Ask Prof. Wolff

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Have a question for Professor Wolff? Want to suggest a topic or article? UPVOTE your favorite questions or submit your own. Top suggestions will be given a video answer on YouTube.
 
Professor Wolff receives hundreds of questions per week covering a wide array of topics, from economics and politics, to historical movements and current events. While Professor Wolff does his best to reply to some questions on Economic Update with Richard D. Wolff, he's received more questions than can be answered individually. Prof. Wolff will now provide video answers to his favorite questions on this page.
 
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How did the national debt originate? Who said this was OK?

First, I'd like to thank you for sharing your wealth of knowledge with us and for all you do for our country and the world. I listen to Economic Update with my 10 year old son Josh(by choice) every Friday after school. He asked me who started the idea of spending money we don't have as a nation. Like who was the president and what the argument looked like. Did anyone oppose it? I couldn't answer him very well and would love if you did a segment on it. Josh would be thrilled that you answered him too. I also would like to voice my agreement with Lionel of Lionel Media that you should be in office. I know alot of people who would enthusiastically support your effort. Thank you again. Chris Cull Michigan

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How can your salient alternative work in an economy like Liberia?

Liberia is a third world country with over 80percents of its approximated 4miilion citizens living on less than one dollar a day. The country's economy is dependent on the extractive industry. Industrialisation is lacking. Merchandise agriculture is an illusion. Extreme trade deficit is an economic culture. The service and commercialised sectors are dominated by foreigners. We only receive taxes and rent from the sale of state assets to private foreign investors, which makes it impossible to mobilize enough capital to independently fund the construction of roads, dams, schools, hospitals, and etc. Our budget accounts for 85percent recurrent expenditure. Investment in public goods is dependent on foreign aid, loans, and grants. So how can your alternative work in the case of Liberia?

Richard Wolff posted an official response

Worker coops, if implanted in Liberia and built upon ancient traditions of work in Liberian culture, could be the basis for a political movement that could finally confront its neo-colonial status and chart an independent course of development from which it is, as you well put it, blocked. Part of that blockage is the lack of a strongly based social movement able to wage the necessary fights with the foreign powers and their local, domestic partners. And that lack needs an economic mass base which the development of viable worker coops in alliances amongst themselves might provide. The movement beyond capitalism that worker coops signal in the advanced industrial countries has its parallel in the opportunity for people in places like Liberia, to  move in similar ways. Then too, perhaps alliances, and mutual supports among worker coops globally could enable them to hep one another's growth.

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Is the global economy essentially a zero-sum game?

Hi Richard, I found this 2 minute clip on YouTube (https://www.youtube.com/watch?v=auaZDyUvWZM) that argues that it isn't. However, my leaning is that it is a zero-sum game. Even if more "credits" are added periodically, it is still a zero-sum game surely. If there were 10 coins on a table, and I took 8 and you had 2. And every hour, 2 more coins were added onto the table. It would still be a zero-sum "game", just with more coins. Not only that, but in practice, those with more coins (me) would have more resources at my disposal to acquire the new ones that added every hour. Please watch the short video and let me know what you think. I'd be very interested to hear your response. Thanks.

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How would doctor's control their own means of production?

In a socialist society, the doctor would provide healthcare for individuals. But lets say he or she decides that the value of other labour is worth more. Wouldn't that break the idea of universal health care? How would it work?

Richard Wolff posted an official response

That problem would exist (does exist) within capitalist societies too. A socialist society would presumably value and therefore protect each individual's right to change jobs. Indeed, a socialist society would make that easier because it would not link the particular work one does to the income one relies on. Income would in any case be shaped by the social circumstances for workers as a community and not on the individual circumstances of each person. Therefore, in a socialist society it would be necessary to construct medical care facilities to provide universal health care with enough personnel to enable no loss in public health service in the event some percentage of personnel decide to change jobs. And that would be true across the range of work tasks in the society.

The rigid linking of income to one's job is very much a creation of those economic systems (slavery, feudalism and capitalism) which pit a small group of directors (masters, lords, employers) against a large number of subordinated workers (slaves, serfs, employees). That linking has been presented as necessary, universal, etc., which is not true. The linking is a means of controlling the subordinated worker, making him/her work or else losing most or all of their income, the means to reproduce themselves. That kind of control has always been socially dangerous (since it invites and promotes control over the subordinates' minds and bodies in many other ways all too common for centuries) yet sustained because it is what capitalists believe they need to keep their system going.

