Economic Update Extra: How Politics Sustain Capitalism

Podcast: Economic Update with Richard D. Wolff
Host: Richard D. Wolff (Democracy at Work)
Episode Date: September 6, 2018

Main Theme / Purpose

This episode explores how the structure of U.S. politics—specifically the dynamic oscillation between the Republican and Democratic parties—sustains and reproduces capitalism over time. Professor Wolff analyzes why real alternatives to capitalism rarely gain traction in American politics, lays out the vision for a transformative political movement rooted in a transition to socialism, and compares U.S. electoral systems with those in Europe.

Key Discussion Points & Insights

1. The Oscillation That Sustains Capitalism

• The U.S. political system oscillates between two parties—Republicans and Democrats—not to challenge capitalism, but to address whichever social group (middle or lower classes) is threatening the system most at a given time.
• [01:30] Wolff explains:
  • If the middle class rebels against tax burdens, Republicans ascend.
  • If the lower class becomes restless, Democrats take power.
  • This oscillation isn't about solving core issues, it's about saving capitalism by pacifying unrest.

"It's really neither the Democrats nor the Republicans that save capitalism. It's the very oscillation between them. Both of them are devoted to reproducing capitalism in different ways."
— Richard D. Wolff [02:10]

2. Imagining a New Political Alternative

• Wolff proposes imagining a new party that, in its foundational documents, openly rejects capitalism and advocates for a transition to socialism.
• [03:05] He outlines two defining statements for such a party:
  • "We don't believe that capitalism is the best system that the United States could have."
  • "We believe a transition to socialism would serve the people of the United States better."
• Such a party would fundamentally differ from Republicans and Democrats, whose platforms are always geared toward preserving capitalism.

3. What Would a Socialist Party Do?

• [04:10] The party would champion alternatives to employer-employee (capitalist) models, such as:
  • Worker Self-Directed Enterprises (WSDEs) / Worker Co-ops
    • Decisions are made democratically by all workers ("one worker, one vote").
    • Profits and operational decisions are shared collectively.
  • Policy Support: The party would advocate for laws and public spending that facilitate the formation and growth of worker co-ops.

"We're here to do for you, what the Republicans and Democrats have always done for the capitalists. And all we ask is a level playing field..."
— Richard D. Wolff [08:40]

4. How Socialist Parties Could Grow

• By aligning with and supporting existing worker co-ops, promising legislative and economic backing, and replicating how capitalists captured government influence by lobbying and shaping laws to their favor.
• [06:00] The party would also focus on educating the public about the choice between capitalist and cooperative (socialist) economic systems, advocating for genuine freedom of choice.

5. Freedom of Choice in Economic Systems

• [10:20] Wolff argues true freedom means Americans should be able to choose between capitalism and socialism at the ballot box, requiring a robust co-op sector and political representation for socialism.
• The current system, which only gives space to pro-capitalist parties, limits real choice and stifles debate.

6. Capitalist and Socialist Sectors Coexisting

• [13:00] A real possibility is a society with both capitalist and socialist sectors coexisting, at least for a time.
  • Historical examples: The coexistence of different economic systems (e.g., North and South in early USA) shows this is feasible.
  • Conflict between sectors is expected, but coexistence can persist and offer meaningful societal choice.

7. U.S. Political System Vs. Europe

• [16:00] Differences in electoral systems:
  • Europe: Proportional representation allows small parties to gain parliamentary representation.
    • Any party can win a share of seats proportional to its votes, fostering true multiparty democracy.
  • U.S.: Winner-takes-all blocks out smaller parties, sustains the two-party (pro-capitalist) monopoly.
    • Even non-socialist third parties can't get a foothold.
    • This "monopoly politics" closely resembles undemocratic one-party states, despite American critiques of such systems elsewhere.

"How different is that from the critiques we used to enjoy making of the Soviet Union for only having pro-communist politicians? It's not that different at all."
— Richard D. Wolff [18:30]

8. Need for Openness and Real Political Debate

• To break political staleness, Wolff advocates opening up the political field so Americans can genuinely debate and choose between maintaining capitalism or transitioning to a new system.
• Only then does the U.S. practice true democracy and move beyond “choosing between Tweedledum or Tweedledee.”

"That's a real political debate. That would really mean that we're engaged in making the decisions that are quite fundamental. And it would end the stale old politics where all most of us get to do is to choose which pro capitalist party we want to see in office, Tweedledum or Tweedledee."
— Richard D. Wolff [21:00]

Memorable Moments & Notable Quotes

• 01:10 — On party oscillation:
  "Whichever one is more dangerous to the system, that's the one that gets taken care of."
• 03:40 — On founding a socialist party:
  "Fundamentally distinguished by being in favor of, of a change of economic system."
• 08:40 — On fair treatment for co-ops:
  "We're here to do for you, what the Republicans and Democrats have always done for the capitalists. And all we ask is a level playing field..."
• 18:30 — On parallels to one-party states:
  "How different is that from... the Soviet Union for only having pro-communist politicians? It's not that different at all."
• 21:00 — On the need for genuine choice:
  "It would end the stale old politics where all most of us get to do is to choose which pro capitalist party we want to see in office, Tweedledum or Tweedledee."

Timestamps for Important Segments

• 00:00-03:00 — The oscillation between Republicans and Democrats as a mechanism for sustaining capitalism.
• 03:00-05:00 — The concept of a party with an explicit anti-capitalist, pro-socialist mission.
• 06:00-10:00 — Worker co-ops as alternatives, policy avenues, and parallels to capitalist political strategy.
• 13:00-16:00 — The feasibility and history of dual-sector economies.
• 16:00-18:30 — Electoral systems: U.S. winner-takes-all vs. European proportional representation.
• 18:30-21:00 — Breaking the political monopoly, enabling real debate and choice.

Tone

Wolff speaks in a clear, passionate, and educational manner, blending critique and optimism. His arguments are direct, aiming to empower listeners to question the status quo and envision real alternatives.

Summary Compiled for Listeners Seeking a Full Understanding Without Hearing the Audio