Economic Update with Richard D. Wolff

Episode: Fighting the System
Date: February 28, 2019
Host: Richard D. Wolff

Episode Overview

In this episode of Economic Update, Richard D. Wolff explores the ongoing global and domestic wave of resistance against the current economic system, which he sees as outdated and increasing in its inequalities. By examining recent events—including immigration crackdowns, labor strikes, and protests against profit-driven health care—Wolff highlights the rising momentum of popular and worker-led movements fighting systemic injustices in the U.S., France, and Mexico. He also scrutinizes policy changes like the estate tax, contextualizing them within the broader struggle over who holds economic power and freedom in society.

Key Discussion Points & Insights

1. The Immigration Debate and its Economic Roots

[00:10–10:45]

• Main Argument: The U.S. immigration debate is fundamentally about employers seeking cheap labor—a longstanding corporate tactic in capitalist economies.

• North Carolina Stand-off: Mecklenburg and Wake counties refuse to work with ICE, leading to aggressive raids and deepening societal divisions.

• Economic Analysis:

  • Employers benefit from undocumented immigrants due to their vulnerability and ability to be exploited.
  • “Employers have three basic ways to make more profits at the expense of their employees. One, move out of the United States… Second, bring the lower wage workers here. Third is automation.” (Wolff, 07:45)

• Political Manipulation:

  • Grievances of native-born workers (low wages, disrespect) are redirected by politicians towards immigrants, not employers.
  • “This is a made to order opportunity. What you do is you take the accumulated grievances of native born workers and you focus them...on the immigrants...” (Wolff, 05:05)

• Wolff’s Conclusion:

  • The issue isn't immigrants; it's a profit-driven system that exploits all workers in different ways.
  • “Don’t be fooled. The immigrant is not the problem, never was. It’s a system that has all these alternative ways to stick it to the mass of workers.” (Wolff, 09:45)

2. France’s Yellow Vest Movement and Labor Solidarity

[10:46–16:25]

• Yellow Vests' Achievements:
  • Mass protests force French government to repeal a fuel tax, improve pensions, and raise the minimum wage.
• Labor Union Alliance:
  • On February 5, France’s largest labor federation calls a general strike and unites with Yellow Vest protestors.
  • “That’s the death knell of Mr. Macron’s government… the merger of a mass popular movement with the largest labor union movement.” (Wolff, 12:50)
• Takeaway:
  • Popular movements, when joined by organized labor, become an unstoppable political force.

3. Protesting Profit in Healthcare: Nan Goldin and the Sacklers

[16:26–19:50]

• Activism Spotlight:
  • Artist Nan Goldin and her group PAIN (Prescription Addiction Intervention Now) protest museums honoring the Sackler family, owners of Purdue Pharma (OxyContin).
• Critique of Profit-Driven Healthcare:
  • Profit motives drive pharmaceutical companies to market dangerous drugs aggressively for profit.
  • “That’s what happens when you allow your health system to be involved with profit, to capitalistically run your health system.” (Wolff, 18:00)
  • Calls for systemic change so that “profit making and health don’t go well together and they never have.” (Wolff, 19:20)
• Broader Message:
  • The problem is not just Purdue and the Sacklers, but a system incentivizing harmful behaviors via the pursuit of profit.

4. New York's Protections for Fast Food Workers

[19:51–24:20]

• NYC Council Bill:
  • Proposed legislation would require fast food employers to show cause for firing employees (affecting ~60,000 workers).
• “Competing Freedoms” in Capitalism:
  • Employer’s freedom to fire at will vs. employee’s freedom to job security if they perform.
  • “The majority are employees, not employers… whose freedom should rule is the problem, and capitalism is the system that makes that problem acute.” (Wolff, 23:45)
• Workers Fighting Back:
  • Workers are pushing politicians for systemic change—an example of rising worker activism.

