1 00:00:39,585 --> 00:00:42,019 Okay, we're going to ride the MINI Cooper. 2 00:00:42,020 --> 00:00:47,158 All you have to know is about MINI Cooper 3 00:00:47,159 --> 00:00:49,560 which is the small size. 4 00:00:57,436 --> 00:01:00,338 I like it have MINI Cooper. 5 00:01:00,339 --> 00:01:02,641 I feel quite comfortable. 6 00:01:03,641 --> 00:01:06,410 Do you know? A fairly small car. 7 00:01:06,411 --> 00:01:10,048 I think the car is in proportion... 8 00:01:10,049 --> 00:01:12,216 adjust our proportions, you know? 9 00:01:12,217 --> 00:01:15,152 My car and I, we are like joining... 10 00:01:15,153 --> 00:01:19,694 together, exploring the whole world. 11 00:01:42,846 --> 00:01:44,749 > 12 00:01:44,750 --> 00:01:47,851 Economic justice is, 13 00:01:47,852 --> 00:01:54,190 "the problem that determines our time, and millions..." 14 00:01:54,191 --> 00:01:55,926 This is a kind of gap that gives false promises in America. 15 00:01:55,927 --> 00:01:57,193 There is an income gap in America. 16 00:01:57,194 --> 00:01:58,829 Always happens, 17 00:01:58,830 --> 00:02:01,399 and will always be there. 18 00:02:01,400 --> 00:02:03,934 - The income gap increases. -... like a bull. 19 00:02:03,935 --> 00:02:05,235 I think it's about envy. 20 00:02:05,236 --> 00:02:06,904 About war between classes. 21 00:02:06,905 --> 00:02:10,240 The inter-class war is a kind of language expected 22 00:02:10,241 --> 00:02:11,609 of the leaders of the 3rd world country, 23 00:02:11,610 --> 00:02:13,977 not the president of the United States. 24 00:02:13,978 --> 00:02:17,447 It's true because... United States 25 00:02:17,448 --> 00:02:20,650 is not the 3rd world country judging by its size, 26 00:02:20,651 --> 00:02:25,288 except, maybe, income gap, 27 00:02:25,289 --> 00:02:26,323 where is our rank... 28 00:02:27,359 --> 00:02:28,959 worse than Ivory Coast, 29 00:02:28,960 --> 00:02:30,126 worse than Cameroon... 30 00:02:30,127 --> 00:02:31,595 64th! 31 00:02:31,596 --> 00:02:36,067 On your face, Uruguay, Jamaica, and Uganda! 32 00:02:36,068 --> 00:02:37,100 Yes. 33 00:03:14,773 --> 00:03:19,075 Okay, everyone is here? 34 00:03:19,076 --> 00:03:21,578 My name is Robert Reich. 35 00:03:21,579 --> 00:03:24,413 I was once the labor secretary of under Bill Clinton. 36 00:03:24,414 --> 00:03:27,717 Before that, I had been at Harvard. 37 00:03:27,718 --> 00:03:30,687 Before that, I had been in Carter's government. 38 00:03:30,688 --> 00:03:32,156 You remember... was there... 39 00:03:32,157 --> 00:03:34,156 p> 40 00:03:35,360 --> 00:03:40,297 You don't remember Carter's government. 41 00:03:42,333 --> 00:03:45,339 Before that, I had been an aide to for Abraham Lincoln. 42 00:03:47,339 --> 00:03:51,507 Those were difficult times. 43 00:03:51,508 --> 00:03:55,812 > 44 00:03:55,813 --> 00:04:00,216 We will face three questions. 45 00:04:00,217 --> 00:04:02,787 First question, what happens 46 00:04:02,788 --> 00:04:05,589 in terms of distribution of income and wealth? 47 00:04:05,590 --> 00:04:08,726 Number two , why? 48 00:04:08,727 --> 00:04:10,995 Number three, is that a problem? 49 00:04:10,996 --> 00:04:13,363 Maybe it's not a problem. 50 00:04:13,364 --> 00:04:16,833 Many of you consider yourself conservative. 51 00:04:16,834 --> 00:04:20,972 Many of you consider yourself a liberal. 52 00:04:20,973 --> 00:04:25,775 That name will be increasingly irrelevant 53 00:04:25,776 --> 00:04:29,679 If possible, I want to shake your assumption 54 00:04:29,680 --> 00:04:35,333 about why this system works. 55 00:04:48,333 --> 00:04:51,505 Some gaps cannot be avoided. 56 00:04:53,505 --> 00:04:55,472 If people want to have the right incentives 57 00:04:55,473 --> 00:04:59,478 to be productive, work hard, be creative... 58 00:05:01,478 --> 00:05:03,080 that's the essence of capitalism, 59 00:05:03,081 --> 00:05:08,154 and capitalism can produce many good things. 60 00:05:09,154 --> 00:05:13,123 The question is not just a gap. 61 00:05:13,124 --> 00:05:17,528 The question is, when is the gap a problem? 62 00:05:17,529 --> 00:05:21,165 How many gaps can we tolerate 63 00:05:21,166 --> 00:05:23,900 and still have enough economy for everyone 64 00:05:23,901 --> 00:05:27,703 and still have a functioning democracy? 65 00:05:27,704 --> 00:05:31,909 Of all developed countries today, the United States has the most uneven 66 00:05:31,910 --> 00:05:36,580 distribution of income and wealth . 67 00:05:36,581 --> 00:05:41,552 And towards a greater gap. 68 00:05:41,553 --> 00:05:43,854 One way to see and measure the gap 69 00:05:43,855 --> 00:05:46,556 by looking at revenue people in the top 70 00:05:46,557 --> 00:05:50,562 compares it with ordinary worker income. 71 00:05:51,562 --> 00:05:54,564 Ordinary male workers in 1978 72 00:05:54,565 --> 00:05:58,802 generated around $ 48,000, according to inflation , 73 00:05:58,803 --> 00:06:04,874 while the peak at 1% earned $ 390,000. 74 00:06:04,875 --> 00:06:06,410 Now accelerated. 75 00:06:06,411 --> 00:06:09,547 In 2010, ordinary male workers 76 00:06:09,548 --> 00:06:11,681 p> 77 00:06:11,682 --> 00:06:13,350 gets less than it does, 78 00:06:13,351 --> 00:06:16,822 but the person at the top 79 00:06:17,822 --> 00:06:21,525 generates more than twice as before. 80 00:06:21,526 --> 00:06:25,729 At the moment 400 of the richest Americans have more wealth 81 00:06:25,730 --> 00:06:26,797 than 150 million parts when put together. 82 00:06:26,798 --> 00:06:29,732 400 people have more wealth 83 00:06:29,733 --> 00:06:34,203 than half of the population of the United States. 84 00:06:36,374 --> 00:06:39,042 Anger peaks during the economic system 85 00:06:39,043 --> 00:06:40,376 and rewards have been given 86 00:06:40,377 --> 00:06:44,080 but left a lot of feeling left behind. 87 00:06:44,081 --> 00:06:46,616 After the economy collapsed in 2008, 88 00:06:46,617 --> 00:06:49,753 the gap suddenly became headlines. 89 00:06:49,754 --> 00:06:52,189 Who who wants to join 1%? 90 00:06:52,190 --> 00:06:53,523 You look like one percent. 91 00:06:53,524 --> 00:06:55,292 We are an incredible 1%. 92 00:06:55,293 --> 00:06:59,330 Society of two camps are looking for someone to blame. 93 00:06:59,331 --> 00:07:02,265 But most don't know how could this be so bad 94 00:07:02,266 --> 00:07:03,406 or why. 95 00:07:09,406 --> 00:07:10,974 Not until the last few years 96 00:07:10,975 --> 00:07:14,410 we really understand about gaps. 97 00:07:14,411 --> 00:07:17,780 We already know 10% or 20% 98 00:07:17,781 --> 00:07:19,249 move in one direction 99 00:07:19,250 --> 00:07:21,886 or move to another place. 100 00:07:21,887 --> 00:07:24,621 But we don't know what happened in the peak, 101 00:07:24,622 --> 00:07:27,224 the peak is 1%. 102 00:07:27,225 --> 00:07:28,958 - Hello. - How are you? 103 00:07:28,959 --> 00:07:30,059 Nice to meet you. 104 00:07:30,060 --> 00:07:32,462 Several years ago, two researchers, 105 00:07:32,463 --> 00:07:34,797 Emmanuel Saez and Thomas Piketty, 106 00:07:34,798 --> 00:07:36,737 find different data sources. 107 00:07:38,737 --> 00:07:42,004 They see IRS tax data, 108 00:07:42,005 --> 00:07:44,340 not in the past few years 109 00:07:44,341 --> 00:07:48,011 but returned to 1913 , 110 00:07:48,012 --> 00:07:51,584 when the income tax is institutionalized. 111 00:07:53,584 --> 00:07:56,487 This shows there are two year peaks. 112 00:07:56,488 --> 00:08:03,126 1928 and 2007 are the highest years for levels income, 113 00:08:03,127 --> 00:08:09,668 both at the top 1% have 23% more than all income. 114 00:08:10,668 --> 00:08:13,537 We know the gap is starting to increase 115 00:08:13,538 --> 00:08:16,006 in the late 70s and 1980s, 116 00:08:16,007 --> 00:08:20,210 but we don't know how dramatic it is 117 00:08:20,211 --> 00:08:24,147 income levels have increased, especially at 1% peak. 118 00:08:24,148 --> 00:08:27,650 When this study appeared in 2003, 119 00:08:27,651 --> 00:08:29,753 is there for several years, 120 00:08:29,754 --> 00:08:34,023 and suddenly it becomes important. 121 00:08:34,024 --> 00:08:36,427 But you see they are starting to recover... 122 00:08:36,428 --> 00:08:38,796 Graph this becomes very central 123 00:08:38,797 --> 00:08:42,132 to explain what happened to the US economy 124 00:08:42,133 --> 00:08:46,635 and, of course, what happened, and has happened to the community. 125 00:08:46,636 --> 00:08:49,908 This looks like a suspension bridge. 126 00:08:50,908 --> 00:08:53,476 What happened after 1928? 127 00:08:53,477 --> 00:08:54,710 Big Accident. 128 00:08:54,711 --> 00:08:57,279 And what happened right after 2007? 129 00:08:57,280 --> 00:08:58,317 More accidents. 130 00:09:00,317 --> 00:09:03,552 Amazing similarity 131 00:09:03,553 --> 00:09:06,156 if you pay close attention. 132 00:09:13,697 --> 00:09:16,298 Heading to the highest two years, 133 00:09:16,299 --> 00:09:20,903 income becomes more focused to a handful, 134 00:09:20,904 --> 00:09:23,373 rich people turn to the financial sector, 135 00:09:23,374 --> 00:09:27,845 in both periods, the financial sector swells. 136 00:09:27,846 --> 00:09:30,580

137 00:09:30,581 --> 00:09:34,118 They focus on a number of assets: 138 00:09:34,119 --> 00:09:36,487 housing, gold, speculative tools, 139 00:09:36,488 --> 00:09:40,257 loan tools. 140 00:09:40,258 --> 00:09:42,725 And who created bubbles speculative in both eras. 141 00:09:42,726 --> 00:09:46,129 We also know that the middle class, 142 00:09:46,130 --> 00:09:50,933 in both periods, their income falters, 143 00:09:50,934 --> 00:09:54,238 and they keep looking for loans to maintain the standard of living. 144 00:09:56,474 --> 00:09:58,874 That is what creates the loan bubble. 145 00:09:58,875 --> 00:10:02,144 As you can see, in both periods, 146 00:10:02,145 --> 00:10:06,917 the economy becomes unstable. 147 00:10:06,918 --> 00:10:10,620 What makes the economy stable, is a strong middle class. 148 00:10:10,621 --> 00:10:16,759 that is, consumers spend 70% of from the US economy. 149 00:10:16,760 --> 00:10:23,133 And the middle class is the heart of consumer spending. 150 00:10:23,134 --> 00:10:27,738 So the middle class is what makes > the economy is running. 151 00:10:27,739 --> 00:10:31,041 There is no way to sustain long-term economic 152 00:10:31,042 --> 00:10:35,778 without a strong middle class and dynamic and developing. 153 00:10:35,779 --> 00:10:37,111 It can't be done. 154 00:10:39,417 --> 00:10:41,151 - People are intimidated. - Right. 155 00:10:41,152 --> 00:10:42,985 They can lose their jobs if... 156 00:10:42,986 --> 00:10:45,721 I speak with many different groups. 157 00:10:45,722 --> 00:10:49,292 Some are rich. There are working class people. 158 00:10:49,293 --> 00:10:51,128 Some are conservative. Some are liberal. 159 00:10:51,129 --> 00:10:55,231 And he finally gets a full job. 160 00:10:55,232 --> 00:10:57,267 Middle class society is struggling. 161 00:10:57,268 --> 00:10:59,668 And has a setback. 162 00:10:59,669 --> 00:11:01,904 I hear it all the time. 163 00:11:01,905 --> 00:11:03,473 Everyone says that's where I am, 164 00:11:03,474 --> 00:11:05,908 but I don't feel in the middle class, 165 00:11:05,909 --> 00:11:07,344 because I barely get it. 166 00:11:07,345 --> 00:11:10,346 Middle class it's a comfortable life 167 00:11:10,347 --> 00:11:13,950 and there's no need... every week isn't a struggle. 168 00:11:13,951 --> 00:11:16,185 I want to save and buy a house someday, 169 00:11:16,186 --> 00:11:18,455 and you know, I haven't been able to do that 170 00:11:18,456 --> 00:11:20,791 always postpone 171 00:11:20,792 --> 00:11:23,529 and just try to rent it now. 172 00:11:25,529 --> 00:11:29,932 How much is your income per hour? 173 00:11:29,933 --> 00:11:34,303 Right now, I think it goes up to... $ 21.50. 174 00:11:34,304 --> 00:11:36,672 $ 21.50 per hour. 175 00:11:36,673 --> 00:11:38,541 Hello, Alberto. 176 00:11:38,542 --> 00:11:40,442 I think I paid enough. 177 00:11:40,443 --> 00:11:43,112 It arrived at our point of ability to pay, 178 00:11:43,113 --> 00:11:48,284 you know, a condo on Olivera Road, 179 00:11:48,285 --> 00:11:50,086 and we bought it. 180 00:11:50,087 --> 00:11:52,723 We have what we need, our own place. 181 00:11:52,724 --> 00:11:55,796 Small place, two bedrooms. 182 00:11:58,796 --> 00:12:02,999 We bought it in 2004. 183 00:12:03,000 --> 00:12:07,604 Around 2006, starting in 2007, 184 00:12:07,605 --> 00:12:09,939 the market just fell like stone. 185 00:12:09,940 --> 00:12:13,009 And shortly after that, actually, 186 00:12:13,010 --> 00:12:17,547 I lost my job and was unemployed for quite a while. 187 00:12:17,548 --> 00:12:20,048 Luckily we had some good friends, 188 00:12:20,049 --> 00:12:21,750 and one of them says, 189 00:12:21,751 --> 00:12:24,521 "Come here and stay with me." 190 00:12:24,522 --> 00:12:27,393 So that's where we are now. 191 00:12:28,393 --> 00:12:29,692 Go with dad 192 00:12:29,693 --> 00:12:31,561 - Go with daddy. - I'm hungry. 