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Welcome, friends, to another edition of Economic Update, a weekly program devoted to the economic dimensions of our lives. I'm your host, Richard Wolff. And let's get right to the economic updates for today. I want to talk about the economic and sometimes the political consequences of that historic government shutdown in December and January just behind us. I think there were some things that happened and lessons to be learned that are fundamental to that historic event and to the future of the United States. I want to begin by pointing out that it revealed that shutdown. Did the gap between the people who, quote, unquote, lead the United States, both its economy and its politics, and the actual condition of the mass of people. Nothing was as stark as that in my mind. Let me just give you one example. The head of JPMorgan Chase, the country's largest bank, a man named Jamie Dimon, did an absolutely extraordinary thing. Midway through the shutdown, with great fanfare and fun of the assembled Cameras, he promised $1 million of his bank's money to aid the furloughed workers. Well, I'm an economist, and I took my little pen and pencil and I figured out what $1 million would do for the 800,000 workers without pay. It would give each one of them $1.25. In other words, here was a gesture that got lots of free publicity for a big bank director, made it look like he gave a damn about what was going on and would have meant to the 800,000 workers absolutely nothing. It wouldn't have helped them buy a cup of coffee. Here's another lesson I that there are people in the labor movement who understood that that shutdown presented them with an opportunity that was extraordinary. And even though they didn't grasp it, many of them, there were some who did, and they deserve to a recognition. And I was helped in this by Bob Hennelly, a person who appears on this program often and who wrote a really good piece in Salon magazine about it. The leader in question is Sarah Nelson. She's the president of the association of Flight Attendants, the folks who help you in the airplane when you take it. She got up in front of a meeting of the AFL CIO last January 20th held in honor of Martin Luther King. She was speaking to union people about what they shared with Martin Luther King, and she said something very profound. We should have a general strike. She said. We should ask the working people of America to go out in solidarity with the 800,000 members of our fellow working class, to show our solidarity, to express our outrage that a dispute between two distant political party Leaderships should be worked out on the backs of a burden for a month of unpaid workers like ourselves. The unions didn't follow up with her suggestion, but her suggestion is very important. And as if to drive the point home, one more from the shutdown, there was enormous public support for those workers suffering through no fault of their own, not being paid for weeks on end. Lady Gaga interrupted a concert she was giving in Las Vegas in order to talk about it and received an enormous ovation from an appreciative crowd that understood. Why do I mention this? Because we missed you, me and all those who understand. We missed a chance to mobilize an enormous public outcry, a movement, an American version of France's yellow vests, that could have been mobilized by the labor movement and by all the sympathizers who would have poured into the streets to show their anger, their dismay at imposing such burdens on. On 800,000 people. It was a moment missed. But if we realize that, we won't make that mistake again, I want to talk next about a closely related matter, and that is how, in our declining capitalism that we are now living through, there are signs everywhere of change, just like that shutdown gave us signs of the sort I just mentioned. The different set of signs, just as important, includes action by school teachers. The strike that we talked about at an earlier program of the Los Angeles teachers has now been won, and there are strikes planned or in the planning process in Oakland, California, and a particular one that interests me in Denver, Colorado. It's spreading, and that's very important. Teachers are learning from the pioneering efforts of the teachers in West Virginia whose representatives we had on this program some months ago, and the others in Arkansas, in Kentucky, in states, six or seven of them, that were big victory straits for Donald Trump. The public school teachers said, no more cutting public services, no more paying us less money than a person gets who parks cars in a movie theater lot. Give us the recognition of the importance of what we do. Which is not to say that parking cars is not important, but that training the children of our society is extremely important. Recognize that support, that those teachers took real risks and they discovered in all those red states enormous public support, which is what the Los Angeles teachers discovered and what is being discovered right now by the teachers in Denver. So this is an important lesson. The wind is shifting. There's a kind of waking up, as if from a long slumber of public employees in this society. And the teachers are taking a leading position, which has happened before in history and is very important because the Teachers who are active are already models for their students and the lesson will not be lost and the long term effects of are profound. There was even another dimension of the struggle between the teachers and the city in Denver that is also a lesson to be learned in Denver. The school board threatened the union that if they went on strike, the city would report the immigrant teachers to the immigration authorities. This was obviously done to intimidate, to scare, to split the teachers between those born in the United States and those with one or another immigrant status. Here's an important lesson, actually two lessons here. Number one, it should remind you that employers are the ones who are very interested in immigrants. They're interested because they can often get the immigrant to work at a lower wage or salary than a native born person. But that's not all. They're also interested in the immigrant because they have a hold on the immigrant. They can intimidate and scare the immigrant just like the authorities in Denver did, and split them away from other workers and use them against the other workers. That's why the second important lesson is not only to understand how immigrants are used and who's responsible, but to understand that solidarity between immigrant workers and native born American workers is very important for both of them. It is very important. And don't lose sight of the following fact as well. Threatening an immigrant in this case is threatening a person, an immigrantwho's teaching children, not Mr. Trump's image of an immigrant who's got a crime problem or a drug problem or a disease problem. That's a hustle, that's a fakery. We're talking here about threatening a teacher who has given himself or herself to the enormously important task of educating the next generation of our fellow citizens. That's who's being hurt by the scapegoating of immigrants who are not the cause and not the solution to the problems of a capitalism in decline. I want finally to mention briefly that an extraordinary event happened that I think also needs a moment's commentary. Elizabeth Warren, a candidate for president, has been going after a fellow named Tim Sloan, who's the CEO of the Wells Fargo Bank. She believes that the bank, having been caught doing literally every unethical and many illegal activities over the last several years, really even beyond what the other big banks did, which is saying a lot that he oughtn't to be the head of a big bank, he has shown that he's not the one you want in such a powerful position. And while I understand her anger and I agree with her impulse, I must say I regret that she doesn't take it further. If you got rid of Mr. Sloan, but left in place all of the system that Mr. Sloan works in, whoever replaces Mr. Sloan will face the same set of inducements, the same set of rewards, the same set of risks that he did, and to expect a different outcome, to expect that the next one will not behave like all of the others did, strikes me as strange. Whatever you do to the people in charge now, if you don't change the system, replacing them with other people will. Will not solve the problem. It never has. Well, we've come to the end of the first half of Economic Update and I want to ask you and remind you, please make use of our websites. We update them and we add material to them all the time. Democracyatwork.info. that's all one word. Democracyatwork.info and our second website, rdwolf, will with two Fs. Com. Please also subscribe to our YouTube channel. It's a way of following and being able to access this program when it fits your schedule. We also remind you that by going to our websites with a click of the button, you can follow us on Facebook, Twitter and Instagram. And I want to particularly thank the Patreon community that supports us in ways that that give us the resources and the support that enable us to produce this program. Patreon.com economicupdate will get you there. Thank you very much. Stay with us. An interesting interview is right around the corner. Welcome back, friends, to the second half of Economic Update. For this show, I'm very happy to welcome to the microphones here Juliana Forlano. Some of you will remember that she's been on the program before, but I want to briefly introduce her once again. She is now the host of Waking up with Juliana. It's a program on WBAI 99.5 FM in New York City. Every weekday morning at 7 o', clock, there she is, bringing people on with telephone calls, bringing guests on. It's a remarkable program and I recommend it to you if you're in the greater New York area. She's also a senior correspondent for ACT TV covering protests and political activism for that station. Juliana also writes and performs live and multimedia political and socially conscious comedy. You can follow her on Twitter julianaforlano. That's with two N's, all one word. Welcome to the program.
