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 00:00:13,926 --> 00:00:15,928 [WHIMSICAL MUSIC] 4 00:01:04,499 --> 00:01:07,023 [RADIO FREQUENCY ADJUSTS] 5 00:01:07,067 --> 00:01:08,633 MALE REPORTER: ...promise from the authorities 6 00:01:08,677 --> 00:01:11,984 that there would be some change, 7 00:01:12,028 --> 00:01:14,335 the pressure for reform is gathering pace 8 00:01:14,378 --> 00:01:17,207 and is gathering support. 9 00:01:17,251 --> 00:01:20,819 Differences between capitalism and communism is so strong 10 00:01:20,863 --> 00:01:23,431 that only concrete and barbed wire could hold them-- 11 00:01:23,474 --> 00:01:27,826 WOMAN: We want another way to reconstruct our society. 12 00:01:27,870 --> 00:01:29,350 [PEOPLE CHANT] 13 00:01:29,393 --> 00:01:32,179 FEMALE REPORTER: On the streets of East German cities, 14 00:01:32,222 --> 00:01:34,616 scores of people demanding democratic reforms 15 00:01:34,659 --> 00:01:36,226 were dragged off by... [STATIC CRACKLES] 16 00:01:36,270 --> 00:01:38,576 MALE REPORTER: Security police dragged individuals 17 00:01:38,620 --> 00:01:41,536 from the crowd, beating them over the head, 18 00:01:41,579 --> 00:01:44,930 and throwing them into the back of waiting lorries. 19 00:01:44,974 --> 00:01:46,062 [PEOPLE SHOUT] 20 00:03:23,290 --> 00:03:24,421 [LORDE'S 'ROYALS'] ♪ Cristal, Maybach 21 00:03:24,465 --> 00:03:25,988 ♪ Diamonds on your timepiece 22 00:03:26,031 --> 00:03:28,599 ♪ Jet planes, islands, tigers on a gold leash ♪ 23 00:03:28,643 --> 00:03:30,906 ♪ We don't care 24 00:03:30,949 --> 00:03:33,430 ♪ We aren't caught up in your love affair ♪ 25 00:03:58,803 --> 00:04:01,371 ♪ We didn't come from money 26 00:04:01,415 --> 00:04:03,721 ♪ But every song's like gold teeth, Grey Goose ♪ 27 00:04:03,765 --> 00:04:05,506 ♪ Trippin' in the bathroom 28 00:04:05,549 --> 00:04:08,160 ♪ Bloodstains, ball gowns, trashing the hotel room ♪ 29 00:04:08,204 --> 00:04:10,206 ♪ We don't care... 30 00:04:23,001 --> 00:04:26,309 - ♪ And we'll never be royals - ♪ Royals 31 00:04:26,353 --> 00:04:28,964 ♪ It don't run in our blood 32 00:04:29,007 --> 00:04:31,749 ♪ That kind of lux just ain't for us ♪ 33 00:04:31,793 --> 00:04:33,969 ♪ We crave a different kind of buzz ♪ 34 00:04:34,012 --> 00:04:36,580 - ♪ Let me be your ruler - ♪ Ruler 35 00:04:37,886 --> 00:04:39,844 ♪ You can call me Queen B 36 00:04:39,888 --> 00:04:41,106 ♪ And, baby, I'll rule 37 00:04:41,150 --> 00:04:44,458 ♪ I'll rule, I'll rule, I'll rule ♪ 38 00:04:44,501 --> 00:04:46,677 ♪ Let me live that fantasy ♪ 39 00:04:48,200 --> 00:04:50,551 [PEACEFUL, WHIMSICAL MUSIC] 40 00:05:04,347 --> 00:05:06,480 [TENSE, PERCUSSIVE MUSIC] 41 00:06:06,627 --> 00:06:08,629 [GRUNTS, OINKS] 42 00:06:11,371 --> 00:06:14,765 WOMAN: In the 18th century, life for the poor is grim. 43 00:06:14,809 --> 00:06:16,854 If you're lucky, you might be a servant. 44 00:06:16,898 --> 00:06:19,204 Everyone else is a hand-to-mouth laborer, 45 00:06:19,248 --> 00:06:22,033 moving from place to place, following the work, 46 00:06:22,077 --> 00:06:26,560 being treated by the landowners exactly as they please. 