Economic Update with Richard D. Wolff

Episode: "Injustice, Race and Class"

Date: August 22, 2019

Episode Overview

In this episode, Professor Richard D. Wolff critically explores how economic injustice is deeply intertwined with issues of race and class in the United States. Using recent high-profile cases, examples of corporate malfeasance, and stories of community struggle, Wolff and guest investigative journalist Bob Henley examine how capitalism, profit motive, and systemic inequality perpetuate both economic and racial disparities. The episode highlights the self-reinforcing nature of inequality, exposes the failures of the justice system, and discusses community-based alternatives to corporate capitalism.

Key Discussion Points & Insights

1. Corporate Capitalism’s Failures: Three Illustrative Stories

(00:25–04:51)

• Boeing and the 737 Max:

  • Boeing prioritized profits over safety by cutting costs, leading to development failures and fatal crashes.
  • Regulatory agencies, supposed to safeguard public interest, were compromised due to their close relationship with the corporation.
  • “A capitalist corporation, to make more money...Compromised the government and killed a significant number of people.” (01:56, Wolff)

• Audi/Volkswagen Emission Scandal:

  • VW and Audi were caught deliberately cheating emissions controls, allowing millions of polluting vehicles on the road.
  • Other major car companies have also engaged in similar fraudulent behavior, with severe health consequences for the public.
  • “Capitalism kills.” (03:24, Wolff)

• Juul and Nicotine Addiction:

  • Juul marketed vaping products to children, echoing past tobacco industry practices.
  • Despite past penalties for cigarette companies’ actions, new companies continue exploiting loopholes to maximize profits at the expense of public health.

• Underlying Message:

  • In all cases, profit was prioritized over safety, health, and ethical responsibility.
  • “Profit is our bottom line. In simple English, profit is the goal. Safety isn’t.” (04:53, Wolff)

2. Monopoly, Competition, and Systemic Exploitation

(04:51–09:55)

• Ongoing Department of Justice antitrust probes into tech giants (Google, Facebook, Amazon).
• Wolff argues that monopoly is not an accident but a natural outcome of capitalist competition—winners grow larger, losers disappear.
• Cyclical pattern: Competition creates monopolies, monopoly breeds new competitors craving those profits, and the cycle repeats.
• Government investigations are cyclical, costly, and rarely lead to lasting solutions; the public foots the bill on both sides.
• “How many times do you need to get ripped off before you recognize a ripoff?” (09:48, Wolff)

3. Cooperative Alternatives and Worker Empowerment

(09:55–11:10)

• Introduction of initiatives like Brightly and the Arizmendi Association—organizations that franchise worker cooperatives in the U.S.
• Franchising co-ops is positioned as a practical model for spreading economic democracy and worker empowerment.

4. The Vicious Cycle of Inequality

(11:10–14:26)

• Systematic pay differences shape lifelong inequalities—better-paid individuals access superior housing, education, and opportunities.
• These disparities become entrenched, leading to persistent segregation by both class and race.
• Case study: Long Island’s Hempstead (2% white, under-resourced) vs. Garden City (87% white, affluent)—massive funding disparities replicate societal divides.
• “The whole quality of what’s happening to the children reproduces the inequality that exists in the society.” (13:44, Wolff)

Interview Segment with Bob Henley (Investigative Journalist)

(14:39–28:07)

5. The Eric Garner Case—Race and Class Collide

(16:07–20:34)

• Garner, an African American man, was killed by police for allegedly selling loose cigarettes—a subsistence activity in the face of $14/pack cigarettes.
• Henley argues the issue is both about race and economic survival:
  • Law enforcement resources were used to police street-level hustling while high-level white-collar crimes go unaddressed.
  • Capitalism and political corruption focused enforcement on petty crime rather than the root economic injustices.
• “His crime was trying to make a living selling individual cigarettes. And the New York Police Department, with the range of problems it has, was focused on that rather than on all the other issues.” (19:15, Wolff to Henley)
• The narrative of Garner as “victim” (the “I can’t breathe” video) often overshadows his resistance and humanity.

