Economic Update with Richard D. Wolff
Episode: The Human Agenda
Date: October 31, 2019
Host: Richard D. Wolff
Guest: Richard Hobbs, Executive Director of Human Agenda
Episode Overview
In this episode of "Economic Update," host Richard D. Wolff discusses the intersection of current events and systemic economic challenges, focusing on issues ranging from international relations to wealth inequality and corporate influence. The main segment features an in-depth interview with Richard Hobbs, who shares the mission of Human Agenda and discusses the practical and visionary potential of worker-owned cooperatives in creating a humane, participatory, and equitable economic system.
Key Discussion Points and Insights
1. NBA, China, and Historical Ignorance
[00:10–08:32]
- Incident Overview: The Houston Rockets' GM, Darrell Morey, tweeted in support of the Hong Kong protests, triggering backlash from China—highlighting the NBA’s financial dependence on the Chinese market.
- Deeper Analysis: Wolff points out America's repeated misunderstanding of Chinese history and priorities, comparing the NBA's mishap to the U.S. government's ongoing trade war with China.
- Quote:
“You do something over there that questions their unity, their integrity as a nation, you're going to get blowback of the sort that will make you very sorry, as the NBA surely is for having not understood Chinese history…” — Wolff [07:42]
- Quote:
- Historical Lessons: Wolff stresses the importance of national unity in Chinese history and the consequences of disregarding this core value in both international diplomacy and corporate affairs.
2. Wealth Inequality & The Nobel Prize in Economics
[08:32–11:43]
- Nobel Highlights: Critiques the Nobel committee for honoring incremental approaches to poverty alleviation, contrasting it with the staggering wealth gains of the world’s richest families.
- Stark Statistics:
- The 25 richest families combined own $1.4 trillion, with a 24% increase in their average wealth last year.
- Systemic Roots: Wolff argues that tackling poverty demands confronting the economic structures that cause wealth accumulation at the top.
- Quote:
“A serious approach to the problem of poverty requires facing a system that is producing ever greater extremes of wealth and poverty.” — Wolff [10:30]
- Quote:
3. Google and Political Influence through Philanthropy
[11:43–13:58]
- Revelation: Google donates to multiple organizations, including climate change deniers, often for reasons unrelated to climate but rather to avoid regulation for their own industry.
- Dynamics of Influence:
- Charitable giving is used strategically by large corporations to create alliances that serve overlapping interests (e.g., deregulation).
- Quote:
“That’s how these groups that work against many of the interests many of you have, that’s how they fund themselves—by doing some other favor for another donor.” — Wolff [12:54]
4. Auto Loan Defaults and the Lingering Effects of 2008
[13:58–15:32]
- Auto Loan Trends: Increased defaults, particularly for older used cars, signal deep financial distress among Americans.
- Many must borrow to buy even 8–10-year-old used vehicles.
- The 2008 financial crash led to reduced new car production, now resulting in shortages and higher prices for aging vehicles.
- Broader Significance:
- Individual tragedies continue as a consequence of systemic instability and insufficient public transportation.
Main Interview: Richard Hobbs & The Human Agenda
5. Introduction to Human Agenda
[16:31–20:14]
- Mission & Method: Human Agenda examines objective social conditions, surveys human needs, and builds a vision for a cooperative, equitable society.
- Vision’s Five Parts:
- Universal participation in care work
- Opportunities for all to contribute with living wages and reduced work hours
- Access to lifelong learning
- Resources and time for democratic participation
- Time for self-realization
- Value-Based Approach:
- "Our economic system is based upon exploitation, our financial system is based on speculation and our political system is based on corruption… We need new values.” — Hobbs [19:00]
- Core Values: Democracy, Equity, Cooperation, Kindness, Sustainability
6. Overcoming Skepticism & Building Alternatives
[20:14–22:23]
- Reality Check: Hobbs believes more people now accept the need for fundamental change, especially in Silicon Valley.
- Homelessness, overwork, and alienation are creating openness to alternatives.
- “People are honestly looking for alternatives. Right now, I believe that Silicon Valley is the poster child of overwork.” — Hobbs [21:01]
- Growing Activism:
- Since the Trump presidency, there has been a surge in local organizing and alternative initiatives.
7. Why Worker Cooperatives?
[22:23–23:58]
- Worker Co-ops as Agents of Change:
- Democratic: One worker, one vote
- Equitable: Profits shared; narrow wage differentials (as low as 1:1)
- Cooperative: Emphasize collective decision-making
- Kind: Emphasis on mediation and non-coercive environments
- Sustainable: Modest, fair income -> modest, responsible consumption
- "They have the lowest disparity between highest and lowest pay... that enormous disparity doesn't exist in cooperatives." — Hobbs [22:56]
8. Lessons from Mondragon and Cuba: Generational Change
[23:58–28:28]
- Three Generations In:
- Longstanding cooperative environments (Mondragon in Spain and Cuba since the revolution) facilitate a fundamental shift in human nature and social relations.
- In Cuba, recent laws have enabled ~400 non-agricultural service/industrial co-ops, tripling wages and increasing worker motivation.
- "After people have been living in a cooperative environment for 60 years... I see that people are fundamentally different." — Hobbs [24:40]
- Countering Capitalist Myths:
- Workers, as owners, make wage decisions responsibly, understanding the need to sustain their enterprises.
- “They also understand that they can’t provide goods or services beyond the income level of the average Cuban, which is very low.” — Hobbs [27:09]
- Cuban Specifics: Health and education are free, most own their homes, and despite low incomes, social cohesion is strong.
Notable Quotes & Memorable Moments
- “You want to do something about poverty, why don’t you deal with that? Not little incremental programs in Kenya and India... But a serious approach... requires facing a system that is producing ever greater extremes of wealth and poverty.” — Wolff [10:17]
- “We like to say that our economic system is based upon exploitation, our financial system is based on speculation and our political system is based on corruption. We need new values.” — Hobbs [19:00]
- “Worker co-ops are democratic. One worker, one vote means that they have a very high participation rate inside their own workplace.” — Hobbs [22:32]
- “After people have been living in a cooperative environment for 60 years... I see that people are fundamentally different.” — Hobbs [24:40]
Key Timestamps for Important Segments
- 00:10 — NBA, China, and U.S. ignorance of Chinese unity/historical context
- 08:32 — Wealth gains of richest families vs. poverty solutions
- 11:43 — Google’s “philanthropy” and regulatory evasion
- 13:58 — Used auto loan defaults; legacy of 2008 crash
- 16:31 — Human Agenda’s vision and organizing principles (Hobbs)
- 20:50 — Confronting skepticism, change since 2016
- 22:31 — Worker co-ops: values and lived experiences
- 24:37 — Mondragon, Cuba, and generational impact of cooperation
Episode Tone & Language
The episode features Wolff’s trademark clear, direct, yet passionate tone, rich with historical context and pointed systemic critique. Hobbs’ contributions are methodical, visionary, and optimistic, emphasizing practical steps toward systemic change rooted in human needs and cooperative values.
Final Takeaway
This episode masterfully bridges analysis of current affairs with radical, actionable alternatives. It offers both a macro-level critique of systemic issues and an inspiring micro-level look at real-world experiments in democracy and cooperation—with worker cooperatives positioned as a tested pathway toward a more equitable and humane economy.