1 00:00:02,000 --> 00:00:07,000 Downloaded from YTS.MX 2 00:00:08,000 --> 00:00:13,000 Official YIFY movies site: YTS.MX 3 00:01:45,147 --> 00:01:47,232 I was born in 1971. 4 00:01:47,316 --> 00:01:50,944 I turned 18 in 1989, when the Berlin Wall came down. 5 00:01:51,028 --> 00:01:53,655 I remember being glued to my radio 6 00:01:54,031 --> 00:01:57,200 listening to the fall of the communist regime. 7 00:02:00,537 --> 00:02:05,959 As a student, I travelled to Romania, Hungary and Russia. 8 00:02:10,964 --> 00:02:14,968 So I personally know the impact this collapse had. 9 00:02:22,559 --> 00:02:25,354 I saw an economic and social system 10 00:02:25,604 --> 00:02:28,065 in a complete state of failure. 11 00:02:34,529 --> 00:02:39,660 A political system that had promised human emancipation, 12 00:02:39,951 --> 00:02:42,496 but instead ended up producing misery 13 00:02:42,579 --> 00:02:44,331 and incredible political repression. 14 00:03:08,855 --> 00:03:13,193 And when the fraud of the communist promise was exposed 15 00:03:13,276 --> 00:03:14,820 and it collapsed, 16 00:03:14,903 --> 00:03:19,700 it greatly reinforced the capitalist argument. 17 00:03:19,866 --> 00:03:21,785 The problem was that it went too far. 18 00:03:32,129 --> 00:03:34,256 The fall of the Soviet Union 19 00:03:34,339 --> 00:03:38,510 led to infinite faith in the deregulation of markets 20 00:03:39,136 --> 00:03:41,138 accompanied by a new 21 00:03:41,680 --> 00:03:43,974 glorification of private property. 22 00:03:44,766 --> 00:03:46,017 As a consequence, 23 00:03:46,101 --> 00:03:49,354 we're facing challenges of rising inequality 24 00:03:49,438 --> 00:03:53,400 and the rise of nationalism and xenophobic tensions, 25 00:03:53,483 --> 00:03:56,319 like there was in the very unequal world 26 00:03:56,403 --> 00:03:57,403 before World War I. 27 00:04:09,082 --> 00:04:11,960 And I'm very scared for the 21st century 28 00:04:12,043 --> 00:04:13,643 because what I see in the historical data 29 00:04:13,670 --> 00:04:16,548 suggests we risk returning to a capitalist system 30 00:04:16,631 --> 00:04:19,468 similar to the highly unequal world 31 00:04:19,676 --> 00:04:21,511 of the 18th and 19th centuries. 32 00:05:12,145 --> 00:05:14,689 In 18th century Europe, 33 00:05:14,940 --> 00:05:17,901 capital is concentrated in the hands 34 00:05:18,151 --> 00:05:20,403 of a very small group of people. 35 00:05:23,198 --> 00:05:26,576 The aristocracy represents 1% of the population. 36 00:05:29,788 --> 00:05:33,333 The boundaries of money limit social mobility, 37 00:05:38,255 --> 00:05:40,298 and hard work and education 38 00:05:40,382 --> 00:05:41,742 don't allow you to climb very high. 39 00:05:46,137 --> 00:05:48,223 Through the evocative power of literature, 40 00:05:48,306 --> 00:05:50,350 film and popular culture 41 00:05:50,433 --> 00:05:55,063 we can see the importance of capital throughout history. 42 00:05:57,524 --> 00:05:59,609 It's a story much darker 43 00:06:00,443 --> 00:06:02,529 than the idyllic vision 44 00:06:02,737 --> 00:06:04,573 of a march towards progress and light. 45 00:11:50,418 --> 00:11:53,463 Life in the 18th century is not static. 46 00:11:53,546 --> 00:11:56,507 We see the development of new political ideas 47 00:11:56,591 --> 00:11:59,260 demanding equal rights 48 00:11:59,928 --> 00:12:03,514 and an end to privileges linked to birth and nobility. 