Economic Update with Richard D. Wolff

Episode Title: Historic Lessons
Date: July 12, 2018
Host: Richard D. Wolff
Guest: Elizabeth Marciano (elementary school teacher, Kanawha County, WV)

Episode Overview

This episode of Economic Update centers on exploring the systemic characteristics and failures of capitalism, drawing lessons from recent economic news—the emissions scandals across global auto companies, the decline of labor unions, and the impact of U.S. tax cuts. The second half spotlights the historic 2018 West Virginia teachers’ strike, featuring first-hand insight from teacher Elizabeth Marciano, examining how solidarity and grassroots action made their victory possible and its national implications.

Key Discussion Points & Insights

1. Corporate Emissions Scandal: A Systemic Issue

[00:30 – 02:55]

• Nissan’s admission to emissions test cheating follows similar scandals involving Volkswagen, American, and French auto companies.
• Wolff rejects the idea that national character causes such scandals; rather, it is a universal feature of capitalist incentives:
  • "The problem is capitalism. That’s why all the major auto companies have been caught doing what? Putting profits ahead of our health…” [01:14]
• Core message: The profit motive, not country, drives corporations to prioritize earnings over public wellbeing.

2. Decline of Labor Unions and Worker Disempowerment

[02:56 – 07:10]

• Cites Pew Research showing majority of Americans, especially the young, regret the decline of unions.
  • Union membership has dropped from ~33% in the 1950s to under 10% today.
• Myth debunked: The decline did not reflect public will, but the result of concentrated efforts by business and state.
• Irony highlighted: Profits—created by workers—fund campaigns undermining their bargaining power.
• Quote:
  • “Unions were victims of a concerted effort by business and the government it controls to weaken working people’s ability to get a decent job, to get a secure job.” [03:34]
• The gap between what Americans want (strong unions) and what they get (weakened labor) is a systemic outcome.

3. The 2017 Tax Cuts: Who Really Benefited?

[07:10 – 09:37]

• Tax cuts reduced the corporate rate from 35% to 21%, but the savings didn’t raise wages or create jobs.
• Use of funds:
  • Most windfall spent on stock buybacks, bolstering share prices, thus benefiting executives (whose pay is often tied to stock) and the wealthiest shareholders.
  • "They're taking the money they don't give to Uncle Sam, which therefore can't provide us with public services. And they're using that money to boost…their shares so they take home more money." [08:53]
• Worsening inequality:
  • 1% of shareholders own 65% of stock; most Americans see little benefit.
  • Tax cuts sold as public good end up fueling inequality—contrary to public preference, as shown by recurring polls.
• Summary quote:
  • “We didn’t want labor unions to disappear, and we didn’t want inequality to grow worse. And we have a government and a business community that gave us both of those things we don’t want.” [09:59]

4. Trade Wars: Protectionism v. Free Trade

[09:38 – 15:06]

• The Trump administration’s tariffs on China and subsequent retaliations mark the start of a new trade war.
• Historical context:
  • All countries, including the U.S., have long manipulated trade for national advantage.
  • “Light trucks carry a 25% tariff applied by the United States government, ready for the last 50 years. That’s why light trucks are made here, because foreigners can’t bring them in here.” [12:21]
• The cyclical pattern:
  • Profit motivations drive periods of free trade and protectionism.
  • Free trade benefits some corporations; protectionism benefits others. The underlying motive is always profit maximization, not public good.
• Key analysis:
  • The real “trade war” is a fight among capitalist interests; working people are used as rhetorical pawns but see little benefit regardless of which faction wins.
  • Automation and labor cost-cutting will intensify, with or without free trade.
• Memorable insight:
  • “Capitalism is based on saving money off of working people. It always was. And whether you’re protectionist or free trade makes very little difference.” [14:57]

5. The West Virginia Teachers' Strike: Grassroots Power and Solidarity

[15:06 – 28:27]

How the Strike Was Possible

[16:28 – 19:35]

• Elizabeth Marciano:
  • The walkout was not just a “teachers’ strike”—it was a broad coalition of teachers, service personnel, and other public employees.
  • Cross-party, cross-job collaboration was intentional, not accidental:
    • “If you want to talk to a union boss…and you’re a union member, you get up and you go look in a mirror. Because if you’re in a union, you are the ‘you’ in union.” [18:12]
  • Union action became grassroots, driven by rank-and-file communication and mutual concern in the face of state neglect.

