Economic Update with Richard D. Wolff

Episode: Working Class Power
Date: December 10, 2020
Guest: Sarah Nelson, International President of the Association of Flight Attendants, CWA, AFL-CIO

Episode Overview

In this episode, Richard D. Wolff examines the state and future of working-class power in the U.S. He critiques the Biden administration’s economic team, highlights international labor action with a focus on India’s massive general strike, explores how the capitalist system perpetuates inequality—even in crisis responses—and concludes with an interview with prominent union leader Sarah Nelson to discuss the reality and potential of labor action in America today.

Key Discussion Points & Insights

1. Biden’s Economic Team: “Same Old, Same Old”

Timestamp: 00:10–05:45

• Wolff provides a frank assessment of President-Elect Biden’s recently announced economic appointments.
  • Criticism centers on the lack of fresh or transformative approaches; most appointees hail from previous administrations, echoing neoliberal, pro-corporate policies.
  • Quote:

    “It is the same old, same old...They seem to believe that a return to the pre-Trump normal is a reasonable objective...This is an economic team that probably will reconstruct what existed before Trump.” (A, 01:24–02:00)

• He warns that reviving the ‘pre-Trump’ status quo risks repeating the economic discontent that propelled Trump and could, in future, empower a more effective, less divisive populist figure.
  • Quote:

    “If you do with this team what it looks like you’re doing, you’re recreating the conditions that produced Mr. Trump, only you have a grave risk that the next Mr. Trump...will be less crude, less gross, less offensive, and thereby all the more effective...” (A, 02:42–03:13)

• Wolff underscores how significant change in the 1930s stemmed from “movement from below”—labor and socialist organizing—pressuring the political system, which is not currently present.
  • Quote:

    “What existed in the 1930s...was a movement from below. I don’t see Mr. Biden’s team of moderates...doing anything comparable...because there isn’t yet that kind of pressure from below.” (A, 04:05–04:52)

2. U.S. Banks’ Fragility: NBER Study

Timestamp: 05:45–07:36

• Wolff summarizes a November 2020 National Bureau of Economic Research paper by Lawrence Ball, examining the crisis-readiness of major U.S. banks.
  • Key finding: The six biggest U.S. banks are unlikely to survive a 30-day liquidity crisis, with Goldman Sachs and Morgan Stanley particularly vulnerable.
  • Quote:

    “It is unlikely that any of the six biggest banks in America would survive a liquidity crisis for 30 days.” (A, 06:45–07:12)

• Wolff warns listeners not to trust the narrative that the U.S. financial system is stable and well-regulated.

3. India’s General Strike: Lessons in Working-Class Power

Timestamp: 07:36–13:10

• On November 26, 2020, Wolff reports, India saw a general strike involving 250 million workers and farmers—about three-quarters the U.S. population.
  • The strike was against the Modi government’s pandemic mismanagement, anti-labor, and anti-farmer laws.
  • Demands included:
    • Direct cash transfers to poor families
    • Expanded food rations
    • Doubling guaranteed employment days for rural and urban workers
    • Withdrawal of anti-worker and anti-farmer regulations
    • Halting privatization and restoring pensions
  • Quote:

    “250 million people went on a general strike...They mobilized 250 million farmers and workers together...stunningly, a direct cash transfer...free food ration...expansion of the Rural Employment Guarantee Act...” (A, 08:16–10:11)

• Wolff laments the lack of comparable labor militancy in the U.S. and criticizes American mainstream media’s poor coverage of the strike.
  • Quote:

    “Why has nothing like that been done here? Why is our labor movement, AFL, CIO and others not demanding jobs for the unemployed?” (A, 10:19–10:45)

4. Capitalism, Crisis, and PPP Relief

Timestamp: 13:10–15:41

• Wolff scrutinizes the U.S. Paycheck Protection Program (PPP) intended to help small businesses during COVID-19:
  • Of the $523 billion distributed, more than 25% went to just 1% of recipients—essentially big businesses.
  • Quote:

    “More than 25% of that $523 billion...went to 1% of the borrowers. That’s right, big business screwed medium and small business out of the help designed for...medium and small businesses. That’s how capitalism usually works.” (A, 14:27–15:09)

• He uses this as a broader lesson on capitalism’s inability to stop inequality, even amid public health and economic crisis.
  • Quote:

    “Capitalism is the sickness that needs a cure.” (A, 15:19)

5. Interview with Sarah Nelson: Labor, Strikes, and Power

Timestamp: 15:41–28:12

a. On Embracing Labor’s Power and the Strike

• Nelson argues that U.S. labor—and labor worldwide—has become timid about the language, and especially the action, of striking.
  • She urges a cultural shift: normalize discussing strikes as an essential worker tool.
  • Quote:

    “If you’re not talking about the strike, if you’re not talking about the willingness to withhold your labor when things are not going right for working people, then we’re not really accomplishing what we need to for working people.” (B, 17:15–17:32)

• Highlights the West Virginia teachers’ strike as an example of solidarity—with all public employees benefiting.

b. Has Labor Really Been Quiet?

• Nelson disputes the notion that labor has been passive, at least in her sector (aviation) where 80% are unionized and labor engagement in safety, contract negotiation, and even social issues has remained active.
• Achievements include:
  • Workers’ protections during COVID-19
  • First-ever worker-centered relief plan for aviation (payroll, no layoffs, limits on executive compensation)
  • Aviation unions’ role in ending Trump’s government shutdown
  • Pushing back on social injustices like the Muslim ban and family separations
  • Quote:

    “Where you have workers organized in their workplace and can push back and actually push back on capital...we negotiated some of those [LGBTQ] rights in our contracts before...any city ordinance...” (B, 22:38–23:36)

• She emphasizes the public and policy impact of workplace organizing and solidarity.

c. Prospects for Broader Labor Transformation

• Nelson sees hope in a new generation of workers who appreciate collective action, and points to the pandemic as a unifying experience that could be the basis for mass organizing.
• She stresses that real change will require mass numbers and reiterates that:

  “No politician is going to do this for us. We have to be organized, clear about our demands and work in solidarity to get it done.” (B, 26:08–26:18)

Notable Quotes & Memorable Moments

• On the Biden Team’s Timidity:

  “This team is a remarkable failure to come to grips with, to even admit how serious the crisis and the divisions of this country are.” (A, 04:49–05:04)

• On India’s Labor Action:

  “Look what the people of India have been able to achieve.” (A, 11:23)

• On the Power of Organized Labor:

  “They didn’t want us to get a taste of our power as workers. And that’s why that deal [ending the government shutdown] came together faster than anything you’ve seen before.” (B, 25:43–25:59)

• On the Need for a Cultural Shift in Labor:

  “Too often, we outsource our power to relationships, to thinking of unions as HR solutions, as opposed to who unions really are. And that’s the working people who make up the union.” (B, 16:40–16:59)

Timestamps for Key Segments

• 00:10–05:45 — Wolff’s critique of Biden’s economic team and lessons from the 1930s labor upsurge
• 05:45–07:36 — Bank vulnerability and the NBER report
• 07:36–13:10 — India’s general strike and lessons for U.S. labor
• 13:10–15:41 — PPP relief critique and capitalism’s ongoing inequalities
• 15:41–19:01 — (Interview) Nelson on the power of the strike and labor’s forgotten tools
• 19:01–26:45 — Nelson responds to claims of labor quietness; examples from aviation; how organized labor can impact social and economic policy
• 26:45–28:12 — Wolff asks if Nelson’s militancy is spreading; Nelson’s outlook and advice for the labor movement’s future

Conclusion

This episode offers a sobering yet energizing evaluation of where American working-class power stands. Wolff’s sharp economic critique pairs with Nelson’s on-the-ground organizing experience, presenting both the obstacles and the pathways toward a revitalized labor movement. Through international examples and candid personal testimony, listeners are prompted to envision and work for a labor movement that can force transformative change in the face of old economic policies and new crises.