Ask Prof Wolff: Human Needs Should Not Be Tied to Profit

A Patron of Economic Update asks: "This is a question that I hope Dr. Wolff will discuss regarding US profit extraction from basic necessities for workers and families. How much does the extraction of profit from basics like health care, energy, housing, transportation, communication and food hurt the competitiveness of US workers by increasing the needed wages? Should those be a priority for change to cooperative, democratic, worker-owned enterprises? Is it realistic to think that US worker cooperatives can be competitive with capitalism and cheap labor in other countries if most of the US profit extraction is eliminated from basic needs and the other areas of production? Will improving the quality and durability of produced goods be an effective way to compete?"

This is Professor Richard Wolff's video response.

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“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”

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Follow Wolff ONLINE:

[JoseLopez-ysoz]

The problem with capitalism is its desire to make a profit on human needs. This is how 8 of the 10 richest men in the world are United States (US) citizens, while the US is the epicenter of the coronavirus with over a million deaths. Puerto Rico has been a US colony for the past 124 years, because it benefits 1% of US citizens. 50% of Puerto Ricans living in Puerto Rico live in poverty. The US government is committing a crime against humanity by having violated the United Nations’ (UN) Charter that prohibits colonialism for the past 77 years. Moreover, the US has ignored 40 UN resolutions asking her to immediately return Puerto Rico’s sovereignty to the Puerto Ricans. Martin Luther King Jr. said, “Injustice anywhere is a threat to justice everywhere”. The 1% are criminals and traitors. The injustice will continue now, tomorrow and forever, unless the 99% of us engage in permanent resistance to replace capitalism to a 100% people-friendly economic system. Isn’t that the definition of democracy? Human needs must be excluded from profit.

[regalmedia]

i used to blame myself for all the financial problems. but thanks to robert reich and you and other people like you. i am able to see what the problem is. i try to educate people about the issues we all collectively face.

[justinxin]

DAMN RIGHT PROFESSOR!! Critical industries SHOULD NOT BE FOR PROFIT PERIOD!!!

[bollweevil]

Understanding the flaws in the system is therapeutic & maddening

[philjackson]

I believe any business leader would be interested in alternative modes of organizing business to improve worker satisfaction, commitment, and innovation. Likewise they would be interested in ways to reduce the costs of energy, transportation and healthcare. Worker co-ops, presented under this construct rather than as an alternative to capitalism should gain traction. Bravo, Prof. W!

[joeows]

After Occupy Wall Street I'll put together a community center in a place called Pueblo colorado. We started the Pueblo house we have four community homes a community garden a radio station and much more and we did it with nothing but faith no money just faith. Community is everything as all politics are local. You could check us out online see how we're doing maybe take some pointers maybe give a couple ideas but at the end of the day it's about community. Thank you Richard from the bottom of my heart I thank you.

[미향주-js]

In a word Richard Wolff is a man who has great sermon books of English. I respect him so thank you.

[silkenflare]

IMO, whatever type of business paradigm or organizational incentive that's created will only work with human goodwill and the intestinal fortitude to protect it. Otherwise, those who wish to exploit will always find a way to do so.

[johnfausett]

As usual, Wolff's explanation is consistent with his preconceived idea about how the world works. The healthcare dilemma is fairly simple to explain. Before third party pay became the norm, the price of healthcare was very reasonable. The intrusion of the insurance industry is totally responsible for the increase in costs.

[anothermike]

You've probably done it before, but a critique of the book: "capitalism and freedom" could negate most republican arguments. Friedman's reasoning seemed asinine to this engineer, by education.

[MORE]

I agree, but you realize that your statement stikes at the heart of nearly everything this country stands for.

[keithrodgers]

Corporate healthcare is a profit centre for the business. State control of healthcare stops private monopolies being formed to create higher prices.

[stevesedio]

Other healthcare firms "competed" out of business, or regulated out of business? Politicians are bought for that regulation, augmented by regulatory capture (the regulators are ex, or soon to be employees of the industry they regulate).

Would a coop give up the higher income regulation provides? If not, where does the cost savings come from?

If coops can sell for so much less, what prevents them from capturing market share today?

[raosos]

After playing a Taylor Guitar, you can hear the proud employee owned quality.

[anothermike]

Humans are the only animals that have to pay for their own existence.

[maxyogi]

This is a fantastic question. Albeit alittle confusing.

Production capacity to greater enhance the effectiveness of Capitalist incentives are not jecessarily tied to nor dependent on production efficiencies to deliver greater product/services.

Yes, the pursuit of greater advantage is the Goal of Capitalism. This comes at the cost of the reaping Competitive and Comparative advantages; to the population and not the oligarchs driving these needs under the guise of the greater good for humanity.

But Demand side economics will always be a hedge to the welfare of the people. As to see that the streamlining of a Ship of prosperity must indeed be steered by the steam of the sweat of its 'beneficiaries'; The People.

This is where Profit is mutually exclusive to societal welfare.

[mizmlyn]

How about the weapons’ industry mandated as nonprofit entities? Thoughts.

[caroleekeith]

The corporate structure should exist to serve the people.
Not the people serving the corporate.

[neuralnetwork]

I bet Eric Wolfner is feeling pretty good about himself after such high praise. 😋

[MrBuzben]

So a what's to stop a co-op from selling stock in it.