Transcript
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Welcome, friends, to another edition of Economic.
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Update, a weekly program devoted to the economic dimensions of our lives. Jobs, debts, incomes, those of our children and those facing us. I'm your host, Richard Wolff. I want to begin today's updates by talking about something as old as the human race. I'm talking about the problem of maternal death rates, women who die in childbirth, something that has been a concern for the human community, for the life of our species. The reason I bring it up today is a statistic that caught my attention. The maternal death rate in the United States is four to six times larger than that in Europe. That's the number of mothers who die in childbirth as a percentage of the total population. So it takes into account the different sizes of the different countries. This is an extraordinary and deeply depressing statistic. So I looked further, tried to find out what are the causes, as far as science knows, for maternal death, dying in childbirth, given all the advances science and medicine have made in this area. And there are three basic causes. One, poor health of the population in general, number two, poor heart care, health in particular because it's a tremendous strain on the heart giving birth. And number three, poor pregnancy care. So it turns out that the United States has four to six times the rate of maternal death in pregnancy, excuse me, in birth, because it has poor general health, poor heart health and poor pregnancy care. What an extraordinary comment. And what a way to contrast the claims of Mr. Trump and the GOP that we have a great economy. Think about it. I want to talk next about inequality. Everyone knows who pays attention that the level of inequality, both of income and wealth in the United States is off the chart, so extreme that it's almost a daily affront to the majority of people. And so I wanted to bring your attention to some comments about it and some facts about it that may not have come to your attention before. And I want to remind you of the work of the French economist Thomas Piketty that we've talked about before, whose famous book published in 2014 called Capital in the 21st Century, is a documentary study of how capitalism, throughout its history and wherever it has settled as the dominant economy, has increased the inequality of wealth and income. It's only when people upset by this inequality have risen up and demanded changes that you've had a temporary because always turned out to be temporary, a temporary reversal of the inequality, or at least a slowing down of the growth of inequality. But as soon as that temporary revolt from below is over, the inequality resumes because it's built into to capitalism. That was Mr. Piketty's discovery, his 600 page book, is the demonstration and proof of this argument. So I want to begin with a recent statement, February 4, to be precise, made by Pope Francis in a speech in the Vatican. I can't do better than quote the words of the Pope, so let me do that right now. We must be conscious of all being responsible. If extreme poverty exists amid riches which are also extreme, it is because we have allowed a gap to grow, to become the largest in history. Pope Francis, February 4th of this year. I found this remarkable and it stood in contrast to something else I also found remarkable. It turns out that the recent Valentine's Day holiday that many of us celebrate was also the occasion for a hotel in New York City, the Peninsula Hotel, to also offer a special deal for the Valentine's Day holiday. I'm going to read it to you and then give you the price that the Peninsula Hotel charged with for this service. The ultimate Valentine's Day Manhattan experience. How about a night under the stars in a rooftop dome? New York's Peninsula Hotel has just the ticket, with packages that start at $48,000 for the evening. Included in this Valentine's Day special, a champagne toast from a dedicated personal butler and a private dinner, complete with Petrosian caviar. If you wondered how the other side lives now, you know, these are signs of extreme inequality, of just the sort of that Pope Francis was talking about. It goes together with another thing Mr. Pope Francis said he offered a critique of the destruction of the Amazon rainforest as part of the consequences of inequality in the world. He criticized the destruction of that vast natural preserve. In response, the President of Brazil, Bolsonaro, attacked the Pope. Here's what he the Pope may be Argentinian, but God is Brazilian. I couldn't make this stuff up, so that's why I'm reading to you. This was at the same time that the former President of Brazil, who did not despoil the Amazon, Lula by name, was, was getting an audience with the Pope in the Vatican. And then there's the last example for today of extreme wealth. The richest man on this planet, Jeffrey Bezos, the CEO of Amazon, decided recently that he was going to commit $10 billion for him, you know, a weekend's chump change to the climate change. To fight climate change. He said he will decide who gets it for what, when, and of course, unless he changes his mind. We live in a society in