Capital in the Twenty-First Century (2019) - full transcript
Adapting one of the most groundbreaking and powerful books of our time, Capital in the 21st Century is an eye-opening journey through wealth and power, that breaks the popular assumption ...
The authorities have
promised changes.
The pressure for reform is supported.
The difference between capitalism
and communism is so great -
- that only concrete and barbed wire...
We want to shape
society in a different way.
On the streets of East Germany -
- people are demanding
democratic reforms...
Security police dragged
people out of the crowd -
- hit them in the head and
threw them into the trucks.
I was born in 1971. I was 18 in
1989 when the Berlin Wall broke.
I listened to the radio
when communism collapsed.
During my studies, I traveled to
Romania, Hungary and Russia.
I saw the consequences of the collapse.
I saw a failed economic
and social system.
The political system
that promised exemption -
- but brought mere misery
and political recession.
When the communist card house collapsed -
- the capitalist argument was strengthened.
But it went too far.
Belief in an unregulated
market was endless.
In addition, private ownership
began to be glorified.
As a result, inequality
was on the rise -
- as well as nationalism
and xenophobia -
- as before the First World War.
The 21st century scares me,
because history suggests it -
- that we run the risk of
returning to the capitalist system -
- which is like the unequal world
of the 19th and 20th centuries.
CAPITAL IN THE 21ST CENTURY
Capital: The financial or equivalent
assets of a person or organization
In 18th century Europe -
- capital was concentrated
on a small number.
The aristocracy represented
one percent of the population.
Money limited social mobility.
Hard work and training
did not help in climbing up.
Often in literature, films
and popular culture -
- can track the importance
of capital throughout history.
It's a much gloomier story -
- like an idyllic march
towards development and light.
In the 18th century, the lives
of the poor were miserable.
If there was luck, maybe there was a servant.
All the others were
hand-to-mouth workers, travelers -
- which the landowners
treated as they saw fit.
Of course, there were no benefits, no
health care, no education, and nothing else.
Poverty was the death penalty.
The average life expectancy in
the 18th century was 17 years.
The capital at that time was
money, loans and land ownership.
The man sitting in the fort collected
taxes from his own farm workers.
We know from different
movies what it looked like.
I can hardly afford the perfume.
Has Roulet paid its rent?
- Roulet died last week.
- Without paying rent.
- Where did he die?
- I'm starving.
Hunger is a pleasure for the peasants.
Gabelle, you are a humanitarian.
You value people equally.
It's very naive.
Inheritance was an obsession for the
rich. The eldest son inherited the capital.
He got everything: money, a house, lands.
It only made him
very influential at birth.
These first boys also
had great political power.
Many of them were MPs, elites.
As a result, they wanted to
protect their income and their world.
It never occurred to them
that the poor deserved -
- redistribution of wealth.
They strongly opposed taxation.
This is how the aristocracy worked not
only in Britain, but throughout Europe.
The aim was to preserve
the power of the aristocrats.
Thomas Piketty’s examples of
Austen and Balzac are illustrative.
Jane Austen’s books
revolve around money.
No money earned by work -
- but it has been inherited as land.
Mr Darcy has huge lands
of pride and prejudice .
He doesn't even have to be there.
The country brings him money.
Thank you for coming.
- She looks unhappy.
- But he's not really poor.
He earns 10,000 a year
and owns half of Derbyshire.
The unfortunate half?
Austen created a fantasy in
which wit gained some wealth.
But in reality, Darcy would
never have taken Lizzie Bennett -
- who didn't have a penny of money.
She marries an heiress,
possibly even a cousin -
- to create even greater wealth.
Money fucked money.
Love had nothing to do with it.
Now we can see almost a
return to the 18th century.
Wealth inherited in
Britain is all in all again.
Today, one percent of the population
owns 70 percent of the country.
We have always had an elite
that recreates its privilege -
- and monopolize economic,
social and cultural capital.
The elite will remain in power and
pass on privileges to the next generation -
- also by modifying
our way of thinking.
Economists say poverty
is an excellent motivator -
- development and inventions.
It is thought that competition
makes people try harder.
The problem is that
extreme inequality -
- increases economic,
social and political stress.
If the elite defends
their ranks so firmly -
- that no one else can rise, the
result will be a complete revolution.
Life in the 18th
century was not static.
New policies call for
the same rights for all -
- and the cessation of inherited benefits.
The motto of the French Revolution
was freedom, fraternity and equality.
There was a brotherhood in
store. Everyone had to be free.
But in a short time the
bankers government -
- began to create the elite again.
Before we fought for freedom
Today we fight for bread
Equality has the weird side
that death brings to everyone
Take your seat, take the risk
Vive la France, Vive la France
The French Revolution was
based in part on hypocrisy.
The vision of equality was
optimistic and a little naive at best -
- and at worst a little cynical.
We believed that
equality would happen -
- spontaneously and
spontaneously, a bit like in a fairy tale.
In reality, it requires
political institutions -
- education, healthcare,
public transport -
- and high-income taxation.
But these were not there at the
time of the French Revolution.
In the Industrial Revolution of the
late 18th and early 19th centuries -
- manual work
changed to machine.
The machines began to make
wool, cotton and various commodities.
They make products
faster and unify them.
It increases returns.
Capital is no longer
something fixed, land -
- or even the ability to lend money to others.
People finally realized they
could expand their factory -
- by selling goods,
holding income -
- and placing them in the
expansion of the factory.
That is what modern
capitalism allows us to do.
Capital becomes something
that can be constantly expanded.
But the gap between wages
and productivity was large -
- and feudal labor traditions
were in the figures for a long time.
In Britain, it was illegal to resign
from a job without permission.
It was actively used in
the mid-19th century -
- at the height of capitalism in England,
the most advanced country in the world -
- where workers were
imprisoned and beaten -
- because the strike was illegal.
The idea arose to
escape the old world -
- and to establish a
new, more equal society.
When the new world of New Zealand,
Australia and Canada was established -
- the founders were
refugees fleeing Europe -
- at a time when capitalism
was really gaining a foothold.
Therefore, many of these people
wanted to get out of the country.
They wanted a
more equal society.
There was a desire to leave the class society -
- but it was done freely. It
was not a political movement.
The wealthy began to
rule right from the start.
For the white man in the 19th century -
- Australia and USA
were the best places to go.
There was enough land.
The only problem
was labor mobilization.
A small family farmer could
only mobilize his own children.
But the owner of the slaves could
go to New Orleans, take out a loan -
- to buy slaves from the
New Orleans slave market -
- and take them to Alabama and
begin to clear the land and grow cotton.
The profits made it possible to
buy more slaves and more land.
The slave economy was thus also
part of the cycle of wealth accumulation.
But the slave owners
did not just have labor.
They also had access to capital -
- because slaves act as guarantees.
If you are considering
giving a loan to someone -
- and he may give
guarantees as slaves or land -
- slaves were better because
they were easier to move and sell.
The 19th century was the time -
- in which division of labor, inequality
and power relations were defined.
First with the help of slaves
and then with violent colonialism.
It is difficult to say what part of the
current wealth of European countries -
- dates from the colonial period -
- but the advantage achieved
by the Industrial Revolution -
- was clearly
connected to the warlord.
Between 1870 and 1914 -
- Great Britain and France,
two large colonial powers -
- owned so much of
the rest of the world -
- and therefore received so much
profit, interest, dividends and rents -
- that they could afford to
continue investing in other countries.
The rest of the world
was at their service.
It is not worth increasing
production if no one buys products -
- so fashion spurred
the industrial revolution.
In the 19th century, fashion
already reached the working class.
Even working women
tried to keep up with fashion.
"You can't put that.
It's from last season."
It was incomprehensible in
the 16th and 17th centuries.
At the time, it was
thought it was still working.
The fastest growing industry in
the 19th century was Christmas.
In the 18th and 17th centuries, Christmas
was not celebrated very strangely.
That's when we drank
between friends and family -
- but the gifts were given
at the New Year at most.
By the 1850s, we had Christmas
candies, cards, and a Christmas tree.
People went bankrupt
to get Christmas -
- and the manufacturers seized it
as a way to make a lot of money.
New technologies, railway, telegraph,
mass production, large companies -
- innovation and traditional
production increased inequality.
It was a time of huge conflicts.
That was when there was an
open war in the mines of Colorado -
- between militias hired
by strikers and capitalists.
The U.S. military was
used to end the strikes.
Similarly, there is an economic
transfer going on today...
... for trade and technology -
- have the same opportunities
to create monopolies.
It is once again creating a
small, very wealthy class.
- 43 million. - 75 million.
107 million. Sold.
Around 1914 in
a city like Paris -
- 1% of the population
owned 70% of the wealth.
Two-thirds of the population
died without any wealth.
Nationalism and competition between
European countries are on the rise.
It is partly due to
strong social tensions -
- due to stagnant living
standards and inequality.
Competition between
countries, nationalism -
- is often an elite way to make
people forget class conflicts -
- and focus instead
on national identity.
All this led to the outbreak
of the First World War -
- in the summer of 1914.
In Berlin, the Germans know
that a moment of glory is at hand.
There was cultural
militarism going on in Europe.
The countries competed with each
other for both regions and trade routes.
The warlord tirelessly
circles his troops.
The British Empire had a
quarter of the world’s population.
Other countries wanted their share
of the cake, especially Germany.
Many of the new capitalists
still thought feudally.
Germany in particular had
junkers, great industrialists -
- who think nothing
beats a decent fight.
The British and the Allies
believed in the German conquest -
- be over in a few months.
But it did last for years and
destroyed the population of both.
World War I was
a battle for capital.
It was followed by a
huge economic collapse.
It gave rise to a new idea, mainly due
to the bankruptcy of the government -
- that taxes can
be a good thing -
- and that the only way to get
money is to tax the aristocracy.
The working class and the middle
class no longer had anything to tax.
