Economic Update with Richard D. Wolff
Episode: Extremes of Rich/Poor in US Capitalism
Date: August 26, 2021

Episode Overview

In this episode, Richard D. Wolff examines the widening extremes of economic inequality in the United States under capitalism. He scrutinizes recent government policies aimed at helping families, analyzes the roots and effects of neoliberalism, and contrasts U.S. priorities with those of other developed countries. Wolff connects these contemporary economic developments to deeper structural vulnerabilities of American capitalism, using vivid examples—from luxury cruises to labor walkouts, pandemic responses, and healthcare costs—to illustrate the consequences for everyday people.

Key Discussion Points and Insights

1. The New Child Benefit Program and Its Real Impact

• Government Aid: The Biden administration launched monthly child benefits—between $300 to $360 per child—to assist American families. (00:15)
• Inflation Erodes Gains: With inflation at 5%+, much of the benefit is offset. For a $50,000/year family, "more than half will be lost because your prices that you’re paying are going up" (Richard Wolff, 02:15).
• Comparisons & Eligibility: Unlike tax cuts for corporations (Trump 2017), which had no eligibility requirements, children’s benefits are restricted: only 39 million out of 130 million U.S. households qualify. Other countries like the UK, Canada, and Ireland have broader support—with Ireland providing benefits regardless of income (04:50).
• Critical Perspective: The U.S. measure is “less than most other countries in the world that have these programs. Or we're richer than they are, but we do less for our children.” (Richard Wolff, 06:45)

2. Structural Vulnerabilities of U.S. Capitalism and Lessons from Covid

• Systemic Reflection: Wolff draws an analogy between the Black Death’s impact on feudalism and Covid’s potential impact on capitalism, referencing historian John Rapley (08:01).
• Roots of Weakness: Since the 1970s, neoliberalism has attacked government intervention, weakening the public-private cooperation needed to confront collective crises like the pandemic.
  • “You made people suspicious and hostile towards the government. You worked at that for decades. And that produces a vulnerability when a disease hits.” (Richard Wolff, 11:03)
  • China as Contrast: China's state-led approach allowed rapid and coordinated response, containing Covid more effectively than the U.S. (13:38).
  • “Covid has taught the Chinese that the way they set up their economy has benefits beyond the economic growth they’ve achieved…here in the United States…it has driven us further apart." (Richard Wolff, 15:35)

3. Visible Labor Struggles – The Burger King Walkout

• Example: All staff at a Lincoln, Nebraska Burger King quit at once and left a marquee sign: “Sorry folks, we all quit.” (16:36)
  • “They wanted fewer people to do the same amount of work… in the stifling heat, the air conditioning didn’t work.” (Richard Wolff, 17:28)
• Worker vs. Employer Narrative: The corporate spin around a 'labor shortage' obscures exploitative conditions — “There’s no shortage of labor if you provide the conditions that give people a reason to come back.” (Richard Wolff, 18:30)

4. Obscenity of Wealth vs. Widespread Hardship

• Billionaire Space Race & Luxury Cruises: Wolff critiques the mass celebration of Bezos and Branson’s rocket rivalry and the speedy sellout of a $73,500–$200,000-per-person luxury world cruise (22:15).
  • “This is the kind of inequality...that really deserves the adjective obscene.” (Richard Wolff, 24:22)
• Misallocation of Resources: Wolff stresses the social cost—resources used for “rocket ship competition and for a cruise…could have done for the housing our homeless don’t have, for the educational support for our students need, for the infrastructure…to do something about the climate.” (Richard Wolff, 25:51)
• Critical Question: “What kind of economic system is this and how can you possibly justify it?” (Richard Wolff, 26:25)

5. Corporate Incentives and Profiteering – Uber Case Study

• Sexual Assaults and NDAs: CNN reported 6,000 sexual assaults (500 rapes) in Uber rides (2017-2018). Uber paid a reduced fine, from $59 million to $150,000 (27:00).
• Profits over Safety: Instead of investing in safety and thorough vetting of drivers, Uber reduces costs for greater profits. NDAs hide risks, putting “more people at risk because they don’t know what’s going on.” (Richard Wolff, 28:44)
• Long-term Damage: Not investing in safety “undercut(s) the market for Uber and Lyft” and hurts both drivers and riders (30:25).

6. Healthcare & Medical Costs: A Stark U.S. Contrast

• Childbirth Debt: Families can end up paying $14,000 out-of-pocket, even with insurance, and years later remain in debt. The NHS in the UK covers births for free, regardless of job or insurance status (31:22).
• Prescription Costs: Example of an Australian woman paying $29/month for ADHD medication that costs $350–$420/month in the U.S. without insurance (34:17).
  • “The richest country in the world, or at least one of them, cannot provide what other countries do as a matter of course.” (Richard Wolff, 34:45)
• Policy Excuses: U.S. politicians claim costs are prohibitive, but other less wealthy nations manage. The status quo is blamed on the “medical industrial complex and repeated by the politicians in that complex’s pocket.” (Richard Wolff, 35:20)

Notable Quotes & Memorable Moments with Timestamps

• On Inflation Undermining Child Benefits:
  • “$2,500 of the $4,000 – that’s more than half – will be lost because your prices that you’re paying are going up so that the real benefit…is severely reduced once you take into account inflation.” (02:27)
• Comparing Corporate and Social Welfare:
  • “An eligibility requirement applied to social programs for children is not applied to huge corporations for tax cuts. Why are you doing that, Mr. Biden?” (03:55)
• On Neoliberal Era and Its Impact:
  • “You made people suspicious and hostile toward the government…And that produces a vulnerability when a disease hits.” (11:03)
• Burger King Walkout:
  • “Sorry folks, we all quit” — sign left by all staff at Lincoln, Nebraska Burger King, who quit en masse due to poor conditions. (16:40)
• On Hypocrisy and Priorities:
  • “We are really late to support families, this country of family values.” (05:47)
• Billionaire Space Race vs. Public Good:
  • “All those resources were used instead for a rocket ship competition and for a cruise in four years that costs you between $73,000 and $200,000 a ticket.” (25:51)
• Uber Safety Scandals:
  • “Uber doesn’t want to pay to do all this work, so they save a lot of money. That’s where their profit comes from.” (29:45)
• On U.S. Healthcare Costs:
  • “The richest country in the world… cannot provide what other countries do as a matter of course…There is no excuse for this other than the BS pumped out by the medical industrial complex and repeated by the politicians in that complex’s pocket.” (34:45–35:20)

Timeline of Important Segments

• 00:10 – 06:45: Critique of U.S. child benefits versus inflation and international comparison
• 08:01 – 15:35: System-level weaknesses and the pandemic, neoliberalism’s role, China comparison
• 16:36 – 19:00: Burger King walkout and the narrative of labor shortage
• 22:15 – 26:25: Bezos, Branson, luxury cruises, and resource misallocation
• 27:00 – 30:25: Uber, sexual assault allegations, profiteering over safety
• 31:22 – 35:20: U.S. healthcare and prescription costs, global comparisons and systemic criticisms

Summary Conclusion

Richard D. Wolff’s sharp critique in this episode paints a revealing portrait of U.S. capitalism at a moment of extreme inequality and social stress. Each story builds upon the last, collectively underscoring the systemic nature of America’s economic injustices—from policy-level choices and cultural attitudes to everyday realities in labor, safety, and healthcare. Through pointed analysis and international comparison, Wolff calls into question the sustainability and morality of the current system—urging listeners to critically engage with the economic structures shaping their lives.