193 00:12:31,562 --> 00:12:34,330 Are you hungry? 194 00:12:34,331 --> 00:12:39,869 Childcare for Paulina spends about $ 400. 195 00:12:39,870 --> 00:12:43,907 It seems like I doubt whether I should send him home by himself... 196 00:12:43,908 --> 00:12:45,542 buy him a cellphone and go home by himself 197 00:12:45,543 --> 00:12:47,610 make sure he survives home , 198 00:12:47,611 --> 00:12:49,612 or keep paying for child care. 199 00:12:49,613 --> 00:12:52,485 - Dagh. - Here, mom. 200 00:12:54,485 --> 00:12:55,125 Ready? 201 00:13:01,125 --> 00:13:04,460 I have $ 25 in the current account 202 00:13:04,461 --> 00:13:08,031 and think about /> everything we need. 203 00:13:08,032 --> 00:13:11,100 I don't have a way to communicate with Robert at the moment. 204 00:13:11,101 --> 00:13:14,003 He doesn't have a cellphone, so we have to wait first. 205 00:13:14,004 --> 00:13:15,872 I need to find out... we have to suffice, 206 00:13:15,873 --> 00:13:19,947 You know, food on the table for children. 207 00:13:22,947 --> 00:13:24,848 $ 25 in the account, 208 00:13:24,849 --> 00:13:27,617 is certain... 209 00:13:27,618 --> 00:13:29,552 That's not enough. 210 00:13:29,553 --> 00:13:31,553 No, it's not enough. 211 00:13:33,024 --> 00:13:35,591 But, I mean, it's Tuesday... Wednesday. 212 00:13:35,592 --> 00:13:37,859 I will survive today. 213 00:13:37,860 --> 00:13:41,663 I'll search in the kitchen, see what else can be eaten. 214 00:13:41,664 --> 00:13:44,968 p> 215 00:13:44,969 --> 00:13:48,009 My cache is full, so I don't have a problem with that. 216 00:13:53,009 --> 00:13:54,778 When I was dismissed, I decided to 217 00:13:54,779 --> 00:13:57,714 go to college and pursue my title. 218 00:13:57,715 --> 00:14:02,485 Most of my classmates were much younger. 219 00:14:02,486 --> 00:14:04,354 It's different when reading about it 220 00:14:04,355 --> 00:14:06,422 or other people's problems. 221 00:14:06,423 --> 00:14:08,891 It's different when you're in your own family. 222 00:14:08,892 --> 00:14:10,159 So at home, 223 00:14:10,160 --> 00:14:12,629 that might be the hardest part. 224 00:14:12,630 --> 00:14:17,100 There is no official definition of from the middle class. 225 00:14:17,101 --> 00:14:18,468 But Alan Krueger, 226 00:14:18,469 --> 00:14:20,403 Chairman Economic Advisory Board, 227 00:14:20,404 --> 00:14:22,104 This is the percentage of households 228 00:14:22,105 --> 00:14:27,643 with an annual income in 50% of the average household. 229 00:14:27,644 --> 00:14:32,285 $ 50,000, income on average, above 50%, under 50%. 230 00:14:35,285 --> 00:14:40,790 If you are at the top 1%, you make at least $ 380,000 per year. 231 00:14:40,791 --> 00:14:42,892 If you are in this group, 232 00:14:42,893 --> 00:14:44,528 You may be at the top level 233 00:14:44,529 --> 00:14:47,997 in the professional field, doctor or lawyer. 234 00:14:47,998 --> 00:14:49,298 Higher than this group, 235 00:14:49,299 --> 00:14:50,933 produces some million dollars per year, 236 00:14:50,934 --> 00:14:54,403 is a successful businessman who started profitable company. 237 00:14:54,404 --> 00:14:58,474 At the highest level, earning $ 10 million per year or more, 238 00:14:58,475 --> 00:15:00,743 are CEOs of big companies, 239 00:15:00,744 --> 00:15:04,080 Wall Street bank chiefs, entertainers, 240 00:15:04,081 --> 00:15:06,883 and also sports stars. 241 00:15:06,884 --> 00:15:12,021 Last year, we got $ 36,000, < br /> and we have a family of 3 people. 242 00:15:12,022 --> 00:15:15,358 I might make between $ 45,000 and $ 50,000 per year 243 00:15:15,359 --> 00:15:19,129 work 70 hours a week, six days a week. 244 00:15:19,130 --> 00:15:20,696 Combine military income 245 00:15:20,697 --> 00:15:27,070 with my personal work, maybe $ 55,000 to $ 60,000 per year. 246 00:15:27,071 --> 00:15:32,841 Maybe near $ 600,000. 247 00:15:32,842 --> 00:15:36,778 Usually more than $ 10 million, less than $ 30 million 248 00:15:36,779 --> 00:15:41,555 but, you know, a lot, some ridiculous money. 249 00:15:44,221 --> 00:15:46,755 I'm a businessman < br /> and venture capitalists. 250 00:15:46,756 --> 00:15:49,959 My family has a sleeping pillow factory 251 00:15:49,960 --> 00:15:52,394 from goose feathers called Pacific Coast Feather Company. 252 00:15:52,395 --> 00:15:56,999 In fact, one of the biggest pillow manufacturers in the world. 253 00:16:05,375 --> 00:16:08,311 Problems with increasing inequality, 254 00:16:08,312 --> 00:16:11,080 people like me, who get 1000 times more 255 00:16:11,081 --> 00:16:13,649 as typical of Americans, 256 00:16:13,650 --> 00:16:16,418 don't buy 1000 pillows per year. 257 00:16:16,419 --> 00:16:20,293 Even the richest person only sleeps on one or two pillows. 258 00:16:22,293 --> 00:16:24,393 Business pillows are quite difficult, 259 00:16:24,394 --> 00:16:27,196 as in most industries, 260 00:16:27,197 --> 00:16:34,999 because fewer people are able to buy the products we make. 261 00:16:40,543 --> 00:16:42,311 I have the best Audi that you can have, 262 00:16:42,312 --> 00:16:45,281 but only one Audi. 263 00:16:45,282 --> 00:16:47,517 I hate fancy food myself. 264 00:16:47,518 --> 00:16:52,721 I'm more like a big bowl of pho in a local Vietnamese place 265 00:16:52,722 --> 00:16:57,999 than a $ 300 dinner offer in some fancy places. 266 00:16:59,130 --> 00:17:02,331 We just go out to eat several times a year. 267 00:17:02,332 --> 00:17:04,633 We can get lots of haircuts in a year. 268 00:17:04,634 --> 00:17:07,604 We can get..., you know... 269 00:17:07,605 --> 00:17:09,471 Three pairs of jeans, you know? 270 00:17:09,472 --> 00:17:11,176 It doesn't take 300 pairs. 271 00:17:13,176 --> 00:17:15,178 And the problem is not from the rich 272 00:17:15,179 --> 00:17:17,046 who spend too much, < 273 00:17:17,047 --> 00:17:20,350 Actually, strangely, they spend too little. 274 00:17:20,351 --> 00:17:23,999 They don't do full economic activity. 275 00:17:25,154 --> 00:17:27,390 Someone who makes $ 10 million per year 276 00:17:27,391 --> 00:17:30,293 don't spend $ 10 million. 277 00:17:30,294 --> 00:17:31,826 They save it. 278 00:17:31,827 --> 00:17:34,797 And their savings go everywhere all over the world. 279 00:17:34,798 --> 00:17:39,135 They can make the most money , get the highest profit. 280 00:17:39,136 --> 00:17:42,838 They are part of world capital markets, 281 00:17:42,839 --> 00:17:45,274 including many speculative tools, 282 00:17:45,275 --> 00:17:48,178 have gold and real estate and others 283 00:17:48,179 --> 00:17:50,747 all that they are after. 284 00:17:50,748 --> 00:17:55,317 With the exception of from investing in my personal money 285 00:17:55,318 --> 00:17:59,221 when I started the company, I basically don't know 286 00:17:59,222 --> 00:18:00,990 what happened to my money. 287 00:18:00,991 --> 00:18:03,993 I invested in a number of funds, 288 00:18:03,994 --> 00:18:08,097 and where did the funds go only God know. 289 00:18:08,098 --> 00:18:10,700 But I really believe 290 00:18:10,701 --> 00:18:13,702 most of the profits that are being generated 291 00:18:13,703 --> 00:18:17,073 tidak menghasilkan apapun dari faedah masyarakat 292 00:18:17,074 --> 00:18:20,175 Other than making a profit for me. 293 00:18:20,176 --> 00:18:22,178 And we usually save money. 294 00:18:22,179 --> 00:18:24,046 Saving is good, but when 295 00:18:24,047 --> 00:18:27,683 we have a lot of unemployment, underused capacity 296 00:18:27,684 --> 00:18:31,822 in the United States, we need spending. 297 00:18:31,823 --> 00:18:37,259 Everyone must have a process of 12 units per hour. 298 00:18:37,260 --> 00:18:39,496 How will we create jobs if you tax 299 00:18:39,497 --> 00:18:41,698 on successful people in America 300 00:18:41,699 --> 00:18:43,399 who give them jobs? 301 00:18:43,400 --> 00:18:48,970 Sometimes we think that this debate about facts and counts and data. 302 00:18:48,971 --> 00:18:52,409 ... to raise taxes on job creators in this country... 303 00:18:52,410 --> 00:18:53,709 I think if you believe that, 304 00:18:53,710 --> 00:18:55,444 you are like fooling yourself. 305 00:18:55,445 --> 00:18:58,448 People you call rich, I call job creators. 306 00:18:58,449 --> 00:19:00,783 When someone calls themselves job creators, 307 00:19:00,784 --> 00:19:03,419 they don't describe the economy 308 00:19:03,420 --> 00:19:04,787 or how the economy works, 309 00:19:04,788 --> 00:19:06,722 even though it sounds like that . 310 00:19:06,723 --> 00:19:09,592 What they actually do is claiming 311 00:19:09,593 --> 00:19:13,364 status, privilege, and power. 312 00:19:14,364 --> 00:19:16,731 If someone like me is the creator employment 313 00:19:16,732 --> 00:19:18,800 at the center of the economic universe, 314 00:19:18,801 --> 00:19:25,208 the current economic structure moves straight and directed. 315 00:19:25,209 --> 00:19:26,976 I know how comfortable trust that. 316 00:19:26,977 --> 00:19:29,545 because I once believed that. 317 00:19:29,546 --> 00:19:31,914 I grew up believing that. 318 00:19:31,915 --> 00:19:34,316 When people are challenged with ideas, 319 00:19:34,317 --> 00:19:37,999 I will say, "You just don't understand economics." 320 00:19:39,890 --> 00:19:42,659 But of course if, a business person like me 321 00:19:42,660 --> 00:19:44,960 is not the creator of employment... it's actually our customers 322 00:19:44,961 --> 00:19:46,496 who are the creators of jobs... 323 00:19:46,497 --> 00:19:49,265 we are not the center of the economic universe . 324 00:19:49,266 --> 00:19:50,536 They are. 325 00:19:52,536 --> 00:19:56,338 We need to replace trickle-down economics 326 00:19:56,339 --> 00:19:58,741 with middle-out economics. 327 00:19:58,742 --> 00:20:02,644 And, of course, every place you see on Earth 328 00:20:02,645 --> 00:20:06,548 where you find prosperity, there you find massive investment 329 00:20:06,549 --> 00:20:08,317 for the middle class and the poor, 330 00:20:08,318 --> 00:20:12,854 because at the end of the day, they are the real job creators. 331 00:20:12,855 --> 00:20:15,758 The most pro-business thing you can do 332 00:20:15,759 --> 00:20:20,394 which is to help the community the middle class grow. 333 00:20:50,394 --> 00:20:53,395 Okay, I'll bring the box. 334 00:20:53,396 --> 00:20:57,633 This box is really important. 335 00:20:57,634 --> 00:20:59,935 I'm traveling not only with the MINI Cooper 336 00:20:59,936 --> 00:21:01,903 but also with my box. 337 00:21:04,208 --> 00:21:05,608 Hello, George. How are you? 338 00:21:05,609 --> 00:21:07,143 It's good that you want to bring a box. 339 00:21:07,144 --> 00:21:08,510 We also have one for you. 340 00:21:09,555 --> 00:21:11,047 In the past few years, 341 00:21:11,048 --> 00:21:16,585 I know if I experience very rare genetic conditions. 342 00:21:16,586 --> 00:21:18,854 Fairbanks Syndrome 343 00:21:18,855 --> 00:21:22,324 makes me very short. 344 00:21:22,325 --> 00:21:25,393 - Hey, Bob, let me take it. - No, no. 345 00:21:25,394 --> 00:21:27,630 My parents are of normal size. 346 00:21:27,631 --> 00:21:29,732 Grandma always tells me, 347 00:21:29,733 --> 00:21:31,367 "Don't be afraid," because when I'm old 348 00:21:31,368 --> 00:21:34,738 10 or 11 or 12, I will, 349 00:21:34,739 --> 00:21:37,573 get normal growth. 350 00:21:37,574 --> 00:21:39,541 And then I am 10, 11, 351 00:21:39,542 --> 00:21:41,576 and nothing happens, you know? 352 00:21:41,577 --> 00:21:42,945 Pass right. 353 00:21:42,946 --> 00:21:43,979 Next to this. 354 00:21:43,980 --> 00:21:45,413 Yap, di belakang. 355 00:22:01,765 --> 00:22:04,467 I grew up during World War II. 356 00:22:04,468 --> 00:22:08,136 My father went to war. 357 00:22:08,137 --> 00:22:10,105 We were in the middle class. 358 00:22:10,106 --> 00:22:14,144 My father sold clothes. My mom helps in the shop. 359 00:22:15,144 --> 00:22:19,147 My first job in Washington worked in the summer 360 00:22:19,148 --> 00:22:22,719 for Robert Kennedy. 361 00:22:22,720 --> 00:22:25,454 That was the time when there was a Giants team. 362 00:22:25,455 --> 00:22:28,391 Robert F. Kennedy, Martin Luther King, 363 00:22:28,392 --> 00:22:31,559 they all try to change people's patterns. 364 00:22:31,560 --> 00:22:33,997 A sense of possibility arises. 365 00:22:33,998 --> 00:22:37,232 That led me to the world of politics. 366 00:22:37,233 --> 00:22:40,635 A few years later, I took a Rhodes degree. 367 00:22:40,636 --> 00:22:46,946 At that time, all Rhodes scholars 368 00:22:50,946 --> 00:22:53,582 > chosen, go sailing to England. 369 00:22:53,583 --> 00:22:57,120 The problem is, when you go there, 370 00:22:57,121 --> 00:23:00,021 the Atlantic Ocean is quite heavy. 