which the hundreds of thousands of people who make Amazon what it is and produce the wealth that Mr. Bezos disposes of it have no say in what is done with the wealth of their labor helped to produce. Instead, we allow one man to decide what to do with the wealth produced by hundreds of thousands of people, you know, like a king or an emperor, which we may have thought we got rid of hundreds of years ago. But they show up again dressed as corporate CEOs. My next update has to do with the arrival of the MeToo movement, which started in the entertainment industry, went on to high tech, and has now reached the banking industry. And two events in particular I wanted to bring to your attention. The first concerns the Wells Fargo bank. They have a long standing procedure which they've now stopped. The procedure was to subject internal complaints, like complaints about sexual harassment to mandatory arbitration, so that people who work for the Wells Fargo bank had to submit to mandatory arbitration, which typically ended with a non disclosure agreement signed by the person who made the complaint. So that the rest of us, the larger world, the public, never learned about these incidents of sexual and other kinds of harassment. Wells Fargo, under pressure from particularly women in the MeToo movement, has decided to no longer impose mandatory arbitration. And then there was the case brought against the Pittsburgh PNC bank, one of the larger banks in the United States, by a former employee, Damara Scott. She won a judgment by a jury of $2.4 million. Her basic story was that she was sexually harassed by a wealthy client of the bank. Her case contended, and the jury found for her that the bank knew that this person was given to these kinds of sexual harassment, knew that it had happened, took her complaint after it happened, and did exactly nothing about it. When banks directly or indirectly accept or require or tolerate sexual harassment, the bank is acting effectively like a pimp acts. And it is interesting that finally something is being done to deal with this situation. The lawyer for Ms. Scott says that more female bankers have come forward with their parallel stories. MeToo arrives in the banking world. The next update has to do with President Macron in France, increasingly known in his own country as President Trump Lite, as he looks so much like it recently. Macron, who basically gets exposed in a scandalous way every week or two with something new, was exposed this time by meeting with the president of the BlackRock Money managing firm, the biggest money manager in the world based in the United States, whose president, Larry Fink, sits on top of a firm that manages, get ready, $7 trillion worth of other people's money. He was meeting with President Macron because President Macron has been facing a general strike of the French people for trying to change the pension system there. Guess what, Mr. Finks Blackrock manages the pension funds of people all around the world, including governments and corporations. So he is looking with great eagerness on the reform which might bring his management all kinds of clients. Here's some things to think about. France today has one of the lowest poverty rates among its elderly anywhere in the world, much, much lower than the poverty rate of elderly in the United States. That's one of the reasons the French people are fighting to keep their pension system, since it's responsible. The French also don't like to invest in stocks. Only 5% of the people's assets in France are invested in stocks. By comparison, here in the United States, 34% is invested in stocks. So here we have the cute luncheon between the pension manager and the President caught drooling over what money they might make by the reform of the French system. My last update has to do with a sad story many of you remember or know about. Newsweek magazine used to be one of the most important sources of weekly news in the United States. The great competitor of Time magazine. The other one was was founded in 1933 as a competitor to Time magazine, was bought in 1961 by the Washington Post and then later sold in 1991. At its peak, it had 3.3 million subscribers. The last time I could get statistics, 2015, it was 100,000. A virtual collapse. And then in January of 2018, the police raided the headquarters of Newsweek in Lower Manhattan, discovering a money laundering corrupt activity that involved what District attorney Cyrus Vance Jr. Called criminals illegally moving millions of dollars. The IBT corpor, a fictitious company called Karen Smith, David Jang, a South Korean minister, church minister, and Olivet University, a small Bible college that Zhang founded in Southern California. As I said, you can't make this stuff up. We've come to the end of the first half of today's program. Please remember to subscribe to our YouTube channel and follow us on Facebook, Twitter and and Instagram. You can go to democracyatwork.info to learn more about other Democracy at Work shows, our Union Co op store for gift items and our books Understanding Socialism and Understanding Marxism. And lastly, a special thanks to our wonderful Patreon community whose support is an invaluable part of making this show possible. We will be right back.