In a socialist society - at least as I envision a 21st century socialism - that linkage would not be allowed precisely because of its unacceptable control function. No one person should be able to freely withdraw another's income and thus ability to live....that is as grievous an injury as many others (i.e. striking a person, slandering them, etc.) and, again, is just let go because it is needed by the economic system. If people change and wish to change jobs, if people cannot get along well working together, and so on, that can be handled in ways that do not require and should not allow one to deny income to the other. Mechanisms to facilitate job changes with income provided across the time, training, relocation, etc. associated with a job change.

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Could capitalism ever be possible without the the reintroduction of slavery?

Slavery was on is way out by the time it was reintroduced with a racist twist by the various West India co.

Richard Wolff posted an official response

Looking carefully at history, we see no necessary or linear sequence of economic systems. We do see the birth, evolution and death of all systems, but in their deaths, each system can give way to any or all of the other systems (and possibly new ones). Slavery, feudalism, capitalism etc have arisen and passed away giving rise to one another (and still other systems). Capitalism may endure a while longer (even as it is failing growing numbers who turn against it) or it may dissolve into slavery and/or other systems or shore itself up a while longer by partnering with such systems. No fatalistic inherent dynamic dictates any order; it depends on how human beings experience, think through and act upon the systems in which they find themselves.

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Transnational Co-Ops?

A big part of my education is actually talking to latino day laborers ( and getting into a fight with three bicyclists who jumped a guatamalan under the freeway separating our two communities) and my apartment complex nieghbors from India working at a nearby pharmaceutical company. We talk about Co-Ops and the possibility of international associations or collaboraations came up. You've spoken about the Spanish group offering training. Are there other links forming?

Richard Wolff posted an official response

Yes, there is no problem in considering transnational coops. As with their capitalist counterparts, worker coops spanning countries would need to accommodate the different nations with which they interact and interdepend. Spain's Mondragon Cooperative Corporation - whose Mondragon University offers courses to people on how to start, finance, manage, etc worker coops - offers its experience and courses to people across the world and is itself a transational corporation. Thus it is in a fine position to advise and train others to move in the same directions.

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you write about WSDE,s are they different from a collective worker cooperative, and if so how?

you write about WSDE,s are they different from a collective worker cooperative, and if so how? Also your book does not advocate for traditional worker cooperatives, (Example; board of directors that may or may not be members of the worker coop it serves) yet the democracy at work website does advocate for all types of worker cooperatives, democratic work places and/or collective cooperatives. Is that a correct assumption?

Richard Wolff posted an official response

I am not familiar with the term "collective worker cooperative." If it is meant to cover a worker coop that runs democratically - where the key decisions about the enterprise like what, how and where to produce and what to do with the profits are made on the principle of one employee, one vote and majority rules - then it is pretty much the same as a WSDE. However, the WSDE we advocate would not have people on the board of directors who were not also employees just as it would not have employees who were not part of the democratic governance of the enterprise. Yes our website is friendly and solidaristic with all cooperatives (consumer, owner, sales coops and so on) but that is because we see them as steps in the right direction, but not as substitutes for what is most important to us, namely the transition from tom-down, hierarchical capitalist enterprises to worker coops as the basis for a democratized economy.

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H1B Visa abuse

Professor Wolff, please weigh in on the problem of H1B Visa abuse which harms American workers while exploiting non-immigrants to boot! Will you incorporate commentary into one of your lectures please? For example here is some background info: https://medium.com/@seeminglyquiet/modern-day-slavery-in-america-the-h1b-visa-800be3a3df54#.affsv9pde

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Overgrowth

Dear David, You dedicate a lot of the time in your weekly broadcast and a lot of space is your websites to the issue of cooperative enterprises as opposed to capitalist, top down corporations that dominate the present economy. I completely agree with the fundamental importance of this issue and with your point of view. There's another issue, however, that I rarely see discussed explicitly, and that is the dogma of the need for unlimited economic growth, that seems to dominate present economics. I understand that individual democratically controlled enterprises may (and probably will) consider the issue of growth carefully, but I think that this must be treated as a systemic issue, concomitantly with the democratization of the workplace. I would like to ask you what is your take on the role of growth in the present economy: is it really needed for the well being of the whole population or is it an ideologically imposed drive that only benefits the top players in the present global economy? Do you think something should be done to actively curb economic growth? Do you think that an economy less obsessed with growth would be easier to democratize? Finally, would you recommend good resources for learning on "growthless" economies? Thanks!

