Economic Update with Richard D. Wolff Episode: Capitalism's (Uncounted) Health Costs Date: September 7, 2017

Overview

In this episode, host Richard D. Wolff examines the deep, often hidden connections between capitalist economic systems and detrimental health outcomes, both physical and psychological. The episode opens with timely economic news and transitions into an extensive dialogue with Dr. Harriet Fraad, a New York-based mental health counselor, focusing on rising morbidity and mortality, the opioid crisis, and the mental health costs imposed by economic insecurity and inequality—costs that capitalism systematically ignores.

Key Discussion Points & Insights

1. Women in the Labor Force and Cultural Shifts

[00:00–05:56]

• Wolff discusses the significant increase in women's participation in the labor force over the last 30 years, referencing the film "Wonder Woman" as a cultural reflection of this shift.
• Quote: “I am the man who can.” – Wonder Woman (as cited by Wolff, 02:37)
• Implications for family life, social relationships, and the economy are profound, highlighting both progress and the strains of adaptation.

2. Religious Critiques of Capitalism

[05:57–09:13]

• Wolff recounts statements by the Archbishop of Canterbury describing the British economic model as "broken," emphasizing the widening gap between the richest and poorest.
• Quote: "Britain stands at a watershed moment, he said, where we need to make fundamental choices about the sort of economy we need." (07:15)

3. Labor Day, the Decline of Unions, and the Importance of Alliances

[09:14–18:56]

• Wolff traces the historic strength of the American labor movement, especially its alliance with socialist and communist parties in the 1930s, which secured lasting social advances (e.g., Social Security, unemployment insurance).
• Current unionization is at its lowest in decades: only 6.5% of private sector workers are union members.
• Wolff stresses that the decline of left-labor alliances after WWII allowed business and conservative interests to dominate:
  • Quote: "Business has gotten richer...in direct proportion that the organized labor movement has gotten weaker." (12:15)
  • Lesson: Labor must rebuild alliances with progressive movements to regain power.

4. Economic Dimensions of Natural Disasters

[18:57–26:03]

• In discussing Hurricane Harvey in Houston, Wolff attributes the exacerbation of such disasters to policy decisions driven by capitalist incentives:
  • Lack of infrastructure (e.g., protective dikes, evacuation routes) is rooted in profit priorities—developers don't want regulations/expenses that cut into profit.
  • Quote: "This is a crisis whose losses are of our own making. The problem of Harvey in Houston was the problem of a system that puts profits first." (24:53)
• Profit motives lead to cycles of destruction and rebuilding—developers profit doubly, while communities repeatedly suffer loss.

5. McDonald’s Strikes in the UK and Wage Inequality

[26:04–29:00]

• UK McDonald’s workers went on strike demanding £10/hour; context given about the U.S. "Fight for $15".
• CEO Steve Easterbrook’s pay (€7,329/hour) is contrasted to workers' meager wage.
  • Quote: “But they can't pay their workers more than what I just told you—it's outrageous.” (28:39)
• Calls attention to corporate tax avoidance and systemic exploitation.

6. Tax Reform: Rhetoric vs. Reality

[29:01–30:00, continued at end of pt.1]

• Wolff characterizes the Trump administration’s “tax reform” as a tax cut for the rich and corporations.
  • Corporate tax cuts from 35% to 15%; rewards for profit offshoring.
  • Over the past 50 years, the tax burden has shifted from businesses to individuals.
  • Quote: “For every dollar the federal government taxes us...it gets 25 cents from taxing corporations.” (28:29)
• Both Republicans and Democrats are implicated in maintaining a system that primarily benefits the wealthy.

Interview with Dr. Harriet Fraad: The Hidden Health Costs of Capitalism

Introduction

[30:00–31:06]

• Dr. Fraad is introduced as a mental health expert with extensive experience writing and speaking on the psychological effects of economic structures.

1. Surge in Mortality Among White Women

[32:47–38:52]

• 300% increase in mortality for white women in small cities, suburbs, and rural areas since 1999.

  • Root causes include: dissolution of marriage as economic security, increased job precarity, pervasive stress.

  • Stress suppresses immune function, leading to worse health outcomes and increased mortality.

  • Memorable Moment: Fraad explains how constant stress (job insecurity, single parenthood, low pay) leads to health-destructive behaviors—smoking, overeating, drug use.