It marked the beginning of the
end of the power of the aristocracy.
The 1920s also saw an increase in the
power of women and the working class.
Both said to the government:
"We fought and sacrificed.
Give something back."
Suddenly, the whole idea that
the working class and women -
- have to tolerate the conditions of
society, were completely abolished.
Follow the crowds to the city
of miracles, the city of passion.
Follow the crowds and
make money. Earn properly.
The 20th century was
perhaps an absurd abundance.
The shares went up, but
they were still invested -
- because the magic of Wall
Street is always believed.
We have a myth in this country -
- that the interest of Wall Street is in the
interest of the people, but it is not true.
Many banks sold products
they knew were bad.
Vague bankers
made obscure trades.
There was hardly any
legislation. The capital was free.
The bubble of the 1920s was like
many other bubbles. It was euphoria.
The shares rose and they
received a loan to buy the shares.
The courses went up further
and everyone was excited.
At the same time, the labor market
was going through a huge upheaval.
Many got rich, but many were also at
the bottom. Not so much in between.
An attempt was made to
close the gap with credit.
Credit spiral bait 5
- which burst, like bubbles always.
That time many
bankers went to jail -
- and changes were made to the legislation.
In particular, the Glass-Steagall Act,
which strengthened the banking system -
- until it was repealed in 1999.
After the economic crisis, many
countries ended up in a trade war.
Tariffs led to a snowball effect
that increased suffering everywhere.
It contributed to the
Great Depression.
If you read John
Steinbeck's Fruits of Anger -
- you understand the shock caused by
the complete collapse of the economy.
I was told to drive you away.
From your own country?
It's not my fault.
Whose then?
The land is owned by the Shawnee
Land and Livestock Company.
- Who is it?
- No one. It's a company.
I guess there's a leader out there
who knows what a shotgun does?
He is a mere leader who obeys
the orders of the East Coast.
- Then who are we shooting?
- I can not say.
If I could, I would tell. I don't
even know who to blame.
No one drives me away
from my own country!
My grandfather took
this country 70 years ago.
My father was born here. We
were all born here. Some died.
Banks collapsed one at a
time. Everyone lost their savings.
As a result, demand elsewhere decreased -
- which led to bankruptcies
and unemployment.
UNEMPLOYED ANY JOB IS ELIGIBLE
The great crisis of the 1930s
caused such great trauma -
- that the people and politicians -
- accused capitalism of it.
The suffering of the United States
had grown into absolute poverty.
As a result, they were ready
for tough political solutions.
This country is demanding action now.
Price regulation, large
changes in labor costs -
- and all of Roosevelt's actions
were completely new to the Americans.
It led to the construction and
redistribution of huge infrastructure.
The existence of the communist
alternative frightened the capitalists -
- to think that if even some of the
equality issues are not addressed -
- they lose the war of idealism.
Roosevelt borrowed some of
the ideas from the New Deal -
- such as strong state participation
in the economy and regulations.
It was understood that if the
state does not try to increase jobs -
- and prevent people from
starving, there is no stability.
The collapse of Wall Street
created poverty in the US and Britain -
- but its impact in Germany was
enormous, as Germany was already poor.
It had to pay compensation
after the First World War.
It caused huge inflation
in the Weimar Republic.
At worst, even a barrel of
banknotes was not enough for bread.
It can be directly linked to the rise
of fascism and poverty in Europe.
It is understandably tempting
when Adolf Hitler comes and says:
"I'm making Germany
big and awesome again."
Actually, he says that
Germany is poor Britain -
- Because of America and Europe.
These trampled people
are open to fascism -
- racism, exclusionism and
the conquest of other countries.
No more class divisions!
We will become one nation!
And you, my young, are this people.
One of many American
aircraft factories.
One bomber and thousands on the way.
Angel of Death.
The recession was overcome by
turning the economy into World War II.
Its scale was something
unprecedented.
The governments of all the
countries took over the production.
It was an industrial war, so
production was the one under which -
- the war would be
won or destroyed.
The labor movement
gained a lot of political power.
If you produced anything for the
war, you had to recognize the union.
Paying all of it required
an increase in taxes.
This era was the
end of feudalism.
It finally got the influence of the aristocracy
out of the industrialized countries.
Wars themselves are
used to destroy capital.
First, entire cities are
destroyed by bombing.
But only a third of
the capital goes into it.
Where do the other
two-thirds come from?
One third comes from inflation,
which destroys public debt -
- which was given to the
citizens to finance the war.
The second third
consists of new rules -
- such as rent regulation,
nationalization and regulations.
But the collapse of capital is
not necessarily a bad thing -
- because the power relations
of society have changed.
Everyone is equal
in the face of death.
Wars, death and despair -
- there are times when we
realize that we are all human.
This new political
context eventually led to -
- enlightenment and equality,
proclaimed in the 18th century.
The social atmosphere was
quite different after World War II.
The change in attitude
was greater than ever.
It is different than before.
We receive sickness and
unemployment benefits, pensions -
- compensation for accidents at work,
widow's pension, maternity allowance...
A social benefit system was created.
There were sickness and holiday pay.
In Britain, free health
care was created for life.
Industry nationalized -
- and inheritances and
property began to be taxed.
It works just fine.
Television with its entertainment
promises is part of the peace deal.
It combines private
stimulation and public service.
Capital was also constrained
in America in the 50s.
Rents were regulated and
landowners were restricted.
Capital was not allowed to rage
freely and increase. It had to be tamed.
This is a land of whole blood.
It was thought that
capital must help people.
The idea that the free capital of the
rich is in the interest of the people -
- questioned worldwide.
In the 50s, it was thought
that everyone could get wealth.
Immediately after World
War II, those born had life -
- which previous generations
could not even imagine.
For the first time, hard work
and studies could help the top.
Good day, Mrs.
Thatcher. Go sit down.
My father dropped out of
school at the age of 12 or 13.
He did not have opportunities for
postgraduate studies like we did.
Parents always try -
- give their children
opportunities they did not have.
Would you like a female prime minister?
Depends on who it is.
I don’t think I’ll see a female
prime minister in my lifetime.
Thatcher represents
incredible social mobility.
She was the daughter of an ordinary
merchant from the north. He visited Oxford.
She became the first female
prime minister as well as the rich.
Social mobility was
possible in the new society.
The middle class and lower middle
class dominated the positions of power.
If we look at the development
of inequality in the 20th century -
- the most significant change
is in the strong middle class.
Until 1914, the middle
class did not exist.
It was almost as
poor as the poorest.
The next 30 years of the war, during
which the economy began to rise -
- were a time of increasing
purchasing power -
- especially for low-income
and middle-class people.
They were able to increase consumption
and improve their standard of living -
- as well as saving for your
own house and raising capital.
The kitchen comes here so we can
see the children playing in the yard.
Junior? How many do you
want? Hopefully no more than six.
They are not very rich
nor completely poor -
- but they still have
national capital.
In recent decades,
middle-class wealth has declined -
- strongly in the USA and
less strongly in Europe.
We have clearly gone
in a different direction -
- which can be worrying
considering the 21st century.
One of the biggest challenges
is the shrinking middle class -
- and the risk of it becoming
a poor middle class as before.
The decades that followed
World War II were significant.
The war effort led to a
great social consensus.
We had solidarity -
- but it was based
on a stratified society.
There were other
forms of inequality.
It began to change in the 1960s
with the civil rights movement -
- and other subsequent
social movements.
WE MARCH WITH SELMA!
Blacks are still not free.
I think it is politically important
that the middle class is broad.
According to modernization theory, when
incomes rise, the middle class emerges.
It is better educated and
therefore wants to be more involved.
Then everything erupted in the 70s.
You will be watching NBC’s evening
news on Wednesday, October 17th.
Good evening. The war in the Middle
East is now affecting the whole world.
Oil-producing countries
made oil a political weapon.
In Kuwait, it was announced
that the price of oil would rise.
It was voted on at night. It
will take until Israel withdraws.
The oil crisis hit all industrialized
countries. Oil was used for everything.
Gas-free Sundays
start next month.
The price of foreign oil
rose from 3 to 12 dollars.
Quadrupling the price of oil -
- led to an increase in prices,
but wages did not keep up.
Unions began demanding
higher wages due to rising prices -
- when companies raised
prices further due to wages.
This gave rise to a price and wage spiral -
- and followed an era of
high inflation and low growth.
It is called stagflation.
Globalization was about to begin.
Emerging markets were coming.
Europe was back on its feet, and
Germany began to produce again.
The global picture changed. US
capital was no longer in control.
The 1970s also saw -
- a very isolated way of
thinking about the balance sheet.
Costs were cut. Labor was
seen as a cost, not a resource.
No investment was made in
employees. Wages were not raised.
It began to give rise to the big X, with
Wall Street moving in a different direction.
Germany and Japan
went the other way.
Employees sat on company boards
and were allowed to participate.
It brought great benefits.
Utilization of expertise -
- increased efficiency and gained
market share from US companies.
When it started, the
US was not prepared.
Small cars came across the sea to
change the country’s buying habits.
Nice car. What is the name of it?
- Isuzu. - Cheers.
They cross the road,
beat the heart, whirl...
Cadillac, Subaru!
Reagan as president.
Japanese car production is
almost double that of the US.
We used to be the world's
largest car manufacturer.
That is no longer the case.
Every country wants to tell
why it is richer than the others -
- or why it is impoverished.
That story Reagan and
Thatcher told their peoples.
Thanks a lot.
Can anyone look at our diminished
power in the world and say:
"Let's take another four years of this"?
No!
If you have lost your
hope, we will restore it -
- and take us on a crusade
to make America great again.
In the United States, it
was felt that Germany was
- as well as Japan. These were
the countries that lost the war.
Reagan and to some
extent Thatcher used it to say:
"These countries are catching up with
us. Something needs to change. What?"