371 00:23:00,022 --> 00:23:02,892 suffered from pain, and I went down to the cabin. 372 00:23:02,893 --> 00:23:05,531 I thought I would die. 373 00:23:08,531 --> 00:23:10,665 And then there was a knock on the door, 374 00:23:10,666 --> 00:23:12,701 and this person is there, 375 00:23:12,702 --> 00:23:15,004 the tall, tall from the South, 376 00:23:15,005 --> 00:23:19,374 and he has soup in the other hand and biscuits in the other hand, 377 00:23:19,375 --> 00:23:21,743 and he said, "I heard you were not feeling well. 378 00:23:21,744 --> 00:23:23,278 " I thought this might help. 379 00:23:23,279 --> 00:23:26,149 My name is Bill Clinton. " 380 00:23:26,150 --> 00:23:28,550 At Oxford , we are in the same college. 381 00:23:28,551 --> 00:23:31,556 We continue to maintain relationships. 382 00:23:32,556 --> 00:23:37,326 At Oxford, I study economics and philosophy. 383 00:23:37,327 --> 00:23:43,232 But that experience is really an study of organized market rules. 384 00:23:43,233 --> 00:23:44,767 This is important, 385 00:23:44,768 --> 00:23:47,903 the one that is most often lost, 386 00:23:47,904 --> 00:23:51,339 but this is the focus of my attention. 387 00:23:51,340 --> 00:23:55,044 Nothing like that can be a perfect free market anywhere. 388 00:23:55,045 --> 00:24:00,016 The government sets the rules for market functions. 389 00:24:00,017 --> 00:24:02,885 All these rules are needed 390 00:24:02,886 --> 00:24:06,889 to build a free market. 391 00:24:06,890 --> 00:24:10,526 The question is, who benefits this rule 392 00:24:10,527 --> 00:24:12,760 and who loses? 393 00:24:12,761 --> 00:24:15,130 And in the last 30 years , 394 00:24:15,131 --> 00:24:18,201 along with the structure of the economy is starting to shift, 395 00:24:18,202 --> 00:24:23,061 many market rules are starting to shift too. 396 00:24:26,009 --> 00:24:28,411 Today we will try to explain 397 00:24:28,412 --> 00:24:34,616 the mystery, why the gap is expanding. 398 00:24:34,617 --> 00:24:37,586 Remember, the economy grew all this time. 399 00:24:37,587 --> 00:24:38,787 Economy... 400 00:24:38,788 --> 00:24:40,789 The economy continues to grow. 401 00:24:40,790 --> 00:24:43,258 This is the growth of gross domestic product 402 00:24:43,259 --> 00:24:46,261 from 1929-2011. 403 00:24:46,262 --> 00:24:49,565 The overall economy has gone very well, 404 00:24:49,566 --> 00:24:51,933 and productivity continues to increase. 405 00:24:51,934 --> 00:24:55,738 We produce more and more values. 406 00:24:55,739 --> 00:24:58,007 That's a big success story. 407 00:24:58,008 --> 00:25:00,041 But this is the problem. Here's the puzzle. 408 00:25:00,042 --> 00:25:02,845 Because if you see average income per hours 409 00:25:02,846 --> 00:25:04,614 of the workers, 410 00:25:04,615 --> 00:25:09,050 average hourly earnings continue to increase 411 00:25:09,051 --> 00:25:15,191 until the late 1970s, and then something happened, 412 00:25:15,192 --> 00:25:17,693 salary equalization. 413 00:25:17,694 --> 00:25:20,596 See the gap. 414 00:25:20,597 --> 00:25:24,200 Something happened in the late 1970s. 415 00:25:24,201 --> 00:25:29,771 Something happened in the late 1970s , brethren. 416 00:25:38,548 --> 00:25:40,516 In the late 1970s, 417 00:25:40,517 --> 00:25:43,251 I was at the Federal Trade Commission. 418 00:25:43,252 --> 00:25:45,453 I did many studies 419 00:25:45,454 --> 00:25:50,191 p> 420 00:25:50,192 --> 00:25:53,796 Most about American manufacturers who started moving abroad. 421 00:25:53,797 --> 00:25:59,133 It was the beginning of the technology revolution. 422 00:25:59,134 --> 00:26:03,105 The financial market became a little stronger. 423 00:26:03,106 --> 00:26:05,844 There is a deregulation step (rule policy). 424 00:26:07,844 --> 00:26:10,479 If the point is connected, and all this 425 00:26:10,480 --> 00:26:14,851 starts to look as if connected somehow 426 00:26:14,852 --> 00:26:17,624 on expanding the gap. 427 00:26:20,624 --> 00:26:24,727 For example, we know that trade unions have been decreasing. 428 00:26:24,728 --> 00:26:27,864 And the decline reflects almost exactly 429 00:26:27,865 --> 00:26:32,401 with a decrease in national income in the middle class. 430 00:26:34,104 --> 00:26:38,806 The hardest part when stepping back and seeing the big picture. 431 00:26:38,807 --> 00:26:40,875 Many people, even To this day, 432 00:26:40,876 --> 00:26:44,614 says that the decline of trade unions was caused by 433 00:26:44,615 --> 00:26:49,352 by Ronald Reagan doing air traffic control. 434 00:26:49,353 --> 00:26:51,688 Strike, strike... 435 00:26:51,689 --> 00:26:55,391 I have to tell them who failed to report the task this morning, 436 00:26:55,392 --> 00:27:00,262 they lost their jobs and will be dismissed. 437 00:27:00,263 --> 00:27:03,499 There is no doubt, that began in the late 70s 438 00:27:03,500 --> 00:27:07,769 but also after Reagan fired air traffic controllers, 439 00:27:07,770 --> 00:27:14,277 there have been major attacks on trade unions. 440 00:27:14,278 --> 00:27:18,181 Businessmen have tried to prevent the addition of workers 441 00:27:18,182 --> 00:27:20,382 to be more aggressive than before... 442 00:27:20,383 --> 00:27:22,986 I will leave. You don't need to hold me back. 443 00:27:22,987 --> 00:27:27,856 And the entrepreneurs try to reduce the existing workers. 444 00:27:30,094 --> 00:27:34,029 Maybe they did it because they felt they had to 445 00:27:34,030 --> 00:27:37,600 to maintain their competitiveness 446 00:27:37,601 --> 00:27:44,006 provide opportunities for non-labor companies 447 00:27:44,007 --> 00:27:48,678 di Amerika dan juga perusahaan di luar negeri. 448 00:27:48,679 --> 00:27:56,679 The main underlying problem is two interrelated things: 449 00:27:57,054 --> 00:28:01,323 globalization and technology. 450 00:28:01,324 --> 00:28:04,893 You hear the word "globalization" over and over. 451 00:28:04,894 --> 00:28:07,630 Globalization, globalization. 452 00:28:07,631 --> 00:28:09,966 Rarely has the direct meaning 453 00:28:09,967 --> 00:28:14,335 of unclear, becomes meaningless 454 00:28:14,336 --> 00:28:18,105 without period coherence intervention. 455 00:28:18,374 --> 00:28:21,777 Can anyone lend an iPhone? 456 00:28:21,778 --> 00:28:24,645 Anyone has one... good. 457 00:28:24,646 --> 00:28:26,515 Thank you. 458 00:28:26,516 --> 00:28:27,883 I I don't have this yet, 459 00:28:27,884 --> 00:28:31,518 and I really want to have one. 460 00:28:33,056 --> 00:28:37,727 Where do most of your money go when buying an iPhone? 461 00:28:37,728 --> 00:28:39,228 Where do you think you are? 462 00:28:39,229 --> 00:28:41,930 Come on. Let's make an offer. 463 00:28:41,931 --> 00:28:47,170 700 of you have a reader, which is very good. 464 00:28:47,171 --> 00:28:49,137 Do you think is mostly to the United States, 465 00:28:49,138 --> 00:28:51,206 some say to China, 466 00:28:51,207 --> 00:28:56,679 and then some say... some say Japanese. 467 00:28:56,680 --> 00:28:59,779 11 the rest think German. 468 00:29:02,986 --> 00:29:07,456 This is where your money goes. 469 00:29:07,457 --> 00:29:10,526 Some your money goes to Japan. 470 00:29:10,527 --> 00:29:13,295 Most of it goes to Germany. 471 00:29:13,296 --> 00:29:16,397 The reality is, Germany is the second biggest. 472 00:29:16,398 --> 00:29:18,432 South Korea is the third, and here , 473 00:29:18,433 --> 00:29:20,568 6% of your money to the United States, 474 00:29:20,569 --> 00:29:24,574 and only 3.6% of your money who goes to China. 475 00:29:24,575 --> 00:29:27,576 Now, The iPhone is assembled in China. 476 00:29:27,577 --> 00:29:28,710 Do you understand? 477 00:29:28,711 --> 00:29:30,278 It's assembled in China, 478 00:29:30,279 --> 00:29:34,083 but the assembly is pieces of 479 00:29:34,084 --> 00:29:35,851 of everything all over the place. 480 00:29:35,852 --> 00:29:38,692 Everything comes from everywhere. 481 00:29:43,692 --> 00:29:46,729 I want my students to see it not just 482 00:29:46,730 --> 00:29:48,329 the cost of salary or labor. 483 00:29:48,330 --> 00:29:53,170 > 484 00:29:54,170 --> 00:29:58,073 My MINI Cooper was made by a foreign company. 485 00:29:58,074 --> 00:30:00,276 But where does the company headquartered 486 00:30:00,277 --> 00:30:03,413 mean less in the new global economy. 487 00:30:04,413 --> 00:30:07,950 Technologies such as cargo ships, containers, 488 00:30:07,951 --> 00:30:10,419 satellite communication technology, 489 00:30:10,420 --> 00:30:13,154 and finally computers and the internet, 490 00:30:13,155 --> 00:30:20,162 this technology allows the production process and send it all over the world. 491 00:30:20,163 --> 00:30:25,701 A large number of American factory workers begin to lose their jobs, 492 00:30:25,702 --> 00:30:29,136 which means this starts to underestimate 493 00:30:29,137 --> 00:30:33,010 wages for most American workers. 494 00:30:35,010 --> 00:30:41,999 Even the remaining factories in America replace workers with automatic ones. 495 00:30:43,787 --> 00:30:48,022 And we have romantic ideas that can get production back. 496 00:30:48,023 --> 00:30:50,124 But you get back a production plant, 497 00:30:50,125 --> 00:30:52,126 that is filled with robots and computers. 498 00:30:52,127 --> 00:30:54,999 The old assembly method is gone. 499 00:30:55,198 --> 00:30:58,768 I'm one of the early investors on amazon.com. 500 00:30:58,769 --> 00:31:02,904 I consider amazon.com to be one 501 00:31:02,905 --> 00:31:05,106 the biggest economic achievement of our time 502 00:31:05,107 --> 00:31:08,778 and of course something I am very proud of. 503 00:31:08,779 --> 00:31:15,616 But make no mistake: amazon.com employs 60,000 people 504 00:31:15,617 --> 00:31:20,489 and generate 70-80 billion in sales. 505 00:31:20,490 --> 00:31:26,027 But if mom-and-pop retailers do 70 or 80 billion in sales, 506 00:31:26,028 --> 00:31:28,497 it can employ 60,000 people. 507 00:31:28,498 --> 00:31:32,567 It can be up to 600,000 or 800,000 or 1 million people 508 00:31:32,568 --> 00:31:38,172 because the business model is still very inefficient. 509 00:31:38,173 --> 00:31:41,710 So Amazon created a huge economic fortune 510 00:31:41,711 --> 00:31:43,711 in the Pacific Northwest, 511 00:31:43,712 --> 00:31:45,914 but throughout the country, 512 00:31:45,915 --> 00:31:51,890 there are people who don't again employed on sale of products that are not happy. 513 00:31:53,890 --> 00:31:55,624 As a Circuit City manager, 514 00:31:55,625 --> 00:31:59,361 I watched behind the curtain, 515 00:31:59,362 --> 00:32:03,531 as manager, and watched everything work. 516 00:32:03,532 --> 00:32:07,536 So when You were fired, can you expect it, or come suddenly? 517 00:32:07,537 --> 00:32:11,106 They did dismissal while I worked there. 518 00:32:11,107 --> 00:32:12,908 People who are already there too long: 519 00:32:12,909 --> 00:32:16,577 "They make too much money because they have been there too long, 520 00:32:16,578 --> 00:32:21,450 and have to do something to cut their salary." 521 00:32:21,451 --> 00:32:25,999 The hardest part when thinking, "Will that happen to me?" 522 00:32:29,491 --> 00:32:31,360 Until I become a student, that is very certain. 523 00:32:31,361 --> 00:32:34,997 That will be easy for me, fall into depression, 524 00:32:34,998 --> 00:32:36,499 as happened to many people, 525 00:32:36,500 --> 00:32:39,067 or look for a job whose salary is low, who will 526 00:32:39,068 --> 00:32:43,974 puts me into a worse financial condition . 527 00:32:45,074 --> 00:32:49,678 Looking back, you can see the pattern. 528 00:32:49,679 --> 00:32:52,014 It's not easy when you in it, 529 00:32:52,015 --> 00:32:53,481 but the sign is there. 530 00:32:53,482 --> 00:32:58,720 There is a big slowdown in business, 531 00:32:58,721 --> 00:33:03,758 and I think a lot has to be done with things- things like Amazon. 532 00:33:03,759 --> 00:33:06,961 Because I've been in retail for so long, 533 00:33:06,962 --> 00:33:10,198 I don't keep the cash register automatic. 534 00:33:10,199 --> 00:33:14,269 And the reason is because < > every time I guard the cashier, 535 00:33:14,270 --> 00:33:17,974 it can take someone's job. 536 00:33:18,974 --> 00:33:21,308 That doesn't mean I will... 537 00:33:21,309 --> 00:33:23,746 save their work in long term. 538 00:33:23,747 --> 00:33:25,448 But I will slow down 539 00:33:25,449 --> 00:33:28,717 the transition period a little, so maybe 540 00:33:28,718 --> 00:33:33,011 they can get it a little longer and get ready -Ready when switching. 541 00:33:39,127 --> 00:33:41,096 Contrary to popular mythology, 542 00:33:41,097 --> 00:33:44,100 globalization and technology haven't really 543 00:33:44,101 --> 00:33:46,701 reduced the number of jobs available to Americans. 544 00:33:46,702 --> 00:33:51,586 This change has reduced their salary. 