Economic Update with Richard D. Wolff

Episode: Strikes and the Labor Movement Today

Original Air Date: October 1, 2017

Host: Richard D. Wolff (RW)
Guest: Bob Henley (BH), Investigative Reporter

Overview

This episode of Economic Update focuses on contemporary labor issues, including the causes and consequences of major strikes, the decline and possible resurgence of the labor movement, and broader economic conditions affecting workers in the United States. Richard D. Wolff discusses critical economic news before welcoming guest Bob Henley for a deep dive into the Charter Spectrum strike in New York and reflections on the future of American labor.

Key Discussion Points & Insights

1. California Disclose Act and Political Campaign Funding

([00:10]–[05:00])

• California’s Campaign Finance Reform: Wolff discusses a major legislative development — the passage of the California Disclose Act, aimed at campaign finance transparency. He highlights its potential national and global impact.

  • Quote: “As California goes, so well may much of the rest of the country.” — RW ([01:15])

• Core Economic Principle: The importance of knowing who funds political campaigns, and whether transparency is crucial for democracy.

2. Retail Store Closures: The 'Catastrophic' Impact

([05:00]–[10:53])

• Staggering Numbers: 6,400 retail stores set to close in 2017, impacting jobs, communities, and tax revenues.

  • Notable chains closing: Radio Shack (1,430), Payless (808), Asina Group (667), The Limited (250), Family Christian (240), Kmart (230), J.C. Penney (138).

• Systemic Critique:

  • Closures were profit-driven decisions by corporate leadership, with little planning for social impact.
  • Reluctance for foresight or economic planning leads to widespread community harm.
  • Quote: “Profit calculations by a tiny group of people led to the decision to close 6,400 retail outlets in the United States in 2017.” — RW ([09:10])

• Broader Implications: Loss of community centers, decreasing local tax bases, and the bleak visual of abandoned malls.

3. Decline in Housing Starts and Growing Inequality

([10:53]–[15:56])

• Key Statistic: Housing starts dropped 8.8%, marking a second consecutive monthly decline.

• Underlying Cause: Jobs added in the “recovery” are mostly low-wage, with little job security—these workers can't afford home ownership.

  • Builders shift to constructing high-end homes for the wealthy.

• Structural Outcome: Economic gains accrue to a small wealthy segment, while the masses face stagnant or declining prospects.

• Quote: “It’s another sign that when you allow the inequality of income to reach the dimensions it now has in the United States, there are consequences down the line.” — RW ([13:00])

4. Corporate Support for DACA and Labor Economics

([15:56]–[18:35])

• Unusual Alliances: 800+ corporations, including Walmart, Pepsi, Viacom, urge the Trump administration to protect DACA beneficiaries (young immigrants).

  • Noted support from Colin Kaepernick.

• Economic Incentive for Corporations: Immigrant labor is attractive due to willingness to accept lower wages and working conditions.

• Quote: “Walmart, Target...they know something. They know that the children of immigrants have modest expectations... and are highly motivated.” — RW ([16:45])

5. Child Poverty and Racial Disparities

([20:00]–[26:12])

• Stark Statistics:

  • White & Asian American child poverty: 11%
  • Native American: 34%
  • Black/African American: 31%
  • Hispanic: 27%

• Systemic Failure: Large-scale, racially-unjust child poverty continues due to lack of political will and insufficient, piecemeal interventions.

• Quote: “If you condemn the children of this society to these kinds of conditions, you are guaranteeing problems galore in the years ahead.” — RW ([24:50])

6. Financial Deregulation: Self-Reporting Misdeeds

([26:12]–[27:33])

• Regulatory Rollbacks: The Commodity Futures Trading Commission (CFTC) shifts to greater reliance on banks “self-reporting” their own wrongdoing, moving away from direct oversight.

• RW’s Reaction: This is “right up there in the ‘you can’t be serious’ category.”

  • Quote: “It boggles the mind...this government is doing something for its friends, and if you don’t notice it doing much for you, draw your own conclusions.” — RW ([27:25])

Main Interview: The Labor Movement Today with Bob Henley

([29:56]–[56:50])

1. The Charter Spectrum Strike: A Microcosm

([31:29]–[36:03])

• Background:

  • Local 3, International Brotherhood of Electrical Workers, on strike for ~6 months against Charter Spectrum (formerly Time Warner), now a giant telecom monopoly.
  • CEO Tom Rutledge received a $100 million payday.
  • Only 2,500 out of 90,000 workers (nationwide) are in a union.
  • Mergers fueled by massive debt ($60+ billion), leading to higher consumer prices.

• Quote: “This is the definition of vulture capitalism. We just really miss those cartoons of the 19th century that depicted...the Vanderbilts and the Rockefellers.” — BH ([36:43])

• Implication: Breaking such a skilled, historic union in NYC is seen as a signal to labor nationwide.

2. Decline of American Unions and Shifting Labor Dynamics

([37:20]–[41:17])

• Union Membership Plummets: From ~35% of private sector in mid-20th century to just 6.4% now.

• Connection to Workers’ Plight: Declining unions parallel stagnant/declining real wages.