49 00:12:47,684 --> 00:12:50,311 It turns out the French Revolution is based, 50 00:12:50,395 --> 00:12:53,231 in part, on hypocrisy. With a vision of equality 51 00:12:53,314 --> 00:12:56,150 that is, at best, a little optimistic or naive 52 00:12:56,234 --> 00:12:58,569 and at worst a little cynical. 53 00:13:00,863 --> 00:13:05,493 We imagine that equality is going to occur naturally 54 00:13:05,618 --> 00:13:08,079 or spontaneously, a bit like a fairy tale. 55 00:13:11,582 --> 00:13:14,502 But the reality is that we also need political institutions, 56 00:13:14,752 --> 00:13:19,048 an education system, health care, a transport system 57 00:13:19,966 --> 00:13:24,637 and a tax system that targets the highest incomes. 58 00:13:25,388 --> 00:13:29,392 But none of this was put in place 59 00:13:29,475 --> 00:13:31,769 after the French Revolution. 60 00:18:16,137 --> 00:18:21,142 The 19th century is when the division of labour, 61 00:18:21,642 --> 00:18:25,688 inequality and power are established worldwide - 62 00:18:27,857 --> 00:18:30,359 first with slavery, 63 00:18:30,443 --> 00:18:33,362 and then with incredibly violent colonial domination. 64 00:18:41,787 --> 00:18:46,500 It's very difficult to say how much of European wealth today 65 00:18:46,584 --> 00:18:49,128 comes from their colonial past. 66 00:18:50,212 --> 00:18:52,715 But what is clear is that the crucial advantage 67 00:18:52,798 --> 00:18:55,676 won at the time of the Industrial Revolution 68 00:18:55,760 --> 00:18:59,513 was closely linked with military force. 69 00:19:17,948 --> 00:19:21,827 From 1870 to 1914, the United Kingdom and France, 70 00:19:22,161 --> 00:19:25,206 who are the two main colonial empires, 71 00:19:25,373 --> 00:19:28,417 own so much around the rest of the world 72 00:19:28,918 --> 00:19:31,587 and it brings them so much profit, 73 00:19:31,837 --> 00:19:33,673 interest, dividends, rents 74 00:19:34,423 --> 00:19:37,593 that they can afford to keep on investing 75 00:19:37,677 --> 00:19:40,137 and become owners of more of the world. 76 00:19:42,598 --> 00:19:44,158 So the rest of the world works for them. 77 00:22:56,750 --> 00:22:59,545 Around 1914, in Paris, 78 00:23:00,087 --> 00:23:05,634 1% of the population owns 70% of all assets. 79 00:23:07,678 --> 00:23:11,390 And in contrast, two-thirds of the population 80 00:23:11,599 --> 00:23:13,684 die without any assets. 81 00:23:15,561 --> 00:23:18,898 You have this rise in nationalism and competition 82 00:23:18,939 --> 00:23:20,441 between European countries, 83 00:23:20,524 --> 00:23:23,193 partly due to very strong social tensions 84 00:23:23,277 --> 00:23:25,613 linked to the stagnant standard of living 85 00:23:25,696 --> 00:23:29,450 and very high levels of inequality. 86 00:23:33,329 --> 00:23:36,749 And competition between countries, nationalism, 87 00:23:36,832 --> 00:23:39,543 is often used by elites 88 00:23:40,002 --> 00:23:43,172 to make people forget class conflict 89 00:23:43,255 --> 00:23:46,467 and instead focus on national identity. 90 00:23:56,477 --> 00:24:00,356 And all this contributes to the arrival of 91 00:24:00,397 --> 00:24:04,985 the First World War in the summer of 1914. 92 00:29:51,873 --> 00:29:54,209 If you read John Steinbeck's Grapes of Wrath, 93 00:29:54,293 --> 00:29:57,796 you realise the extent of the shock caused by 94 00:29:58,005 --> 00:30:00,716 the complete collapse of economic activity. 95 00:31:07,783 --> 00:31:09,993 Banks fail one after another, 96 00:31:10,077 --> 00:31:12,746 which results in everyone losing their savings. 