Economic Update with Richard D. Wolff

Episode: Transition Beyond Capitalism
Date: October 12, 2017

OVERVIEW

In this episode, Richard D. Wolff examines the economic and social crises emerging under contemporary capitalism and explores how these dynamics are propelling a potential transition toward a more democratic, cooperative economic system—specifically, worker cooperatives. He grounds the discussion in historical transitions between economic systems, critiques of current U.S. policies (on immigration, public goods, labor, and inequality), and responds to listener questions about the possibilities and processes of moving “beyond capitalism.”

Key Discussion Points & Insights

1. Economic Lies and Realities of Immigration

• Leaked Government Report on Immigrants’ Contributions (00:10–06:30)

  • Wolff discusses a leaked government document showing that, over the last ten years, immigrants and refugees contributed $63 billion more to the U.S. economy than they cost.
  • He criticizes the Trump administration (specifically Stephen Miller) for twisting statistics and scapegoating immigrants instead of addressing inequality and refusing to tax the wealthy.
  • Quote:
    • “Statistics don’t lie, but statisticians can and do.” — Richard D. Wolff (01:45)
  • Economic contributions of immigrants are long-term gains, not to be negated by short-term adjustment costs.

• Economic Consequences of Anti-Immigration Policies

  • Wolff points to shortages in agricultural labor in California and the resulting higher food prices and increased reliance on imports, underscoring the negative effects of immigration crackdowns.

2. Rise of BRICS and Shifting Global Economic Power (06:30–12:30)

• The BRICS nations (Brazil, Russia, India, China, South Africa) now account for 30.4% of global output (up from 15.4% twenty years ago), while the U.S. share dropped from 23% to 18.2%.
• The shift indicates a redistribution of global economic power, challenging U.S. supremacy—a historical echo of earlier tectonic shifts when capitalism ascended in the West.
• Memorable Moment:
  • Wolff questions if America’s military assertions are compensating for lost economic power:
    • “Are we flashing our military power and predominance because the economic foundation isn’t there for it anymore?” — Richard D. Wolff (11:55)

3. Privatization and the Erosion of Public Goods

• Public Libraries Under Threat (12:30–18:00)

  • U.S. cities and towns, facing budget constraints linked to political unwillingness to tax wealth, are closing or privatizing libraries.
  • Companies like Library Systems and Services (LS&S) take over, reduce costs by cutting wages and services, and reduce community accountability.
  • Wolff challenges the faith in privatization, noting a lack of evidence for the inherent efficiency of private vs public provision of goods.

• Quote:

  • “There’s absolutely no evidence from the economics profession…that [private is] always and necessarily more efficient than public enterprise.” — Richard D. Wolff (16:40)

4. Contemporary Slavery and Child Labor in the Global Economy

• ILO and Modern Slavery Report (19:35–24:00)
  • Latest estimates indicate 40 million victims of modern slavery, including 152 million children in child labor.
  • Women and girls are disproportionately affected, representing 71% of modern slaves.
  • Wolff connects current forced labor practices, such as those in the supply chains (e.g., CP Foods supplying Walmart), to historical systems of indentured servitude.
  • Quote:
    • “Next time you eat that shrimp cocktail, think again…” — Richard D. Wolff (23:50)

5. The ‘Gig Economy’ and the Return of Dangerous Labor Conditions (24:00–27:40)

• The gig economy (Uber, Deliveroo, etc.) is reframed not as freedom, but as the re-emergence of exploitative labor practices, undoing generational struggles for limits like the 8-hour workday.
• Explains how these shifts represent a rollback of labor protections won through centuries of worker activism.
• Quote:
  • “…the gig economy is an attempt to get around the limits of an eight-hour working day without having to pay the price or even to face the music that that’s what you’re doing.” — Richard D. Wolff (25:25)

6. Transition Beyond Capitalism: Lessons from History and Modern Paths Forward

(Main Theme, Second Half: 29:35–End)

Historical Context: From Feudalism to Capitalism (29:35–35:00)

• Wolff recalls how systemic changes—e.g., serfs fleeing manors for emerging cities—led to new economic arrangements. Capitalism grew from dissatisfaction with (and escape from) feudal arrangements.

