Economic Update with Richard D. Wolff: The Corporatization of Universities and Trump's Attacks

Release Date: May 20, 2025

Introduction

In the May 20, 2025 episode of Economic Update with Richard D. Wolff, host Richard D. Wolff delves into two pressing issues affecting the American socio-economic landscape: the decline of libertarianism in economic policy and the corporatization of American universities, further exacerbated by actions from the Trump administration. The episode also features an insightful conversation with Professor Geert Dont from the John Jay College of Criminal Justice, shedding light on the current state of higher education amidst these challenges.

Decline of Libertarianism and Neoliberalism

Richard Wolff opens the episode by addressing a significant shift in American economic ideology—the decline of libertarianism. He articulates how libertarianism, which has been a dominant economic philosophy in the U.S. for the past 40 to 50 years, champions minimal government intervention in the free enterprise system. This philosophy, rooted in the French concept of laissez-faire, advocates for the economy to operate through individual negotiations without regulatory interference.

Notable Quote:

“Libertarianism has been a way of thinking now quite powerful, quite dominant in the United States for a good bit of the last 40 to 50 years.” [00:00:35]

Wolff emphasizes that for decades, the United States benefited immensely from this approach, leveraging its post-World War II economic dominance to maintain the dollar as the global currency and concentrate wealth domestically. However, he asserts that this era has come to an end.

Key Points:

• Historical Dominance: Post-World War II, the U.S. emerged economically superior, establishing the dollar's global primacy and amassing concentrated wealth.
• Shift in Global Dynamics: The rise of China and the BRIC nations has altered the global economic landscape, diminishing the U.S.'s unparalleled dominance.
• Government Intervention: Contradicting libertarian principles, recent policies under both Republican and Democratic administrations have increased government intervention in the economy.

Trump's Economic Policies and Economic Nationalism

Wolff argues that the Trump administration has been pivotal in dismantling libertarianism, ushering in an era of economic nationalism. He highlights Trump’s use of tariffs, sanctions, and direct government intervention as antithetical to the previously dominant neoliberal ideology.

Notable Quote:

“Mr. Trump is here to tell us we're going to use the state every which way.” [00:14:30]

Key Points:

• Tariffs and Trade Barriers: Trump imposed tariffs on numerous countries, disrupting free trade and forcing foreign companies to comply with government-imposed taxes to sell in the U.S.
• Corporate Subsidies: Both Trump and Biden administrations have provided selective financial support to industries like microchips and solar panels to compete with China, indicating a departure from non-interventionist policies.
• Sanctions and Asset Freezes: The U.S. has become the leading country in imposing sanctions, exemplified by the freezing of $300 billion from Russia amidst the Ukraine conflict.
• Economic Nationalism: The shift towards prioritizing national interests and security over global free trade marks a significant ideological departure from neoliberalism.

Global Economic Landscape: Wolff provides a comparative analysis of GDP contributions to underscore the changing global economy.

• BRICs Dominance: China and its allies now account for over 35% of global output, surpassing the G7 nations, which contribute about 27%.
• Population vs. Economic Output: BRIC countries house more than half of the world's population, while the U.S. comprises merely 4.5%, highlighting the shift in both demographic and economic power.

Implications:

• Policy Denial: Despite clear evidence of declining U.S. dominance, political leaders often avoid addressing this reality.
• Free Movement Restriction: Increased deportations and the imposition of stringent migration controls reflect a move away from the previously open immigration policies that significantly contributed to American economic growth.

Corporatization of American Universities

Transitioning to the second major topic, Wolff discusses how elite American universities have evolved into corporate entities, subject to political and economic pressures. He attributes increased government attacks on these institutions to their corporatized nature, which prioritizes financial growth over educational integrity.

Notable Quote:

“They decided to become bigger and richer and to do many things other than educate. So they got into bed with corporations to partner and they got into bed with the government to partner and they took a lot of money to grow rich and be big corporations.” [00:24:55]

Key Points:

• Government Funding Cutbacks: Under Trump, universities, especially elite ones like Harvard, Stanford, and Yale, faced threats of reduced government funding unless they aligned their ideologies with conservative and Republican values.
• Loss of Independence: The corporatization has led universities to rely heavily on corporate and government partnerships, compromising their independence and educational mission.
• Future of Education: If universities do not revert to their foundational purpose of education, they risk increased governmental control and further corporatization.

