Economic Update with Richard D. Wolff
Episode: "Economics and Family Values"
Date: May 4, 2017
Overview
In this episode, Richard D. Wolff explores the often-contradictory relationship between the rhetoric of "family values" in the United States and the actual economic realities undermining families, particularly through government policy and economic systems. He is joined by Dr. Harriet Fraad, a mental health counselor, for an in-depth discussion on how economic structures and political choices impact family life, support systems, and broader social well-being.
Key Discussion Points & Insights
1. Political and Economic Updates
a. French Presidential Election
- Wolff provides context on the 2017 French presidential runoff between Marine Le Pen (right-wing, nationalist, anti-immigrant) and Emmanuel Macron (centrist, establishment).
- Parallel to U.S. Politics: The rise of left-leaning candidates (Jean-Luc Mélenchon in France, Bernie Sanders in the U.S.) signals growing disaffection with the political establishment.
- Notable Quote:
"It's the beginning of the shaping up of a left wing that is becoming confident enough that it can and should build its own political operation, its own political party, and not be simply always choosing between what other parties provide them with alternatives." (09:56)
b. Obama’s $400,000 Wall Street Speech
- Wolff discusses Barack Obama accepting a $400,000 fee from Cantor Fitzgerald, an investment bank.
- He highlights the bipartisan nature of financial sector donations, regardless of candidate ideology, as evidence of establishment allegiance across U.S. politics.
- Notable Quote:
"That's the very reason why people on the left...and people on the right look upon the establishment...as their problem and the problem that they have to solve." (15:35)
c. Corporate Taxes: The Reality vs. Rhetoric
- Contradicts the narrative that U.S. corporations are overburdened by taxes.
- The "effective" corporate tax rate is far lower than the official rate, with the U.S. among the lowest in the industrialized world.
- Notable Quote:
"The notion that our capitalist corporations can't compete in the world because of the tax rate is simply nonsense. And no amount of repeating it changes that, unless you don't want to believe it in the first place." (20:46)
d. Wells Fargo Scandal
- Reviews the Wells Fargo fake accounts scandal and points to the power of wealthy shareholders like Warren Buffett, who protected the existing board.
- Notable Quote:
"A single man made a decision. And we allow in our society a single man to make a decision. And because he has a lot of money, he can keep in power a bank that has literally violated the fundamental trust of the people..." (25:44)
e. Corporate Profits Sheltered Overseas
- Explains how corporations keep profits overseas to avoid U.S. taxes, then borrow domestically at low rates to reward executives and shareholders.
- Critiques proposed "tax holidays" as fraudulent, benefiting the wealthy rather than general employment.
- Notable Quote:
"To take seriously the arguments for corporate tax cuts is to be gullible and to be at the play of the people who are running this system for their own immediate benefit. End of story." (29:55)
2. Feature Segment – Interview with Dr. Harriet Fraad: The Economics of Family Values
(Begins at 30:58)
a. Contradictions Between Family Values Rhetoric and Economic Reality
- The U.S. celebrates family values rhetorically while enacting policies that systematically undermine families through lack of support, wage stagnation, and cuts to public services.
Dr. Fraad:
"Family values rhetoric is a cover for taking away government support from families. Whether it’s...public education to all children or...limit Head Start for all American children. They cite the sanctity of family values and family decisions as a reason not to support families." (33:05)
b. The Necessity of Social Support for Families
- Human beings have always lived and survived in extended social networks; the isolated nuclear family is insufficient.
- Child welfare statistics in the U.S. highlight the deficiencies caused by lack of societal support.
- Notable Statistic:
"Five American children are killed every day by their parents, overwhelmingly by their parents. They’re abused or neglected to death." (36:55)
c. Comparative International Perspective
- Compared to the U.S., other wealthy countries provide substantive support for families: subsidized daycare, parental leave, direct allowances, and medical care.
- France, for example, ensures daycare access with direct government support, with alliances for family welfare sometimes even bridging ideological divides.
- Anecdote: Wolff describes Communists and nuns uniting in France to protest daycare cuts.
"If the communists and the nuns are together, your government cannot proceed." (45:08)
d. Ideology as a Tool for Economic Policy
- The anti-tax, anti-government narrative in the U.S. is intentionally cultivated by powerful interests to justify withdrawing family support in favor of the wealthy.
- Conservative and some religious institutions provide ideological cover for this, focusing attention on moral rhetoric while enabling economic undermining.
