Economic Update with Richard D. Wolff

Episode: Socialism and Puerto Rico
Date: March 4, 2021

Overview

This episode, hosted by Richard D. Wolff, critically examines the persistence of economic inequality in the United States, the ways policy responses to crises have favored the wealthy, and then shifts focus to the multifaceted economic and political crisis in Puerto Rico. The guest, Senator Rafael Bernabe, a long-time socialist and activist, provides a detailed analysis of Puerto Rico’s economic hardships, political shifts, and the growing momentum of leftist and socialist movements on the island. The episode explores both the structures of exploitation and the emergence of organized resistance.

Key Discussion Points & Insights

1. U.S. Economic Inequality and Policy Failures

(00:10–14:39)

• Critique of Policy Rhetoric vs. Action:
  • Wolff calls out the Biden economic team, especially Janet Yellen, for “talking a great deal about their concern for inequality,” but not implementing meaningful change. He criticizes Democrats for repeating a pattern of talk without substantive action, leading to worsening inequality.
• Role of Monetary Policy:
  • Massive monetary interventions (e.g., by the Federal Reserve) benefit those holding stocks (“the 10% of Americans who own 80% of the stocks”) and worsen inequality, as highlighted by Wolff:
    • “If you pump vast amounts of money into an economy that's not in good shape, that money can end up going into the stock market... It's going to worsen inequality.” (01:02)
• Impact of COVID-19 Relief:
  • Relief programs disproportionately favored big businesses and higher-wage workers, while retail and restaurant workers suffered most.
• Ballooning Debts in Public Institutions:
  • Example: University of Washington selling bonds just to pay off old debts – a sign of systemic crisis in higher education funding.
    • “If you're borrowing to pay off the bad debts you already have, your debt problem is going to get worse.” (04:52)
• Explosive Wealth Gains Among the Ultra-Rich:
  • Hedge fund managers like Chase Coleman ($3 billion in 2020) thrived during societal crisis; Wolff breaks this down to $58 million per week, highlighting the disconnect with mass unemployment.
    • “Chase Coleman does not have to buy lottery tickets because he wins the lottery every day, seven days a week...” (07:05)
  • On Jeff Bezos and MacKenzie Scott: While their philanthropic donations are huge in dollar terms, they pale compared to the astronomical increase in their wealth during the pandemic.
    • “Their wealth has risen from the $11 billion they had in 2010 to $250 billion... Out of that, they've given 7.2 [billion]. In other words, they've kept the overwhelming lion's share.” (09:45)
    • “Bezos...gave only one [billion]. But I should be fair. He recently gave, or said he did, $10 billion. But who did he give it to? The Bezos Earth Fund...he charitably gave to himself. Folks, you can't make this up...” (11:15)
• Global Political Dynamics:
  • Mention of France’s backlash against U.S.-influenced social movements like Black Lives Matter and MeToo, framing it as a trend of blaming external forces for internal problems.
    • “For those of us like myself who are very familiar with France, the ability to blame outsiders...is an example of blaming foreigners. That for sure they're copying the United States.” (12:45)
• Contrast in Policing Movements:
  • Wolff notes the disparity in U.S. political repression: Historic overreaction and punishment against communists vs. relatively muted response to far-right groups post-Jan 6th.
    • “Communists then were punished for what they didn't do. Proud Boys and others are not getting punished for what they, in fact, did.” (13:50)

2. Interview with Senator Rafael Bernabe — Puerto Rico’s Crisis and Leftist Movements

(14:39–28:47)

Economic Crisis in Puerto Rico

• Multi-layered Crisis:
  • Bernabe describes the situation as “a disaster…a crisis that has many layers.” Puerto Rico’s economy is characterized as colonial, dependent, and dominated by U.S. corporations.
  • Persistent high unemployment; since 2006, Puerto Rico’s economy hasn’t grown and has lost about 20% of its jobs. There’s been mass emigration and, for the first time in centuries, a declining population.
    • “It's an economy that has never been able to provide enough employment for Puerto Rico's labor force.” (16:53)
• Debt Default and Federal Control:
  • The government’s solution has been unsustainable borrowing, leading to a 2015 default.
  • The U.S. Congress imposed a Federal Oversight Board, which has enforced harsh austerity to prioritize bondholder payments.
  • Catastrophic events — Hurricane Maria, COVID-19 — exacerbated the crisis.
    • “So the economic situation is terrible. There's no other way to describe the material and economic situation in Puerto Rico right now.” (18:42)

Political Upheaval and the Rise of the Left

• Collapse of Traditional Parties:
  • Puerto Rico’s two traditional parties (pro-status quo and pro-statehood) are losing support, unable to offer solutions.
  • Mass protests in 2019 ousted Governor Ricardo Rosselló — a historic milestone for popular mobilization.
    • “People were in the streets protesting...for 20 days until he was forced to resign. This had never happened in Puerto Rico's history.” (21:07)
  • Recent elections (2020): The winning governor secured only 33% of the vote, marking a dramatic decline in the power of establishment parties.
• Rise of Progressive and Socialist Forces:
  • Bernabe’s Victoria Ciudadana and the Puerto Rican Independence Party now command a combined 30% of the vote. The left increased its seats in the legislature.
    • “Two forces that you could describe as left forces...did very well. They got around...30% of the vote.” (22:35)
  • Broad message: Aided by the collapse of traditional parties, new left/pro-working class movements have unprecedented momentum.

