Economic Update with Richard D. Wolff

Episode: "Unaffordable Housing"

Date: February 24, 2022
Guest: Rob Robinson, community organizer and housing activist

Episode Overview

This episode of Economic Update delves into the growing unaffordability of housing in the United States, exposing systemic issues that go beyond recent crises and lie at the intersection of capitalism, public policy, and social narratives about wealth and homeownership. Economist Richard D. Wolff first provides several "economic updates" on major trending topics—opioid overdoses, K-12 education, inflation, and the Canadian trucker convoy—before welcoming Rob Robinson. Robinson, a leading voice in housing activism and a formerly homeless New Yorker, discusses the deep roots and urgent challenges of the housing crisis, debunks myths around wealth-building through homeownership, and explores both global and local solutions.

Key Discussion Points & Insights

Opening Economic Updates

1. Opioid Overdose Crisis (00:10–04:15)

• Record Overdoses: U.S. recorded over 92,000 opioid deaths in 2021; projected to surpass 100,000.
• Profit Over People: Insurance companies' profit-driven practices worsen the crisis, such as demanding prior authorization before treating overdosed patients.
  • Quote: “When profit governs, you get a medical system that can't work. It didn't work for Covid, and it's not working for the opioid catastrophe that we are living through.” — Richard D. Wolff (03:41)

2. Public Education Under Strain (04:15–05:50)

• Massive loss in K–12 teachers (6.8%) and support staff during the pandemic.
• Lack of systemic support, with budgets prioritized elsewhere.

3. Inflation and its Real Causes (05:50–10:40)

• Employers set prices, raising them to boost profits—not primarily due to rising wages.
• Corporate profits soar during crises while working people’s income stagnates.
  • Quote: “Employers are the ones who set prices. Employers are 1% of the American people, if that much. We allow them to set prices. And you know what they're doing? They're raising them. And you know why they're doing it? ... to make more profits.” — Richard D. Wolff (06:16)

4. Trucker Convoy & Protest Rights (10:40–14:45)

• Wolff empathizes with workers protesting oppressive conditions but denounces cooptation by far-right groups.
• Advocates for systemic solutions: additional medical facilities for unvaccinated individuals and solidarity among left groups for genuinely better health infrastructure.

Main Interview: Rob Robinson on the Housing Crisis

The Scope and Depth of the Crisis (15:04–16:37)

• The U.S. housing crisis is “an ongoing storm,” particularly for people of color and low-income families.
• The notion that housing automatically leads to wealth is a “myth”—COVID “pushed to the forefront the number of people that are underwater.”
  • Quote: “We've always had a housing crisis in this country, and particularly amongst people who were in the lower economic scale… Housing is the way to wealth. Owning a home is the way to wealth. I think what we've seen, COVID has exacerbated an ongoing issue.” — Rob Robinson (15:46)

International Lessons – The Vienna Model (16:37–17:53)

• Vienna, Austria: Half of all housing is public or publicly subsidized, with legal rent caps at 20–25% of income.
• Vienna’s approach prevents the U.S.-style crisis; U.S. policies fall short.

Policy Directions and Solutions (17:53–19:13)

• Public/social housing and community land trusts are proven, but underutilized in the U.S.
• Emphasizes land de-commodification—removing land from the speculative market—to control housing costs.
  • Quote: “The biggest problem... is the commodification of land and housing. Until we can remove land from a market system, that's the only way that we're going to be able to maintain the cost of housing.” — Rob Robinson (18:36)

The Limits of the Market (19:13–21:56)

• Housing for profit means profit, not people, sets priorities.
• The narrative that “housing = wealth-building” urgently needs to be challenged, especially in communities of color.
• Education and new narratives are essential for systemic change.