47 00:06:26,603 --> 00:06:28,257 And of course there were no benefits, 48 00:06:28,300 --> 00:06:31,086 there's no health service, there's no free schooling, 49 00:06:31,129 --> 00:06:33,480 there's absolutely nothing. 50 00:06:35,003 --> 00:06:37,440 So poverty is a death sentence. 51 00:06:39,224 --> 00:06:42,532 And what's very striking is the average life expectancy 52 00:06:42,576 --> 00:06:44,578 in the 18th century is 17. 53 00:06:46,362 --> 00:06:48,799 [CHILLING, DESPONDENT MUSIC] 54 00:06:52,455 --> 00:06:55,502 MAN: At the time, what capital really looks like is 55 00:06:55,545 --> 00:06:59,897 money, money-lending and land-owning. 56 00:06:59,941 --> 00:07:04,554 You have a guy that sits in a fort and basically claims taxes 57 00:07:04,598 --> 00:07:07,122 on all the people that work his land. 58 00:07:07,165 --> 00:07:08,906 And we sort of know what that looks like 59 00:07:08,950 --> 00:07:10,473 from all kinds of movies. 60 00:07:10,517 --> 00:07:12,170 Really, with what I get from these peasants, 61 00:07:12,214 --> 00:07:14,695 I can hardly afford to pay my perfume bills. 62 00:07:14,738 --> 00:07:17,480 What about Roulet? Has he paid his rent? 63 00:07:17,524 --> 00:07:19,439 Roulet died last week. 64 00:07:19,482 --> 00:07:22,311 [ECHOES] He died with his rent unpaid. 65 00:07:22,354 --> 00:07:24,748 - What did he die of? - Hunger. 66 00:07:24,792 --> 00:07:27,403 Hunger is an indulgence with these peasants. 67 00:07:27,447 --> 00:07:28,665 Oh, I keep forgetting, Gabelle, 68 00:07:28,709 --> 00:07:30,928 you're a humanitarian, aren't you? 69 00:07:30,972 --> 00:07:33,453 You think that one person is as good as another -- 70 00:07:33,496 --> 00:07:37,021 a naive notion so contradicted by the facts. 71 00:07:38,632 --> 00:07:40,634 [BIRDSONG] 72 00:07:42,984 --> 00:07:45,160 WILLIAMS: For the rich, inheritance is the obsession. 73 00:07:45,203 --> 00:07:47,205 It's a very strict code. 74 00:07:47,249 --> 00:07:49,294 The eldest son gets the capital. 75 00:07:49,338 --> 00:07:50,905 He gets everything -- he gets the money, 76 00:07:50,948 --> 00:07:52,950 he gets the house, he gets the land -- 77 00:07:52,994 --> 00:07:55,562 and that makes him incredibly powerful, 78 00:07:55,605 --> 00:07:59,174 just through an accident of birth. 79 00:07:59,217 --> 00:08:02,003 These land-owning men, these first sons, 80 00:08:02,046 --> 00:08:04,527 they also have a huge amount of political power, 81 00:08:04,571 --> 00:08:08,444 because a lot of them are the MPs, they're elites. 82 00:08:08,488 --> 00:08:11,186 And as a consequence, they are driven by a desire 83 00:08:11,229 --> 00:08:14,885 to protect their own income, to protect their own world, 84 00:08:14,929 --> 00:08:17,192 and it simply doesn't occur to them 85 00:08:17,235 --> 00:08:20,151 that poor people deserve some redistribution of wealth. 86 00:08:20,195 --> 00:08:22,893 Taxation, they resist very strongly. 87 00:08:22,937 --> 00:08:25,026 And this is the way that the aristocracy worked, 88 00:08:25,069 --> 00:08:28,377 not just in Britain, but all through Europe, 89 00:08:28,420 --> 00:08:32,424 and the aim is to conserve the aristocratic power. 