Solidarity With Parents and Community

[19:35 – 22:17]

• Teachers’ deep commitment to students and families built trust and community solidarity.
  • “Our students are so far below the poverty line that you cannot teach just content…you have to teach the whole student. So…my job might be reading, writing, and science…but at the same time, I need to…make sure that my kids have food, that they have access to books.” [20:17]
• Community involvement stems from the inherent service orientation of public employees and the recognition of shared hardship (low pay for teachers, corrections officers, and other workers).
• This solidarity translated into broad-based support during the strike.

Lasting Impact and National Significance

[23:43 – 28:27]

• The strike inspired educators and public employees beyond West Virginia.
  • “You see signs that say, ‘Don’t make me go West Virginia on you’ because you know it’s possible.” [24:43]
• Emphasis on engagement over complacency:
  • “Anger’s fleeting… But engagement, that’s going to change your life, you can't get…away from it, and you won’t. And when you have this many people who get on fire and who get engaged, you can’t not.” [26:15]
• Politically, the movement sparked grassroots candidacies and policy debates in West Virginia.
• Ongoing vigilance and activism required:
  • “The things we fought for are not solidified yet… So to sit back now means to say, ‘Oh, well, that was a good time…’ And that doesn’t work. You have to get out, you have to be active, you have to know what’s going on, and you have to talk to other people to make sure that our health care system is addressed and that our kids are provided for.” [26:56]

Notable Quotes & Memorable Moments

• On systemic problems with capitalism:

  • “The problem is capitalism. That’s why all the major auto companies have been caught doing what? Putting profits ahead of our health…”
    — Richard Wolff [01:14]

• On unions’ demise:

  • “Unions were victims of a concerted effort by business and the government it controls to weaken working people’s ability to get a decent job, to get a secure job.”
    — Richard Wolff [03:34]

• On using tax cuts for personal gain:

  • “They're taking the money they don't give to Uncle Sam…using that money to boost their shares so they take home more money.”
    — Richard Wolff [08:53]

• On membership’s power in the union:

  • “If you want to talk to a union boss…and you’re a union member, you get up and you go look in a mirror. Because…you are the ‘you’ in union.”
    — Elizabeth Marciano [18:12]

• On activism:

  • “Anger’s fleeting… But engagement, that’s going to change your life, you can't get…away from it, and you won’t. And when you have this many people who get on fire and who get engaged, you can’t not.”
    — Elizabeth Marciano [26:15]

• On the future:

  • “The things we fought for are not solidified yet…You have to get out, you have to be active, you have to know what’s going on, and you have to talk to other people…”
    — Elizabeth Marciano [26:56]

Important Timestamps

• Nissan & emissions scandal: [00:33 – 02:55]
• Decline of labor unions: [02:56 – 07:10]
• Tax cuts and inequality: [07:10 – 09:37]
• Trade wars, tariffs, history: [09:38 – 15:06]
• West Virginia teachers’ strike begins (guest segment): [15:06]
• Strike organization and grassroots unionism: [16:28 – 19:35]
• Solidarity with families/community: [19:35 – 22:17]
• Broader impact and sustaining activism: [23:43 – 28:27]

Tone

Richard Wolff maintains an accessible, explanatory tone, combining economic critique with wry observations about “the system.”
Elizabeth Marciano speaks with colloquial warmth and passionate realism, emphasizing solidarity, humility, and perseverance of working people.

Summary

This episode uses recent events to demonstrate the recurring and systemic deficiencies of capitalism—corporate malfeasance, worker disempowerment, and rising inequality—contrasted with the transformative power of grassroots organizing, as seen in the West Virginia teachers’ strike. Listeners are left with a historical perspective as well as a contemporary example of how concerted, collective action can yield tangible victories, but only if engagement and vigilance are sustained.