Economic Update with Richard D. Wolff: "Contradictions Coming Home" (June 21, 2018)

Episode Overview

In this episode, Professor Richard D. Wolff dissects several pressing economic and social issues in the United States, linking current crises—from increasing suicide rates to the student debt burden—back to deeper contradictions within American capitalism. The episode delves into how profit-focused systems undermine public well-being, including through housing, workplace practices, and political influence. The second half features Eli Campbell, a recent graduate, discussing the "madness" of student debt and considering the possibility (and perils) of mass student debt refusal as a form of protest.

Key Discussion Points and Insights

1. Suicide Trends as an Economic Symptom (00:10–07:30)

• Wolff begins by noting two high-profile suicides—Kate Spade and Anthony Bourdain—and moves to clarify that these are not isolated events.
• Key Stats: Suicide rates in the U.S. rose 30% (1999–2016), with suicide becoming the 10th leading cause of death in 2016 (45,000 deaths), half involving firearms.
• Many victims had “no known mental health problems,” suggesting underlying societal factors.
• Economic Interpretation: Wolff links rising economic insecurity (loss of jobs, declining benefits, expensive education) to pervasive feelings of hopelessness.
• Notable Quote:

  "We are living in a time when American capitalism, our system, is in deep trouble... The pressures on them, of jobs that are not as secure as they once were, of benefits that have shrunk... It's too much and you're putting the burden on too many people with no way out. And suicide is one way people respond."
  – Richard D. Wolff [05:29]

2. Housing Crisis and Capitalist Dynamics (07:30–11:45)

• The show pivots to the U.S. housing market, highlighting contradictions between supply and need:
  • High-end housing units: 13% vacancy rate
  • Low-end units: 6% vacancy rate
• Problem: Developers construct more luxury housing because that's where the profit is, neglecting affordable housing needs.
• Critique: The speculative, profit-driven model results in periodic overbuilding/underbuilding, rising rents, and chronic shortages.
• Notable Quote:

  "Because we don't build housing in a capitalist system to meet people's needs. We build housing where and when it's profitable."
  – Richard D. Wolff [09:10]

3. Workplace Exploitation – Nurses and Wage Theft (11:45–14:30)

• A federal judge allowed nurses at VA hospitals to seek class action over unpaid hours (on-call, after-hours work).
• Wolff frames this as a symptom of declining capitalism, with employers extracting unpaid labor as economic pressures rise.
• Solidarity: Applauds the nurses for organizing, highlighting growing labor activism in response to these pressures.
• Memorable Moment:

  "My hat's off to the nurses and nurse practitioners at the VA for getting together and saying enough is enough."
  – Richard D. Wolff [13:25]

4. Money in Politics: The Uline Family Case (14:30–16:32)

• Wolff spotlights the Uline family (of Schlitz Beer fortune), major right-wing political donors ($26 million in a single cycle).
• Critiques the massive influence of wealthy individuals in the political system, arguing it undermines democracy.
• Philosophical Point: Democracy demands one person, one vote—but money distorts this, rendering real democracy impossible.
• Notable Quote:

  "Money in politics is the enemy of democracy and always has been. And if you leave the money in there, you're writing the democracy out."
  – Richard D. Wolff [16:25]

5. Interview: Eli Campbell on Student Debt (16:32–27:35)

The “Strange Madness” of U.S. Student Debt

• Background: Eli Campbell, recent SUNY New Paltz graduate, is deeply engaged in student debt activism.
• Student debt is practically unknown in most developed countries; two generations ago, U.S. public higher education was virtually free.
• Core Analysis: The shift to student loans is not about need or efficiency, but rather about profit for lenders (government and Wall Street).
• Notable Quote:

  "These loans you're taking out, they're not made because the government and Wall street has our best interest in mind. They're made because it's profitable. And that, to me, is the madness of these times."
  – Eli Campbell [17:47]

Profits Over People: Structural Issues

• Federal government has made over $100 billion per quarter from student loans since 2010—far exceeding annual public funding needs.
• Core Critique: Student loan policies prioritize profit generation, not educational access or public welfare.
• Eli connects this to broader social control, arguing student debt suppresses youth activism and perpetuates capitalist dominance.

Mass Default as Protest?

• Eli proposes the idea of a coordinated, strategic mass default on student loans—“an organized student refusal”—which could threaten the financial system much as the 2007–08 housing crisis did.
• A spontaneous default movement is already underway—20% of borrowers are in arrears—but not yet consciously organized.
• Risks: Individual default is dangerous; coordinated action is necessary to shield participants from retaliation.
• Memorable Quote:

  “They can't take our educations away from us. They can't take our knowledge and our understanding. ... The degree has become a product that students are forced to buy ... but our actual labor becomes something totally unrelated because we have to pay off these extremely high financial burdens. It's a crazy system.”
  – Eli Campbell [22:27]

Barriers to Organizing

• While there is sympathy and isolated actions (e.g., Strike Debt during Occupy Wall Street), a full-fledged movement for student loan default has not yet materialized.
• Wolff and Campbell agree that systemic change would require organized, collective action.

Notable Quotes (with Timestamps)

• Richard D. Wolff: “It's too much and you're putting the burden on too many people with no way out. And suicide is one way people respond.” [05:29]

• Richard D. Wolff: “Because we don't build housing in a capitalist system to meet people's needs. We build housing where and when it's profitable.” [09:10]

• Richard D. Wolff: “My hat's off to the nurses and nurse practitioners at the VA for getting together and saying enough is enough.” [13:25]

• Richard D. Wolff: “Money in politics is the enemy of democracy and always has been. And if you leave the money in there, you're writing the democracy out.” [16:25]

• Eli Campbell: “These loans you're taking out, they're not made because the government and Wall street has our best interest in mind. They're made because it's profitable. And that, to me, is the madness of these times.” [17:47]

• Eli Campbell: “They can't take our educations away from us. They can't take our knowledge and our understanding. ... It's a crazy system.” [22:27]

Key Timestamps

• 00:10 — Suicide trends and economics
• 07:30 — U.S. housing crisis and capitalist incentives
• 11:45 — Nurses' class action and workplace exploitation
• 14:30 — Political influence of wealth: The Uline family
• 16:32 — Interview with Eli Campbell: student debt as “madness”
• 19:04 — The profit logic behind modern student debt
• 21:33 — Suppression of youth and potential for organized default
• 24:12 — The landscape of student debt activism and organizing challenges
• 27:35 — Conclusion and direction to continued conversation on Patreon

Tone and Language

Richard D. Wolff’s tone is empathetic, incisive, and critical of systemic failures, while Eli Campbell combines righteous frustration, clarity, and a call to action. Both maintain a conversational but pointed style, using everyday examples and sharp critiques to illustrate the broader consequences of profit-driven policy.

Summary Takeaways

• Many social crises—suicide rates, housing shortages, workplace exploitation, and student debt—are symptoms of larger contradictions in U.S. capitalism, especially its prioritization of profit over public need.
• The infiltration of big money into politics undermines democratic ideals.
• The student debt crisis is both a result of and a mechanism for enforcing profit-first economics, suppressing youth, and stifling social change.
• Collective organizing, whether for fair pay (as with the VA nurses) or mass loan refusal (as with students), emerges as the chief hope for redressing these structural injustices.

If you haven’t heard this episode, it’s a lively, provocative, and deeply informative critique of American economic life—and a call to organize for change.