90 00:08:32,468 --> 00:08:34,470 [PENSIVE MUSIC] 91 00:08:38,822 --> 00:08:40,694 The examples that Thomas Piketty has 92 00:08:40,737 --> 00:08:43,261 of Jane Austen and Balzac, they're very fitting, 93 00:08:43,305 --> 00:08:45,350 because when you read Jane Austen, 94 00:08:45,394 --> 00:08:47,178 it is all about money, 95 00:08:47,222 --> 00:08:49,703 and this money is not earned through work, 96 00:08:49,746 --> 00:08:52,357 it's not earned through owning businesses, 97 00:08:52,401 --> 00:08:55,012 it's earned through land, it's inherited land. 98 00:08:55,056 --> 00:08:57,058 [JOVIAL FOLK TUNE PLAYS] 99 00:09:02,324 --> 00:09:04,326 [LAUGHTER] 100 00:09:07,329 --> 00:09:09,897 WILLIAMS: Mr. Darcy, for example, in Pride and Prejudice, 101 00:09:09,940 --> 00:09:11,594 he has this huge estate. 102 00:09:11,638 --> 00:09:13,335 He doesn't even have to be there. 103 00:09:13,378 --> 00:09:16,599 This land just creates money for him. 104 00:09:16,643 --> 00:09:19,254 - How good of you to come. - [ALL WHISPER] 105 00:09:19,297 --> 00:09:20,647 LIZZIE: He looks miserable, poor sod. 106 00:09:20,690 --> 00:09:21,952 CHARLOTTE: Miserable he may be, 107 00:09:21,996 --> 00:09:24,259 but poor he most certainly is not. 108 00:09:24,302 --> 00:09:26,174 - LIZZIE: Tell me. - CHARLOTTE: 10,000 a year, 109 00:09:26,217 --> 00:09:28,089 and he owns half of Derbyshire. 110 00:09:28,132 --> 00:09:29,656 - The miserable half? - [SNORTS SOFTLY] 111 00:09:29,699 --> 00:09:31,701 [CHUCKLES] 112 00:09:33,442 --> 00:09:34,748 WILLIAMS: Jane Austen created a fantasy 113 00:09:34,791 --> 00:09:36,488 that you could get your hands on this wealth 114 00:09:36,532 --> 00:09:39,404 if you were just a bit fun and a bit witty. 115 00:09:39,448 --> 00:09:42,364 But the reality is there's no way a Mr. Darcy would marry 116 00:09:42,407 --> 00:09:43,844 girls like Lizzie Bennet, 117 00:09:43,887 --> 00:09:47,804 who actually haven't got a penny to their names. 118 00:09:47,848 --> 00:09:51,591 He would marry an heiress, possibly even a cousin, 119 00:09:51,634 --> 00:09:53,897 and create this, sort of, megalopolis estate. 120 00:09:53,941 --> 00:09:56,813 [JOVIAL FOLK TUNE RESUMES] 121 00:09:56,857 --> 00:10:01,992 WILLIAMS: Money marries money. There's nothing to do with love. 122 00:10:02,036 --> 00:10:03,907 And what we see now, 123 00:10:03,951 --> 00:10:05,953 almost a cycling back to the 18th century. 124 00:10:05,996 --> 00:10:08,869 [FUNKY VOGUE MUSIC] 125 00:10:08,912 --> 00:10:12,873 In Britain, inherited wealth is everything... again. 126 00:10:12,916 --> 00:10:17,486 Nowadays, 1% of the population owns 70% of our land. 127 00:10:17,529 --> 00:10:19,923 ♪ I've been broke all my life 128 00:10:19,967 --> 00:10:21,272 ♪ Now wonder 129 00:10:21,316 --> 00:10:23,927 ♪ How does it feel to be rich? 130 00:10:23,971 --> 00:10:26,016 ♪ How does it feel to be rich? 131 00:10:26,060 --> 00:10:28,453 ♪ Oh, I done worked all my life ♪ 132 00:10:29,454 --> 00:10:30,978 ♪ Now wonder 133 00:10:31,021 --> 00:10:33,458 ♪ How does it feel to just live? ♪ 134 00:10:33,502 --> 00:10:35,547 ♪ How does it feel to just live? ♪ 135 00:10:35,591 --> 00:10:39,203 WOMAN: There's always been an elite, which is usually adept at 136 00:10:39,247 --> 00:10:41,597 reproducing its privilege through generations, 137 00:10:41,641 --> 00:10:46,820 monopolizing both economic and social and cultural capital. 