Economic Update with Richard D. Wolff

Episode: The U.S. As A 'Traumatized' Society (January 6, 2026)

Episode Overview

In this episode, Richard D. Wolff delves into the notion of America as a "traumatized society," critically examining both macroeconomic shifts and personal psychological impacts in the context of late-stage capitalism and U.S. imperial decline. Wolff’s discussion is anchored by an extensive interview with author and political analyst Jared Yates Sexton, whose work focuses on the connections between societal malaise, trauma responses, and the collective urge for transformation. The conversation addresses not only the broader economic conditions but also the lived, emotional realities shaping public engagement and the burgeoning desire for systemic change.

Key Discussion Points

1. Global Labor Movements and Capitalist Contradictions

• Amazon Strikes and Unionization (00:20 – 03:30):
  • Wolff recounts Black Friday strike actions led by Amazon workers in Germany, connecting these to a global wave of organizing under the "Make Amazon Pay" banner.
  • Highlights similar moves in Spain’s Zara Corporation, positioning these as responses to “Unbearable conditions of working at Amazon…to demand what workers have always: decent lives, decent pay, decent working conditions.” (01:12)
• Unionization as Symptom and Solution:
  • Rising union activity is interpreted as “a reaction to the failure of the capitalist system globally to live up to the promises it has made, to the commitments it has entered into and then betrayed.” (02:20)

2. Financial Crisis in Higher Education (03:41 – 09:43)

• The New School University's Cuts:
  • Wolff shares an insider perspective on drastic measures at The New School—cuts to salaries, pensions, hiring freezes, and a halt on new PhD admissions (except psychology).
  • These are framed as “the handwriting is on the wall. This is a university announcing its own end.” (06:05)
• Broader Implications:
  • Higher education’s jeopardy is connected to wider societal neglect—a university as “a commitment of a society to its own future.” (08:16)
  • Wolff warns: “This is a system that is dying. This is a country that is going through the loss of its empire and now the decline of its whole system.” (09:02)

3. Geopolitical Shifts and U.S. Retrenchment (09:45 – 14:40)

• Official U.S. Policy Changes:
  • Wolff analyzes a December 2025 security document signaling America’s retreat from the role of “world’s policeman,” reflecting “our president tell[ing] us, defending the Western Hemisphere, turning in on what is to become Fortress America.” (11:20)
• Impact on Europe and Global Alliances:
  • Critiques European leaders for acquiescing to U.S. policy by “buy[ing] American natural gas instead of the cheaper Russian option and to invest hundreds of billions of dollars in the United States.” (13:08)
  • Highlights growing European resentment and public anger.

4. America as a ‘Traumatized’ Society: The Interview with Jared Yates Sexton

a. Widespread Psychological Distress (17:13 – 20:18)

• Sexton identifies a “historic level of depression, anxiety, loneliness, uncertainty about the future,” correlating these with the “predatory stage of capitalism” and decline of American power.
• Quote: “People are having an extremely hard time now that we are at what is the decline of the American empire and at this advanced predatory stage of capitalism.” (19:02)

b. Awareness and the Prospect for Change (20:18 – 21:56)

• Sexton is cautiously optimistic: “It feels now as if even talking about this, even having these conversations and people seeking them out, it feels like the energy is there for something different.” (21:37)

c. Resignation vs. Rebellion (21:56 – 24:14)

• Dissects societal trauma responses (“fight, flight, fear, fawn and freeze”), mapping psychological states onto political realities.
• Sexton likens current U.S. experience to an “abusive or dysfunctional household,” stressing the need for clear-eyed confrontation: “…we at least need to have an actual logical, informed conversation about what’s happening as opposed to continuing down this self destructive sort of fantasy, fairy tale life…” (23:43)

d. Pathways to Resistance and Solidarity (24:14 – 26:34)

• Emphasizes organizing through vulnerability and connection:
  • “Organizing political resistance or for political change is about intimacy. It’s about being able to talk to another person, to talk about your own experience.” (24:57)
• Points out the psychological manipulation inherent to capitalism: “There’s not something wrong with us. It’s always been psychological and emotional manipulation.” (25:42)

5. Observable Signs of a Shift (26:34 – 29:11)

• Sexton has witnessed a move from “keeping our heads down” to open, desperate discussion—“I can’t keep doing this.”
• Notes tangible changes in narrative and organizing, particularly with issues like SNAP benefits and poverty.

6. Newfound Interconnectedness and Solidarity (29:11 – 30:58)

• Wolff evokes grassroots defense of immigrants—often by those not directly affected—as an example of “a remarkable decision by people who are not themselves the target to do something about a system they find intolerable.” (29:49)
• Sexton sees this as evidence of “a burgeoning sense of interconnectedness that has been missing for so long.” (30:14)

Notable Quotes & Memorable Moments

• On Union Action:
  • Wolff (02:11): “Unionization is spreading all over the world. It’s a reaction to the failure of the capitalist system globally to live up to the promises it has made...and then betrayed.”
• On University Austerity:
  • Wolff (06:05): “This is a university announcing its own end...nothing good is going to happen from this.”
• On the Shift in National Psyche:
  • Sexton (19:02): “People are having an extremely hard time now that we are at what is the decline of the American empire and at this advanced predatory stage of capitalism.”
• On Breaking the Spell of Denial:
  • Sexton (23:37): “We at least need to have an actual logical, informed conversation about what’s happening as opposed to continuing down this self destructive sort of fantasy, fairy tale life...”
• On Action through Solidarity:
  • Sexton (24:57): “Organizing political resistance or for political change is about intimacy. It’s about being able to talk to another person, to talk about your own experience.”
• On Psychological Manipulation:
  • Sexton (25:42): “There’s not something wrong with us. It’s always been psychological and emotional manipulation.”
• On Interconnectedness:
  • Sexton (30:14): “People are starting to look at that, or what has happened in Gaza or what’s happening out on the streets and they look and they see themselves.”

Important Timestamps

| Time | Segment Description | |-----------|--------------------------------------------------------------| | 00:20-03:30 | Labor strikes at Amazon/Zara and the global rise of unionization | | 03:41-09:43 | Crisis at The New School and the collapse of U.S. higher ed | | 09:45-14:40 | U.S. turning inward, imperial decline, European frustration | | 17:13-20:18 | Sexton: Mental health crisis, trauma, and U.S. politics | | 21:56-24:14 | Trauma responses and confronting systemic abuse | | 24:56-26:34 | Organizing through intimacy and challenging capitalist narratives| | 29:11-30:58 | Wolff & Sexton on solidarity for immigrants and the return of interconnectedness |

Conclusion

Richard Wolff and Jared Yates Sexton offer a powerful diagnosis of American precarity and collective trauma in this episode. They link global movements and local experiences, illuminating how economic pressures erode both institutions and individual psyches, but also engender new possibilities for solidarity, resistance, and transformation. The episode closes with a forward push: to seek honest conversations, foster genuine connection, and persist in organizing against a system that no longer serves collective well-being.