I don't think you would find a billionaire just sitting out on the sidewalk like that in The U.S. Not without being surrounded by their security team. I wonder why that is??? Well, maybe Buffet.
@Brandon Toad Okay let's say Daddy gave them their wealth. Didn't their dad have to work for it? From your comment you make it seem like a person should accumulate wealth in their lifetime and when they die burn it so nothing goes to their family.
Quantitative Easing gave us 10 years of falling wages. Low interest rate debts create inflation that function as an invisible tax on wages and savings. Inflation has always been used to enrich the financial sector and give them power to control the productive economy. Because inflation is a tax on the poor and middle class, it should only be used to benefit the poor and middle class. Public banking would fix a lot of problems.
@@kungfoochicken08 I was wrong. Real wages for the majority of workers have actually been stagnant since the 1970s. Increasing efficiencies and improving technologies may make the real prices of many things fall steadily over time, like most commodities and consumer goods, but wages have lagged behind price inflation. Price inflation usually lags many months to years behind monetary inflation because it depends on the velocity of money. Price inflation has also been lower than it should be for the monetary inflation because other countries effectively export their deflation to the dollar, which is good for US banks and creditors and has limited price inflation for consumers, but it has been bad for American labor for the past 50 years.
When people realize the game is rigged they won’t play then it is game over. People will realize you are destroying there currency and there lives. Everyone believes the illusion until they don’t.
In the 40s,50s, and 60s we had a 70 percent top tax rate and CEO salary was no where near as high relative to the average worker. We had some of the highest economic boom in this country and workers shared in the boom. Today we've had record stock market gains which means companies are doing very well but workers aren't sharing in those gains. These tax cuts that the GOP claimed would create jobs haven't. All companies did was pour it into stock buy backs to inflate their company stock prices which the executives and officers will then sell before the price drops(this use to be illegal by the way). The greed of the billionaire class knows no bounds. They had a great thing going. All they had to do was share a sliver of the gains with workers instead they advocate for laws that takes and takes and takes. No pensions any more, jobs like Uber with no benefits at all, contract work. The day of reckoning is definitely coming.
@@MrDb4894 And yet that period produced some of the highest economic outputs in this country's history. Go figure. Maybe we should go back to that 70 percent rate loopholes and all.
@@ariefraiser140 that output was a spike in gdp growth rate that was completely overshadowed by inflation. We had some of the highest rates of inflation and unemployment in the nation's history. At the same time. The only thing the 70s economy is known for is stagflation and the oil crisis.
@@MrDb4894 Whatever reason you want to throw out there....Still doesn't change the fact that with a high tax rate we still the highest economic outputs in this country's history. Those two facts are irrefutable.
Another billionaire that thinks measures to increase taxation on his vast wealth can't really address the issue of income inequality. So, it's up to the struggling (and disappearing) middle class to vault their incomes stratospherically to close the gap. It's amazing what one can do with a true brainstorming session. That's why he's so filthy rich.
From an economic aspect, he is still correct. As a part of the disappearing middle class, I understand where you are coming from, but his economic analysis seems accurate. My economics professor has been saying the same.
Taxing the rich has never solved any problems ever. When you look at the facts of income inequality it is large in part due to job loss. The top 20% of income earners in the United States pay 80% of the taxes already so they I’d say they pay there “fair share” taxing the shit out of people isn’t the means to fix your issues. If you want to make more income then improve yourself and become more valuable to the market place. If you don’t grow your income won’t either. (Coming from a immigrant that came here with nothing that was able to start a business while working two jobs and now is in the top 1%)
A migrant who came here with nothing, worked hard, got rich, and doesn't want to talk about taxing his abundance to benefit the country that gave him the very opportunity to do so.
Free luxury housing for all and unlimited dental care. Governments dont need to pay interest to banks, biggest scam ever, boot the fed out shut it down etc like kennedy and lincoln tried to do. This country is a concentration camp of epic proportions. Who the hell wants a slave labor job for 12 dollars an hour when a ceo is making 3k an hour
yup, from the 60's free love movement that ruined the family, to the beginning of bubble economies and deep indebtedness from the 80's on...the Boomers have proved to be the most selfish, entitled, and ruinous generation...in generations. I can't even believe that these are the children of the parents that defeated Fascism.
@rvidal0001 of course there has always been dysfunctional families...just like there have always been obese people...but just like MOST people are fat or obese in America today...MOST people are no longer getting married or even having kids. The difference is that the 60's, with the free love movement and birth control pill, was the first push of the domino for family destruction, as it removed the stigma and shame of sex without consequence and fear of unplanned pregnancy. I think less than 30% of people aged 25-35 are married today, much less with children.
