Podcast Summary: Economic Update with Richard D. Wolff
Episode: Working Class History and the 2020 Election
Date: August 15, 2019
Host: Richard D. Wolff (Democracy at Work)

Overview

In this episode, Richard D. Wolff traces the pivotal role of the American working class in shaping U.S. politics, focusing on key moments from the Great Depression through the 2020 election cycle. Wolff examines the cycles of empowerment and division within the working class, sheds light on the legacy of the New Deal, analyzes the bipartisan retreat from working-class interests, and questions what the future holds for political alignment and working-class unity ahead of the 2020 Presidential Election.

Key Discussion Points & Insights

1. The Working Class and Its Centrality (00:10–05:00)

• Wolff begins by defining the working class as "non-supervisory employees," around 150 million Americans (00:45).
• He emphasizes the critical importance of this group in the functioning of capitalism:
  "They couldn’t run it the way they do, have the power, have the wealth, have the income, if the mass of people, the vast majority, the non-supervisory working class, if that didn’t allow this to continue, it wouldn’t." (01:55)
• Discusses intrinsic divisions within the working class: gender, race, education, region, but insists on their shared interests historically.

2. The 1930s: From Catastrophe to Coalition (05:00–15:00)

• Details the context and consequences of the 1929 stock market crash, the resulting Great Depression, and unprecedented working-class hardship.
• The mass unemployment and absence of a social safety net led to a seismic shift:
  "The mass of the American working class finally saw through the pretenses of capitalism. They saw what capitalism could deliver, not the goods, but the really bads." (08:15)
• "The greatest wave of labor organization in the history of the United States took place in the depths of the depression. Millions of Americans who had never been in a union before... decided the best way to get through the hard times... was to unify." (10:30)
• Formation of the New Deal coalition: alliances of unions, socialists, and communists, collectively pressuring for reform.

3. The Roosevelt-New Deal Response (15:00–21:00)

• President FDR responds to pressure from the New Deal coalition, negotiating support from the wealthy elite by warning:
  "If you don’t, there’s a good chance those people will remove whatever money you have and you won’t be in a position to give anybody anything." (16:30)
• Major reforms emerged: Social Security, unemployment insurance, minimum wage laws, and direct government hiring for millions.
• Working class’ loyalty to the Democratic Party is cemented; FDR’s four-term presidency is highlighted as evidence of this alliance.

4. The Reaction: Breaking the New Deal Coalition (21:00–29:00)

• Post-WWII, Republicans and business leaders actively work to dismantle New Deal reforms:
  • "Undo the New Deal" by shattering the coalition of leftist parties and unions (22:30).
  • Communists and socialists are vilified as foreign agents, ushering in the Red Scare.
    "They were not leaders of a working class. They were evil agents of a foreign power. And you got rid of them." (23:05)
  • Taft-Hartley Act (1947) undermines union power; free-rider problems weaken organized labor.
• Strategic reinvigoration of gender and racial divisions splits the working class:
  "You built up the divisions within the working class to break them apart, to stop them from being unified..." (25:20)

5. Transformation of Political Parties: From Class to Identity, From FDR to Clinton (29:00–35:00)

• Democratic Party fails to defend its working-class roots, shuns its left, seeks capitalist allies instead.
• Rise of centrist Democrats (e.g., Bill Clinton) who pursue similar pro-business policies as Republicans: "If we can't hold on to the working class, maybe we can keep our party going by appealing to the capitalists..." (31:15)
• Both parties end up dependent on wealthy funders and unable to credibly oppose capitalist interests: "Two political parties, both of whom begging for money from the rich and the powerful..." (32:00)
• Party alignment begins to fracture along racial, gender, and identity lines, rather than class solidarity.

6. Reagan Era and Beyond: Consolidation of Business Power (35:00–39:00)

• Ronald Reagan “finishes the job,” crushing the remnants of labor and accelerating job loss and global outsourcing.
  "He is going to crunch down on what remains of the labor movement and he is going to celebrate globalization." (36:15)
• Democrats become "Republican light"—offering the same policies in softer forms.

7. Working-Class Anger and the Rise of Populism (39:00–43:00)

• Cumulative effects of bipartisan neglect fuel resentment and search for alternatives.
• The rise of Donald Trump reflects working class anger at both parties:
  "A narcissist, a baby, a boaster, a bully, Mr. Trump... he becomes the president because the working class was so angry at what had been done to them..." (41:50)
• Choice for 2020 is about whether the Democratic Party learns from this history:
  "If they go for someone like Mr. Biden, they're saying to the American working class, we've learned nothing from this history..." (43:00)

8. Comparison to Europe & Future Prospects (43:00–46:00)

• Contrasts American and European labor-political relations.
• European countries maintain strong left parties and unions, enabling policies like universal healthcare and affordable education:
  "In Europe, none of this kind of thing happened in the same way. Why? Because the working class did not suffer the kind of crushing that happened here." (44:20)
• Suggests that only renewed working-class unity along lines transcending identity divisions will produce substantive change in America.

Notable Quotes & Memorable Moments

• "The only way to help these people is to get money. And the only people who have money are you, you, corporate leader, you, wealthy billionaire, etc. So you’ve got to give me the money..." (16:00) – Wolff, on FDR’s negotiation with the elite.
• "The Democratic Party became ... the party of the working class, and we’re going to support you. How powerful was it? Well, let’s see. Mr. Roosevelt was president four times. He was re-elected three times by overwhelming support..." (19:10–19:45)
• "They taught Americans to be very frightened of all of that [socialism and communism] and very hostile. And Russia became the great enemy. This is step one, break the coalition. Step two, you hobble the labor movement..." (23:10)
• "The Democrats become Republican light. And that’s not a winning strategy, not at all. Because the white working class, the men and the white men who supported mostly the Republicans, ... are getting upset..." (37:16)
• "Across all this period ... both of those parties are letting capitalism do what it wants: replace people with machines, move jobs abroad ... and neglect the conditions of the mass of people. And people get angry."(39:30)
• "Here we have it. The working class has been crucial at every step of the way ... and the destruction of its institutions that had protected it. In Europe, none of this kind of thing happened in the same way..." (43:10)

Key Timestamps

• 00:10–04:00 — Introduction, definitions, and scope setting
• 05:00–15:00 — The Great Depression and rise of working-class political power
• 15:00–21:00 — FDR’s New Deal reforms and the making of the Democratic coalition
• 21:00–29:00 — Postwar backlash: Destroying unions, left parties, and building divisions
• 29:00–35:00 — The Democratic Party's retreat; centrist realignment
• 35:00–39:00 — Reagan Revolution and Democratic convergence
• 39:00–43:00 — Working-class resentment, Trump’s victory, and the 2020 stakes
• 43:00–46:00 — European contrast and concluding call for unity

Conclusion

Wolff’s episode is a pointed, historically informed critique of the evolution of U.S. political parties' relationships with the working class. He challenges listeners to learn from history and demand deep, structural change—suggesting that unless the Democratic Party reclaims its New Deal roots, or a new formation emerges, the working class will remain divided and dissatisfied, to the benefit of the capitalist status quo. The episode is a call to critical reflection and collective action ahead of the consequential 2020 election.

For further reading, Wolff references his written argument published at CounterPunch.org (June 3, 2019).