Economic Update with Richard D. Wolff

Episode: "Professional Athletes Lead The Way"

Date: September 10, 2020

Episode Overview

In this episode, Richard D. Wolff explores the economic landscape of the United States during the COVID-19 pandemic, with a critical look at government responses, systemic failures, and policy choices. The second half features a conversation with Dave Zirin, sports editor for The Nation, about the unprecedented wave of professional athlete strikes—in solidarity with Black Lives Matter and against police violence—and their broader socio-political implications. The episode delivers powerful insight into the intersection of economics, social movements, and labor strategy, illustrating how professional athletes are wielding labor power for social justice.

Key Discussion Points and Insights

The Limits and Consequences of U.S. Economic Policy (00:10–14:30)

• Monetary vs. Fiscal Policy:

  • For 40 years, the U.S. has relied on "monetary policy"—especially lowering interest rates and injecting massive liquidity—to address crises, instead of enacting "fiscal policy" like direct government employment programs.
  • "The federal government could step in and solve unemployment like that overnight... Why not? Well, the answer is... in order to hire all those people, they... would have to get the money. And here we go. How do you get the money if you're the government? Two ways. You either tax or you borrow." (01:39)
  • Wolff argues the main reason for not using fiscal policy is a political fear of taxing the rich, referencing solutions from the 1930s as viable and necessary.

• Federal Reserve Actions:

  • "All that money that you could borrow if you were a bank or a rich person at very low interest was indeed taken by the banks and the rich, and they play in the stock market with it." (04:35)
  • The policies inflated asset prices, benefiting the wealthy but not addressing mass unemployment.
  • "Monetary policy is the favored policy of the rich, and that's why we have it. And we don't have a government jobs program because they're afraid we'll make them pay the taxes." (06:10)

• Eviction Moratorium Analysis:

  • The CDC-imposed eviction moratorium provides only a temporary pause for tenants, not forgiveness.
  • Landlords can still evict for other infractions and may raise rents/charge interest, leaving tenants with a "big fat bundle" of debt after December 31st.
  • "We're giving [renters] a loan that can get bigger and that can be charged interest. What a radically different way of helping the mass of people, tenants versus helping the big airline companies." (12:45)

• Unequal Crisis Response:

  • Airline companies received billions as non-repayable gifts, whereas renters and ordinary people face debt and penalties.

• Luxury Market & Shifting Economic Power:

  • Growing dominance of China in global luxury goods: "China will account for 50% of luxury goods production and consumption by 2025." (13:40)
  • Contrasts U.S. and China’s directions in economic and cultural influence.

• Restaurant Industry Crisis:

  • "63.6%... almost two-thirds of the restaurants in the state of New York will either close or likely close by the end of this year if no more massive relief is provided." (14:00)
  • Wolff suggests creative public action and job programs, like supporting restaurants and reconfiguring spaces—ideas "Paris has been doing... on a grand scale"—that the U.S. government failed to enact.

Professional Athletes and Wildcat Strikes: Leading the New Labor-Social Movement (15:04–28:33)

The Wave of Athlete Strikes and Their Significance

• Unprecedented Action:

  • Dave Zirin: "We have no precedent for what we've seen in the world of sports. Wildcat strikes in defense of Black lives... nothing historically prepares us for what has happened over the last couple of weeks." (15:41)
  • The strike wave began with NBA players (Milwaukee Bucks), spreading across Major League Baseball, WNBA, Major League Soccer, NHL, college and pro teams, and even individual athletes like Naomi Osaka.

• Catalyst Events:

  • George Floyd’s murder and the shooting of Jacob Blake galvanized athletes, particularly in the NBA’s Orlando COVID "bubble."
  • Players debated whether to continue the season—eventually agreeing in return for visible protest platforms (Black Lives Matter on courts, slogans on jerseys), but quickly became disillusioned when systemic violence continued.

• Nature of Athlete Labor Power

  • Athletes recognized their "ultimate power comes from withholding their labor in a capitalist system that depends on them.” (18:46 - Wolff)
  • Zirin: "The players are very aware of it and management is very aware of it as well...[Teams] are doing whatever they can to avoid a player strike." (19:26)
  • The NFL, anticipating disruption, enacted symbolic changes (End Racism in end zones, "Lift Every Voice and Sing" on opening day) to pacify players without conceding real power.