"This is because of the New
Deal welfare state model."
"It has made us weak."
"We must return to
19th-century mythical capitalism" -
- "to regain our strength."
From there comes Prime Minister
Rover Mrs. Thatcher on a ride.
Margaret Thatcher,
daughter of a food retailer -
- studied with the privileged
at the University of Oxford.
We have work to do.
To increase the value of our assets
so that we can increase our investment -
- and free up capital -
- the power of the workforce had to be suppressed.
THE LABOR PARTY DOES NOT WORK
Here is some of the two-week
rubbish that is outside the landfill.
It has been closed for two weeks
due to a garbage drivers strike.
The teachers ’union
demands salaries.
33,000 pupils are out of
school in Haringey, London.
Canceled surgeries
appear as empty beds.
It must be remembered that the
strikes were problematic at the time.
The people did not like
how some unions behaved.
I cook everything because
the sewer workers are on strike.
The water is contaminated and
can cause typhoid fever. Can't I?
Something had to be done against
the power of labor against capital -
- and it's not easy.
The government has moved state
borders backwards and still does.
Millions have already bought shares -
- British Gas, British Airways
and our country's airports.
Flight 307 has been canceled so far.
Hostility to trade unions
began in the 1980s.
It condensed when Reagan
fired air traffic controllers.
For those who did not
come to work in the morning:
If you do not come to work within 48
hours, your employment will be terminated.
Nothing else.
It was like a green light
for the whole industry.
President Reagan has
begun dismissing the strikers.
The government said it was
ready to operate without them.
Five union leaders
have been imprisoned.
It is important to understand
that inequality has increased -
- because of the money
generated in the economy -
- workers are receiving an ever smaller
share. The share of wages is declining.
The return margin, ie the amount
of capital that owners receive -
- is growing.
It is basically about power.
Thank you for this
opportunity, Mr Cromwell.
You allowed Teldar Paper's
largest shareholder to speak.
America has become
a second-class power.
In free market times, when our
country was an industrial power -
- was liable to the shareholders.
Carnegie and Mellon, empire
builders, liked it concerns -
- because it was their money.
I mean, in the absence
of a better word, greed -
- It's good. Greed
is right. Greed works.
Greed, say what I said -
- rescues not only Teldar Paper,
but also a company called USA.
Thanks a lot.
When Gordon Gekko gave
his "greed is good" speech -
- it was intended to be a
protest against the system.
But the culture had
changed so much -
- that for some recent graduates
applying for jobs in banks -
- it became a license
to seek wealth.
The time of the Juppis began.
It was great to be an entrepreneur
and ride this wave crest.
Demanding a high level of taxation
and wealth distribution was old-fashioned.
Banking regulations began
to be dramatically deregulated.
Bankers' salaries rose -
- and the liberation of market
forces made the capitalists rich.
Major reforms of the
Reagan and Thatcher period -
- reduced the taxation of the rich -
- and it was expected to have a runoff
effect, which, however, did not come.
It was immediately clear that such
a policy would increase inequality.
The promise was that
the pie would be bigger.
There was a lower
percentage of the bigger pie -
- which would lead to a bigger piece.
In a sense, then,
there was no surprise -
- that inequality increased.
But it increased much
more than expected.
When we look at the
figures, we see it very clearly.
The lowest 90 percent had
almost come to a standstill.
Most of the growth had
gone to the top 10 percent.
Median income of a
typical American economy -
- was roughly the
same as 25 years earlier.
Actual wages in
relation to inflation -
- were at the level of 60 years ago.
Life expectancy had fallen.
These saw that the economy was
not to the benefit of the Americans.
In the 1990s, American banks
took American capitalism -
- Europe and Asia.
Our version was
sold to everyone -
- unregulated,
free-flow capitalism.
Life seemed to get better in the 1990s.
System globalization -
- lowered the price of goods for
ordinary people. Credit came on top of it.
When the credit boom started,
ordinary people got credit.
Suddenly, even
poor people got credit.
- You can search...
-... by phone.
Likewise, those with
a lousy credit history.
Completely wrong
people got a mortgage.
Investment banks created
increasingly exotic credit derivatives -
- in which bad credit was
replenished and its badness concealed.
It kept the system running
until it collapsed in 2008.
There is panic on Wall
Street. How did this happen?
22 percent of homeowners
are unable to repay their loans.
The American dream is under threat.
... higher interest rates...
Let's see. Last abbreviation.
37 percent interest per minute,
incomprehension of the contract...
Here is your new monthly installment.
When you gave me the money,
you said I would only pay in the future.
This is not the
future! This is now!
Calm down. This country
takes care of the middle class.
FORCED AUCTION TODAY
Don't be angry with the
banks. We fired the manager.
He barely got 50 million.
Banks are not afraid to
lend each other money.
- The credit market is frozen.
- Fear grows.
There was a fear that
I thought was justified -
- the loss of access to credit, as well
as the possibility to make transfers -
- withdraw cash or use
a credit or debit card.
The worst weeks
since the 1929 collapse.
- Dow Jones fell...
- Japan fell nearly 10 percent.
The British government
blamed US bankers.
As it began to erupt, there became concern
about how widespread it would spread.
Are we on the brink of
another great recession?
American taxpayers heard
that their money makes up...
-... a big support package.
- It must not fail.
$ 7.7 trillion was
lent to banks.
The market strengthened.
The news raised the
rate by almost 60 percent.
- Hong Kong more than 8 percent...
- Rates rose 15 percent.
The companies came and said:
"Give me $ 700 billion, or
everything you love will turn into shit."
And in return for this money,
which is by no means a ransom -
- Americans now own shit.
There was no collapse.
The system survived -
- and the opportunity to
reform it properly was set aside.
Stock prices fell sharply
and then rose sharply.
In addition, wealthy people
are involved in the stock market.
They kept their
jobs and bonuses.
Their companies did not suffer.
They made more money through
stock appreciation and dividends.
Bloomberg estimates that
banks earned 13 billion on this.
Growth was 39 percent.
17 major banks gave their
executives $ 1.6 billion in bonuses.
Wall Street and its
views had gained power.
It was a silent coup.
Democracies in general are
prone to being abducted by the elite.
Unless other sections of
society renew it in between -
- democracy continues in this direction -
- where power and wealth
are increasingly concentrated.
There are oligarchs all over
the world who buy political power.
THESE ELECTIONS ARE NOT FOR SALE
When capital is
too concentrated -
- it leads to excessive
influence in the media -
- and the financing of their
political campaigns and parties -
- who best support them.
"One dollar, one vote" -
- is completely contrary to the "one
man, one voice" principle of democracy.
Rationally, the
more a person has -
- the more he would
be willing to share it -
- but studies do not
point in this direction.
We brought guests
to the lab two at a time.
The coin dictated which one became
rich and which one became poor.
The rich player got
twice as much money.
He was allowed to roll both
dice, so he moved faster.
Each time he passed through the
starting screen, he received $ 200.
The poor only got $ 100.
The inequality was clear to the
players almost from the beginning.
The dynamics began to
stand out in a matter of minutes.
- How many five hundred do you have?
- Only one.
Really? I have three.
The rich player started behaving
differently. They became dominant.
The rich ate more fat.
As they moved around the
game board, they were louder.
They started banging the
game board with their piece.
I buy the whole board.
- They were clearly more rude.
- You can't afford it.
They started talking about
how well they were doing.
- Life is sweet.
- They downplayed the plight of others.
You will soon lose all your money.
- They lacked compassion.
- I'll buy it.
The results were consistent
among hundreds of players.
They won just
because of the coin -
- but they behaved as
if they deserved to win.
I seemed to have made good investments.
Among other things, we asked,
"Why did you win the game?"
One could imagine that the answer
would be, "Because I won the coin."
"I got double the benefits."
But none of the rich players -
- did not thank good
luck for his success -
- which randomly gave him a
good starting point in the game.
People who feel they
deserve their own success -
- are more likely to put their
own interests above others -
- and sabotage the well-being of others in
order to gain an advantage for themselves.
It is a rather detrimental
social consequence.
These are not rich people -
- but that the experience
of relative superiority -
- seems to affect
everyone in the same way.
Jes! We won the lottery!
- Oh my God. What is that?
- Golden suit.
I had to fight this over
with three rappers.
We are not like that. I'm afraid
money will change our family.
I wished you were quiet.
When we really make
poor people feel rich -
- the results are again the same.
Our former problems are
gone. Bills don't worry us -
- and we don't have to
save. We can only have fun.
Interested?
Oh God.
This is wonderful. Is
it a blood diamond?
- Yes. The children murdered each other.
- It is lovely.
The experience of being
wealthier is changing our minds -
- that we are better than others.
The brain understands that.
When we have people who
have always flown first class -
- and lived in a safe bubble -
- and have villas in different
countries to which they can move -
- what happens to taxation?
Much of the wealth
is transferred abroad.
People and businesses have been
moving themselves for decades -
- to avoid paying taxes from
which their subordinates benefit.
When you step out
of a big IT company -
- and you fell, hit your head and lay
on the sidewalk in a pool of blood -
- the taxes of the company have
not paid the ambulance that will.
It is a new system in capitalism.
It cannot continue.
The state must get -
- through taxes, their share
of the income of the rich.
The EU has ordered
the Irish government -
- collect nearly $ 15
billion in taxes from Apple.
15 billion is more than
the four-year cuts in Ireland.
Amazon’s tax breaks are illegal.
Facebook paid less
corporate tax than the teacher.
98,000 companies do not pay tax.
- The rich avoid taxes.
- Google, Microsoft, Facebook...
It works better for major
shareholders than for ordinary people.
Especially large technology companies
can transfer people and money.
They fly 10,000 meters
above national problems.
They create fewer jobs than the
big industrial companies before -
- but want more money.
