Economic Update with Richard D. Wolff

Episode: Labor Versus Capitalism

Date: July 5, 2018
Host: Richard D. Wolff (Democracy at Work)
Guest: Dr. Harriet Fraad

Overview

In this episode, Richard D. Wolff examines the ongoing struggle between labor and capitalism, using current events to illustrate systemic imbalances. The episode critiques U.S. policies and political decisions that negatively impact workers, in contrast with recent political shifts in Mexico favoring the working class. In the second half, Dr. Harriet Fraad joins to explore how the decline of the "American empire" severely impacts the psychology, social roles, and lives of white, male workers. Together, Wolff and Fraad dissect economic and societal changes, highlighting the consequences for both individuals and society at large.

Key Discussion Points & Insights

1. Mexican Election as a Turning Point (00:10–04:30)

• Contrast with U.S. Politics:
  Wolff opens by highlighting Mexico’s July 1, 2018, election, praising the victory of Andrés Manuel López Obrador (AMLO) as a bold rejection of centuries of elite control.
  • "The people of Mexico want a government that serves them, really." (02:35, Wolff)
• Comparison to the U.S.:
  The Mexican shift towards serving working people is set against what Wolff describes as a relentless attack on the American working class.

2. The Assault on Labor Unions in America (04:30–11:15)

• Supreme Court’s Janus Decision:
  Wolff details the Janus v. AFSCME case, describing it as part of a 50-year campaign to weaken American unions—one of the last institutions representing workers.
  • Explains the “free rider problem” created by the Taft-Hartley Act: benefits won by unions must be extended even to non-union workers.
  • Describes “agency fee” rules as a weak union compromise, now overturned by the court.
  • Critiques the court’s logic equating union fees with compelled political speech:
    "Somehow that logic doesn't extend to unions. That's a society that is against unions... the opposite of what was just elected in Mexico." (09:30, Wolff)
• Analogy:
  Wolff compares mandatory union fees to taxes funding churches—people pay for societal goods/services, even if they don’t agree with everything.

3. Corporate Subsidies and Their Impact (11:15–14:26)

• Foxconn Wisconsin Deal:
  Criticizes the $4 billion incentive given to Foxconn, calling it the largest such deal in U.S. history for a mere promise of 13,000 jobs.
  • Describes this as a misallocation of funds that could be better spent directly strengthening public programs and job creation.
    "Could you do better with $4 billion than give it to a company that merely promises to provide 13,000 jobs?" (12:45, Wolff)
  • Argues such deals hurt public services and the American working class.

4. Work Requirements for Medicaid and U.S. Welfare Hostility (14:26–16:00)

• Medicaid Work Requirements:
  Wolff denounces efforts to make Medicaid recipients work, noting most already work or cannot due to disabilities or caregiving.
  • Exposes hypocrisy: wealthy institutions get tax breaks and subsidies without “work requirements.”
  • "People rich enough to lend money to cities and states in America are not required to pay any income tax... The wealthiest colleges and universities get enormous tax exemptions. What work is required of them? Nothing." (15:35, Wolff)

5. Immigration: Myths vs. Realities (16:00–16:13)

• Use as Political Scapegoat:
  Labels anti-immigration rhetoric as a tool for right-wing politicians to distract from failures of capitalism and government austerity.
  • Provides historical context: the current proportion of immigrants is similar to historical norms.
  • Refutes the notion that Mexican immigration is the largest issue—largest groups are now Indian and Chinese immigrants.
  • "The poorest of the poor, the immigrants from abroad, as if they were the problem." (15:58, Wolff)

Psychological and Social Consequences of a Declining Empire

With Dr. Harriet Fraad (from 16:13)

6. The Decline of the American Empire and its Effects (16:13–22:01)

• Historical Shifts:
  Fraad and Wolff discuss prior empires’ collapses, positing the U.S. is facing similar decline.

