Economic Update with Richard D. Wolff

Episode Title: Virginia Elects a Socialist
Date: October 25, 2018

Episode Overview

In this episode, host Richard D. Wolff delves into the political and economic significance of Lee Carter’s election to the Virginia House of Delegates as an openly socialist candidate. The conversation covers the dangers of political posturing on the national stage, the historical roots and implications of trade wars, the realities of corporate influence in US politics, and culminates with an in-depth interview with Lee Carter. Carter shares his personal journey from electronics repairman to state legislator, the obstacles he faced running as a socialist, and his thoughts on the Democratic Party and the future of American leftist politics.

Key Discussion Points & Insights

1. The Dangers of Political Posturing & Trade War with China

Richard D. Wolff opens the episode by critiquing the Trump administration's aggressive rhetoric against China, highlighting how such posturing masks deeper economic issues.

• Political "posing" and its risks (00:10): Wolff argues that when politicians, especially under the Trump administration, "demonize China," they are engaging in wordplay that has little substantive economic benefit but carries significant long-term costs.

  “There’s a systematic effort to suggest that the Chinese are endangering us... This is largely wordplay.” — Richard D. Wolff (01:15)

• Historical context (05:13): Drawing a parallel with the retaliatory trade policies of the Great Depression era, Wolff warns that tit-for-tat trade wars historically escalate tensions and even lead to military conflicts.

  “It was thought really seriously that part of what led to World War II was the failure of the world of capitalism to cope... Trade wars have in the past [led to military wars].” — Richard D. Wolff (05:45)

• Effect on global perceptions (08:25): Wolff notes that the US approach appears self-serving to much of the world and undermines efforts to foster cooperative economic growth.

  “[Most] of the world is like China, not like the United States. And what we’re doing to the Chinese... will appear to most of the world to be very suspect behavior.” — Richard D. Wolff (09:40)

2. Migration as a Result of Global Economic Inequality

• Root cause analysis (10:50): Wolff underscores that uneven global development drives migration, and attempts to curb it through force are ineffective.

  “You don’t solve the problem of migration... by means of walls and police and armies and persecution. That never stopped it before. It’s not likely to do it now.” — Richard D. Wolff (12:08)

3. Michelle Alexander’s Critique of “The Resistance”

Wolff references a recent essay by Michelle Alexander, reframing the narrative around social change in the US.

• Reframing political narrative (13:22):

  “She says she doesn’t like the term resistance... What Trump represents is the effort to resist that forward motion. He’s the resistance. We’re not.” — Richard D. Wolff (13:33)

4. Money in Politics and Corruption

Wolff provides a sobering economic analysis of campaign spending, particularly in the context of the 2018 midterm elections.

• Escalating expenditures (14:35): Political spending for the 2018 midterms neared $3 billion for TV advertising alone.
• Return on investment for corporations (15:30):

  “It pays to spend billions because the rate of return on those billions, if you get your friendly politician into office, must be very high.” — Richard D. Wolff (15:43)

• Fundamental solution (16:15):

  “The solution is to do something about the inequality that lies at the base of this problem.” — Richard D. Wolff (16:33)

Featured Interview: Lee Carter, Newly Elected Socialist Delegate for Virginia

Lee Carter’s Story: From Electronics Repairman to Socialist Legislator

Background and Motivation

• Industrial injury catalyst (17:05):

  “About three, three and a half years ago, I got hurt at work, and the Virginia workers compensation system just completely failed me.” — Lee Carter (17:10)

• Decision to run (17:45):

  “Nobody had an answer. I said, all right, fine. I’ll... run for office, and we’ll see what happens.” — Lee Carter (17:52)

Running as a Socialist

• Embracing the “S-Word” (18:13): Carter became a socialist during his campaign, inspired by Bernie Sanders and a critical examination of the economic system.

