Economic Update with Richard D. Wolff
Episode: The Contradictions of 2021
Date: December 23, 2021

Episode Overview

In this year-end episode, economist Richard D. Wolff reflects on 2021 through the lens of economic contradictions, addressing the year’s political developments, labor movements, systemic failures, and market hypocrisies. Wolff breaks down the ways in which hope and despair, progress and setback have intertwined, offering insight into why these economic contradictions matter and what they reveal about the U.S. and global capitalism.

Key Discussion Points & Insights

1. Contradictions in 2021: Upsides and Downsides

(00:55–05:31)

• Downsides Noted:

  • Disappointment with Biden administration's policies and inability of the Democratic party to enact even modest reforms.
  • Persistence of Trump-era politics and right-wing momentum.
  • Ongoing COVID-19 pandemic effects.
  • Deepening economic inequality and inflation.
  • Supply chain “shocks” and basic goods shortages.

• Upsides Highlighted:

  • Rising worker militancy: more strikes, labor action, and resignations across multiple sectors.

    “Worker militancy in this country has reached altogether new heights compared to anything I’ve seen in decades.” — Richard Wolff (04:08)

  • Increasing critique and openness toward discussing the failures of capitalism.
  • U.S. withdrawal from Afghanistan.
  • German elections resulting in a socialist-led coalition government.
  • Growth of Economic Update’s audience and impact.

2. Cuba’s COVID Response

(06:00–08:29)

• Cuba successfully developed and distributed its own COVID-19 vaccine (“Soberana”), achieving over 90% vaccination—almost double the U.S. rate.
• The Cuban vaccine boasts a 92% efficacy rate and is now exported to at least six countries.
• Cuba’s COVID-19 mortality rate is roughly a third that of the U.S., despite its limited resources.

  “Cuba now exports that vaccine to six that I could verify countries… 1/3 the rate of death of the US, that is the performance.” — Richard Wolff (07:59)

3. French Political Turmoil: Lessons for the U.S.

(08:30–14:46)

• The emergence of far-right presidential candidate Éric Zemmour, echoing realignment seen in U.S. politics.

  “Immigrants are thieves, murderers, rapists. That’s all they are.” — Éric Zemmour, quoted by Wolff (10:10)

• Zemmour and Marine Le Pen are splitting France’s right-wing vote. Le Pen has shifted left on economic issues (pro-wage increases, lower retirement age) while Zemmour stays neoliberal.
• President Macron polls at about 25%, indicating wide dissatisfaction.
• The left is fragmented between Socialists, the far left, Greens, and Communists—despite collectively outpolling Macron, they are unable to unite.

  “If the left got together… they could run this society. What the French left can’t do is get itself together… and that ought to surprise nobody because that’s the problem of the American left as well.” — Richard Wolff (14:26)

4. The Manufacturing Decline: Who’s Responsible?

(14:47–20:19)

• The promise to revive U.S. manufacturing jobs has been made by every president since Reagan, but manufacturing jobs have stagnated or fallen, from 20 million (1979) to 8.5 million today.
• Productivity has increased, but jobs have been eliminated by automation and offshoring to low-wage countries.
• Wolff stresses that neither workers nor government made these decisions; it was employers—profit-driven capitalists—who offshored jobs and automated processes.

  “You know who did it? Employers did it. They're the ones who made the decision to close the factory in Cincinnati and move it to Shanghai… because you could pay people in India and China a small fraction of the wages you had to pay an American.” — Richard Wolff (17:20)

5. Class Struggle in Major League Baseball

(20:20–24:37)

• Major League Baseball (MLB) owners enacted the first lockout since 1994, highlighting that labor conflict occurs at all wage levels.
• MLB owners—billionaires—enjoy rising revenues, while average player salaries have declined by 6.1% since 2017.
• Lockouts are employer-driven and designed to pressure players, despite owners’ growing profits.

  “We don’t go to the game to watch the owner, do we? Because he’s usually kind of fat and out of shape. We go to watch the players.” — Richard Wolff (22:50)

• The labor struggle is systemic and affects workers across the pay spectrum.

6. Hypocrisy in U.S.–China Business Criticism: The Case of Mitt Romney

(24:38–28:33)

• Mitt Romney criticized hedge fund CEO Ray Dalio for investing in China on supposed moral grounds (Uyghur, Hong Kong issues), despite his former firm, Bain Capital, also investing in China for profit.

  “The hypocrisy of a man who lives the world of profit all his life and profits from it, wanting suddenly to call some selected other for doing what his firm and every other one does. That’s the kind of gross hypocrisy our political leaders practice daily.” — Richard Wolff (28:28)

• Dalio’s response: All major firms invest in China because it's profitable, following the capitalist logic taught in business schools.

Notable Quotes & Memorable Moments

• On University Labor:

  “Most American major universities… have become copycats of capitalist, profit-driven institutions. That’s why they’ve jacked up the prices far beyond the cost of living… and that’s why they also abuse the graduate students that they hire…” — Richard Wolff (01:27)

• On Worker Resignation:

  “People quitting jobs because it’s not acceptable to be treated this way anymore.” — Richard Wolff (03:59)

• On the U.S. Political Scene:

  “Wow. Has the Democratic Party establishment disappointed us, failing to fight for what they even proposed, which was too modest to begin with.” — Richard Wolff (02:28)

• On Left Disunity:

  “What the French left can’t do is get itself together and develop a clear vision. And that ought to surprise nobody because that’s the problem of the American left as well.” — Richard Wolff (14:25)

Timestamps for Important Segments

• Episode Theme & Contradictions: 00:55–05:31
• Cuba’s COVID Vaccine Success: 06:00–08:29
• French Political Dynamics: 08:30–14:46
• U.S. Manufacturing Decline: 14:47–20:19
• MLB Labor Conflict: 20:20–24:37
• Romney–Dalio & Hypocrisy: 24:38–28:33

Conclusion

Wolff draws the year to a close by encouraging listeners to understand these contradictions—not as isolated incidents, but as structural symptoms of capitalism. He urges solidarity and critical awareness for more effective resistance and change.

“Thank you for your attention to this program, to us all year round. It is a pleasure doing this work and we value you as partners…” — Richard Wolff (28:29)

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End of Summary