It’s ironic that everything that
makes a smartphone smart -
- Internet, GPS, touch
screen technology -
- created with our tax money
in government agencies -
- but wealth does not flow
back into the ecosystem.
Ireland pays Google
Netherlands Holding BV.
- Is it for tax reasons?
- I believe so.
So it goes to Google Holdings
Ireland, which is in Bermuda?
In that case, your
winnings will go to Bermuda.
Google Alphabet announced in 2015 -
- to make $ 15.5 billion
in profits in Bermuda -
- but nothing really
happens in Bermuda.
This is an example of how
states steal taxes from each other.
Another way is through
wealth management.
It sells front companies
and numbered accounts -
- protected by banking
secrecy, for wealthy families.
What cannot be
measured cannot be taxed.
So we live in a
statistical fog over it -
- who has money or real
estate in New York and Paris.
When we review information,
we come across cover companies.
The fight against
tax havens is simple.
We need sanctions
against tax avoidance areas -
- and we need to change the
way we calculate taxable profits.
For example, Apple.
Imagine Apple making $
50 billion in profits globally -
- and 10% of its sales
took place in France.
France would then indicate -
- that 10% of Apple's
global profit, 5 billion -
- must be taxed in France.
The great thing about the system is that
companies can manipulate the winning countries -
- but not the location
of their customers.
Their customers are in
France, Germany, Britain, USA.
Globalization has opened
up a global society -
- but it also allows
companies to relocate jobs -
- and make a lot of money with it.
At the same time, the working class
and the middle class, which did well -
- have lost quality of
life and opportunities.
Their governments and companies -
- have done very little,
if anything, to address it.
Due to globalization, the US
and Europe are highly divided.
India, the Philippines
and China are not.
The Chinese believe that hard work
guarantees a better life for children.
That’s probably true, but it’s
no longer in the United States.
If you go to Beijing, Shenzhen,
Shanghai or Guangzhou -
- to any wealthy
Chinese city...
Income is higher in
Shanghai than in Portugal.
There you will meet
middle class Chinese.
I mean global
middle-class Chinese.
It’s a whole different China than
the one we saw 10 years ago.
China is already almost
the world's largest economy.
Soon it will be, but
it is state capitalist.
State capitalism means
that state-owned enterprises -
- are the most important
factors in the economy.
They are trying to make
money and build themselves -
- and sometimes compete against
each other in a fairly controlled manner.
Private, state-approved
companies are also involved.
They are actively supported
by the state and benefit from it.
Then there are hundreds
of millions of poor people.
They still want state capitalism -
- as long as they earn enough
to make the children do better.
Average income in China
since the late 1970s -
- has increased by about
800%. That is a huge increase.
But the income of the richest 1
percent has grown by 2,000 percent.
So it's a growing country -
- but its growth
is very unequal.
China shows what liberalized
capital does to income distribution.
Capital really needs to be regulated
much more tightly than other things.
Capital market liberalization -
- and there is a big difference between the
liberalization of trade, products and services.
It was one of the most important
doctrines of the Great Depression.
Modern capitalism is the free
movement of global capital.
The economic system has
changed over the last 40 years.
The share of the financial sector
in the economy has doubled.
It has created slower
growth, not faster.
When Adam Smith, the
father of modern capitalism -
- thought of the free market,
- he lived in a very different world.
Why start a company? I just
need capital, support and an idea.
Small and medium-sized
family businesses were the norm.
You can't get a decent hat from the whole village.
Why not? Women's
hats! My company!
He believed that the market
was only a middleman.
They had to deposit
everyone's savings in banks -
- and then lend them
to a local hairdresser.
It was a kind of banking utopia.
Smith couldn’t even imagine
a bank that was too big to fail -
- or a large multinational company
doing business in 120 countries -
- all of which have different legal
acts. This is a completely different world.
Statistics show that
only 15% of money -
- which comes from financial
corporations goes into productive loans.
Where does the remaining 85 percent go?
They are just moved
around in this closed chain.
It is property that is bought
and sold by the same people -
- whose assets are only growing.
It is easier for the rich to
keep wealth away from risk.
That creates a new social story.
It is easier to build a property.
Maybe some of the apartments will be left empty -
- but its value will rise
so much in five years -
- that the company can sit on the
assets and hope for an increase in value -
- instead of trying to
earn by taking a risk -
- setting up a factory or
inventing something new.
If you own a house, you
earn a lot more than you work.
People have become
real estate speculators.
It will completely change
the whole housing situation.
Eventually it starts to share.
Young people are particularly affected
by the current housing crisis in the West.
Many see it as a struggle
between generations.
Large age groups benefited from
buying houses when they were cheap -
- and they therefore have a
nice nest egg for retirement.
Young people cannot
even rent cheaply.
Those at the bottom are angry.
Houses earn more than they
do, and they have to rent them.
The poor and the middle
class can only hope -
- that the value of their
home goes up so much -
- that it overcomes other problems,
such as the loss of a pension -
- unemployment or child poverty.
Young people are
inherently more optimistic -
- but know they got worse cards.
Why do we have to take on £
50,000 in debt because of education?
Many feel they have become children.
Why does my smart 26-year-old
wire still have to live at home?
It is wondering both
he and my in-laws.
We have said to people,
"You are not poor."
"You are future millionaires.
Don't think about inequality."
"Just focus on throwing
jobs and running up the hill."
That is ironic.
Inequal societies have
less social mobility.
The steps of the ladder move away.
Those with money make
sure they stay on top.
It makes climbing
harder for others.
It can be seen over and over again.
The system is faulty. People
are not stupid. They realize it.
In practice, the economy is
becoming more productive -
- but the profits go to a
very small number of people.
Job growth is in the
low-wage sectors -
- where the work is neither
lucrative nor interesting.
The labor market is changing.
People are increasingly
employing themselves.
So companies no longer
pay holiday pay or pensions -
- and people have to take care
of themselves if they get sick -
- or want to take a vacation.
When Piketty says that
the future of capitalism -
- is highly unequal
and socially immobile -
- It's already here.
America will see the largest
division of wealth in history -
- when the generation that
earned after the Second World War -
- transfer wealth to their children.
The next generation will
receive about $ 12 billion -
- over the next 10-15 years.
It is invested so that it
generates more wealth.
It is very likely that inheritance
will become in the 21st century -
- as important as in 19th
century England and France.
Heritage allows a small proportion of the population -
- live a luxurious life -
- for inherited wealth is income.
The return on capital has almost always been -
- greater than economic growth.
If we look at the 18th century -
- the early stages of the
Industrial Revolution, and 2018 -
- the world economy has grown
by 1.6% a year for 300 years.
It's much less than
a capital injection -
which is about 4 to 5%.
Is it a disaster?
Not necessarily.
If everyone owned
part of the capital -
- and if everyone had their own home
and a retirement savings account -
- it would not be a bad thing that the return
on capital is higher than the increase.
The problem is the
concentration of ownership -
- and with it the concentration
of power in society.
It will lead to the return
of social hierarchies -
- and growing tensions among the
working class and the middle class.
Studies show that in
industrialized countries -
- two thirds will be
poorer than their parents.
That is a huge political trend.
People on the streets
are starting to get enough.
Scatter, or we will
have to use force!
They have had enough of
inequality and hopelessness.
They grab the closest
thing they can hold on to.
It is often their identity,
ethnicity and religion.
And they attack
the nearest enemy.
Huge amounts of unskilled
labor are coming to our country.
They bring drugs and crime
with them. They are rapists.
Behind mass immigration is Islam.
Behind mass
immigration is terrorism.
But it doesn't help. Prosecuting a
neighbor does not make you richer.
There are always politicians
who are attracted to -
- exploit growing inequalities.
It was seen before 1914.
I am afraid of the beginning of the 21st century.
We cannot regulate
international capitalism -
- so we cannot properly tax
companies and billionaires.
Instead, we target our
anger at immigrants.
It's safer.
But to address the
persistent rise in inequality -
- we must tax
capital progressively.
Nor can ownership be eternal.
When the capital is inherited
and every year when it is owned -
- those who own a
lot must give back -
- 1, 2, 3 percent or why
not 5 or 10 if owning billions.
If you invest capital
wisely and profitably -
- can continue a successful life.
But if the financial markets allow
high returns without doing anything -
- it must be crumbled by taxation.
This is how we can control
the concentration of capital -
- and thereby political power -
- as well as middle-class ownership.
WE MEET AGAIN
Many do not want to discuss strong
income and inheritance taxation -
- but if we do not regulate
capitalism in this way -
- its consequences are
catastrophic for everyone.
If we think long-term -
- must think of horses.
We used to have a lot of horses.
Horses were critical to
industrialization and then did not.
Industrial processes are
much more efficient than horses.
For technophiles who say
technology has always created jobs -
- and will therefore
continue to create, I say:
"Technology has created jobs" -
- "as long as there is
work that people can do."
But as technology begins to
interfere with people's core business...
... then people
become like horses.
That doesn't mean we can't
live a meaningful life anymore -
- but the model must be changed, because
capitalism is no longer a labor force.
The problem is that this
is going to happen soon.
When we look at cars
that don’t need a driver...
By the way, transportation services are
the second largest employer in the US -
- in all 50 states. These
jobs will disappear in 10 years.
So we need to address capital -
- because otherwise we will
have very serious problems.
We will leave the industrial economy
and move on to the post-industrial economy.
We need to choose what
future we will end up with.
We may have very
unequally distributed wealth.
Robots can do anything -
- but only a small
part owns robots.
As with Elysium: some live in
ecologically protected areas -
- and the rest in a rotten mess.
That is a political problem.
Modern challenges
for an equal society -
- are, of course, different
from those of the 20th century.
I want to emphasize that it
is not technically impossible.
It is mainly a political
and intellectual challenge.
The good news is that history
gives us cause for optimism.
If we want a united,
harmonious society -
- we must not allow
inequality to grow too great.
I am in favor of controlling capital
and overcoming capitalism...
