Economic Update with Richard D. Wolff

Episode: S9 E44 – "Political Strategy for Transition"
Date: November 14, 2019
Host: Richard D. Wolff

Episode Overview

In this episode, Richard D. Wolff examines how societies transition from one type of economic system to another—specifically, from capitalism to a more democratic workplace model, like worker cooperatives. Drawing historical parallels to capitalism’s own birth out of feudalism, Wolff answers a key listener question: “How do we get from where we are now (capitalism) to something better?” The discussion explores both the historical precedent for systemic transition and practical political strategies necessary for achieving transformative change today.

Key Discussion Points & Insights

1. Growing Discontent with Capitalism

• Wolff addresses the rise in public dissatisfaction—especially among younger Americans—with the unequal and undemocratic nature of capitalist workplaces.
  • “Clear majorities, particularly of younger Americans, are critical of capitalism, would rather live in a system that worked better...that we can do better than capitalism.” (01:00)

2. Learning from History: Feudalism to Capitalism

• Wolff details the evolution from feudalism (lords/serfs) to capitalism (employer/employee), emphasizing economic contradictions and social unrest as catalysts for change.
  • “Capitalism starts in little towns...it has lots of conflict with the lords and serfs because they see a new system...” (08:41)
• He draws analogies between today’s dissatisfaction with capitalism and the historic tensions that led serfs to abandon feudal estates for new urban employer-employee relationships—seeding early capitalism.
  • “Feudalism’s contradictions made those contradictions more acute...” (13:00)

3. Capitalist Political Strategy: No Taxation Without Representation

• New capitalists formed political alliances (the origin of political parties and parliaments) to demand a say in governance.
  • “They invent a phrase like: no taxation without representation...We want our tax money to help our economic system here in the towns.” (11:37)
• Revolution, exemplified by the French Revolution, ultimately breaks feudal power—ushering in capitalism.

4. The Parallel Within Capitalism: Rise of Worker Co-ops

• Wolff argues that within capitalism, new forms (worker co-ops, consumer co-ops) are emerging, much as capitalism itself first appeared within feudalism.
  • “What’s happening are worker co-ops...everywhere workers are saying we don’t want to live in the way capitalism assigns us.” (17:25)

5. Strategizing Political Transition to Democratic Workplaces

• First Step: Bring together existing co-ops, supportive individuals, and the labor movement into a political project.
  • “It’s time for us to organize the co-ops, bring them together in a political project.” (25:08)
• Key Obstacle: Current governments, funded via taxes from co-ops and workers, overwhelmingly support capitalist enterprises, not co-ops.
  • “Hundreds of laws...make it difficult to form a co-op...the government we’re paying taxes to is providing subsidy upon subsidy to private capitalist corporations.” (28:12)
• Needed Solution: A new political organization—not just a third party, but one fundamentally oriented towards democratizing the workplace and economic power.
  • “This new political party is not a capitalist party...It’s interested, like the capitalist parties were in feudalism, in moving society forward.” (31:01)
  • “We need to persuade the worker co-ops to make the alliance with such a political movement.” (36:51)

6. Role & Limits of Existing Political Parties

• Wolff clarifies he is not advocating abandoning efforts within existing parties (e.g. Democrats), but sees little evidence of a shift away from capitalist allegiance.
  • “The Democratic Party...has for a very long time...been controlled and dominated by folks who are advocates of capitalism. Nancy Pelosi said so...‘We’re all capitalists.’” (39:00)

7. Conclusion: A Historical Parallel & Call to Action

• Change, as Wolff stresses, always requires coordinated socio-political strategy, linking emergent economic forms (worker co-ops) with a new organizational thrust.
  • “That’s how capitalism did it. It’s a good way to at least start the conversation about the strategy to get us towards the goals that already attract Americans both in their thinking and in their actions, as they look for different ways to organize their work lives.” (42:02)

Notable Quotes & Memorable Moments

• On Parallel History:
  • “Inside capitalism the same thing is now happening. A parallel story.” (17:20)
• On Worker Co-ops as Seeds of Change:
  • “Within it are the seeds, the seed institutions that are moving beyond it – just as the urban capitalists moved beyond the feudalism which gave them their strength.” (22:36)
• On Political Parties:
  • “Those two parties have, for the history of the United States, at least over the last 150 years, been parties for capitalism. They both say so, there’s no reason to doubt it.” (33:00)
• On the Need for a Clear Position:
  • “What we need to do now is to overcome the hesitancy of a political party to take a clear position: ‘We can do better than capitalism, and that’s our project.’” (35:55)
• On Strategic Alliance:
  • “We need existing and future worker co-ops to recognize that they need the kind of political support, the kind of constant pressure on the government to begin with to service the worker co-op sector rather than to discriminate against it.” (36:32)

Important Timestamps

• 01:00 — Polls reveal majorities critical of capitalism
• 07:40–14:30 — Deep dive: transition from feudalism to capitalism
• 17:00 — The rise of worker co-ops today
• 25:00 — Strategy for building a political project of co-ops, allies, and labor
• 28:00 — Critique of government policies’ bias towards capitalist corporations
• 31:00 — Outlining the new party’s principles and objectives
• 36:30 — The necessity for worker co-ops/political party alliance
• 39:00 — On the Democratic Party’s limits and expectations
• 42:00 — Summing up: learning strategy from history

Summary: Takeaway

Richard D. Wolff uses a blend of economic history and contemporary analysis to show that systemic transitions—like moving from capitalism to a truly democratic workplace economy—require both grassroots organizational change (worker co-ops and alliances) and an explicit, independent political strategy. Building this movement, Wolff emphasizes, means learning the lessons of past transitions: only through new, purpose-built political organizations—rooted in today’s emerging co-op and labor movements—can real progress beyond capitalism be secured.