Economic Update with Richard D. Wolff: "Solidarity Cities as Alternatives to Capitalism" – April 22, 2025
Introduction
In the April 22, 2025 episode of Economic Update with Richard D. Wolff, host Richard Wolff delves into the intricate dynamics of capitalism, social welfare, and emerging alternatives to the traditional economic system. The episode, titled "Solidarity Cities as Alternatives to Capitalism," blends critical analysis of current economic policies with an exploration of innovative cooperative economic models. The discussion is enriched by insights from guests Maliha Safri and Stephen Healy, who shed light on groundbreaking experiments aimed at restructuring urban economies.
Capitalism’s Role in Improving Living Standards
Wolff opens the episode by addressing a common argument that attributes increased living standards—such as longer lifespans, better health, and improved diets—to capitalism. Referencing David Kalnitsky's article in Jacobin magazine, Wolff challenges the notion that capitalism alone is responsible for these advancements.
"Capitalism has been happening together with increased well-being. But David Kalnitsky correctly says, wait a minute, why is capitalism getting all that credit? Socialism should get it, too." (05:15)
He emphasizes that socialists have historically fought for many of the laws and regulations that have led to societal improvements, arguing that capitalism not only takes undue credit but has also consistently opposed these enhancements.
Capitalism’s Opposition to Social Improvements
Wolff further critiques capitalism by highlighting the system's resistance to raising wages and improving workers' conditions. He uses the example of the minimum wage to illustrate how capitalists have historically blocked labor advancements.
"Capitalists are institutions committed to lowering what they pay workers in every way they can... They oppose ideas of a minimum wage and have been undermining it since the 19th century." (10:45)
He points out that the federal minimum wage in the United States hasn't been raised since 2009, despite rising living costs, underscoring the systemic failure to support the working class.
Veterans' Affirmative Action and Government Obligations
Transitioning to social welfare, Wolff discusses the Veterans Preference Act of 1944, which grants veterans hiring and layoff preferences. He criticizes the current administration for undermining these protections by firing Veterans Administration employees, many of whom are veterans themselves.
"The denial of affirmative action to our black and brown brothers and sisters is exactly the same operation as denying preference to the veterans. It tells you something about a government that does both of those things." (12:55)
Wolff draws parallels between the support promised to veterans and the broader struggle for social justice, highlighting the government's role in perpetuating economic hardships for marginalized groups.
Impact of Trump’s Tariff Policies on Economic Stability
Wolff shifts focus to the uncertainties surrounding former President Trump's tariff policies, emphasizing the destabilizing effects of unpredictable trade measures on businesses.
"No business can decide where to locate its next factory or source their inputs from, because Lord knows it'll have to go through this in this country, paying this. And the chaos now... leading businesses not to invest." (15:30)
He argues that such policies create economic uncertainty, leading to reduced investment and potential recessions. Moreover, Wolff warns of the emerging economic isolation of the United States as global partners seek alternatives, notably China and BRICS nations.
"Solidarity is deepening, and the isolation of the United States in the larger world is progressing quickly." (17:05)
Supporting "Understanding Capitalism" and Transition to Second Half
Before moving to the interview segment, Wolff promotes his book, Understanding Capitalism, encouraging listeners to engage more deeply with the economic concepts discussed.
Interview with Maliha Safri and Stephen Healy on Solidarity Cities
In the second half of the episode, Wolff welcomes Maliha Safri and Stephen Healy to discuss their collaborative work on solidarity economies and the concept of "Solidarity Cities."
Purpose of "Solidarity Cities" Project
Maliha Safri introduces the project by recounting the story of Iglesias Gardens in Philadelphia, a cooperative initiative started by local socialists in the 1980s. This project exemplifies how solidarity economies can stabilize and rejuvenate neighborhoods facing disinvestment and gentrification.
"Sometimes it feels like we're just presented with two options, either the gentrified city or the disinvested city. And we wanted to take a look at what happens when we think about this third dimension, the not-capitalist spaces, the economies rooted in solidarity." (18:10)
Case Studies and Examples
Safri and Healy highlight various case studies from Worcester, Massachusetts; Philadelphia; and New York City, demonstrating how cooperatives in food, housing, and finance sectors provide essential services while combating exploitation and gentrification.
"There is a solidarity economy movement that was centered in the Main South neighborhood, which is a majority Latinx community... thinking about how to build effective relationships with the local government to support cooperative movements." (20:23)
Counter Mapping and Cooperative Economics
The guests discuss the innovative approach of counter mapping, which visualizes cooperative activities within cities. This method reveals that historically redlined neighborhoods now host a high density of cooperative enterprises, serving as a response to racial capitalism and financial exclusion.
"Neighborhoods that were historically redlined in the 1930s seem to have the highest density of cooperative activity in the present period." (22:29)
Economic Impact of Worker Cooperatives
Safri presents quantitative analysis demonstrating the economic benefits of worker cooperatives. In New York City, worker cooperatives contributed $125 million to the local economy, outperforming their capitalist counterparts by generating higher local demand.
"If these firms had been capitalist, they would have generated $110 million. Because capitalist firms have a different split between payroll and surplus, which goes to the capitalists." (26:01)
She emphasizes that solidarity economies not only meet core human needs more effectively but also foster sustainable local growth without the exploitative practices inherent in capitalism.
Resisting Racial Capitalism through Solidarity Economies
The conversation underscores how solidarity economies serve as a potent tool against racial capitalism, providing marginalized communities with economic autonomy and resilience against systemic oppression.
"Solidarity becomes an intergenerational response to the dynamics of racial capitalism, to forms of financial exclusion, repression, and exploitation." (22:50)
Conclusion and Closing Remarks
Wolff expresses enthusiasm for the potential of solidarity economies to offer viable alternatives to capitalism, particularly in the face of its decline. He draws historical parallels to feudalism, suggesting that the current moment presents a unique opportunity for systemic transformation.
"The decline of capitalism, creating this space for the alternative systems to emerge puts us right in the middle of history." (30:30)
He thanks Safri and Healy for their contributions and expresses hope for future discussions, emphasizing the importance of collective economic practices in shaping a more equitable society.
Final Thoughts
This episode of Economic Update with Richard D. Wolff offers a compelling critique of capitalism while highlighting innovative cooperative models as feasible alternatives. Through engaging discussions and insightful analysis, Wolff and his guests illuminate pathways toward economic systems rooted in solidarity, equity, and sustainability. For listeners seeking to understand and explore alternatives to traditional capitalism, this episode provides both theoretical frameworks and practical examples of transformative economic practices.