How Wealth Inequality Spiraled Out of Control | Robert Reich 

Please do a video about how our representatives in Congress vote against their constituents’ best interests about 70% of the time (because…money). Thx!

wealth inequality is actually well under control, its just that its under the control of the people who have all the wealth

I think it starts by banning politicians from taking any money from a person or a business/corporation. This includes their campaigns. Their campaigns should only be funded by those people who wish to donate during their tax filings. When on your tax form it asks if you want to donate to a political party.

Robert Reich is beyond amazing. I achieved wealth doing this.

As a UK citizen, this is why I get so damn annoyed when wealthy, retired Boomers - with their cast-iron pensions guaranteed for them by promises made decades ago, their free healthcare, free bus passes, annual heating allowance whether they need it or not, and their properties with mortgages all paid off because *they* bought *their* houses when it was easy and affordable to do so - accuse the younger generations of "spending all their money on stupid things and not saving for the future, like *we* did." YOU DID BECAUSE YOU COULD; your working years were the most secure and financially beneficial in modern history. Your wages kept pace with inflation, property prices were reasonable, you had the benefits of a well-funded National Health Service AND statutory pension scheme, AND most of the public services, like the railways, telephone and utility companies, were all nationalised, so there were no shareholders behind the scenes determined to make a huge, fat profit off those public services. If you'd had to live YOUR working years the way the majority of the younger generations do now, you'd most likely have saved even less than us.

the IRS came after me because I forgot to include a $185 payment I received when I file my taxes. the IRS does nothing to go after the millionaires and billionaires evading their taxes. fair system I say in America.

It's not about stopping people from obtaining wealth, it's about putting a limit on greed.

"After just a few generations of this almost ALL of America's wealth could be in the hands of a few thousand families." This is one of my biggest fears, and the pattern will repeat across the world. That'll happen here in the UK too, which is why I save, save, save. My parents think I sacrifice too much of the present for the future, and maybe they're right but only to an extent. The future is so scary as everything's only going to get more dangerous - Money, climate change ... do you need a third one??

"Second Gilded Age." Finally, someone said it out loud!

We put up with way too much. Almost like the whole of the populace is in an abusive relationship and cant stand up for themselves.

German sociologist, Robert Michel's theory on the iron law of oligarchy states that most democratic states and regimes start off as egalitarian, but eventually the power and wealth gets concentrated in the hands of the few elite individuals who control and acquire uninhibited access to social, cultural, and economic capital. You could also say that Max Weber's iron cage reinforces the idea that wealth and power is in the hands of those elite technocrats and plutocrats who have the opportunity to seek out positions that control policies and regulations that aid and enable those with plenary powers. It's sad really. Factions exist because they too have a right in the democratic institutions we live in. We cannot drown out their voice, even if they come from privileged and wealthy backgrounds. Despite the fact they hold unlimited amount of lobbying power and political clout.

One key element you left out, international growth has caused much of the u.s. wealth gap increase. In 1965, only 5% of the U.S. stock market was owned by foreigners, now its 40%. That drives up the overall wealth of ANYONE in the stock market, including workers with pensions. Source: Federal Reserve Board report called “financial accounts of the United States”. In addition, way more of our entrepreneurs have been able to export, making them even richer.

"Wealth inequality is eating this country alive." - Couldn't agree more.

"In a few generations almost all America's wealth could be in the hands of a few thousand families." That one hit me hard 😶

Mister Reich, could you please do a video about the Gini index (2024 predictions) ? And where US stands to other nations. 😊 i would like that .

He just gave us the blueprint to attaining wealth as long as you control your expenditures. The only thing you don’t control is taxes. Which is what he is advocating for more of. Sure he says tax the wealthy but crap never rolls uphill.

