Economic Update with Richard D. Wolff

Episode Title: Economic Update: Ecosocialism
Date: January 10, 2019
Host: Richard D. Wolff
Guest: Victor Wallis, author of "Red-Green: The Politics and Technology of Ecosocialism"

Episode Overview

This episode dives into the rising concept of ecosocialism—the fusion of ecological and socialist politics. Richard D. Wolff opens with sharp commentary on recent U.S. economic events, critiquing the capitalist approach to public issues such as military funding, gig economy labor practices, and environmental transition. The second half features an in-depth interview with Victor Wallis, who elucidates ecosocialism’s intellectual roots, the resistance it faces, and the systemic changes required to address the twin crises of capitalism and environmental degradation.

Key Discussion Points & Insights

I. Economic Updates and Critical News (00:10–15:52)

• U.S. Defense Budget Machinations (00:10–03:55)

  • Wolff critiques President Trump’s handling of the defense budget, highlighting the routine practice of politicians yielding to military interests.
  • Quote: "Mr. Trump, who promised to be different... is here doing what all other politicians have in fact [done], namely, give the government, and particularly the military pretty much what it wants." (02:21)

• Regulating the Gig Economy: Uber and Lyft (03:56–06:28)

  • Discusses NYC’s move to set a minimum wage for ride-hailing drivers—mirroring historic regulation of taxi drivers.
  • Asserts the “gig economy” is often a workaround to escape labor standards for profit.
  • Quote: "All the talk about gig economy, sharing economy and technological breakthrough was so much verbiage to pull a stunt to make money." (06:13)

• Charter Schools & Labor (06:29–08:36)

  • Notes charter schools mirror public schools in underpaying teachers—leading to strikes.
  • Critiques privatization and erosion of public educational values.

• U.S.-China Economic Tensions (08:37–12:23)

  • Summarizes David Goldman’s Asia Times piece: U.S. resistance to China’s technological ascent, with cases like the Huawei executive arrest.
  • Highlights reciprocal risks for U.S. tech if other nations apply similar security concerns.

• Volkswagen’s Shift to Electric Cars (12:24–15:52)

  • Discusses VW’s plan to end gas-powered vehicles by 2026 and the economic disruptions it will trigger (e.g., loss of gas stations).
  • Argues capitalism focuses on profitable electric cars, not systemic solutions like mass transit, which have wider social benefits.

II. Interview: The Meaning and Urgency of Ecosocialism

Guest: Victor Wallis (Starts at 16:04)

What is Ecosocialism? (16:06–17:51)

• Wallis explains: "It combines the idea of ecology with that of socialism... both of them clash with the idea that production decisions should be made on the basis of profit." (16:27)
• Notes that human and environmental interests are inseparable, though “eco-” is used for emphasis given historical developments.
• Capitalist prioritization of profit leads to environmental and social harm.

Impact of Scientific Reports on Ecosocialist Thought (17:52–19:56)

• Wallis: Scientific findings underscore longstanding ecosocialist critiques; oil companies, like tobacco companies, have long known the dangers and deliberately obscured the truth.
• Quote: "It's not just reckless homicide. It corresponds to an actual murder, I mean, of the planetary system... the level of criminality... is incalculable." (19:27)

Movement-Building and Obstacles in the U.S. (19:57–22:45)

• Denialism, particularly in the U.S., serves to keep the public confused and politically immobilized—a reaction driven by political and capitalist interests.
• The U.S., Russia, Saudi Arabia, and Kuwait notably reject climate science due to oil dependency.
• Quote (Wolff): "You couldn't have a starker kind of, on the one hand, the world, on the other hand, people producing the world..." (21:50)

The Role of Government and Political Parties (22:46–26:35)

• Wallis: Trump’s outright rejection ("I don't believe it") is a performance for capital interests. Denial serves to maintain a profitable status quo, even if privately acknowledged as false.
• Both parties, especially Democrats, have only marginal policy differences and, in practice, continue to support extractive capitalism (e.g., support for fracking).
• Quote: "The difference at the level of the party is minimal... There's sort of individuals... who may make more of a protest, but that is almost like a token." (26:08)

Where Will Change Come From? (26:36–28:26)

• The movement for ecosocialist change must come from the working class, as the capitalist class is structurally opposed to environmental reform.
• Wallis points to the overlap between frustrated working-class Trump voters and previous Bernie Sanders supporters as evidence of a base for progressive, systemic change.
• Issues like “environmental racism”—the concentration of ecological harm in communities of color—could galvanize support.

Notable Quotes & Moments with Timestamps

• On Defense Spending:
  "The military and the business—politicians know what they have to take care of before they get to anything else." (02:12)
• On Gig Economy Scams:
  "All that's happening now is once again we're learning the same. Leaving ride-hailing services to do what we originally let the taxis do is forcing us to do what we eventually had to do to the taxis as well." (05:42)
• On Ecosocialism’s Rationale:
  "We can't live without the natural infrastructure. So in one sense, it's even redundant to put the eco prefix onto it, because socialism implies that you make decisions in the interest of people." – Victor Wallis (16:40)
• On Corporate Deliberate Obfuscation:
  "[Oil companies] knew that it would cause global warming. They didn't care... So it's really. It's not just reckless homicide. It corresponds to an actual murder, I mean, of the planetary system." – Victor Wallis (19:13-19:27)
• On Political Denialism:
  "Denialism... serves a real political purpose... to keep people in a state of confusion, keep them distracted." – Victor Wallis (20:52-21:09)
• On Systemic Obstructions:
  "If you leave in power the class that currently holds power, those measures can be revoked, just as we're seeing the measures taken earlier, all the environmental protection measures being systematically undone..." – Victor Wallis (24:09)
• On Political Parties and Real Change:
  "So the difference at the level of the party is minimal... There's sort of individuals... who may make more of a protest, but that is almost like a token. I mean, it's not going to affect the actual policy." – Victor Wallis (26:08)

Important Timestamps for Key Segments

• Defense Budget Analysis: 00:10–03:55
• Gig Economy/Taxi Regulation: 03:56–06:28
• Charter Schools/Labor: 06:29–08:36
• U.S.-China Relations/Tech: 08:37–12:23
• VW/Electric Car Transformation: 12:24–15:52
• Introduction to Victor Wallis and Ecosocialism: 16:04–17:51
• Impact of Science and Corporate Obfuscation: 17:52–19:56
• Denialism and U.S. Political Resistance: 19:57–22:45
• Party Politics on Environment: 22:46–26:35
• Base for Ecosocialist Movement: 26:36–28:26

Summary Tone & Style

Richard D. Wolff delivers with his characteristic clarity and critical perspective, challenging capitalist orthodoxies and exposing contradictions in mainstream economic logic. Victor Wallis responds in a grounded, analytical manner, articulating ecosocialist arguments in accessible but uncompromising terms. The discussion is urgent, evidence-based, and reinforces the need for systemic change.

Takeaway

This episode is a compelling case for ecosocialism—not just as a niche perspective but as a necessary framework to address the environmental crisis. Wolff and Wallis make clear that piecemeal reform under capitalism will always fall short and that genuine solutions demand both ecological and systemic economic change, rooted in mass, working-class action.