Economic Update with Richard D. Wolff

Episode: US "Sugar Arrangements" Industry

Date: November 1, 2018

Overview

In this episode of Economic Update, host Richard D. Wolff examines the broader theme of how economic inequality shapes both politics and everyday life, culminating in a focused discussion on the “sugar arrangements” industry—a rapidly growing sector where largely young women, often students, enter negotiated relationships with wealthy men (“sugar daddies”) to alleviate financial pressures, primarily education debts. Guest Dr. Harriet Fraad, a mental health counselor with expertise in the intersection of economics and personal life, joins Wolff to unpack the personal, cultural, and economic implications of this phenomenon.

Key Discussion Points & Insights

1. Global Political Context and Capitalist Discontent (00:36–14:33)

• Contextualizing Elections Globally:

  • Wolff begins by reflecting on recent right-wing electoral victories in Brazil and shifts in Germany, noting the population’s disenchantment with centrist, establishment parties.
  • Quote:
    "I think these elections have something in common. The rejection of the mass of people... with conventional politics, with the old establishment..." (01:34)

• Economic Crash and Austerity:

  • Recession of 2008 followed by bailouts for banks/corporations, then a decade of austerity, led to increased public anger and political upheaval.
  • Relates Brexit and Trump’s rise to the public’s frustration with "dying capitalism."

• Critique of Right-Wing Responses:

  • Wolff predicts the right will fail to provide solutions, and will likely blame the left for systemic shortcomings.

• Absence of Core Issues in US Midterms:

  • Major issues—ongoing wars, economic inequality, and the rise of socialism—are not on the ballot; elections often sidestep substantive debate.

• Criticism of US Council of Economic Advisers Report:

  • Wolff dismisses its quality, particularly its critique of socialism, for ignoring China’s rapid economic and wage growth.
  • Quote:
    "There can't be any disagreement about the following facts... Over the last 20 years, one country has grown faster than every other. It's not the United States, it's the People's Republic of China." (09:34)

• Billionaire Wealth & Inequality:

  • In 2017, the world’s billionaires saw a 20% increase in combined wealth ($1.4 trillion).
  • Quote:
    "The capitalist system can boast that it is literally making the rich richer. And the rest of us, well, not so much." (12:37)

• Transparency in War Assessment:

  • US Army report on the Iraq war has been suppressed, highlighting how leadership avoids accountability for costly decisions.

• Student Debt & State Policy:

  • Maine’s program subsidizes student debt for those who work in-state—ultimately a state-level “beggar-thy-neighbor” approach, mirroring national “America First” policies.

2. The “Sugar Arrangements” Industry: Economic and Emotional Dynamics (16:54–28:29)

What Are Sugar Arrangements? (17:04–19:11)

• Industry Overview:
  • A 3.5 million person industry in the US where primarily young women (most commonly students) form paid, negotiated relationships with wealthy men, typically called "sugar daddies."
  • Aim: Provide “girlfriend experience”—often not limited to or always including sex— in exchange for financial compensation.
  • Quote (Dr. Harriet Fraad):
    "The biggest group of sugar babies in the United States are college students or graduate students... [who] can graduate... without the crushing debt that takes 20 years to pay off by providing a girlfriend experience, with or without sex, to the sugar daddy when he's in town." (17:42)

Economic Inequality and Its Reflection (19:11–19:53)

• Inequality Illustrated:
  • Sugar arrangements are a symptom of increased concentration of wealth—students depend on rich businessmen, who, in turn, benefit from the system’s inequalities.

Emotional and Social Dimensions (19:53–21:15)

• Commodification of Relationships:

  • Emotional connection is often simulated; arrangements are transactional but designed to mimic authentic relationships.
  • Quote (Fraad):
    "The man gets to delude himself into feeling that he has a personal, emotional relationship... when they give money, they feel they have an emotional engagement." (19:54)

• Nature of Arrangements:

  • Everything is negotiated—time, availability, boundaries—unlike traditional dating.

