Economic Update with Richard D. Wolff
Episode: Homelessness in the US
Date: September 5, 2019
Overview
In this episode of Economic Update, economist Richard D. Wolff examines the expanding crisis of homelessness in the United States. Through economic analysis and a probing interview with homeless rights activist Rob Robinson, Wolff explores the systemic failures underlying homelessness, the inadequacy of current responses, and larger questions about how American society defines the right to housing and the meaning of democracy.
Key Discussion Points & Insights
1. The Blame Game and Economic System Evasion
[00:10 – 05:45]
- Wolff opens with an analysis of how political leaders in capitalist economies deflect responsibility for economic hardships:
- In the US: "Mr. Trump and the Republican Party...blaming immigrants, the Chinese, African Americans, and political opponents."
- In UK and Europe: "Blame on immigrants, foreigners, political opponents. Never on the economic system—capitalism itself."
- Main Point: Politicians recycle blame to avoid confronting the failures of capitalism, as economic distress grows while benefits become concentrated among elites.
Notable Quote:
"It's the job of all of these politicians to point the finger everywhere else but there [the economic system]. It's a blame game. You... shouldn't be fooled."
— Richard D. Wolff [03:30]
2. Stagnant Incomes versus Soaring Costs
[05:45 – 13:00]
- Citing research by Adam Levitin, Wolff breaks down an alarming 30-year disconnect between median family incomes and essential costs (1987–2017):
- Median income up: 14% (after inflation)
- Housing costs up: 290%
- Public college tuition up: 311%
- Healthcare expenses up: 51%
- Diagnosis: Three core costs—housing, education, healthcare—consume more income, squeezing families and fueling social unrest.
Notable Quote:
"The cost of housing has taken a bigger and bigger chunk out of Americans’ income... They’re still living in the same place... but the amount of their income they have to spend...has dramatically increased."
— Richard D. Wolff [07:00]
3. Co-determination: A Systemic Alternative
[13:00 – 15:20]
- Co-determination, a practice from Germany, gives workers seats on corporate boards—almost 50% in large firms:
- In the US: Workers have almost no say. The idea is treated as radical, though it’s a basic stakeholder model elsewhere.
- Historical Parallel: Like the struggle for parliamentary democracy over monarchy.
Notable Quote:
"Why do we have little kingdoms inside our workplaces?... Workers and the community and the customers...ought to be the ones making the decision—not simply people who bought shares." — Richard D. Wolff [14:45]
4. Lessons from Puerto Rico
[15:20 – 18:00]
- Puerto Rico’s recent mass protests ousted Governor Roselló after years of colonial control, disaster mismanagement, and corruption.
- Comparison: Puerto Rico’s out-migration rate (15%) now exceeds Venezuela’s, despite the US “protecting” Puerto Rico.
- Lesson: "Political action in the street made the difference. Nothing else has."
Notable Quote:
"The people of Puerto Rico... made a statement... that others around the world, including on the mainland, might want to think about."
— Richard D. Wolff [17:07]
In-depth Interview: Rob Robinson on Homelessness in the US
1. The Scale and Causes of Homelessness
[15:31 – 17:25]
- Rob Robinson: "It's a huge problem... About 2 million homeless people nationwide, with veterans a significant chunk. Government efforts are fragmented and insufficient."
- Core structural issue: Wages lag far behind rent increases.
- "Wages, including inflation, haven't grown over the last 20 years... Rents have grown at five times the rate of wages."
Notable Quote:
"People can't keep up, and it pulls the working class or the middle class into homelessness."
— Rob Robinson [16:38]
2. Poverty and the Broken Job Base
[17:25 – 18:00]
- Persistent poverty: Never tackled directly, worsened by loss of manufacturing jobs to globalization.
- Wolff: Homelessness is an indicator of "a dysfunctioning economy that isn’t creating jobs and incomes adequate to what people need."
3. Social Stigma and Individualization
[18:18 – 20:52]
- Stigma: "We’ve shamed you in this country if you run into that problem... It’s your fault. But they don’t look at the underlying causes."
- Hiding homelessness: Many are ashamed to discuss their situation, even with family.
