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Welcome, friends, to another edition of Economic Update, a weekly program devoted to the economic dimensions of our lives. Debts, jobs, incomes, the future for us and for our children. I'm your host, Richard Wolff. I've been a professor all my adult life, a professor of economics, and I hope that has prepared me to offer these updates as to what's happening in the economy we all depend on, and that is in deeper and deeper trouble as we do. I want to begin today with a shout out to something changing America. I'm talking about the wave of strikes. You know, now that the working class of the American society has understood that a sequence of Republicans and Democrats, each one outdoing the other, claiming to be for working people, for the middle class, for the needs of average Americans, have not been able to deliver if even they wanted to. And so they're beginning to understand an ancient historical truth. The only way the working class can assure its own well being and that of its children is if it acts on its own behalf. Striking is a way that workers show their solidarity, get together which is their strongest suit, and fight for what they need. And so it is honorable for us to recognize and appreciate that 53,000 employees of the University of California began a strike May 7th through 9th in order to demand the kinds of decent salaries and decent working conditions that should have been given to them by those in charge of this institution, but wasn't available because the business community and the rich won't pay the taxes and the politicians they put in office will do nothing about it. So the workers themselves have to. The American Federation of State, county and municipal employees, Local 3299, the California Nurses association, and another union under CWA University Professional and Technical Employees organize this strike. Strikes are difficult. Strikes take a long time. Strikes require workers to show solidarity and to become aware that only by their own actions can they make sure that the promises they gave to themselves and their children will not be broken by an economic system that already is broken. I want also to correct a small point I made in my discussions of Uber over recent weeks. Yes, Uber is simply a way to get around the rules governing taxi drivers. Rules designed to protect us, the public, by making sure taxi drivers are vetted, making sure their cars are insured, making sure their cars are in mechanical order so we don't take risks. Uber gets around all of that, as I explained. Nothing new about it. The technology is not what's important. It's getting around the taxi commission in every city and state. That's what's their profit model. But I neglected to mention that Uber doesn't stop at all of that if it can make even more money by pressing down what they actually pay Uber drivers to. They do that too in order to out compete the taxi companies by charging less in some situations because they have fewer costs and because they squeeze drivers more so poor people have a chance to get a ride from an Uber that's cheaper than a taxi company. That has to be acknowledged. But of course if there were the public transportation system that we need and want, it would be a much cheaper way of moving people, giving them the transportation they need and deserve without ripping us off, either by private companies like Uber or by overcharging through the taxi system. It's a sad comment on the second best that this country increasingly imposes on people. Let me turn now to the regular updates that I want to discuss with you briefly today. The first came across my desk this last week and it's so shocking to me that I thought it would be interesting to you. I learned that since 2005, wealthy Americans, or Americans willing to pay the extra price of the expensive insurance, can buy insurance policies covering fire damage to their homes. That includes the provision by the insurance company of a firefighting team that will come to your house or your business if and when you're threatened by fire. In other words, where the average American citizen, you and me, relies on the local fire department to protect us richer people, the very ones who won't pay the taxes to support the fire department, are going around by buying private fire departments through their insurance company. Chubb, one of the high end of the insurance companies in America, is one such company and it had to provide firefighters to to many homes in the Sonoma, California area when they had their bad fires last autumn. And so it struck me that here are the wealthy impoverishing public services for everybody else and then noticing that the quality of the service is not what they want, will not be democratic or patriotic, but by helping improve the surface for everybody. No, no no no, no. Instead they have found a way to save more on taxes than it costs them to have a private fire department just for them. It reminded me also, since I'm an economics professor of a very ancient debate. It happened 5,000 years ago in Greece and it involved Plato and Socrates, often considered founders of Western philosophy. They argued in both cases, both men, against markets. Why? Because markets divide people. In my example, the market, if we allow it to be the way you get fire protection, allows rich people to buy it and poor people not to. It distributes fire protection according to how much money you have, as opposed to distributing fire protection as a civic obligation the community has equally to everyone in the community. Plato and Socrates argued social cohesion, holding a community together, is undone by markets. And on those grounds, they opposed markets as contrary to what society needs. Let me say that again. Plato and Socrates agreed that markets are socially disruptive institutions. Maybe we ought to go back and read that stuff once again. Another shocker this last week, it turns out that the Koch brothers threw their Koch foundation, were exposed giving a lot of money to George Mason University. It turns out that for years they were given in exchange for their money, influence over hiring of professors in the economics department and elsewhere. This is a university that likewise maintains close ties to the Trump administration. Having private corporations give money to universities is a serious problem, and always has been. To imagine that the universities needing this money, wanting this money, do not seek the favor of these wealthy donors is naive and silly. Of course they do. They always have. But to give them direct influence over hiring professors, that kind of takes it another step. It makes a mockery of the claim that academic institutions are