Economic Update with Richard D. Wolff

Episode: US Labor Crisis Deepens
Air Date: September 3, 2020

Episode Overview

In this episode, host Richard D. Wolff examines the deepening crisis facing U.S. labor amid economic turmoil exacerbated by the COVID-19 pandemic. He explores the Federal Reserve's latest monetary policy decisions, the escalating struggles of public and essential workers, and the growing alliance between government and big business. The episode features an in-depth interview with labor journalist Bob Henley, who provides an on-the-ground perspective regarding the dire challenges and nascent movements within the American labor force.

Key Discussion Points & Insights

1. Federal Reserve Policy and Its Consequences

00:10–08:50

• Wolff opens by highlighting the Federal Reserve’s recent announcement: interest rates will stay at or near zero for several years, with a continued injection of money into the economy.
  • “They will continue to pump more and more money in… because things are so desperate that they dare not stop doing that.” (A, 00:41)
• Targeting inflation above 2% to balance out previous years of low inflation is risky and largely benefits the wealthy.
  • “The only thing that has happened positively in this economy since the crash… is the stock market has gone up, the rich have gotten richer, and the announcement by the Federal Reserve makes all those rich people smile because they're going to get richer still.” (A, 02:30)
• Wolff warns of a scenario where wages stagnate or decline while prices rise, exacerbating worker precarity:
  • “You get the message folks… stable wages if they don't go down and rising prices. The savaging of the American working class continues.” (A, 05:44)

2. Athlete and Scholar Action as a Form of Dual Power

08:51–13:50

• Wolff praises professional athletes for taking a stand for social justice, highlighting how their labor stoppages signal a lack of leadership from political parties and unions.
  • “We are going to do what no political party or politician dares to do and what no union… has so far dared to do… that's their work, that's their labor.” (A, 09:55)
• The athlete movement inspires a parallel: ScholarStrike, a planned nationwide protest by professors for social justice issues.
• Wolff frames these actions as early signs of “dual power,” where new forms of collective action emerge as traditional institutions lose relevance and legitimacy.

3. Intensifying Government-Business Collaboration

13:51–15:20

• Explores the blurring lines between government and major corporations, citing the Trump administration’s interventions in international trade and tech (e.g., TikTok, Microsoft, Walmart).
  • “The closer and closer coordination of government and big private capitalism has a name… It's called fascism… the quiet arrangement that there is no more separation between the government and big business, it's just one big hustle.” (A, 14:48)

4. Pandemic Response: U.S. vs. Denmark

15:21–15:25

• Contrasts Denmark’s unified, multi-party pandemic response (swift lockdown, transparent governance, and a robust welfare system) with the U.S.'s fragmented and politicized approach.
  • “Denmark has one sixth the amount of COVID cases the United States does... and they're a socialist country. So remember the comparison.” (A, 15:13)

Interview with Bob Henley: Labor on the Frontlines of Crisis

15:27–28:30

The Plight of Public Employees

16:07–19:08

• Federal workers (2 million) and local public employees are directly endangered by policy failures, lack of protective measures, and management neglect.
  • “When Donald Trump decided not to test and to basically ignore the reports he was getting from these frontline workers as they were getting sick… he really proliferated the disease.” (B, 17:09)
• Henley attributes thousands of unnecessary deaths among healthcare professionals and their families to deliberate changes in CDC guidelines and neglect by top officials.

Mixed Labor Movement Response

19:09–21:38

• Some unions (e.g., the TWU with transit and airline workers) have courageously defended members against unsafe directives.
• In critical sectors, such as meatpacking, labor response was undercut by both governmental and management pressure.
  • “Aside from an op ed for Mr. Trumka, everything else was very lacking, of course, except for the United Food and Commercial Workers, who did all they could but were sadly in isolation.” (B, 21:22)

Athlete Activism as a Catalyst

22:15–23:15

• Henley believes the actions of primarily young, often minority athletes signal a transformative re-emergence of militancy and solidarity in the broader labor movement.
  • “They have such agency and are willing to put at risk that agency to help rekindle the militancy that is required.” (B, 22:27)

Critique of “Back to Normal” Rhetoric

23:55–24:58

• Calls for a return to pre-pandemic “normalcy” miss deeper, structural problems.
  • “If we wanted to get back to the pre[COVID] normal, we'd just be waiting for the next more deadly virus.” (B, 24:47)

Evidence of Systemic Collapse

24:58–26:43

• Henley points out decades of neglect, corruption, and resistance to change at the top of unions and government agencies.
• However, he sees hope in grassroots movements and generational change within unions, inspired by broader movements like Black Lives Matter.

Broader Political Awakening: ScholarStrike & Beyond

26:44–28:30

• The ScholarStrike action, inspired by athletes’ activism, signals an emerging convergence of labor, intellectual, and grassroots action for systemic change.
  • “I do see a kind of flashpoint that we an opportunity that could be historic.” (B, 28:19)

Notable Quotes & Memorable Moments

• Wolff on the economic consequences of Fed policy:
  “Stable wages if they don't go down and rising prices. The savaging of the American working class continues.” (A, 05:44)

• Henley on government responsibility:
  “When Donald Trump decided not to test and… ignore the reports he was getting from these frontline workers as they were getting sick… he really proliferated the disease…” (B, 17:09)

• Wolff on athlete activism:
  “We are going to do what no political party or politician dares to do… that's their work, that's their labor.” (A, 09:55)

• Henley on the urgency of new labor militancy:
  “They have such agency and are willing to put at risk that agency to help rekindle the militancy that is required.” (B, 22:27)

• Wolff on government-corporate convergence:
  “It's called fascism… the quiet arrangement that there is no more separation between the government and big business, it's just one big hustle.” (A, 14:48)

Significant Timestamps

• 00:10 – Opening & Federal Reserve policy announcement
• 05:44 – Analysis of wage stagnation and price inflation
• 09:55 – Athlete activism and labor withdrawal as protest
• 14:48 – Government-business collusion characterized as “fascism”
• 15:13 – Denmark’s successful COVID-19 response vs. the U.S.
• 16:07 – Henley on frontline public employees under threat
• 19:09 – Mixed response of organized labor to the crisis
• 22:27 – Broader social significance of athlete activism
• 24:47 – Why a mere “return to normal” is insufficient
• 28:19 – ScholarStrike as a historical flashpoint

Episode Tone & Style

The episode maintains a critical, urgent, and impassioned tone throughout. Wolff’s language is direct and pointed, aiming to empower listeners with facts and inspire reflection on both the failures and emergent possibilities within American economic and social life.