It's the same basic process of wealth extraction and accumulation through capitalism. This happened at the end of the 19th century, continued through to the great depression. After we were saved by the economic boom of WWII, we dutifully played the power-elites' game of market deregulation and lower corporate tax rates. This isn't a mystery, people. Study history, it repeats itself.
The federal reserve had a huge role to play in inflating the money supply during the great depression. The private sector didn't have as much to do with that one as did government.
@King Crimson are you referring to the Totalitarian USSR under Stalin? If you look closely at my profile picture, you'll see I'm anti-nationalist and very libertarian. I hate Stalinist Russia, under his crony-totalitarianism as much as the next guy.
If the first thing out a billionares mouth is, "taxing the rich won't work" he's probably not the person to ask. Norway Sweeden and Switzerland have enormous taxes on the rich. They are the happiest people on Earth. Their cops don't ever have to carry guns. If we listen to billionares NOTHING will EVER change
Might be worth finding an "economics fundamentals" book or something like that... I agree with you I don't understand a lot of the terminology he's using, but the economists do this to keep outsiders out, I don't think it's his fault that's just the way economics is, it's a shame that it isn't taught in school.
He's saying that capitalism has given up any pretense of ability to serve society and hardship will ensue for working people, but don't worry they have put enough money in the hands of the people that matter until now that as long as they can violently repress the people then THEY will maybe be okay.
DOW grew almost 15.000 points since 2000s. What the is your point lol? That's 150% return in 19 years, a.k.a 8% return per year on average, which still beats most hedge funds out there. If you aren't the most blind investor and swing trade, then you can pump those return numbers up even more.
@@Modellux I'm not from US, neither do I watch any US TV news or shows. Tell me how exactly am I blind, when you can check the growth of DOW through years and other indexes for yourself? How am I blind, for stating facts? Your argument is ignorant and holds no facts.
I agree, I hate hosts and interviewers who cut off their guests when they're speaking especially to ones who are highly intelligent and need to be listened to.
Gee purrs yes Henry blogot I love his interview style. He actually had understanding. But when he does have question he listens instead of asking the question for his own ego Henry is a Great interviewer! Check out my real estate channel too
Why would anyone look for solutions to income inequality and a massive shift of wealth to a tiny minority of people (that cannot be justified) from a person who helped create it and became rich because of it? The whole idea that these people at Davos have any idea of what to do in order to avoid economic disaster, is ridiculous. Despite what they tell themselves, the "think tanks" they create, the university economics departments they fund, they are no more likely to be smart, hardworking, and/or ethical than any other group of people. Frankly, what they won't admit to each other or themselves is that they have no idea what to do now that neoliberal global economics have run their course. They only have that as their mantra. They've embraced it and internalized it. They tell each other that it will solve the problem. They, like any other group, in an enclave, believe only what they see within that enclave. It's a mistake. Take off the suit. Get rid of the jet. Walk the streets ALONE. If you do, you'll find out far more truth than what any person you pay will provide.
I agree with what you are saying I believe America needs a restructuring universal health care a real social security safety net for example bring in a UBI universal basic income and free higher education how would you pay for all this buy tax large corporates and multinational and could reduced America's defence budget which is trillions of dollars if this policy could be implemented could almost wipe out poverty I believe most Americans cry out for a fair society with a decent political leader might become a reality
Here’s the thing, the economy never recovered from 2008. Interest rates are supposed to be manipulated to either stimulate or slow the economy down to prevent inflation, deflation or stagflation. After 8 years and one .25 raise we now find ourselves in a serious inevitable situation with overvalued assets and high debts. Let the interest rates go up to normal levels and watch it reset. The crisis that’s brewing is of biblical proportions.
Cut military funding in half, that would be 500B that could easily be used to provide a state college education for any American that wants one. Let's educate our population to fix the problems we face.
A big mistake is cutting money here and spending it there. It does not reduce the National Debt. What does work though is to cut spending and pay off the debt owned by foreign nations. The US can neglect their own debt but the foreign debt will reduce the chances of getting any future loans. The US can eliminate $11.6 trillion by letting SS and Medicare go into bankruptcy(the restructuring type, chapter 7 or 13). Afterwards they can privatize each program by selling them to a Hedge Fund or another Investment Company or another country and let them deal with it. Keep the money out of the US Governments reach! The proceeds from each sale can then be used to pay off the remaining internal debt. Social Security $5.6 trillion Medicare $5.5 trillion Foreign countries $6.8 trillion US internal debt $4.3 trillion All are approximate but as you can see the numbers are staggering and not one politician is doing a damn thing to reduce those numbers!
