Economic Update with Richard D. Wolff

Episode: Winds of System Change

Date: April 5, 2018

Overview

In this episode of Economic Update, host Richard D. Wolff explores the “winds of system change” sweeping through economics, politics, and society. The episode commemorates the 50th anniversary of Martin Luther King’s death, connecting his battles against racial and economic injustice to current movements in the U.S. and France. Wolff analyzes recent mass protests in France over labor rights, the resurgence of dangerous financial practices in the U.S., the sharp decline of public investment in education, and the rising activism across American society. In the second half, joined by Dr. Harriet Fraad, he discusses the Stormy Daniels scandal and its broader implications, particularly the growing willingness of historically subordinated groups—women, students, and workers—to resist shame and subordination and demand change.

Key Discussion Points & Insights

1. Remembering Martin Luther King: Economic and Social Justice ([00:10])

• Wolff honors Dr. King’s commitment not only to fighting racism but also to challenging economic inequality:

  “Martin Luther King learned in the course of his efforts to deal with that problem that it was inextricably intertwined with another problem. And that is an economic problem.” ([00:28])

• Links King’s support for the Memphis sanitation workers to the ongoing struggle of American workers of all backgrounds.
• Wolff notes the persistence of racial and economic inequality in the U.S.:

  “The average wealth of African Americans is lower today than it was 20 years ago. A statement that is stunning in the history of modern capitalism.” ([01:22])

2. Protests in France: Defense of Labor Rights ([02:02])

• Wolff discusses massive demonstrations across France against President Macron’s labor reforms, which aim to make firing easier:

  “Mr. Macron wants to cut them back. He wants to make it easier for employers to hire and to fire. … Masses of people are in the streets to say no, no, no, no, no.” ([03:34])

• Contrasts French activism with apathy in the U.S.:

  "Similar things have been going on for years in the United States. But there are no masses of people in the streets to fight them … We don't do that in this country. Nothing like the French." ([04:38])

Achievements of French Workers:

• Shorter work weeks
• Universal health insurance
• Five weeks paid vacation by law
• Daycare provisions

Alternative Solutions Suggested:

• Redistribute high executive salaries
• Lower prices for global competitiveness
• Invest more in technology and education

3. Capitalism Repeats Itself: The Return of Subprime Lending ([09:22])

• Wolff warns financial markets are bundling subprime mortgages again, mirroring the practices that caused the 2008 crash:

  “Call this capitalism that can never learn. And they're doing it again.” ([10:39])

4. Education: Public Disinvestment and Student Debt Crisis ([11:18])

• Notes that in over half of U.S. states, students now pay more than government support for education:

  “For the first time in half the states students have to come up with their own money to go to college more than the government kicks in to help them. Crazy behavior, self destructive behavior.” ([13:00])

• Highlights broader effects: undermining the quality of workforce and economic prospects, decline of social mobility
• Raises the question: Why does a rational society flout its own interests in education?

5. Waves of Labor Action: Red State Teacher Strikes ([14:42])

• Celebrates teachers’ strikes in West Virginia, Oklahoma, Arizona, and Kentucky:

  “Their teachers are not going to be told no. They're making the demands long deferred, that they get the respect as educators that they deserve.” ([15:23])

6. International Poverty Comparisons ([17:04])

• Shares research showing the U.S. ranks worst among developed countries in reducing poverty via taxes and social programs:
  • Denmark: 6%
  • France: 8%
  • Ireland: 9%
  • U.K.: 11%
  • USA: 18%
• “One out of five people in the United States is qualified as poor. ... We still rank at the bottom.” ([18:42])

7. Worker Cooperatives vs. Capitalist Firms ([22:06])

• Recommends research by Virginie Perotin, documenting the greater efficiency, community benefits, and human satisfaction found in worker cooperatives.

8. U.S.-Korea Trade and the Truth about Truck Tariffs ([23:50])

• Details the long-standing 25% tariff protecting U.S. truck manufacturers and the resulting artificially high prices for American buyers:

  “This is a way to do what? It's a gift to the American truck producer because it makes foreign competition too expensive.” ([24:26])

• Exposes hypocrisy in political rhetoric about “free trade” and “competition”:

  “Don’t be fooled. The American truck culture... has been worsened by the truck, which has made profits for the few companies at the expense of the prices we all have to pay. They got protected. You got ripped off.” ([25:51])

INTERVIEW Segment: Stormy Daniels, #MeToo, and Rising Resistance (with Dr. Harriet Fraad) ([29:41])

Main Theme: Breaking the Chains of Shame and Subordination

1. Stormy Daniels’ Symbolism ([30:02])

• Stormy Daniels’ 60 Minutes interview drew 20 million viewers, surpassing major awards shows and Trump’s own post-inauguration interview.
• Dr. Fraad views Daniels as emblematic of a wider social break from submissiveness:

