Economic Update with Richard D. Wolff

Episode: Psychology, Economics, and Orlando

Date: July 11, 2016
Host: Richard D. Wolff
Guest: Dr. Harriet Fraad

Overview:

In this episode, Richard Wolff provides a wide-ranging analysis of recent economic developments—touching on minimum wage increases, the economics of incarceration, Italy’s Marcora Law, signs of ongoing economic distress globally, and recent legislation about GMOs. The second half centers on a deep-dive discussion with Dr. Harriet Fraad, a mental health counselor, about the psychological and economic dimensions behind the 2016 Orlando nightclub massacre, illustrating how personal tragedy intertwines with systemic social, economic, and psychological forces.

Key Segments & Discussion Points:

1. Raising Minimum Wages in the U.S.

[02:30–08:30]

• Momentum at the State and City Level: On July 1st, 2016, 14 regions enacted higher minimum wages, including states (Maryland and Oregon), cities (Chicago and eight in California, two in Kentucky), and counties (Los Angeles County, Washington D.C.).
• Contrast with Federal Minimum Wage:
  • Federal rate remains at $7.25/hour ($14,500/year for full-time work), "a scandal and a shame" [04:15], unchanged since 2009 despite rising living costs each year.
  • The federal government's lack of action has led to states and cities taking the lead, spurred by grassroots worker pressure.
• Quote:

  “It’s a scandal. It’s a shame. And to not have raised it over the last seven years is a worse scandal and a bigger shame.”
  — Richard Wolff [05:50]

2. Economics of Prisons in the U.S.

[08:35–13:45]

• High Cost and Ineffectiveness: Average cost to house a prisoner: ~$31,000/year, highest incarceration rate globally, and recidivism (repeat offense) rate of 66–75%.
• Entrenched Interests & Failure to Reform: Despite the high cost and lack of rehabilitative results, bureaucratic and government inertia have prevented reform.
• Learning from Italy – The Marcora Law:
  • In Italy, groups of unemployed can receive their full two-year unemployment benefit upfront if they form co-ops.
  • Wolff suggests a similar approach for released prisoners: provide capital and training to help them start co-ops, bypassing the stigma of a criminal record in the job market.
• Quote:

  “Making them able to run and be in charge of their own businesses will show the rest of American society what this model can do.”
  — Richard Wolff [12:55]

3. Debunking “Economic Recovery”

[13:50–22:25]

• European Banking Crisis: Italian banks facing severe nonpayment and potential bailouts; broader European countries like Greece, Portugal, Ireland, and Spain still struggling.
• Olympics and Crime in Brazil: Rio de Janeiro requires 85,000 police/military for security during the Olympics; rampant gunfights signal deep economic dysfunction.
• Stretched Household Budgets: In the U.S., rising car prices and stagnant incomes force longer, more expensive car loans (now 5–7 years), risking another “subprime” crisis.
• Systemic Dysfunction: The host argues the so-called “recovery” benefits only the top 3–4%—“the people who designed the recovery to take care of themselves.”
• Quote:

  “We are witnessing...the disintegration, the dysfunction of an economic system that cannot provide the goods and the services to the mass of people that it once did.”
  — Richard Wolff [21:05]

4. GMO Labeling Law – Public Health v. Profit

[22:26–24:41]

• Federal Labeling Bill: The U.S. Senate passes a GMO labeling bill, influenced by state initiatives (especially Vermont).
• Weak Enforcement: The new federal law has no meaningful penalties—seen as an industry move to preempt stricter state laws and protect profits.
• Quote:

  “It’s a pathetic example of private profits trumping public health. And that's a result of the economic system we have.”
  — Richard Wolff [24:23]

[Break / Transition]

[24:42–29:47]
Musical interlude. Content resumes at 29:47.

5. The Orlando Nightclub Massacre: Psychological & Economic Analysis

Richard Wolff & Dr. Harriet Fraad
[29:47–56:08]

a. Incident Summary

[31:30–33:13]

• Event Recap: On June 12, 2016, Omar Mateen killed 49 people and injured more at Pulse, a gay nightclub in Orlando, on Latin night.
• Mateen’s Motive (per friends/lovers): Revenge, rooted in internal conflict about his homosexuality. He feared having AIDS after a sexual experience (despite testing negative) and felt “contaminated.”

b. Social & Psychological Context

[33:14–37:29]

• Family & Cultural Pressures:
  • First wife left Mateen (partly due to his sexuality); his father, virulently anti-gay, coerced a second marriage and publicly mocked him.
  • Orthodox Muslim context: Homosexuality harshly condemned; punishments include flogging or death.
  • Living in Florida, third highest number of hate groups in U.S.—"He was surrounded by hatred. His hatred of himself...you take it inside."
    — Dr. Fraad [34:39–35:19]
• The Internalization of Social Hatred:
  • “The way people develop a sense of self is through the mirror of the social glances of other people’s eyes.”
    — Dr. Fraad [35:21–35:38]

c. Violence, Employment, and Economic Context

[37:30–41:32]