  “I didn’t go out there and say a vote for Lee Carter is a vote for socialism, but I didn’t deny it either.” — Lee Carter (19:05)

• Opponent’s Red-baiting tactics (19:24):

  “Pictures of Marx, Engles, Lenin, Stalin, Mao, and Lee Carter... all together. The big pantheon of the left, I guess.” — Lee Carter (19:29)

  He jokes about his healthcare platform:

  “If there’s one thing people remember Stalin for, it's the health insurance.” — Lee Carter (19:54)

Campaign Strategy and Overcoming Obstacles

• Voter engagement (20:06): Carter reached out directly to people, particularly those disillusioned by traditional politics.

  “We were able to go out and knock on doors and get people to go out and vote in this state level election who had never voted before.” — Lee Carter (20:41)

• Facing financial disparities (21:06):

  “Virginia has no limits on campaign contributions... so I just went out there and took my message directly to people on their doorstep.” — Lee Carter (21:18)

Main Policy Themes

• Refusal of corporate money (21:46):

  “The biggest thing I emphasized was that I don’t take a single dime from for-profit corporations or industry interest groups... Every single issue, I tied it back to that follow the money question.” — Lee Carter (21:50)

• Real connection with working class voters (23:44): Carter's personal experience resonated with constituents, especially those vulnerable to injury or job loss.

  “It’s told as a joke, but... everyone who works with their hands is afraid... of the day that they get hurt, and then they’re out of a job.” — Lee Carter (24:10)

Socialist within the Democratic Party

• On ideological differences (24:43):

  “The Democratic Party is... a big tent. I’m stretching out my corner of the tent, and Joe Manchin is stretching out his corner and definitely on opposite sides there.” — Lee Carter (24:53)

• Legislative impact (25:25): Despite being an ideological minority, Carter reports early success influencing legislation, including defeating parts of a monopoly bill.

  “They suffered basically the only defeat that they’ve had on the floor of the Virginia House in living memory.” — Lee Carter (25:45)

• On third parties and building socialism (26:32):

  “Outside of the two major parties, you spend all your time fighting for ballot access... My job... is to remove some of the restrictions to the other organizing work that people have been doing.” — Lee Carter (26:37-27:17)

Notable Quotes & Memorable Moments

• Wolff on trade wars and history:

  “It is a dangerous unlearning of history to do this again... to portray the last years since the Second World War as a time of American victimization, besides being incorrect economically, is also a way of undoing the whole rationale for collectively trying to solve our problems.” — Richard D. Wolff (06:22)

• Carter on campaign attacks:

  “If there’s one thing people remember Stalin for, it’s the health insurance.” — Lee Carter (19:54)

• On campaign strategy:

  “If I raised a million dollars, he would find a way to raise two. So I just went out there and took my message directly to people on their doorstep.” — Lee Carter (21:18)

• Wolff on the significance of Carter’s win:

  “These ideas that we’ve been talking about, some of us for a long time, are becoming realized and actualized by young people and others taking the kind of initiative that Lee has taken. This is an enormous step forward in this country.” — Richard D. Wolff (27:51)

Timestamps for Important Segments

• 00:10-12:08 – Wolff analyzes US-China trade policies, migration, and their systemic roots.
• 13:22-14:35 – Reframing the concept of “resistance” and discussing the rise of grassroots political change.
• 14:35-16:33 – Campaign finance, economic inequality, and their impacts on American democracy.
• 16:55 – Start of Lee Carter interview.
• 17:05-17:55 – Carter recounts his workplace injury and decision to run.
• 18:13-19:59 – Discussing socialism, campaign attacks, and voter reaction.
• 21:46-23:20 – Carter details his campaign’s main messages and its broader significance.
• 24:43-27:46 – Carter’s experiences within the Democratic Party, influence on legislation, and reflections on ballot access and organizing.

Conclusion

This episode offers both a critical macroeconomic analysis of current US policy and a compelling micro-level look at grassroots political change. Through Lee Carter’s story, Richard D. Wolff highlights the possibilities and challenges for socialist ideas in US politics, the enduring problem of money-driven democracy, and the transformative potential of direct, people-powered engagement. Carter’s victory stands as both a symbol of hope and a challenge to the status quo, inviting further involvement and organizing from everyday citizens.