Interview with Professor Geert Dont

In the second half of the episode, Richard Wolff engages in a discussion with Professor Geert Dont, Associate Professor and Department Chair of Economics at the John Jay College of Criminal Justice, part of the City University of New York (CUNY).

Economics Department at John Jay

Professor Dont elaborates on the unique nature of the Economics department at John Jay, highlighting its departure from traditional conservative economics programs.

Notable Quote:

“We were able to recreate an economics program from scratch... we really have a focus of really working class students.” [17:43:25]

Key Points:

• Heterodox Approach: The department emphasizes radical economics, focusing on the economics of crime, the justice system, and race.
• Working-Class Focus: Unlike many institutions, John Jay caters predominantly to working-class students, with over 70% being Black and Latino, fostering a diverse and socially conscious academic environment.
• Master's Program: The department offers a highly regarded master's program in radical economics, attracting activists, professionals seeking career changes, and international students. Graduates have successfully entered various sectors, including government, nonprofits, and PhD programs.

Impact of Trump's Policies on Universities

Professor Dont discusses the tangible effects of the Trump administration's policies on higher education, particularly on institutions like John Jay.

Notable Quote:

“We're expecting to lose those funds for institutions like that because... minority or diversity or women are not allowed anymore, you know, are banned words now.” [24:11:10]

Key Points:

• Grant Funding Restrictions: New regulations prohibit the use of terms like "minority," "diversity," or "women" in grant applications, jeopardizing funding for institutions serving predominantly minority populations.
• Administrative Caution: University leadership, exemplified by John Jay’s President Carol Mason, strives to avoid controversial topics to remain under the radar and secure necessary funding.
• Broader Repression: These funding challenges are part of a broader pattern of repression targeting diverse and inclusive educational practices.

Student Loan Issues

The discussion shifts to the escalating student loan crisis and government measures to enforce loan repayments.

Notable Quote:

“We should just be able to go to, you know, continue their higher education for free.” [28:36:20]

Key Points:

• Government Enforcement: The Trump administration's aggressive stance on student loan repayments is creating widespread anxiety among students and graduates alike.
• Impact on the Economy: Professor Dont argues that forcing extensive loan repayments will have detrimental effects on the U.S. economy by reducing disposable income and consumer spending.
• Decommodification of Education: The current crisis underscores the need to eliminate tuition fees and student loans, advocating for free higher education as seen in many European countries. This approach would alleviate financial burdens and make education more accessible to all.

Differences in Student Demographics: At John Jay, the predominance of Pell Grants and tuition assistance from New York State means that most students do not incur student loan debt. This contrasts with other institutions where student loans are a significant barrier to education, highlighting different experiences based on socio-economic backgrounds.

Conclusion

Richard Wolff concludes the episode by emphasizing the urgent need to understand the ramifications of economic nationalism and the corporatization of higher education. He underscores the importance of advocating for policies that prioritize educational accessibility and economic equity over corporate and political interests.

Final Remarks:

“I hope you found this report from the ground of higher education as important as I did. And I look forward, as always, to speaking with you again next week.” [31:34:00]

Episode Highlights:

• 00:00:35 — Introduction to the decline of libertarianism and neoliberalism.
• 00:14:30 — Discussion on Trump's role in dismantling economic libertarianism.
• 00:24:55 — Examination of the corporatization of universities.
• 17:43:25 — Introduction of Professor Geert Dont and the Economics department at John Jay College.
• 24:11:10 — Impact of Trump's policies on university funding and diversity initiatives.
• 28:36:20 — Analysis of the student loan crisis and its broader economic implications.
• 31:34:00 — Conclusion and final thoughts on the state of higher education.

This episode provides a comprehensive analysis of the shifting economic ideologies in the United States and their profound impact on higher education. Through poignant commentary and expert insights, Wolff offers listeners a deep understanding of the challenges facing both the economy and educational institutions today.