Financial Details (21:15–21:45)

• Monetary Value:
  • Average arrangement: $2,500/month, which can significantly reduce student debt burden.

Commodification and Cultural Impact (21:45–23:41)

• Everything Monetized:
  • This trend is consonant with broader societal monetization, seen even in politics.
  • Predominantly an American phenomenon, reflecting the country’s dramatic post-1970 shift from most to least equal among developed nations.

Educational Institutions’ Response (23:41–24:46)

• Universities Ignore the Issue:
  • Despite its scale (e.g., fastest growth at NYU), universities do not officially acknowledge or address the phenomenon.

Social and Psychological Consequences (25:17–27:49)

• Separation of Sex and Intimacy:
  • Reflects and furthers a societal trend—sex is increasingly divorced from emotional intimacy for both men and women.
  • For women, acts as a pragmatic, high-stakes investment to secure debt-free graduation.
  • Quote (Fraad):
    "What it does is it monetizes everything and it further increases sex from intimacy. Women, for identifying as recipients of male wealth in a vastly economically unequal experience..." (25:39)
  • Shifts in marriage: Most 18–35-year-olds are delaying or forgoing marriage due to economic instability.
  • Statistic:
    • Average student debt: $37,172; NYU’s yearly cost exceeds $68,000.

Subtle Emotional Impacts (27:49–28:29)

• Rules & Perceptions:
  • Sugar arrangements often require that the financial component not be mentioned openly, helping maintain the illusion of voluntary, genuine relationships.

Notable Quotes & Timestamps

• "I think these elections have something in common. The rejection of the mass of people... with conventional politics, with the old establishment..."
  — Richard D. Wolff, (01:34)

• "The right wing has no solutions for this problem of a dying capitalism, since mostly they pretend that that problem isn't there."
  — Wolff, (04:53)

• "There can't be any disagreement about the following facts... Over the last 20 years, one country has grown faster than every other. It's not the United States, it's the People's Republic of China."
  — Wolff, (09:34)

• "The capitalist system can boast that it is literally making the rich richer. And the rest of us, well, not so much."
  — Wolff, (12:37)

• "The sugar arrangements industry is a 3.5 million person industry... The biggest group of sugar babies in the United States are college students or graduate students..."
  — Dr. Harriet Fraad, (17:37)

• "Everything is monetized in this society. Look, the president is monetizing the presidency. His cabinet members are monetizing their cabinet positions. Everything is monetized and this too."
  — Fraad, (22:37)

• "Well, within the climate that we live in. Emotional intimacy doesn't go with sex. People have sex for relief often, but it doesn't have the same intimate connotations either for men or increasingly for women. So it further removes sex from intimacy."
  — Fraad, (25:33)

Important Timestamps

• 00:36–05:00: Global political shifts and the fallout of economic crises
• 09:30–12:40: Critique of Council of Economic Advisers’ report and rising inequality
• 16:54–19:11: Introduction to the sugar arrangements industry and its scale
• 21:15–21:45: Financial structure—average payments and impact on student debt
• 23:41–24:46: University response, fastest-growing student participation
• 25:17–27:49: Emotional/social consequences, impact on relationships and marriage
• 27:49–28:29: Final thoughts on the psychological negotiation and marketization of intimacy

Tone and Style

• Wolff: Critical, analytical, wryly humorous—he’s openly skeptical of establishment economics and policies.
• Fraad: Clear, perceptive, empathetic—frames phenomena in terms of both economics and personal experience.

Conclusion

This episode offers a deep critique of how rising inequality and economic pressures transform both the structure of society and intimate personal lives. The sugar arrangements industry is analyzed as a vivid microcosm of a monetized, unequal America, where economic necessity overrides traditional norms of courtship, intimacy, and personal growth. Dr. Fraad and Prof. Wolff’s conversation highlights not just the facts and figures, but the personal and ethical complexities at the heart of late-stage capitalism.