Economic Update with Richard D. Wolff

Episode: Real Economic Journalism
Date: February 17, 2017

Episode Overview

This episode of Economic Update, hosted by Richard D. Wolff, focuses on the importance of "real economic journalism" and critically examines several urgent economic and political developments in the U.S. and internationally. Professor Wolff dissects tax policy and corporate power, the Trump administration’s orientation toward business and education, and the consequences for ordinary Americans. In the second half, journalist Bob Henley joins the show, offering first-hand insights into investigative journalism’s role in exposing government and corporate accountability, the scapegoating of immigrants, union activism, and housing policy solutions.

Key Discussion Points & Insights

1. The Stock Market’s Response to Trump’s Election

(00:00–04:40)

• Wolff notes that the stock market has performed well since Trump’s election, breaking significant milestones like the 20,000 mark on the Dow Jones.
• He attributes this to expectations of deregulation and tax cuts for corporations, not to improvements for the general public:

  “For the people who run this economy ... they see good news ... a Trump government ... to deregulate American business ... and to lower taxes on American business basically across the board.” (03:12, Wolff)

2. Switzerland’s Corporate Tax Referendum: Lessons for the U.S.

(04:40–15:30)

• Explains Switzerland’s system where cantons compete by lowering corporate taxes to attract business—leading to a “race to the bottom” also mirrored in the U.S.
• European pressure forced Switzerland to propose equalizing taxes, but the government softened the blow by lowering all business taxes—sparking a public referendum.
• 59% of Swiss voters rejected this, prioritizing public services and fair taxation.
• Key insight: Direct democracy enables citizens to block tax policies they see as unfair, a mechanism missing in U.S. governance.

  “The Swiss showed that a population given a chance to vote on what goes on can actually figure it out really quite well and act accordingly.” (14:43, Wolff)

• Wolff connects this to Trump’s plan to cut corporate taxes in the U.S. with no referendum or popular input.

3. Income Inequality & the Lives of Billionaires

(15:30–20:40)

• Wolff describes billionaire Stephen Schwarzman’s lavish 70th birthday party—an example of the gulf between America’s financial elite and the general public.
• Quotes from Schwarzman’s social circle and former Yale president Richard Levin showcase the normalization of billionaire extravagance and philanthropy as PR:

  “‘The world is an uncertain place ... So it’s nice to have an evening where everybody’s happy, harmonious and upbeat.’” (19:32, unnamed billionaire via Wolff)

4. DeVos’s Education Policy: Public vs. Private

(20:40–27:25)

• Wolff evaluates Betsy DeVos’s appointment to oversee U.S. public education, discussing new research by Christopher and Sarah Lubienski:
  Public School Advantage: Why Public Schools Outperform Private Schools
• Findings: Public schools, especially in math, outperform private (incl. charter) schools, even when controlling for demographics.

  “There it is, friends. Betsy DeVos ... is committed to building expanding private charter schools who do less well for students than the public schools.” (23:30, Wolff)

• Argues competitive pressure pushes private schools to market over substance, while public schools integrate best practices by necessity, challenging the notion that free market competition ensures better education outcomes.

5. Investigative Journalism in a Changing Media Landscape

(29:30–34:25)

• Wolff introduces Bob Henley, lauding him as a rare investigative reporter.
• Henley recounts direct clashes with powerful figures like Sean Spicer, illustrating media suppression and the danger of challenging establishment narratives:

  “...called him up and was hit with ... a shower of epithets and obscenities and my lack of qualifications to be a reporter.” (33:13, Henley)

• Discusses the orchestrated PR behind political appointments (e.g., Andrew Puzder), showing how special interests create deceptive public support via “Astroturf” campaigns.
• Notable quote on media complicity:

  “As Les Moonves had said at one point ... ‘Donald Trump may be terrible for America, but he’s great for the stockholders.’” (34:02, Henley)

6. The Real Impact of Immigrants and Crime

(38:07–41:31)

• Henley shares his reporting on immigration and crime, challenging Trump’s scapegoating of immigrants.
• Cites New York City’s experience: As immigration increased, homicide rates fell drastically (over 2,200 in 1990 to 330 in 2016).

