Economic Update with Richard D. Wolff

Episode: Lawyers vs. the System
Date: May 2, 2019

Episode Overview

In this episode of Economic Update, host Richard D. Wolff explores the intertwining crises of American capitalism: the exploitation of students through predatory financing, government intervention and hypocrisy in economic policy, the shrinking middle class, and the crisis of retirement insecurity. In the second half, Wolff interviews attorney Michael Steven Smith, co-author of Lawyers for the Left, discussing how the legal profession both perpetuates and challenges systemic injustices, and the evolving struggle for civil liberties in the U.S., especially since 9/11.

Key Discussion Points & Insights

1. The "Sharecropping" of College Students (00:10–05:43)

• Wolff introduces a predatory new student loan arrangement he refers to as "sharecropping"—where investors pay for a student's education in exchange for a claim on a percentage of their future income.
• He draws a parallel between this and historic agricultural sharecropping, arguing this modern practice is exploitative and indicative of systemic failure in American capitalism.
• Wolff contrasts the U.S. model with Europe, highlighting Germany's tuition-free higher education.

Notable quote:

"What we are doing for students is saying… we're not going to pay your family [enough]… We’re going to jack up the price of an education… and then… offer you a wonderful deal: We will lend you money and you can go into debt for the rest of your life, or we will allow you to become a sharecropper."
— Richard Wolff (03:10)

2. Conservative Hypocrisy and Government Intervention (05:44–09:55)

• Wolff dissects the contradiction in conservative economic rhetoric: historic opposition to "government intervention" juxtaposed with actual large-scale interventions that benefit employers (esp. under the Trump administration).
• He points out recurring themes of tax breaks, deregulation when convenient, and policy moves that always favor business elites over working people.
• Trump’s tariffs and interventions are highlighted as prime examples of selective, self-serving government action.

Notable quote:

"Conservatives want employers to be helped by the government, not employees. And that was always the real issue."
— Richard Wolff (08:30)

3. The Pension Crisis (09:56–12:44)

• Wolff addresses the erosion of retirement security, citing Government Accountability Office statistics that show over 40% of Americans aged 55–64 have no retirement savings, and nearly two-thirds have less than $50,000.
• He argues the U.S. is "condemning a major part of our population" to impoverished old age—including those who’ve worked their entire lives.

Notable quote:

"We are condemning a major part of our population to face their lives after a lifetime of work under conditions that are nothing short of ruthless. It is a capitalism that doesn’t work."
— Richard Wolff (12:18)

4. The Disappearing Middle Class & Scapegoating (12:45–15:39)

• Wolff connects the decline of the middle class to broader global and national trends—job insecurity, rising inequality, and political backlash.
• He highlights how political leadership blames "foreigners" (immigrants, trading partners) for problems really rooted in systemic economic shifts.
• He warns that scapegoating is a dangerous cycle that eventually turns inward on marginalized groups within society.

Notable quote:

"Blaming the foreigner is like an addiction. After a while, you gotta take it further to get the same high... you’ll discover that inside your country there are disguised foreigners, allies of the foreigners, and you’ll turn in on yourself."
— Richard Wolff (15:00)

Interview Segment: Michael Steven Smith, Author & Attorney (15:40–28:10)

Background and Genesis of Lawyers for the Left (15:40–17:00)

• Smith describes co-founding the radio show Law and Disorder after 9/11 in response to rapid erosions of civil liberties.
• The book Lawyers for the Left grew from radio interviews and Smith’s own writings about left-wing attorneys.

What Makes a “Lawyer for the Left”? (17:01–19:30)

• Smith explains that genuine progressive lawyers see democracy and civil liberties as increasingly incompatible with capitalism and imperialism, citing the Patriot Act and National Defense Authorization Act as examples of rights’ erosion post-9/11.
• He recounts efforts by Chris Hedges and Noam Chomsky to challenge indefinite detention of American citizens—underscoring government intransigence.

