Economic Update with Richard D. Wolff

Episode: Economics for Labor Day

Date: September 8, 2016

Episode Overview

In this Labor Day-themed episode, host Richard D. Wolff critically examines the present state and historical treatment of labor in the U.S. and globally. He investigates media neglect of labor stories, especially in mainstream journalism, and highlights systemic issues facing workers: wage stagnation, the erosion of unions, and labor exploitation, complemented by recent events like the largest-ever global strike in India. Wolff draws on historical context, economic analysis, and memorable quotes—culminating with reflections from Albert Einstein—to ask what honoring labor truly means.

Key Discussion Points & Insights

1. Media Silence on Labor (00:00 – 06:30)

• Wolff begins with a critique of the New York Times’ Labor Day coverage:
  • No mention of labor, the holiday’s history, nor of recent significant global events such as the massive strike in India.
• Quote:

  “The New York Times on September 5, Labor Day, had absolutely nothing to say on the front page about labor... sometimes silence speaks more loudly than anything you can say.”
  — Richard D. Wolff (03:00)

2. Updates on Policies and Market Failures

a. California Senate Bill AB700—Campaign Finance Transparency (06:30 – 09:00)

• AB700 sought to shed light on "dark money" in elections; it failed by just one vote, though advocates are optimistic about future success.
• $640 million spent on ballot measures in two cycles—illustrates vast influence of moneyed interests.

b. Pharmaceutical Price Gouging – Need for Regulation (09:00 – 13:30)

• Mylan CEO Heather Bresch embroiled in scandal over anti-allergy pen price hikes and tax avoidance.
• Wolff suggests historical controls for utilities and insurance—state commissions capping returns—should extend to pharmaceuticals:
  • Quote:

    “Isn’t it time we had a serious discussion about a drug commission?”
    — Richard D. Wolff (13:10)

c. Airline Deregulation—A Cautionary Tale (13:30 – 19:00)

• After 1980s deregulation, competition shrank from 24 to 4 dominant airlines (United, Delta, American, Southwest).
  • Service quality fell, fees rose, and price collusion is suspected.
• Analysis:
  • The cycle: Competition → Concentration → Collusion → Government intervention → Deregulation, repeating at public expense.
• Quote:

  “Airlines are a perfect example of what happens when the lessons of capitalism’s functioning aren’t learned... and used to make the kind of basic changes that would stop this repetitive rip off of the mass of people.”
  — Richard D. Wolff (19:00)

3. Rising Critiques of Capitalism (19:00 – 23:00)

• Increasingly, public figures are criticizing not just individual industries, but the capitalist system itself.
• Example: Deirdre McCloskey’s defense of capitalism—argues poverty has declined globally (esp. India/China).
  • Wolff’s retort: This overlooks colonial devastation, subsequent socialist intervention, and extreme inequality in developing countries.
  • Capital flight from Western nations has devastated their own working classes while benefiting a select few abroad.

4. Albert Einstein: Why Socialism? (27:00)

• Reflecting on capitalism’s “worst evil,” Wolff quotes Einstein on the system’s “crippling of individuals” and advocates for a socially-oriented education and economy.
• Quote:

  “This crippling of individuals I consider the worst evil of capitalism... I am convinced there is only one way to eliminate these grave evils, namely, through the establishment of a socialist economy accompanied by an educational system which would be oriented toward social goals.”
  — Albert Einstein, 1949 (27:20)

5. Spotlight on the State of Labor in the U.S. (30:40 – 40:45)

a. Decline in Teacher Compensation and Support (31:00 – 34:00)

• Teachers (K–12) with advanced degrees now earn only 78% of what comparably qualified workers earn in other fields (was 91.5% in 1980).
• 243,000 fewer teaching jobs over eight years, even as student enrollment increased by 1.2 million.
• Quote:

  “If we cut back spending on that, we are in an economic sense shooting ourselves in the foot... That’s self-destructive and self-defeating.”
  — Richard D. Wolff (33:50)

b. Growth of Precarious & Irregular Work (34:00 – 35:50)

• Research (Katz & Krueger): irregular/precarious jobs rose from 10% to nearly 16% of the workforce in a decade.
• These jobs often lack benefits and security; harder for unions to organize.

