Economic Update with Richard D. Wolff

Episode: Capitalism's Crimes

Date: October 27, 2015

Overview

In this episode, economist Richard D. Wolff critically examines the contemporary failures and injustices of capitalism, highlighting recent scandals and policy missteps across the US and Europe. Through the lens of economic theory and real-world consequences, Dr. Wolff explores issues ranging from the defunding of Planned Parenthood and corporate malfeasance (VW emissions scandal) to mass protest movements against austerity in Ireland and France. In the second half, guest Harry Konstantinidis offers a detailed and personal portrait of the devastation wrought by austerity policies in Greece, illuminating their human and societal toll.

Key Discussion Points

1. Economic Updates and Capitalism’s Contradictions

Planned Parenthood and Economic Short-Sightedness (05:10)

• Summary: Wolff critiques efforts to defund Planned Parenthood, arguing that the supposed fiscal savings will be outweighed by increased Medicaid costs as more poor women are denied access to family planning.
• Quote:
  “If you don't fund Planned Parenthood... many more babies born to the poorer women... will need lots and lots of care, which will cost the Medicaid system... End result: it will cost more in the way of government subsidies if you don’t fund Planned Parenthood than if you do.”
  — Richard D. Wolff (05:55)
• Insight: The root issue is systemic: “...the fact that millions upon millions of Americans either have no job or get paid so poorly that they can't afford the medical care they would much rather be able to buy...” (06:43)

Austerity Protests in Ireland (08:00)

• Summary: Irish citizens, led by trade unions, organized mass protests (80,000 strong) against new water fees—a measure to offload public debt burdens onto the working class; early signs indicate possible government retreat.
• Quote:
  “It’s a further injustice. Here’s the good news: August 29th, 80,000 people gathered... to march together in opposition to water fees. And it looks like the government may be forced to back down.”
  — Richard D. Wolff (09:04)

Aggressive French Labor Actions (11:00-14:00)

• Summary: Wolff recounts several recent French labor protest victories, emphasizing creative, nonviolent disruptions:
  • Air France workers tear shirts of executives to protest mass layoffs.
  • French farmers dump pig manure to protest low prices, gaining a $1.2B government concession.
  • Taxi drivers block airports against Uber, resulting in a ban on UberPOP.
  • Ferry workers disrupt traffic, saving 400 of 500 jobs threatened.
• Quote:
  “The French know something: Aggressive behavior works... Their disruptions are of normal life, not of personal injury. And this aggressive behavior in France works for them, which is why they do it.”
  — Richard D. Wolff (14:24)

Corporate Abuse: The Johns Hopkins Black Lung Program (15:20)

• Summary: Johns Hopkins ends its medical review program after being exposed for denying black lung claims—a case study in corporate capture and regulatory failure.
• Quote:
  “Dr. Wheeler didn’t find a single example that might cost the government and the coal companies money. That center has been closed down in an act of embarrassment.”
  — Richard D. Wolff (17:00)

2. In-Depth Analysis: The Volkswagen Emissions Scandal

Capitalism, Competition, and Crime (18:30)

• Summary: VW deliberately cheated emission tests on 11 million vehicles, echoing earlier US precedents (e.g., Ford’s van). Wolff sees this not as an aberration, but as a systemic failing of capitalism where profit trumps legal and ethical norms.
• Quote:
  “VW has violently damaged the health of millions upon millions of people with its 11 million toxic emission automobiles. It is worsening the health of millions and it will probably contribute to the premature death of unknown numbers...”
  — Richard D. Wolff (24:48)
• Analysis:
  • The imperative of profit and competition pushes corporations to criminal behavior.
  • Regulatory systems are routinely outmaneuvered or bought off.
• Alternative Vision:
  • Worker cooperatives and universal job guarantees would diffuse reckless decision making and reduce incentive for harmful practices.

3. The Trans-Pacific Partnership (TPP) and Corporate Power

Secret Deals and Uncertain Outcomes (27:30)

• Summary: The TPP, negotiated in secret by corporations and politicians, is likely to benefit multinational firms over workers or consumers. Details remain opaque and contentious.
• Quote:
  “This is a deal... like a horse trading deal among criminals for the horses they’ve stolen. Here, each corporation seeks an advantage but is fearful that its negotiators... can only get the advantages they want by giving up something which will hurt somebody else...”
  — Richard D. Wolff (28:44)
• Political Fallout: Both Bernie Sanders and Hillary Clinton have voiced opposition due to growing public scrutiny.

4. Special Interview: The Greek Austerity Disaster (30:45–56:57)

Greece: Crisis, Austerity, and Resistance

Origins and Consequences (30:45–39:32)

• Host Set-Up:
  “It might be important to remind everybody... [that] 11 million is not only the number of people in Greece, but it’s the number of destructive diesel cars that the VW Corporation dumped on the world...”
  — Richard D. Wolff (31:05)
• Guest: Harry Konstantinidis, Assistant Professor of Economics, University of Massachusetts Boston; Greek national.