138 00:10:46,863 --> 00:10:50,084 The way the elite stays in power and passes on their privilege 139 00:10:50,127 --> 00:10:51,607 to the next generation 140 00:10:51,651 --> 00:10:54,218 is also by shaping the way that we think. 141 00:10:54,262 --> 00:10:56,307 ♪ How does it feel to be rich? 142 00:10:56,351 --> 00:10:58,788 ♪ How does it feel to be ri-i-ich? ♪ 143 00:10:58,832 --> 00:11:01,138 ♪ How does it feel to just live? ♪ 144 00:11:01,182 --> 00:11:03,184 ♪ How does it feel to just live? ♪♪ 145 00:11:03,227 --> 00:11:05,447 [CAR HORNS BLARE] 146 00:11:05,490 --> 00:11:07,362 TETT: Traditionally, economists have argued 147 00:11:07,405 --> 00:11:10,408 that inequality is a very powerful driver 148 00:11:10,452 --> 00:11:12,889 of progress and innovation 149 00:11:12,933 --> 00:11:15,849 because the idea is that competition, essentially, 150 00:11:15,892 --> 00:11:17,894 makes people try harder. 151 00:11:19,766 --> 00:11:23,160 The problem is that extreme inequality 152 00:11:23,204 --> 00:11:27,382 increasingly seems to be a source of great economic stress, 153 00:11:27,425 --> 00:11:30,951 social stress and political stress. 154 00:11:30,994 --> 00:11:34,563 Because if you have a situation where an elite 155 00:11:34,606 --> 00:11:37,261 are so rigidly protective of their ranks 156 00:11:37,305 --> 00:11:39,916 that nobody can ever rise, there's no social mobility, 157 00:11:39,960 --> 00:11:42,136 you tend to end up with a full-blown revolution. 158 00:11:42,179 --> 00:11:44,181 [TENSE, DRAMATIC MUSIC] 159 00:12:04,680 --> 00:12:06,682 [PEOPLE SHOUT] 160 00:12:08,292 --> 00:12:10,338 WILLIAMS: In the French Revolution, the banner is 161 00:12:10,381 --> 00:12:13,254 "Liberté, égalité, fraternité." 162 00:12:13,297 --> 00:12:15,560 It's going to be brotherhood, everyone's going to be free. 163 00:12:15,604 --> 00:12:18,085 [GUNFIRE] 164 00:12:18,128 --> 00:12:20,914 But yet within a tiny amount of time, 165 00:12:20,957 --> 00:12:23,177 you have this government of bankers, 166 00:12:23,220 --> 00:12:27,094 and what they do is start to create the elites once more. 167 00:12:28,748 --> 00:12:31,054 ♪ This is the land that fought for liberty ♪ 168 00:12:31,098 --> 00:12:33,927 ♪ Now when we fight, we fight for bread ♪ 169 00:12:33,970 --> 00:12:36,712 ♪ Here is the thing about equality ♪ 170 00:12:36,756 --> 00:12:39,759 ♪ Everyone's equal when they're dead ♪ 171 00:12:39,802 --> 00:12:42,413 ♪ Take your place, take your chance ♪ 172 00:12:42,457 --> 00:12:45,286 ♪ Vive la France Vive la France! 173 00:12:45,329 --> 00:12:47,505 - [MEN YELL] - ALL CHANT: Vive la France! 174 00:13:33,464 --> 00:13:35,553 [DARK, DESPONDENT MUSIC] 175 00:13:40,907 --> 00:13:42,604 WILLIAMS: What we see in the late 18th 176 00:13:42,647 --> 00:13:45,389 and early 19th centuries is the Industrial Revolution. 177 00:13:45,433 --> 00:13:48,784 It replaces the work of people's hands with machines, 178 00:13:48,828 --> 00:13:51,395 so you bring in machines to make wool, to make cotton, 179 00:13:51,439 --> 00:13:54,050 to make all kinds of commodities. 