c. Decline of Union Density and Power (35:50 – 39:00)

• Union membership in the U.S. fell from 30% to 11% overall; less than 7% in the private sector.
  • In contrast, France: only 8% union membership, but 98% of workers are contractually covered by union negotiations.
• Quote:

  “Over 93% of those workers have no union, are not governed by a contract or protected by one. They are without a union. Wow.”
  — Richard D. Wolff (37:50)

6. Global Labor Struggles: Case Studies (40:45 – 48:00)

a. The India General Strike—Largest in History (41:00 – 43:10)

• Up to 150 million participated (September 2, 2016)—driven by outrage at abysmal wages (e.g., $136/month minimum).
• Quote:

  “Even when you make all the adjustments for what the cost of living is in India... if you think $25 is below what a human being ought to live on for a week, then you’ve understood what the strike is about.”
  — Richard D. Wolff (42:30)

b. U.S. Example—Long Island University (LIU) Professor Lockout (43:10 – 46:30)

• LIU “locked out” professors (not a strike), denying access, pay, and cancelling health insurance after failed contract negotiations.
• Run classes with unqualified staff—an “extraordinary step,” indicating intensifying employer aggression.
• Quote:

  “These are bitter decisions. Bitter decisions. They will not be forgotten and they will have their consequences that we will all live through.”
  — Richard D. Wolff (46:10)

7. The Core Irrationalities Facing Workers: Unemployment and Exploitation (48:00 – 54:00)

a. Unemployment: Systemic Insecurity

• Unemployment is an engineered threat, keeping workers pliable and less likely to challenge poor conditions.
• Society loses: those without jobs still need goods, but are not enabled to contribute productively.
• Argues for public employment and support systems for the jobless.

b. Exploitation: Exclusion from Decision-Making

• Workers excluded from key decisions—left only with repetitive labor.
• This disempowerment feeds social alienation and undermines democracy both at work and in civic life.
• Quote:

  “Organizing production in a capitalist way exploits workers because it excludes them from important parts of a full, complete, integrated life. This used to be called the problem of alienation...”
  — Richard D. Wolff (53:00)

Notable Quotes & Memorable Moments

• On Silence as Editorial Policy:
  “Sometimes silence speaks more loudly than anything you can say.”
  — Richard D. Wolff (03:00)

• On Regulatory Commissions:
  “Yes, we need pharmaceuticals, drugs and medicines... Isn’t it time we had a serious discussion about a drug commission?”
  — Richard D. Wolff (13:10)

• On the Cycle of Capitalist Industry:
  “Many become few, relatively small become large enterprises, as the winners absorb the losers... And then they begin to take advantage of the fact that there’s such a few of them.”
  — Richard D. Wolff (16:30)

• Einstein on Capitalism:
  “This crippling of individuals I consider the worst evil of capitalism... through the establishment of a socialist economy accompanied by an educational system which would be oriented toward social goals.”
  — Albert Einstein (27:20)

Important Timestamps

• 00:00–06:30 – Labor Day in the media & introduction of main theme
• 06:30–13:30 – Policy updates (dark money, pharma regulations)
• 13:30–19:00 – Airlines, deregulation, and market failures
• 19:00–27:00 – Critique/defense of capitalism, global poverty and inequality
• 27:00–29:50 – Albert Einstein’s critique of capitalism
• 30:40–39:00 – Labor realities in the U.S.: teacher pay, precarious work, union decline
• 40:45–48:00 – Global labor actions: India strike and LIU lockout
• 48:00–54:00 – Deep problems: unemployment and exploitation

Tone & Style

Wolff’s delivery is passionate, direct, and grounded in historical and empirical context. He uses clear analogies, vivid statistics, and pointed rhetorical questions, emphasizing urgency and the need for systemic change.

Conclusion

Richard D. Wolff’s Labor Day episode lays bare the systemic challenges facing workers today, both in the U.S. and around the world. Through concrete examples, data, and reflections from prominent thinkers, he challenges listeners to see beyond individual failings and recognize fundamental issues within capitalism itself—urging both awareness and action as the true way to honor labor.