Economic Update with Richard D. Wolff

Episode: Capitalism and War

Date: May 11, 2015
Host: Richard D. Wolff (Democracy at Work)

Episode Overview

In this episode, Richard D. Wolff critically examines recent political and economic developments in the US and Europe, investigates the systemic roots of austerity and inequality, and takes a deep dive into the historical relationship between capitalism, war, and violence. Wolff also offers commentary on current issues like the opening to Cuba, the continued crisis in Greece, and the illusion of consumer choice in US markets.
Throughout, he argues that understanding and changing our economic system is essential for addressing societal problems, especially war and persistent economic crisis.

Key Discussion Points & Insights

1. The Breakdown of Traditional Parties in Europe (00:04–07:27)

• Rise of Alternatives in the UK, Greece, and Spain
  • Wolff highlights growing public anger and disenchantment with traditional parties as a result of continued economic hardship post-2008.
  • Example: In Greece, the two historic parties cannot even get one-third of the vote combined; in Spain, left candidates are surging; in the UK, both left and right alternatives are gaining traction.
• Quoting Wolff:

  "People are looking for alternatives. They don’t see the Conservatives, the current government of Mr. Cameron, or the Labour opposition of Mr. Miliband as offering any basic change from business as usual, which for the mass of the British people is way below what’s acceptable." (05:35)

2. US State Budgets & Public Education Crisis (07:28–14:48)

• States Recovering Too Slowly from the 2008 Crisis
  • Despite headlines about recovered state revenues, most states have lost nearly a decade of growth and services.
  • Public education is suffering: 485,000 more students in public schools, but 288,000 fewer teachers and personnel.
• Six Worst States for Education Cuts & Tax Policy
  • Oklahoma, Arizona, Idaho, Wisconsin, Kansas, North Carolina (plus Alaska) each slashed education budgets while cutting taxes for corporations and/or the wealthy.
• Notable Quote:

  "Decisions could have gone otherwise. You could have gone and taxed corporations and the rich, the ones who brought the crisis... But you didn’t, did you?" (12:24)

• Critique of Kansas’ Welfare Legislation
  • Kansas enacts punitive restrictions on welfare recipients, portraying the poor as irresponsible and subhuman, while doing nothing to address job creation.
  • On Governor Brownback:

    “You are a hypocrite, Governor Brownback, and you know it.” (14:36)

3. “Trade War” Between Ketchup and Mustard Giants (14:49–18:47)

• Heinz vs. French’s – The PR Spin on Consumer Choice
  • Major food corporations (Heinz/Kraft and French’s) are encroaching on each other’s primary markets (ketchup and mustard, respectively).
  • Wolff critiques the narrative that this is about "consumer choice" – in reality, concentration of market power limits real options for consumers.
• Memorable Analogy:

  “That’s like someone coming up and saying, I’m going to give you choice: you could choose between my hitting you over the head with a shovel or by hitting you with a stick. You have choice. I just gave you choice. What? That’s not choice!” (17:15)

4. Economics of Child Support & Systemic Individualism (18:48–22:23)

• Discussion Prompted by Walter Scott’s Case
  • Wolff examines the economic injustice of making child well-being dependent on parents’ ability (or willingness) to pay, rather than society’s responsibility.
• Point:

  “To make the support of the child depend on the father is first and foremost unfair to the child. There is no excuse for it.” (20:41)

5. Corporate Offshoring and the Hollowing Out of the US (22:24–26:34)

• Focus on the Automobile Industry
  • The trend of moving production abroad (e.g., from Detroit to Mexico) continues, primarily to exploit cheaper labor.
  • Telling Statistics:
    • Hourly wage:
      • Mexico: $8
      • US: $58 (GM), $38 (Volkswagen Tennessee)
    • VW/Audi would save $6,000 per car produced in Mexico.
  • Consequences:
    • Loss of domestic jobs, devastated communities, and perpetuation of profits for executives and shareholders.

