Economic Update with Richard D. Wolff: "We Can Do Better Than Capitalism"

Date: December 30, 2016
Host: Richard D. Wolff
Produced by: Democracy at Work

Episode Overview

In the final episode of 2016, Richard D. Wolff critically examines key economic and political issues that shaped the year, tying these stories to broader systemic problems under capitalism. He reviews topics ranging from homelessness and disenfranchisement, to water crises, CEO retirement inequality, public infrastructure, and, most significantly, presents the case for worker cooperatives as a viable alternative to capitalism.

Key Discussion Points & Insights

1. Homelessness and “Solutions” from the 1%

[01:22]

• Rising Homelessness: Wolff highlights increasing homelessness in global cities, especially New York, describing it as a crisis directly tied to insufficient income, not laziness or unemployment.
• Critique of Entrepreneurial Solutions:
  • Santa Clara billionaire John Sobrato’s plan to house homeless people in repurposed shipping containers—some below the HUD minimum livable size—is criticized as both inadequate and dehumanizing.
  • Wolff’s Tone: “What a way to solve the homeless problem…at Christmas time. And maybe even…believe you're making a contribution as clearly Mr. Sobrato needs to believe.” [06:46]

2. The Political System as Guardian of Economic Inequality

[09:34]

• Voter Suppression in Florida:

  • People with felony convictions (disproportionately Black, Hispanic, and poor) are permanently disenfranchised.
  • The number excluded “is 10 times larger than the margin of victory of Mr. Trump in the presidential race in Florida.” [11:25]
  • Wolff connects disenfranchisement directly to the preservation of unequal economic and political structures.

• Impact: Laws keeping the poorest out of the voting booth ensure that they cannot vote for systemic change, perpetuating the alignment of political and economic power.

3. Economic Hardship and Social Safety Nets

[13:28]

• Film Recommendation: “I, Daniel Blake”
  • Ken Loach’s film is highlighted for its portrayal of bureaucracy, humiliation, and deprivation facing those needing public assistance.
  • Quote: “The film watches the humiliation of this man, the denial of him of the most basic rights of an income and medical care when he has a heart attack.” [15:56]

4. Environmental Failures under Capitalism

[18:28]

• Lead Poisoning in Water Systems
  • The Flint crisis triggered heightened awareness, but a Reuters study reveals over 3,000 areas in the US with higher lead poisoning rates, mostly ignored by governments.
  • Only a fraction of funding compared to Flint is being allocated to these areas.
  • Insight: Public outrage and visibility are required to spur government action—otherwise, broad crises remain unaddressed.

5. Hypocrisy Surrounding “American Jobs”

[25:24]

• Donald Trump and Foreign Labor:
  • Wolff exposes Trump’s applications for H2 visas to employ foreign workers at his Virginia vineyard, contradicting campaign rhetoric about protecting American workers.
  • Quote: “The same president wanted foreigners. As he runs around the country championing himself, the protector of American workers who will expel the foreigners, he's going out of his way to bring cheap foreigners into the United States.” [26:02]

6. Retirement Inequality

[29:02]

• Study: “A Tale of Two Retirements” by Lawrence Whitner
  • 100 top US CEOs have a collective $4.7 billion in retirement money—equal to 41% of total retirement savings for 50 million US families.
  • Average CEO monthly retirement payment: $253,000; Average Social Security payment: $1,239.
  • Quote: “There is no justification for this. This has nothing to do with work. These are people beyond their work lives. This is simply a way of organizing the distribution of wealth…” [32:46]

7. Fossil Fuel Industry’s “Denial Science”

[34:37]

• Sen. Sheldon Whitehouse’s Warning:
  • Fossil fuel companies, echoing tobacco industry tactics, fund “funny money science” to sow doubt about climate change—delaying action for profit at social cost.
  • Quote: “The fossil fuel industry is following suit, trying to muddy the water so that the scientific consensus…isn’t acted upon.” [36:34]

8. Infrastructure Crisis—Inequality in Policy and Finance

[39:24]

• Neglect and Political Manipulation:
  • Infrastructure is ignored because politicians seek to appease both business (by not taxing them) and the public (by not raising their taxes), leading to excessive borrowing from the rich.
  • Delayed maintenance results in crises like the water in Flint or collapsing bridges.
• Critique of Public-Private Partnerships:
  • New “solutions” proposed are public-private partnerships, ensuring profit for private investors at public expense through fees and tolls.
  • Quote: “…their failure for decades is now going to be corrected by…public private partnerships…Well, what's the economics here, folks? It's very simple. If the government taxes and uses the money to build the infrastructure, that's the end of the story…But if it is done in a public private partnership…the private only participates…if it makes money.” [47:01]

9. The Case for Worker Cooperatives

[52:12]

• A Democratic Alternative to Capitalism:
  • Wolff emphasizes worker co-ops as a thousand-year-old idea—businesses democratically run by workers, sharing both decisions and profits.
  • Quote: “A worker co-op is a simple idea, it's a thousand years old. Human beings who work in an office, a factory, or a store are a community. And they're to run their community democratically. One person, one vote.” [52:37]
• Historical Parallels:
  • Just as capitalism arose from feudalism, alternative, democratic forms can emerge from capitalism, he argues.
• Practical Steps:
  • Co-ops have the right to public subsidies, support from labor and religious organizations, and favorable legislation—just as capitalists received in the past.
  • Quote: “There should be no hesitation. There's nothing false or special about worker co ops wanting government subsidies...it's long overdue for the government to do the same for the alternative worker co op so…people can see how these two systems work.” [1:02:26]

Notable Quotes & Memorable Moments

• “The answer to how you control politics is to make the political system incapable of changing the economic system, even though one man, one vote would make it possible.” —Richard D. Wolff [09:45]
• “Over a thousand of the 3,000 [lead poisoning] areas Reuters discovered have lead blood levels in the children of higher than those in Flint.” —Richard D. Wolff [22:04]
• “Big business wins twice. And the rich, the people they make rich, they win twice, too. Maybe actually three times.” —Richard D. Wolff [50:22]
• “We ought to have…the ability to observe two systems that work very differently so we can decide which ones we want in what proportion in our society.” —Richard D. Wolff [1:02:50]
• “The question is, do we have the political and ideological commitment to build this kind of alternative sector when we know that the capitalist system isn't working for most of us? It's long overdue. It's time.” —Richard D. Wolff [1:05:41]

Timestamps for Key Segments

• Opening and Homelessness: [00:00-08:00]
• Political Inequality & Florida Voting Laws: [09:00-12:00]
• “I, Daniel Blake” & Welfare Bureaucracy: [13:00-16:30]
• Lead Poisoning Beyond Flint: [18:30-24:00]
• Trump, Foreign Labor, and Hypocrisy: [25:24-28:45]
• CEO vs. Worker Retirement Wealth: [29:02-34:10]
• Fossil Fuel Denial Tactics: [34:37-39:00]
• Infrastructure Crisis Explained: [39:24-51:57]
• The Worker Cooperative Alternative: [52:12-1:05:41]

Language & Tone

Richard Wolff’s language is direct, incisive, and tinged with frustration, often using irony to highlight the absurdities and injustices of current economic structures, but always returning to the need for collective action and democratic alternatives.

Summary

In this episode, Wolff critiques systemic failures across housing, infrastructure, environmental justice, and retirement—arguing that these are not isolated problems but endemic to a capitalist structure that prioritizes profit over people. He demonstrates how political systems work to insulate economic power, and concludes with a passionate case for growing the worker co-op movement as a fairer, more democratic alternative—one deserving public support and experimentation. The message: We can—and must—do better than capitalism.