Racial Inequality and Homeownership (21:56–25:23)

• African Americans—after facing exclusion—were most exposed to predatory lending and first to lose homes post-2008.
• Redlining and modern technology (algorithmic lending) continue discriminatory mortgage practices.
  • Quote: “Just because we don't have maps and banks with red lines along them anymore doesn't mean the person can't go on a computer screen and get the same type of information… Technology a little bit different… but they have computer maps right now.” — Rob Robinson (23:12)
• Principal reduction fought for after 2008 only offered temporary relief; root issues persist until market-driven housing is replaced.

Corporate Land Grabs (25:23–26:58)

• Private equity (e.g., Blackstone) and hedge funds now dominate housing markets, buying up foreclosures and converting them to rentals, creating competition homeowners can’t win.
  • Quote: “Private equity funds and hedge funds have been moving into the housing business in a big way... You have a new competitor… an enormous investor backed by huge, big banks...” — Richard D. Wolff (25:23)
  • Quote: “Blackstone Equity Partners leads that parade. They own the most housing in the world... Let's name and shame whenever we can.” — Rob Robinson (26:41)

Creative Solutions to Vacant Properties (26:58–28:30)

• There are tens of thousands of vacant/abandoned buildings in major U.S. cities.
• Activists push to repurpose these into public housing, which could provide dignified shelter at a lesser cost than temporary housing/shelters.
  • Quote: “How can we take these vacant spaces and create permanent new housing?... We really need to push these types of ideas.” — Rob Robinson (27:33)

Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|---------|-------------------------------------| | 03:41 | Wolff | “When profit governs, you get a medical system that can't work. It didn't work for Covid, and it's not working for the opioid catastrophe that we are living through.” | | 06:16 | Wolff | “Employers are the ones who set prices… they're raising them… to make more profits.” | | 15:46 | Robinson | “We've always had a housing crisis in this country... Housing is the way to wealth. Owning a home is the way to wealth... COVID has exacerbated an ongoing issue.” | | 18:36 | Robinson | “The biggest problem... is the commodification of land and housing. Until we can remove land from a market system, that's the only way… to maintain the cost of housing.” | | 23:12 | Robinson | “Just because we don't have maps and banks with red lines along them anymore doesn't mean the person can't go on a computer screen and get the same type of information.” | | 25:23 | Wolff | “Private equity funds and hedge funds have been moving into the housing business in a big way... You have a new competitor… an enormous investor backed by huge, big banks...” | | 26:41 | Robinson | “Blackstone Equity Partners leads that parade. They own the most housing in the world... Let's name and shame whenever we can.” | | 27:33 | Robinson | “How can we take these vacant spaces and create permanent new housing?... We really need to push these types of ideas.” |

Timestamps for Key Segments

• Opioid Crisis & Healthcare Profiteering: 00:10–04:15
• Public Education Crisis: 04:15–05:50
• Inflation & Corporate Profits: 05:50–10:40
• Trucker Convoy & Workers’ Protest: 10:40–14:45
• Interview with Rob Robinson (Unaffordable Housing): 15:04–28:30
  • State of U.S. Housing Crisis: 15:04–16:37
  • Vienna Model/Public Solutions: 16:37–17:53
  • Commodification and Land Trusts: 17:53–19:13
  • Challenging Wealth Narratives: 19:13–21:56
  • Racial Impact/Post-2008 Crisis: 21:56–25:23
  • Private Equity Takeover: 25:23–26:58
  • Vacant Buildings as Public Housing: 26:58–28:30

Tone & Style

Consistent with Richard D. Wolff’s passionate, critical perspective on economic issues, and Rob Robinson’s activist, education-focused approach. The conversation is candid, urgent, and deeply concerned with systemic justice and workable, community-centered solutions.

Summary for New Listeners

This episode paints an unflinching picture of the U.S. housing crisis as both a result of deep-rooted systemic issues and recent economic shocks. The key takeaway: solutions require not just tweaking policy, but shifting away from for-profit, speculative models toward community ownership, public investment, and a fundamental rethinking of land and housing as human rights—not commodities. The discussion with Rob Robinson provides both sobering context and hopeful, practical alternatives, making the case for public housing, land trusts, and direct activism to reclaim control over one of life’s most basic needs.