• Work & Surveillance: Mateen worked for G4S, the world’s largest security firm, with a violent global reputation; trained in the use of automatic weapons.
• American Gun Culture: Access to assault weapons is unique among Western countries.
  • “He literally in himself embodied the end result of explaining the difficulties you face in your life...with a big store of guns and going out with a flash and killing off the bad folks, the very gays, who you are.”
    — Richard Wolff [49:22–49:59]
• National Violence:
  • Exposure to regular mass violence via media, plus living in a nation “at war constantly.”
• Economic Roots – Loss of Male Social Position:
  • Offshoring, automation, and immigrant labor have eroded U.S. male wage premiums, particularly harming white men used to “family wages.”
  • Men lose social identity/power as providers—"their position is over."
  • “Capitalist corporations have found it more profitable now to outsource jobs...that used to be held by males, particularly white males in our society.”
    — Dr. Fraad [40:36]

d. Social Response: Misdirected Rage & Scapegoating

[41:33–48:24]

• Family Breakdown: When family-supporting wages vanish, so does male status; lack of public investments (childcare, eldercare) exacerbates the crisis.
• Free-Floating Rage: Displacement of anger onto minorities, immigrants, and particularly LGBTQ+ individuals; “kick-down” mentality.
  • “People have a lot of free floating rage, especially the white men who have been dethroned. And they look for somebody to blame...It's the suck up, kick down theory.”
    — Dr. Fraad [45:21]
• Misidentification of the Problem:
  • Men direct their anger at scapegoats rather than systemic forces (employers, capitalists).
  • “They misidentified the problem...Instead, they go after a scapegoat, a gay person, an immigrant, a female hippie, or whatever it is for their sad, floating rage.”
    — Richard Wolff [47:00]
  • The real causes—capitalism, job loss, inequality—become invisible.
• Quote:

  “There’s a sadness in your story...no matter what they do to those groups, it’s not going to solve their problems.”
  — Richard Wolff [47:00]

e. The Tragic Cycle and the Role of Masculinity & Guns

[48:25–53:52]

• Masculinity Tied to Economic Power: Guns and machismo serve as replacements for lost male status/power; same for anti-gay sentiment.
  • “Manhood was tied to economic dominance because men got higher wages and...women and children were dependent on them, which made the man the king of his household.”
    — Dr. Fraad [51:22]
• Media and Political Rhetoric:
  • Right-wing media (e.g., Rush Limbaugh) stokes grievance: “It’s the feminazis who did it to you...It’s the fags, they did it to you.”
  • Subcultures (military, pornography, hate groups) foster anti-female and anti-gay violence.
• Quote:

  “...let’s them feel more powerful because they have guns and hatred, blowing themselves up like a little bird that fluffs its feathers in order to look menacing. And it’s sad.”
  — Dr. Fraad [53:45]

f. Macro Takeaways: Capitalism, Policy, and Tragedy

[53:53–56:08]

• Societal Costs: Structural changes that benefit a tiny economic elite create incalculable social damage—the Orlando massacre as one tragic outcome.
  • “We permit in our society a very small number of people, those who run the big corporations, tiny percentage of our population, to make these unbelievably powerful social decisions...that they don't even have to take into account.”
    — Richard Wolff [53:56]
• Potential for Change: Both hosts suggest alternate social and economic structures could channel discontent into cooperation and support.
• Quote:

  “It’s a tragedy, and it’s an American tragedy.”
  — Dr. Fraad [54:56]

Notable Quotes & Memorable Moments

| Quote | Speaker | Timestamp | |-------|---------|-----------| | “It’s a scandal. It’s a shame. And to not have raised it over the last seven years is a worse scandal and a bigger shame.” | Richard Wolff | 05:50 | | "Making them able to run and be in charge of their own businesses will show the rest of American society what this model can do." | Richard Wolff | 12:55 | | "We are witnessing...the disintegration, the dysfunction of an economic system that cannot provide the goods and the services to the mass of people that it once did." | Richard Wolff | 21:05 | | "He was surrounded by hatred. His hatred of himself...you take it inside." | Dr. Harriet Fraad | 35:19 | | "The way people develop a sense of self is through the mirror of the social glances of other people's eyes." | Dr. Harriet Fraad | 35:21 | | “Manhood was tied to economic dominance because men got higher wages and they had the money that the family needed and women and children were dependent on them, which made the man the king of his household.” | Dr. Harriet Fraad | 51:22 | | “It’s a tragedy, and it’s an American tragedy.” | Dr. Harriet Fraad | 54:56 |

Timestamps for Key Segments

• [02:30] - Minimum wage hikes and federal stagnation
• [08:35] - U.S. prison economics & the Marcora Law
• [13:50] - Signs of continued global and U.S. economic distress
• [22:26] - GMO labeling and legislative capture
• [29:47] - The psychology and economics of the Orlando massacre (start of Dr. Fraad discussion)
• [31:30] - Detailed analysis of the Orlando shooter’s background and motivation
• [37:30] - Links between employment, violence, and social context
• [41:33] - Family wage, loss of status among men, and rising social dislocation
• [45:21] - Scapegoating in response to economic stress
• [51:22] - Masculinity, economic power, and gun culture
• [53:53] - The macro-level tragedy and policy reflections

Conclusion

This episode of Economic Update deftly connects large-scale economic shifts to individual psychological crises and social tragedies, using the Orlando shooting as a case study. Through detailed economic critique and psychological insight, Wolff and Fraad argue that systemic dysfunction, loss of social status, and scapegoating are interwoven—and that meaningful prevention and healing require both economic and cultural change. For listeners, the episode serves as a powerful call to recognize and address the deep roots of social violence and dislocation in our economic arrangements.