  “Even as a sex worker, she feels entitled to stand up to the president.” ([30:14])

2. The Wider Movement: MeToo and Student Gun Activism ([31:53])

• Fraad links the Daniels case to the MeToo movement and student anti-gun protests:

  “Those who are at the bottom are speaking up. ... The youth movement against guns... they are saying the powerful forces of state and local government will not protect us.” ([32:07])

3. Breaking Internalized Oppression ([32:27])

• Drawing on Louis Althusser:

  “More powerful than the police and the army ... is to keep disciplining them from the inside. To make them ashamed ... so that they don’t even dare imagine standing up, no less do it. And that’s what’s happening. That’s very powerful.” — Dr. Fraad ([33:04])

4. What Has Shifted? ([34:00])

• Previously, “Stormy would have thought, I'm a lowly sex worker. Who am I to stand up to the President of the United States?” — Dr. Fraad ([34:36])
• Women in MeToo movement and young people previously internalized shame and subordination.

5. Using Social Media Against Established Power ([36:57])

• The story of David Hogg’s activism after being mocked by Laura Ingraham:

  “He contacted his 600,000 Twitter followers with a list of all her sponsors... At least 12 of them have already withdrawn.” ([37:22])

6. Roots of Rising Confidence ([40:24])

• Changes in women’s economic position:

  "Women are no longer at home ... They have financial independence... Women don’t have to be subordinate anymore. We're in the workforce, we can stand up." — Dr. Fraad ([41:05])

• Consciousness lag: It has taken decades for these economic changes to alter mass behavior.

7. Young People and Economic Insecurity ([43:58])

• Young people face no economic guarantees, high debt, and unstable job prospects:

  “They are looking at massive college debt and no jobs. ... Why should they obey the rules that are keeping them down?” ([44:32])

8. The Political Backdrop: A Collison of Values ([48:11])

• Current U.S. leadership (e.g., Betsy DeVos, President Trump) signals support for inequality and patriarchy, provoking further backlash.

9. Changing Tides: Shame to Strength ([50:01])

• The “contagion” of resistance — what began in smaller circles is now spreading:

  “What I think is happening is that all over people are saying, me too. ... I will not be debased by my female sexuality.” — Dr. Fraad ([50:01])

  “I did it because nobody's going to call me a liar and get away with it.” — Stormy Daniels, as quoted by Harriet Fraad ([51:03])

10. This Is Just the Beginning ([53:40])

• Possibility of a mass fightback, not just by women or students but the wider working class:

  “It could spread. In a sense, it is the beginning of something that could really change the society.” — Wolff ([54:12])

  “I think it is. I think it's a spark, and it's a spark that could create a fire because it sparks such interest and sympathy across the nation.” — Dr. Fraad ([54:22])

Notable Quotes & Memorable Moments

• “Springtime and capitalism is shaking.” — Wolff on French protests ([07:30])
• “Call this capitalism that can never learn.” — Wolff on subprime mortgages’ return ([10:39])
• “We could have had trucks much more cheaply if we would have allowed foreign truck companies to compete on a level playing field with Americans.” — Wolff ([25:25])
• “The American truck culture... has made profits for the few companies at the expense of the prices we all have to pay. They got protected. You got ripped off.” — Wolff ([25:51])
• “When the whole apparatus that gets you to be ashamed of yourself so you shut up and obey collapses, big changes can happen.” — Dr. Fraad ([33:27])
• “I will not be debased by my female sexuality.” — Dr. Fraad ([50:04])
• “I didn’t just do this for the money. ... I did it because nobody's going to call me a liar and get away with it.” — Stormy Daniels, as recounted by Dr. Fraad ([51:03])

Timestamps for Key Segments

• 00:10–02:02 — Tribute to Martin Luther King; economic dimensions of social justice
• 02:02–09:00 — French labor protests; comparison with U.S. labor rights
• 09:22–11:18 — Subprime mortgage crisis returning
• 11:18–14:42 — Declining public support for higher education; implications
• 14:42–17:04 — Teachers’ strikes in conservative states
• 17:04–21:40 — U.S. vs. international efforts to alleviate poverty
• 22:06–23:50 — Research on worker cooperatives (Virginie Perotin)
• 23:50–26:07 — Truck tariffs, U.S.-Korea trade, and trade policy myths
• 29:41–55:20 — Interview with Dr. Harriet Fraad: Stormy Daniels, MeToo, student activism, and rising resistance

Conclusion: The Winds of System Change

Richard Wolff’s episode frames 2018 as a moment when longstanding injustices—economic, racial, and gender-based—are meeting resurgent movements for change. From French protests against neoliberal “reform” to American teachers’ strikes and the surging refusal of shame by women and youth, Wolff and guest Dr. Fraad see the potential for contagious, society-wide resistance. The episode ends with cautious optimism that these sparks can ignite broader transformation—if people recognize their collective power and refuse to submit.