  “Over half a million undocumented immigrants came into parts of New York City ... stabilized neighborhoods and transformed them.” (39:06, Henley)

• Quantitative evidence shows immigrants help revitalize communities and reduce crime, contradicting political rhetoric.

7. Unions, Immigrants, and Construction Safety

(42:34–46:47)

• Henley reports that NYC construction and firefighters` unions have begun allying with immigrant workers, pushing for universal training and workplace safety rather than deportation.

  “What I’ve noticed ... the building trade started to come to understand that the undocumented immigrants ... are not their enemies, they’re their potential allies.” (42:37, Henley)

• Describes tragedies from unsafe workplaces, often affecting undocumented immigrants, and the coalition’s successful lobbying for improved standards.

8. Unions, Social Movements & Youth Employment

(46:47–51:50)

• Wolff and Henley discuss the urgent need for unions to expand their mission to champion broader social goods, like youth employment.
• Suggest that such leadership would not only aid youth but would help unions’ public image and political prospects.

  “One of the things that unions need to do is be about full youth employment.” (50:10, Henley)

9. Climate, Indigenous Rights & Labor

(52:39–53:14)

• Briefly, the conversation references Pope Francis’s support for indigenous rights and protection of sacred land, positioning global labor and social justice movements as allied causes.

10. Housing Crisis: Zombie Homes & Public Solutions

(53:16–55:44)

• Henley proposes solutions for the U.S. housing crisis: Immediate municipal takeover of abandoned “zombie” homes, a federal Works Progress-style housing program employing youth, and prioritizing public need over banking profits.

  “Empower municipalities to take possession of all homes that no one’s lived in for at least a year. Then create a Works Progress Administration [for housing]...” (54:32, Henley)

• Wolff sums up:

  “A public program not subordinated to private profit could solve employment problems, housing problems, deterioration of property value problems—all at the same time. Right. If you needed a critique of private capitalism, there it is.” (55:44, Wolff)

Notable Quotes & Memorable Moments

• “The corporations love this. This is a bidding war for them whose end result is lower taxes on business for all multinational corporations as they decide where to locate...” (06:45, Wolff)
• “No man should die because he wants to feed his family. There’s a breakthrough happening here that’s very good news for progressive politics.” (45:30, Henley)
• "Immigration is a nation builder, not a destroyer. That's my experience. That's what I've seen.” (41:10, Henley)
• "One of the things that unions need to do is be about full youth employment.” (50:10, Henley)

Selected Timestamps

• 00:00–04:40: Stock market’s post-Trump rally and who benefits
• 04:40–15:30: Switzerland’s tax referendum and implications for U.S.
• 15:30–20:40: Schwarzman’s billionaire birthday and American inequality
• 20:40–27:25: Betsy DeVos, public/private education, and new research
• 29:30–34:25: Bob Henley on investigative journalism and media suppression
• 38:07–41:31: Immigration, crime, and NYC’s transformation
• 42:34–46:47: Immigrants, unions, and construction safety in NYC
• 46:47–51:50: Union activism, public perception, and youth employment
• 53:16–55:44: Housing crisis and the promise of public solutions

Tone & Style

Both Wolff and Henley blend critical analysis with anecdotal reporting and occasional wry humor, maintaining an accessible, conversational, yet uncompromisingly critical tone toward structural inequality, corporate power, and mainstream media failures.

Summary Takeaway

This episode provides a rigorous, critical window into how economic policies—from tax law to education to labor and housing—impact everyday Americans and how empowered citizens and real journalism can make a meaningful difference. Wolff and Henley argue for democratic accountability, robust public programs, and a reinvigorated labor movement to push back against corporate domination and elite privilege.