Economic Update: Distorting Economic Truths

Podcast: Economic Update with Richard D. Wolff
Host: Richard D. Wolff (Democracy at Work)
Guest: Juliana Forlano
Date: April 13, 2018

Overview

In this episode, Richard D. Wolff delivers a pointed critique of widely accepted economic assertions and the ways corporate and political interests distort economic truths for power and profit. The first half of the episode covers illustrative stories from Disney, the real estate markets, the Nestle water controversy, the USPS-Amazon saga, and more, exposing how these issues reflect deeper systemic flaws in capitalism. In the second half, Wolff is joined by comedian and broadcaster Juliana Forlano for a lively discussion on the importance of humor in political resistance and public discourse during turbulent times.

Segment Summaries & Key Insights

1. Disney Workers and Economic 'Recovery' (00:10 - 06:00)

• Theme: Contrasts the fantasy image of Disney as “the happiest place on earth” with the reality of low-wage labor.
  • On March 23, 2018, thousands of Disney World workers protested, demanding to raise their minimum wage from $10 to $15.
  • Disney used tax cut savings to offer $1,000 bonuses—conditional on workers accepting their minimal wage offer (a $0.50 yearly increase).
  • Workers rejected the offer, exposing the dissonance between corporate PR and worker reality.
• Key Quote:

  "So beneath the veneer of the happiest place on Earth are an awful lot of people, many thousands of them who work there who aren't happy at all." — Richard Wolff (03:30)

2. Real Estate Downturn in NYC and Toronto (06:00 - 10:30)

• Theme: Unpacking sharp drops in home values in Manhattan (25%) and Toronto (46% slump in sales).
  • Causes:
    • Rising interest rates increase mortgage burdens.
    • Overbuilding, especially for the wealthy, outpaces demand.
    • Reduced foreign investment due to US political hostility.
• Key Quote:

  "...this is a country that's going out of control. Not smart to keep money invested in a country like that." — Richard Wolff (09:30)

3. Nestle, Public Water, and Corporate Greed (10:30 - 16:45)

• Theme: Corporate exploitation of public goods exemplified by Nestle's water extraction in Michigan.
  • Nestle increased water extraction despite 80,945 public comments against the move and only 75 for it.
  • The state commission ignored opposition, favoring profit over public/environmental interest.
  • Wolff explains the strategy: underfund public water, degrade the service, then sell privatized alternatives at higher prices.
• Key Quote:

  "To say that the law allows you to do it is just to say you're going to allow the companies to write the laws that, surprise, surprise, bring them the profit..." — Richard Wolff (15:30)

4. Amazon, USPS, and Deliberate Distortion (16:45 - 24:30)

• Theme: Trump’s targeting of Amazon and claims about the US Postal Service (USPS) are factually and economically misleading.
  • USPS’s losses primarily come from Congressional mandates—not from Amazon’s contracts. Specifically, the law to pre-fund future retiree health care.
  • USPS’s package business (including for Amazon) is profitable; it is Congress-imposed costs that create deficits.
  • This setup benefits USPS’s private competitors (FedEx, UPS).
• Key Quote:

  "The level of economic error in this analysis is so profound. I want to tell you what's going on." — Richard Wolff (18:30) "It's the pressure from business to use the government as a way to make more money." — Richard Wolff (24:15)

5. Regressive Soda and Sin Taxes (24:35 - 26:40)

• Theme: Critique of former Treasury secretary Larry Summers’s support for taxing unhealthy goods to reduce obesity.
  • Wolff argues such taxes are regressive—hitting the poor harder—and proposes progressive alternatives like funding education instead.
• Key Quote:

  "To slap a tax on the objects is to whack hardest the people who can least afford it. Shame on Mr. Summers for calling that the best way to deal with it." — Richard Wolff (26:25)

6. VW’s Pollution Scandal: Capitalism and Inefficiency (26:40 - 28:30)

• Theme: On VW’s decision to park 300,000 “cheating” cars rather than fix or repurpose them.
  • Highlights the inefficiency and environmental cost of profit-driven corporate decision-making.
• Key Quote:

  "It's such a comment on why producing for profit is a disastrously inefficient way to function." — Richard Wolff (27:46)

7. Economics of the MeToo Movement (28:30 - 30:17)

• Theme: The movement’s economic costs and challenges:
  • Women forced to leave jobs due to harassment suffer loss of skills, lower wages, and negative impacts on family welfare.
  • Those who speak out risk career damage; those who stay face chronic stress.
  • Harassment is not just a moral crisis but a contributor to economic inefficiency, tied to hierarchical capitalist systems.
• Key Quote:

  "The struggle for women's equality is a struggle against the system that worked this way. And that undercut the quality of life we all could have enjoyed had we dealt with this much, much earlier." — Richard Wolff (30:02)

INTERVIEW: Using Humor to Reveal Economic Truths

Segment: Richard Wolff with Juliana Forlano (30:17 - END)

8. The Role of Comedy in Political Resistance (30:17 - 33:48)

• Theme: Comedy exposes truth, especially under absurd political conditions.
  • Trump’s outlandishness makes satire both easier in terms of material, but harder because "he's already a clown."
  • Comedians like Stephen Colbert and Trevor Noah educate and offer alternatives more effectively than mainstream news.
• Key Quotes:

  "Comedy is basically about getting to the truth and offering up that truth in a way that isn't just telling you—it’s illustrating the truth using things that are of common understanding." — Juliana Forlano (33:48)