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On collective ownership and voting the founder out of the company

This has been troubling me about. Would like to know what is your solution. So let's say we have an economy that has collectively owned and managed enterprises (democratic socialism). I'm starting on my own a new company, and so start working hard, do hundreds of hours of unpaid work just to get things starting. Let's then assume I start to finally see some results and the product/sercice I'm producing is getting so popular that I alone cannot keep up with the demand. I need more workers to do the necessary labor. Now in socialism if I want to have more people working in the company, I would have to give up equal share of profit and ownership over to the other workers. So if I need 19 more workers I would only own 1/20th of the company. Even though I was the one who set up everything. But what's worse, I only have 1 vote, out of 20 and the rest of the workers can just decide to vote me out, fire me, from my own company! It seems so wrong. But maybe I'm just missing something or didn't understood this whole democracy at workplace idea. Please Dr. Wolff, can you offer a solution/explanation how this situation would be solved under the system your advocating? Thank you.

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On Thomas Picketty and "Capital in the Twenty-First Century"

I know he is more of a Keynesian economist, but what do you think of the book? Is it worth reading? etc. Thank you Doctor Wolff.

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"B" Corporations

What do you think about "B" corporations. It seems they are trying to address some of the downsides of capitalism. Do you think they're effective?

Richard Wolff posted an official response

"B" corporations are a way to protect mildly progressive corporate boards to pursue some social betterment goals without thereby becoming vulnerable to suits from shareholders claiming such boards have violated their fiduciary duties to maximize profits, etc.

As such they are a small step in the right direction, but given capitalism's massive production of inequality, environmental degradation, and social instability they are far too little and too late. Production should never have been subordinated to profit for the few (major shareholders and the boards of directors they select) when the well-being of the many is at stake. That violated the most elementary principles of democracy and risked the social destructiveness that capitalism has imposed on the world for many decades. A transition to a democratic enterprise structure - worker coops or worker self-directed enterprises - is a far more appropriate and adequate response to the dead end of modern capitalism than the "b" corporation.

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Do you envision a movement growing around your message like the Nader Raiders?

If I won the lottery or was otherwise in a position to do so, I would fund and promote the delivery of your message to an ever greater audience. This reverie of mine makes me think of Ralph Nader and his rallies which "culminated" at Madison Square Gardens. I believe that as the blatantly pro-1% policies of the current administration begin to affect more and more people in a negative way, your audience will grow dramatically. Be ready.

Richard Wolff posted an official response

If I won the lottery, I would do the same with my winnings. Even without a lottery win or an angel (at least so far) we have grown incredibly over the last 5 years. I did my 1-hour radio show, "Economic Update," that was broadcast on one station (WBAI, 99.5 FM, New York City) when we began in March 2011. Today the program is broadcast on 75 radio stations across the US plus two TV stations. When I began my public monthly economic lecture in New York City 7 years ago, we had 20-25 attendees; now, the monthly talks occur in the historic Judson Memorial Church on Washington Square and draw 150 are videotaped and viewed on You Tube by over 100,000 each month. The mass interest in and response to what we are saying and advocating is a proven reality. With more funds, our social impact could and would be immense. So I think we are ready. And thanks for your vote of confidence as well.

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Do you agree with the SEVEN DEADLY INNOCENT FRAUDS OF ECONOMIC POLICY by Warren Mosler?

Mr. Mosler does a brilliant job of flipping our "common sense" about how major monetary theories and policies are perceived by the public versus the reality. I'm curious of whether you agree with his explanations. http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf

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Professor Wolff, thank you for all your exceptional work ...

Professor Wolff, thank you for all your exceptional work which I have been following for what seems about 10 years now. I just enjoyed reading James Kwak's new book "Economism," a 190 page discussion the way capital put Milton Friedman and Econ 101 front and center of almost all discussions in politics and economics over the past 50 years. If you haven't read it, I want to suggest it. --Brandon.

Richard Wolff posted an official response

Thanks, I will read it. Once small comment: there were big historical shifts in the aftermath of capitalism's Great Depression of the 19309s followed by perhaps the most destructive war in history and characterized by both left-wing and right-wing surges of anti-capitalism. The post 1946 reaction only tolerated the left-over Keynesianism as long as it had no political choice. But while it waited for better political conditions, it actively promoted redirecting the discourses of politics and economics especially. In politics it was all about anti-communism, anti-socialism, anti-Marxism; and in economics it was all about burying Marx and Keynes in favor of a revival of neoclassical economics. Milton Friedman offered himself as a leader for that revival. He was very well funded.

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