International Solidarity and the Future

• Connection with U.S. Left:
  • Bernabe situates Puerto Rico’s struggle in the context of a broader anti-capitalist movement, drawing inspiration from the rise of U.S. progressives like Bernie Sanders and Alexandria Ocasio-Cortez.
    • “For us, at least for me, it's very important that progressive forces grow and become stronger in the United States...it fills us with enthusiasm and hope that we have allies.” (25:37)
• Three Priorities for Puerto Rico:
  1. Self-determination:
     Push for a fair process, allowing Puerto Ricans to democratically decide their status (statehood, independence, or association).
     • “There should be a self determination process and Congress should be pushed to take action in that direction.” (27:03)
  2. Debt Cancellation:
     The $70 billion public debt is untenable without extreme sacrifice by Puerto Ricans.
     • “Puerto Rico has a public debt which is $70 billion cannot be paid unless you impose on the Puerto Rican people unacceptable sacrifices. So we should struggle to have that debt canceled.” (27:26)
  3. Economic Reconstruction:
     Rebuilding the devastated economy will require new policies and significant Congressional support.
     • “Congress should also provide for the economic reconstruction of Puerto Rico.” (27:50)

Notable Quotes & Memorable Moments

• Wolff on Monied Interests:
  “Chase Coleman does not have to buy lottery tickets because he wins the lottery every day, seven days a week, 52 weeks of the year.” (07:05)
• Wolff on Philanthropy vs Wealth:
  “Their wealth has risen from the $11 billion they had in 2010 to $250 billion... Out of that, they've given 7.2 [billion]. In other words, they've kept the overwhelming lion's share.” (09:45)
• Bernabe on Colonial Dependency:
  “Puerto Rico has a colonial economy, a dependent economy, an economy that's completely controlled by very large US Corporations.” (16:38)
• Bernabe on Puerto Rico’s Unemployment:
  “It's an economy that has never been able to provide enough employment for Puerto Rico's labor force.” (16:53)
• Bernabe on Political Change:
  “This increased tremendously to 15% of the vote. So two forces that you could describe as left forces...got around 30% of the vote.” (22:32)
• Bernabe on International Solidarity:
  “For us, at least for me, it's very important that progressive forces grow and become stronger in the United States...it fills us with enthusiasm and hope that we have allies.” (25:37)
• Bernabe’s Three Demands:
  “Self determination, debt cancellation and economic reconstruction, these three things are crucial for Puerto Rico's future.” (28:15)

Timestamps for Key Segments

• 00:10–01:55 — Wolff critiques Biden/Yellen & longstanding inequality “talk”
• 02:00–04:47 — Impact of COVID relief policies and monetary policy on inequality
• 04:48–06:55 — University debt as a symptom of failing institutions
• 07:00–11:25 — Hedge fund and billionaire gains during the pandemic; critique of philanthropy
• 11:30–12:44 — France’s political backlash against U.S. social justice movements
• 13:00–14:39 — Policing of left vs. right movements in U.S. history
• 14:39–15:56 — Introduction of Senator Rafael Bernabe
• 15:57–18:42 — Bernabe’s overview of Puerto Rico’s economic disaster
• 19:10–23:25 — Political shifts on the island: collapse of old parties, rise of the left
• 23:26–24:13 — Comparison with the U.S. socialist movement
• 24:14–26:13 — Importance of solidarity between U.S. and Puerto Rican leftists
• 26:49–28:14 — Bernabe’s call for self-determination, debt cancellation, and reconstruction

Tone and Language

The episode maintains Wolff’s characteristically sharp, direct criticism of economic inequality and policy hypocrisy, balancing statistics and anecdotes with biting humor (“Chase Coleman does not have to buy lottery tickets...”). In the interview, Senator Bernabe speaks with clarity and urgency about systemic exploitation but also with hopefulness about rising political alternatives and international solidarity. Both speakers emphasize structural critique and grassroots empowerment.

Summary

This episode is a compelling analysis of the mechanisms deepening economic inequality in the U.S., illustrated further by the dire and layered crisis in Puerto Rico. Richard D. Wolff exposes the failures of policy and the grotesque enrichment of the economic elite during periods of mass suffering, before the show pivots to Senator Rafael Bernabe’s illuminating breakdown of Puerto Rico’s economic and political collapse — and the corresponding rise of the left and socialist movements. The episode concludes with a call for allied struggle across borders, centered on self-determination, debt cancellation, and economic justice.