Economic Update with Richard D. Wolff

Episode: Economic Power Struggles
Date: November 16, 2015

Overview

In this episode, economist Richard D. Wolff examines recent economic and political power struggles—both in the U.S. and internationally. He explores themes of public resistance against austerity in Europe, the epidemic of obesity as rooted in socio-economic inequality in America, the corrupting influence of corporate money in science, labor and racial alliances at the University of Missouri, deceptive retailer practices, debates about U.S. interest rates, and the deep structural issues underlying gentrification in American cities. Wolff ties these events together through his critical perspective on capitalism, highlighting the increasingly evident gap between a small elite and the masses, and advocating for systemic, democratic solutions.

Key Discussion Points & Insights

1. European Struggles Against Austerity (00:54 – 07:48)

• Wolff recounts recent general strikes in Greece and political developments in Portugal as evidence that resistance to austerity and inequality is intensifying.
• Greek people remain defiant even after the left-wing Syriza government reverted to austerity policies under European pressure.
• Portugal’s new Socialist/Communist/Green coalition faces similar tensions, elected on an anti-austerity platform but showing signs of compromise.

Quote [04:32]:
“Big money, big capitalists, huge banks, and the governments they control on the one side and the mass of people getting angrier and more determined … The struggles of Europe are heating up yet again.”
—Richard Wolff

2. The U.S. Obesity Crisis: Economic Roots & Corporate Distortion (07:48 – 15:57)

• Wolff reviews data showing 38% of Americans are obese, with rates higher among those with lower income and less education.
• He discusses the University of Colorado’s return of Coca-Cola funding after revelations that the company sponsored misleading research minimizing the connection between sugary drinks and obesity.
• He highlights the corrupting effect of corporate money in public health narratives.

Quote [13:01]: “Where does Coca-Cola get the $120 million to fundamentally mislead us …? Where they get the money is from selling us Coca-Cola. Part of what you pay for … is the propaganda …”
—Richard Wolff

3. University of Missouri: Economic and Racial Solidarity (15:57 – 25:55)

• The University of Missouri incident is recounted: administration (brought in to "run it like a business") cut graduate student health insurance, sparking staff and student anger.
• African-American student athletes, joined by white allies, threatened to boycott football games, threatening major revenue loss and prompting administrative change.
• Wolff frames it as a lesson in solidarity and collective action with both racial and economic dimensions.

Quote [24:40]: “That unity made it impossible for the university, business-run, to continue business as usual. And that’s an important straw in the winds of change sweeping across the United States.”
—Richard Wolff

4. Retailer Manipulation & Worsening Consumer Reality (25:55 – 29:48)

• JCPenney settled a $50 million class action for falsely advertising sale prices.
• Macy’s announces real discounts due to poor sales—evidence that most Americans are still struggling and lack real purchasing power.
• Wolff concludes: For those with money, bargains await, but the lack of a true economic recovery for the majority is only becoming more evident.

5. The TPP: Corporate Deals Above Public Interest (29:48 – 34:13)

• Wolff explains the Trans Pacific Partnership (TPP) as a “deal between corporations and the governments they already buy and control,” serving business—not people.

Quote [33:38]: “You can do it, but believe me, what you'll end up with… is an arrangement that is good for corporations, good for governments who pander to them, and will have nothing to do with either the ecological, environmental, economic or any other interests of the average people.”
—Richard Wolff

6. Fed Debates: The Irrelevance of U.S. Interest Rate Drama (37:35 – 47:19)

• Wolff provides an in-depth but accessible explanation of why the years-long debate about U.S. interest rates is more spectacle than substance.
• He argues the Federal Reserve’s moves have little impact on the deep structural failings of American capitalism, primarily benefiting the top 5% and leaving the majority behind.
• The real debate, he insists, should be about the system itself—not which policy marginally helps or hurts competing corporate interests.

Quote [47:02]: “We should be talking about an economic system that isn’t working for the majority of people … They run the government, and they will decide in their own ways when or where or whether to raise or lower interest rates … We have a bigger fish to fry.”
—Richard Wolff

7. Gentrification: A Symptom of Structural Inequality (47:19 – 57:51)

• Gentrification is analyzed as the inevitable result of widening wealth gaps driven by capitalism, with the rich displacing everyone else from desirable urban areas.
• The demand for low-wage domestic workers creates pockets of poverty next to extreme wealth, replicating economic divides at the neighborhood level.
• Wolff argues that tweaking regulations (rent control, zoning) cannot overcome the root cause: undemocratic distribution of income and wealth.

Quote [55:43]: “The underlying inequality is constantly undermining the rules and regulations ... Much the better solution would not be another rent control law, another zoning ordinance ... Better would be not to distribute income and wealth so unequally in the first place.”
—Richard Wolff

8. Systemic Solutions: Building Economic Democracy (Throughout, esp. 35:14-37:35)

• Wolff discusses worker cooperatives and democratic enterprise as real alternatives, mentioning partnerships and resources available for those seeking to convert businesses to worker ownership.

Notable Quotes & Memorable Moments

• On the connection between education, income, and health:
  “So cutting back on higher education, making higher education costly in the United States, is in fact contributing to obesity and a danger to the health and welfare of the American people. It is something that economics has a lot to say about.” —Richard Wolff (09:37)

• On the ‘business logic’ overtaking education:
  “The reasonable thing to run like a business would be, you guessed it, a business. And a university, last I noticed, wasn’t a business. It’s not producing and selling things. It’s trying to educate people, which is a different activity …” —Richard Wolff (16:55)

• On retail “discounts”:
  “J.C. Penney proves that your suspicions were—and likely continue to be—right. Spot on.” —Richard Wolff (28:00)

• On the futility of the interest rate debate:
  “No one knows exactly what will happen if you raise interest rates. So all of this is more or less educated guesswork … But will the raising of interest rates fundamentally change the way this economy works? And the answer is unambiguously: very, very unlikely.” —Richard Wolff (41:20)

Timestamps for Important Segments

• 00:54 — Greek general strike and European anti-austerity struggles
• 07:48 — U.S. obesity rates, link to income/education, Coca-Cola’s influence on science
• 15:57 — University of Missouri protests: labor and racial alliances, outcome
• 25:55 — JCPenney/Macy’s: deceptive discounts, retail pain
• 29:48 — TPP explained as a corporate power play
• 37:35 — Interest rate debate dissected: who benefits, who suffers, and why it’s a sideshow
• 47:19 — Gentrification analyzed: roots in inequality, solutions in systemic change

Tone & Style

Wolff’s delivery is direct, accessible, wry, and passionate, blending data, historical context, and pointed critique. He often breaks down complex issues in plain terms and urges listeners to join him in considering democratic, collective solutions.

Summary

Richard D. Wolff’s “Economic Power Struggles” maps a global and local landscape marked by mounting resistance to austerity, manipulation by the corporate elite, and the systemic failures that beset contemporary capitalism. By moving from Greek strikes to American universities and urban housing crises, he connects the dots between education, health, injustice, and inequality, offering a compelling argument for a more democratic and equitable economic order and arming listeners with insights to navigate—and challenge—the power struggles around them.