Transcript
Richard Wolff (0:20)
Welcome, friends, to another edition of Economic Update, a weekly program devoted to the economic dimensions of our lives and those of our children. I'm your host, Richard Wolff. Quickly, a reminder that Charlie Fabian is awaiting your suggestions and comments about the program. Charlie.info438mail.com is how you reach him. And again, a reminder that there's a companion volume to this program called Understanding Capitalism. It is what we do in each program, but we can only do it to a limited way and also trying to be topical. The book gives you the background, the depth of a real serious engagement critical with capitalism. Today, we're going to be talking about social welfare, we're going to be talking about veterans, we're going to be talking about the uncertainties surrounding Mr. Trump's tariff policies and indeed most of his policies. And finally, we're going to have something to say about the emerging economic isolation of the United States. The second half we'll be talking with Maliha Safri and Stephen Healy about serious experiments around the world in trying to develop new and different kinds of, of economic systems going on now when we need them more than ever. Okay, here we go. Jacobin magazine for spring 2025 had an article in it by David Kalnitsky, and he deals with an argument heard often that capitalism is to be credited with the fact that over the last century or two or three, living the length of life has increased longevity, we are healthier, we eat better, we have better diets and all of that. That capitalism has been happening together with increased well being. And David Kalnytsky correctly says, wait a minute, why is capitalism getting all that credit? Socialism should get it, too. Jacobin is a socialist magazine, and he's right, of course, that socialists fought very hard for many of the laws and the rules and the regulations that are part of increased well being. Giving all the credit to capitalism is not accurate, not appropriate, and politically retrograde. All true, but there is a further point in this discussion that David Kalnitsky doesn't address and he ought to have. Capitalism not only is demanding credit for the improvement in people's standard of living, but it is doing so after unrelenting opposition to every one of those improvements. It is staggering when you take a look at it in that light. For example, capitalists did not raise wages so that people would have enough money to have a decent home and a decent diet and decent education and decent health care. Not at all. Corporations are institutions committed to lowering what they pay workers in every way they can. They leave the United States to go where you can get away with paying workers less. They bring in immigrants from poor countries cause you can pay em less. And they automate jobs so they don't have to pay them at all by replacing them with machines, leaving them of course, unemployed, no income, sick, all the rest. Let me take an example, even though I don't think you really need it, the minimum wage. The business class of America opposed ideas of a minimum wage in the 19th century. They opposed them in the first third of the 20th century when finally you had a complete collapse of capitalism, weakening the business class because of it. Finally, through an uprising of socialist communists and labor unionists, you got the Roosevelt government in the 1930s to establish a minimum wage. But that was not capitalists who helped that happen. Capitalists were involved in blocking it, delaying it, postponing it, and then minimizing it. And that never stopped. The last time the federal minimum wage was raised was in the year 2009, 16 years ago. Every year since, prices went up in America, sometimes a little, sometimes a lot. But throughout that time, people at the bottom, the minimum wage recipients, didn't get an increase. We savaged the poorest amongst us working people earning the minimum wage. What kind of a society does that? And were there some who wanted to raise the minimum wage? Yes, Unions pushed for it, liberals pushed for it, the labor movement pushed for it. And you know who pushed against it? Yeah, the business community, like they always do. So yeah, the capitalists take credit that trying to deny the socialists the credit they deserve and trying above all to erase how they were obstacles to every bit of that improvement throughout the last several centuries. That's the truth of the situation. I want to turn now to veterans. I don't talk about them much and this is an opportunity to do that. And to give you some background, in 1944, toward the end of World War II, the Congress of the United States passed something called the Veterans Preference act into law. President Roosevelt signed it and what it did is gave veterans a preference. In those days they didn't use the phrase. I'll use the more modern affirmative action for veterans. It meant that employers should favor veterans over non veterans in hiring, give them a preference to get hired, and in layoffs, give them a preference by postponing or delaying their layoffs. That's why 30% of employees in the federal government are veterans. They got the preference and half of them are disabled veterans, people who not only spent time in the military but suffered bodily harm as a result. Why is it that the government felt that it ought to do that. Two reasons. But the basic reason was soldiers lose out economically. Those years that they spend in the service are years they're not spending. Acquiring usable skills, making the right connections in the world of work, moving up the career ladder as best they can. All of that is delayed, and they pay a price economically for much of the rest of their lives. And if they contract a physical or mental disease or problem, as an enormous number of them do, that's a further problem that they have. And they have it because of a governmental policy. What was it? Going to war, obviously, and sending them into harm's way in battles. I want to remind you, the logic of affirmative action for African Americans and others like them is that the government allowed a regime of repression, denial, discrimination for a long, long time. And that hurt the ability to save money, the ability therefore to pass through on generations, the means for later generations to get the educations the way other social groups in the society were able to do. So. The government owes them for its malfeasance, its failure to do things, its complicity in racisms of various kinds, just like it has an obligation to the soldiers it asked to go and fight. So the logic is very similar. Now, of course, Mr. Trump and the Republicans dare not speak out against veterans the way they have against black and brown Americans on so many levels, but they're doing the same thing. The way they're doing it is wholesale firing of people working in the Veterans Administration. Many of the people fired from the Veterans Administration, as they have pointed out, are veterans, and including many who are disabled. We are going back on the promise to those people made by the 1944 Act. And everybody should be aware. No, they won't tell you about it. So many words. But the denial of affirmative action to our black and brown brothers and sisters is exactly the same operation as denying preference to the veterans. And it tells you something about a government that does both of those things. The next topic is Trump's tariffs. Not the particulars, but the fact that it's up and down that one day it's this number, the next day it's another number that he suggests or his people do that they'll negotiate with this country or that country, and if they get something from the country, they'll lower the tariff. You know what this means? No one can calculate. No business can decide where to locate its next factory or its next warehouse or where to source their inputs from, because Lord knows it'll have to go through this in this country, paying this. And the chaos now. And I'm not even talking about the retaliations to come that we don't even know about yet, because they haven't been decided. The uncertainty is leading businesses not to invest. And you know what that produces? Recessions. Cause we're all in capitalism held hostage to what businesses decide to do. If they invest, our economies in good shape. If they hold back, we call it a recession. The media are careful never to blame the corporations, but they're the ones. The rest of us what the working class part of it saves, the other part of it overspends. So you take workers altogether, there's no problem. Whatever they get, they spend. Not with corporations. What they get in their profits, they may or may not invest. If they do, our economy bubbles along. If they don't, we have recessions. That's what I mean by we're held hostage to the business community. And wow, they are affected by the uncertainty. So are all the countries in the world. And one of the consequences no one wants to talk about is that the United States is the cause of the uncertainty. Mr. Trump's tariffs shook and are still shaking the world. That may look like the bold character he wants us to think him to be, but the uncertainty is devastating. And you know what every country is doing. They're not just calling Mr. Trump to cut a deal. Some of them are doing that and some of them will no doubt cut a deal. But those with any kind of backbone and self support are not going to do that. They're going to look for ways to get around this and you know what that means. They're going to look for other buyers, other sellers, other investors. And now there is an other to the United States. It's called China. And the BRICS allies, they're a bigger economic powerhouse together than the United States is, and that's where they're going to go. What we are watching is the uncertainty that deepens and quickly the isolation of the United States in the larger world. We are, as Americans, 4.5% of the people of this planet. China and the BRICs are 60%. Don't forget the statistic. It'll save you unspeakable grief if you do as Mr. Trump clearly does. We've come to the end of the first half of today's show. Stay with us. Will be back with two people studying and celebrating alternative systems to capitalism as ways to organize an economy that will not work the way this one is treating us.
