Economic Update with Richard D. Wolff

Episode: Economics and Real Issues
Date: January 4, 2016

Episode Overview

In this episode, Richard D. Wolff addresses major real-world economic issues tying together media ownership, education policy, international labor and infrastructure experiments, inflation risks, economic inequality, and the fundamentals of capitalism. With a focus on current developments in Nevada and Massachusetts, Wolff examines the systemic connections between economic power, public policy, and democracy, and offers perspectives on alternative ways to structure society and the workplace.

Key Discussion Points & Insights

1. Billionaire Media Ownership and the Illusion of a Free Press

(Starts ~07:26)

• Las Vegas Review-Journal Sale:
  Wolff discusses the recent secretive purchase of Nevada’s largest newspaper, the Las Vegas Review-Journal, by the family of billionaire Sheldon Adelson—a major figure in gaming, a right-wing political donor, and a global media owner.
  • Adelson’s purchase raised immediate concerns about editorial independence and economic control over information.
    • "If that suggests to any of you listening something called conflict of interest, well, then you're listening attentively, and I congratulate you." (09:23)
• Systemic Concerns:
  Wolff critiques broader structural issues:
  • Private owners (“whoever owns it is willing to let us have”) inevitably impose agendas, subverting the possibility of a truly “free press.”
  • Even government ownership raises concerns due to its potential to serve prevailing powers.
• Proposed Solution:
  Advocacy for a mixed-cooperative press:
  • "Why don't we make a kind of mixed story of all of this? ...a cooperative of the people who work on it and...a cooperative...of the people who read it." (13:16)
  • Suggests that worker-reader co-ops, empowered by technology, could deliver democratic, pluralistic media.
  • "We can do this and we can do a lot better than shuffling newspapers from one rich buyer to another." (15:47)

2. Nevada’s “Educational Savings Accounts” – Privatizing Public Education

(Starts ~16:03)

• Policy Details:
  Nevada now allows parents to receive ~$5,000 in public money per year to move children from public to private schools.
  • Wolff emphasizes this shifts resources away from public schools, further undermining public education rather than improving it.
    • “Now let's take a step back. There are societies in which public schools are the only schools that are permitted. Why? It's an old democratic idea. The school is a public service.” (17:40)
• Consequences:
  Deterioration of public school quality, weakening civic integration, and a narrowing of educational inclusivity.
  • “Private schools are not welcome to everybody. First of all, you have to have the money. Second of all, you have to be acceptable to whatever standards a private school establishes..." (19:44)
  • Ongoing legal challenge from Democrats and the ACLU.

3. Innovative Social Solutions from Europe

(Starts ~21:59)

• Germany’s Bicycle Autobahns:
  • Germany, Denmark, and the Netherlands are investing in “bicycle superhighways”—long, purpose-built cycle routes connecting cities and universities.
    • Example: A 5km pilot in Germany, the first part of a 100km network, removes 50,000 cars from the roads and supports e-bikes.
    • "It is an extraordinary commitment to bicycle traffic...What an interesting experiment in going beyond the automobile." (22:57)
• Sweden’s Six-Hour Workday:
  • Swedish companies and the government are experimenting with reducing the standard workday to six hours, improving productivity and worker well-being.
    • "...the last couple of hours of every day are the ones when workers show themselves to be least productive because they're tired...for a company that wants a more committed, more determined...worker, 6 hours is looking good." (24:23)
  • Wolff contrasts this with stagnant U.S. labor norms, inviting listeners to imagine what such changes might mean domestically.

4. Healthcare Co-ops and Market Realities in the U.S.

(Starts ~26:20)

• Affordable Care Act Health Co-ops:
  • Many ACA-created health co-ops have closed due to lack of profitability and insufficient government subsidy—unlike established for-profit insurers.
    • “Half of them have closed. Why? Because they're not making money, they're not profitable. And Republicans and conservative Democrats have used the fact that, that they're losing money and need subsidies from the government as an argument to close them." (26:50)
  • Wolff critiques the business-model mindset applied to essential public services.