545 00:34:02,586 --> 00:34:05,187 This is not only a wage that is stalled, 546 00:34:05,188 --> 00:34:09,392 but when you take consideration, there is an increase in costs... 547 00:34:09,393 --> 00:34:13,129 increase in rental or home costs, 548 00:34:13,130 --> 00:34:16,297 dramatically raises health care costs, 549 00:34:16,298 --> 00:34:18,667 increases in child care costs, 550 00:34:18,668 --> 00:34:21,569 and also increases college fees, 551 00:34:21,570 --> 00:34:24,605 increase faster than inflation. 552 00:34:24,606 --> 00:34:27,142 Make all of this a consideration, 553 00:34:27,143 --> 00:34:30,645 and that is far worse than just wages choked up. 554 00:34:30,646 --> 00:34:33,883 This is basically in the middle class family, 555 00:34:33,884 --> 00:34:35,484 often with two breadwinners, 556 00:34:35,485 --> 00:34:38,020 work hard and harder 557 00:34:38,021 --> 00:34:41,393 and get everywhere. 558 00:34:43,393 --> 00:34:49,031 I work at a law firm as a court assistant. 559 00:34:49,032 --> 00:34:50,899 And Moises ? 560 00:34:50,900 --> 00:34:54,403 I work as a bus operator. 561 00:34:54,404 --> 00:34:57,573 Do you know how many in your bank account at this time? 562 00:34:57,574 --> 00:34:59,475 I'm less than 100 dollars. 563 00:34:59,476 --> 00:35:02,576 So you could say maybe $ 80. 564 00:35:02,577 --> 00:35:06,080 Yes, yesterday was only $ 30. 565 00:35:07,016 --> 00:35:09,484 - And that's useful. - Yes. 566 00:35:09,485 --> 00:35:11,220 Car insurance, $ 125. 567 00:35:11,221 --> 00:35:13,221 Child needs, $ 150. 568 00:35:13,222 --> 00:35:15,758 Rent, $ 1375. 569 00:35:15,759 --> 00:35:18,259 We need to record everything, 570 00:35:18,260 --> 00:35:20,662 because of how maybe we don't have money? 571 00:35:20,663 --> 00:35:21,562 We make money. 572 00:35:21,563 --> 00:35:23,332 I work now. 573 00:35:23,333 --> 00:35:26,067 We don't know how many more the must be paid. 574 00:35:26,068 --> 00:35:27,502 The Y. 575 00:35:27,503 --> 00:35:32,306 This is the money I donated. $ 16 per month for Children International. 576 00:35:32,307 --> 00:35:36,578 We don't even pay UCSF bills. 577 00:35:36,579 --> 00:35:38,647 Remember that hospital fee? 578 00:35:38,648 --> 00:35:43,017 That's, around, 200 dollars more we can't even pay that. 579 00:35:43,318 --> 00:35:45,654 What about savings? 580 00:35:45,655 --> 00:35:47,122 We haven't been able to. 581 00:35:47,123 --> 00:35:49,723 We don't have a savings account. 582 00:35:49,724 --> 00:35:53,528 - I leave it because... - It's useless. 583 00:35:54,563 --> 00:35:57,433 You carry gloves. 584 00:35:57,434 --> 00:35:59,100 You are finished playing baseball? 585 00:35:59,101 --> 00:36:01,035 He played with you? 586 00:36:01,036 --> 00:36:02,971 When he was born, we didn't have money. 587 00:36:02,972 --> 00:36:05,841 The fridge was empty. Freezer is empty. 588 00:36:05,842 --> 00:36:08,009 I say, "This is not my way to raise a child." 589 00:36:08,010 --> 00:36:10,812 - How was your day? - Good. 590 00:36:10,813 --> 00:36:14,549 I've seen mothers do three jobs 591 00:36:14,550 --> 00:36:18,252 hanya untuk bisa membayar sewa. 592 00:36:18,253 --> 00:36:20,020 And I don't want that. 593 00:36:20,021 --> 00:36:22,527 So I started school. 594 00:36:24,527 --> 00:36:27,495 How do you build wealth? 595 00:36:27,496 --> 00:36:29,263 Not that I want to be rich. 596 00:36:29,264 --> 00:36:30,265 I'm just... 597 00:36:30,266 --> 00:36:31,834 How do you do it? 598 00:36:31,835 --> 00:36:33,401 How do you build wealth, 599 00:36:33,402 --> 00:36:35,203 when you have nothing, 600 00:36:35,204 --> 00:36:38,439 you don't have any assets, you have nothing? 601 00:36:38,440 --> 00:36:41,310 This will be the mother's office. Look. 602 00:36:41,311 --> 00:36:43,312 This will be my office. 603 00:36:43,313 --> 00:36:47,999 Not yet become the mother's office, but will soon be the mother's office. 604 00:36:49,219 --> 00:36:50,785 The community will be less concerned 605 00:36:50,786 --> 00:36:53,455 about and wealth income gaps 606 00:36:53,456 --> 00:36:56,692 if everyone has a chance to succeed. 607 00:36:56,693 --> 00:36:58,493 As long as there is a high will, 608 00:36:58,494 --> 00:37:01,796 > 609 00:37:01,797 --> 00:37:04,332 as long as anyone has enough courage and take the initiative 610 00:37:04,333 --> 00:37:09,605 can go up on the income ladder, so we don't have a problem. 611 00:37:09,606 --> 00:37:12,908 But when the income gap increases, 612 00:37:12,909 --> 00:37:16,712 high mobility is actually less than before. 613 00:37:16,713 --> 00:37:20,547 - Do you want to see something else? - Yes. 614 00:37:20,548 --> 00:37:26,154 In America, 42% of children born in poverty will not move. 615 00:37:26,155 --> 00:37:27,723 Compared to Denmark, 616 00:37:27,724 --> 00:37:31,794 where only 25% of poor children live there. 617 00:37:31,795 --> 00:37:33,160 Even England, 618 00:37:33,161 --> 00:37:35,796 countries who still have an aristocracy, (best government) 619 00:37:35,797 --> 00:37:39,503 has higher mobility than we have. 620 00:37:40,503 --> 00:37:43,471 Sometimes people tell me, 621 00:37:43,472 --> 00:37:47,642 "Okay, Reich, if you think it can be done better, 622 00:37:47,643 --> 00:37:49,944 " which country is better? 623 00:37:49,945 --> 00:37:52,446 Who should we imitate? " 624 00:37:52,447 --> 00:37:55,417 And the answer is 625 00:37:55,418 --> 00:37:56,689 United States. 626 00:38:01,389 --> 00:38:04,459 In the three decades after World War II, the period I called "Great Prosperity," 627 00:38:04,460 --> 00:38:07,062 the economy increased dramatically, 628 00:38:07,063 --> 00:38:08,997 but not only increased the economy, but also a very low gap. 629 00:38:08,998 --> 00:38:15,472 We make education a national priority, 630 00:38:16,472 --> 00:38:19,306 especially college. 631 00:38:19,307 --> 00:38:22,776 In 1940 , only 5% of American adults 632 00:38:22,777 --> 00:38:26,147 have a 4-year bachelor's degree, but the percentage starts to rise. 633 00:38:26,148 --> 00:38:32,289 GI Bill pays tuition fees for those who are returning from war, 634 00:38:34,289 --> 00:38:37,792 and subsequent extensions for state universities 635 00:38:37,793 --> 00:38:40,796 college is made affordable for many people. 636 00:38:40,797 --> 00:38:44,899 In the late 50s, we had an educated workforce 637 00:38:44,900 --> 00:38:49,038 for any country in the world. 638 00:38:49,039 --> 00:38:51,073 untuk negara manapun di dunia. 639 00:38:52,307 --> 00:38:54,999 Kita juga punya serikat buruh. 640 00:38:56,679 --> 00:39:02,917 In the mid-1950s, more than 1/3 of the workers came from trade unions. 641 00:39:02,918 --> 00:39:05,421 This gave workers the power of bidding 642 00:39:05,422 --> 00:39:08,689 to get a share bigger pie. 643 00:39:08,690 --> 00:39:12,826 We create the largest middle class in the world that ever existed. 644 00:39:12,827 --> 00:39:18,487 And the middle class becomes part of in a good cycle. 645 00:39:18,488 --> 00:39:20,488 WORKERS BUY MORE 646 00:39:20,489 --> 00:39:23,983 MORE WORKING COMPANIES 647 00:39:23,984 --> 00:39:27,227 TAX ADMISSION REVERSE 648 00:39:27,228 --> 00:39:30,367 GOVERNMENT INVESTS MORE 649 00:39:30,368 --> 00:39:33,616 EDUCATIONAL WORKERS BETTER 650 00:39:38,487 --> 00:39:40,254 The wider their prosperity, 651 00:39:40,255 --> 00:39:42,957 the more people who belong to that prosperity, 652 00:39:42,958 --> 00:39:46,437 the more prosperity can found. 653 00:39:54,137 --> 00:39:55,541 Hello. 654 00:39:59,541 --> 00:40:03,278 Okay, now... 655 00:40:03,279 --> 00:40:07,716 they will call in a minute. 656 00:40:07,717 --> 00:40:09,616 From American Public Media, 657 00:40:09,617 --> 00:40:12,319 this is the Market. 658 00:40:16,726 --> 00:40:21,163 America has made it difficult for young people to attend college. 659 00:40:21,164 --> 00:40:24,598 41 countries cut their budgets for college, 660 00:40:24,599 --> 00:40:27,806 and tuition fees went up as a result. 661 00:40:30,806 --> 00:40:32,839 One thing we have learned < br /> about the gap 662 00:40:32,840 --> 00:40:35,776 that this is clearly related to education, 663 00:40:35,777 --> 00:40:39,214 including college. 664 00:40:39,215 --> 00:40:41,883 More than anything, that's what lifts people up 665 00:40:41,884 --> 00:40:45,854 get out of poverty and occupy middle class during Great Prosperity. 666 00:40:45,855 --> 00:40:48,089 But starting in the late 1970s, 667 00:40:48,090 --> 00:40:52,197 college graduation rates began to be flat. 668 00:40:55,197 --> 00:40:58,033 Countries that continue to focus on higher education 669 00:40:58,034 --> 00:41:00,767 are able to handle globalization better 670 00:41:00,768 --> 00:41:03,937 dengan menciptakan tenaga kerja yang terampil. 671 00:41:03,938 --> 00:41:06,040 Look at South Korea. Look at the Netherlands. 672 00:41:06,041 --> 00:41:08,343 Look at Germany. 673 00:41:08,344 --> 00:41:11,212 They invested heavily in education, 674 00:41:11,213 --> 00:41:15,582 in building skills on all their workers. 675 00:41:15,583 --> 00:41:17,017 Even though their salary is high, 676 00:41:17,018 --> 00:41:21,156 it is appropriate to make something that points to the iPhone made in Germany 677 00:41:21,157 --> 00:41:25,627 because it was very well made and very precisely. 678 00:41:25,628 --> 00:41:27,761 Basically, every other industrial country... 679 00:41:27,762 --> 00:41:30,966 Japan, Germany, France... they invest per capita 680 00:41:30,967 --> 00:41:36,571 is far more common in all fields: roads, bridges, general education. 681 00:41:36,572 --> 00:41:40,100 That's what we don't do. That's what we have to do. 682 00:41:41,677 --> 00:41:45,680 During for years, I've written about the importance of investing in society, 683 00:41:45,681 --> 00:41:48,383 and our workforce, so that our society can compete 684 00:41:48,384 --> 00:41:50,954 in the new global economy. 685 00:41:51,954 --> 00:41:57,911 And in 1992, I thought finally I might be able to do something about it. 686 00:41:57,992 --> 00:42:01,029 Today proudly me announce my candidacy 687 00:42:01,030 --> 00:42:03,665 as president of the United States. 688 00:42:05,934 --> 00:42:09,404 Bill Clinton said he had read all my books. 689 00:42:09,405 --> 00:42:10,904 They must have influenced him, 690 00:42:10,905 --> 00:42:14,676 > 691 00:42:14,677 --> 00:42:16,977 because he became the backbone of the 1992 campaign 692 00:42:16,978 --> 00:42:19,046 about prioritizing society. 693 00:42:19,047 --> 00:42:21,316 If you put the community first, if you do the right thing, 694 00:42:21,317 --> 00:42:23,919 what can work in the global economy, 695 00:42:23,920 --> 00:42:26,955 you will do what people Germans and Japanese do, 696 00:42:26,956 --> 00:42:29,357 You prioritize people first. You will expand the middle class. 697 00:42:29,358 --> 00:42:32,493 Here, the person I know 698 00:42:32,494 --> 00:42:37,799 and said, "Listen, Bob, I want you to come to Washington right now. 699 00:42:37,800 --> 00:42:41,468 I want you to run an economic transition team." 700 00:42:41,469 --> 00:42:45,476 I don't even know what an economic transition team is. 701 00:42:48,476 --> 00:42:52,881 You can't imagine the headache, the pleasure. 702 00:42:52,882 --> 00:42:59,220 The chance to take this idea, > practice it... 703 00:42:59,221 --> 00:43:02,756 Call this economic plan Prioritize the Community 704 00:43:02,757 --> 00:43:04,759 to bring my trust that 705 00:43:04,760 --> 00:43:08,196 our nation can have a high salary,