180 00:13:54,094 --> 00:13:57,358 This makes goods faster, it standardizes them, 181 00:13:57,401 --> 00:14:00,274 and this makes more profit. 182 00:14:00,317 --> 00:14:04,713 Capital's no longer this fixed thing that's your land 183 00:14:04,756 --> 00:14:08,412 or even your ability to lend money. 184 00:14:08,456 --> 00:14:13,678 You finally figure out that you can expand your own factory 185 00:14:13,722 --> 00:14:17,813 by, kind of, selling stuff, keeping the profits, 186 00:14:17,857 --> 00:14:21,904 then reinvesting those profits in expanding your factory. 187 00:14:21,948 --> 00:14:24,994 And that's kind of what capitalism in its modern form 188 00:14:25,038 --> 00:14:28,128 really lets us do -- is that capital becomes this thing 189 00:14:28,171 --> 00:14:31,131 that can, kind of, perpetually expand. 190 00:14:31,174 --> 00:14:33,176 [PENSIVE MUSIC] 191 00:14:35,222 --> 00:14:38,834 But the gap between wages and productivity is substantial, 192 00:14:38,878 --> 00:14:41,793 and you have these kind of feudal legacies of labor 193 00:14:41,837 --> 00:14:45,145 persisting very, very late into the game. 194 00:14:45,188 --> 00:14:47,582 British master and servant law meant that it was a crime 195 00:14:47,625 --> 00:14:50,890 for you to quit your employer without permission. 196 00:14:53,022 --> 00:14:55,285 And, you know, this is getting actively used 197 00:14:55,329 --> 00:14:58,898 in the mid-19th century, during, like, the heyday of capitalism 198 00:14:58,941 --> 00:15:01,813 in England -- the most advanced country in the world -- 199 00:15:01,857 --> 00:15:03,946 and they're throwing workers in jail, 200 00:15:03,990 --> 00:15:05,948 and they're being beaten 201 00:15:05,992 --> 00:15:08,864 because it's a crime to go on strike. 202 00:15:11,084 --> 00:15:13,086 [DOG BARKS IN DISTANCE] 203 00:15:15,001 --> 00:15:17,003 [POIGNANT MUSIC] 204 00:15:36,718 --> 00:15:40,635 MAN: This whole idea developed around escaping the Old World 205 00:15:40,678 --> 00:15:45,205 and setting up a new, more egalitarian society. 206 00:15:45,248 --> 00:15:48,251 When the new world countries were being set up -- 207 00:15:48,295 --> 00:15:50,471 so New Zealand, Australia, Canada -- 208 00:15:50,514 --> 00:15:54,388 these places were being set up by these refugees, essentially, 209 00:15:54,431 --> 00:15:56,085 fleeing Europe 210 00:15:56,129 --> 00:15:59,784 at a time that capitalism was really taking hold. 211 00:16:01,482 --> 00:16:04,398 And that's why a lot of these people wanted to get out 212 00:16:04,441 --> 00:16:09,359 of these countries -- they wanted a flatter society. 213 00:16:09,403 --> 00:16:14,103 It was this idea of moving beyond the class system, 214 00:16:14,147 --> 00:16:17,019 but it was done largely in a laissez-faire way. 215 00:16:17,063 --> 00:16:21,197 It wasn't a political movement, by and large. 216 00:16:21,241 --> 00:16:24,287 And very quickly it was the wealthy that started dominating 217 00:16:24,331 --> 00:16:26,246 right from the start. 