"If a man has an apartment stacked to the ceiling with newspapers, we call him crazy. If a woman has a trailer house full of cats, we call her nuts. But when people pathologically hoard so much cash that they impoverish the entire nation, we put them on the cover of Fortune magazine and pretend that they are role models." ~ Lester B. Pearson

Making economics clear and simple to non-economists is some saintly work. I’m sure it’s been said many times in the comments for your channel but RR, you’re my hero.

What practical steps can we take to become more equal?

You pay tax on inherited assets if and when the heir sells them. It isn’t perpetual. Those assets are also subject to volatile market fluctuations.

This was excellent. Here's another twisted fact: even without political power or a mountain of assets, the merely "comfortably rich" (not the top 1%, but say in the 2%-5% range) can still avoid significant taxes, particularly between generations, through loop-holey tax avoidance strategies. The minute a new law is passed, sharp lawyers and tax specialists develop work-arounds to it, for $500/hr to $1,000/hr. I always felt it bizarre that someone would pay, say, $2M over ten years to a tax advisor who sets up all sorts of trusts and inter-family loans for the purpose of avoiding taxes, when that money could otherwise have been paid as taxes and done some good for everyone, rather than that one smart advisor. Some people see taxes as so evil that they are willing to pay nearly the same amount to advisors to just to avoid paying it to uncle Sam. It's bizarre. I speak as a somewhat confused beneficiary of some of these shenanigans.

It amazes me how craven they are to fight paying just 2%. The word malicious also comes to mind. Deplorable, too.

Thank you. Very clear explanation of what is happening in the US. Young people are hurting. More homeless..

You have done a great job explaining what has happened but I am surprised you do not explain what is underlies all this. A money system and government bailouts that always favor the most wealthy. I hope you will read "Broken Money" by Lynn Alden.

This is how I've always put it when talking about the rich actually paying their fair share in taxes. It's nothing to them, but _everything_ to us. Their lives will not change in any fundamental way, but it will enable our society to do what it is supposed to do and actually support real people.

The game of Monopoly was invented shortly after Roosevelt’s actions due to Public Awareness of Wealth Inequality. It’s lesson of Free Market Capitalism still stands today. When one player has all the money... the game is over !

Well... thank you for stock info *starts time machine*

I've long said that the one difference between people who have money and those who don't (I'm not talking about a lot of $$$, but people that can come up with money in an needed emergency) is........... delayed gratification

Science fiction author Frank Herbert had an observation on this, which he included in his Dune series: "Governments, if they endure, always tend toward aristocratic forms. No government in history has been able to avoid this pattern. And as the aristocracy develops government tends more and more to act in favor of the Ruling Class, whether that ruling class be hereditary royalty, oligarchs of financial empires, theocratic clergy, or entrenched bureaucracy."

Your content is priceless. Please add voice over to the "chapter" transitions, so that blind and low vision people can benefit from it.

I guarantee that Robert Reich uses every tax break possible.

Taxing someone with slightly more than $1mln dollars isn't taxing the wealthy, that could be taxing someone who has worked hard all their life and contributed to their pensions. It would have to start at higher level than that.

This is actually a worldwide problem. We see the same phenomenon in Europe. Here, the rich mostly hide behind the middle class claiming that taxing the rich would also lead to a shrinkage of the middle class. It amazes me that people can even develop such a level of unsaturable greed. I mean a multibillionaire wouldn't even notice a billion dollar tax payment. Their money usually sits around and does nothing except growing. Even when they spend they usually don't touch their assets but instead borrow against them.

Thank you Robert Reich, this really concerns public administration and public policy, some dogs do not let other dogs eat...

Well said.

Thanks for this video.

We need this man doing an adult version of “The More You Know” on evening television

My Gram from PA was raised on a farm had a saying: "Money is like manure; it only works when you spread it around to make things grow." Stop hoarding $$$ & start speading!

I understand where Mr. Riech is coming from. But I am a Stoic so I ask myself: Have I made decisions and taken actions that reduced my wealrh, reduced my potential? The answer is: YES.... So how can I hold others responsible for my actions or non-actions?

