Economic Update with Richard D. Wolff

Episode: Organizing for Social Change

Date: January 20, 2017

Episode Overview

In this episode, economist Richard D. Wolff analyzes recent economic developments in the wake of Donald Trump’s presidential inauguration and examines how systemic inequalities have worsened in the U.S. He dedicates the second half of the show to a substantive interview with Becky Bond and Zack Exley—senior advisors to Bernie Sanders’ presidential campaign and co-authors of "Rules for Revolutionaries: How Big Organizing Can Change Everything.” The discussion focuses on strategies for building mass movements, the lessons and outcomes of the Sanders campaign, and how similar tactics can be used to push for transformational social change.

Key Updates and Analyses (00:00–31:00)

1. Conflict of Interest & the Trump Administration (00:00–07:25)

• Anthony Scaramucci’s Sale of SkyBridge Capital: Wolff explores potential conflicts of interest, noting the expedited sale of Scaramucci's hedge fund to major Chinese conglomerates (Ron Transatlantic and HNA Capital), highlighting the irony in Trump's campaign rhetoric versus his appointments.
  • “Is it getting murky? Oh good. We're just beginning.” (04:10, Wolff)

2. Cartel Penalties and Antitrust Enforcement (07:26–11:31)

• Antitrust Paper by John Connor: Citing a paper from the American Antitrust Institute, Wolff discusses findings that cartel penalties are minimal compared to the profits gained from overcharging consumers.
  • Median penalty: only 21% of the overcharge.
  • Insight: Weak penalties incentivize continued cartelization.
  • “For every $5 they overcharged, the penalty was 20 cents of the extra buck… Now you know.” (09:38, Wolff)

3. Wages, Race, Gender, and Productivity (11:32–18:59)

• EPI Data on Wage Trends (1980–2015): Detailed breakdown of wage stagnation and decline for Black men and white men; wage gains are only significant for women—especially white women. Productivity growth sharply outpaces wage growth for all groups.
  • Key statistics:
    • Black men’s wages declined by 6%.
    • White men’s by 1%.
    • Black women’s wages rose 15%; white women's by 31.6%.
    • Productivity rose much faster across all groups.
  • “All working people, men and women alike, whites and black alike, have a shared interest in changing that situation.” (17:49, Wolff)

4. Social Mobility and Internships in Britain (19:00–22:25)

• UK Parliament Push to End Unpaid Internships: All-party group proposes banning unpaid internships longer than one month, arguing it entrenches class divisions.
  • “Interns are the acceptable face of unpaid labor in modern Britain.” (20:32, Tory MP Alex Shellbrook)
  • “Those from poorer backgrounds are being systematically locked out.” (21:18, Alan Milburn)

5. Davos, the Elite, and Populism (22:26–28:59)

• World Economic Forum Observations: Big banks and CEOs openly celebrate the incoming Trump administration for its promises of deregulation. Despite 'concerned' talk about vanishing middle class and populism, there’s little real intent to address inequality.
  • “No one is going to give the working classes…a better deal if they expect that a government shift…will change their situation.” (27:11, Wolff)
  • “Gains…depend on whether they make them happen.” (27:40, Wolff)

6. United Way’s ALICE Project: Poverty Redefined (29:00–31:00)

• A More Accurate View of Poverty in the U.S.: United Way’s ALICE measure includes asset-limited, income-constrained, but employed households, showing nearly half of New Yorkers live either in poverty or at survival level.
  • Survival budget for a family of four in NY: $62,472; 44% living at or below survival.
  • “For a country that has grown as wealthy as ours has, this is a moral, ethical, as well as political and economic horror story.” (30:13, Wolff)

Featured Interview: Becky Bond & Zack Exley—“Rules for Revolutionaries” (31:02–56:51)

Introduction (31:02–31:56)

• Guests: Becky Bond and Zack Exley, former senior advisors to Bernie Sanders’ presidential campaign, co-authors of "Rules for Revolutionaries" (published November 2016).
• Their backgrounds: Extensive experience in digital campaigning, progressive organizing.

The “Big Organizing” Model (31:56–33:36)

• Central Thesis: "Big organizing" leverages the untapped capacity of grassroots volunteers toward ambitious, large-scale goals that meaningfully improve lives, achieved through mass participation and leadership roles for ordinary people.
  • “Big organizing is about tapping into the latent capacity in the grassroots…to win a big victory.” (32:32, Bond)
  • Three aspects of 'big': huge goals, mass participation, and empowering volunteers for leadership.

The Sanders Campaign Experiment (33:36–40:29)

• How Big Organizing Made Sanders Viable: Sanders’ message and authenticity drove support, but big organizing enabled millions to actively campaign, connect with voters, and build infrastructure with very limited resources.
  • “We eventually were able to build out a team...that preparation paid off.” (39:09, Exley)
  • Key achievement: 81 million volunteer phone calls to voters, including to early states.