Notable quote:

"Increasingly democratic rights and the rule of law are not compatible with capitalism or imperialism."
— Michael Steven Smith (17:16)

Law as a Tool of Social Control (21:00–22:44)

• Wolff introduces a quote by lawyer William Kunstler arguing that law is fundamentally an instrument of social control crafted by the economic elite.
• Smith agrees, with nuance: while the ruling class uses law to maintain control, left-wing lawyers can use constitutional rights ("contradictions") to advance social justice.

Notable quotes:

"[The] law is... nothing more than a method of control created by a socioeconomic system determined at all costs to perpetuate itself."
— William Kunstler (read by Richard Wolff, 21:00)

"Even though the ruling class rules, they don't do it by repression... they do it more subtly... through mythology. And that contradiction is what we lawyers on the left take advantage of..."
— Michael Steven Smith (21:45)

Pessimism and Hope: The Role of the Activist Lawyer (22:45–24:00)

• Smith, citing Gramsci, advocates "pessimism of the intellect, optimism of the heart"—acknowledging serious structural obstacles but insisting on the necessity of hope and continued struggle.

Notable quote:

"You have to have pessimism of the intellect, but optimism of the heart... If you don’t have hope, you don’t do anything."
— Michael Steven Smith (22:58)

Advice for Future Left-Wing Lawyers (23:33–25:24)

• Smith encourages young people to enter law if motivated by public interest, noting there are meaningful, socially beneficial legal careers outside of defending corporate power.
• He reflects on the widespread animosity toward the legal profession, but emphasizes the positive legacy of lawyers who work for justice.

Notable quote:

"If you get the right kind of job, and you're not representing the ruling rich... you can do some good. And I think that because the prestige that lawyers have in the society, they should take advantage of that."
— Michael Steven Smith (24:01)

The State of U.S. Civil Liberties and the Pendulum of Politics (26:27–28:10)

• Smith warns of continued threats to civil liberties as polarization and right-wing authoritarianism grow, but also notes rising popular interest in socialism and progressive alternatives.
• He references Lenin and the Russian Revolution as historical context for reactionary pushes and the resistance they spark.

Notable quote:

"We're seeing the growth of this malignant right wing, of course, and Trump is a symptom of it. But we're also seeing socialism being quite popular... It's always a struggle."
— Michael Steven Smith (26:57)

Memorable Quotes & Moments by Timestamp

• 03:10 — "We will then make profit not only by paying your folks too little, but by squeezing an interest payment out of you... or a share of your income for however many years you're trapped in this system." (Wolff on student 'sharecropping')
• 08:30 — "Conservatives want employers to be helped by the government, not employees. And that was always the real issue." (Wolff on government intervention)
• 12:18 — "We are condemning a major part of our population to face their lives after a lifetime of work under conditions that are nothing short of ruthless." (Wolff on the retirement crisis)
• 15:00 — "Blaming the foreigner is like an addiction... you'll discover that inside your country there are disguised foreigners, allies of the foreigners, and you'll turn in on yourself." (Wolff on scapegoating)
• 17:16 — "Increasingly democratic rights and the rule of law are not compatible with capitalism or imperialism." (Smith on law and capitalism)
• 22:58 — "You have to have pessimism of the intellect, but optimism of the heart." (Smith quoting Gramsci)
• 24:01 — "If you get the right kind of job... you can do some good." (Smith to would-be lawyers)

Structure, Tone, and Language

• The episode maintains a critical, incisive tone typical of Wolff’s commentary, blended with Smith’s experienced, activist perspective.
• Both speakers use accessible language, concrete examples, and historical context to ground their critiques of the legal and economic system.
• Emphasis is placed on hope, agency, and practical paths forward for young activists and legal professionals.

Conclusion

This episode of Economic Update is both a diagnosis of intertwined economic and legal crises facing American society and an exploration of how individuals—especially lawyers with progressive values—can challenge and resist those systemic forces. It balances structural critique with personal encouragement for activism, making it a good primer for understanding both economic injustice and the role of radical legal advocacy today.