• Transition included conflict, eventual dominance, and the creation of supporting institutions such as new government alignments.

• Quote:

  • “Changing economic systems have been as pronounced a feature of human history as has changing technology…” — Richard D. Wolff (30:10)

Signs of Systemic Crisis Today

• Contemporary capitalism is increasingly unable to meet the needs of people—paralleling late feudal crises.
• Both small capitalists (e.g., aging business owners) and workers, especially young people, are seeking alternatives.

Worker Cooperatives: Emerging Alternative (35:00–48:00)

• Narrates real-world examples of business owners transitioning to co-ops to protect community interests, and of workers, especially youth, seeking meaningful, participatory work.

• Co-ops are posited as a vehicle for economic democracy—workers collectively own and decide on workplaces, from operations to distribution of income.

• Quote:

  • “Let’s bring the democracy we were taught to admire, to respect, and to want, into the workplace where maybe it should have been all along anyway.” — Richard D. Wolff (39:50)

Democracy in the Workplace vs Capitalist Autocracy (44:00–47:50)

• Contrasts current corporate governance—decisions by a handful of executives for thousands/millions—with genuinely democratic co-ops.
• Provocative Question:
  • “If democracy means, as I believe it does, that if you’re affected by a decision, you have the human right to participate in it…You don’t have that in your workplace.” — Richard D. Wolff (44:55)

Radical Redistribution and Economic Possibility (47:00–48:35)

• Assuming equal distribution of national income, each family of four in the U.S. could receive $200,000/year—illuminating the possibilities for fairness not realized under current capitalism.
• If workers controlled distribution, extremes of inequality would be replaced by broad prosperity—a change as profound as the prior capitalism/feudalism transition.

Notable Quotes & Memorable Moments

• On the Use of Scapegoats:

  • “Scapegoats are useful, and immigrants is a way to focus people on issues that take them away [from the real issues].” (05:20)

• On Historical Change:

  • “Capitalism was born out of much violence along the way. Doesn’t mean it has to go that way. But it did in the case of capitalism’s transition, and it often has.” (33:10)

• On Modern Work:

  • “Young kids, they want a job where they have some control…work to be meaningful. They can’t find that in a capitalist enterprise.” (38:16)

• On Democracy at Work:

  • “That’s not democracy, folks. That’s the opposite of democracy. That’s autocracy. That’s aristocracy.” (45:55)

• On Potential Prosperity:

  • “We wouldn’t have a society that has 0.001% of the people with more money than they know what to do with and everybody else scrounging around.” (48:05)

Timestamps for Important Segments

| Timestamp | Segment Summary | |-----------|------------------------------------------------------------| | 00:10–06:30 | Immigration, scapegoating, and the net positive contributions of immigrants | | 06:30–12:30 | The rise of BRICS, the global economic balance shifting | | 12:30–18:00 | Privatization of public libraries and the myth of private efficiency | | 19:35–24:00 | Modern slavery, child labor, global supply chains | | 24:00–27:40 | The gig economy and the erosion of labor protections | | 29:35–35:00 | Historical transitions: feudalism to capitalism | | 35:00–44:00 | Signs of capitalist crisis, rise of worker cooperatives | | 44:00–47:50 | Democracy in the workplace, current absence thereof | | 47:00–48:35 | Equal wealth distribution, radical economic transformation|

Conclusion

Wolff urges listeners to see both historical precedent and present crisis as signals that systemic change is possible and necessary. He situates the push for worker cooperatives not merely as isolated solutions, but as the leading edge of a potentially epochal shift—one that could finally unify workplace life with the ideals of democracy, equality, and meaningful participation.

Call to Action:
Engage with and spread economic knowledge via the program’s resources, share these ideas, and envision the coming economic transition as both personal and profoundly societal.