I'm so fed up with hearing Trump and peoples obsession with him. He's not a Messiah but a coporate capitalist interested in securing riches for his family and cronies. Just fed up and sick of inequality and the corruption of democracy.
A higher tax rate would do nothing. Besides, paper assets are not taxed. When the central banking game of musical chairs end, they will lose most, if not all of their "wealth".
Hunter Guthrie taxing people allows everyone to benefit. These super rich have been scamming the system. In Britain we could fund the nhs fix shitty roads and have social programs. Care for elderly disabled etc etc
M E in a very small country country compared to the US. In the US you need to do things at the state level and it's comparable to other countries then. People who aren't wealthy also scam the system here and it takes away from being able to properly help people who need it.
@@ALITASHOW my point is that the fed and interest rates are not based off of any rational market signals. Interest rates tell investors when and where to invest. If they are not linked in any way to the scarcity of goods or the market as a whole, and instead are artificially decreased or increased by the mere order of beurocrats, than investors are shooting blind in the dark.
@@ALITASHOW A few decades back, the interest rates were around 20-30% and everyone was happy minus the poor of course but who gives a *@%$% about them?
This is one of the first people I've heard talk sensibly about populism vs free market politics in a long time. This all seems pretty clear while most people think you can just raise or lower taxes to solve a very complex problem while ignoring us owing money to a lot of adversaries.
You should care, he's telling you that your life is going to get worse for the next twenty years and he doesn't care and isn't going to pay more taxes to try to help either!
"It's like a shot of adrenaline, it initially gets you up, but then... uh.. things slow down.." no... Bob, you mean "then you crash." Oh that defensive language...
This guy knows way more than he's saying. His kind reap the rewards of standing at the crossroads of the ruthless free market as well as ruthless, global central planning. The stakes are very, very high- his rational calmness makes the bad news go down smoother.
Ugh... Why did I scroll down? I can't take the entitlement! I am broke but not because some billionaire found a way to legally provide a service that others were willing to pay for. I am broke because I didn't work hard in school, I didn't get a degree that was worth a crap from my state college, and I loaded up with debt. Instead of bemoaning the 1%, I chose to buy toys, have 4 kids, go on vacations I can't afford and be happy. (Great interview by the way. Good insight, shared for free!)
We in the US are functioning on 10% of the liquid assets and we are in debt, while the "one percent" billionaire class have 90% of the liquid asset which are gambled on Wall Street speculation.
I think he is right about the debt issue but wrong about the impact of grazing taxes. Middle-class wages have been stagnant since the 1970s and the economy does not reflect the quality of jobs.We must save the middle class or there is no America. Raising taxes and reducing military spending will help us a lot.
Andrei Dragoi it’s actually the American economy keeping the dollar in high demand. The whole world wants high gas prices, us and our enemies, Russia, Iran, Venezuela, even Saudi and Israel. Never will happen (moving passed this petro era) without global turnoil
only now they will call it Revaluing the dollar and the effect will be good for the working class AND people on the dole AND the rich. Please forgive all the student load debt so we can buy bigger cars and houses to keep this shell game going. Thank you vote for me
Adrian 149915 /29/9+2=11 I don’t. If it does it cUz of conflict causing emotional reactions/restrictions/sanctions causing artificial shortage. The real price of oil is probably $.50 if supply and demand were all that determined it. So to me this price is higher than it should be, but lower than it was. Dollar is also strong rn causing America to have lower gas prices
"create jobs and income in parts of the country that where "gutted" by one force or the other" = forces driven mainly by people like me that were already or close to be billionaires, and made sure that the income of the working class adjusted from inflation would never to be raised above what it was the last time the tax was 70% or more (i.e. the 1970s). Our daddies made the mistake not to lobby hard enough for this to end sooner, we current gen of billionaires won't make this mistake again. Let's push the responsibility to "other forces" exclusively.
12 minutes of financial bullshit gobbly goop, in an effort to not address the real issues. Interesting how he mentioned "income inequality" in a cursory and dismissive manner. Acknowledge it, but never mention it again, financial policy.
If you don't understand, maybe that's you, not him. The world economy is not a zero sum game, someone else getting more doesn't mean you're getting less. Some people have skills which are way more valuable than others.