... in more democratic ways in
which everyone can participate -
- and that allow us to see
ourselves in the 21st century.
promised changes.
The pressure for reform is supported.
The difference between capitalism
and communism is so great -
- that only concrete and barbed wire...
We want to shape
society in a different way.
On the streets of East Germany -
- people are demanding
democratic reforms...
Security police dragged
people out of the crowd -
- hit them in the head and
threw them into the trucks.
I was born in 1971. I was 18 in
1989 when the Berlin Wall broke.
I listened to the radio
when communism collapsed.
During my studies, I traveled to
Romania, Hungary and Russia.
I saw the consequences of the collapse.
I saw a failed economic
and social system.
The political system
that promised exemption -
- but brought mere misery
and political recession.
When the communist card house collapsed -
- the capitalist argument was strengthened.
But it went too far.
Belief in an unregulated
market was endless.
In addition, private ownership
began to be glorified.
As a result, inequality
was on the rise -
- as well as nationalism
and xenophobia -
- as before the First World War.
The 21st century scares me,
because history suggests it -
- that we run the risk of
returning to the capitalist system -
- which is like the unequal world
of the 19th and 20th centuries.
CAPITAL IN THE 21ST CENTURY
Capital: The financial or equivalent
assets of a person or organization
In 18th century Europe -
- capital was concentrated
on a small number.
The aristocracy represented
one percent of the population.
Money limited social mobility.
Hard work and training
did not help in climbing up.
Often in literature, films
and popular culture -
- can track the importance
of capital throughout history.
It's a much gloomier story -
- like an idyllic march
towards development and light.
In the 18th century, the lives
of the poor were miserable.
If there was luck, maybe there was a servant.
All the others were
hand-to-mouth workers, travelers -
- which the landowners
treated as they saw fit.
Of course, there were no benefits, no
health care, no education, and nothing else.
Poverty was the death penalty.
The average life expectancy in
the 18th century was 17 years.
The capital at that time was
money, loans and land ownership.
The man sitting in the fort collected
taxes from his own farm workers.
We know from different
movies what it looked like.
I can hardly afford the perfume.
Has Roulet paid its rent?
- Roulet died last week.
- Without paying rent.
- Where did he die?
- I'm starving.
Hunger is a pleasure for the peasants.
Gabelle, you are a humanitarian.
You value people equally.
It's very naive.
Inheritance was an obsession for the
rich. The eldest son inherited the capital.
He got everything: money, a house, lands.
It only made him
very influential at birth.
These first boys also
had great political power.
Many of them were MPs, elites.
As a result, they wanted to
protect their income and their world.
It never occurred to them
that the poor deserved -
- redistribution of wealth.
They strongly opposed taxation.
This is how the aristocracy worked not
only in Britain, but throughout Europe.
The aim was to preserve
the power of the aristocrats.
Thomas Piketty’s examples of
Austen and Balzac are illustrative.
Jane Austen’s books
revolve around money.
No money earned by work -
- but it has been inherited as land.
Mr Darcy has huge lands
of pride and prejudice .
He doesn't even have to be there.
The country brings him money.
Thank you for coming.
- She looks unhappy.
- But he's not really poor.
He earns 10,000 a year
and owns half of Derbyshire.
The unfortunate half?
Austen created a fantasy in
which wit gained some wealth.
But in reality, Darcy would
never have taken Lizzie Bennett -
- who didn't have a penny of money.
She marries an heiress,
possibly even a cousin -
- to create even greater wealth.
Money fucked money.
Love had nothing to do with it.
Now we can see almost a
return to the 18th century.
Wealth inherited in
Britain is all in all again.
Today, one percent of the population
owns 70 percent of the country.
We have always had an elite
that recreates its privilege -
- and monopolize economic,
social and cultural capital.
The elite will remain in power and
pass on privileges to the next generation -
- also by modifying
our way of thinking.
Economists say poverty
is an excellent motivator -
- development and inventions.
It is thought that competition
makes people try harder.
The problem is that
extreme inequality -
- increases economic,
social and political stress.
If the elite defends
their ranks so firmly -
- that no one else can rise, the
result will be a complete revolution.
Life in the 18th
century was not static.
New policies call for
the same rights for all -
- and the cessation of inherited benefits.
The motto of the French Revolution
was freedom, fraternity and equality.
There was a brotherhood in
store. Everyone had to be free.
But in a short time the
bankers government -
- began to create the elite again.
Before we fought for freedom
Today we fight for bread
Equality has the weird side
that death brings to everyone
Take your seat, take the risk
Vive la France, Vive la France
The French Revolution was
based in part on hypocrisy.
The vision of equality was
optimistic and a little naive at best -
- and at worst a little cynical.
We believed that
equality would happen -
- spontaneously and
spontaneously, a bit like in a fairy tale.
In reality, it requires
political institutions -
- education, healthcare,
public transport -
- and high-income taxation.
But these were not there at the
time of the French Revolution.
In the Industrial Revolution of the
late 18th and early 19th centuries -
- manual work
changed to machine.
The machines began to make
wool, cotton and various commodities.
They make products
faster and unify them.
It increases returns.
Capital is no longer
something fixed, land -
- or even the ability to lend money to others.
People finally realized they
could expand their factory -
- by selling goods,
holding income -
- and placing them in the
expansion of the factory.
That is what modern
capitalism allows us to do.
Capital becomes something
that can be constantly expanded.
But the gap between wages
and productivity was large -
- and feudal labor traditions
were in the figures for a long time.
In Britain, it was illegal to resign
from a job without permission.
It was actively used in
the mid-19th century -
- at the height of capitalism in England,
the most advanced country in the world -
- where workers were
imprisoned and beaten -
- because the strike was illegal.
The idea arose to
escape the old world -
- and to establish a
new, more equal society.
When the new world of New Zealand,
Australia and Canada was established -
- the founders were
refugees fleeing Europe -
- at a time when capitalism
was really gaining a foothold.
Therefore, many of these people
wanted to get out of the country.
They wanted a
more equal society.
There was a desire to leave the class society -
- but it was done freely. It
was not a political movement.
The wealthy began to
rule right from the start.
For the white man in the 19th century -
- Australia and USA
were the best places to go.
There was enough land.
The only problem
was labor mobilization.
A small family farmer could
only mobilize his own children.
But the owner of the slaves could
go to New Orleans, take out a loan -
- to buy slaves from the
New Orleans slave market -
- and take them to Alabama and
begin to clear the land and grow cotton.
The profits made it possible to
buy more slaves and more land.
The slave economy was thus also
part of the cycle of wealth accumulation.
But the slave owners
did not just have labor.
They also had access to capital -
- because slaves act as guarantees.
If you are considering
giving a loan to someone -
- and he may give
guarantees as slaves or land -
- slaves were better because
they were easier to move and sell.
The 19th century was the time -
- in which division of labor, inequality
and power relations were defined.
First with the help of slaves
and then with violent colonialism.
It is difficult to say what part of the
current wealth of European countries -
- dates from the colonial period -
- but the advantage achieved
by the Industrial Revolution -
- was clearly
connected to the warlord.
Between 1870 and 1914 -
- Great Britain and France,
two large colonial powers -
- owned so much of
the rest of the world -
- and therefore received so much
profit, interest, dividends and rents -
- that they could afford to
continue investing in other countries.
The rest of the world
was at their service.
It is not worth increasing
production if no one buys products -
- so fashion spurred
the industrial revolution.
In the 19th century, fashion
already reached the working class.
Even working women
tried to keep up with fashion.
"You can't put that.
It's from last season."
It was incomprehensible in
the 16th and 17th centuries.
At the time, it was
thought it was still working.
The fastest growing industry in
the 19th century was Christmas.
In the 18th and 17th centuries, Christmas
was not celebrated very strangely.
That's when we drank
between friends and family -
- but the gifts were given
at the New Year at most.
By the 1850s, we had Christmas
candies, cards, and a Christmas tree.
People went bankrupt
to get Christmas -
- and the manufacturers seized it
as a way to make a lot of money.
New technologies, railway, telegraph,
mass production, large companies -
- innovation and traditional
production increased inequality.
It was a time of huge conflicts.
That was when there was an
open war in the mines of Colorado -
- between militias hired
by strikers and capitalists.
The U.S. military was
used to end the strikes.
Similarly, there is an economic
transfer going on today...
... for trade and technology -
- have the same opportunities
to create monopolies.
It is once again creating a
small, very wealthy class.
- 43 million. - 75 million.
107 million. Sold.
Around 1914 in
a city like Paris -
- 1% of the population
owned 70% of the wealth.
Two-thirds of the population
died without any wealth.
Nationalism and competition between
European countries are on the rise.
It is partly due to
strong social tensions -
- due to stagnant living
standards and inequality.
Competition between
countries, nationalism -
- is often an elite way to make
people forget class conflicts -
- and focus instead
on national identity.
All this led to the outbreak
of the First World War -
- in the summer of 1914.
In Berlin, the Germans know
that a moment of glory is at hand.
There was cultural
militarism going on in Europe.
The countries competed with each
other for both regions and trade routes.
The warlord tirelessly
circles his troops.
The British Empire had a
quarter of the world’s population.
Other countries wanted their share
of the cake, especially Germany.
Many of the new capitalists
still thought feudally.
Germany in particular had
junkers, great industrialists -
- who think nothing
beats a decent fight.
The British and the Allies
believed in the German conquest -
- be over in a few months.
But it did last for years and
destroyed the population of both.
World War I was
a battle for capital.
It was followed by a
huge economic collapse.
It gave rise to a new idea, mainly due
to the bankruptcy of the government -
- that taxes can
be a good thing -
- and that the only way to get
money is to tax the aristocracy.
The working class and the middle
class no longer had anything to tax.
It marked the beginning of the
end of the power of the aristocracy.
The 1920s also saw an increase in the
power of women and the working class.