high economic growth 706 00:43:08,197 --> 00:43:11,700 if we are committed to investing in Americans 707 00:43:11,701 --> 00:43:14,535 and make the American economy prosperous. 708 00:43:14,536 --> 00:43:18,506 That's why days I mentioned this one of my trusted advisors 709 00:43:18,507 --> 00:43:20,008 and my closest friend 710 00:43:20,009 --> 00:43:22,047 to occupy the labor secretary. 711 00:43:25,047 --> 00:43:28,216 Another humility, which has assumed for months 712 00:43:28,217 --> 00:43:31,051 that I was on the list Bill Clinton's short person. 713 00:43:31,052 --> 00:43:32,986 You can go up, Bob . There's a footing. 714 00:43:32,987 --> 00:43:35,524 Oh, there's a footing here. Okay. 715 00:43:35,525 --> 00:43:37,459 This is a dream job 716 00:43:37,460 --> 00:43:40,794 for someone like me, who is worried 717 00:43:40,795 --> 00:43:43,631 and unsettling and learning and teaching 718 00:43:43,632 --> 00:43:45,600 and write about what has happened 719 00:43:45,601 --> 00:43:48,102 to American labor for years. 720 00:43:48,103 --> 00:43:52,841 Long decline in median salary... salary per person right in the middle of 721 00:43:52,842 --> 00:43:55,776 salary scale... the decline began in 1978. 722 00:43:55,777 --> 00:43:59,379 his salary began to decline in terms of power buy dollars... 723 00:43:59,380 --> 00:44:05,854 On the one hand, it's quite clear the salary is evenly distributed for most people. 724 00:44:05,855 --> 00:44:08,489 On the other hand, some people in this country 725 00:44:08,490 --> 00:44:11,032 is doing very well. 726 00:44:17,032 --> 00:44:21,870 You see, the same new technology that brings globalization and automation 727 00:44:21,871 --> 00:44:24,738 bestows great prizes on people 728 00:44:24,739 --> 00:44:29,347 Well educated and connections in exploiting globalization. 729 00:44:32,347 --> 00:44:34,549 Some tell me, "But wait a minute. 730 00:44:34,550 --> 00:44:37,986 You have technology that you didn't have in 1980. " 731 00:44:37,987 --> 00:44:40,254 We don't have flat screen TVs. 732 00:44:40,255 --> 00:44:42,522 We don't have cheap air travel. 733 00:44:42,523 --> 00:44:44,225 We don't have Skype. 734 00:44:44,226 --> 00:44:47,127 We don't have internet. 735 00:44:47,128 --> 00:44:49,062 So who wins and loses 736 00:44:49,063 --> 00:44:52,634 from this big shift? 737 00:44:52,635 --> 00:44:54,868 The customer is clearly the one who wins. 738 00:44:54,869 --> 00:44:57,538 I mean, you guys, as a consumer, 739 00:44:57,539 --> 00:45:01,207 kalian berperan dengan sangat baik. Kalian dapat produk yang indah. 740 00:45:01,208 --> 00:45:05,212 Almost everything you buy gets cheaper, 741 00:45:05,213 --> 00:45:08,216 and investors play a good role. 742 00:45:08,217 --> 00:45:14,723 Here's a graph showing the Dow Jones industry up and down . 743 00:45:14,724 --> 00:45:17,459 You can see something here. 744 00:45:17,460 --> 00:45:19,326 There is a kind of pattern. 745 00:45:21,563 --> 00:45:24,198 You see, something happened, 746 00:45:24,199 --> 00:45:29,803 and I thought it happened < start in these years. 747 00:45:31,840 --> 00:45:34,975 You see this is... 748 00:45:34,976 --> 00:45:37,779 the year when I was the labor secretary. 749 00:45:37,780 --> 00:45:41,647 And, investors very excited. 750 00:45:42,585 --> 00:45:45,986 We all see the stock market soaring like this. 751 00:45:45,987 --> 00:45:48,489 I mean, how... What is going on? 752 00:45:48,490 --> 00:45:49,957 How could that be possible? 753 00:45:49,958 --> 00:45:54,463 Are there companies that are suddenly profitable and 754 00:45:55,463 --> 00:45:57,297 One of the big causes of the company 755 00:45:57,298 --> 00:46:02,069 has many benefits, < br /> because they keep paying. 756 00:46:02,070 --> 00:46:04,437 At the same time, the company CEO 757 00:46:04,438 --> 00:46:09,544 starts paying large multiples of from the average income of workers. 758 00:46:09,545 --> 00:46:12,113 When we, in the 4th quarter of last year, 759 00:46:12,114 --> 00:46:13,913 together with a number of other companies, 760 00:46:13,914 --> 00:46:16,984 need to pay attention to reduction of workforce, 761 00:46:16,985 --> 00:46:18,953 it's a difficult time. 762 00:46:18,954 --> 00:46:22,357 You know that you are making an impact 763 00:46:22,358 --> 00:46:25,426 and will complicate it, many of them, 764 00:46:25,427 --> 00:46:27,995 in finding new jobs, but you have to do it 765 00:46:27,996 --> 00:46:34,804 to organize, on that day, for the sake of survival. 766 00:46:35,804 --> 00:46:39,006 This graph shows the compensation 767 00:46:39,007 --> 00:46:43,444 the highest paid executives in the year 2010. 768 00:46:43,445 --> 00:46:46,948 These executives are paid a lot. 769 00:46:46,949 --> 00:46:50,116 Executive salary continues to rise. 770 00:46:50,117 --> 00:46:53,254 Here's the comparison average CEO compensation 771 00:46:53,255 --> 00:46:55,122 to pay workers. 772 00:46:55,123 --> 00:47:00,294 Suddenly this comparison is untold. 773 00:47:00,295 --> 00:47:04,966 Bill Clinton in 1992, one of his campaign boards 774 00:47:04,967 --> 00:47:10,171 stated no company should be able to reduce executive compensation costs 775 00:47:10,172 --> 00:47:11,772 more than $ 1 million. 776 00:47:11,773 --> 00:47:15,042 Many large executive companies raise their own salaries 777 00:47:15,043 --> 00:47:17,243 even when their company loses 778 00:47:17,244 --> 00:47:20,848 and its workers are threatened to enter into the unemployment line. 779 00:47:20,849 --> 00:47:23,283 I hope travelers and tenants of labor 780 00:47:23,284 --> 00:47:26,254 American company to know, if you sell your company 781 00:47:26,255 --> 00:47:28,221 and workers and country along the river, 782 00:47:28,222 --> 00:47:29,890 You will be called on the carpet. 783 00:47:29,891 --> 00:47:33,026 That's what the president alluded to the pulpit. 784 00:47:33,027 --> 00:47:34,595 When actually implementing it, 785 00:47:34,596 --> 00:47:38,332 The Treasury Department decides that as long as the CEO pays 786 00:47:38,333 --> 00:47:40,868 it is related to company performance, 787 00:47:40,869 --> 00:47:43,504 you can deduct more than $ 1 million in salary. 788 00:47:43,505 --> 00:47:47,341 That's the signal for executives 789 00:47:47,342 --> 00:47:51,412 and for the board of directors to make more 790 00:47:51,413 --> 00:47:54,316 executive payments to stock options. 791 00:47:54,317 --> 00:47:57,218 That's where all stock options come from . 792 00:47:57,219 --> 00:48:02,559 This is a kind of distortion of Bill Clinton's promise in the 1992 election. 793 00:48:04,559 --> 00:48:06,694 Another result of all of this you got 794 00:48:06,695 --> 00:48:11,431 people in the third group > which plays a very good role. 795 00:48:11,432 --> 00:48:13,535 They are the ones who always have a good role, 796 00:48:13,536 --> 00:48:16,604 especially in times of high inequality: 797 00:48:16,605 --> 00:48:18,872 the funders. 798 00:48:20,809 --> 00:48:23,611 Between 1997 and 2007, 799 00:48:23,612 --> 00:48:27,582 funding was the most fast-growing part of the American economy. 800 00:48:27,583 --> 00:48:30,651 In 2009, during the middle of the recession, 801 00:48:30,652 --> 00:48:38,927 seven fund protection managers took over $ 1 billion per person. 802 00:48:39,927 --> 00:48:45,737 Remember that the government set /> rules in the market function. 803 00:48:47,737 --> 00:48:50,171 We deregulate Wall Street, 804 00:48:50,172 --> 00:48:56,047 so Wall Street is involved in more behavior. 805 00:48:59,047 --> 00:49:04,219 This is the sector financial wages relative to others. 806 00:49:05,219 --> 00:49:07,520 Does this graph look familiar? 807 00:49:07,521 --> 00:49:09,957 Here's our bridge graph, 808 00:49:09,958 --> 00:49:11,859 our gap graph. 809 00:49:11,860 --> 00:49:14,331 our gap graph. 810 00:49:15,331 --> 00:49:21,067 p> 811 00:49:21,068 --> 00:49:25,439 The same pattern. 812 00:49:25,440 --> 00:49:29,243 Meanwhile you have many workers who succumb to this big lie. 813 00:49:29,244 --> 00:49:32,178 Bad government, a market that good, 814 00:49:33,414 --> 00:49:36,951 Father in heaven, we thank for the food served in front of us. 815 00:49:36,952 --> 00:49:39,754 Bless this food and the hand that made it. 816 00:49:39,755 --> 00:49:41,254 Bless to strengthen ourselves. 817 00:49:41,255 --> 00:49:44,225 Bless us today, Lord, for those who have no food. 818 00:49:44,226 --> 00:49:46,426 Bless them with comfort and hope. 819 00:49:46,427 --> 00:49:47,261 Amen. 820 00:49:47,262 --> 00:49:50,131 Oh, it looks good. 821 00:49:50,132 --> 00:49:53,067 I am registered as a Republic. 822 00:49:53,068 --> 00:49:55,502 May be related to religion too, 823 00:49:55,503 --> 00:49:56,837 Mormons. 824 00:49:56,838 --> 00:49:58,305 The majority of Mormons. 825 00:49:58,306 --> 00:50:02,276 There are rare Democrats, but most are Republicans. 826 00:50:04,478 --> 00:50:08,281 I don't think of myself as a person Those who have problems in the economy. 827 00:50:08,282 --> 00:50:10,884 But I'm worried about my child. 828 00:50:10,885 --> 00:50:15,790 We have paid for a doctor's consultation. We have paid the dentist. 829 00:50:15,791 --> 00:50:18,692 Two of my children currently don't have health insurance. 830 00:50:18,693 --> 00:50:22,196 Children without health care are a big fear for us. 831 00:50:22,197 --> 00:50:24,834 That is a concern my main. 832 00:50:26,034 --> 00:50:29,470 I am a power plant operator. 833 00:50:29,471 --> 00:50:31,105 Working in Geysers, 834 00:50:31,106 --> 00:50:34,008 renewable energy sources. 835 00:50:34,009 --> 00:50:35,776 Calpine is a good company . 836 00:50:35,777 --> 00:50:37,812 It's good. 837 00:50:37,813 --> 00:50:41,281 So why do they reduce workers and cut off leave? 838 00:50:41,282 --> 00:50:44,551 The work will be more profitable 839 00:50:44,552 --> 00:50:47,687 if they reduce personnel. 840 00:50:47,688 --> 00:50:49,960 That is the deal. 841 00:50:57,932 --> 00:51:02,303 I always pro-trade union from a philosophical point of view. 842 00:51:02,304 --> 00:51:05,205 I consider myself
part of the workforce. 843 00:51:05,206 --> 00:51:08,711 I think workers need direction. 844 00:51:10,711 --> 00:51:13,781 Companies bring anti-union consultants 845 00:51:13,782 --> 00:51:18,252 and good campaigning to oppose trade unions. 846 00:51:18,253 --> 00:51:20,754 Let me explain my arrival here... 847 00:51:20,755 --> 00:51:23,558 Some of you are still hesitant. Some of them have come out. 848 00:51:23,559 --> 00:51:25,959 There is atmosphere tension. 849 00:51:25,960 --> 00:51:28,162 The underlying reality, 850 00:51:28,163 --> 00:51:29,997 if workers don't have power, 851 00:51:29,998 --> 00:51:32,066 if they don't have a voice, 852 00:51:32,067 --> 00:51:36,437 p> 853 00:51:36,438 --> 00:51:38,872 Inevitably the salary and benefits begin to erode. 854 00:51:38,873 --> 00:51:41,109 That can't be avoided. 855 00:51:41,110 --> 00:51:43,276 I am proud to be a Christian myself. 856 00:51:43,277 --> 00:51:47,582 I'm proud to be a Calpine employee. 857 00:51:47,583 --> 00:51:52,419 I think they treat me more just than they should. 858 00:51:52,420 --> 00:51:56,056 If you have a company that depends on shareholders, 859 00:51:56,057 --> 00:51:59,259 there is an increase and development pressure on the company 860 00:51:59,260 --> 00:52:00,960 That's how capitalism is. 861 00:52:00,961 --> 00:52:02,162 That's not bad. 862 00:52:02,163 --> 00:52:07,533 But inevitably it means there is greater pressure 863 00:52:07,534 --> 00:52:12,105 that drives salary and allowances to the minimum value. 864 00:52:12,106 --> 00:52:14,308 If you are a capitalist. I'm a capitalist. 865 00:52:14,309 --> 00:52:16,243 For people who make millions, 866 00:52:16,244 --> 00:52:17,678 is fantastic 867 00:52:17,679 --> 00:52:19,413 I can do the same thing 868 00:52:19,414 --> 00:52:21,415 if I go to school and have intelligence. 869 00:52:21,416 --> 00:52:22,750 I can't. 870 00:52:22,751 --> 00:52:24,218 So I choose workers. 871 00:52:24,219 --> 00:52:29,189 And there is a sort of burden in the company in America today that the business costs 872 00:52:29,190 --> 00:52:32,459 are moving it... then go somewhere else . 873 00:52:32,460 --> 00:52:35,562 But now is the richest country in the world, 874 00:52:35,563 --> 00:52:37,631 and we are richer than before. 875 00:52:37,632 --> 00:52:40,734 Believe me, we as a nation