97 00:31:12,829 --> 00:31:16,333 And this decreases in demand in other areas, 98 00:31:16,416 --> 00:31:18,816 causing a cascading phenomena of bankruptcy and unemployment. 99 00:31:51,284 --> 00:31:54,788 The crisis of the 1930s creates such a strong trauma 100 00:31:54,871 --> 00:31:57,999 that leads to the public and politicians 101 00:31:58,417 --> 00:32:01,628 holding capitalism accountable. 102 00:36:04,913 --> 00:36:08,458 We want to see no more class divisions. 103 00:36:10,001 --> 00:36:12,504 We want to be one people. 104 00:36:13,046 --> 00:36:18,051 And you, my youth, are to be this people. 105 00:39:00,713 --> 00:39:04,634 The wars themselves are used to destroy capital. 106 00:39:06,469 --> 00:39:11,057 Firstly, there are bombings that destroy entire cities. 107 00:39:11,140 --> 00:39:12,140 But at the same time, 108 00:39:12,183 --> 00:39:15,979 this only accounts for a third of the total loss of capital. 109 00:39:17,814 --> 00:39:20,859 So where do the other two-thirds come from? 110 00:39:20,942 --> 00:39:24,946 A third is from inflation that destroys the public debt, 111 00:39:25,029 --> 00:39:29,325 which was lent by the citizens to finance the war. 112 00:39:30,159 --> 00:39:33,538 And then there is a third from new rules, 113 00:39:33,830 --> 00:39:35,456 like rent controls, 114 00:39:35,540 --> 00:39:37,417 nationalisations and financial regulations. 115 00:39:39,210 --> 00:39:43,298 But this collapse of capital is not necessarily a bad thing 116 00:39:43,381 --> 00:39:46,092 because the power relationships within society are transformed. 117 00:40:06,362 --> 00:40:09,407 Everyone is equal in the face of death. 118 00:40:10,533 --> 00:40:14,913 Wars, with their death and despair, 119 00:40:15,163 --> 00:40:20,043 are also moments when humanity is found in us all. 120 00:40:29,886 --> 00:40:33,806 This new political context will ultimately lead 121 00:40:34,223 --> 00:40:38,311 to a realisation of the spirit of the Enlightenment 122 00:40:39,312 --> 00:40:41,606 and of equality proclaimed in the 18th century. 123 00:44:15,945 --> 00:44:18,447 If you look at the development of inequality 124 00:44:18,531 --> 00:44:22,160 through the 20th century, the most striking transformation 125 00:44:22,243 --> 00:44:27,331 is the growth of an extremely strong middle class. 126 00:44:28,749 --> 00:44:32,295 Until 1914, the middle class doesn't exist. 127 00:44:33,045 --> 00:44:36,299 Or more accurately, they're almost as poor as the poorest. 128 00:44:40,344 --> 00:44:42,430 The decades after the war - 129 00:44:42,513 --> 00:44:45,224 30 years that saw glorious economic growth - 130 00:44:45,308 --> 00:44:49,562 are marked by a steep increase in purchasing power, 131 00:44:50,021 --> 00:44:53,482 especially for lower and middle-class workers 132 00:44:53,524 --> 00:44:58,404 who can buy consumer goods, improve their standard of living 133 00:44:58,529 --> 00:45:02,617 and save money to buy a house and acquire capital. 134 00:45:15,421 --> 00:45:20,051 They're a group who are neither very rich nor completely poor, 135 00:45:20,134 --> 00:45:22,970 but still have a substantial share of national capital. 136 00:45:36,192 --> 00:45:37,652 But in recent decades, 137 00:45:37,735 --> 00:45:41,239 the share of wealth owned by the middle class 138 00:45:41,322 --> 00:45:44,408 has started to decline sharply in the US 139 00:45:44,700 --> 00:45:46,327 and a little less sharply in Europe. 140 00:45:50,539 --> 00:45:53,584 Clearly we've taken a very different direction, 141 00:45:53,668 --> 00:45:57,546 which can be quite disturbing if we look into the 21st century. 