I grew up in a middle class family (mine was probably upper, hers very middle), but neither of us are set to inherit much of anything that we’re aware of (in our 30s). We currently make about 200-250k a year, saving and investing like our children’s lives depend on it. We paid for school, don’t want them to. When our parents felt a “pinch”, we noticed. So when you start talking about a 2% tax on a millionaire transfer of wealth, you lose me. The difference between a millionaire and billionaire sounds like nothing to someone paycheck to paycheck, but it’s literally 1,000 times the money. Im not Walton rich, I’m not Musk rich, I am not them. If I’m lucky, I might pass on a few million to my kids in total assets; which they better use correctly. My parents couldn’t afford a NES, that’s the American dream. Don’t confuse the 10% with the .01%, we are not the same at all. And a millionaire is less impressive than it sounds like.

Robert, one thing you could have touched on is how the "big" money families buy medias and push philosophies that continue to benefit themselves. Thanks for your videos. I hope enough Americans can wake up.

I finally had it explained in a way that was simple enough for me to get: The strength of the economy depends on how much of the money is being used. If massive piles of money are disappearing into some cartel warehouse or billionaire's bank account and never coming out, that money is removed from the economy, which gets smaller and weaker.

Robert, if you can show how the lazy won't benefit, I'm on board.

I am grateful for the hope, guidance, and inspiration promoted through this channel and it's perspective audience. I am glad that many people have developed awareness, and a determination to remedy the perils in our midst. Unfortunately... this deliberative rhetoric may prove to be fruitless. My intuition tells me that it is too little too late, and that there is simply no stopping the impending doom that awaits us. I'll never forgive my parents for raising me with false hope, misdirection, and forsaking me when I needed help more than ever.

Even if the IRS were fully funded, I believe that they would need the backing of all 3 branches of federal government to actually go after the rich to make them pay their fair share. As it is they Target low hanging fruit by going after the poor who may done the earned income credit incorrectly when they filed doing their own taxes because they couldn't afford professional to do it for them

Remember when Dubya insisted that "the Death Tax" affected Average Americans? *Well, Dubya was lying. Dubya worked for people like this **4:16*

Flat tax, 20%, businesses, people (below poverty line and retired exempt)... No loopholes, no exemptions, no depreciation, no credits, no contributions of any kind - take all that stuff out of the income/profit tax system! I'm tired of supplementing someone else's solar panels, or paying for their religion, or their favorite charity...charity means giving, not getting refunds from WE THE PEOPLE! If there isn't enough people caring for a cause without tax write off attachment, it wasn't worth having!!! That's equal, fair, and Governments should be able to balance budgets and pay off the deficit, and stop rIsing spending ceilings (deficit spending, deeper in debt). Money goes to one pot, Fed, State, and local governments figure out how to split and spend...with less IRS agents needed too...one page tax returns, no special and complicated schedules, etc needed! Only refunds, for those who over paid!!! KISS - KEEP IT SIMPLE STUPID!

Would a tax incentive for companies labor cost help increase wages? It seems to me this would give companies more incentive to raise wages. The more you pay in wages the lower your tax rate. This is based on a company actually paying taxes.

I don't mind these big wigs amounting such wealth, but when they affect (or rig) the system and screw the working class in multiple ways, something's gotta give. People working in the essential medical field such as EMT shouldn't have to make a second income to pay their bills. They're the frontlines of saving lives. Then again, the medical field here in US shouldn't be a private sector to begin with, again going full circle on these big wigs.

Imagine disliking this video & not being a Billionaire. 🤦‍♂️🤦‍♂️🤦‍♂️🤦‍♂️

Great graphics!

The more one learns about the tax system the easier it is to get tax exemptions. What people should do is learn the system and how to benefit from it rather than try to reform it without knowing what is going on. Those that are rich and have lots of wealth learned the system. Majority of the populace are encouraged NOT to learn the system. But that's my LIMITED view on the subject. I'm a working-class citizen living to paycheck to paycheck as well. But I'm learning ways to invest what I can and lower my credit debt along with budgeting. I feel like I'm getting on track to increasing my personal wealth.