Sword: If you truly believe that, then your part of the problem. When you can't see the obvious that's right in front of you, then it's time to leave the building. Here's a thought experiment. Watch these billionaires and elites lose their shit, if tomorrow the world decides to replace the U.S. dollar with potatoes as real currency. Suddenly they would be the ones screaming about an unfair system. And you damn well know that to be true. So stop with your partisan philosophy.
There is one part that really caught my eye: he mentioned a concern that damaged international relations could mean that not all of our new debt (including rolling over old debt) may be purchased. That does strike me as a very real possibility. MMM relies on international and national stability, so Trump's Molotov cocktail approach to diplomacy could be a pretty serious problem.
@@Vanderearden You Clearly don't understand economics, billionaires don't hold most of there with dollars. Most of their networth is from things they own such as real estate, company stocks etc, if the world switched to potatoes than the billionaires would be fine and if they need something they just will sell some of their houses or stocks in exchange for potatoes and they will still have Billions of potatoes in their net worth assuming 1 potatoes = $1
Luigi Daniele: I weep for the simple minded. I'm fully aware of domestic and global economics, on a scale you could only begin to comprehend. It's clear that you missed the point of the thought experiment. Critical thinking clearly not being your strong suit. I'd explain it to you, but it would only frustrate you as it would require you to breach your linear thinking.
Christopher Haist I disagree he looks like the bad guy but he helped redistribute wealth back to the lower and middle class because otherwise there was going to be huge outrage
Christopher Haist Wall Street trading on margins in 1921-1929 was bonkers. Giant Ponzi scheme that gave us some of the wealthiest families including the Kennedys, Fitzgerald’s, (JP)Morgan’s, and Gould
Gee... the 70%+ marginal tax rate kept the inequality in check for decades, until it started getting slashed in the 80s... and the reasoning is this... if you know that your excessive income is going to get taxed at 70% or more, you are less inclined to hoard it and more inclined to allow it to be passed along in the form of salaries and other benefits for employees and other stakeholders, because you no longer treat the stockholder (and executives are predominately stockholders) being supreme over the other stakeholders such as employees, customers, and the community.
High levels of economic inequality often leads to revolution and political chaos. So higher taxation of 70% marginal tax rate helps avoid a lot of pain to lot of people. Secondly, the changing demographics in developed countries is going create a long term economic contraction. People who have real money are retiring and they are going to spend less, consume less, and millennials do not have the incomes to match the decline in consumption. Thirdly, Automation, Robotics and shared economy is also reducing the number of good paying jobs for millennials, which is further aggravating the income growth.
I don't think so, the increase in hiring 15 dollar-wage workers will keep the economy going as long as the government (certain political party) doesn't exacerbate national problems like immigration, socialism, and additional regulations.
0% for banking sector but not for consumers. A shitload of rules, regulations, and increasing taxes on the average person. Not easy to purchase homes, open a business, purchase products. No wonder our economy is shit.
What he says is true for developed economy. For developing its opposite. China, India, South-East Asia, Africa, some parts of Latin America, are expected to grow and grow. I think this might also be because a lot of high value exports from US is on a decline, since a lot of developing economy are becoming self sufficient.
lol indeed meanwhile 1% never work more they get to sit on their asses 24/7 and sign off on some BS paperwork and take 6 to 10 month vacations and watch their wealth grow by the folks who slave for them we need a new system where your life is in your hands not the 1%
@@eddiecarter8134 Agree, the amount of money you earn should be equal to the amount of money you make come in to the company, the accountants of Tesla can't expect to make the same that Elon Musk makes, they don't provide the same value to the entity
The marginal top tax rate used to be over 90%. The economy did great during that time and income inequality was much less. I love how BILLIONAIRES tell citizens in the US that we cannot afford healthcare or college, but every other industrialized country can. The increase in the military budget alone this year is enough to give everyone free college in the US. They just want to keep all of their money. They have healthcare already. Who cares about the bottom poor people??!! And he says NOW that debt is going to be a problem??? He needs to study MMT.
Much agreed! The tragedy is instead of ruining it for most to gain for a few, prosperity could overtake the world with financial freedom and opportunity to be realized by all. Greed and selfishness still are the drivers.
As a wealthy man, "twenty years of ugliness means , more of the same for efficient citizens. Twenty years of ugliness may mean bowling rather than ballet.
Billionaires like this like to be taxed because they'll still be billionaires, but it'll keep other potential billionaires from competing with them if the taxes are too onerous to achieve that level of wealth. Great way to keep the competition down.