open, objective. There's no one on the left comparable in their donations to what the Koch brothers are doing. Unions aren't doing this. Workers can't do it. Big corporations and the super wealthy like the Koch brothers are in a position to do it. And, and they're doing it big time. That controls the curriculum our students learn from. It controls what people understand and how they think. It has nothing to do with a democratic educational system. It is the negation of all of that. Another sign in the wind on the opposite side, for the first time, fast food joint workers have won an election to establish a union of fast food workers. That's right. McDonald's said it couldn't be done. Burger King was sure it wouldn't happen, but it did. Because America is changing. And working people, as the workers at the University of California have understood, have to begin to take their own destiny into their own hands. Thus it was that at the Burgerville fast food joint in Portland, Oregon, workers recently voted 18 to 4 with three abstentions to form a union. This is the first to do that since The Fight for 15 struggle began five years ago. Workers realizing they have to band together to confront their employer as a unified group to get the kind of salaries, working conditions that working people need. Hats off to people with that courage, with that solidarity. Of course, now, having voted to join a union, they must bargain with the employer, allowing the employer all kinds of stalling techniques and other methods. To try to undo this victory of the workers by blocking, postponing, delaying a union contract. But the workers are smart. They've shown by this 18 to 4 victory that they are very strong. Maybe they will be able to bargain with their employer. Maybe they'll have to strike to give the employer the understanding that the days of telling workers will what to do and when to do and how much you're not going to pay them, those are over. Working people are not marching to the tunes that once enthralled them. And this country is changing. My attention this last week was also caught by the results of a poll. And there's almost a kind of sadness that comes over me in reporting this to you. It was released on May 1 by the Cigna Insurance Company, a poll conducted by Cigna and Ipsos, another famous polling company. And they used the UCLA Loneliness Index, an index of how people feel, whether they feel lonely, isolated, alone in life. And they show in their polling just released that over 50% of Americans feel seriously lonely with the mental and physical health effects that go with that. Why am I reporting this to you? This is a program about economics. Yes, well, economics includes what the economy does to people. And economics also includes what happens to an economy when people are in trouble, mentally or physically. What this poll shows us is that the American people are in very deep trouble. You know, when you want to understand whether we have recovered from the crash of 2008 and 9 in our economy, you tend to look at GDP and other numbers that economists like to talk about. But they're not the only numbers that measure, particularly measure what counts. 50% over of Americans find themselves lonely now, many of them lonelier than they have ever felt. That too is a result of the crash of 2008 and and all its consequences. That too is a measurement of the recovery we don't have for most Americans from that crash. And you know, when you take many things away from people so that they feel isolated, alone and lonely, you know, they hold on to what little they have left and they discover maybe that they have to hold on more to the fact that they are white, that they are U.S. citizens, that they are churchgoers. And so the tendency might develop to be hostile and critical towards the people who aren't white, who aren't U.S. citizens and who don't go to your church. It's the little you have to hold onto. It's what makes you feel maybe just for a little bit less lonely. Economic downturns have always threatened large numbers of people with economic decline with Loss with serious depression. Economic, but also mental, physical. That's why economic downturns are associated with the rise of scapegoatism. Turning against your fellow citizen, blaming him or her for the troubles you find difficult to account for in any other way, and that scare you in the news last week was a particularly horrific example of where this can go. This one happened in Great Britain, in England. It's there called the Windrush scandal. And for those of you that don't know about it, let me briefly summarize. Back in 1948, shortly after the end of World War II, Britain had to set around rebuilding itself. The city of London had been bombed by German rockets. England had gone through terrible sufferings and it needed, literally, to rebuild its society. It appealed to and welcomed roughly 50,000 West Indian immigrants who left the Caribbean and went to England to work. They were part of the British Empire, welcomed at the time because their labor was going to help rebuild England. And they've lived in England and worked in England over the last 60 years. In the rush of the British government to serve the capitalist class in England by blaming the collapse of capitalism, not on a system that broke down in 2008, not on a system that has lowered the wages of British people for the last decade, not the system that is now about to implode as a result of Brexit. No, no. Blame it on immigrants was the achievement of the May government. Theresa May was Home Secretary before she became Prime Minister. In both capacities, she has waged a war against West Indian immigrants. It went so far as to say that if one of those were Windrush fellows, men or women, couldn't come up with five or six documents to prove they were in the country illegally. After 50 to 60 years of labor rebuilding England, they would be deported. And some were, and many were threatened with it. The current Home Secretary, or the recently departed Home Secretary, Amber Rudd, went even further and she was forced to resign as the British people rose up and said, this is outrageous. You're going to deport people who helped rebuild England in your rush to blame people whose skin is brown and who can be portrayed as immigrants. Anything to save the system from getting the criticism it so badly deserves. Well, the Windrush scandal is still roiling British politics as the scandal of what Mr. Trump is doing to immigrants here is doing in the United States and will continue to do it should be a warning to everyone. My attention was also caught last week by a speech given by Hillary Clinton. She explained that her endorsement of capitalism and portrayal of her as A capitalist hurt