have played a big role, 876 00:52:40,735 --> 00:52:42,535 and certain people in this country 877 00:52:42,536 --> 00:52:45,473 does it better than anyone in this world 878 00:52:45,474 --> 00:52:47,508 in world history. 879 00:52:49,277 --> 00:52:50,845 This isn't just Calpine. 880 00:52:50,846 --> 00:52:54,482 I took $ 12 / hour salary deductions. 881 00:52:54,483 --> 00:52:56,783 My allowances are decreasing. 882 00:52:56,784 --> 00:52:57,951 I'm on duty twice. 883 00:52:57,952 --> 00:53:00,587 I run two factories, not one. 884 00:53:00,588 --> 00:53:03,290 If you have $ 10 million or has $ 1 billion, 885 00:53:03,291 --> 00:53:07,095 why do you want me too? 886 00:53:07,096 --> 00:53:08,003 Okay? 887 00:53:15,003 --> 00:53:21,542 Large companies are designed not to produce good job in the US. 888 00:53:21,543 --> 00:53:25,513 Large companies are designed to make a profit. 889 00:53:25,514 --> 00:53:27,647 And thanks to administrative members, 890 00:53:27,648 --> 00:53:29,450 Jeff and Cass and others... 891 00:53:29,451 --> 00:53:31,051 It's not a matter of error. 892 00:53:31,052 --> 00:53:34,654 They have GE as Presidential Job Board. 893 00:53:34,655 --> 00:53:36,790 I want to thank you to Jeff 894 00:53:36,791 --> 00:53:41,629 which continues to lead in this Job Board. 895 00:53:41,630 --> 00:53:44,265 GE is creating more jobs abroad 896 00:53:44,266 --> 00:53:47,334 than creating jobs in the US. 897 00:53:47,335 --> 00:53:49,971 So who is taking care of American workers? 898 00:53:49,972 --> 00:53:52,473 Who needs American workers 899 00:53:52,474 --> 00:53:55,908 GE and other large companies and Wall Street 900 00:53:55,909 --> 00:53:57,377 and also a very rich person, 901 00:53:57,378 --> 00:53:59,946 which basically has capital all over the world... 902 00:53:59,947 --> 00:54:03,051 who has stronger politics, 903 00:54:03,052 --> 00:54:07,355 who is in charge of 904 00:54:07,356 --> 00:54:09,089 in Washington and in the nation's capital 905 00:54:09,090 --> 00:54:12,259 that improves the welfare of the American workforce? 906 00:54:12,260 --> 00:54:15,041 The answer is no one. 907 00:54:27,041 --> 00:54:30,678 So why does the nation not react to the big regression 908 00:54:30,679 --> 00:54:33,680 yang dimulai sekitar tahun 1980? 909 00:54:33,681 --> 00:54:36,584 Why don't we take bold steps to make the economy 910 00:54:36,585 --> 00:54:40,824 keep running for almost everyone? 911 00:54:42,824 --> 00:54:45,526 Because we know three ways 912 00:54:45,527 --> 00:54:48,462 for overcome equalization or decreased income 913 00:54:48,463 --> 00:54:51,968 without reducing our relative living standards. 914 00:54:53,668 --> 00:54:57,136 Remember, starting in the late 70s, 915 00:54:57,137 --> 00:54:59,473 typical current salary is evenly distributed. 916 00:54:59,474 --> 00:55:02,009 But lots of people buy. 917 00:55:02,010 --> 00:55:04,678 How do they do that? 918 00:55:04,679 --> 00:55:11,417 How can the middle class keep expenses 919 00:55:11,418 --> 00:55:14,087 p> 920 00:55:14,088 --> 00:55:18,026 when the salary is evenly distributed? 921 00:55:18,027 --> 00:55:23,363 The first coping mechanism, starts at the end of the 70s, 922 00:55:28,036 --> 00:55:30,571 that is, the woman who goes to work. 923 00:55:30,572 --> 00:55:32,238 ♪ Tumble out of bed and stumble to the kitchen ♪ 924 00:55:32,239 --> 00:55:35,642 ♪ And yawn and stretch and try to come to life ♪ 925 00:55:35,643 --> 00:55:38,745 Young mothers work in offices in large numbers. 926 00:55:38,746 --> 00:55:41,348 Never look like that, social revolution. 927 00:55:41,349 --> 00:55:42,950 ♪ Traffic starts jump & apos; ♪ 928 00:55:42,951 --> 00:55:46,319 ♪ With folks like me on the jobs from nine to five ♪ 929 00:55:46,320 --> 00:55:48,421 ♪ Working nine to five ♪ 930 00:55:48,422 --> 00:55:49,489 ♪ What a way.... ♪ 931 00:55:49,490 --> 00:55:51,892 Nine to Five. 932 00:55:51,893 --> 00:55:53,194 Dolly Parton? 933 00:55:53,195 --> 00:55:54,995 1980. 934 00:55:54,996 --> 00:55:57,832 Dolly Parton, he is only 5 feet tall. 935 00:55:57,833 --> 00:56:00,100 ♪ And they never give you credit ♪ 936 00:56:00,101 --> 00:56:05,339 ♪ It & apos; s enough to drive you crazy if you let it ♪ 937 00:56:05,340 --> 00:56:06,841 ♪ Nine to five ♪ 938 00:56:06,842 --> 00:56:08,942 They don't go to work because 939 00:56:08,943 --> 00:56:12,913 all these wonderful professional opportunities are open to women. 940 00:56:12,914 --> 00:56:14,247 Some of them work, 941 00:56:14,248 --> 00:56:16,616 but that is not the main reason women go to work. 942 00:56:16,617 --> 00:56:19,486 They go to work especially because they have to support 943 00:56:19,487 --> 00:56:21,122 decreased family income 944 00:56:21,123 --> 00:56:25,826 because of men in the family, their salaries are everywhere. 945 00:56:25,827 --> 00:56:30,598 But there are limits to young mothers can go to work. 946 00:56:30,599 --> 00:56:34,600 Then the second strategy was used in the 1990s 947 00:56:34,601 --> 00:56:38,038 that families... both men and women... 948 00:56:38,039 --> 00:56:39,406 works longer. 949 00:56:39,407 --> 00:56:41,741 ♪ Working nine to five ♪ 950 00:56:41,742 --> 00:56:44,210 ♪ What a way to make a living ♪ 951 00:56:44,211 --> 00:56:47,013 ♪ Barely getting by ♪ 952 00:56:47,014 --> 00:56:50,283 When I was a labor secretary, I've seen the data, 953 00:56:50,284 --> 00:56:53,287 and I was amazed, then went down to the field, 954 00:56:53,288 --> 00:56:57,524 go to various cities, talk to people who work, every hour... 955 00:56:57,525 --> 00:57:01,629 Side jobs, third job, overtime. 956 00:57:01,630 --> 00:57:05,431 If they are professional, the bill is billowing from their ears. 957 00:57:05,432 --> 00:57:10,236 We work 300 hours per year more than typical Europeans. 958 00:57:10,237 --> 00:57:15,408 We work hard not diligently... diligently Japanese people. 959 00:57:15,409 --> 00:57:18,444 But there is a limit to how much hard you can work. 960 00:57:18,445 --> 00:57:23,517 When they are tired, the handling mechanism third is lent , and become debt, 961 00:57:23,518 --> 00:57:27,687 that looks easy because housing prices will rise. 962 00:57:29,257 --> 00:57:32,526 For 13 years, Americans have enjoyed housing, 963 00:57:32,527 --> 00:57:34,727 the longest time ever. 964 00:57:34,728 --> 00:57:37,765 It's the right time to buy a house in Delray Beach. 965 00:57:37,766 --> 00:57:39,633 You can get it, if you have cash , 966 00:57:39,634 --> 00:57:41,602 This is an extraordinary deal. 967 00:57:41,603 --> 00:57:45,939 From mid to end of the 90s and so on, 968 00:57:45,940 --> 00:57:48,975 You got this big increase in housing prices. 969 00:57:48,976 --> 00:57:52,712 People say, "I can take my home loan." 970 00:57:52,713 --> 00:57:55,982 "I can use the house as a guarantee," or, "I can refinance my house . " 971 00:57:55,983 --> 00:58:00,421 That's what the middle class continues to do. The house is like a piggy bank. 972 00:58:01,121 --> 00:58:04,625 Americans use their house as an ATM, 973 00:58:04,626 --> 00:58:09,296 cashed more than $ 500 billion into home shares 974 00:58:09,297 --> 00:58:14,067 from 2001-2005 to cover expenses such as medical expenses, 975 00:58:14,068 --> 00:58:17,474 student loans, repairs, and credit cards . 976 00:58:19,474 --> 00:58:24,278 We have loan bubbles triggered by the American middle class 977 00:58:24,279 --> 00:58:27,848 who are trying to maintain living standards 978 00:58:27,849 --> 00:58:30,654 in the face of stagnant salaries. 979 00:58:32,654 --> 00:58:35,122 We see more customers every day, 980 00:58:35,123 --> 00:58:37,625 very sad, they have entered the loan hole 981 00:58:37,626 --> 00:58:40,896 which is very difficult to get out of there. 982 00:58:41,896 --> 00:58:44,096 But there is a limit to how far you can do that. 983 00:58:44,097 --> 00:58:46,500 It's a speculative bubble, 984 00:58:46,501 --> 00:58:49,602 and it exploded in 2008. 985 00:58:49,603 --> 00:58:53,306 We know what happened. And all the coping mechanisms 986 00:58:53,307 --> 00:58:59,680 are middle class use,
to avoid the harsh reality 987 00:58:59,681 --> 00:59:02,950 that their salary went away where for 30 years, 988 00:59:02,951 --> 00:59:07,391 was in line with inflation, and now it's gone. 989 00:59:10,391 --> 00:59:14,026 When the middle class doesn't share in economic gain, 990 00:59:14,027 --> 00:59:18,432 You enter into this bad cycle. 991 00:59:23,000 --> 00:59:27,230 SALARY SALES 992 00:59:27,231 --> 00:59:31,433 LESS WORKERS BUY 993 00:59:31,434 --> 00:59:35,678 SAVING COMPANY 994 00:59:35,679 --> 00:59:39,979 TAX RECEIPT DOWN 995 00:59:39,980 --> 00:59:44,219 GOVERNMENT REDUCES PROGRAMS 996 00:59:44,220 --> 00:59:48,398 LOW EDUCATIONAL WORKERS 997 00:59:48,399 --> 00:59:50,899 ADDITIONAL UNEMPLOYMENT 998 00:59:51,132 --> 00:59:57,203 The problem is, over the past three decades, < br /> nothing has changed fundamentally 999 00:59:57,204 --> 00:59:59,612 into the form of a gap. 1000 01:00:00,842 --> 01:00:03,243 And that was only after in the Clinton administration 1001 01:00:03,244 --> 01:00:07,080 that there was an opportunity to reverse all this. 1002 01:00:07,081 --> 01:00:10,984 And it's really frustrating. 1003 01:00:10,985 --> 01:00:16,323 The Senates, I believe, are on the verge of going through a work program. 1004 01:00:16,324 --> 01:00:17,491 Everything is going well. 1005 01:00:17,492 --> 01:00:20,127 We have a surplus budget. 1006 01:00:20,128 --> 01:00:21,995 We can use the surplus 1007 01:00:21,996 --> 01:00:24,397 and give it in education and job training, 1008 01:00:24,398 --> 01:00:28,134 change the structure of the economy. 1009 01:00:28,135 --> 01:00:32,872 But there is no political will to do that. 1010 01:00:32,873 --> 01:00:34,441 Before I leave, I also want to say 1011 01:00:34,442 --> 01:00:38,078 Special thanks to my old Reich secretary, 1012 01:00:38,079 --> 01:00:40,379 who has fought for minimum wages. 1013 01:00:40,380 --> 01:00:44,384 A very beautiful day for him too, and I thank you for your efforts. 1014 01:00:44,385 --> 01:00:49,154 I have to say that there will be no misunderstanding. 1015 01:00:49,155 --> 01:00:52,392 You know, Bill Clinton did not lead 1016 01:00:52,393 --> 01:00:56,263 one of the best economies what we have in this country 1017 01:00:56,264 --> 01:00:57,631 in life's memories. 1018 01:00:57,632 --> 01:00:59,665 Salaries from most people go up. 1019 01:00:59,666 --> 01:01:02,303 Poverty is actually decreasing. 1020 01:01:02,304 --> 01:01:04,939 But we don't do enough. 1021 01:01:04,940 --> 01:01:09,914 We don't change the trend underlying it. 1022 01:01:12,614 --> 01:01:15,515 The pain gets to the butt. 1023 01:01:15,516 --> 01:01:18,953 I mean, seeing back, I'm embarrassed. 1024 01:01:18,954 --> 01:01:21,488 During the meeting, I was silent about... 1025 01:01:21,489 --> 01:01:27,026 gaps, and, "Can we see the distribution effects of this policy and that? " 1026 01:01:27,027 --> 01:01:28,495 I can predict. 1027 01:01:28,496 --> 01:01:30,263 People roll their eyes. 1028 01:01:30,264 --> 01:01:34,067 I'm surprised Bill Clinton keeps me around. 1029 01:01:34,068 --> 01:01:37,236 I want to take you up to date < > on some things. 1030 01:01:37,237 --> 01:01:40,839 First of all, the president has been re-elected. 1031 01:01:42,943 --> 01:01:46,712 The second I want to go home. 1032 01:01:52,052 --> 01:01:55,288 I am very glad you didn't applaud. 1033 01:01:56,557 --> 01:01:57,823 In the end, I left it. 1034 01:01:57,824 --> 01:01:59,491 Some, I'm disappointed. 1035 01:01:59,492 --> 01:02:02,730 Some, I don't see anything in my family 1036 01:02:02,731 --> 01:02:04,096 I've never seen a boy. 1037 01:02:04,097 --> 01:02:07,945 I told Bill Clinton, I have to go home. 1038 01:02:17,945 --> 01:02:21,814 I ask myself 1039 01:02:21,815 --> 01:02:25,622 have I failed miserably. 1040 01:02:27,322 --> 01:02:31,124 I often say the same thing for 30 years. 1041 01:02:31,125 --> 01:02:35,198 And some trends develop worse. 1042 01:02:36,498 --> 01:02:38,464 > 1043 01:02:38,465 --> 01:02:42,471 Threats to the economy and democracy are getting worse. 1044 01:02:44,271 --> 01:02:49,375 But I convince myself when feeling calm. 1045 01:02:49,376 --> 01:02:55,381 I say, close to home, nuts and bolts, 1046 01:02:55,382 --> 01:02:58,518 above the kitchen sink, dining table, 1047 01:02:58,519 --> 01:03:02,087 This is the most important for most people: 1048 01:03:02,088 --> 01:03:08,062 good work, salary well, good opportunities 1049 01:03:08,063 --> 01:03:11,665 and make a home for their child. 1050 01:03:11,666 --> 01:03:14,036 That's how people live. 1051 01:03:16,036 --> 01:03:18,270 Detective Conan O & apos; Brien 1052 01:03:18,271 --> 01:03:23,246 And Detective Former Minister of Manpower ? 1053 01:03:25,246 --> 01:03:27,080 I won't spend my adult life 1054 01:03:27,081 --> 01:03:29,981 by banging my head against the wall if you don't think it's the last payout 1055 01:03:30,650 --> 01:03:33,653 in the form of social change. 1056 01:03:33,654 --> 01:03:38,892 No! 1057 01:03:38,893 --> 01:03:41,227 dalam bentuk perubahan sosial. 1058 01:03:41,228 --> 01:03:44,997 Tidak! 1059 01:03:44,998 --> 01:03:47,404 That's why I teach. 1060 01:03:49,404 --> 01:03:52,339 People who are worried with the expansion of the gap 1061 01:03:52,340 --> 01:03:56,276 are also worried about something else. 1062 01:03:56,277 --> 01:03:58,044 This is not high mobility 1063 01:03:58,045 --> 01:04:00,046 Not even trust. 1064 01:04:00,047 --> 01:04:06,556 They are worried about the weakening of democracy... 1065 01:04:08,556 --> 01:04:12,158 when there are many resources, so much money , lots of wealth, 1066 01:04:12,159 --> 01:04:14,794 lots of income accumulates, 1067 01:04:14,795 --> 01:04:22,938 with the capacity of money who can control politics. 1068 01:04:34,581 --> 01:04:36,884 There is nothing cynical when it starts. 1069 01:04:36,885 --> 01:04:39,919 They usually bring someone who hasn't been seen for several years. 1070 01:04:39,920 --> 01:04:41,888 They pay him 10 thousand. 1071 01:04:41,889 --> 01:04:43,857 Maybe be the best man in your marriage 1072 01:04:43,858 --> 01:04:47,259 or who plays soccer with you. You said, "Eddie, I haven't seen you..." 1073 01:04:47,260 --> 01:04:51,964 Then they say, "I want to submit to the old people here..." 1074 01:04:51,965 --> 01:04:54,701 Then they give the whole burden. 