Economic Update with Richard D. Wolff

Episode: The 'Immigration Issue' and Capitalism

Date: October 10, 2018
Host: Richard D. Wolff

Episode Overview

In this episode, Richard D. Wolff explores the economic and political roots of the “immigration issue” dominating global headlines. He critiques the prevalent narrative that blames immigrants for economic hardships, arguing instead that systemic failures of capitalism are at the heart of social discontent. The episode delivers incisive updates on contemporary economic news before providing a deep analysis of how capitalist structures foster inequality and scapegoat immigrants, offering alternative policy solutions grounded in social justice and economic fairness.

Key Discussion Points & Insights

1. Global Wealth and Inequality: British Liberal Democrats’ Policy Shift

[00:10 – 03:34]

• Wolff highlights an unusual move by Britain’s centrist Liberal Democrats, who center their platform on addressing wealth inequality.
• Shocking statistics: The bottom 50% of the UK population owns 9% of national wealth, while the top 10% own 44%.
• Proposed reforms:
  • Tax all gifts and inheritances above £250,000 ($300,000) at regular income tax rates.
  • Treat all forms of income (work, dividends, capital gains) the same in tax structure, ending preferential rates for non-labor income.
• Quote:

  “It’s a drastic departure and it’s a sign that the levels of inequality around the world are now so extreme that political parties that used to avoid talking about it are now focusing on it. The wind is changing and that will affect the United States later, if not sooner.”
  -- Richard Wolff, [02:55]

2. Corporate Pensions and Broken Contracts: The Sears Example

[03:35 – 07:29]

• Sears CEO Eddie Lampert blames company woes on pension obligations to current and former workers, implying these should be cut to save the company.
• Wolff fiercely critiques this as a betrayal: pensions are deferred wages, negotiated in exchange for lower current pay.
• Drawing a parallel to government bonds, he questions why public outrage differs between skipping on pensions and skipping on debt interest.
• Quote:

  “A pension is part of the contract between employer and employee ... to offer not to pay it would be the equivalent of the employer ... cutting your wages. It’s exactly the same thing.”
  -- Richard Wolff, [04:35]

3. Signs of Another Crisis: JP Morgan’s Warning

[07:30 – 09:05]

• JP Morgan, the largest U.S. bank, forecasts another financial crisis by 2020, predicting a 20% stock collapse.
• Wolff finds this staggering—after a decade of post-2008 suffering, the system is heading toward another disaster.
• He sees this as evidence of capitalism’s recurring instability.

4. The Opioid Crisis and Policy Failures

[09:05 – 11:35]

• Cites King County, Washington, which failed to implement 'safe consumption spaces' for drug users despite proven effectiveness.
• Budget obstacles and lack of federal support led to hundreds of preventable deaths.
• Quote:

  “The failure is not just a country that turns millions of its people to use drugs that are dangerous. It’s also the failure to deal with the problem when the solution for it is also known.”
  -- Richard Wolff, [10:53]

5. The G20 Meets—But the World Is Watching

[11:35 – 13:20]

• The G20’s focus on World Trade Organization reform is contrasted with global protests demanding action on poverty and inequality.
• Wolff notes disparity between discussions of the elite and struggles of the world’s poor.

6. Europe, Iran, and the Breakdown of U.S. Alliances

[13:20 – 15:09]

• European Union leaders look to circumvent Trump’s sanctions on Iran, developing methods to shield European companies.
• Wolff highlights the deepening rift in traditional U.S.-European cooperation.

7. Citigroup’s Slap-on-the-Wrist Fine

[15:09 – 16:01]

• The SEC’s $12 million fine against Citigroup for investor deception is a minuscule sum relative to the bank’s revenue.
• Wolff ridicules the lack of real consequences, reinforcing the impunity of large financial institutions.

FEATURE DISCUSSION: The “Immigration Issue” and Capitalism

[17:09 – 29:00]

A. Immigration as Political Flashpoint

• Immigration is the “dominant political burning point” worldwide, fueling Brexit, shaping U.S. elections, and driving the rise of right-wing parties in Italy, Sweden, and beyond.
• Wolff asks why bashing immigrants has become such an effective tactic for right-wing politicians.

B. Why Immigrants Get Blamed

• Economic unease—especially post-2008—makes easy scapegoats out of immigrants.
• Wolff lists common anti-immigrant narratives:
  • Immigrants “take jobs” and depress wages.
  • Immigrants consume social services funded by natives' taxes.
  • Fear of outsiders is easy to exploit during hard times.
• Quote:

  “Attacking immigrants is a kind of simple story to tell. If people are suffering economic decline ... blaming immigrants is a nice, convenient story.”
  -- Richard Wolff, [20:10]

• Underlying cause:
  • The real source of hardship is a capitalist system exporting jobs and prioritizing profit, not struggling migrants.
  • Diverting blame protects elites from accountability.

C. Critique of the Left’s Response

• The left’s principled defense of immigrants often centers on morality—condemning discrimination and championing America’s history as a nation of immigrants.
• However, this approach can further alienate struggling natives who feel accused and unheard.

D. What Is the Alternative?

• Wolff argues for a program that unites the interests of natives and immigrants:
  • Guarantee jobs and decent livelihoods for all—immigrants and natives alike.
  • Offer full employment and a living wage through public policy.
  • Tax the concentrated wealth of the richest to fund these measures, reducing inequality and social competition.
• Quote:

  “The way to welcome an immigrant is the way to treat everybody in this country who isn't an immigrant as well: a guaranteed job at a decent income that you and your family can live with.”
  -- Richard Wolff, [27:03]

• If wealthy interest groups resist funding decent lives for both immigrants and natives, they should bear the consequences rather than displacing blame downward.

E. Final Proposal

• Integrate immigrants by raising social standards for everyone.
• End the cycle of pitting “native” and “immigrant” labor against each other, and redirect responsibility to those who profit from division and low wages.
• Quote:

  “It would make immigration something that goes together with taking care of the people here and making those at the top pay for it, which is what we should have done long ago and would be a much better way to handle this situation.”
  -- Richard Wolff, [29:00]

Memorable Moments & Notable Quotes

• “If that's not a critique of capitalism, I wouldn't know what is.” ([08:44])
• "The punishment for Citigroup was 0.001% of their revenue. It’s a slap on the wrist that provides no incentive not to do this.” ([15:53])
• “Blaming immigrants is a cynical, cruel and inaccurate assessment of what the problem is.” ([26:20])

Important Timestamps

• Wealth Inequality in Britain: 00:10–03:34
• Sears Pensions Debate: 03:35–07:29
• JP Morgan Crisis Warning: 07:30–09:05
• Opioid Crisis & Safe Consumption Spaces: 09:05–11:35
• G20 & Global Inequality: 11:35–13:20
• Europe v. US on Iran: 13:20–15:09
• Citigroup SEC Fine: 15:09–16:01
• Immigration as Political Weapon: 17:09–20:40
• The Left’s Challenge & Alternative Vision: 25:30–29:00

Conclusion

Richard D. Wolff’s episode dismantles anti-immigrant rhetoric as a diversion from the systemic failures and inequities of capitalism. Rooted in economic analysis, he advocates for universal economic security—guaranteed jobs, decent wages, and fair taxation of wealth—as the way to both support current residents and humanely welcome newcomers. The episode underscores the importance of solidarity and systemic reform in combating the narratives of division that dominate today’s politics.