Second Half Topics

5. Workers' Movements in Mexico

[28:32–36:05]

• Maquiladora Strikes:

  • Mexican factory workers strike in border industries, win bonuses and wage hikes (the "2032 movement": 20% pay raise, 32,000 peso bonus).
  • “This is a profound successful labor movement in Mexico, one that Americans… should envy, should admire and should recognize.” (Wolff, 34:10)

• Obrador’s Labor Reforms:

  • Minimum wage in Mexico increases by 16% nationwide, and doubles along the border.
  • Striking is harder in Mexico than the U.S., yet success is being achieved.

• Drug Trade & the Wall:

  • Wolff argues that attacking Mexico for drugs is simplistic: the U.S. demand and profit system are core drivers.
  • The border wall and the El Chapo trial are distractions from these deeper causes.
  • “You haven’t dealt with the cause of the problem. You haven’t dealt with the production of the drugs. You haven’t dealt with the demand for the drugs. This is a pathetic failure…” (Wolff, 35:50)

6. The U.S. Estate Tax: From Social Mobility to Hereditary Wealth

[36:06–end]

• History & Philosophy:
  • Estate (inheritance) taxes were designed to promote equal opportunity—limiting inherited wealth and leveling the playing field.
  • “The whole idea was…that it isn’t fair that one baby starts with a silver spoon in its mouth and the other with nothing to eat…” (Wolff, 36:20)
• Recent Changes Benefit the Rich:
  • 2017 tax reform doubled exemption (now a couple can leave $22M tax-free; above that, taxed at 40%).
  • “That’s a gift to the richest people in this country. An immense gift… Those who need it least got the biggest gain out of that tax reform.” (Wolff, 39:50)
• Consequences:
  • Wealth remains concentrated, thwarting social mobility.
  • “We are doing to the richest of America what monarchies used to do for the king who left it all to his son, the prince who left it all to his son, the prince forever… There is no equal opportunity.” (Wolff, 41:00)
  • This entrenches economic class and deepens national divisions.

Notable Quotes & Memorable Moments

• On scapegoating immigrants:

  “Don’t be fooled. The immigrant is not the problem, never was. It’s a system that has all these alternative ways to stick it to the mass of workers.”
  (Wolff, 09:45)

• On the Yellow Vests and labor:

  “The merger of a mass popular movement with the largest labor union movement...is a force that no president has been able to long resist.”
  (Wolff, 12:50)

• On profit and the opioid crisis:

  “That’s what happens when you allow your health system to be involved with profit, to capitalistically run your health system.”
  (Wolff, 18:00)

• On “competing freedoms” in the workplace:

  “The majority are employees, not employers… whose freedom should rule is the problem, and capitalism is the system that makes that problem acute.”
  (Wolff, 23:45)

• On Mexico’s labor movement:

  “This is a profound successful labor movement in Mexico, one that Americans… should envy, should admire and should recognize.”
  (Wolff, 34:10)

• On entrenching inherited wealth:

  “We are doing to the richest of America what monarchies used to do... There is no equal opportunity. Less than there was in the past and it wasn’t great in the past either.”
  (Wolff, 41:00)

Timestamps for Important Segments

| Topic | Timestamp | |-----------------------------------------|--------------| | Immigration: Economics & Political Use | 00:10–10:45 | | France’s Yellow Vest Movement | 10:46–16:25 | | Profit in Healthcare & Sackler Protests | 16:26–19:50 | | NYC Fast Food Worker Protections | 19:51–24:20 | | Mexico: Labor Militancy & Reforms | 28:32–36:05 | | Estate Tax & Wealth Concentration | 36:06–end |

Tone & Style

Richard D. Wolff's tone throughout the episode is direct, critical of the status quo, and intellectually rigorous, with a focus on systemic analysis rather than individual blame. He emphasizes solidarity, collective action, and the urgent need for foundational change to address contemporary economic injustices.

Summary Conclusion

This episode serves as both an exposé and a call to action, framing recent global and local activism as responses to deep-rooted, profit-driven inequalities. Wolff encourages listeners to recognize the importance of these movements and to question a system that favors the few over the many—whether in immigration, labor, health, or inheritance.