1075 01:04:54,702 --> 01:05:02,241 But the money... is it lobbyists come with unspoken reality, 1076 01:05:02,242 --> 01:05:04,009 "We can help win the next election 1077 01:05:04,010 --> 01:05:05,312 if you work with us?" 1078 01:05:05,313 --> 01:05:07,448 There is a man in every office 1079 01:05:07,449 --> 01:05:09,281 saying, "Look-and-so. 1080 01:05:09,282 --> 01:05:12,118 " He is from the American Leather Shoes Company. 1081 01:05:12,119 --> 01:05:14,687 "They have maximized , " which means giving you the maximum 1082 01:05:14,688 --> 01:05:18,125 when you first start. 1083 01:05:18,126 --> 01:05:21,962 " Give the maximum in everything. "You run three times, 1084 01:05:21,963 --> 01:05:24,730 and they are there for you at each point. " 1085 01:05:24,731 --> 01:05:25,966 And for what? 1086 01:05:25,967 --> 01:05:27,670 Access. 1087 01:05:29,670 --> 01:05:35,008 This is where there is an error, < br /> and I think the mistake can be justified. 1088 01:05:35,009 --> 01:05:36,475 It doesn't mean that people are rich. 1089 01:05:36,476 --> 01:05:40,279 But they abuse wealth 1090 01:05:40,280 --> 01:05:46,720 by lobbying and subsidy and tax bailouts 1091 01:05:46,721 --> 01:05:49,756 who will entrench their wealth. 1092 01:05:49,757 --> 01:05:53,593 That is why the rule has changed dramatically. 1093 01:05:53,594 --> 01:05:54,895 Look at history. 1094 01:05:54,896 --> 01:05:57,430 Tax gaps and rates 1095 01:05:57,431 --> 01:05:59,899 have an inverse relationship. 1096 01:05:59,900 --> 01:06:03,669 At the lowest gap, The highest tax rate. 1097 01:06:03,670 --> 01:06:09,753 When the gap is highest, the tax rate on the rich decreases. 1098 01:06:19,753 --> 01:06:23,089 Under Dwight D. Eisenhower... he is a Republican, 1099 01:06:23,090 --> 01:06:25,058 nobody dares to call him a socialist... 1100 01:06:25,059 --> 01:06:29,395 The highest tax rate is currently 91%. 1101 01:06:29,396 --> 01:06:30,997 Even when you consider 1102 01:06:30,998 --> 01:06:35,602 all deductions and all tax credits they still pay above 50%. 1103 01:06:35,603 --> 01:06:38,705 I, John Fitzgerald Kennedy, swear... 1104 01:06:38,706 --> 01:06:40,306 I will faithfully run... 1105 01:06:40,307 --> 01:06:43,709 The position of president of the United States... 1106 01:06:43,710 --> 01:06:44,877 So help I, God. 1107 01:06:44,878 --> 01:06:46,178 So help me, Lord. 1108 01:06:46,179 --> 01:06:50,484 The highest tax is never below 70% 1109 01:06:50,485 --> 01:06:55,126 until Reagan drops the tax. 1110 01:06:59,126 --> 01:07:01,694 Read my lips. 1111 01:07:01,695 --> 01:07:05,098 There are no new taxes. 1112 01:07:05,099 --> 01:07:07,968 I, William Jefferson Clinton... 1113 01:07:07,969 --> 01:07:09,134 I, George Walker Bush... 1114 01:07:09,135 --> 01:07:10,335 > 1115 01:07:10,336 --> 01:07:11,772 Swear... 1116 01:07:11,773 --> 01:07:15,140 Swear... 1117 01:07:15,141 --> 01:07:16,977 I, Barack Hussein Obama, swear... 1118 01:07:16,978 --> 01:07:18,412 In fact, most of it > the richest people in the country 1119 01:07:18,413 --> 01:07:20,312 don't pay close to that 1120 01:07:20,313 --> 01:07:23,482 because most of their income is 1121 01:07:23,483 --> 01:07:27,654 My total tax payment... salary tax plus income tax, 1122 01:07:27,655 --> 01:07:31,158 is 17.7%. 1123 01:07:31,159 --> 01:07:33,725 The average for offices is 32.9%. 1124 01:07:33,726 --> 01:07:37,730 There is no one in the office, receptionist, payment of the tax rate is low. 1125 01:07:37,731 --> 01:07:41,334 The tax system is leaning towards the rich 1126 01:07:41,335 --> 01:07:43,837 and stay away from the middle class in the last 10 years. 1127 01:07:43,838 --> 01:07:46,573 This is dramatic, and I don't feel it deserves to be appreciated. 1128 01:07:46,574 --> 01:07:51,076 What effective level have I paid for? Maybe close to 15% of anything. 1129 01:07:51,077 --> 01:07:54,781 Income tax Mr. Romney finally published, 1130 01:07:54,782 --> 01:07:57,383 and he paid 13.9%. 1131 01:07:57,384 --> 01:08:00,854 Nancy and I paid 33% or more. 1132 01:08:00,855 --> 01:08:04,957 When I was 30- Bro, and for me it's terrible. 1133 01:08:04,958 --> 01:08:10,796 I paid 11% last year for earning eight digits. 1134 01:08:10,797 --> 01:08:13,567 More or less than Mitt Romney. 1135 01:08:13,568 --> 01:08:17,170 When you give entrepreneurs wealth tax breaks 1136 01:08:17,171 --> 01:08:18,705 all for the sake of the name job creation, 1137 01:08:18,706 --> 01:08:21,974 everything that really happened that Fat cats are getting fatter. 1138 01:08:21,975 --> 01:08:24,978 And, of course, that's what happened for the last 30 years. 1139 01:08:24,979 --> 01:08:29,485 That's the special economic feature of for the past 30 years. 1140 01:08:32,485 --> 01:08:36,822 Look, nobody wants to pay taxes. 1141 01:08:36,823 --> 01:08:40,093 But tax is the price we pay to pay for things that we 1142 01:08:40,094 --> 01:08:44,634 can't do individually, what we need to do together. 1143 01:08:46,634 --> 01:08:48,935 There is a kind of negative trickle-down effect, 1144 01:08:48,936 --> 01:08:50,670 and it starts in Washington. 1145 01:08:50,671 --> 01:08:53,706 If the rich don't pay their share fairly 1146 01:08:53,707 --> 01:08:56,309 and if the middle class basically falters 1147 01:08:56,310 --> 01:08:57,943 and doesn't pay a lot of taxes 1148 01:08:57,944 --> 01:09:00,212 because they don't make a lot of money, 1149 01:09:00,213 --> 01:09:03,353 then you will have a budget crisis along the path. 1150 01:09:06,353 --> 01:09:10,024 That means less income sharing in the country. 1151 01:09:11,024 --> 01:09:13,459 That means the state must pull his belt. 1152 01:09:13,460 --> 01:09:17,663 They cannot support public colleges. 1153 01:09:17,664 --> 01:09:22,702 State funds for tertiary institutions decreased, 1154 01:09:22,703 --> 01:09:26,475 tuition fees went up to compensate. 1155 01:09:27,475 --> 01:09:29,443 At Berkeley, where I taught, 1156 01:09:29,444 --> 01:09:33,080 in the 1960s , free tuition fees. 1157 01:09:33,081 --> 01:09:39,286 In the 1970s, $ 700 per year, in dollars today. 1158 01:09:39,287 --> 01:09:45,228 But now it costs $ 15,000, for its citizens. 1159 01:09:47,228 --> 01:09:48,861 Next week, members of Congress 1160 01:09:48,862 --> 01:09:50,863 have the opportunity to choose what we call 1161 01:09:50,864 --> 01:09:52,999 Buffett's Rules, and that's simple. 1162 01:09:53,000 --> 01:09:57,970 If you make more money... more than $ 1 million per year, 1163 01:09:57,971 --> 01:10:00,473 not if you already have $ 1 million 1164 01:10:00,474 --> 01:10:03,644 but if you produce /> more than $ 1 million per year, 1165 01:10:03,645 --> 01:10:05,946 you have to pay at least with the same percentage 1166 01:10:05,947 --> 01:10:09,482 of your income in taxes as a middle class family. 1167 01:10:09,483 --> 01:10:12,718 He killed the economy, and this is a class war. 1168 01:10:12,719 --> 01:10:15,188 I think Barack Obama is a socialist. 1169 01:10:15,189 --> 01:10:18,558 This will only be a minimum tax on people who make lots of money. 1170 01:10:18,559 --> 01:10:21,394 More class wars from good millionaires. 1171 01:10:21,395 --> 01:10:24,999 Is he really a socialist? 1172 01:10:31,072 --> 01:10:34,805 Is it Warren Buffett is a socialist? 1173 01:10:35,176 --> 01:10:38,978 You really don't understand what is socialism, right? 1174 01:10:38,979 --> 01:10:42,514 The CEO and Wall Street have acted very... very well. 1175 01:10:42,515 --> 01:10:44,651 Why should they get sustainable tax cuts 1176 01:10:44,652 --> 01:10:48,153 when, in fact, we have a big deficit? 1177 01:10:48,154 --> 01:10:49,589 Robert Reich. Do you know Robert Reich? 1178 01:10:49,590 --> 01:10:51,023 Sure. He is communist. 1179 01:10:51,024 --> 01:10:53,326 - You know that, right? - Communist / socialist. 1180 01:10:53,327 --> 01:10:55,261 - Yes. Confusing. - He was confusing. 1181 01:10:55,262 --> 01:10:59,264 The man secretly admired Karl Marx when he was in Cambridge... 1182 01:10:59,265 --> 01:11:03,569 Can I explain about this? < br /> I am not, nor have I, 1183 01:11:03,570 --> 01:11:06,505 been a member of the Communist or Communist Party. 1184 01:11:06,506 --> 01:11:08,175 Many people watch Fox, and I like Fox. 1185 01:11:08,176 --> 01:11:10,643 I like to be with you, and I like you personally. 1186 01:11:10,644 --> 01:11:12,511 I used to be at O & Apos; Reilly. 1187 01:11:12,512 --> 01:11:15,848 Actually, I replaced Bill O & apos; Reilly several times. 1188 01:11:15,849 --> 01:11:18,984 Dia yang memintaku. Aku ada di Fox sudah cukup sering. 1189 01:11:18,985 --> 01:11:21,020 Who is with us now former minister of labor, 1190 01:11:21,021 --> 01:11:22,221 our good friend Robert Reich. 1191 01:11:22,222 --> 01:11:23,724 Secretary, how are you? 1192 01:11:24,824 --> 01:11:26,358 But no 1193 01:11:26,359 --> 01:11:28,728 They don't ask. 1194 01:11:28,729 --> 01:11:33,633 The American political ball field continues to move right. 1195 01:11:33,634 --> 01:11:36,702 I... basically just stand here. 1196 01:11:36,703 --> 01:11:38,772 I saw that moving. 1197 01:11:38,773 --> 01:11:40,907 I was once a bow. 1198 01:11:40,908 --> 01:11:44,778 In fact, my first assignment was in the Ford government. 1199 01:11:44,779 --> 01:11:45,879 Hello? 1200 01:11:45,880 --> 01:11:47,746 That's Republican government. 1201 01:11:47,747 --> 01:11:51,283 You used to think that it was conservative in the 1990s. 1202 01:11:51,284 --> 01:11:52,785 Yes. 1203 01:11:52,786 --> 01:11:56,555 You're almost the leader of Senate majority. 1204 01:11:56,556 --> 01:11:58,724 I could be king. 1205 01:11:58,725 --> 01:12:02,995 Our employees are very unhappy if we gather together. 1206 01:12:02,996 --> 01:12:07,867 My work says, "Don't lunch with this right wing." 1207 01:12:07,868 --> 01:12:09,602 - From Wyoming? - From Wyoming. 1208 01:12:09,603 --> 01:12:11,871 "Nothing in him." 1209 01:12:11,872 --> 01:12:14,973 We have created an event. 1210 01:12:19,345 --> 01:12:21,179 Hello, Robert. Good to see you again. 1211 01:12:21,180 --> 01:12:22,348 - Good night. - Yes, here. 1212 01:12:22,349 --> 01:12:25,352 Thank you very much. 1213 01:12:25,353 --> 01:12:29,589 You now consider yourself as moderate, if right-handed. 1214 01:12:29,590 --> 01:12:31,825 - Communists. - What happened? 1215 01:12:31,826 --> 01:12:34,359 They came, and brought it with them, 1216 01:12:34,360 --> 01:12:37,029 anti-government hatred. 1217 01:12:37,030 --> 01:12:40,233 And you have no opponents anymore. 1218 01:12:40,234 --> 01:12:42,167 You have an enemy. 1219 01:12:42,168 --> 01:12:48,474 There seems to be a strong relationship between polarization politics on the one hand 1220 01:12:48,475 --> 01:12:52,278 and expansion of economic inequality. 1221 01:12:52,279 --> 01:12:57,950 Researchers measure the distance of the median collection pattern between one party and another, 1222 01:12:57,951 --> 01:13:02,621 and what they found that when the gap was high, 1223 01:13:02,622 --> 01:13:06,826 You have the highest level of polarization. 1224 01:13:06,827 --> 01:13:09,667 The tracks are almost exactly the same. 1225 01:13:13,667 --> 01:13:17,871 You see how integrates and connects 1226 01:13:17,872 --> 01:13:21,273 the problem of inequality to our democracy . 1227 01:13:21,274 --> 01:13:25,144 And you see how the highest guardians of our democracy... 1228 01:13:25,145 --> 01:13:26,813 if Congress doesn't act... 1229 01:13:26,814 --> 01:13:28,781 and if the executives don't act, 1230 01:13:28,782 --> 01:13:31,923 the guardians who act. 1231 01:13:36,923 --> 01:13:41,027 In 2010, the Supreme Court in Citizens United 1232 01:13:41,028 --> 01:13:44,363 stated that the company was a community. 1233 01:13:44,364 --> 01:13:47,166 As interpreted by Citizens United in low-level courts, 1234 01:13:47,167 --> 01:13:52,572 the point is in companies, rich people, people who have a lot of money, 1235 01:13:52,573 --> 01:13:54,840 can flood political system, 1236 01:13:54,841 --> 01:13:59,682 can inundate our democracy with their money. 1237 01:14:02,582 --> 01:14:04,084 Wertheimer? 1238 01:14:04,085 --> 01:14:06,620 - Robert, apa kabar? - Apa kabar? 1239 01:14:06,621 --> 01:14:11,489 His thinking that the company could spend $ 1 billion 1240 01:14:11,490 --> 01:14:14,660 in the election to elect the president 1241 01:14:14,661 --> 01:14:17,229 and that it would not have the capacity 1242 01:14:17,230 --> 01:14:20,233 was influenced by corruption < br /> to the government's decision... 1243 01:14:20,234 --> 01:14:21,533 That's ridiculous... 1244 01:14:21,534 --> 01:14:24,373 That's a concept from another planet. 1245 01:14:27,373 --> 01:14:29,541 Money is nothing new. 1246 01:14:29,542 --> 01:14:32,379 > 1247 01:14:32,380 --> 01:14:34,013 The quantity of money is new. 1248 01:14:34,014 --> 01:14:36,950 In the previous presidential election, 1249 01:14:36,951 --> 01:14:37,950 We saw the first time in this country 1250 01:14:37,951 --> 01:14:40,419 the millionaires... 