5. Inflation and Its Uneven Impact

(29:25 – Second Half begins)

• Inflation Concerns:
  • Wolff affirms that inflation remains a risk in 2016 due to systemic instability in capitalism.
    • “Capitalism is an unstable economic situation. It's an economic system that bounces around like the proverbial rubber ball.” (30:11)
  • The Federal Reserve’s ability to prevent or contain inflation is limited, as shown by failures in the 2008 crisis.
• Who Gets Hurt?
  • The impact of inflation varies:
    • Older Americans: Most vulnerable to rising healthcare costs.
    • Younger Americans: Affected by student loan interest if rates go up.
    • Wealthier Americans: Spend most on leisure/entertainment.
    • "Americans are very different about what they spend their money on, and so they will be very differently affected if this inflation that folks are worried about with good reason, materializes in 2016." (35:41)

6. Massachusetts Bill: Taxing Wealthy University Endowments

(Starts ~36:00)

• New Legislation:
  • Massachusetts Senate Bill 1465: Wealthy institutions (>$1B endowment, e.g., Harvard, MIT) would pay 1% annually to support public education.
    • Wolff contextualizes this historically: universities once got tax breaks as poor, community-serving institutions, but have since become vast untaxed business empires.
      • "Places like Harvard really aren't universities with an endowment. They're better understood as an endowment with a university attached..." (38:41)
    • “That's called Robin Hood upside down. That's taking from the poor to give more to the rich. It is outrageous, and I don't mind saying so.” (43:13)
  • The bill is presented as a small corrective to a much larger social injustice.

7. What Is Capitalism? Economic Systems Compared

(Starts ~47:24)

• Wolff introduces a comparative analysis of economic systems:
  • Slavery: Master owns slave, controls output/lives.
  • Feudalism: Lord oversees serfs, who owe labor/service due to land ties (not owned).
  • Capitalism: Employer-employee relationship; legal independence, but with power imbalances.
    • "The single most important thing to understand about capitalism as an economic system has to do with the relationship between people in the process of producing the goods and services we all depend on.” (47:27)
• Sets stage for continued discussion on capitalism and its alternatives in future episodes.

Notable Quotes & Memorable Moments

• On Media Ownership:
  “There is no free press if the press isn't free of economic control. This would be true no matter who owned the press.” (12:26)

• On Private vs Public Education:
  “Private schools undo all of that. Private schools are not welcome to everybody...” (19:44)

• On Tax-Free University Wealth:
  "That's called Robin Hood upside down. That's taking from the poor to give more to the rich. It is outrageous, and I don't mind saying so." (43:13)

• On Capitalism’s Stability:
  “Capitalism is an unstable economic situation. It's an economic system that bounces around like the proverbial rubber ball.” (30:11)

Timestamps of Important Segments

• 07:26 – 15:47: The “free press” and media ownership by billionaires
• 16:03 – 21:59: Nevada’s public money shift to private education
• 21:59 – 26:12: European innovations: bike superhighways, six-hour workday
• 26:20 – 29:25: U.S. health co-ops and the logic of profit in public services
• 29:25: Show resumes – new year, listener questions
• 30:11 – 35:41: Inflation risks and its unequal effects by demographic
• 36:00 – 45:24: University endowments, tax exemptions, and new Massachusetts legislation
• 47:24 – End: Defining capitalism in comparison to other systems

Tone and Delivery

Richard Wolff’s delivery is incisive, skeptical of mainstream narratives, and passionate about economic justice. The language is direct, accessible, and often laced with irony and historical reference, inviting listeners to question accepted wisdom and engage with systemic solutions.

Summary For New Listeners

This episode is a sweeping tour of how economic power is wielded—in news media, education, tax policy, and public services. With examples from Nevada, Massachusetts, and Europe, Wolff breaks down how private interests shape outcomes, what systemic alternatives might look like, and why fundamental reform is urgently needed. The episode is particularly valuable for listeners seeking to understand the connections between democracy, economics, and everyday life—and features proposals and perspectives rarely heard in mainstream outlets.