142 00:45:59,966 --> 00:46:02,677 One of the greatest challenges for the future 143 00:46:02,760 --> 00:46:05,763 is whether the middle class will continue to shrink, 144 00:46:05,846 --> 00:46:08,474 with the risk of returning to an impoverished middle class 145 00:46:08,557 --> 00:46:11,143 like we had a century ago. 146 00:51:51,442 --> 00:51:54,820 Every country feels the need to tell a story about 147 00:51:54,903 --> 00:51:59,366 why it's richer than another or why it has become poorer. 148 00:51:59,867 --> 00:52:03,996 And it's this story that Reagan and Thatcher tell 149 00:52:04,455 --> 00:52:07,124 the American and British public. 150 00:52:32,941 --> 00:52:35,235 In the United States there was a feeling 151 00:52:35,444 --> 00:52:37,863 that Germany was catching up, 152 00:52:37,946 --> 00:52:39,823 that Japan was catching up - 153 00:52:39,907 --> 00:52:42,493 these countries that lost the war. 154 00:52:42,576 --> 00:52:46,538 And Reagan, and also Thatcher to a certain extent, 155 00:52:46,622 --> 00:52:49,667 use this ideological argument to say, 156 00:52:49,875 --> 00:52:52,252 "Look, these countries are catching up. 157 00:52:52,336 --> 00:52:56,131 "Something needs to change. What could we change? 158 00:52:56,215 --> 00:52:59,218 "Ah, it's because of the welfare state 159 00:52:59,968 --> 00:53:03,222 "that was put in place following the New Deal. 160 00:53:03,305 --> 00:53:05,182 "That's what's made us soft. 161 00:53:05,265 --> 00:53:07,893 "And so we must return to the mythical capitalism 162 00:53:07,976 --> 00:53:11,522 "of the 19th century. That's how we're going to re-energise.” 163 01:05:59,622 --> 01:06:02,542 When you have too strong a concentration of capital 164 01:06:02,625 --> 01:06:07,046 it leads to excessive influence over the media, 165 01:06:07,213 --> 01:06:11,342 and also financing of political campaigns and political parties 166 01:06:11,426 --> 01:06:14,345 that are in their own best interests. 167 01:06:14,596 --> 01:06:19,559 But this logic of 'one dollar, one vote' is completely opposed 168 01:06:19,809 --> 01:06:23,813 to the democratic logic of 'one person, one vote'. 169 01:14:27,755 --> 01:14:32,551 In 2015, Google Alphabet reported making $15.5 billion 170 01:14:32,635 --> 01:14:35,972 profit in Bermuda. 171 01:14:36,639 --> 01:14:39,976 But nothing actually happens in Bermuda. 172 01:14:40,101 --> 01:14:42,561 This is the first way countries 173 01:14:43,062 --> 01:14:45,815 steal the tax base from each other. 174 01:14:46,774 --> 01:14:51,320 The other way is through the industry of wealth management, 175 01:14:51,404 --> 01:14:54,490 which has developed in many countries. 176 01:14:54,615 --> 01:14:59,286 This industry sells shell companies and numbered accounts 177 01:14:59,370 --> 01:15:03,165 protected by bank secrecy to wealthy families. 178 01:15:13,718 --> 01:15:16,679 You can't tax what you can't measure. 179 01:15:23,477 --> 01:15:27,189 And so we live in an incredible statistical fog 180 01:15:27,773 --> 01:15:32,194 about who owns wealth, who owns real estate in New York, 181 01:15:33,195 --> 01:15:34,447 who owns real estate in Paris. 182 01:15:35,948 --> 01:15:38,325 We check the records and we see shell companies. 183 01:16:01,182 --> 01:16:06,771 The key to effectively fighting tax havens is pretty simple. 184 01:16:08,105 --> 01:16:10,483 We need sanctions against territories 185 01:16:10,566 --> 01:16:12,902 that enable tax evasion. 