I love this man. I love his passion, his kindness and his clarity. I wish that more people heeded his warnings and accepted his ideas. Obviously, trickle down economics hasn’t worked. I’m making about the same as I was when I started working in the early 80’s. And that’s in real dollars not adjusted for inflation. My standard of living has steadily gone down. I have a house (inherited and needing repairs) and a minimum of savings. I expect to have to work until I die and I’m good with money. I was born into the upper middle class but how can you save if you can barely cover regular expenses? Within my lifetime, America’s economic structure has been decimated. And it’s not because people don’t work hard 😓. The people who have so very clearly benefited are the ones who are responsible. The loopholes and special interests must end and they must pay their taxes. We the people deserved it.

We also need to shield the poor and middle class from these laws. The rich dodge them but I sure didn’t, I had to pay capital gains tax when I sold one of my two acres of land to my in-laws so they could build a house. I just needed the money to pay off debt and I still ended up owing a lot extra on my income tax. Now I’m in debt to the IRS and will have a payment plan this year. Sell an asset to get out of debt and end up in debt for my trouble.

Wealth isn’t a crime. Try having regulatory agencies actually criminalize fraud.

Thanks for what you are doing Robert.

Professor, why don’t you ever mention that the Fed’s Quantitative Easing policies (that is, maintaining ultra-low interest rates) have been transferring wealth from the Bottom 90 Percent to the Top 10 Percent for the past 13 years? As interest rates fall toward zero, the present value of future cash flows increases, which increases the value of the underlying asset (e.g., stock; real estate). At the same time, savers earn little interest income on their savings.

This was a fantastic video, but he fails to mention that Reagan’s cut of taxes from 70% top marginal tax to 25% with the idea of trickle down economics, has totally failed miserably.

Robert your seminar style posts are excellent. The one thing that needs to be touched on is personal responsibility. I made roughly the same as my co workers over 30 years. We own 2 homes and have a total worth of 2.5 million dollars while having less than 150000 in mortgage debt. My friend and co worker with the same income owns 1 homes they’ve refinanced at least twice and with a total wealth of 1 million dollars with 400000 in mortgage debt. They go on 4 expensive vacations a year as well as buying cars every few years and every toy imaginable. And he can’t understand how we have what we have. Choices and priorities I tell him, that’s all

Please do a video about how many citizens vote against their own interest like retired citizens.

Very well said! Thank you for all you do for us regular folks. Now we just have to "splain it" to unwilling minds and ears .Thanks amillion.

Imagine doing a whole video on wealth inequality and never mentioning The Fed.

That's the great thing about America Anyone can make it big in America

Average salary across the board is $22.65 hrs? Adjusted for inflation, minimum wage should've been $21.00 hrs ten years ago.

we need a separation of industry and state. stop letting corporations make the law or fund politics. and just get rid of lobbyists all together. sure, it'd mean we couldn't tax companies, but it's not like they're paying taxes now. this way, they wouldn't get representation.. and the only thing the govt. would have left to represent is (gasp) the citizens.

This is sound information and it infuriates me that my value as a wage earner decreases every year to the point where I am always working two or three jobs and looking for other ways to earn money. Unfortunately, the wealthy apologists who are among us believe that the wealthy pay more than their fair share. It’s going to take real starvation with a side order of cannibalism before they get it.