Both said to the government:
"We fought and sacrificed.
Give something back."
Suddenly, the whole idea that
the working class and women -
- have to tolerate the conditions of
society, were completely abolished.
Follow the crowds to the city
of miracles, the city of passion.
Follow the crowds and
make money. Earn properly.
The 20th century was
perhaps an absurd abundance.
The shares went up, but
they were still invested -
- because the magic of Wall
Street is always believed.
We have a myth in this country -
- that the interest of Wall Street is in the
interest of the people, but it is not true.
Many banks sold products
they knew were bad.
Vague bankers
made obscure trades.
There was hardly any
legislation. The capital was free.
The bubble of the 1920s was like
many other bubbles. It was euphoria.
The shares rose and they
received a loan to buy the shares.
The courses went up further
and everyone was excited.
At the same time, the labor market
was going through a huge upheaval.
Many got rich, but many were also at
the bottom. Not so much in between.
An attempt was made to
close the gap with credit.
Credit spiral bait 5
- which burst, like bubbles always.
That time many
bankers went to jail -
- and changes were made to the legislation.
In particular, the Glass-Steagall Act,
which strengthened the banking system -
- until it was repealed in 1999.
After the economic crisis, many
countries ended up in a trade war.
Tariffs led to a snowball effect
that increased suffering everywhere.
It contributed to the
Great Depression.
If you read John
Steinbeck's Fruits of Anger -
- you understand the shock caused by
the complete collapse of the economy.
I was told to drive you away.
From your own country?
It's not my fault.
Whose then?
The land is owned by the Shawnee
Land and Livestock Company.
- Who is it?
- No one. It's a company.
I guess there's a leader out there
who knows what a shotgun does?
He is a mere leader who obeys
the orders of the East Coast.
- Then who are we shooting?
- I can not say.
If I could, I would tell. I don't
even know who to blame.
No one drives me away
from my own country!
My grandfather took
this country 70 years ago.
My father was born here. We
were all born here. Some died.
Banks collapsed one at a
time. Everyone lost their savings.
As a result, demand elsewhere decreased -
- which led to bankruptcies
and unemployment.
UNEMPLOYED ANY JOB IS ELIGIBLE
The great crisis of the 1930s
caused such great trauma -
- that the people and politicians -
- accused capitalism of it.
The suffering of the United States
had grown into absolute poverty.
As a result, they were ready
for tough political solutions.
This country is demanding action now.
Price regulation, large
changes in labor costs -
- and all of Roosevelt's actions
were completely new to the Americans.
It led to the construction and
redistribution of huge infrastructure.
The existence of the communist
alternative frightened the capitalists -
- to think that if even some of the
equality issues are not addressed -
- they lose the war of idealism.
Roosevelt borrowed some of
the ideas from the New Deal -
- such as strong state participation
in the economy and regulations.
It was understood that if the
state does not try to increase jobs -
- and prevent people from
starving, there is no stability.
The collapse of Wall Street
created poverty in the US and Britain -
- but its impact in Germany was
enormous, as Germany was already poor.
It had to pay compensation
after the First World War.
It caused huge inflation
in the Weimar Republic.
At worst, even a barrel of
banknotes was not enough for bread.
It can be directly linked to the rise
of fascism and poverty in Europe.
It is understandably tempting
when Adolf Hitler comes and says:
"I'm making Germany
big and awesome again."
Actually, he says that
Germany is poor Britain -
- Because of America and Europe.
These trampled people
are open to fascism -
- racism, exclusionism and
the conquest of other countries.
No more class divisions!
We will become one nation!
And you, my young, are this people.
One of many American
aircraft factories.
One bomber and thousands on the way.
Angel of Death.
The recession was overcome by
turning the economy into World War II.
Its scale was something
unprecedented.
The governments of all the
countries took over the production.
It was an industrial war, so
production was the one under which -
- the war would be
won or destroyed.
The labor movement
gained a lot of political power.
If you produced anything for the
war, you had to recognize the union.
Paying all of it required
an increase in taxes.
This era was the
end of feudalism.
It finally got the influence of the aristocracy
out of the industrialized countries.
Wars themselves are
used to destroy capital.
First, entire cities are
destroyed by bombing.
But only a third of
the capital goes into it.
Where do the other
two-thirds come from?
One third comes from inflation,
which destroys public debt -
- which was given to the
citizens to finance the war.
The second third
consists of new rules -
- such as rent regulation,
nationalization and regulations.
But the collapse of capital is
not necessarily a bad thing -
- because the power relations
of society have changed.
Everyone is equal
in the face of death.
Wars, death and despair -
- there are times when we
realize that we are all human.
This new political
context eventually led to -
- enlightenment and equality,
proclaimed in the 18th century.
The social atmosphere was
quite different after World War II.
The change in attitude
was greater than ever.
It is different than before.
We receive sickness and
unemployment benefits, pensions -
- compensation for accidents at work,
widow's pension, maternity allowance...
A social benefit system was created.
There were sickness and holiday pay.
In Britain, free health
care was created for life.
Industry nationalized -
- and inheritances and
property began to be taxed.
It works just fine.
Television with its entertainment
promises is part of the peace deal.
It combines private
stimulation and public service.
Capital was also constrained
in America in the 50s.
Rents were regulated and
landowners were restricted.
Capital was not allowed to rage
freely and increase. It had to be tamed.
This is a land of whole blood.
It was thought that
capital must help people.
The idea that the free capital of the
rich is in the interest of the people -
- questioned worldwide.
In the 50s, it was thought
that everyone could get wealth.
Immediately after World
War II, those born had life -
- which previous generations
could not even imagine.
For the first time, hard work
and studies could help the top.
Good day, Mrs.
Thatcher. Go sit down.
My father dropped out of
school at the age of 12 or 13.
He did not have opportunities for
postgraduate studies like we did.
Parents always try -
- give their children
opportunities they did not have.
Would you like a female prime minister?
Depends on who it is.
I don’t think I’ll see a female
prime minister in my lifetime.
Thatcher represents
incredible social mobility.
She was the daughter of an ordinary
merchant from the north. He visited Oxford.
She became the first female
prime minister as well as the rich.
Social mobility was
possible in the new society.
The middle class and lower middle
class dominated the positions of power.
If we look at the development
of inequality in the 20th century -
- the most significant change
is in the strong middle class.
Until 1914, the middle
class did not exist.
It was almost as
poor as the poorest.
The next 30 years of the war, during
which the economy began to rise -
- were a time of increasing
purchasing power -
- especially for low-income
and middle-class people.
They were able to increase consumption
and improve their standard of living -
- as well as saving for your
own house and raising capital.
The kitchen comes here so we can
see the children playing in the yard.
Junior? How many do you
want? Hopefully no more than six.
They are not very rich
nor completely poor -
- but they still have
national capital.
In recent decades,
middle-class wealth has declined -
- strongly in the USA and
less strongly in Europe.
We have clearly gone
in a different direction -
- which can be worrying
considering the 21st century.
One of the biggest challenges
is the shrinking middle class -
- and the risk of it becoming
a poor middle class as before.
The decades that followed
World War II were significant.
The war effort led to a
great social consensus.
We had solidarity -
- but it was based
on a stratified society.
There were other
forms of inequality.
It began to change in the 1960s
with the civil rights movement -
- and other subsequent
social movements.
WE MARCH WITH SELMA!
Blacks are still not free.
I think it is politically important
that the middle class is broad.
According to modernization theory, when
incomes rise, the middle class emerges.
It is better educated and
therefore wants to be more involved.
Then everything erupted in the 70s.
You will be watching NBC’s evening
news on Wednesday, October 17th.
Good evening. The war in the Middle
East is now affecting the whole world.
Oil-producing countries
made oil a political weapon.
In Kuwait, it was announced
that the price of oil would rise.
It was voted on at night. It
will take until Israel withdraws.
The oil crisis hit all industrialized
countries. Oil was used for everything.
Gas-free Sundays
start next month.
The price of foreign oil
rose from 3 to 12 dollars.
Quadrupling the price of oil -
- led to an increase in prices,
but wages did not keep up.
Unions began demanding
higher wages due to rising prices -
- when companies raised
prices further due to wages.
This gave rise to a price and wage spiral -
- and followed an era of
high inflation and low growth.
It is called stagflation.
Globalization was about to begin.
Emerging markets were coming.
Europe was back on its feet, and
Germany began to produce again.
The global picture changed. US
capital was no longer in control.
The 1970s also saw -
- a very isolated way of
thinking about the balance sheet.
Costs were cut. Labor was
seen as a cost, not a resource.
No investment was made in
employees. Wages were not raised.
It began to give rise to the big X, with
Wall Street moving in a different direction.
Germany and Japan
went the other way.
Employees sat on company boards
and were allowed to participate.
It brought great benefits.
Utilization of expertise -
- increased efficiency and gained
market share from US companies.
When it started, the
US was not prepared.
Small cars came across the sea to
change the country’s buying habits.
Nice car. What is the name of it?
- Isuzu. - Cheers.
They cross the road,
beat the heart, whirl...
Cadillac, Subaru!
Reagan as president.
Japanese car production is
almost double that of the US.
We used to be the world's
largest car manufacturer.
That is no longer the case.
Every country wants to tell
why it is richer than the others -
- or why it is impoverished.
That story Reagan and
Thatcher told their peoples.
Thanks a lot.
Can anyone look at our diminished
power in the world and say:
"Let's take another four years of this"?
No!
If you have lost your
hope, we will restore it -
- and take us on a crusade
to make America great again.
In the United States, it
was felt that Germany was
- as well as Japan. These were
the countries that lost the war.
Reagan and to some
extent Thatcher used it to say:
"These countries are catching up with
us. Something needs to change. What?"
"This is because of the New
Deal welfare state model."
"It has made us weak."
"We must return to
19th-century mythical capitalism" -
- "to regain our strength."