Could Sanders Have Beaten Trump? (40:29–43:32)

• Opinion of Guests:
  • “I personally believe that Bernie would have won.” (40:46, Bond)
  • Exley argues Sanders’ message resonated in the swing states Clinton lost, particularly among the working class left behind by deindustrialization.
  • “What was so amazing…was watching Trump deliver these speeches in those states where he said, ‘They’ve been dismantling your means of making a living, and I’m gonna rebuild it.’” (42:09, Exley)

Funding Progressive Movements (43:32–45:59)

• $27 Average Donation & Grassroots Power: Bond highlights that compelling, ambitious movements can be funded by small donations rather than relying on wealthy donors.
  • “It’s possible to fund a movement with small dollar donors…to have a movement made up of a diverse, working people of all colors…” (44:30, Bond)

Application Beyond Electoral Politics (45:59–49:40)

• Potential for Labor Movement and Unions: Exley critiques the dominant Alinsky organizing model (small wins, foundation funding) and calls for a return to ambitious, mass-mobilization organizing seen in the labor movements of the mid-20th century.
  • “The first step of igniting a mass movement is making that big ask.” (49:27, Exley)

Revolution Now: Why “Revolution” Is the Right Word (50:11–53:00)

• Radical Solutions for Radical Problems: Bond and Exley argue that the magnitude of today’s crises (economic and environmental) demands “revolutionary” change—peaceful, but bold and systemic.
  • “The problems that we're facing are radical, and it's only going to be radical solutions…before the planet burns up, before our institutions break down.” (51:33, Bond)

Socialism, Labels, and Shifting Consciousness (53:01–56:18)

• Label Politics: Discussion on how terms like "socialism" or "capitalism" are highly contested or misunderstood, but Sanders proved that open identification as a socialist no longer repels millions of Americans.
  • “It was appealing for just as many Bernie supporters. I think it was actually something that repelled them, but…they said, ‘Hey, I don't know what this socialism thing is, but he's talking my language.’” (54:45, Exley)
  • Soaring appetite for change, across labels.

Final Thoughts and Key Takeaway (56:18–56:51)

• Call to Action: Organize Yourself and Your Community
  • “The biggest thing that I would like [people] to take away is that what happens next is really in their hands…get together with your friends, come up with a big idea…you can start the revolution yourself.” (56:25, Bond)
  • “Unfortunately, it's going to be a few years before your leaders catch up.” (56:43, Exley)
  • “Usually how it is.” (56:49, Wolff)

Notable Quotes & Memorable Moments

• “For every $5 they overcharged, the penalty was 20 cents of the extra buck that they squeezed out of their monopoly position.” (09:38, Wolff)
• “Their [Bernie Sanders campaign’s] biggest asset was Bernie's message… the second biggest asset we had was Bernie himself, because he was an authentic messenger that the people trusted.” (34:17, Bond)
• “Volunteers did the work, and we had so little resources and so few people…For several weeks, it was two of us and 46 states. It was a little crazy.” (38:54, Exley)
• “If we want a movement that reflects our values, we have to fund the movement.” (44:35, Bond)
• “The first step of igniting a mass movement is making that big ask.” (49:27, Exley)
• “The problems we’re facing are radical, and it’s only going to be radical solutions…that can address them…” (51:33, Bond)
• “What happens next is really in their hands…you can start the revolution yourself.” (56:25, Bond)

Key Timestamps

| MM:SS | Segment | |-------|-----------------------------------------------------------------------| | 00:00 | Introduction & Scaramucci conflict of interest | | 07:26 | Discussing cartel penalties & antitrust report | | 11:32 | EPI wage trends, class & race analysis | | 19:00 | UK Parliament vs. unpaid internships | | 22:26 | Davos, elite reactions to Trump, and populism | | 29:00 | United Way's ALICE project: new poverty measures | | 31:02 | Interview: Becky Bond & Zack Exley introduction | | 31:56 | The "Big Organizing" thesis—overview | | 33:36 | How big organizing powered Sanders, volunteer infrastructure | | 40:29 | Could Sanders have beaten Trump? (swing states analysis) | | 43:32 | Funding movements; small donor model | | 45:59 | Bringing big organizing to labor movement & history of organizing | | 50:11 | Why "revolution": need for radical change | | 53:01 | Language of socialism/capitalism, shifting American consciousness | | 56:18 | Final thoughts—call to action and "revolution in your hands" |

Tone and Style

• Richard Wolff: Analytical, critical, wry sense of humor, direct language to expose contradictions and inequalities.
• Bond & Exley: Passionate, hopeful, encouraging, concrete about successes and practical steps, candid about difficulties.

For listeners who missed this episode:
This show provides not just critical economic analysis of the Trump era’s opening but also a thorough, inside look at how grassroots movements can scale up for real change—offering hope, strategy, and urgency to anyone tired of inequality and ready to take action.