If your doing it right your income should accumulate some sort of wealth. That wealth grows while income can vary. If your property budgeting and acquiring wealth be it a house, land, objects of value etc. Your wealth should continue to grow and if you use some wealth assets. Like housing or land, you can make a passive income stream that will supplement your current income. Till your working income is lesser than your passive income in such a difference you can stop the working income and focus on the passive income. Investing and growing your wealth assets. Any tax on income or wealth does one thing. Lower the ability for those STARTING this process from actually succeeding. Reason why we see more people not able to gain weath without having some gain tax or income tax taking away the small fortune. Is because more people take risk and go into debt causing whatever gains they have made. Being paid to banks leaving little after death to those left behind. This is even more so in impoverished areas. Where the cost of funerals and debts from loans cripple the low income to such a point they do not make progress in accumilation in wealth. A key way to see this is how much debt people who are considered "rich" vs those who are "poor". Rich will always keep the assets of wealth they have larger than the debt they aquired. While the opposite occurs to the poor. The have a large debt vs the wealth the aquired and some even dont have assets. Causing them to have to pay that debt first before wealth is aquired. This is mainly due to the poor education those in lower communities. For they do not learn economics and how to avoid placing themselves into "the hole". While most ivory league not only have their parents and financial advisors talking about economics. This is also taught in their schools. Yet lower status schools also focus more on social issues over the issues those being taught will face. More drop outs occur in low income areas because the education quality is seen as useless. Which is half true because instead of focusing on a quality education to raise those students to a higher level to gain high income and wealth. It's preached that the system is designed against you and nothing is going to change that. Talking about wealth gap of race or gender is practically useless because the race part intertwines with poor education that isn't focused on building a quality life and accumulating wealth. While the gender issue has a separate situation. Woman are taught low income jobs and are pushed by educational institutions to fill those jobs. They also tend to not take overtime. Which, for example, a 26 dollar an hour job. Is the difference of over 20k a year. Causing those who do over time to earn nearly a 3rd more than woman who do not do the over time. Yes wealth inequality is an issue but it's not the complete fault of those who cut part of the pie ofr themselves. The the poor education we give ourselves and our children on how to gain and keep that wealth. So we and our generations after ourselves. Can join those ivory league bastards. Trying to push for a gains tax or more income tax. Only washes down to the middle and lower class people who attempt to gain enough wealth to break the barrier.

How Robert Reich spiraled out of control and became a nutball

These economic concepts should be taught in every school, even to the very young.

Hi Professor, Have you interviewed and had a discussion about this with professor Richard Wolff from democracy at work? Would love to hear your thoughts on the stuff he talks about. Thanks.

We would *_LOVE_* to see this guy discuss the *Pareto Principle* with Jordan Peterson!

Very well produced!

" There is no greater misfortune than greed." - Lao Tzu

I've just recently discovered this channel. I'm going to subscribe because I find these short educational videos are great for helping me to explain things more succinctly!

Okay, the implication is that wealth accumulation (or at least, at some point) is an anathema to Mr. Reich, but what was unclear in this was the, "so what..." Does wealth accumulation (particularly dynastic wealth that appears to be the boogeyman in this segment) take food off my grandkids table, does it stifle job creation, does it lower the hourly wages of us folks who get paid that way -- or is it that "aristocracy is bad..." Raw numbers wise, this is interesting and doubtlessly provable by the balance sheets and IRS records, but incomplete, thus disappointingly unconvincing... unless one is just looking for a philosophical flag to run up a flagpole...

I hate the lesson here on Capital Gains for estate because the money used to purchase those assets were bought with after tax dollars. Imagine being taxed and barely having enough left to buy a house and you can't leave it to your kids because the government is going to tax the asset when you sign it over to your children. Taxing a man's inheritance is just morally wrong, especially when considering everything was purchased with money that has already been taxed.

This is an impressive video! Thanks Uncle Bob for educating the public and raising our collective public financial intelligence needed to hopefully alter the course of the nation’s democratic experiment.

The Netherlands, I heard, has a clever way of closing the loopholes even for wealth that's held by their citizens regardless of where it's located. To me, this would make more sense than a wealth tax. The "Money and Macro" channel talks about it.

