Economic Update with Richard D. Wolff

Episode: Independent Media
Date: January 16, 2020

Episode Overview

In this episode, host Richard D. Wolff provides a sharp critique of key economic developments, ranging from the real story behind worker ownership and co-ops to an exposé on the U.S. medical industrial complex and global poverty. In the second half, Wolff interviews Laura Flanders, award-winning independent journalist and host of The Laura Flanders Show, to examine the state and impact of independent media, the U.K. political landscape post-Corbyn, and transformative city initiatives challenging the status quo.

Key Discussion Points

1. Worker-Owned Enterprises vs. Worker Co-ops

[00:10–07:33]

• New Belgian Craft Beer Sale:
  Wolff opens by discussing the sale of New Belgian Craft Beer, which was widely viewed as a failed co-op being absorbed by capitalist enterprise Kirin Beer.
• Clarifying Terms:
  • New Belgian was a worker-owned company via an ESOP, not a true worker co-op.
  • Difference:
    • Worker-owned: Workers own shares but may not control decisions democratically.
    • Worker co-op: Democratic control — "one worker, one vote."
  • The New Belgian model retained hierarchical corporate structures akin to capitalism.
• Significance:
  • The transition to full co-op was never made.
  • Wolff laments this missed opportunity:

    "That is a moment of sadness for folks like us." (04:57, Wolff)

  • Reminds listeners that many true co-ops in brewing and other sectors maintain genuine democratic practices.

2. The U.S. Medical Industrial Complex

[07:34–10:58]

• IFHP Report:
  Discusses a report from the International Federation of Health Plans comparing U.S. healthcare costs to other nations.
• Key Findings:
  • Americans pay more than double for most hospital procedures and drugs compared to nations including Switzerland, S. Africa, U.K., Netherlands, Germany, and UAE.
  • The system is a "gigantic ripoff"—a classic monopoly.
• Memorable Quote:

  "For most hospital procedures and for most drugs, most of the rest of the world, get ready, pays less than half what it costs...in the United States. It's extraordinary. It's a wonderful summary statistic of how medical care is a gigantic ripoff." (09:38, Wolff)

• Comparison:
  He compares this medical monopoly's profit to that of the military industrial complex.

3. Capitalism, Inequality, and Poverty

[10:59–15:21]

• Mounting Critiques:
  Wolff highlights the growing, global criticism of capitalism for extreme inequality and instability.
• Refuting Defenses of Capitalism:
  • Capitalists claim that "extreme poverty" has declined under capitalism; Wolff disputes the substance of this claim.
  • On Measuring Poverty:

    "Extreme poverty is a very fuzzy concept. What exactly does it mean?" (12:14, Wolff)

  • World Bank’s threshold ($1.90/day) is critically low; with a $10/day cutoff, half the world is poor.
• Capitalist Opposition to Reforms:
  • Capitalists consistently oppose measures like minimum wage, progressive taxes, public jobs — only claiming credit after being forced to accept reforms.
  • Example:

    "The last time the minimum wage was raised in the United States? 2009. That's a decade ago. Prices have risen...but not the minimum wage. That's not fighting poverty that's causing it." (13:12, Wolff)

• Middle Class Erosion:
  • U.S. middle class founded on New Deal reforms is being dismantled.
  • Rural America and former industrial cities are being "thrown under the bus" by capitalism.
• Closing Reflection:
  Wolff calls it immoral that with the capacity to eliminate poverty, the current system chooses not to:

  "We have a capitalism that has the capacity to alleviate poverty here and now, finally, and chooses not to do it. That is the most immoral act imaginable." (15:13, Wolff)

Interview: Laura Flanders on Independent Media

[15:27–28:41]

4. The U.K. Post-Corbyn and Brexit

[15:29–22:47]

• Labour’s Election Loss:
  • Flanders recounts deep disappointment in Labour’s defeat, despite grassroots organizing and a popular policy agenda.
  • Brexit fatigue and a relentless right-wing press undermined Corbyn.
• Media Role:

  "[Corbyn] was vilified by the press. From the minute he put his head above the parapet, it never changed. And Boris Johnson...simply not to do media...kept quiet. And that worked for him." (16:59, Flanders)