186 01:16:12,985 --> 01:16:16,030 And we have to change the way we calculate 187 01:16:16,113 --> 01:16:18,741 taxable profits in each country. 188 01:16:19,742 --> 01:16:21,702 Let's take Apple. 189 01:16:21,786 --> 01:16:28,417 Imagine Apple made $50 billion in global profits last year 190 01:16:28,501 --> 01:16:32,797 and 10% of its worldwide sales were in France. 191 01:16:34,340 --> 01:16:40,638 Then France could say, "10% of Apple's global profit, 192 01:16:41,680 --> 01:16:45,101 "so $5 billion, should be taxed in France.” 193 01:16:45,935 --> 01:16:48,521 The beauty of this system is that 194 01:16:48,604 --> 01:16:52,483 multinationals can manipulate the location of their profits, 195 01:16:52,566 --> 01:16:55,486 but they cannot manipulate the location of their customers. 196 01:16:55,569 --> 01:16:57,363 Their customers are in France, in Germany, 197 01:16:57,446 --> 01:16:58,906 in England, in the United States. 198 01:16:58,989 --> 01:17:00,908 You cannot send them to Bermuda. 199 01:20:01,964 --> 01:20:05,801 The average income in China since the late 1970s 200 01:20:06,302 --> 01:20:08,470 has increased by 800%. 201 01:20:10,264 --> 01:20:12,349 800% is huge. 202 01:20:13,058 --> 01:20:19,523 But the income of the richest 1% increased by 2000%. 203 01:20:19,857 --> 01:20:24,445 So it is a country that is growing, 204 01:20:24,778 --> 01:20:27,531 but this growth is highly unequal. 205 01:28:58,750 --> 01:29:00,877 It's very likely that in the 21st century 206 01:29:00,961 --> 01:29:03,547 inheritance will return to playing a role 207 01:29:03,630 --> 01:29:08,009 as significant as in 19th century England and France. 208 01:29:10,554 --> 01:29:14,850 Inheritance allows a small portion of the population 209 01:29:15,183 --> 01:29:17,769 to lead a very opulent lifestyle 210 01:29:18,854 --> 01:29:23,066 because inherited wealth produces an income. 211 01:29:25,902 --> 01:29:29,072 In fact, the rate of return on capital throughout history 212 01:29:29,155 --> 01:29:31,283 has almost always been higher 213 01:29:31,366 --> 01:29:34,160 than the rate of economic growth. 214 01:29:41,418 --> 01:29:43,503 If we look back to 1700, 215 01:29:43,628 --> 01:29:46,840 which is the very beginning of Industrial Revolution, 216 01:29:46,923 --> 01:29:51,094 until today, 2018, the growth rate of the world economy 217 01:29:51,177 --> 01:29:54,180 is 1.6% per year over three centuries. 218 01:29:56,057 --> 01:29:59,644 This is much less than the rate of return on capital, 219 01:29:59,728 --> 01:30:01,808 which is around 4% to 5% a year over the same period. 220 01:30:07,444 --> 01:30:10,530 But is it catastrophic? No, not necessarily. 221 01:30:10,614 --> 01:30:13,992 If everyone owned a portion of the capital, 222 01:30:14,367 --> 01:30:16,995 so if everyone owned an apartment 223 01:30:17,078 --> 01:30:18,496 and shares in a pension fund, 224 01:30:18,580 --> 01:30:21,416 it wouldn't be so bad that the return on capital 225 01:30:21,499 --> 01:30:23,919 is higher than the growth rate. 226 01:30:24,252 --> 01:30:28,173 The problem is concentration of ownership 227 01:30:28,256 --> 01:30:29,936 and therefore also of power within society, 228 01:30:33,136 --> 01:30:37,349 which leads to a reproduction of social hierarchies 229 01:30:38,391 --> 01:30:41,144 and rising tensions among the working and middle classes. 230 01:31:20,600 --> 01:31:25,313 Disperse yourselves or we will have to use force. 231 01:31:58,638 --> 01:32:01,474 Behind mass immigration is Islamism. 