Economic Update with Richard D. Wolff

Episode: US Labor battles Covid-19 and Politics

Date: November 12, 2020
Host: Richard D. Wolff
Guest: Bob Henley

Episode Overview

In this episode, Dr. Richard D. Wolff provides a critical analysis of recent US political developments and their deep economic implications, spotlighting labor struggles amid the Covid-19 pandemic. The first half dissects the results of significant ballot measures and labor-related votes across the country, the growing gig economy, and debates on China's economic rise. The second half features investigative labor reporter Bob Henley discussing the threats facing essential workers, especially around healthcare and the attack on public services, under the shadow of Covid-19.

Key Topics & Insights

Election Results: Labor & Economic Measures

Timestamps: 00:15 – 13:45

• Florida Minimum Wage Increase:

  • Florida voters raised the state minimum wage to $15/hour, even as the state voted for Trump.
  • Positive for low-wage workers, particularly in agriculture and service, but delayed until 2026, which means inflation will erode its real value.
  • Quote:

    “The bad news about it is that the 15 doesn't kick in until 2026…But it’s better than what existed before. It’s a plus.” (Wolff, 01:35)

• California Proposition 22 – Expansion of Gig Economy:

  • Proposition 22 passed, allowing companies like Uber and Lyft to classify drivers as contractors, not employees, stripping them of protections and benefits.
  • Seen as a major setback for the American workforce as legal employment protections become increasingly undermined.
  • Quote:

    “This is an attempt to roll back the history of working people. 150 years in this country...Make no mistake.” (Wolff, 05:13)

  • Warns that this model is likely to spread to other states.

• Portland, Maine: Progressive Victories:

  • Progressive coalition and Democratic Socialists succeeded in passing rent control, establishing a rent commission, and raising the minimum wage (with emergency pay multipliers).
  • Despite being outspent $46,000 to $650,000 by business interests, grassroots efforts won.
  • Quote:

    “People beat money.” (Wolff, 12:48)

China’s Economic Growth & Myths

Timestamps: 13:46 – 15:30

• Addresses the argument that China’s post-1970s rapid growth resulted only from adopting capitalism.
• Wolff argues the foundations were established during Mao’s time, despite major historical devastation and reconstruction efforts.
• Critiques the simplistic view that only the private (capitalist) sector deserves credit for China’s achievements.
• Highlights that China’s model combines state control with private enterprise—what they mean by “socialism.”
• Quote:

  “The idea that it’s only the capitalist sector that gets the credit and not the whole society is pure ideological nonsense.” (Wolff, 15:28)

The Impact of Covid-19 on Labor & Public Health (with Bob Henley)

Timestamps: 15:35 – 28:43

ACA, Essential Workers, and Supreme Court Threats

• ACA (Affordable Care Act) potentially on the chopping block via Trump administration lawsuit, creating risk for millions, especially essential frontline workers (healthcare, transit, public safety), who are most exposed to Covid.
• Many essential workers already have or will develop pre-existing conditions related to Covid, risking future healthcare access.
• Quote:

  “This is, you put your finger on probably the most underreported aspect of the entire Affordable Care Act debate throughout the election…” (Henley, 16:46)

  “We’re talking about potentially millions of individuals who are going to be permanently disabled.” (Henley, 20:41)

Systemic Devaluation of Essential Workers

• Society’s treatment of frontline workers reveals deep disregard: low pay, lack of long-term care, exposure risks, political neglect.
• Public health infrastructure is under extreme strain, yet services and workers face erosion from both budget crises and anti-public sector ideology.
• Quote:

  “How a society treats the frontline essential workers…tells you a lot about what a society really means when it values human life.” (Wolff, 21:19)

Right-to-Work States & Underreporting of Losses

• In many “right-to-work” (anti-union) states, essential workers are dying at higher rates, with minimal acknowledgment or compensation.
• Efforts are underway in the labor movement to memorialize these losses and demand accountability.

Longstanding Assault on Public Services

• Henley connects Trump-era attacks to a longer history (back to Reagan) of dismantling public services, fueled by right-wing think tanks.
• The current economic depression doubles the strain as more citizens need public services, yet revenue shortfalls and political opposition leave public services gutted.
• Quote:

  “…the engine room of the civil service at the federal, state, and, depending on where you live…even the city … have gone about the business of dismantling [it].” (Henley, 24:06)

Labor Response and Organizing

• Unions provide superior protections (paid sick leave, PPE), and there’s evidence of rising awareness and radicalization among workers.
• Union households in Republican-leaning areas still show support for Trump, posing challenges for labor solidarity.
• Quote:

  “What is really stark is what’s happening in so many places where … essential workers, particularly in the food sector and distribution, aren’t [represented by unions] ... consciousnesses are being raised and people are being radicalized.” (Henley, 27:08)

Notable Quotes & Moments

• On the Prop 22 Gig Economy Threat:
  “This is a defeat for the entire working class … What Uber and Lyft got was an exemption—they don’t have to protect their workers ... by the simple device of calling them something else.”
  — Wolff, 02:54

• On Progressives Beating Money in Maine:
  “Look what America can do…People beat money.”
  — Wolff, 12:34

• On the Meaning of Socialism in China:
  “That’s what the Chinese mean by socialism … a place for private capitalism, no doubt, under the control … of a powerful state apparatus.”
  — Wolff, 15:16

• On the Trauma Facing Essential Workers:
  “We’re talking about potentially millions of individuals who are going to be permanently disabled and then another chunk of the workforce ... where women have lost at least a generation of workforce participation.”
  — Henley, 20:41

• On the Ongoing Assault on Public Services:
  “What happened is the Heritage Foundation and the Cato Institute, these ideological fringe groups, had a seat at the table ... along with commercial sector lobbyists … they have gone about the business of dismantling the engine room of the civil service…”
  — Henley, 24:06

Important Timestamps

• Florida & California Ballot Measures: 00:15 – 08:30
• Portland, Maine’s Progressive Ballot Victories: 09:00 – 13:00
• China’s Economic Growth Discussion: 13:45 – 15:30
• Bob Henley on Covid, Labor, and ACA: 15:36 – 27:54
• Labor Organizing & Worker Protections: 27:08 – 27:54

Tone and Style

Wolff’s delivery is straightforward, passionate, and analytical, frequently drawing on historical context and class struggle. Henley’s contributions are data-driven, empathetic, and focused on the urgency of current labor crises, interwoven with long-term systemic insights.

Summary

This episode critically examines how recent political decisions, historical trends, and the ongoing Covid-19 pandemic shape the landscape of labor, worker protections, and economic justice in the United States. Wolff and Henley spotlight both new threats (gig economy expansion, ACA repeal dangers) and sparks of hope (grassroots progressive victories), calling for collective action and renewed labor movement solidarity in the face of capitalism’s failings.