6. Capitalism and War: An Inseparable History (Second Half – 27:35–43:17)

• Origins of Capitalism in Violence
  • Capitalism did not emerge peacefully out of feudalism; instead, its birth was marked by violent revolutions and wars:
    • The English Civil Wars, the French Revolution, and the American Revolution.
• Expansion Through Violence & War
  • Native American displacement and genocide
  • Black slavery underpinning US cotton production
  • Colonial violence in Asia, Africa, and Latin America to secure resources and labor
• 20th Century: Capitalist Competition & World Wars
  • “The most catastrophic wars we have were wars driven by, pushed by, shaped by capitalism and the competition that capitalism produces.” (39:06)
• Globalization & Modern Military Needs
  • As production moves abroad, global supply chains demand ever larger military protection; competition with emerging economies (e.g., China) increases global tensions.
• Takeaway:
  • To seriously address war and violence, we must critically examine and challenge the economic system that perpetuates them.

7. The US Opening to Cuba: Socialism’s New Experiment? (43:18–49:29)

• US Ends Hostility, Seeks “Regime Change” Through Engagement
  • After 50 years of failed embargo and animosity, the US is shifting to diplomatic and commercial engagement, hoping to trigger capitalist reforms.
• Cuba’s Internal Evolution: Worker Co-ops
  • Before the US policy shift, Cuba began reforming socialism by emphasizing worker-owned cooperatives—not capitalist privatization.
  • “Cuban socialism is changing from a top-down hierarchical state-focused socialism to a bottom-based worker [cooperative]... These are not state enterprises. These are collectively owned and operated co-op enterprises.” (47:33)
• Key Question:
  • Will Cuba's experiment with grassroots, cooperative socialism withstand renewed capitalist pressure?

8. Greece: A Two-Front Struggle (49:30–55:56)

• The Real Battle Behind Media “Theater”
  • "Troika” (European Central Bank, European Commission, IMF) pushes Greece to repay debts incurred under past, corrupt governments.
  • At the same time, Greece's wealthy elites are moving their assets abroad, weakening the country internally.
  • “Greece has a two-front war. That is, the Syriza government has to understand… that they really have two enemies, the internal and the external, and that right now the two enemies are squeezing them.” (53:25)
• Major Risk for Europe:
  • If Syriza is pushed too far, it might tax the wealthy and corporations, setting a revolutionary example for other European nations.
  • Austerity shifts the costs of capitalist crisis onto ordinary citizens—leading to political backlash and demands for fundamental change.

Memorable Quotes & Highlights

• On Capitalism and War:

  "To seriously address war and violence, we must critically examine and challenge the economic system that perpetuates them." (41:30)

• On Consumer Choice:

  “We don’t have much choice, do we? … Because little companies can’t compete. They can’t spend the money on the advertising. They can’t spend the money on the distribution system. We’ve allowed a few companies to dominate in most areas of our lives.” (17:52)

• On Cuba:

  “Will the Cubans be able to preserve and prevail with a worker co-op based socialism in the face of the effort of the United States…Or will Cuban socialism survive in its new formal focus on worker co-ops? This is an important historical experiment...” (48:14)

Important Timestamps

• UK/Europe Political Shifts: 00:04–07:27
• US State Budgets & Education: 07:28–14:48
• Kansas/Missouri Welfare Law Critique: 12:39–14:48
• Ketchup vs. Mustard “Trade War”: 14:49–18:47
• Child Support Economics: 18:48–22:23
• Corporate Offshoring: 22:24–26:34
• Capitalism & War (Historical Analysis): 27:35–43:17
• US–Cuba Relations & Worker Co-ops: 43:18–49:29
• The Greek Crisis—Two-Front Struggle: 49:30–55:56

Conclusion & Tone

Richard D. Wolff’s analysis is critical, incisive, and delivered in a direct, passionate style. He consistently urges listeners to look beyond surface narratives and question the systemic roots of economic and social crises. At every turn, he links today’s problems—be they political disaffection, economic hardship, or international tension—back to the deep structures and contradictions of capitalism.

This episode is both a tour of current economic “hot spots” and a broad, historical meditation on why systemic change is vital for a peaceful and just future.