232 01:32:01,558 --> 01:32:04,644 Behind mass immigration is terrorism. 233 01:32:12,193 --> 01:32:13,820 There are always politicians 234 01:32:13,903 --> 01:32:18,074 tempted to exploit the rising inequality. 235 01:32:21,077 --> 01:32:23,079 And you could see this very clearly 236 01:32:23,163 --> 01:32:25,874 in the world before 1914. 237 01:32:27,125 --> 01:32:29,794 And I'm very afraid at the beginning of the 21st century 238 01:32:29,878 --> 01:32:31,713 that because we feel we cannot 239 01:32:31,796 --> 01:32:34,049 regulate international capitalism, 240 01:32:34,132 --> 01:32:38,136 we cannot properly tax multinationals and billionaires, 241 01:32:38,219 --> 01:32:42,849 instead we vent our anger on immigrants. 242 01:32:43,016 --> 01:32:45,852 It's safer than attacking multinationals. 243 01:32:51,274 --> 01:32:52,942 But the truth is, 244 01:32:52,984 --> 01:32:56,529 to solve the rise and persistence of inequality, 245 01:32:56,613 --> 01:32:59,532 we need a progressive tax on capital. 246 01:33:01,868 --> 01:33:05,872 And also, ownership rights cannot be eternal. 247 01:33:07,123 --> 01:33:09,751 The moment capital is inherited by the next generation, 248 01:33:09,834 --> 01:33:13,129 and also each year if you own a lot of capital, 249 01:33:13,213 --> 01:33:17,133 you have to return to the community 1%, 2%, 3%, 250 01:33:17,258 --> 01:33:21,012 or why not 5% or 10% if you own billions and billions? 251 01:33:21,096 --> 01:33:25,308 And if you continue to invest your capital usefully, 252 01:33:25,558 --> 01:33:29,270 with high returns, you can continue to prosper. 253 01:33:29,354 --> 01:33:32,315 But if financial markets allow you to have a high return 254 01:33:32,398 --> 01:33:34,984 without doing anything, 255 01:33:35,068 --> 01:33:40,406 then tax rates are set to erode this mechanism. 256 01:33:48,081 --> 01:33:50,667 This means we'll be able to control 257 01:33:50,750 --> 01:33:52,544 some of the concentration of capital, 258 01:33:52,627 --> 01:33:54,170 and therefore political power, 259 01:33:56,840 --> 01:33:59,717 and also access to property for the middle class. 260 01:34:15,817 --> 01:34:19,529 A lot of people are not ready to discuss the merits 261 01:34:19,612 --> 01:34:23,533 of strong taxation rates on revenue and inheritance. 262 01:34:23,616 --> 01:34:26,244 But without this to regulate capitalism, 263 01:34:26,327 --> 01:34:29,247 there will be disastrous consequences for everyone. 264 01:37:49,697 --> 01:37:54,077 The challenges today of creating a more equal society 265 01:37:54,369 --> 01:37:56,496 are obviously different from the 20th century. 266 01:37:57,205 --> 01:38:01,209 But the important point I want to stress is that 267 01:38:02,543 --> 01:38:05,129 it's not technically impossible; 268 01:38:05,213 --> 01:38:07,333 it's primarily a political and intellectual challenge. 269 01:38:11,469 --> 01:38:13,262 And the good news is that 270 01:38:13,346 --> 01:38:16,099 we can also find reasons from history to be optimistic. 271 01:38:20,812 --> 01:38:25,108 History shows us that if we want society to be cohesive 272 01:38:25,191 --> 01:38:27,402 in a peaceful and harmonious way, 273 01:38:27,485 --> 01:38:30,863 we must prevent inequality from becoming too high. 274 01:38:35,159 --> 01:38:39,414 I am for controlling capital to go beyond capitalism, 275 01:38:42,208 --> 01:38:46,421 with ways that are more democratic, more inclusive, 276 01:38:47,380 --> 01:38:50,633 and finally allow us to project ourselves into the 21st century.