• Economic Stakes for Leagues:

  • NFL revenue is driven by TV deals, not in-person attendance. "If the players go on strike, they can't broadcast games. And that would be just like sticking a knife into an inner tube... all the air from [their] bottom line." (21:22 - Zirin)

Social and Political Impact of Athlete Actions

• Short-term Consequences:

  • "What the players have done is they recentered the conversation around Jacob Blake... when the entire Republican party... was trying to make it into something about anarchists burning down cities." (22:59 - Zirin)
  • Sports strikes brought the power of labor into the modern Black Lives Matter movement.
  • Gave "a big burst of hope to people during a time where that's not very hopeful—that we can fight back... for a better world." (24:12 - Zirin)

• Long-term Potential:

  • Athletes feel their power "in ways... they’ve never felt before" and this could inspire college athletes and potentially labor unions broadly.
  • "The genie’s out of the bottle on what athletes can do... How they're going to use that power is an open question." (24:29 - Zirin)
  • Unions may be inspired to take collective action, learning from player activism.

The Historic Opportunity for Labor-Social Movement Solidarity

• Bridging Movements:

  • Wolff: The status quo depends on the separation of "social movements" and "labor movement."
  • "This is a fantastic lesson... to the social movements of how much they can gain by having a labor movement ally... and it's also a lesson for the labor movement." (25:19)

• Hope and Material Reality:

  • Zirin: "It's not pie in the sky hope, it's actual hope that's rooted in the actions of these players." (26:30)
  • The big challenge: whether unions and broader labor will "pick up that baton and say the players did it, Maybe we can do it too." (26:54 - Zirin)
  • Critical to "keep their political independence... make demands and fight for concessions...but not see [management] as an ally and a partner in this process." (27:11 - Zirin)

Notable Quotes & Memorable Moments

• On Monetary vs. Fiscal Policy:

  • "Monetary policy is the favored policy of the rich, and that's why we have it. And we don't have a government jobs program because they're afraid we'll make them pay the taxes to cover it." – Richard Wolff (06:10)

• On the CDC Eviction Moratorium:

  • "We're giving them [tenants] a loan that can get bigger and that can be charged interest. What a radically different way of helping the mass of people, tenants versus helping the big airline companies." – Richard Wolff (12:45)

• On Athlete-Led Strikes:

  • "It's history without a compass. We have no precedent for what we've seen in the world of sports. Wildcat strikes in defense of black lives... nothing historically prepares us." – Dave Zirin (15:41)
  • "[Management is] doing literally four hour sit downs...coming up with lists of racial justice demands... endorsed by management... They're literally dancing as fast as they can to make sure that there are not strikes in the NFL as well." – Dave Zirin (19:26)

• On Economic Leverage:

  • "If the players go on strike, they can't broadcast games. And that would be just like sticking a knife into an inner tube..." – Dave Zirin (21:22)

• On Long-Term Impact:

  • "The genie’s out of the bottle on what athletes can do... How they're going to use that power is an open question." – Dave Zirin (24:29)

• On Labor-Social Movement Unity:

  • "It's not pie in the sky hope, it's actual hope that's rooted in the actions of these players." – Dave Zirin (26:30)

Key Timestamps

• 00:10–14:30: Wolff: U.S. economic policy critique, eviction policy, airline bailouts, luxury market, restaurant crisis
• 15:04: Interview begins with Dave Zirin
• 15:41–18:46: Zirin on unmatched athlete strikes and their spread across sports
• 19:26–22:31: Athletes’ self-awareness, management’s reaction, economic stakes for leagues
• 22:59–25:19: Political and social outcomes—recapturing labor’s place in civil rights
• 25:19–27:53: Discussion on alliance between labor and social movements
• 27:53–28:33: Closing thoughts and mutual appreciation

Tone and Style

The episode balances incisive critique with hope for change. Wolff's approach is analytical and direct, while Zirin brings passionate, historical, and activist energy. The discussion is pointed yet forward-looking, highlighting both the challenges of the economic status quo and the potential for collective action to reshape society.

This episode is ideal for listeners interested in economic justice, labor movements, social activism, and the transformative potential of collective action—showcasing how even the most unexpected figures (professional athletes) can spark vital social change.