From there comes Prime Minister
Rover Mrs. Thatcher on a ride.
Margaret Thatcher,
daughter of a food retailer -
- studied with the privileged
at the University of Oxford.
We have work to do.
To increase the value of our assets
so that we can increase our investment -
- and free up capital -
- the power of the workforce had to be suppressed.
THE LABOR PARTY DOES NOT WORK
Here is some of the two-week
rubbish that is outside the landfill.
It has been closed for two weeks
due to a garbage drivers strike.
The teachers ’union
demands salaries.
33,000 pupils are out of
school in Haringey, London.
Canceled surgeries
appear as empty beds.
It must be remembered that the
strikes were problematic at the time.
The people did not like
how some unions behaved.
I cook everything because
the sewer workers are on strike.
The water is contaminated and
can cause typhoid fever. Can't I?
Something had to be done against
the power of labor against capital -
- and it's not easy.
The government has moved state
borders backwards and still does.
Millions have already bought shares -
- British Gas, British Airways
and our country's airports.
Flight 307 has been canceled so far.
Hostility to trade unions
began in the 1980s.
It condensed when Reagan
fired air traffic controllers.
For those who did not
come to work in the morning:
If you do not come to work within 48
hours, your employment will be terminated.
Nothing else.
It was like a green light
for the whole industry.
President Reagan has
begun dismissing the strikers.
The government said it was
ready to operate without them.
Five union leaders
have been imprisoned.
It is important to understand
that inequality has increased -
- because of the money
generated in the economy -
- workers are receiving an ever smaller
share. The share of wages is declining.
The return margin, ie the amount
of capital that owners receive -
- is growing.
It is basically about power.
Thank you for this
opportunity, Mr Cromwell.
You allowed Teldar Paper's
largest shareholder to speak.
America has become
a second-class power.
In free market times, when our
country was an industrial power -
- was liable to the shareholders.
Carnegie and Mellon, empire
builders, liked it concerns -
- because it was their money.
I mean, in the absence
of a better word, greed -
- It's good. Greed
is right. Greed works.
Greed, say what I said -
- rescues not only Teldar Paper,
but also a company called USA.
Thanks a lot.
When Gordon Gekko gave
his "greed is good" speech -
- it was intended to be a
protest against the system.
But the culture had
changed so much -
- that for some recent graduates
applying for jobs in banks -
- it became a license
to seek wealth.
The time of the Juppis began.
It was great to be an entrepreneur
and ride this wave crest.
Demanding a high level of taxation
and wealth distribution was old-fashioned.
Banking regulations began
to be dramatically deregulated.
Bankers' salaries rose -
- and the liberation of market
forces made the capitalists rich.
Major reforms of the
Reagan and Thatcher period -
- reduced the taxation of the rich -
- and it was expected to have a runoff
effect, which, however, did not come.
It was immediately clear that such
a policy would increase inequality.
The promise was that
the pie would be bigger.
There was a lower
percentage of the bigger pie -
- which would lead to a bigger piece.
In a sense, then,
there was no surprise -
- that inequality increased.
But it increased much
more than expected.
When we look at the
figures, we see it very clearly.
The lowest 90 percent had
almost come to a standstill.
Most of the growth had
gone to the top 10 percent.
Median income of a
typical American economy -
- was roughly the
same as 25 years earlier.
Actual wages in
relation to inflation -
- were at the level of 60 years ago.
Life expectancy had fallen.
These saw that the economy was
not to the benefit of the Americans.
In the 1990s, American banks
took American capitalism -
- Europe and Asia.
Our version was
sold to everyone -
- unregulated,
free-flow capitalism.
Life seemed to get better in the 1990s.
System globalization -
- lowered the price of goods for
ordinary people. Credit came on top of it.
When the credit boom started,
ordinary people got credit.
Suddenly, even
poor people got credit.
- You can search...
-... by phone.
Likewise, those with
a lousy credit history.
Completely wrong
people got a mortgage.
Investment banks created
increasingly exotic credit derivatives -
- in which bad credit was
replenished and its badness concealed.
It kept the system running
until it collapsed in 2008.
There is panic on Wall
Street. How did this happen?
22 percent of homeowners
are unable to repay their loans.
The American dream is under threat.
... higher interest rates...
Let's see. Last abbreviation.
37 percent interest per minute,
incomprehension of the contract...
Here is your new monthly installment.
When you gave me the money,
you said I would only pay in the future.
This is not the
future! This is now!
Calm down. This country
takes care of the middle class.
FORCED AUCTION TODAY
Don't be angry with the
banks. We fired the manager.
He barely got 50 million.
Banks are not afraid to
lend each other money.
- The credit market is frozen.
- Fear grows.
There was a fear that
I thought was justified -
- the loss of access to credit, as well
as the possibility to make transfers -
- withdraw cash or use
a credit or debit card.
The worst weeks
since the 1929 collapse.
- Dow Jones fell...
- Japan fell nearly 10 percent.
The British government
blamed US bankers.
As it began to erupt, there became concern
about how widespread it would spread.
Are we on the brink of
another great recession?
American taxpayers heard
that their money makes up...
-... a big support package.
- It must not fail.
$ 7.7 trillion was
lent to banks.
The market strengthened.
The news raised the
rate by almost 60 percent.
- Hong Kong more than 8 percent...
- Rates rose 15 percent.
The companies came and said:
"Give me $ 700 billion, or
everything you love will turn into shit."
And in return for this money,
which is by no means a ransom -
- Americans now own shit.
There was no collapse.
The system survived -
- and the opportunity to
reform it properly was set aside.
Stock prices fell sharply
and then rose sharply.
In addition, wealthy people
are involved in the stock market.
They kept their
jobs and bonuses.
Their companies did not suffer.
They made more money through
stock appreciation and dividends.
Bloomberg estimates that
banks earned 13 billion on this.
Growth was 39 percent.
17 major banks gave their
executives $ 1.6 billion in bonuses.
Wall Street and its
views had gained power.
It was a silent coup.
Democracies in general are
prone to being abducted by the elite.
Unless other sections of
society renew it in between -
- democracy continues in this direction -
- where power and wealth
are increasingly concentrated.
There are oligarchs all over
the world who buy political power.
THESE ELECTIONS ARE NOT FOR SALE
When capital is
too concentrated -
- it leads to excessive
influence in the media -
- and the financing of their
political campaigns and parties -
- who best support them.
"One dollar, one vote" -
- is completely contrary to the "one
man, one voice" principle of democracy.
Rationally, the
more a person has -
- the more he would
be willing to share it -
- but studies do not
point in this direction.
We brought guests
to the lab two at a time.
The coin dictated which one became
rich and which one became poor.
The rich player got
twice as much money.
He was allowed to roll both
dice, so he moved faster.
Each time he passed through the
starting screen, he received $ 200.
The poor only got $ 100.
The inequality was clear to the
players almost from the beginning.
The dynamics began to
stand out in a matter of minutes.
- How many five hundred do you have?
- Only one.
Really? I have three.
The rich player started behaving
differently. They became dominant.
The rich ate more fat.
As they moved around the
game board, they were louder.
They started banging the
game board with their piece.
I buy the whole board.
- They were clearly more rude.
- You can't afford it.
They started talking about
how well they were doing.
- Life is sweet.
- They downplayed the plight of others.
You will soon lose all your money.
- They lacked compassion.
- I'll buy it.
The results were consistent
among hundreds of players.
They won just
because of the coin -
- but they behaved as
if they deserved to win.
I seemed to have made good investments.
Among other things, we asked,
"Why did you win the game?"
One could imagine that the answer
would be, "Because I won the coin."
"I got double the benefits."
But none of the rich players -
- did not thank good
luck for his success -
- which randomly gave him a
good starting point in the game.
People who feel they
deserve their own success -
- are more likely to put their
own interests above others -
- and sabotage the well-being of others in
order to gain an advantage for themselves.
It is a rather detrimental
social consequence.
These are not rich people -
- but that the experience
of relative superiority -
- seems to affect
everyone in the same way.
Jes! We won the lottery!
- Oh my God. What is that?
- Golden suit.
I had to fight this over
with three rappers.
We are not like that. I'm afraid
money will change our family.
I wished you were quiet.
When we really make
poor people feel rich -
- the results are again the same.
Our former problems are
gone. Bills don't worry us -
- and we don't have to
save. We can only have fun.
Interested?
Oh God.
This is wonderful. Is
it a blood diamond?
- Yes. The children murdered each other.
- It is lovely.
The experience of being
wealthier is changing our minds -
- that we are better than others.
The brain understands that.
When we have people who
have always flown first class -
- and lived in a safe bubble -
- and have villas in different
countries to which they can move -
- what happens to taxation?
Much of the wealth
is transferred abroad.
People and businesses have been
moving themselves for decades -
- to avoid paying taxes from
which their subordinates benefit.
When you step out
of a big IT company -
- and you fell, hit your head and lay
on the sidewalk in a pool of blood -
- the taxes of the company have
not paid the ambulance that will.
It is a new system in capitalism.
It cannot continue.
The state must get -
- through taxes, their share
of the income of the rich.
The EU has ordered
the Irish government -
- collect nearly $ 15
billion in taxes from Apple.
15 billion is more than
the four-year cuts in Ireland.
Amazon’s tax breaks are illegal.
Facebook paid less
corporate tax than the teacher.
98,000 companies do not pay tax.
- The rich avoid taxes.
- Google, Microsoft, Facebook...
It works better for major
shareholders than for ordinary people.
Especially large technology companies
can transfer people and money.
They fly 10,000 meters
above national problems.
They create fewer jobs than the
big industrial companies before -
- but want more money.
It’s ironic that everything that
makes a smartphone smart -
- Internet, GPS, touch
screen technology -
- created with our tax money
in government agencies -
- but wealth does not flow
back into the ecosystem.