No country has ever taxed its way to prosperity, but some people in the comments section don't seem to know that. When our theoretical top rate in the US was91%, our actual total tax burden was much lower than it is now, business was far more lightly regulated, energy was cheap and abundant, demographics were very favorable, public debt, although high, was falling versus rising now, and private debt was lower and savings higher than today. And there was no rapidly emerging entitlements funding crisis. "Soak the rich" tax policies will not fix any of theses problems, but they will disincentivize or drive away the entrepreneurs and investors whom we sorely need. Don't eat the goose that lays the golden eggs.
So, let me get this straight...the question was about higher taxes for the rich, and his answer was essentially: "Well, higher taxes on the rich won't improve the economy, all it will likely do is help with the massive debt problem, which is about to spike from 4% of US GDP to 25%, which is going to be a huge problem that on it's own could inspire '20 years of ugliness'." Did he listen to himself...like, at all? No one is actually saying that raising taxes on the rich is going to be a panacea, especially if the money is not well spent, but tax cuts to allow stock buybacks aren't helping, especially since investment in healthcare and education in the US are at levels which would get criticized by the World Bank/IMF if the US were a developing nation in need of a loan; which in light of the impending public debt crisis, it literally might be in a few short years.
@xianzhe wang "Our president." Your name implies that you're a Chinese troll. Everyone is broke? This is news to me. I see new cars driving around, people out spending cash, etc. The US economy is doing very well right now. Doesn't mean it always will be though. That's what the man in this video is saying.
I was indirectly taxed 70% because I haven’t gotten a raise in 15 years and the Fed increased the money supply by 4x screwing me with inflation. I wouldn’t feel sorry if the people that benefited from the 4x money supply increase was taxed 70% bc they would be feeling what I been feeling for years.
Every time we advance people think that will happen. “Calculator” and “computer” used to be professions, not machines. People just focus on the obvious professions that will get replaced my machines and automation but not the jobs they will make. At least that’s what’s tended to happen historically. So I’m not so quick to assume jobs will disappear.
Seeing as any blue-collar worker is going to have to work past 65 for retirement and the expected life expectancy is actually dropping can we just gut Social Security since the majority of us will never get to claim the benefits of working. I'd rather have the money they take out to decide what I WANT for MY future. Work 50-60 years just for a decade of retirement lived in struggle... t'fuck outta here.
So... buy gold if I want to bunker down for a few years or bitcoin if I want to live in the modern world... Gotcha Patiently waiting for debt interest to surpass revenue. ⌚ About to get fun!!
Inequality is the problem, the billionaires are like the bourgeois class of the monarchy days. With all that money, they have the ability to fund a tax write off think tank to promote their selfish own views. This class of today's aristocrats are like the ones of the past, they cannot feel how the rest of the people live. If this current bourgeois capitalist western leaders are so smart and know what they are doing, tell me Mr. Intellectual Business Leader why has the western middle class be crashing. Why is the quality of life of the citizens' falling? These so-called leaders are fake, they cannot see the peoples view.
It won't do, capitalism exploit the mass of the population (basically most of us), it wasn't designed to distribute wealth in any way. There is a reason why USA is good at economics.
I’m regards to #basicIncome.... lets say you hypothetically own a grocery store. And as the owner of this amazing store you know everybody coming through your door has approximately an extra $1K. you currently sell milk for $2. After basicIncome what are you honestly going to charge for your milk in your store? .....That’s what I thought. #inflation.
Taxing the billionaires would increase equality and boost the market place for all consumers have more people living in comfort and not just these the 10% living in lavish sitting on their toilet made of gold and diamonds..its that simple 🤓
RoRo Cruz what is done with tax proceeds is what will determine the outcome. We need more skilled people to increase prosperity, not just checks written to unproductive people unfortunately or that wealth just ends up back into the 1 percents hands. You can’t just tax your way to prosperity
Ryan Giffin Exactly. With that money we can rigorously invest in our education (thru university) and healthcare. That way we have less friction for growth
1.There isn't even enough money from them to do whatever social programs you want by taxing. 2. People can just move their money and then we have money hoarding. So now none of that money is in the economy.
Hey genius: The super wealthy have the means to export not only their "70% taxable wealth" but also their businesses and themselves. It would be no sweat off their nutsacks to just get some haul ass, further impoverishing the populace of the countries from where they fled. The only reason the U.S. is hanging on by a thread is because they're still here. If they cut that thread, you'll get your communist utopia you so desire.