• Republican Motives:

  • Rhetoric about "big labor" is largely obsolete; the real driver is serving wealthy interests.

  • Quote: “They don’t have to worry about accelerating concentration of wealth...their paymasters.” — BH ([40:49])

• Public Support but Institutional Weakness: Despite majority support for unions, labor participation keeps dropping.

3. Corruption, Community, and New Possibilities for Solidarity

([42:22]–[46:11])

• Historical Corruption harmed unions’ reputations: Reference to the Teamsters and "On the Waterfront."

• Encouraging Signs:

  • Recent victories (e.g., Verizon/CWA strike succeeded with global solidarity).
  • New community and cross-union support structures, like the movement for a $15 minimum wage.

• Quote (from Police Union Leader Pat Lynch, as read by RW):

  “Regardless of whether we wear a uniform or hard hat or an eight point cap, it is all the same fight and we are here to join it.” — Pat Lynch, NYPD, via RW ([45:38])

4. Cross-Union Solidarity and Community Links

([46:11]–[48:45])

• Police & Firefighter Unions Supporting Striking Workers:

  • Letters and public support; police publicly align with striking cable workers.
  • Marks a rare and notable moment of inter-union solidarity.

• Why Not More Outrage?

  • American “ambivalence about great wealth.”

  • Persistent myth that anyone can become rich, so outrage is blunted.

  • Quote: “Individuals in America...their imaginations have been captured by the thought that I could be that person to make the hundred million dollars.” — BH ([49:05])

5. Revitalizing the Labor Movement: Strategies for the Future

([50:07]–[55:06])

• Diversity & Succession:

  • Unions must invest in leadership opportunities for women and young people.

  • Must represent the rank and file and invest in member education.

  • Quote: “One of the problems is that most American schools… is missing this piece about the labor movement. A lot of young people...think that’s just the way it’s been. They don’t understand that people died literally to get those benefits.” — BH ([51:15])

• Outreach & Community:

  • Unions should not only focus internally but show real solidarity with broader community struggles.

• Labor History as Inspiration:

  • Teaching about the CIO’s Depression-era wins could motivate current activism.

  • Quote: “It’s unbelievable what the union movement could get when it was mobilized and strong. If you taught that, it might dawn on a good number of leaders and rank and file that this is their task...” — RW ([53:26])

6. Technology, Automation, and the Next Economic Battle

([55:06]–[55:55])

• Automation Threat:
  • Looming job losses (e.g., driverless vehicles) make a strong, modern labor movement an urgent necessity.
  • Only through collective action can technological change benefit the many, not the rich few.
  • Quote: “It really is fish or cut bait time.” — RW ([55:54])

7. Signs of Hope and the Role of Social Media

([56:00]–[56:50])

• Social Media as a Tool:

  • Young people and grassroots activists increasingly use digital platforms to mobilize and support labor actions (e.g., CWA/Verizon strike, Fight for $15).

• Populist Momentum:

  • Republican efforts to repeal the Affordable Care Act have inadvertently fostered progressive organizing and fast, responsive community action.

  • Quote: “It’s like the equivalent of a progressive Minuteman...that cohesion can spring up even quicker.” — BH ([56:18])

Notable Quotes & Memorable Moments

• "[Store closures] It means enormous losses in wealth... tens of thousands of jobs lost... This is a catastrophe, economically speaking." — RW ([07:04])
• "When you allow the inequality of income to reach the dimensions it now has in the United States, there are consequences down the line." — RW ([13:00])
• "We have to stand together as unions to stop it here because they will use it at my doorstep tomorrow." — RW, quoting Pat Lynch ([45:10])
• "It is just this side of criminal to have such a situation [of child poverty] and... a government... that does not want to raise and apply the resources needed..." — RW ([25:47])
• "21st-century feudalism. We're here." — BH ([55:55])
• "If the unions aren't strong, if the working class doesn't or eye that debt and demand its interpretation of what ought to be done, it'll get more of the rich becoming even richer and the rest of them facing a jobless future." — RW ([55:33])

Timestamps for Key Segments

• California Disclose Act: [00:10]–[05:00]
• Retail Closures: [05:00]–[10:53]
• Housing & Inequality: [10:53]–[15:56]
• DACA Corporate Support: [15:56]–[18:35]
• Child Poverty Data: [20:00]–[26:12]
• CFTC Deregulation: [26:12]–[27:33]
• Interview Start—Labor Movement: [29:56]
• Charter Spectrum Strike: [31:29]–[36:03]
• Union Decline & Impacts: [37:20]–[41:17]
• Solidarity Quote/Police Union: [45:10]–[46:11]
• Strategies for Revitalization: [50:07]–[55:06]
• Technology/Automation Challenges: [55:06]–[55:55]
• Social Media & Hope: [56:00]–[56:50]

Conclusion

Richard D. Wolff and guest Bob Henley dissect the roots and stakes of today’s labor strife, the structural erosion of union strength, and the urgent need for organizing, education, and solidarity in the face of growing inequality and technological upheaval. From the specifics of the Charter Spectrum strike to the hopeful signs in new grassroots energy, this episode delivers a compelling snapshot of labor’s challenges—and possibilities—in 21st-century America.