Economic Update with Richard D. Wolff
Episode: Social Problems Require Social Movement Solutions
Date: September 2, 2025
Host: Richard D. Wolff (Democracy at Work)
Episode Overview
In this episode, Richard D. Wolff explores why persistent social and economic problems—like homelessness, wage stagnation, and attacks on social welfare—are rooted in systemic failures and require collective social movement solutions, not just individual actions or policy tweaks. Through global examples and analysis, Wolff connects economic crises to deliberate political choices, emphasizing the need for solidarity, organization, and action among ordinary people to counterbalance entrenched wealth and power.
Key Discussion Points & Insights
Announcements & Upcoming Events
[00:20 – 08:40]
- Wolff announces fall programming in partnership with the Left Forum, including:
- "Understanding Capitalism" class series with Professors Clara Mataj and Shahram Azer, starting September 15th.
- Book launch for From the Flag to the Cross: Fascism, American Style (Sept 24, NYC).
- Discounted book bundles (Understanding Marxism, Socialism, and Capitalism) on democracyatwork.info.
- Two open public events in October:
- Oct 9: "Where We Go from Here" at John Jay College, NYC, featuring Cornel West, Chris Hedges, Laura Flanders, Alex, and Wolff.
- Oct 11: "Women Building Up" event in Brooklyn, focused on the solidarity economy.
- Concludes: “Sorry for all these events, but we have been busy.” [08:38]
Housing First and Systemic Economic Failure
[08:41 – 15:30]
- “Housing First” policy: Originally bipartisan, it prioritizes providing housing to the homeless before addressing other needs. The Trump administration has cut these programs citing (unfounded) claims of fraud and crime.
- Wolff’s critique: Arguing over “housing first” vs. treatment first is a distraction from deeper structural problems—namely, high housing costs and stagnant wages.
- “The issue isn’t which comes first… We have an economic system that’s failing you.” [11:15]
- Memorable analogy: “Deciding whether housing is first or something else is first is a little bit like that old story of being busily rearranging the chairs on the deck of the Titanic as it sinks.” [12:26]
- The real solution: Raise wages, lower housing costs, or do both. But political will is lacking.
The Wealth Tax Debate: Spain, Norway, Switzerland vs. the U.S.
[15:31 – 19:45]
- Spain is considering a federal wealth tax, joining Norway and Switzerland.
- U.S. distinction: Only local governments tax (real) wealth via property taxes—no tax on other assets (stocks, bonds).
- “If you own shares of stock, you only pay an income tax on the dividends, not on the value of the property. You know who that helps? The people who own stocks and bonds.” [17:34]
- “By not taxing the wealth in those forms, you are simply subsidizing the richest people in the country.” [17:52]
- 10% of Americans own 80% of the stocks.
- Wolff advocates: A modest 1% wealth tax on stocks/bonds could generate revenue for social needs—but the political class is captured by the wealthy.
Attacks on Public Sector Unions
[19:46 – 21:45]
- Ongoing efforts to remove collective bargaining rights for government employees (reversed from historic wins).
- Wolff warns: “Mr. Trump and the courts are taking that away… it’s going to affect us in thousands of ways we need to worry about.” [20:25]
Elder Listeners, Social Security, and Facing Systemic Decline
[21:46 – 24:55]
- Responding to questions from retirees and seniors: Can individuals protect themselves as the American system declines?
- Options like moving abroad (e.g., New Zealand) or relying on Social Security are unreliable as cuts loom.
- “You are not facing a personal problem. You are facing a social problem—the social system going down.” [23:03]
- Core message: Only a social movement—a collective response—can address such systemic challenges.
- “The solution to that social problem is a social movement.” [23:46]
- Bipartisan consensus among elites ensures only speeds of system dismantlement differ.
Lessons from the New Deal: Social Movements Create Social Solutions
[26:00 – 30:50]
- Historical example: In the 1930s, despite economic collapse, collective action (labor unions, socialist/communist parties) forced the government to create Social Security, unemployment compensation, and federal jobs.
- “Where did the government get the money? From corporations and the rich. They’re the ones who had it. And the government went and took it and used it to pay…” [28:46]
- Principle: “You can’t solve a social problem with an individual act. That’s not how it works.” [30:38]
Contemporary Examples of Social Movement Solutions
France: Protests Against Austerity
[30:51 – 36:50]
- President Macron proposes budget cuts: limiting pensions, raising healthcare deductibles, and cancelling two national holidays (benefiting employers).
- French public’s reaction: General mobilization for a nationwide strike—planned for September 10 (“Bloc on tout”/ “Let’s block everything!”).
- Historical context: France’s tradition of popular resistance (e.g., Yellow Vests forced Macron to retreat on pension age).
- “They are going into the streets… and they’re going to block everything. The country comes to a stop as people say, ‘You’re not doing this to us. No business as usual.’” [34:07]
- “He will have to compromise because the people acted as a social collectivity. Learn the lesson, my fellow Americans. It’s long overdue.” [36:26]
Canada: Air Canada Flight Attendants Strike
[36:51 – 43:00]
- 10,000 Air Canada flight attendants strike for pay during ground hours.
- Government orders them back to work using obscure legal powers; workers refuse, risking fines and jail.
- Result: Government concedes within days when airline operations collapse; the union wins its demands.
- “The 10,000 flight attendants did something… they looked at the government and said, ‘Not going to happen.’” [41:17]
- “Social action by that union solved the social problem of a government that thought it could solve its economic problems on the backs of workers.” [42:22]
- Conclusion: Social action—collective organization—forces real change, not deference to elites or modest asks.
Notable Quotes & Memorable Moments
- On systemic failure: “You measure an economic system, first and foremost, by how well it provides food, clothing, and shelter to the people in it.” [11:24]
- On wealth taxes: “Why not be able to do extraordinary things for the people of America by taxing wealth? …It’s just the power of those at the top who have bought the politicians to make sure we don’t even discuss a wealth tax when we should.” [19:05]
- On individual vs. collective action: “You can’t solve a social problem with an individual act. That’s not how it works.” [30:38]
- On solidarity: “That’s what an organization is—a way to add up the individual needs into a collective agenda.” [42:55]
Takeaways
- Social problems in the U.S.—from housing to labor rights—are deeply rooted in systemic economic and political arrangements designed to benefit the wealthy.
- Policy discussions like “Housing First” are important, but miss the structural necessity of raising wages, taxing wealth, and organizing politically.
- The path to real change requires mass organization and action, as exemplified by historical New Deal victories and contemporary strikes in France and Canada.
- Individual responses—be it prudent investments, fleeing abroad, or hoping for safety nets—are insufficient; only solidarity and movement-building can address root problems.
Timestamps for Key Segments
- 00:20 – 08:40: Event announcements and course/book information
- 08:41 – 15:30: Housing First, homelessness, and economic system critique
- 15:31 – 19:45: Wealth tax comparisons and U.S. tax policy analysis
- 19:46 – 21:45: Attacks on public sector unions
- 21:46 – 24:55: Advice for elders and the need for collective solutions
- 26:00 – 30:50: History of the New Deal and social movements
- 30:51 – 36:50: French austerity protests and lessons for Americans
- 36:51 – 43:00: Canadian flight attendants’ strike as model of solidarity
For more resources and event information, visit democracyatwork.info