• Impact of Brexit Narrative:
  • Anti-EU and anti-immigrant sentiment shaped the outcome.
  • Lack of long-term community education and political engagement weakened Labour’s chance.
• Optimism for Local Change:
  • Flanders points to local initiatives (eg. Preston model) as fostering new experiments in democratic economics.
  • Political shifts suggest gradual moves towards a united Ireland and Scottish independence:

    "You got more nationalists elected in the north, the northern six counties, than ever before. A majority for the first time in 100 years." (20:32, Flanders)

5. U.S.-Iran, Impeachment, and the Danger of Executive Power

[20:59–23:13]

• U.S. Assassination of Iranian General:
  • Wolff and Flanders discuss Johnson's weak response, U.S. power politics, and parallels for the left.
  • Flanders:

    "Corbyn...has a long record of calling not just against war, but for building diplomatic relations and solutions to conflicts first and foremost in the Middle East." (22:16, Flanders)

• Impeachment Distracts from Deeper Issues:
  • Both agree the impeachment is more political theater than substantive change.

6. The Role and Challenge of Independent Media

[23:14–26:08]

• Resources and Reach:
  • Growth in independent storytelling via digital platforms is promising.
  • Economic survival and competing with "money media" remain tough:

    "There's never been a better time to tell a story. There's never been a harder time to get paid for it." (24:12, Flanders)

• Mission-Driven Storytelling:
  • The Laura Flanders Show ethos:

    "The place where the people who say it can't be done take a back seat to the people who are doing it." (24:42, Flanders)

  • Highlights reporting from Amsterdam’s Transformative Cities project — stories of collective action advancing real solutions.
• Narrative Shift as Power:
  • Elevating stories of cooperation and peace is vital to counter despair and reactionary politics.
  • Flanders warns:

    "If we don't tell people stories, we're gonna be even more vulnerable to the warmonger stories. If we don't tell stories of people coming together...we're feeding into people's sense of nihilism, of fear, of panic." (25:22, Flanders)

7. Awards & The Future for Independent Journalism

[26:09–28:37]

• Recognition and Hope:
  • Flanders’ recent awards reflect the growing recognition and value of independent and feminist media.
  • She senses a shift, if not a wholesale embrace:

    "There is something deeply wrong with having our news brought to us by the same corporations that bring us our killing, and...the new technology enables us to do reporting and discussion in a different way." (28:07, Flanders)

• Audience Demand:
  • Wolff observes that students and audiences increasingly seek diverse, non-corporate news sources.

Notable Quotes (with Timestamps)

• Wolff:
  • "Worker ownership that could be a step to a real co op. But they didn't choose to make it. And as owners, they decided their best way forward would be to sell to Kieran Beer." (03:45)
  • "For most hospital procedures ... most of the rest of the world ... pays less than half what it costs in the United States. It's extraordinary." (09:38)
  • "We have a capitalism that has the capacity to alleviate poverty here and now, finally, and chooses not to do it. That is the most immoral act imaginable." (15:13)
• Flanders:
  • "There's never been a better time to tell a story. There's never been a harder time to get paid for it." (24:12)
  • "If we don't tell stories of people coming together, we're feeding into people's sense of nihilism, of fear, of panic ... that's what leads folks to buy their own guns and to vote for people with big guns." (25:22)
  • "There is something deeply wrong with having our news brought to us by the same corporations that bring us our killing." (28:07)

Important Segment Timestamps

• 00:10 — Episode intro; New Belgian Beer case
• 07:34 — U.S. Medical Industrial Complex critique
• 10:59 — On global inequality, poverty, and capitalist resistance to reform
• 15:27 — Laura Flanders interview begins
• 15:45 — Labour Party, Corbyn, and Brexit analysis
• 20:59 — U.S.-Iran incident; Johnson and Corbyn’s responses
• 23:14 — The state and future of independent media
• 24:29 — Transformative city initiatives; the power of collective stories
• 26:09 — Awards, media diversity, and the future of journalism
• 28:37 — Closing remarks

Tone

The episode is candid, urgent, and accessible, combining Wolff’s signature critical economic analysis with Flanders’ thoughtful, inspiring media activism. Both share skepticism of capitalist narratives and corporate media while highlighting hope in alternatives built from the ground up.

This summary captures the essence, arguments, and memorable insights of the episode, providing a rich resource for listeners and non-listeners alike.