Economic Update with Richard D. Wolff

Episode: Politicians Faking It
Date: January 17, 2019
Host: Richard D. Wolff
Guest: Bob Henley

Episode Overview

In this episode, Richard D. Wolff provides critical commentary on the façade of political actions both in the U.S. and abroad, focusing on the ways politicians project change while the underlying economic realities remain unaddressed. The episode covers recent policies in Europe, the use of economics as a tool of political power, and exposes several "sleazy" stories involving Saudi Arabian lobbying and large-scale banking scandals. The second half features an interview with investigative journalist Bob Henley, who assesses the Trump presidency’s impact on working-class Americans and unpacks the realities behind economic statistics and headline-grabbing corporate deals.

Key Discussions and Insights

1. European Policy Shifts and Their Significance

[00:10 – 06:00]

• Free Public Transit in Luxembourg:
  Luxembourg becomes the first country to offer universal free public transport—a policy designed to benefit lower-income citizens significantly more than the wealthy.
  Wolff attributes this policy change to a left-leaning governing coalition (Democratic, Socialist Workers, and Green parties), flagging it as a sign of growing left-wing influence in Europe.

• Other Reforms:
  The same coalition is considering legalizing cannabis and adding public holidays—measures aimed at improving quality of life without shifting wealth distribution fundamentally.

• Quote:
  “Making [transportation] free is a bigger gift to folks at the bottom than it is to folks at the top. That already is a different direction than European governments have been taking for most of the last 30 or 40 years.” — Richard D. Wolff, [03:25]

2. U.S. Foreign Policy and Economic Power Plays

[06:00 – 10:30]

• Iran Sanctions & Dollar Dominance:
  Wolff explains how the Trump administration’s withdrawal from the Iran nuclear deal led the U.S. to re-impose sanctions and threaten foreign companies with penalties, leveraging the U.S. dollar’s dominance in international transactions.

• European Resistance:
  European nations respond by developing “special purpose vehicles” to circumvent dollar-based tracking, signaling cracks in global capitalist unity—what Wolff terms the “disunity of the capitalist world.”

• Quote:
  “The falling apart of capitalist world economic system into its national parts… is going to change the dynamic in struggles between workers and capitalists in each country and between and among the different blocs.” — Richard D. Wolff, [08:55]

3. Sleaze in Economic and Political Dealings

[10:30 – 12:54]

• Saudi Lobbying at Trump Hotel:
  Shortly after the 2016 U.S. election, Saudi Arabia purchased 500 rooms at Trump’s D.C. hotel ($768/night average) for use by American veterans—ostensibly to lobby against a law potentially exposing soldiers to liability, but actually targeting a clause permitting 9/11 families to sue Saudi Arabia.

• Quote:
  “They were coming to Washington to push against the law… [but] the rooms weren’t for Saudi Arabians. I told you it was sleazy. That’s pretty sleazy.” — Richard D. Wolff, [12:00]

4. Deutsche Bank and Global Money Laundering

[12:54 – 15:00]

• The Case:
  Over $180 billion of largely illicit Eastern European wealth was funneled through a tiny Estonian Danske Bank branch, then processed by Deutsche Bank.

• Systemic Issue:
  Wolff argues this scandal is symptomatic of a global banking system focused on profit at the expense of legality or social responsibility.

• Quote:
  “If you allow something as important as money… to be controlled by private companies… their job is to make money for the company they work for… the system is the problem.” — Richard D. Wolff, [14:20]

5. Interview: Bob Henley on Trump’s Economic Reality

[15:53 – 27:35]

Evaluating Trump’s Performance for Working Americans

[16:43]

• Failed Promises:
  Despite promises to reinvigorate “post-layoff paradise” in the Rust Belt, corporations like GM and Harley-Davidson have continued layoffs and offshoring, often after benefiting from public bailouts or tax cuts.

• Quote:
  “What we’re seeing is they’re back to their old tricks, laying off thousands of workers… with reckless disregard for the consequences.” — Bob Henley, [17:20]

Media Complicity and National Blind Spots

[19:37]

• Media Disconnect:
  Henley blames the media for focusing on spectacle (Russia inquiries, market headlines) rather than ground-level economic hardship, missing signals that fueled Trump’s victory.

• Life Expectancy Decline:
  For the third year, U.S. life expectancy drops—something unprecedented since WWI, driven by opioid addiction and suicide, yet underreported.

Surface Statistics vs. Underlying Realities

[21:52]

• Stock Market Volatility:
  Wolff and Henley discuss how Federal Reserve interventions and tax cuts have inflated asset bubbles, not improved working-class conditions or infrastructure.

• Quote:
  “You just keep buying it back and spinning it… That’s where we are. Meanwhile, the underlying dynamic… has all been in decline, and it’s paying off… in this decline of life expectancy.” — Bob Henley, [22:57]

The U.S.-China Tech Confrontation

[24:37]

• Tech Race:
  U.S. efforts to sanction or isolate China are contrasted with the latter’s massive investment in education and technology—strategies that Wolff argues are more effective than trade wars.

The Amazon HQ2 Controversy

[26:02]

• Crony Capitalism in New York & Virginia:
  Billions in public incentives go to Amazon for new HQs, even as local businesses close and wealth becomes more concentrated.

• Alternative Uses for Subsidies:
  New York officials and emerging socialist politicians advocate redirecting those funds to forgiving student debt or improving public infrastructure instead.

• Quote:
  “It is crony capitalism at its worst… [giving] $3 billion of public subsidy to a trillion dollar company… transferring it to their competitor.” — Bob Henley, [27:06]

Notable Quotes & Memorable Moments

• “Maybe I should have called this program today Sleazy Economic Update.” — Richard D. Wolff, [12:52]
• “We've had for the third year in a row a decline in the average life expectancy in the United States. This has not happened since the First World War. This is cataclysmic.” — Bob Henley, [20:25]
• “[Amazon and local subsidies]… take resources gathered by small entrepreneurs… and give it… to their competitor. It is crony capitalism at its worst.” — Bob Henley, [27:06]

Important Segment Timestamps

• Luxembourg free public transport & European politics: [00:10 – 06:00]
• US sanctions on Iran & dollar hegemony: [06:00 – 10:30]
• Saudi Arabia, Trump hotel, and lobbying scandal: [10:30 – 12:54]
• Deutsche Bank and money laundering exposé: [12:54 – 15:00]
• Bob Henley interview – working-class reality and corporate betrayal: [15:53 – 27:35]
• Amazon HQ2 and public subsidy debate: [26:02 – 27:35]

Summary Tone & Closing Thoughts

True to his direct, incisive style, Richard D. Wolff dissects both domestic and international economic developments, exposing the gap between political talk and economic reality. The discussion with Bob Henley is frank, critical, and accessible, blending serious concerns with moments of biting humor and outrage. Both speakers urge listeners to look past surface narratives and statistics to recognize the persistent, systemic issues underlying economic headlines—reminding us that meaningful change means more than empty political promises.