Ireland pays Google
Netherlands Holding BV.
- Is it for tax reasons?
- I believe so.
So it goes to Google Holdings
Ireland, which is in Bermuda?
In that case, your
winnings will go to Bermuda.
Google Alphabet announced in 2015 -
- to make $ 15.5 billion
in profits in Bermuda -
- but nothing really
happens in Bermuda.
This is an example of how
states steal taxes from each other.
Another way is through
wealth management.
It sells front companies
and numbered accounts -
- protected by banking
secrecy, for wealthy families.
What cannot be
measured cannot be taxed.
So we live in a
statistical fog over it -
- who has money or real
estate in New York and Paris.
When we review information,
we come across cover companies.
The fight against
tax havens is simple.
We need sanctions
against tax avoidance areas -
- and we need to change the
way we calculate taxable profits.
For example, Apple.
Imagine Apple making $
50 billion in profits globally -
- and 10% of its sales
took place in France.
France would then indicate -
- that 10% of Apple's
global profit, 5 billion -
- must be taxed in France.
The great thing about the system is that
companies can manipulate the winning countries -
- but not the location
of their customers.
Their customers are in
France, Germany, Britain, USA.
Globalization has opened
up a global society -
- but it also allows
companies to relocate jobs -
- and make a lot of money with it.
At the same time, the working class
and the middle class, which did well -
- have lost quality of
life and opportunities.
Their governments and companies -
- have done very little,
if anything, to address it.
Due to globalization, the US
and Europe are highly divided.
India, the Philippines
and China are not.
The Chinese believe that hard work
guarantees a better life for children.
That’s probably true, but it’s
no longer in the United States.
If you go to Beijing, Shenzhen,
Shanghai or Guangzhou -
- to any wealthy
Chinese city...
Income is higher in
Shanghai than in Portugal.
There you will meet
middle class Chinese.
I mean global
middle-class Chinese.
It’s a whole different China than
the one we saw 10 years ago.
China is already almost
the world's largest economy.
Soon it will be, but
it is state capitalist.
State capitalism means
that state-owned enterprises -
- are the most important
factors in the economy.
They are trying to make
money and build themselves -
- and sometimes compete against
each other in a fairly controlled manner.
Private, state-approved
companies are also involved.
They are actively supported
by the state and benefit from it.
Then there are hundreds
of millions of poor people.
They still want state capitalism -
- as long as they earn enough
to make the children do better.
Average income in China
since the late 1970s -
- has increased by about
800%. That is a huge increase.
But the income of the richest 1
percent has grown by 2,000 percent.
So it's a growing country -
- but its growth
is very unequal.
China shows what liberalized
capital does to income distribution.
Capital really needs to be regulated
much more tightly than other things.
Capital market liberalization -
- and there is a big difference between the
liberalization of trade, products and services.
It was one of the most important
doctrines of the Great Depression.
Modern capitalism is the free
movement of global capital.
The economic system has
changed over the last 40 years.
The share of the financial sector
in the economy has doubled.
It has created slower
growth, not faster.
When Adam Smith, the
father of modern capitalism -
- thought of the free market,
- he lived in a very different world.
Why start a company? I just
need capital, support and an idea.
Small and medium-sized
family businesses were the norm.
You can't get a decent hat from the whole village.
Why not? Women's
hats! My company!
He believed that the market
was only a middleman.
They had to deposit
everyone's savings in banks -
- and then lend them
to a local hairdresser.
It was a kind of banking utopia.
Smith couldn’t even imagine
a bank that was too big to fail -
- or a large multinational company
doing business in 120 countries -
- all of which have different legal
acts. This is a completely different world.
Statistics show that
only 15% of money -
- which comes from financial
corporations goes into productive loans.
Where does the remaining 85 percent go?
They are just moved
around in this closed chain.
It is property that is bought
and sold by the same people -
- whose assets are only growing.
It is easier for the rich to
keep wealth away from risk.
That creates a new social story.
It is easier to build a property.
Maybe some of the apartments will be left empty -
- but its value will rise
so much in five years -
- that the company can sit on the
assets and hope for an increase in value -
- instead of trying to
earn by taking a risk -
- setting up a factory or
inventing something new.
If you own a house, you
earn a lot more than you work.
People have become
real estate speculators.
It will completely change
the whole housing situation.
Eventually it starts to share.
Young people are particularly affected
by the current housing crisis in the West.
Many see it as a struggle
between generations.
Large age groups benefited from
buying houses when they were cheap -
- and they therefore have a
nice nest egg for retirement.
Young people cannot
even rent cheaply.
Those at the bottom are angry.
Houses earn more than they
do, and they have to rent them.
The poor and the middle
class can only hope -
- that the value of their
home goes up so much -
- that it overcomes other problems,
such as the loss of a pension -
- unemployment or child poverty.
Young people are
inherently more optimistic -
- but know they got worse cards.
Why do we have to take on £
50,000 in debt because of education?
Many feel they have become children.
Why does my smart 26-year-old
wire still have to live at home?
It is wondering both
he and my in-laws.
We have said to people,
"You are not poor."
"You are future millionaires.
Don't think about inequality."
"Just focus on throwing
jobs and running up the hill."
That is ironic.
Inequal societies have
less social mobility.
The steps of the ladder move away.
Those with money make
sure they stay on top.
It makes climbing
harder for others.
It can be seen over and over again.
The system is faulty. People
are not stupid. They realize it.
In practice, the economy is
becoming more productive -
- but the profits go to a
very small number of people.
Job growth is in the
low-wage sectors -
- where the work is neither
lucrative nor interesting.
The labor market is changing.
People are increasingly
employing themselves.
So companies no longer
pay holiday pay or pensions -
- and people have to take care
of themselves if they get sick -
- or want to take a vacation.
When Piketty says that
the future of capitalism -
- is highly unequal
and socially immobile -
- It's already here.
America will see the largest
division of wealth in history -
- when the generation that
earned after the Second World War -
- transfer wealth to their children.
The next generation will
receive about $ 12 billion -
- over the next 10-15 years.
It is invested so that it
generates more wealth.
It is very likely that inheritance
will become in the 21st century -
- as important as in 19th
century England and France.
Heritage allows a small proportion of the population -
- live a luxurious life -
- for inherited wealth is income.
The return on capital has almost always been -
- greater than economic growth.
If we look at the 18th century -
- the early stages of the
Industrial Revolution, and 2018 -
- the world economy has grown
by 1.6% a year for 300 years.
It's much less than
a capital injection -
which is about 4 to 5%.
Is it a disaster?
Not necessarily.
If everyone owned
part of the capital -
- and if everyone had their own home
and a retirement savings account -
- it would not be a bad thing that the return
on capital is higher than the increase.
The problem is the
concentration of ownership -
- and with it the concentration
of power in society.
It will lead to the return
of social hierarchies -
- and growing tensions among the
working class and the middle class.
Studies show that in
industrialized countries -
- two thirds will be
poorer than their parents.
That is a huge political trend.
People on the streets
are starting to get enough.
Scatter, or we will
have to use force!
They have had enough of
inequality and hopelessness.
They grab the closest
thing they can hold on to.
It is often their identity,
ethnicity and religion.
And they attack
the nearest enemy.
Huge amounts of unskilled
labor are coming to our country.
They bring drugs and crime
with them. They are rapists.
Behind mass immigration is Islam.
Behind mass
immigration is terrorism.
But it doesn't help. Prosecuting a
neighbor does not make you richer.
There are always politicians
who are attracted to -
- exploit growing inequalities.
It was seen before 1914.
I am afraid of the beginning of the 21st century.
We cannot regulate
international capitalism -
- so we cannot properly tax
companies and billionaires.
Instead, we target our
anger at immigrants.
It's safer.
But to address the
persistent rise in inequality -
- we must tax
capital progressively.
Nor can ownership be eternal.
When the capital is inherited
and every year when it is owned -
- those who own a
lot must give back -
- 1, 2, 3 percent or why
not 5 or 10 if owning billions.
If you invest capital
wisely and profitably -
- can continue a successful life.
But if the financial markets allow
high returns without doing anything -
- it must be crumbled by taxation.
This is how we can control
the concentration of capital -
- and thereby political power -
- as well as middle-class ownership.
WE MEET AGAIN
Many do not want to discuss strong
income and inheritance taxation -
- but if we do not regulate
capitalism in this way -
- its consequences are
catastrophic for everyone.
If we think long-term -
- must think of horses.
We used to have a lot of horses.
Horses were critical to
industrialization and then did not.
Industrial processes are
much more efficient than horses.
For technophiles who say
technology has always created jobs -
- and will therefore
continue to create, I say:
"Technology has created jobs" -
- "as long as there is
work that people can do."
But as technology begins to
interfere with people's core business...
... then people
become like horses.
That doesn't mean we can't
live a meaningful life anymore -
- but the model must be changed, because
capitalism is no longer a labor force.
The problem is that this
is going to happen soon.
When we look at cars
that don’t need a driver...
By the way, transportation services are
the second largest employer in the US -
- in all 50 states. These
jobs will disappear in 10 years.
So we need to address capital -
- because otherwise we will
have very serious problems.
We will leave the industrial economy
and move on to the post-industrial economy.
We need to choose what
future we will end up with.
We may have very
unequally distributed wealth.
Robots can do anything -
- but only a small
part owns robots.
As with Elysium: some live in
ecologically protected areas -
- and the rest in a rotten mess.
That is a political problem.
Modern challenges
for an equal society -
- are, of course, different
from those of the 20th century.
I want to emphasize that it
is not technically impossible.
It is mainly a political
and intellectual challenge.
The good news is that history
gives us cause for optimism.
If we want a united,
harmonious society -
- we must not allow
inequality to grow too great.
I am in favor of controlling capital
and overcoming capitalism...
... in more democratic ways in
which everyone can participate -
- and that allow us to see
ourselves in the 21st century.