  • Quote (Dr. Fraad): "When the body is stressed...all non-essential systems are turned off in the body. ... One of those systems is your immune system, so that immunity is turned off if you're under constant stress." (34:20)

2. Opioid Crisis as an Economic Symptom

[36:08–39:32, returns at 52:07–56:14]

• 64,000 Americans died from drug overdoses in 2016—a 22% increase in 2 years. The majority are opioids.
  • Economic pain and lack of prospects lead to substance abuse as solace.
  • Quote (Dr. Fraad): “That's what’s really a killer in the United States. Certainly not ISIS.” (37:09)
• Politicians focus on surface solutions (e.g. more clinics), ignore root economic causes.

3. Insecurity, the Gig Economy, and Health

[41:33–45:14]

• Precarious work (Uber, Lyft, temp jobs) breeds high levels of stress and deteriorating health.

• Case example of a stressed Uber driver underscores instability and risk.

• Service sector workers (e.g. nurse’s aides) face higher stress and more health problems than higher-paid, secure professionals.

  • Quote (Dr. Fraad): "There are no sick days, there are no holidays, there are no vacations. You aren't there performing, you get nothing." (43:03)

4. Inequality Drives Health Gaps—Washington D.C. Life Expectancy

[45:15–49:26]

• In Washington D.C., life expectancy differences between rich and poor neighborhoods can reach 20 years.
  • Education and stable jobs are key determinants; without them, people face stress, unhealthy coping, and early death.
  • Men’s suicides are far higher due to cultural norms around masculinity and emotional expression.

5. Capitalism’s Toll—A System That Kills

[49:27–52:07]

• Economic system produces unnecessary death, widespread anxiety, pain, and isolation.
  • Quote (Wolff): “You're describing an economy that kills people...in a way it doesn't need to.” (49:26)
  • Quote (Dr. Fraad): “Capitalism kills. And in the United States now, all regulations...are porous.” (50:22)
• Comparison to European models (e.g. Denmark’s $24/hr minimum wage, robust social support) demonstrates alternatives with better health outcomes.

6. The Need for Systemic Change and Activism

[53:30–56:14]

• U.S. lacks political engagement, group organizing, and public critique of the capitalist system—key in countries like France.
  • Civic alienation and atomization fuel crisis.
  • Quote (Dr. Fraad): “We need each other. We've got to organize. We've got to stop this together...Not the lone individual. ... No, people together.” (55:23)

Notable Quotes & Memorable Moments

• "Business has gotten richer...as the organized labor movement has gotten weaker." —Richard D. Wolff [12:15]
• "This is a crisis whose losses are of our own making. The problem of Harvey in Houston was the problem of a system that puts profits first." —Richard D. Wolff [24:53]
• "When the body is stressed...your immune system is turned off if you're under constant stress." —Dr. Harriet Fraad [34:20]
• "Capitalism kills." —Dr. Harriet Fraad [50:22]
• "You’re describing an economy that kills people...in a way it doesn't need to." —Richard D. Wolff [49:26]
• "We need each other. We've got to organize. We've got to stop this together… No, people together. And that's a tradition we need to rebuild." —Dr. Harriet Fraad [55:23]

Timestamps for Key Segments

• 00:00–05:56 — Women’s expanded role in the labor force, cultural and economic consequences
• 05:57–09:13 — Archbishop of Canterbury on the broken British economic model
• 09:14–18:55 — Decline of labor movement, need for alliances, history of labor-socialist/communist coalitions
• 18:56–26:03 — Capitalism and economic mismanagement of disasters (Harvey, Houston)
• 26:04–29:00 — McDonald’s strikes, CEO-worker wage gap
• 29:01–30:00 — Rhetoric vs. reality of "tax reform"
• 31:06–38:52 — Dr. Fraad interview, women’s health crisis, stress, and mortality
• 41:33–45:14 — Gig economy, work insecurity, and health outcomes
• 45:15–49:26 — Inequality and life expectancy, suicide, educational divides
• 49:27–52:07 — Capitalism’s health toll, comparison to Europe
• 53:30–56:14 — Social atomization, need for organizing, collective solutions

Conclusion

Wolff and Fraad’s central message is that the health costs of capitalism are real, sweeping, and unaccounted for in mainstream economic reckoning. These costs are evident in everything from the opioid epidemic to declining life expectancies, magnified by economic insecurity and inequality, but largely ignored by policy makers. The solution, both argue, lies in rebuilding social and political alliances to challenge capitalism’s dominance, learning from international examples, and demanding that economic systems be judged by their human outcomes—not profits.

For further engagement: Visit democracyatwork.info or rdwolff.com for more resources.