Human Cost of Austerity (36:29)

• Numbers: Unemployment soared from 7–8% pre-crisis to ~28%; youth unemployment at 60%; homelessness up 25% in two years.
• Quote:
  “It’s really hard to actually explain the magnitude of a disaster that austerity policies... have caused on the average Greek household.”
  — Harry Konstantinidis (36:35)
• Minimum wage cut from €751 to €586 per month as cost of living remains high.

Comparison to US Great Depression (38:19)

• Wolff notes Greek unemployment exceeded US Great Depression peak (25%), with no horizon for recovery:
  • “If we were in the Great Depression, we would have already recovered, given the projections... Greece is going to be in a worse depression for the next three years. There is no end to this.”
    — Harry Konstantinidis (38:46)

The Eurozone Trap and Debt Relief Illusion (40:58–44:02)

• Syriza’s dilemma: Under international pressure, the Syriza government accepted an austerity package, hoping (wrongly) for meaningful debt relief.
• Quote:
  “I think this is disastrous calculation... even if they get it [debt relief], it won’t make a significant change.”
  — Harry Konstantinidis (41:34)
• Structural Power: European banks’ loans to Greece largely funded German/French arms industries, turning Greek taxpayers into debtors for creditor profit.

Why Greeks are Reluctant to Leave the Euro (45:03–48:21)

• Euro as Identity: The euro symbolizes progress and modernity; abandoning it is psychologically and politically difficult.
• Quote:
  “The euro was seen as a sign of progress over the last 20 years or so. Finally, the Greek middle class was able to travel abroad and use the same currency...”
  — Harry Konstantinidis (46:08)
• Devaluation of labor: The crisis enabled "internal devaluation”—a coordinated drive to make everything (especially wages) cheaper for competitiveness.

Surviving the Crisis (48:21–49:51)

• Many workers in Athens are unpaid for months; family networks in rural areas provide a fragile safety net; the social fabric in cities is more frayed.
• Quote:
  “I have friends and relatives who have not been paid for six to eight months waiting that at some point the situation...”
  — Harry Konstantinidis (48:58)

Cautionary Tale for the US and Elsewhere (49:51–53:19)

• Wolff warns:
  “The Greek people didn’t imagine a few years ago that they would confront [such deprivation], and they are now going through a level... that is absolutely one of the options [for the US].”
  — Richard D. Wolff (49:51)

Political Lessons and The Future (54:23–56:57)

• Social divisions (public vs. private, business vs. worker) have deepened under stress.
• The challenge: building solidarity and democratic alternatives, such as worker-controlled cooperatives and participatory budgeting.
• Quote:
  “If austerity has failed, how can we change the lives of people... are we going to turn them over to a situation where... maybe it’s time for you to take over the firm and the state would help you... as a co-op?”
  — Harry Konstantinidis (56:19)

Notable Quotes & Timestamps

• On Profit and Crime:
  “Profit is a major driver of their behavior... But it is also a driver for every kind of awful behavior, of which VW is a wonderful, stark and unambiguous example...”
  — Richard D. Wolff (21:49)

• Critique of TPP:
  “The TPP is no friend of working people. It’s not at all surprising that Bernie Sanders has announced opposition and that even Hillary Clinton has now joined him...”
  — Richard D. Wolff (29:45)

• Austerity’s Human Toll:
  “Three out of five young workers under twenty-five are unable to contribute. They're unable to be productive, they're unable to work. Homelessness has skyrocketed...”
  — Harry Konstantinidis (37:18)

Flow and Tone

Wolff maintains a direct, urgent, and passionately critical tone throughout, mixing economic theory with accessible anecdotes, statistics, and real-world comparisons. The conversation with Konstantinidis is candid and personal, focusing on the lived experience of crisis and the broader dangers posed by neoliberal capitalism to societies everywhere.

Timestamps for Key Segments

• Planned Parenthood and Medicaid Economics – 05:10–07:50
• Ireland Water Protests – 08:00–09:38
• French Labor Victories – 11:00–14:45
• Johns Hopkins Black Lung Scandal – 15:20–17:32
• Volkswagen Emissions Scandal Analysis – 18:30–26:50
• Trans-Pacific Partnership (TPP) – 27:30–29:55
• Interview Introduction (Greece) – 30:45–36:29
• Greece: Unemployment, Emigration, Homelessness – 36:29–39:32
• Debt Relief and Eurozone Dilemma – 40:58–48:21
• Minimum Wage Decline & Family Survival Strategies – 47:36–49:51
• Austerity’s Lessons and Political Future – 54:23–56:57

Final Thought

Richard D. Wolff closes with an admonition:
“What we’re hearing about Greece is a cautionary tale it would be unwise not to pay attention to.” (49:51)

For more information and past episodes, visit democracyatwork.info and rdwolff.com.