about making progressive organizations practice what they preach and therefore strengthening movements from within."
— Neha Matthew Shah (18:53)

"We are whole people...what we live and do day to day should be a lived reality of how we do our work as well."
— Neha Matthew Shah (21:26)

"I'm not the union. Neha Matthew is not the union. We are the union."
— Neha Matthew Shah (24:14)

Important Timestamps for Key Segments

• 00:10: Episode introduction and correction on NYS Nurses Union coverage
• 02:00: Declining U.S. religious membership and tax issues
• 04:19: Angela Merkel’s remarks, Toyota’s statement, and warnings on economic nationalism
• 09:56: Pharmaceutical lawsuits; insulin price comparisons
• 12:44: Tariffs explained; American consumers pay, not China
• 14:16: Federal minimum wage stalling and social implications
• 15:35: Introduction of Neha Matthew Shah and background of the PWU
• 16:45: A new generation and approach to unionism
• 17:53: The nonprofit industrial complex and collective organization
• 19:30: Unions as part of a broader social movement; paid internships achievement
• 20:58: Social activism integral to PWU's mission
• 23:20: Organizing versus service models; collective action and centering marginalized voices
• 25:25: Nonprofit-specific challenges and accountability
• 27:43: Wolff’s concluding thoughts on labor and social movement unity

Tone and Language

Wolff maintains a critical, analytical tone—passionate yet reasoned, often framing issues as systemic rather than individual. Shah brings a lively, grounded, and inclusive perspective, emphasizing collective empowerment and the interdependence of worker and social justice struggles.

Summary

This episode demonstrates the ways economic issues intersect with social policy, global politics, and the internal evolution of unions—especially in progressive, nonprofit settings. Wolff connects economic theory and news with tangible on-the-ground realities, while guest Neha Matthew Shah provides an inspiring case study of young labor leadership redefining and broadening the purpose of modern unionism. Together, they paint a hopeful picture of the emerging, intersectional labor movement—one that unites workplace and social struggles for more profound societal change.