Economic Update with Richard D. Wolff
Episode: Human Rights v. US Water Economics
Date: August 24, 2017
Host: Richard D. Wolff
Guest (Interview segment): Rob Robinson, National Economic and Social Rights Initiative (NESRI)
Episode Overview
This episode of Economic Update explores the fundamental contradiction between the human right to water and the realities of water access, affordability, and safety in the United States. In the first half, Richard D. Wolff delivers his signature economic analyses, touching on topics including the fracturing of political coalitions, corporate tax avoidance, declining U.S. life expectancy, corporate malfeasance in agribusiness, and child homelessness. In the second half, Wolff interviews activist Rob Robinson, delving into water as a human right, the perils of privatization, and grassroots campaigns for water justice.
Key Discussion Points & Insights
1. Trump vs. Big Business: Fraying Political Coalitions
[00:00–07:50]
- President Trump publicly attacked major corporations (e.g., Amazon, Merck) and their CEOs—a rare move that puts stress on the traditional Republican coalition of big business and social conservatives.
- These attacks, especially ending business advisory councils after the Charlottesville events, signal a rift between the interests Trump promised to serve and actual policy outcomes.
Notable Quote:
“When Mr. Trump attacked the large corporate CEOs, he was straining … that coalition.”
—Richard D. Wolff [01:15]
2. Amazon & Corporate Tax Evasion
[03:00–07:50]
- Wolff highlights Amazon’s minimal effective tax rate—13% between 2007 and 2015—across federal, state, and local levels, lower than what many individuals pay.
- Trump’s criticism of Amazon’s tax avoidance is accurate, though he has taken no substantive action.
Notable Quote:
“Amazon has been getting away with tax evasion, using the law, using an army of accountants, using an army of lawyers.”
—Richard D. Wolff [06:00]
3. Rising U.S. Mortality Rates and Profit Motives
[07:50–12:45]
- U.S. life expectancy stopped improving in 2011 and is now declining—contradicting claims of economic recovery.
- Corporations and the Social Security system perversely benefit financially when people die younger due to lowered pension and benefit obligations.
Notable Quote:
“This bad news for the mass of people is, in a perverse way, good news for the very corporations whose work conditions are part of the reason why people are dying earlier.”
—Richard D. Wolff [11:00]
4. Monsanto, Dicamba, and Corporate Negligence
[13:47–21:20]
- Monsanto’s herbicide dicamba killed crops it wasn’t supposed to, due to its volatility. Reuters revealed Monsanto prevented independent testing for volatility, rushing a harmful product to market.
- Wolff points to systemic incentives where profit overrides safety and public health.
Notable Quote:
“They were in a rush to make money, and that’s what they did. … They put their profitability … ahead of what was safe for the human race.”
—Richard D. Wolff [20:25]
5. Child Homelessness and Educational Disadvantage
[21:24–28:28]
- Shocking statistic: 100,000 school children in New York City experienced homelessness in 2015–2016.
- Homeless students graduate at a 55% rate vs. 74% for housed peers and miss an average of 88 school days.
- Childhood homelessness predicts later adult poverty, and the U.S. has both the resources and housing stock to address this if it chose.
Notable Quote:
“We are doing an unspeakable injustice to millions of our fellow citizens’ children by blocking their ability to access a decent education and a decent life.”
—Richard D. Wolff [26:50]
Interview: Water as a Human Right in the U.S.
[30:01–56:53]
Introduction to the Water Crisis
- Rob Robinson describes multiple water crises: unaffordable bills, pollution (e.g., by industry, by lead), and government neglect, especially impacting the poor and marginalized.
- Extractive industries pollute communal water sources, while government investment in water and sewage infrastructure lags.
Notable Quote:
"It's unaffordable to many, particularly poor people … being polluted by big business around the country … being poisoned with lead in places like Flint."
—Rob Robinson [31:12]
Roots and Contradictions of Water Access
- The crisis is longstanding but public awareness increased after Flint.
- Corporations like Nestlé extract public water, sometimes from the same sources as beleaguered municipalities, to resell at profit.
- Growing divide: companies profit off scarcity and pollution while government abdicates responsibility.
Memorable Exchange:
“Some companies pollute the water … which enables other companies to get water, clean it up, put it in a bottle and sell it to us ... This is crazy.”
—Richard D. Wolff [34:49]
“If it wasn't people's lives at risk, it would almost be humorous the way it happens.”
—Rob Robinson [35:13]
Case Study: Flint, Michigan
- Emergency management took away local democratic control, switching Flint’s water supply to save money—resulting in widespread lead poisoning.
- The effects are lifelong, especially for children, and the government has failed to provide necessary long-term care.