1251 01:14:40,420 --> 01:14:44,189 A handful of millionaires... 1252 01:14:44,190 --> 01:14:47,229 contribute a large amount of funds for individual candidates, 1253 01:14:49,229 --> 01:14:51,430 basically keep the candidates. 1254 01:14:51,431 --> 01:14:52,765 I mean , is this American? 1255 01:14:52,766 --> 01:14:55,570 Not in my mind. 1256 01:14:57,570 --> 01:15:01,407 I think this is really stupid. 1257 01:15:01,408 --> 01:15:05,344 it will... "Do you have $ 300 million in your pocket? 1258 01:15:05,345 --> 01:15:07,681 Because you can buy a president." 1259 01:15:08,681 --> 01:15:11,718 There are liberal millionaires. 1260 01:15:11,719 --> 01:15:14,187 There are conservative millionaires. 1261 01:15:14,188 --> 01:15:21,126 So, if you see someone buy results that you like, 1262 01:15:21,127 --> 01:15:24,496 other people can also buy results that will you hate 1263 01:15:24,497 --> 01:15:27,099 if they can give a large amount of money. 1264 01:15:27,100 --> 01:15:31,141 You can't have a government in the auction block. 1265 01:15:34,141 --> 01:15:37,977 When we see the difference between the value we share for 1266 01:15:37,978 --> 01:15:40,278 and the reality we live in, 1267 01:15:40,279 --> 01:15:44,716 that's the fundamental foundation of for social change. 1268 01:15:44,717 --> 01:15:48,153 You work for us! 1269 01:15:49,288 --> 01:15:50,857 Tea Party Movement 1270 01:15:50,858 --> 01:15:53,827 born after Wall Street bailouts. 1271 01:15:53,828 --> 01:15:55,795 We want to make sure that... 1272 01:15:55,796 --> 01:15:57,429 > 1273 01:15:57,430 --> 01:15:59,232 not only to a few people. 1274 01:15:59,233 --> 01:16:02,801 Its members are American citizens 1275 01:16:02,802 --> 01:16:05,871 who are already hot with directions in this country. 1276 01:16:05,872 --> 01:16:09,375 Banks can funds. We can run out. 1277 01:16:10,810 --> 01:16:13,279 The Occupy Movement focuses on anger 1278 01:16:13,280 --> 01:16:15,514 occupying Wall Street and large companies. 1279 01:16:15,515 --> 01:16:18,184 The White House really in the bank pocket. 1280 01:16:18,185 --> 01:16:21,120 This is a plutocracy, basically. 1281 01:16:21,121 --> 01:16:24,056 It's not about money and how much money the community has. 1282 01:16:24,057 --> 01:16:27,794 This is a matter the people who were not given their voting rights. 1283 01:16:27,795 --> 01:16:29,495 There were so many people who lost their jobs. 1284 01:16:29,496 --> 01:16:32,465 There were so many people who lost their homes 1285 01:16:32,466 --> 01:16:35,166 This is really unfair. 1286 01:16:35,167 --> 01:16:37,202 You have lots of people who feel like 1287 01:16:37,203 --> 01:16:38,938 the game is stacked on them. 1288 01:16:38,939 --> 01:16:42,809 - Can you hear us now? - Engineered games. 1289 01:16:42,810 --> 01:16:45,946 We need to find lobbyists, Goldman Sachs, 1290 01:16:45,947 --> 01:16:50,515 George Soros, Merrill Lynch, all of them are out of politics. 1291 01:16:51,652 --> 01:16:55,153 Why should they be allowed to waste millions on politicians? 1292 01:16:55,154 --> 01:16:57,157 They should be our voice, 1293 01:16:57,158 --> 01:16:58,957 not their voices. 1294 01:16:58,958 --> 01:17:01,894 Lose in the engineering game can cause anger. 1295 01:17:01,895 --> 01:17:03,094 You don't love America. 1296 01:17:03,095 --> 01:17:04,797 You don't love the Constitution. 1297 01:17:04,798 --> 01:17:06,800 You don't love anything but stupid, 1298 01:17:06,801 --> 01:17:09,968 arrogant, take advantage of yourself! 1299 01:17:17,478 --> 01:17:19,045 Health services! 1300 01:17:19,046 --> 01:17:22,081 Kill bills! 1301 01:17:22,082 --> 01:17:24,684 > 1302 01:17:24,685 --> 01:17:26,353 Most people are still worried with their work. 1303 01:17:26,354 --> 01:17:29,354 They are angry. They are frustrated. 1304 01:17:29,355 --> 01:17:32,892 We think Muslims are moving and taking over. 1305 01:17:32,893 --> 01:17:34,760 Go home! 1306 01:17:34,761 --> 01:17:38,229 Go home! 1307 01:17:38,230 --> 01:17:41,733 One nation under the power of God, not God! 1308 01:17:41,734 --> 01:17:44,937 This trend is dangerous. 1309 01:17:48,641 --> 01:17:53,412 We see the community starting to fall apart. 1310 01:17:53,413 --> 01:17:56,314 Schools must be free. No fees! 1311 01:17:56,315 --> 01:17:57,416 No fees! 1312 01:17:57,417 --> 01:17:58,818 Schools must... 1313 01:18:05,692 --> 01:18:07,158 Gosh. 1314 01:18:07,159 --> 01:18:09,862 At Cal Berkeley, After being paralyzed by the police 1315 01:18:09,863 --> 01:18:12,331 and disbanded from the protest site, 1316 01:18:12,332 --> 01:18:17,370 Massa returned to the protest today. 1317 01:18:17,371 --> 01:18:20,706 Who joined at Cal Berkeley today, professor Robert Reich. 1318 01:18:20,707 --> 01:18:25,411 Well, on campus, there is some sort of anxiety and uncertainty. 1319 01:18:25,412 --> 01:18:28,384 Many students don't know > if the police will come back. 1320 01:18:30,384 --> 01:18:33,885 The irony of all this is instead of letting people 1321 01:18:33,886 --> 01:18:37,157 gathered and issued their anger 1322 01:18:37,158 --> 01:18:40,026 on the amount of money that entered politics, 1323 01:18:40,027 --> 01:18:43,462 we have mayors and other officials all over the country that says, 1324 01:18:43,463 --> 01:18:44,563 "You can't meet. 1325 01:18:44,564 --> 01:18:46,165 " You can't express yourself. 1326 01:18:46,166 --> 01:18:48,233 "But we want to listen to money 1327 01:18:48,234 --> 01:18:52,103 "from the big company which now basically 1328 01:18:52,104 --> 01:18:55,375 is sweeping American politics." 1329 01:18:56,577 --> 01:19:00,880 We lost the same opportunity in America. 1330 01:19:00,881 --> 01:19:04,450 We lose the moral foundation 1331 01:19:04,451 --> 01:19:08,653 in this country and the democracy that is built. 1332 01:19:09,890 --> 01:19:11,991 This undermines our democracy 1333 01:19:11,992 --> 01:19:16,327 when all the money comes from rich people, from companies. 1334 01:19:16,328 --> 01:19:21,332 When there is no limit to some money... money can infect and damage 1335 01:19:21,333 --> 01:19:25,470 and bribe our democracy,
then what do we have? 1336 01:19:25,471 --> 01:19:28,674 What do we have? 1337 01:19:30,043 --> 01:19:34,080 If you allow it personally. 1338 01:19:34,081 --> 01:19:36,447 Because I'm always short at my age 1339 01:19:36,448 --> 01:19:40,718 and always very short... /> in fact... 1340 01:19:41,087 --> 01:19:45,789 when I was a kid, I was even shorter... 1341 01:19:46,292 --> 01:19:49,635 I always got hit. 1342 01:19:55,335 --> 01:20:00,273 When I'm small, big boy likes to bother me. 1343 01:20:00,274 --> 01:20:02,474 That's what you usually do. 1344 01:20:02,475 --> 01:20:05,277 That's what it does. 1345 01:20:05,278 --> 01:20:08,447 So I got an idea < br /> to make fellowship 1346 01:20:08,448 --> 01:20:09,747 with older boys, 1347 01:20:09,748 --> 01:20:14,189 number, one or two who will be my protectors. 1348 01:20:16,189 --> 01:20:18,991 Summer when I was 10 years old, 1349 01:20:18,992 --> 01:20:21,193 one of the children who guarded me 1350 01:20:21,194 --> 01:20:25,665 who became a protector, his name was Michael Schwerner. 1351 01:20:25,666 --> 01:20:30,435 In summer & 64; I found out that Mickey 1352 01:20:30,436 --> 01:20:37,376 was in Mississippi registered as a voter. 1353 01:20:37,377 --> 01:20:41,913 And he and two other people who were with him 1354 01:20:41,914 --> 01:20:45,718 who signed up... 1355 01:20:45,719 --> 01:20:48,356 were tortured and killed. 1356 01:20:51,056 --> 01:20:54,193 And when I hear my guard 1357 01:20:54,194 --> 01:21:01,302 have been killed by real bullies... 1358 01:21:03,002 --> 01:21:06,138 I think that changed my life. 1359 01:21:06,139 --> 01:21:10,108 I have to protect people from bullies, 1360 01:21:10,109 --> 01:21:12,344 p> 1361 01:21:12,345 --> 01:21:15,480 economically hit people 1362 01:21:15,481 --> 01:21:18,082 or people who submit to them and their families 1363 01:21:18,083 --> 01:21:19,751 to real danger. 1364 01:21:19,752 --> 01:21:21,120 Because if you have no voice, 1365 01:21:21,121 --> 01:21:23,956 if you have no power, 1366 01:21:23,957 --> 01:21:28,033 if you are economically vulnerable in society, 1367 01:21:34,033 --> 01:21:37,536 You don't have anyone < br /> to protect yourself. 1368 01:21:37,537 --> 01:21:38,871 There is no single magic bullet 1369 01:21:38,872 --> 01:21:40,540 that can solve this problem. 1370 01:21:40,541 --> 01:21:43,442 I have written many books. 1371 01:21:43,443 --> 01:21:48,248 I'm not alone. Policy ideas abound. 1372 01:21:49,248 --> 01:21:52,684 Remember, we make economic rules. 1373 01:21:52,685 --> 01:21:56,958 And we have the power to change that rule. 1374 01:21:57,658 --> 01:22:00,960 You have to mobilize. You have to organize. 1375 01:22:00,961 --> 01:22:04,196 You have to give energy to others. 1376 01:22:04,197 --> 01:22:08,033 Politics is not out there. 1377 01:22:08,034 --> 01:22:10,873 > 1378 01:22:13,873 --> 01:22:16,774 Start here. 1379 01:22:21,680 --> 01:22:23,782 Today is class... our last class. 1380 01:22:23,783 --> 01:22:26,451 I try again. 1381 01:22:28,255 --> 01:22:29,788 Today is our last class. 1382 01:22:29,789 --> 01:22:32,825 > 1383 01:22:32,826 --> 01:22:34,260 Remember in the beginning, 1384 01:22:34,261 --> 01:22:38,163 we have seen the dynamics of wealth and poverty, 1385 01:22:38,164 --> 01:22:42,667 and many of you... many of you 1386 01:22:42,668 --> 01:22:44,769 feels a little sad after that. 1387 01:22:44,770 --> 01:22:48,806 And some are worried with the inevitable dynamics. 1388 01:22:48,807 --> 01:22:50,175 No. 1389 01:22:50,176 --> 01:22:53,246 The rich actually play a better role 1390 01:22:53,247 --> 01:22:56,014 with the economy growing faster, 1391 01:22:56,015 --> 01:22:58,084 when other people do
better. 1392 01:22:58,085 --> 01:23:01,754 This is not a zero-sum game. 1393 01:23:01,755 --> 01:23:08,094 History is on the side positive social change: 1394 01:23:08,095 --> 01:23:11,162 unemployment insurance, guarantee social, 1395 01:23:11,163 --> 01:23:14,233 human rights, and voting rights, 1396 01:23:14,234 --> 01:23:16,001 environmental protection, 1397 01:23:16,002 --> 01:23:20,906 Environmental Protection Agency, entered into law by Richard Nixon , 1398 01:23:20,907 --> 01:23:22,174 to the whole community. 1399 01:23:24,176 --> 01:23:27,412 Anyone of you who feels cynical 1400 01:23:27,413 --> 01:23:30,581 about the possibility of social progress, 1401 01:23:30,582 --> 01:23:37,389 just consider that we have been there . 1402 01:23:37,390 --> 01:23:40,992 Good. The Eagle is released. 1403 01:23:40,993 --> 01:23:44,398 That is like coming to you. 1404 01:23:45,398 --> 01:23:47,668 Kepada kalian. 1405 01:23:48,368 --> 01:23:53,270 You don't need to be an American president or become a labor secretary 1406 01:23:53,271 --> 01:23:56,344 to make a big impact. 1407 01:23:57,344 --> 01:24:00,246 You can become leaders 1408 01:24:00,247 --> 01:24:03,685 in different fields. 1409 01:24:05,685 --> 01:24:09,957 There are many other things that I can do. 1410 01:24:10,957 --> 01:24:14,593 But I choose to be here 1411 01:24:14,594 --> 01:24:17,196 in this course 1412 01:24:17,197 --> 01:24:21,500 because I believe in you. 1413 01:24:21,501 --> 01:24:24,836 I'm sure some of you 1414 01:24:24,837 --> 01:24:28,874 will change 1415 01:24:28,875 --> 01:24:34,782 the community, our society, even maybe the world. 1416 01:24:35,782 --> 01:24:38,117 One last word. 1417 01:24:38,118 --> 01:24:42,286 May your life be filled with enthusiasm, 1418 01:24:42,287 --> 01:24:47,727 and also, hopefully your days will be filled > with beauty and happiness. 1419 01:24:47,728 --> 01:24:50,897 May you do great things in life, 1420 01:24:50,898 --> 01:24:56,702 and have extraordinary things, full of enthusiasm, brilliant careers. 1421 01:24:56,703 --> 01:24:58,868 Thank you. 1422 01:25:22,545 --> 01:25:29,199 - Translated by Ikude - 1423 01:25:38,076 --> 01:25:43,179 He inspires me personally, to go out and make a difference 1424 01:25:43,260 --> 01:25:46,627 Going to Brazil working with NGOs in the Favelas. 1425 01:25:48,019 --> 01:25:50,786 I really know my wife... Erika wants to study too 1426 01:25:51,000 --> 01:25:52,824 now he knows that it's possible. 1427 01:25:53,000 --> 01:25:55,013 I want to be a lawyer. 1428 01:25:55,100 --> 01:25:58,527 I've thought about it a lot. I wrote several books about this. 1429 01:25:58,600 --> 01:25:59,942 If you know what to do, 1430 01:25:59,943 --> 01:26:04,044 I will take a day off to start it, not a revolution. 1431 01:26:04,500 --> 01:26:08,336 I... maybe we really need something like that.