9. Limits of Mainstream Comedy and the Need for Activism (34:40 - 36:52)

• Comedy on mainstream platforms (Viacom, network TV) is commercialized; they’re unlikely to push for radical action.
• Importance of comedy for spurring activist engagement—not just "the show."
• Forlano’s goal: mixing jokes with practical calls to action to convert awareness into real-world change.
• Key Quotes:

  “What is education if you don’t act on it?” — Juliana Forlano (36:04) "If I can make a whole group of people laugh, they feel this oneness. They don’t feel alone. And in this time, I think that’s...a crucial political moment." — Juliana Forlano (39:10)

10. Comedy, Truth-Telling, and Social Structure (37:24 - 44:49)

• Humor as "spoonful of sugar": it helps people process the bleakness of the news cycle.
• The court jester, historically and now, as the only one allowed to speak truth to power.
• Differences between left- and right-wing comedy: "the right punches down... the left only punches up."
• Unity and resilience fostered through shared laughter is a powerful political tool.
• Discussion of George Carlin as the master of satire who could bring "the unsayable" to diverse audiences, sometimes softening their views through humor.
• Key Quotes:

  "In medieval times, the court jester was the only guy who could tell the truth, both about the king and to the king, without being beheaded." — Juliana Forlano (38:14) “Everyone wants to see the guy who is abusing the system and poisoning your water...finally get his.” — Juliana Forlano (38:37)

11. Comedy, Capitalism, and Alternatives (44:49 - 50:21)

• Stand-up clubs (capitalist venues) often shy away from "cutting edge" satire due to fear of offending.
• Alternative models: public venues/theaters for the arts, inspired by historical initiatives (e.g. WPA in the 1930s), could nurture comedians without commercial shackles.
• Example: comedians banding together for shows in supportive venues, sometimes attracting various activist audiences, but public funding could amplify this effect.

12. Comedy in the Age of Trump, and Motherhood (50:21 - End)

• Forlano describes how being a parent amplifies her concerns for the future and motivates her comedy as a form of activism.

• Comedy as a vital release for activists: "It's not a crime to laugh at something. It doesn't mean you are deserting the cause. You don't have to be angry all of the time in order to be politically active."

• Humor operates as a therapeutic tool in both personal interaction and collective resistance.

• Key Quotes:

  “All of that anger can be turned real quickly into depression or any other number of things that are crippling...I feel like they need a break from that particular emotion.” — Juliana Forlano (51:10)

  “I have found that humor is...it works everywhere. It works when it's done well....It gives a little bit of detachment, a little bit of distance, and then better decisions can be made...” — Juliana Forlano (54:40)

Memorable Closing Moments

• Both guest and host reaffirm the vital role of laughter in truth-seeking, resistance, and even personal health—“We need laughter.”
• Wolff encourages listeners to use the program’s resources for further engagement and thanks independent journalism outlets.

Notable Quotes by Timestamp

| Timestamp | Quote | Speaker | |-----------|--------|---------| | 03:30 | “So beneath the veneer of the happiest place on Earth are an awful lot of people...who work there who aren't happy at all.” | Richard Wolff | | 15:30 | “To say that the law allows you to do it is just to say you're going to allow the companies to write the laws that, surprise, surprise, bring them the profit...” | Richard Wolff | | 18:30 | “The level of economic error in this analysis is so profound. I want to tell you what's going on.” | Richard Wolff | | 26:25 | “To slap a tax on the objects is to whack hardest the people who can least afford it. Shame on Mr. Summers for calling that the best way to deal with it.” | Richard Wolff | | 30:02 | “The struggle for women's equality is a struggle against the system that worked this way. And that undercut the quality of life we all could have enjoyed had we dealt with this much, much earlier.” | Richard Wolff | | 33:48 | “Comedy is basically about getting to the truth and offering up that truth in a way that isn't just telling you—it’s illustrating the truth using things that are of common understanding.” | Juliana Forlano | | 38:14 | “In medieval times, the court jester was the only guy who could tell the truth, both about the king and to the king, without being beheaded.” | Juliana Forlano | | 39:10 | “If I can make a whole group of people laugh, they feel this oneness. They don’t feel alone. And in this time, I think that’s...a crucial political moment.” | Juliana Forlano | | 51:10 | “All of that anger can be turned real quickly into depression or any other number of things that are crippling...I feel like they need a break from that particular emotion.” | Juliana Forlano | | 54:40 | “I have found that humor is...it works everywhere...It gives a little bit of detachment, a little bit of distance, and then better decisions can be made...” | Juliana Forlano |

Important Timestamps

• [00:10] – Opening and Disney segment
• [06:00] – Real estate downturn analysis
• [10:30] – Nestle water controversy
• [16:45] – USPS, Amazon, and economic distortion
• [24:35] – Soda/sin taxes discussion
• [26:40] – VW scandal
• [28:30] – MeToo movement economics
• [30:17] – Interview with Juliana Forlano begins
• [33:48] – Comedy, truth and political engagement
• [39:10] – Comedy as unity and resistance
• [44:49] – Alternative arts funding and public comedy
• [50:21] – Comedy, activism, and motherhood
• [54:40] – Humor's broad utility

Episode Essence:
Richard Wolff exposes how corporations and governments collude to shape economic narratives, often to the detriment of ordinary people, and highlights how truth-telling—whether through analysis or comedy—can empower resistance and inspire meaningful change. The conversation with Juliana Forlano demonstrates that in hard times, laughter is not just relief but a powerful tool for clarity, unity, and action.