Notable Quote:
“The emergency manager in Flint decided to switch the source of the water … to save money. … They ignored those findings and they continued to use the source of water. And then people started to get ill.”
—Rob Robinson [39:18]
Economic and Racial Injustice in Water Access
- In Detroit and elsewhere, inability to pay bills (sometimes as little as $150 in arrears) results in water shutoffs, disproportionately impacting poor and minority households.
- Meanwhile, large, wealthier corporate institutions (e.g., golf courses), even when deep in arrears, keep their taps running.
Notable Quote:
“The fact that you need water to survive didn't come into the equation. Doesn't matter. If you can't pay, you can't have. That's problematic and it's targeting a certain section of society.”
—Rob Robinson [42:15]
Water as a Human Right vs. Commodification
- U.S. civil rights law offers little protection for human rights such as access to water.
- The movement is shifting from defending to enforcing human rights.
Notable Quote:
“No, I'm not going to defend these rights. I'm going to enforce them. The very fact that I'm a human being, I deserve fresh, clean drinking water.”
—Rob Robinson [44:23]
Grassroots Water Justice Movement
- Localized, diverse activist groups—supported by organizations like the US Human Rights Network—are organizing for water rights, sharing experiences, and strategizing for change.
- Key focus: Who owns water? Why is it commodified?
Key Quote:
“If the community controlled access to water, our lives would look totally different.”
—Rob Robinson [47:54]
Policy Solutions and the Fight for Affordability
- University and legal partners are developing affordability plans linking water prices to ability to pay, with legislative efforts underway in Michigan and California (California has enshrined water as a human right).
- Poor communities are not seeking free water but affordable water.
Notable Quote:
“Poor people in Detroit never ask for free water. They ask for affordable water. Nobody ever said they didn't want to pay.”
—Rob Robinson [49:51]
National and Global Implications
- Flint’s crisis spotlighted similar, less publicized crises elsewhere.
- Infrastructure—aging pipes, underinvestment—is a national problem.
- Only robust taxation of the wealthy and political will stand in the way of universal safe water access.
Notable Exchange:
“If you don't tax the wealthy, even at the level we once did … then you don't have the wherewithal to replace the pipes.”
—Richard D. Wolff [55:45]
“I call it an issue of political will. … We don't have the willingness of the elected officials to make that particular change.”
—Rob Robinson [56:25]
Memorable Quotes & Moments with Timestamps
- [06:00] “Amazon has been getting away with tax evasion, using the law, using an army of accountants, using an army of lawyers.” —Wolff
- [11:00] “This bad news for the mass of people is, in a perverse way, good news for the very corporations whose work conditions are part of the reason why people are dying earlier.” —Wolff
- [20:25] “They put their profitability … ahead of what was safe for the human race.” —Wolff
- [31:12] “It's unaffordable to many, particularly poor people … being polluted by big business … being poisoned with lead in places like Flint.” —Robinson
- [34:49] “Some companies pollute the water … which enables other companies to get water, clean it up, put it in a bottle and sell it to us ... This is crazy.” —Wolff
- [42:15] “The fact that you need water to survive didn't come into the equation. Doesn't matter. If you can't pay, you can't have. That's problematic and it's targeting a certain section of society.” —Robinson
- [49:51] “Poor people in Detroit never ask for free water. They ask for affordable water.” —Robinson
- [56:25] “I call it an issue of political will. That's the bottom line. We don't have the willingness of the elected officials to make that particular change.” —Robinson
Important Segment Timestamps
- [00:00–07:50] Trump, Amazon, and Big Business Alliances
- [07:50–12:45] U.S. Mortality Rates and Pension Profits
- [13:47–21:20] Monsanto Herbicide Scandal
- [21:24–28:28] Child Homelessness and Educational Impact
- [30:01–56:53] Interview: Rob Robinson—Water Economics and Human Rights
- [31:12] Dimensions of the U.S. water crisis
- [38:37] Flint, Michigan case study
- [42:15] Detroit water shutoffs and economic/racial injustice
- [47:00+] Movement organizing and legislative solutions
- [55:45+] Political will and the role of taxation
Tone & Delivery
Richard D. Wolff's style is critical, direct, and analytic, blending economic theory with a palpable sense of moral urgency. Rob Robinson speaks passionately from an activist perspective, grounded in lived experience and organizing work.
Summary Takeaway
This episode draws a powerful line from high-level economic structures to daily material consequences: the commodification of basic needs like water is not a technical or financial inevitability, but the result of political choices, profit incentives, and misplaced priorities. The growing water justice movement seeks to reclaim water as a human right—and challenges the entrenched alignment of government with corporate interests. The episode emphasizes that feasible solutions exist and hinges progress on political will and collective action.