Economic Update with Richard D. Wolff

Episode: The Challenge of Progressive Unionism

Date: July 15, 2021
Host: Richard D. Wolff
Guest: David Van Dusen, President, Vermont AFL-CIO

Episode Overview

This episode critically examines the state of economic inequality in the United States, focusing on the disparity between rising worker productivity and stagnating wages, the skyrocketing costs of living, and the role of money in politics. The central theme pivots in the second half to the rise of progressive unionism, through an in-depth interview with David Van Dusen, who leads the United slate of Vermont’s AFL-CIO. The discussion explores the tensions between local and national union leadership, labor’s relationship with political parties, the integration of worker co-ops into union strategy, and Vermont’s unique path toward energizing and democratizing its labor movement.

Key Topics & Insights

1. Money and Politics: Democracy Undermined

• [00:10-03:45] Wolff details the outsized influence of money in U.S. elections, highlighting that Wall Street spent $2.9 billion on the 2019–2020 election cycle.
• Stat: 90% of U.S. House races were won by the candidate who spent the most money.
  • Quote:

    “You cannot have a democracy when the politicians who run it are purchased in this way by those who have the money and who spend it like there’s no tomorrow...” – Richard Wolff (03:23)

2. Stagnant Wages, Rising Productivity, and Inequality

• [03:45-07:00] From 1979 to 2019, average hourly compensation rose just 17%, while worker productivity soared by 72%.
  • Insight: The majority of gains are captured by employers, fueling inequality.
• Memorable Statistic:

  “If the federal minimum wage had increased at the same rate as the average Wall Street bonus since 1985, the minimum wage would be $44.12 an hour instead of $7.25.” – Richard Wolff (13:30)

3. The Cost of Living: Health, Education, and Retirement

• [07:00-13:00]
  • Healthcare costs doubled as a share of consumer spending over 40 years.
  • By 2018, 42 states had health insurance costs consuming at least 10% of median incomes (up from 7 states in 2008).
  • Education costs rose 600% more than incomes since 1980; student/family debt soared.
  • 1 in 4 Americans has no retirement savings; the median account is $120,000, translating to less than $1,000/month in retirement.
  • Social Security’s purchasing power has dropped 30% since 2000.
  • Racial wealth gaps: The median white family has 41x the wealth of Black families; just 44% of Black families own homes versus 72% of white families.
• Striking Moment:

  “Losing the $1.62 trillion [in billionaire wealth gains during COVID] would change a billionaire’s life, nothing. But if you distributed that to every American, it’s a $4,800 stimulus check.” – Richard Wolff (13:12)

Interview: David Van Dusen (Vermont AFL-CIO President)

4. The Vermont-National AFL-CIO Rift: Democracy in Crisis

• [15:35-18:59]
  • In November 2020, as fears of a possible coup loomed, the Vermont AFL-CIO voted (87%) to authorize a general strike in defense of democracy – a move opposed and investigated by the national AFL-CIO.
  • Van Dusen emphasizes member-driven democracy and justifies the willingness to act.
  • Quote:

    “If our democracy is not worth protecting and defending, then I don’t know what we’re doing here… We make no apologies whatsoever and we would do it again.” – David Van Dusen (17:18)

  • The national leadership’s “retaliation” is framed as antagonistic to grassroots union democracy.

5. Labor’s Political Strategy: Breaking with the Democratic Party

• [21:06-22:57]
  • Van Dusen argues the AFL-CIO’s traditional alignment with the Democratic Party has yielded little for labor, with pro-labor legislation (like the PRO Act) still blocked.
  • He advocates redirecting massive political donations toward organizing, building relationships with social justice groups, and exerting independent pressure outside party structures.
  • Quote:

    “The Democratic Party has failed us time and time again and it's time to look for alternatives.” – David Van Dusen (22:32)

6. Progressive Alternatives: Vermont’s Multi-Party System

• [23:10-24:53]
  • Vermont’s Progressive Party, which regularly aligns with and supports organized labor, provides a practical alternative to the traditional two-party system, securing tangible protections for workers.
  • Van Dusen calls for the national labor movement to embrace or build a similar alternative party structure dedicated to workers’ interests.

7. Worker Cooperatives & Unions: Stronger Together

• [25:41-26:40]
  • Van Dusen envisions integrating worker co-ops into the labor movement—not as rivals but as collaborators—mutually supporting organizing and breaking down silos.
  • Quote:

    “We don't want the co-op movement to be its own silo separate from the labor movement. We're stronger together.” – David Van Dusen (26:20)

8. The Vermont Model: Building Rank-and-File Power

• [27:00-28:33]
  • Vermont’s labor revitalization came from bottom-up organizing, cross-sector solidarity, and a strategic shift from lobbying to direct organizing.
  • Quote:

    “We took money out of our lobbying efforts, we put [it] into organizing... We can’t make the mistake of doing what we’ve always done and expecting a different result.” – David Van Dusen (28:16)

Notable Quotes & Timestamps

| Timestamp | Speaker | Quote | |-----------|---------|-------| | 03:23 | Wolff | “You cannot have a democracy when the politicians who run it are purchased in this way by those who have the money...” | | 13:30 | Wolff | “If the federal minimum wage had increased at the same rate as the average Wall Street bonus…it would be $44.12 an hour.” | | 17:18 | Van Dusen | “If our democracy is not worth protecting and defending, then I don’t know what we’re doing here…We make no apologies whatsoever and we would do it again.” | | 22:32 | Van Dusen | “The Democratic Party has failed us time and time again and it's time to look for alternatives.” | | 26:20 | Van Dusen | “We don't want the co-op movement to be its own silo separate from the labor movement. We're stronger together.” | | 28:16 | Van Dusen | “We took money out of our lobbying efforts, we put [it] into organizing... We can’t make the mistake of doing what we’ve always done and expecting a different result.” |

Important Segments & Timestamps

• Money in Politics/Election Influence: [00:10–03:45]
• Wages vs. Productivity/Inequality Data: [03:45–07:00]
• Cost-of-Living, Health, Education: [07:00–13:00]
• Wall Street Bonuses/Billionaire Wealth: [13:00–15:30]
• Interview Begins—Vermont AFL-CIO vs. National: [15:34]
• Democracy Crisis/General Strike Vote: [16:23–18:59]
• Labor’s Relationship with Politics: [21:06–24:53]
• Worker Co-ops & Union Collaboration: [25:41–26:40]
• Vermont’s Approach/Union Democratic Renewal: [27:00–28:33]

Conclusion

This episode lays bare the systemic economic pressures facing American workers, underscoring the urgent need for political and organizational reform. The conversation with David Van Dusen provides a powerful case study of progressive union strategy—prioritizing rank-and-file democracy, breaking with conventional party alliances, and envisioning a more unified labor movement that includes both traditional unions and worker co-ops. Vermont’s example offers inspiration and a blueprint for revitalizing organized labor across the country.