Podcast Summary: Economic Update with Richard D. Wolff

Episode: “Capitalism Invites Deepening Criticism”

Date: August 30, 2018

Episode Overview

In this episode of Economic Update, host Richard D. Wolff explores the deepening criticisms of capitalism, especially as seen through recent crises and growing inequality. Wolff dissects current events—ranging from Labor Day’s true meaning, Democratic Party’s fossil fuel funding decision, Turkey’s economic crisis, the Genoa bridge collapse, CEO pay increases, and shifting American attitudes toward socialism. In the second half, joined by Dr. Harriet Fraad, the discussion delves into the psychological and institutional roots of worker passivity in the face of rising inequality, contrasting the US and French approaches to authority and rebellion.

Key Discussion Points and Insights

1. Labor Day and True Respect for Workers (00:10–03:40)

• Wolff critiques the hollow ways US society 'honors' labor, calling for a stronger, rights-based approach.
• He compares the emancipation of slaves with the need to emancipate workers from the threat of losing jobs and income at the whim of an employer.
  • Notable Quote ([01:19]):
    Wolff: “Just like it was right to do away with slavery, it’s right to do away with an unconscionable power that no person should have over another.”

2. The Democratic Party and Fossil Fuel Donations (03:40–06:55)

• The Democratic National Committee reversed its ban on donations from fossil fuel companies.
• Their justification: protecting union jobs in fossil fuels.
• Wolff argues this is a false choice—guaranteeing full employment through public jobs or retraining could preserve jobs and the environment.
  • Notable Quote ([04:49]):
    Wolff: “You’re not choosing between jobs and pollution. We’re a society that could have no pollution and preserve everybody’s job.”

3. Turkey’s Economic Crisis—A Symptom of Capitalist Instability (06:55–11:45)

• Wolff explains that Turkey’s crisis isn’t about ministers or tariffs, but the byproduct of global capitalist lending and investment cycles.
• Cheap loans from Western countries led to over-investment in risky projects; now, Turkish businesses can’t repay debts, especially as their currency falls.
  • Notable Quote ([10:13]):
    Wolff: “You don’t want a system that takes you from crisis to crisis. Then you’ve got a problem with capitalism, because that’s how it’s always worked and that’s how it’s working now.”

4. Genoa Bridge Collapse and Public vs. Private Ownership (11:45–15:10)

• The deadly Genoa bridge disaster traces to the privatization of public infrastructure—maintenance was sacrificed for profit.
• Wolff calls for collective, worker-user-run models (like co-ops) for safer, more accountable public goods.
  • Notable Quote ([13:35]):
    Wolff: “If profit is your number one goal, then it isn’t your number one goal to be safe. And the Genoa bridge collapse is a terrible sign of where that can go.”
  • Notable Quote ([14:54]):
    Wolff: “Have bridges, airports, tunnels run collectively by the people who use them and the people who work there… A worker coop running the roads. Much better idea.”

5. CEO Pay, Worker Wages, and Growing Inequality (15:10–16:15)

• CEOs at top 350 US firms saw their pay rise 17.6% in one year, reaching an average of $18.9 million.
• In contrast, workers’ wages at the same firms rose just 0.3%.
  • Notable Quote ([15:53]):
    Wolff: “The CEO’s salary went up by 17.6% and the workers they employ went up by 0.3%. Capitalism does not reward us equally, does it?”

6. Rising Favorability Toward Socialism (16:15–17:10)

• Gallup poll (July-August 2018):
  • 57% of Democrats have a favorable view of socialism, only 47% of capitalism.
  • Favorability for capitalism dropping; for socialism, stable at 35–39%—about the same as Trump’s approval rating at the time.
  • Notable Quote ([16:52]):
    Wolff: “The American people are looking at their capitalist system and they’re concluding what others have too. It’s time to move on.”