Increasing funding to the IRS, without oversight, is fraught. Recent increases have resulted in INCREASED taxation and enforcement on the middle and lower classes - take the eBay/Craigslist/Etsy, etc. reporting and record-keeping requirements for people selling only $600/yr (down from $20000)! Exactly which extremely wealthy people are going to be paying this?? Arguing for more IRS agents, to be utilized enforcing actions against Grandma selling off her ancient possessions, which we all know have no extant proof of purchase, is robbing the poor to spare the rich. Nice trick Hood Robin! The IRS has plenty of agents to pursue the thieving Rich, starting with members of Congress, whose wealth cannot be explained by their salaries. If only there was the mandate to do so, instead of pursuing Mary Jane, selling jars of peach jam on Etsy...it's just plain corruption. And it stinks.

It’s nice that Robert Reich has been spending the last decade or so teaching us about the wealth inequality he help to create while he was advising presidents who sent American jobs to Mexico with NAFTA.

Short answer: Reagan said "fuck it, let's give limitless power to the rich" and yeah it just

Thank you Mr. Reich for the clear and concise description of this often misunderstood issue. Yourself and Bernie Sanders are two of the best political advocates the working class have. Keep up the good work!

We all know its only a matter of time until corporations takes over like in movies and video games

Agree with some of the points but not the 2% wealth tax on wealth over $1m. You completely lost me there. The problem is Dynastic Wealth and steps should be taken to reduce that and increase efforts to give income earners (including high income earners) greater tax breaks and incentives to save.

Good, Robert! Very, very, very clear! You are an excellent teacher!

Wealth inequality is the most important issue of our time... The solution starts with UBI and (actually) taxing the rich 🤑

We need a Revolution!

I thought i heard the IRS getting funded only ending up targeting sub 400k earners and not the big guys? Please tell me I heard wrong

What Roosevelt accomplished was vital and extremely impressive considering the power of the opposition he had to overcome How can today’s Americans hope for anything remotely similar in this moment, when the power of wealthy opposition has increased so dramatically, and corporate media has indoctrinated millions of low income Americans to fight ferociously for the perpetuation of their own oppression, professor ?

Great way of condensing complicated topics into short videos!

Literally- the top 25% of earners pay 85% of all taxes.

Just make it so that only x amount of dollars can be passed on. The rest gets distributed or goes to charities

"Don't get mad at politicians, they are just employees of large corporations". Noam Chomsky

I have wealth. I earned below average wages my entire working life. I knew I couldn't afford to waste a thing if I didn't want to exist as a wage slave ending up with nothing. So I hung on to every bit of money I could. I started by eroding my debts and then channelled as much as I could into assets. Forty years later I've escaped. My time is now 100% my own. Liberation.

What is a fair share?

One thing I have heard my entire 40 year employment history is "they moved to Mexico or China because we asked for too much money".

This is a great explainer. Thanks for pulling it together.

You know how Wealth inequality has spiraled out of control? Bailouts, trade restrictions, IP laws, regulations that get rid of competition, Zoning laws, drug laws, certificate of needs, etc. Why don't you go after these things that would have the MOST impact on people's lives?

But those are the people who help us all thrive the real people who will be hurt most if we raise the minimum wage. Raising the minimum wage will bankrupt this country. I'm not an economist or statistician but I do have a calculator the minimum wage is right where it should be.$7.25 a week equals 15,080 pre tax per year or about $290 a week. Based on averages healthcare only uses up $150 per week, rent only $275 per week, food only about $51 per week, utilities only about $35 per week meaning your expenses are only $582 per week. So if you work two full-time jobs and drive Uber in your free time you have more than enough to have a decent living and maybe even save 50 or 60 cents a month. Properly investing and you should be able to live comfortably by the time Voyager gets to the next star system.

Imagine inter-generational farmers losing the step up in cost basis “loop hole” he’s describing. Taxing those assets at least once per generation would drive up costs significantly for EVERYONE and have a disproportionate effect on low income individuals; not to mention upset ALL farmers. Good luck with that platform.