Economic Update: Public Policy, Private Pain

Podcast: Economic Update with Richard D. Wolff
Host: Richard D. Wolff, Democracy at Work
Guest: Dr. Harriet Fraad
Air Date: October 4, 2018

Episode Overview

In this episode, Richard D. Wolff explores the intersection between public policy and the everyday struggles and pain experienced by ordinary people. He examines how government decisions, particularly those related to health care, labor, and trade policy, create private suffering amidst booming profits for corporations. In the second half, guest Dr. Harriet Fraad joins to discuss the historical interplay of public policy and family life in the United States, focusing on women’s shifting roles from World War II to the women's liberation movement of the 1970s.

Key Discussion Points & Insights

1. Health Care Inefficiency in the U.S.

[00:10 - 06:50]

• Wolff highlights findings from the Bloomberg Health Efficiency Score, which ranked the U.S. among the least efficient health care systems worldwide.
  • The U.S. spends the second highest amount per person on health care ($9,536), yet outcomes lag behind top-ranked countries like Switzerland.
  • Life expectancy in Switzerland is 4.2 years longer than in the U.S.
  • The American reliance on a market-based, private health care system contributes to high costs and poor results.
• Memorable Quote:
  • "We are among the least efficient countries in health care. Why is that? Because the outcomes in American health are poor and the cost astronomical. And why is that? Because we have a private health care system." — Richard Wolff [04:25]

2. Labor Movements and Inequality in Poland

[06:50 - 09:00]

• Discusses a large-scale march by 15,000 workers in Warsaw, Poland.
  • The protest targeted income inequality: "growth" has mostly benefited the richest 10%.
  • Unions demanded fairer distribution of wealth, signaling a return to a broader social justice agenda.
• Insight:
  • Labor movements can act beyond narrow interests, advocating systemic change and greater democracy in wealth distribution.
• Quote:
  • "We help to produce the profits, we get a say in distributing them. I urge everyone to think long and hard about a labor movement that goes in that direction. Bravo for a long overdue demand." — Richard Wolff [08:45]

3. Money in Politics: The Duluth News Tribune Policy

[09:00 - 10:40]

• The Duluth News Tribune’s new policy requires payment to publish letters endorsing political candidates.
  • Wolff argues this further undermines democracy by enabling money to determine political speech and publicity.
• Quote:
  • "Politics is corrupted when money plays that role. Money shouldn't determine whether you get your notice in the paper or anything else. That's no basis for a democratic politics." — Richard Wolff [10:22]

4. U.S.-China Trade Tensions and Auto Industry Fallout

[10:40 - 15:27]

• Critiques President Trump’s tariffs on China and the downstream consequences for American carmakers.
  • Tariffs have driven China to forge new, lucrative deals with German automakers (Volkswagen, BMW, Daimler) and others.
  • China's edge in developing driverless car technology is supported by new city infrastructure, unlike the U.S.
  • The U.S. risks long-term economic damage and loss of future market leadership.
• Quote:
  • "The United States will be paying for a long time for the political posturing of the Trump administration. And the sooner we understand that, the sooner something maybe will be done about it." — Richard Wolff [14:55]

Featured Interview: Dr. Harriet Fraad—Public Policy, Private Pain

[16:00 - 28:08]

Framing the Issue

• Wolff asks Dr. Harriet Fraad to explain her thesis: Public policy often supports profits at the expense of family and household wellbeing, yet those same policymakers often portray themselves as family defenders [16:04].
  • Dr. Fraad describes how this contradiction is embedded throughout modern U.S. history.

Historical Shifts and Their Impacts

a. World War II: Women in the Workforce [17:42 - 22:06]

• Public Policy: Men drafted; women heavily recruited to factories, supported by massive propaganda ("Rosie the Riveter").
• Support: Minimal; underdeveloped child care, no systemic family support.
• Private Consequences:
  • Serious strain on women and families—chemical hazards in factories; exhaustion; emotional and physical toll.
  • Epidemic of psychogenic tuberculosis among women; family dislocation as children were boarded out.
• Quote:
  • "They did not look at what this costs... They came home exhausted from their physically tiring jobs to needy kids and no childcare...huge dislocation for children." — Dr. Harriet Fraad [20:31]

b. Post-War Reversal: Women Back to the Home [22:06 - 25:27]

• Public Policy: Propaganda shifted to push women out of jobs to make way for returning men; GI benefits denied to female veterans.
• Economic Outcomes: Corporate profits soared; women's newfound independence reversed.
• Private Consequences:
  • Emotional distress, unemployment or underemployment for women; forced dependence on potentially unstable family situations; lower pay ("$0.59 on the dollar").
  • Emergence of "emotional divorces" and widespread familial unhappiness.
• Quote:
  • "After pulling women out of the household into the workplace, [they] now pushed them back...pushed into dependence on men, which may not work out." — Dr. Harriet Fraad [24:02]

c. 1960s-1970s: Women's Liberation [25:27 - 28:08]

• Context: Experiencing the whiplash of changing roles, a generation of women rebelled against being confined again.
  • 1963: Betty Friedan’s The Feminine Mystique frames a "problem that has no name."
  • 1968: First women's liberation publications emerge; young women seek more fulfilling lives.
• Quote:
  • "Instead of yes, we can, it was no, you can't. And those jobs that they still were in...were so low paid they couldn't support themselves." — Dr. Harriet Fraad [27:15]

Notable Quotes & Moments

• "We are among the least efficient countries in health care. Why is that?...Because we have a private health care system." — Richard Wolff [04:25]
• "We help to produce the profits, we get a say in distributing them. I urge everyone to think long and hard about a labor movement that goes in that direction." — Richard Wolff [08:45]
• "Politics is corrupted when money plays that role...That's no basis for a democratic politics." — Richard Wolff [10:22]
• "The United States will be paying for a long time for the political posturing of the Trump administration." — Richard Wolff [14:55]
• "They did not look at what this costs...huge dislocation for children." — Dr. Harriet Fraad [20:31]
• "After pulling women out of the household into the workplace, [they] now pushed them back...pushed into dependence on men, which may not work out." — Dr. Harriet Fraad [24:02]
• "Instead of yes, we can, it was no, you can't." — Dr. Harriet Fraad [27:15]

Important Timestamps

• [00:10-06:50]: U.S. health care inefficiency and the Bloomberg Health Index results
• [06:50-09:00]: Poland labor protest and distribution of economic growth
• [09:00-10:40]: Money and influence in politics—Duluth News Tribune
• [10:40-15:27]: U.S.-China tariffs and impact on the auto industry
• [16:00-28:08]: Dr. Harriet Fraad on public policy’s private costs, WWII to the 1970s

Tone and Style

Richard D. Wolff’s tone is critical, analytical, and impassioned, directly connecting macroeconomic policy to real-life consequences. Dr. Harriet Fraad brings a historical and psychological dimension, unpacking how big-picture policies translate into intimate pain, especially for women and families. Both use vivid historical examples and memorable phrases, arguing for systemic change and more equitable policy considerations.

This summary captures the central themes and arguments of the episode, highlighting essential quotes and structuring the flow of the discussion for easy reference and deeper understanding.