  • Inability to win wars, maintain mass services, or provide job security as key symptoms.
  • Decline “shows up in the psychology of the people living through this experience.” (17:08, Wolff)

• White Male Workers Hit Hardest:
  Fraad outlines how white, male workers enjoyed “family wages,” social power, and economic security during America’s height, which has sharply eroded due to mechanization, outsourcing, and economic shifts.

  • "There was a premium on white male labor... Two of the gender components of maleness in America were the ability to support a wife and dependent children... and to be strong." (18:57, Fraad)

7. Lack of Explanation and Scapegoating (20:16–22:01)

• Blame Deflection:
  Wolff notes the absence of public understanding:
  "They were kind of led to believe that it was somehow their fault." (20:53, Wolff)
  • U.S. capitalists, unlike in countries with stronger unions (e.g., Sweden, Germany), presented job loss as inevitable and natural.

8. Psychological Responses and Social Symptoms (22:01–28:17)

a. Disruption of Gender Roles

• White men lost their economic and familial dominance, destabilizing their identity.
  • "Men were demoted emotionally, sexually and economically and their sense of being a man and being in control and having power was terribly disrupted." (24:10, Fraad)

b. Three Major Symptoms

1. Violent “Fight” Response:
   • Dramatic rise in angry, white men committing mass murders; belonging to hate groups.
   • "1,102 mass murders all by angry white men... they all had lost a loved one... or lost a job or both..." (25:15, Fraad)
2. Withdrawal & Suicide (“Flight” Response):
   • Suicide rates up 30%; majority are white, middle-aged men.
   • "77% of the suicides are male suicides, 84% are white people and 77% of those more than three quarters are white males, usually middle aged white males." (27:07, Fraad)
3. Substance Dependence:
   • Opioid crisis and overdose deaths heavily impact same demographic.

c. Social Tensions and Gendered Fallout

• Women joining the workforce, refusing marriage, initiating divorces—compounding men’s sense of loss.
• Increased household tensions as expectations shift.
  • "Majority of divorces are now initiated by women and it’s now women who usually refuse to be married because why be married to someone when... he wants you to do all sorts of extra work beyond your share." (24:08, Fraad)

Memorable Quotes & Timestamps

• “The people of Mexico want a government that serves them, really.”
  — Richard Wolff, (02:35)
• “That's a society that is against unions. That is a government including the Supreme Court, that is the opposite of what was just elected in Mexico.”
  — Richard Wolff, (09:30)
• "Could you do better with $4 billion than give it to a company that merely promises to provide 13,000 jobs?"
  — Richard Wolff, (12:45)
• “There was a premium on white male labor... The ability to support a wife and dependent children... to be strong.”
  — Harriet Fraad, (18:57)
• “Men were demoted emotionally, sexually and economically and their sense of being a man and being in control and having power was terribly disrupted.”
  — Harriet Fraad, (24:10)
• “77% of the suicides are male suicides, 84% are white people and 77% of those more than three quarters are white males, usually middle aged white males.”
  — Harriet Fraad, (27:07)
• “The decline of the empire is not some abstraction ... but something immediately shaping the lives and deaths of the people around us?"
  — Richard Wolff, (28:00)

Key Segment Timestamps

• 00:10–04:30: Mexican elections and contrast to U.S. labor politics
• 04:30–11:15: History and impact of Taft-Hartley & Janus decision
• 11:15–14:26: Foxconn subsidy and critique of corporate giveaways
• 14:26–16:00: Medicaid work requirements and hypocrisy in welfare policy
• 16:13–18:19: America as a declining empire, the effects on workers
• 18:19–22:01: Gender roles, outsourcing, psychological fallout
• 22:01–28:17: Social and mental health symptoms (anger, violence, suicide, substance abuse)

Tone

Richard D. Wolff maintains an urgent, analytic tone, blending historical context, policy critique, and outrage at injustices against working people. Dr. Fraad brings a compassionate, clinical perspective, connecting economic and psychological distress. Both are deeply critical of current U.S. economic structures, drawing stark contrasts to alternative political choices.