Economic Update with Richard D. Wolff

Episode: Ukraine, Race and Class
Date: March 17, 2022
Host: Richard D. Wolff | Guest: Adolph Reed, Jr.

Overview

This episode of Economic Update focuses on transformational shifts in global economics prompted by the Ukraine crisis, the evolving dynamics of world capitalism, and the intersection of race and class in American society. In the first half, Richard D. Wolff analyzes the Ukraine crisis, sanctions, inflation, and the broader implications for global economic order. The second half features an in-depth interview with political scientist Adolph Reed, Jr., discussing the enduring impact of Jim Crow, resurgence of white supremacy discourses, and the limits of identity-based movements in addressing structural inequality.

Key Discussion Points and Insights

1. Global Economic Reorganization and the Ukraine Crisis

[00:11–16:20]

• Reordering of World Power:
  • Richard Wolff references Michael Gordon's Wall Street Journal article, agreeing that we are witnessing a fundamental reorganization of the global economic and political order—but argues it's not driven solely by Russia or China, as often claimed, but is a collective, historical process involving all major powers.
    • Notable quote:
      • “Something as fundamental as the world order is always a collective project, whether or not the people involved admit it or even see it.” (A, 02:11)
• Evolution of Capitalism:
  • The locus of capitalism shifts over time—once centered in New England or the Midwest, now moving eastward especially to China, India, and Brazil. The U.S. dominance is waning as global capitalism seeks new centers of growth.
  • Wolff warns:
    • “The dominating role of the United States is over. We've had our shot… It's over now. Capitalism is doing what it has always done. It's moved on.” (A, 07:47)
• European Role and the German Pivot:
  • European countries, especially Germany, struggle to find an independent role between U.S. and rising eastern powers. Germany’s recent decisions (Nord Stream pipeline, rearmament) reflect complex strategic dilemmas and rapid shifts that breed instability.
• Ukraine and Global Inflation:
  • The Ukraine conflict intensifies global inflation. More than genuine supply chain issues, the crisis gives businesses “cover”—an excuse to raise prices en masse without competitive fear:
    • “We’re going to see the events in Ukraine and the turmoil used as an excuse... That will make it easier for prices to rise.” (A, 13:41)
• Economics of Sanctions:
  • Wolff highlights Nicholas Mulder’s book, The Economic Weapon: The Rise of Sanctions as a Tool of War, emphasizing that economic sanctions can be even more devastating than conventional military action.
  • “The irony, says Mulder, is that the damage you do to the mass of people in the middle and the bottom lasts longer than any bomb does, lasts longer than the military wars do. It's not less, it's worse.” (A, 15:23)
  • Sanctions exacerbate class divides as economic shocks are pushed down the hierarchy, harming the vulnerable most.

2. Interview with Adolph Reed, Jr.: Jim Crow, Race, and Class

[16:36–28:06]

A. The Enduring Afterlife of Jim Crow

• Structural Legacies & Misconceptions:
  • Reed argues that current Southern political structures directly stem from Jim Crow. However, popular understandings oversimplify this legacy by focusing solely on bigotry rather than broader institutional arrangements:
    • “The only thing that hasn't changed about Black politics since 1965 is how we think about it.” (B, 17:14, quoting Willie Leggett)
    • The real issue is institutional and class structures, not merely attitudes or “racism” as a catch-all concept.
• White Supremacy’s Institutional Purpose:
  • Jim Crow was about explicit white supremacy, especially as a reaction to the defeat of populist multiracial coalitions and systematic Black disenfranchisement (as well as many poor whites).

B. The “Resurgence” of White Supremacy

• Ideological Persistence, Not Novelty:
  • Reed cautions against viewing today’s white supremacy as a sudden resurgence. Instead, it is a persistent set of narratives used for scapegoating when economic systems fail to deliver for workers:
    • “White supremacy is an ideology… there as a set of scapegoating discourses… The farther along [neoliberalism] goes, the more and more people who are going to be tossed onto the ash heap. And if we aren't there to provide them with plausible explanations… then these right wing forces… are going to be there to take advantage of it.” (B, 21:42)
  • Both major U.S. parties, not just the right, are implicated in this process through neoliberal policies.

C. The Limits of Identity-Based Politics

• Leftist Strategy and Class Unity:
  • Reed critiques identity-based movements, arguing they often align more with elite interests than with those of the working class:
    • “Identity based movements or discourses aren’t our allies. They’re actually agents of the other side. I mean, they’ve got much more in common with the ruling class agenda than they have with the working class agenda.” (B, 26:52)
  • He calls for a rediscovery of working-class, class-based organizing to overcome neoliberal legitimacy crises and fight the rise of authoritarianism.

D. Critical Juncture for Political Change

• Fork in the Road:
  • “We may have gotten to a point… at which neoliberalism has exhausted its capacities for delivering enough to enough of the population to maintain its legitimacy as a political system. And if that's happened, then there are only two ways to go… [toward] authoritarianism of fascism… [or] a movement anchored in the working class that can restore popular faith in public action…” (B, 23:36)

Notable Quotes & Memorable Moments

• On Global Power Shifts:
  • “The 19th was the rise of the British Empire, and the 20th was the decline of the British Empire and the rise of the American Empire... That's been the story for a very long time.” (A, 03:10)
• On Inflation and Corporate Cover:
  • “What a big event like the Russian activity in the Ukraine and the response of the rest... does is give all businesses cover. It gives them an excuse. Everyone is raising their prices because their finances are in the air or there's a supply chain disruption... nobody has to hesitate.” (A, 13:25)
• On the Effect of Sanctions:
  • “Sanctions… allow their system to shift the burden of your economic warfare onto those least able to protect themselves. It has devastating effects on, on the most innocent in the culture.” (A, 15:57)
• Adolph Reed on Jim Crow Narratives:
  • “The only thing that hasn't changed about Black politics since 1965 is how we think about it.” (B, 17:14)
• On Racism’s Place in Discourse:
  • “Racism has displaced the workings of institutions… So that people are much more inclined now… to sort of see an unbroken line or chain of racist inequality from slavery through the Jim Crow era to last week. But those are different regimes, different social orders.” (B, 18:25)

Timestamps for Important Segments

• 00:10–02:11: Wolff introduces the episode’s theme and context in global reordering.
• 05:00–09:30: Discussion on the evolution of global capitalism; the decline of U.S. primacy.
• 10:50–13:45: Impact of Ukraine crisis on inflation, market behavior, and corporate opportunism.
• 13:45–16:20: The economics and hidden violence of sanctions.
• 16:36–19:53: Adolph Reed, Jr. on the real legacies of Jim Crow and the misdirection of current race politics.
• 19:53–23:36: Reed addresses “white supremacy” as ideology, scapegoating, and neoliberal complicity.
• 23:36–27:47: Limits of identity politics; crossroads in U.S. political economy; call for class-based organizing.
• 27:47–28:06: Reed agrees to return for a future discussion on the transformation of the U.S. left.

Conclusion

This episode offers a sweeping critique of current global and U.S. events through a historical, economic, and class-conscious lens. Wolff dissects shifts in global capitalism and the mechanisms of economic warfare, while Adolph Reed, Jr. delivers a challenging analysis of the persistence of racial regimes, the ideological function of white supremacy, and the pitfalls of identity-focused politics. Ultimately, both argue for a renewed, class-based movement to confront both global and domestic crises.