Segment: Dr. Harriet Fraad Interview—Why Don’t US Workers Rebel? (15:44–28:33)

1. The Puzzle of US Worker Passivity (15:44–17:23)

• Despite stagnant real wages and rising productivity, workers don’t rebel.
• Wolff asks: “What makes people respond to a situation like this in an active way, and what makes them not do that?” ([16:21])

2. The Role of American Exceptionalism and Internalized Failure (17:23–18:13)

• Dr. Fraad: American ideology posits anyone can make it if they try; when that fails, people internalize blame.
  • Notable Quote ([17:30]):
    Fraad: “If you haven't made it, there’s something wrong with you.”

3. How Authority (Family, School, Religion) Shapes Passivity (18:13–22:53)

• Drawing on Marxist philosopher Althusser, Fraad outlines how:
  • Authoritarian families teach children to obey omnipotent authority.
  • Authoritarian schools enforce voice-silencing, teacher-as-boss dynamics.
  • Authoritarian religion reinforces obedience and subordination.
• Result: Deep-seated feelings of worthlessness and submission make rebellion unlikely.
  • Notable Quote ([21:34]):
    Fraad: “Who am I to raise my head against omnipotent authority?”
  • Notable Quote ([22:53]):
    Fraad: “The more authoritarian the family, the more likely the child will discipline him or herself from the inside.”

4. Societal Differences—The US vs. France (22:53–28:06)

• France: Universal child care, collective peer bonds, less dominance of authoritarian religion, and stronger rebellion culture.
  • Public institutions socialize children differently—child care for all, children bond with peers, not just parents.
• US: Families and religious institutions more likely to instill submission; lack of universal childcare.
  • Notable Quote ([25:26]):
    Fraad: “The only way you could change your position in society is if you join with others… Religion is a joke in France. Here, everybody has to pretend they believe in God to run for office.”
• Wolff’s summary ([28:06]):
  Wolff: “The success here of imposing on the working people a difficult life… it’s been prepared by the authoritarian structure of family, school and religion. That’s the core of it.”

Notable Quotes & Memorable Moments

• “[Capitalism] takes you from crisis to crisis. Then you’ve got a problem with capitalism, because that’s how it’s always worked and that’s how it’s working now.” —Wolff ([10:13])
• “If profit is your number one goal, then it isn’t your number one goal to be safe. And the Genoa bridge collapse is a terrible sign of where that can go.” —Wolff ([13:35])
• “Who am I to raise my head against omnipotent authority?” —Dr. Fraad ([21:34])
• “The only way you could change your position in society is if you join with others.” —Dr. Fraad ([25:26])
• “Religion is a joke in France. Here, everybody has to pretend they believe in God to run for office.” —Dr. Fraad ([25:30])

Timestamps of Important Segments

• 00:10 — Labor Day and worker rights
• 03:40 — Democratic Party’s fossil fuel controversy
• 06:55 — Turkey’s economic crisis explained
• 11:45 — Genoa bridge collapse and privatization
• 15:10 — CEO pay vs. worker wages
• 16:15 — Gallup poll: socialism vs. capitalism
• 15:44 — Dr. Harriet Fraad interview begins
• 17:23 — American exceptionalism and internalized blame
• 18:13 — Authoritarian forces in family, education, and religion
• 22:53 — US vs. France: socialization and rebellion
• 28:06 — Summary of the roots of US worker passivity

Conclusion

This episode delivers a multi-layered critique of capitalist structures and the reasons behind growing public skepticism. Richard D. Wolff contextualizes current economic events as symptoms of systemic instability, while Dr. Harriet Fraad contributes a nuanced psychological lens on why US workers remain passive despite worsening inequality. The episode ends by calling for structural changes both in the economic system and the institutions that shape individual and collective consciousness.

For listeners seeking to understand not just the “what” but the “why” of economic discontent and resistance, this episode provides both a sharp economic analysis and a thoughtful exploration of cultural and psychological dynamics.