Economic Update with Richard D. Wolff
Episode: Escape from Labor in Capitalism
Date: December 16, 2016

Episode Overview

In this episode, economist Richard D. Wolff explores the ways economic systems shape both daily life and cultural imagination, with a particular focus on why so many seek "escape" from labor under capitalism. The first half covers topical economic issues—U.S. defense spending, inequality, corporate tax policy, and the impact of Trump’s economic promises—while the second half delves into cultural engagement with work through a discussion with sociologist Dr. Kristen Lawlor, author of The American Surfer: Radical Culture and Capitalism in 20th Century America. Together, they discuss the roots of popular fantasies of escape, what these say about our relationship to work, and the possibilities for revitalizing the labor movement by reimagining freedom from work.

Key Discussion Points and Insights

I. Defense Spending and Entrenched Interests ([00:45]–[09:00])

• U.S. Defense Spending Outpaces the World
  • The U.S. officially spent $622 billion on the military in 2016, more than the next nine top-spending countries combined.
  • China is second at $191 billion; Russia, often portrayed as a primary adversary, spent only $49 billion.
• Quote:

  "The United States spends more money on the military than the nine other countries in the top ten combined." – Richard Wolff [05:18]

• Entrenched Military-Industrial Interests
  • Defense spending is deeply tied to domestic politics: bases and factories are spread nationwide to ensure Congressional support.
  • Even when the Pentagon requests less, Congress often refuses, prioritizing local economies over actual military need.
• Eisenhower’s Warning
  • Wolff highlights Eisenhower’s unheeded warning about overreliance on the “military-industrial complex.”

II. Comparing U.S. and French Inequality ([09:10]–[19:30])

• Divergence in Gains for the Bottom 50%
  • Since 1980, France’s bottom half saw 32% real income growth; the U.S. bottom half saw none.
  • Both nations experienced globalization and automation, signaling structural factors at play.
• Reasons for French Resilience
  • Higher minimum wage, greater union power, better public education, and stronger political representation empower French workers.
• Quote:

  “The French have a much higher minimum wage than the United States. The French have a much stronger labor union movement…And as a result…the bottom half has done better.” – Richard Wolff [13:40]

• Commentary
  • In the U.S., weaker unions (only 7% of private sector workers unionized), lower minimum wages, and underfunded education contribute to stagnation.

III. Trump’s Corporate Tax Cuts and the “Race to the Bottom” ([19:45]–[25:40])

• Trump’s Promise: Lower Corporate Taxes to Retain Jobs
  • Proposes dropping the corporate tax rate from 35% to 20% or 15%, arguing this will keep or return business to the U.S.
• Other Nations’ Response:
  • Wolff points to Israel dropping corporate taxes to 6% as evidence of global tax-cutting competition.
• “Race to the Bottom”
  • This global competition will strip governments of revenue, reducing capacity to fund public needs.
  • Quote:

    “Corporations everywhere will get less taxation and the rest of us will get screwed.” – Richard Wolff [24:40]

• Critical Reflection:
  • The benefit accrues to corporations, while public services and workers suffer.

IV. Parental Leave: IKEA vs. U.S. Norms ([25:45]–[30:00])

• IKEA Sets U.S. Benchmark for Paid Parental Leave
  • IKEA will offer 18 weeks of paid parental leave to all its 13,000 U.S. workers, regardless of gender or parental status (biological, adoptive, foster).
• Context: U.S. Lags Abroad
  • By comparison, IKEA workers in Sweden receive 68 weeks.
  • The U.S. is the only major industrial country without a law requiring paid parental leave.
  • The absence is contrasted with “family values” rhetoric prevalent in American political culture.
• Quote:

  "In the United States, lower wage workers often get less or no paid leave. Walmart…offers some paid leave to salaried employees, but none to its hourly wage earning employees." – Richard Wolff [28:45]

V. Trump’s Intervention in Corporate Offshoring (Carrier Example) ([30:00]–[34:00])

• Carrier and Trump:
  • Trump claimed credit for persuading Carrier not to move 2,100 jobs to Mexico; reality: 800 jobs saved, rest went abroad.
• Political Theater vs. Reality
  • First presidential intervention after 40 years of bipartisan neoliberal economic policy; promises of more intervention, but long-term effectiveness questioned.
• On Neoliberalism:
  • Both Democrats and Republicans supported a “hands-off” approach to the economy, enabling offshoring and automation.
• Analysis:
  • When public resistance emerges, capitalists adapt; curbs on offshoring will lead to shifts in profit-seeking elsewhere.