6. Selective Justice: The Epstein and Kushner Examples

(20:48–23:46)

• Henley contrasts the aggressive prosecution of street-level offenders with leniency or self-directed sentencing for the wealthy:

  • Jeffrey Epstein received a lenient plea deal for sex trafficking, living freely with minimal consequences until public outcry forced further action.
  • Charles Kushner (real estate mogul, major donor) manipulated his sentencing, avoiding significant repercussions for political corruption.
  • “You really have two tracks of justice here. And it’s becoming really, at this point, medieval.” (23:17, Henley)

• The media and political establishment often frame urban crises as racial or local issues, ignoring economic crimes like foreclosure and systemic deindustrialization that devastate communities.

7. Racialized Distraction from Systemic Economic Failure

(23:46–27:40)

• Trump’s rhetoric in places like Baltimore is cited as an example of using race to deflect from economic policy failures—shifting blame onto immigrants or minorities rather than a broken system.

• Many urban areas with significant African American populations suffered industrial abandonment and have not recovered, impacting jobs and community stability.

• “The system breaks down...The failure of the system to provide gets deflected, gets distracted by Mr. Trump. It’s the immigrant that you’re supposed to be angry at...He finds in a classic conservative mentality everything he can think of to blame other than the system that isn’t working.” (25:37, Wolff)

• Henley notes crime in New York has dropped partly thanks to immigrant communities, contradicting far-right narratives:

  • “What changed was undocumented immigrants...made the city of New York a place to raise children in neighborhoods that this industrial abandonment had wrecked entirely.” (26:43, Henley)

• Now, even as cities are revitalized, the working class and immigrants are being pushed out by gentrification and multinational capital.

Notable Quotes & Memorable Moments

• On Corporate Priorities:

  • “Profit is the goal. Safety isn’t. When we fly in something, or when we drive something, or when we take something into our bodies, the number one priority shouldn’t be the profit of the producer, it should be the safety of the consumer.” (04:53, Wolff)

• On Monopoly:

  • “It’s the competition that produces the monopoly. And why is monopoly attractive? Because then businesses can get two kinds of profit...They can jack the price up way beyond what it would otherwise be because the buying public...have no options.” (06:29, Wolff)
  • “How many times do you need to get ripped off before you recognize a ripoff?” (09:48, Wolff)

• On Eric Garner’s Legacy:

  • “He was a big guy...known as a gentle giant who kind of kept social order. And that piece is lost in the discussion.” (20:03, Henley)

• On Selective Justice:

  • “You really have two tracks of justice here. And it’s becoming really, at this point, medieval. I mean, the stark contrasts are getting worse every day.” (23:17, Henley)

• On Systemic Distraction:

  • “The system breaks down...The failure of the system to provide gets deflected...[Trump says] it’s the immigrant...or now African Americans. He finds...everything he can think of to blame other than the system that isn’t working.” (25:37, Wolff)

Timestamps for Key Segments

• Corporate Capitalism’s Failures: 00:25–04:51
• Monopoly and Systemic Cyclicality: 04:51–09:55
• Cooperative Alternatives: 09:55–11:10
• Long Island’s School Inequality: 11:10–14:26
• Eric Garner and Class/Race: 16:07–20:34
• Epstein/Kushner – Selective Justice: 20:48–23:46
• Trump, Urban Decline, and Distraction: 23:46–27:40
• Immigrants and Urban Renewal, Gentrification: 26:42–27:57

Tone & Takeaways

• The tone is urgent, critical, and insightful, blending economic analysis with social justice commentary.
• Wolff and Henley challenge listeners to see the bigger picture—how race and class are manipulated to divide working people and obscure deeper, systemic economic injustices.
• The conversation underscores the importance of shifting from profit-driven, exploitative capitalism to cooperative, democratic forms of economic organization for real social progress.