Dr. Fraad:
"It’s masked in the language of the sanctity of the family into which the state should never intervene." (39:17)
- The major evangelical organizations (e.g., Focus on the Family) actively oppose government support systems, prioritizing their own institutional relevance.
e. Health Care and Family Security
- Health policy (e.g., the Affordable Care Act) is central to family stability.
- Republican opposition is rooted in tax relief for the wealthy, jeopardizing family health, again exposing the contradiction between rhetoric and action.
- Notable Quote:
"The babbling about family values is undercut by the reality that their tax programs are destroying the very thing they claim, perhaps in church on Sunday, to be in favor of, but they’re not." (49:04)
f. American Exceptionalism & Weakness of the Left
- Unlike other nations, the destruction of the political left in the U.S. has left a vacuum, resulting in a lack of advocacy for robust social supports.
- The absence of a strong left has allowed the ideology of individualism and corporate priorities to dominate.
Dr. Fraad:
"We successfully crushed the left in the 50s, which would have had a voice for supporting vulnerable people and supporting families. And the left has not had that voice." (52:55)
g. The Role of Religion vs. Material Supports
- Religion in the U.S. fills the gap left by absent government support, but increasingly fails to meet concrete needs.
- Dr. Fraad:
"Maybe religion was the opium of the people before. Now heroin is the opium of the people." (54:44)
Memorable Quotes & Key Timestamps
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On establishment politics and class interests:
“Those basic parties are your allies. And if you give them money, you can count on them to be friendly to you.” – Richard D. Wolff (14:40)
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On corporate tax cuts:
"Corporations have been on the receiving end of...cuts...for 50 years. They're not overdue for a tax cut. They don't need a tax cut. They have been blessed over and over again by tax cuts. It's a bit of a scandal." – Richard D. Wolff (19:16)
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On the relationship between family values and social policy:
"Families don’t exist without support...The isolated nuclear family was never capable of taking care of a child." – Dr. Harriet Fraad (34:32)
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On comparative social policy:
"France provides daycare for under threes for a dollar an hour. And then starting at 3 years old, free daycare for everyone… Every other western industrialized, wealthy country does. We are way, way behind." – Dr. Harriet Fraad (46:03)
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On the U.S. family policy failure:
"90% of Americans children who are in daycare are in programs that are not quality programs. That’s government information." – Dr. Harriet Fraad (47:45)
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On ideological manipulation:
"They had to change the whole way and make the government negative, evil, scary, intrusive, so that people would have a gut sense that they shouldn’t look for that solution." – Richard D. Wolff (52:06)
Critical Takeaways
- Rhetoric vs. Reality: "Family values" are frequently invoked in American politics as a cover for policies that undermine family well-being, driven largely by a desire to protect the wealth of the elite and maintain low taxes.
- Comparative Evidence: Other industrialized nations provide substantial, government-backed support for families, resulting in better outcomes and stability.
- The Need for Political Organization: The episode highlights the absence of a strong, organized left in the U.S., and how this vacuum shapes policy and rhetoric to the detriment of the majority.
- Religion’s Role and Limits: While religion offers community and solace, it is increasingly insufficient in the face of material deprivation and social fragmentation—a gap now sometimes filled by literal opiates.
Suggested Listening Sequence & Timestamps
- French Election & Political Parallels: 03:45–09:56
- Obama’s Wall Street Speech & Establishment Unity: 12:45–15:50
- Corporate Tax Rates Explained: 16:50–22:10
- Wells Fargo, Buffett & Corporate Governance: 22:45–26:56
- Corporate Tax Avoidance Overseas: 26:58–29:55
- Family Values Segment (with Dr. Harriet Fraad): 30:58–57:07
- Social Supports & Child Welfare: 34:12–41:24
- Global Comparison (France, etc.): 44:39–47:45
- Healthcare Debate & Family Security: 47:51–52:04
- Left’s Role and American Exceptionalism: 52:55–54:44
- Religion, Opioids, and Social Breakdown: 54:44–56:18
Tone
Throughout the episode, the tone is incisive, critical, and urgent—mixing analysis, historical comparison, and direct challenges to mainstream narratives. Both Wolff and Fraad maintain a clear, explanatory style, tempered with moments of wry, sardonic wit.
This episode is a powerful critique of the hypocrisy surrounding "family values" in U.S. policy and the material consequences of serving the interests of the wealthy over the needs of families and communities.