her with Democratic primary voters in 2016. She said, and I'm virtually quoting, capitalism's reputation is pretty much in tatters. Big companies, she even says, are disrupting what she calls the our economy by promoting inequality. And she is in favor of capitalism with, quote, appropriate regulation and quote, appropriate accountability. Hello Mrs. Clinton, we've been having appropriate regulation and appropriate accountability often brought to us by Democratic politicians to just like you for a hundred years and look where we are. It doesn't work. Does, hasn't worked. Our inequality, promoted both by Clinton, Bush, Obama and Trump administrations one after the other, is worse than it has been in a century. The instability of our economy, horrific. The inequalities percolating down, the loneliness I just summarized for you. Capitalism is the problem. And Mrs. Clinton, if you really want to suggest that the socialist ideas that led many Democrats to not vote for you is a terrible problem, are you asking them to leave the Democratic Party? Do you think you have a chance? Folks like you, if they did, do you count on them to follow this advice? And true to form, the Republicans immediately seized upon what she said to try to portray the Democrats, her included, as socialists with that care for detail that they typically exhibit. I want to take a moment to thank particularly not only those of you that are watching, but particularly our Patreon community. Each of you keeps this show going. The entire video program is available exclusively for our patrons along with other bonus content you will not find anywhere. We recently completed a four part series on Karl Marx whose 200th anniversary of his birth is this year. And that four part series which will be released quarter after quarter across the month of May. His anniversary attempts to show what the insights were that you get from the Marxian tradition, what the relevance is today, what the meaning is today. It's a special service we produced for our Patreon supporters. Be sure to check us out on Patreon, that's P-A-T-R-E-O-N.com EconomicUpdate or visit us at either of our two websites, rdwolf.com with two Fs or democracyatwork.info and be sure to follow us on Facebook, Twitter, Instagram, Twitter, YouTube. If you are a fan of this program, be sure to hit the subscribe button below. You will be notified whenever new content is posted on our channel. You can also subscribe on Apple Podcast and Google Play. If you are a station, a radio station, please get in touch with us so that we can list you on our website. And finally, I want to remind you again about Puerto Rico Forward, our newest podcast, available on Apple Podcasts and Google Play. Our last updates have to do with two things. First, Martin Winterkorn, he used to be the CEO of vw. He was indicted this last week by Jeff Sessions, the Attorney General of the United States President, for placing emissions testing evasion devices onto VW diesel and other vehicles, 11 million of them across the world and a large number here in the United States. Of course, this kind of indictment is a bit of theater since Germany will not extradite Mr. Winterkorn, who lives there now. So this is publicity hound hunting and not much else. But there's more to this. Blaming an individual for a problem is bizarre. It's very normal in capitalist society because capitalist society is a kind of religion where God is in the hands of or played by the corporations and they have to be kept free and clear. The system that ties these corporations together, capitalism has to be kept out of the light of any criticism. So we blame individuals, if we blame anybody at all. The first defense of the corporation, we didn't do anything. Second defense, it was a few bad apples. Third defense, it was the leadership. But it's always this individual or that individual. We're not going to solve the problem of these corporations by blaming individuals. If we do, they will resign, as Mr. Winterkorn did, or we even put them in jail, which sometimes rarely happens, and they will be replaced by other people who behave in the same way, because the system has its ways of rewarding you for this bad behavior and punishing you if you don't. Automobiles pollute. They pollute so badly that Germany, like many other countries, installed emissions control devices, made them mandatory to save society from the bad results of automobile pollution. But these companies wanted to profit off of this situation because that's what they're in business to profit. So they came up with defeat devices, ways they could avoid putting in a device that might slow the car down or slow its acceleration down so they could still sell them while pretending to do what the society needed for the profits of the small number of people that are shareholders of vw. All of us suffer more lung disease, more emphysema for lung cancer, and everything else that we know comes from this pollution. The system is no good. If you want to run businesses, the workers in them and the public served by them should together run them, because that's a much better chance that society's concerns, our concerns, get on the table when they make their decisions. The tiny number of people who run corporations now have shown that leaving the running of capitalism in the hands of capitalists is not the way to go. Thank you all. We have come to the end of the first half of Economic Update. I hope you found these updates interesting. I am sure you will find the interview that follows even more interesting and I ask you therefore to stay with us. We will be right back. Welcome back, friends, to the second half of Economic Update. Today's discussion with my usual guest. At the beginning of each month, Dr. Harriet Fraad will focus on families. What is happening to the family? What is the relationship between what's happening to families and what's happening to the capitalist economy we live in? And how all that relates to the so called family values that we claim is a central part of politics in the United States and elsewhere. Let me begin by introducing my guest for those of you who do not already know her. Dr. Harriet Fraad is a mental health counselor and hypnotherapist in private practice in New York City. Her work explores the intersections of American personal, economic and political life. Her most recent articles appeared in Alternate and in the book Knowledge Class and Marxism Without Guarantees. She appears regularly on TV shows such as this Economic Update and also on programs like Redacted Tonight with lee Camp on RTTV. Her work can also be found on her website, harrietfraud. That's f r a a d harrietfraud.com it is a pleasure to welcome Harriet Fraud to this program this month.