VI. Interview: Dr. Kristen Lawlor on Cultural Fantasies of Escape ([30:44]–[57:09])

a. The Surfer Archetype as Escape ([31:35]–[38:36])

• Surfer Image and Escapism
  • Lawlor discusses how, during periods of growing social and economic anxiety (since the late 20th century), surfer imagery and culture—youthful, carefree, anti-authoritarian—captured imagination as a form of vicarious escape.
• Parallel with Trump’s Populist Appeal
  • Trump himself, with his “bad boy” image and open disdain for business orthodoxy, personifies rebellion against corporate and political elites, appealing to escapist fantasies.
• Quote:

  "Telling the boss to f-off is something that I think people really identify with…It’s a dream of a certain kind of power." – Kristen Lawlor [34:27]

b. Escapism as Critique of Work ([38:36]–[43:46])

• Alienation and Desire to Refuse Work
  • Lawlor connects Marx’s theory of alienation with the broad desire in American culture to “escape” labor, as seen in the persistent fantasy of surfing and leisure.
• Advertising and Co-optation
  • Commercial capitalists regularly use anti-work and leisure fantasies to sell products, even as economic conditions worsen for most.

c. Redefining Labor Movement Strategy ([41:18]–[54:42])

• Turning Fantasies into Collective Power
  • Lawlor suggests that the labor movement should harness these fantasies, advocating for shorter hours, shared work, increased leisure, and workplace democracy instead of mere job protection.
• Quote:

  "What if we started thinking about the refusal of work that is so powerful in popular culture…what if the labor movement…the left did the same thing?" – Kristen Lawlor [42:38]

• Critique of “Jobs Fetish”
  • The union movement’s focus on “jobs” rather than freedom and quality of life limits its appeal. Historically, radical labor figures (the Wobblies) were called “slackers” for refusing pointless work.
• Supply and Demand of Labor
  • Reducing labor supply through collective refusal can empower workers by increasing wages and leverage.

d. Cultural Politics of Non-Work ([49:10]–[56:01])

• Food Stamp Surfer and Mediterranean Fantasy
  • Media use outlier stories to stoke resentment against “idleness,” but Lawlor points out this resentment reveals a suppressed longing for leisure in the wider population.
• Solidarity over Resentment
  • Instead of dividing workers, Lawlor argues for seizing the aspiration for freedom from drudgery as a tool for building collective worker power.

VII. Closing Reflections ([56:05]–[57:09])

• Wolff’s Conclusion
  • Economic statistics (recent wage drops, benefit cuts) show that more jobs alone won’t address the deep-rooted alienation and hardship workers face.
  • Real solutions require addressing the system’s core logic, not just its symptoms, and integrating cultural with economic analysis.
• Quote:

  "The focus on jobs is not going to solve the misery of the American working class, not even close." – Richard Wolff [56:48]

Notable Quotes & Timestamps

• On Defense Spending:
  "The United States spends more money on the military than the nine other countries in the top ten combined." – Richard Wolff [05:18]
• On Inequality:
  "The French have a much higher minimum wage... The French have a much stronger labor union movement." – Richard Wolff [13:40]
• On Corporate Tax Cuts:
  "Corporations everywhere will get less taxation and the rest of us will get screwed." – Richard Wolff [24:40]
• On Parental Leave:
  "Most American large companies that have employees in the thousands give their workers no paid leave." – Richard Wolff [28:20]
• On Trump’s Appeal:
  "Telling the boss to f-off is something that I think people really identify with...It's a dream of a certain kind of power." – Kristen Lawlor [34:27]
• On The Fantasy of Escape:
  "It's this fantasy image of escape and really escape from work. It's an image that taps into what I see as a really latent kind of desire to refuse work and to refuse the unbelievable speed up that has happened..." – Kristen Lawlor [38:36]
• On Worker Power:
  "Our intervention... needs to be informed by a much more countercultural sensibility about freedom and the refusal of work." – Kristen Lawlor [53:47]
• On the Limits of Job Focus:
  "The focus on jobs is not going to solve the misery of the American working class, not even close." – Richard Wolff [56:48]

Important Timestamps

• [00:45] U.S. Defense Spending and Entrenched Interests
• [09:10] Comparison: U.S. vs. French Inequality
• [19:45] Trump Tax Reform and The Global Race to the Bottom
• [25:45] Paid Parental Leave: IKEA and U.S. Policy Failure
• [30:00] Trump’s Corporate Intervention (Carrier Example)
• [30:44] Introduction of Dr. Kristen Lawlor
• [31:35] Surfers, Escapism, and Capitalism
• [38:36] Fantasies of Escape: Cultural and Political Resonance
• [41:18] Harnessing the Desire for Freedom in Labor Strategy
• [49:10] Food Stamp Surfer and the Cultural Politics of Non-Work
• [56:05] Conclusion: Wages, Jobs, and the Need for Systemic Change

Takeaways for Listeners

• Economic struggles are deeply intertwined with cultural narratives and desires for escape—often exploited by commercial and political interests.
• Revival of the labor movement and left politics may require embracing not just better jobs, but the collectively shared vision of freedom from exploitative work.
• Radical change is possible when economics is enriched by cultural critique and imaginative possibilities for a different society are seriously considered.

Guest: Dr. Kristen Lawlor, Associate Professor of Sociology, College of Mount Saint Vincent
Host: Richard D. Wolff

[For further resources, visit: rdwolff.com | democracyatwork.info]