- Need for storytelling: Breaking the stigma by sharing personal stories to reveal systemic trends.
Notable Quote:
"You’re homeless because you don’t want to work. You’re homeless because you don’t have an education...even amongst close family and friends. They just don’t talk about it." — Rob Robinson [19:46]
4. Organizing and Homeless-Led Movements
[20:52 – 22:41]
- Organizing exists among the homeless, but is insufficient for the scale.
- Groups like Picture the Homeless (NY), Western Regional Advocacy Project (US West Coast), and international examples in Brazil and Hungary.
- Shelter crisis: New York's "right to shelter" law leads to over 550 shelters, but "a shelter is not a home...it’s a sense of community."
5. Vacant Housing and Policy Failures
[22:41 – 25:13]
- Vacant homes during foreclosure crisis: 14.4 million empty homes, 2 million homeless people—“Just put the homeless people in the vacant homes. Problem solved.”
- Advocacy: Legislation for a “vacant census” in NY; proposals to fine landlords for keeping properties empty.
- Challenge: Need to “think differently” about space and housing under capitalism.
Notable Quote:
"I would argue that we’ll never build our way out of this problem... What we need to do is think a little differently and use vacant spaces."
— Rob Robinson [23:38]
6. Subsidies and Economic Priorities
[25:13 – 26:41]
- Current subsidies: Massive tax deductions for wealthy homeowners ($150 billion/year), but minimal support for poor renters or public housing.
- Historic contrast: After WWII, the GI Bill and public housing programs helped (though racially exclusionary).
Notable Quote:
"What we’re doing in this country is we’re subsidizing wealthier people more than we are poor people."
— Rob Robinson [25:50]
7. Racial Inequality and the GI Bill
[26:41 – 27:30]
- Many Black veterans were excluded from post-war housing programs—racial barriers persist in today's housing and banking systems.
8. Policy Recommendations and Human Rights
[27:30 – 28:34]
- Adopting international standards: Citing South Africa and Brazil, Robinson argues the right to housing should be enshrined in US law.
- Conclusion: US democracy is incomplete if millions go unhoused; systemic constitutional change is needed.
Notable Quote:
"We have a constitution that was constructed off of 400 years of good old boy language that just doesn’t work for certain people. A constitution probably needs to change."
— Rob Robinson [28:18]
Memorable Moments and Quotes
-
On systematic misdirection:
"There's always a grain of truth...But the real interesting thing is they're not facing the problems of an economic system in decline."
— Richard D. Wolff [02:45] -
On public action:
"Political action in the street made the difference. Nothing else has."
— Richard D. Wolff [17:00] -
On the American housing paradox:
"During the financial crisis...14.4 million vacant homes, 2 million homeless people...You just put the homeless people in the people’s homes. Problem solved."
— Rob Robinson [24:00]
Key Timestamps for Segments
| Segment | Topic | Timestamps | |---------|-------|------------| | Blame Game & Systemic Shifts | 00:10 – 05:45 | | Income vs. Key Costs | 05:45 – 13:00 | | Co-determination & Workplace Democracy | 13:00 – 15:20 | | Puerto Rico’s Lessons | 15:20 – 18:00 | | Rob Robinson Interview Intro | 15:31 – 16:30 | | Homelessness: Scope & Causes | 16:30 – 18:00 | | Poverty, Jobs, & Wages | 17:25 – 18:00 | | Stigma & Individualization | 18:18 – 20:52 | | Advocating & Organizing | 20:52 – 22:41 | | Vacant Housing & Policy | 22:41 – 25:13 | | Subsidies & Public Housing | 25:13 – 26:41 | | Racial Issues & GI Bill | 26:41 – 27:30 | | International Standards & US Reform | 27:30 – 28:34 |
Tone and Takeaways
The conversation is deeply critical of status-quo economic ideology and policy, focusing on the human consequences of structural failures. Both Wolff and Robinson underscore that homelessness is not a story of individual failure but a collective policy and value breakdown—a challenge to American democracy and its economic system.
Closing Thought:
"A society that leaves millions of people without a home is a society that isn't working very well. It's an economy that isn't doing what an economy is supposed to do."
— Richard D. Wolff [28:34]