Economic Update with Richard D. Wolff

Episode: Socialism and Left Unity in the US

Date: February 14, 2020

Episode Overview

In this episode, Richard D. Wolff delves into the resurgence of socialism and the prospects for greater unity on the American left. After his weekly economic updates, Wolff hosts Karen Renucci (Center for Critical Thought) and Rob Robinson (Left Forum/NESRI) to discuss efforts at building educational institutions and alliances for socialist thinking and action, with a focus on engaging younger generations and unifying diverse progressive movements.

Key Discussion Points & Insights

I. Economic Updates and Critique of Policy (00:10 - 15:20)

1. The U.S. Deficit and Political Hypocrisy

• Wolff highlights the Trump administration’s $1 trillion deficit in 2019, pointing out the contradiction between campaign promises to reduce the deficit and the reality of increasing it.
  • Main causes: 2017 tax cuts for the wealthy and corporations, and a rising military budget.
  • Quote: "It's like musical chairs where we replace one another. The Republicans are acting like Democrats and the Democrats are acting like Republicans. And what's the lesson there—that the difference between the two of them in economics, it isn't there. They're just changing roles because they're just playing games to get in and out of office." (04:49)
• The role of government spending and Federal Reserve stimulus as a political tool, especially aimed at re-election efforts.

2. Debt and Social Spending: Risks for the Public (05:25)

• Wolff draws from international data: countries with high public debt spend less on social programs.
  • “Go into debt, you will hurt your people. Keep out of debt, you will be able to help your people.” (06:12)
• He connects third-world debt to what he calls “capitalist corruption,” where Western banks profit from lending to countries whose people then suffer long-term cuts to services.

3. Debt Relief: Amsterdam’s Bold Experiment (06:43)

• The City of Amsterdam is buying and forgiving debts owed by young people (18–34) to give them a fresh start.
  • “Over the last 10 years, governments have bailed out the banks... Why the hell shouldn’t we also bail out the indebted young people...?” (08:02)
• Wolff frames debt relief as a form of social justice, akin to past corporate bailouts.

4. "Strongman" Governments and Tariffs (09:40)

• Analysis of Trump, Johnson, and other leaders’ use of tariffs for political leverage.
• Tariffs create fear among businesses, prompting donations for exemption and bolstering the leader’s re-election chances.

5. The 2017 Tax Cuts—Who Benefited? (12:48)

• Despite promises, the Trump tax cuts did not create more jobs in the banking sector; instead, employment shrank, while profits and executive pay soared.
  • “All the promises of more jobs, false reality, fewer jobs. What did the banks do with their increased profits?... They took the profits, boosted their own stock... and by giving dividends to their shareholders and big pay packages to their top executives.” (13:54)
• Politicians use “glowing stories” to sell policies benefiting the wealthy.

II. Interview: Socialism and Left Unity in the US (16:44 - 28:11)

1. Introducing the Guests and Their Projects (16:44)

• Karen Renucci, Center for Critical Thought:
  • Working to establish a “school for socialism” in New York, aiming to gather educators and activists to share experiences and provide critical education for social change.
    • “We felt that we needed to pull forces together and create a learning institution... The goal is to make it happen everywhere because people need education.” (16:58)
• Rob Robinson, Left Forum/NESRI:
  • Left Forum—traditionally a large annual leftist conference—is moving toward building year-round educational capacity and collaboration with the Center for Critical Thought.
    • “…it was interesting when we were approached by the Center for Critical Thought to join forces with them to sort of build something that we haven't seen in this country before.” (17:56)

2. Why Socialism? (18:37)

• Left Forum’s 2020 topic is socialism for the first time.
  • Robinson: The failures of capitalism trigger a shift in thinking.
    • “We knew a capitalist society doesn't work for many people in this society. We need something different...people are fascinated by this idea of social change.” (19:07)
• Renucci: Young people are less afraid of “socialism” and more aware that capitalism isn’t working for them.
  • “When I was younger, I could get a job as a waitress...jobs were around and school was affordable. And now people of this generation, they're left out...they understand that capitalism is not working for them and that we need a society where it's built on cooperation.” (19:54)

3. Education, Activism, and Building a New World (22:24)

• Both guests underscore the need for political education that goes beyond critiquing capitalism to constructing the cooperative, socialist alternatives.
  • Renucci: “Our goal is to build a socialist world. And that means built on cooperation...not just critique capitalism because people know the problems. But what are we going to build and what does that look like?” (19:54)
  • Emphasis on models like worker co-ops and ownership by workers.

4. Uniting the Left: Strategy and Challenges (24:08)

• Unity between organizations is both a process and a model for the broader left.
• Robinson stresses intergenerational collaboration:
  • “Not just education...The elders and the young folks coming together and creating a new world...It's theory, lived experience, practical experience, all meeting in one place...” (24:08)
• Wolff references historical models, such as the German Social Democratic Party’s schools, to highlight the significance of independent educational institutions for political transformation.

5. Overcoming Division, Building an Alliance (26:06)

• Renucci: "We all benefit when we unite... Under capitalism, it factionalizes people...if we had a socialist reorganization in this country, all of those issues...we would end the war, start investing that money into renewable energy and technologies that make our lives better."
• Robinson points to the organizational success of the American right (e.g., Tea Party) as a lesson for the left:
  • “As Karen said, people work in silos. Right. And that's not going to get us anywhere...This is an opportunity to bring the masses together into one space and see cooperation, what it looks like, what it feels like, touch it and put it to practice.” (27:39)

6. Memorable Quotes

• On political unity:
  • Wolff: “If you could become what you're doing, a model, an example for the different parts to get together, boy, this country's politics would change and change quickly.” (23:32)
• On socialist imagination:
  • Renucci: “John Lennon said it years ago, imagine. And that's what we need to do is not only imagine, but then start working towards how do we build that. And it's only through unity.” (26:06)

Notable Moments & Timestamps

• Deficit discussion and two-party critique: 00:10–05:10
• Debt risks and international comparison: 05:10–06:40
• Amsterdam student debt forgiveness: 06:43–09:35
• Tax cuts, jobs & banking sector reality: 12:48–15:20
• Introduction of guests & left unity focus: 16:44–18:37
• Socialism’s contemporary appeal: 18:37–22:24
• The role of education and global inspiration: 24:08–26:06
• Call for unity and building a socialist future: 26:06–28:11

Overall Tone

The conversation is earnest, hopeful, and pragmatic. Wolff and his guests balance criticism of existing economic and political systems with concrete examples of organizing and education aimed at building a more cooperative, socialist future. Throughout, the tone is inclusive and encouraging, speaking directly to activists, young people, and broader audiences hungry for meaningful change.

Resources Mentioned

• Center for Critical Thought: centerforcriticalthought.org
• Left Forum: leftforum.org
• Democracy at Work: democracyatwork.info

This episode provides a thorough critique of the status quo and a forward-looking vision for collaboration and unity among progressive movements in the United States, with practical attention to education, intergenerational learning, and political organizing.