218 00:16:27,987 --> 00:16:30,641 NAIDU: If you're a white man in sort of, like, 1800-ish, 219 00:16:30,685 --> 00:16:32,339 Australia and the US -- 220 00:16:32,382 --> 00:16:36,038 these places are, like, the best places for you to go. 221 00:16:36,082 --> 00:16:39,520 You've got this wide-open frontier; it's filled with land. 222 00:16:39,563 --> 00:16:41,609 But the big constraint on your production 223 00:16:41,652 --> 00:16:44,786 is your ability to mobilize labor. 224 00:16:44,829 --> 00:16:46,918 So if you're a small family farmer, 225 00:16:46,962 --> 00:16:49,008 the only labor you can mobilize on to the frontier 226 00:16:49,051 --> 00:16:51,010 is your kids. 227 00:16:53,186 --> 00:16:56,058 But if you're a slave owner, you can basically go to New Orleans, 228 00:16:56,102 --> 00:16:58,234 you can take out a loan, use that loan 229 00:16:58,278 --> 00:17:01,933 to buy a bunch of slaves in the New Orleans slave market, 230 00:17:01,977 --> 00:17:04,893 then take them out to the Alabama frontier 231 00:17:04,936 --> 00:17:07,156 and start clearing land and growing cotton. 232 00:17:08,723 --> 00:17:10,725 [SOLEMN MUSIC] 233 00:17:19,734 --> 00:17:22,998 And you're again able to take the profits from that 234 00:17:23,042 --> 00:17:26,219 and expand, buy more slaves, buy more land, 235 00:17:26,262 --> 00:17:29,091 and so you can again now think of the slave economy 236 00:17:29,135 --> 00:17:33,226 as participating in this circuit of accumulation. 237 00:17:37,534 --> 00:17:40,668 But also being a slave owner didn't just mean that you had 238 00:17:40,711 --> 00:17:43,323 access to the labor of your slaves, 239 00:17:43,366 --> 00:17:47,457 it also meant you had increased access to capital, 240 00:17:47,501 --> 00:17:51,200 because you can use your slaves as collateral. 241 00:17:58,164 --> 00:18:01,036 So if you, basically, are looking to lend to somebody 242 00:18:01,080 --> 00:18:03,865 and they can offer an equivalent amount of 243 00:18:03,908 --> 00:18:05,780 slave collateral versus land, 244 00:18:05,823 --> 00:18:07,347 you'd prefer the slave collateral 245 00:18:07,390 --> 00:18:10,524 because it's much easier to move them around 246 00:18:10,567 --> 00:18:13,135 or resell them or something like that. 247 00:18:13,179 --> 00:18:15,181 [SOLEMN MUSIC] 248 00:18:34,504 --> 00:18:36,811 [MILITARY SNARE DRUM ROLLS] 249 00:18:38,117 --> 00:18:40,119 [DRILL SERGEANT YELLS] 250 00:19:00,835 --> 00:19:02,837 [BUGLE CALL BLARES] 251 00:19:05,100 --> 00:19:06,580 MAN: Attack! 252 00:19:06,623 --> 00:19:08,277 [HORSES HOOVES THUNDER, BLADES RING] 253 00:19:08,321 --> 00:19:10,932 [PEOPLE SCREAM, SOLDIERS YELL] 254 00:19:11,628 --> 00:19:12,847 [WOMAN GROANS] 255 00:19:12,890 --> 00:19:15,241 [CHILD SCREAMS, BLADE RINGS] 256 00:19:16,416 --> 00:19:18,157 [BUGLE CALL BLARES] 257 00:19:46,707 --> 00:19:48,709 [DARK, TENSE MUSIC] 258 00:19:53,801 --> 00:19:55,585 WILLIAMS: It's no good speeding up production 259 00:19:55,629 --> 00:19:58,501 if there's no one to buy the stuff. 260 00:19:58,545 --> 00:20:03,202 So fashion fuels the Industrial Revolution. 261 00:20:03,245 --> 00:20:06,770 By the 19th century, the cult of fashion is all-encompassing. 262 00:20:06,814 --> 00:20:08,990 It's come down even to the working classes. 263 00:20:09,033 --> 00:20:13,951 Even working class women are trying to stay in fashion. 264 00:20:13,995 --> 00:20:17,607 The idea that, "You can't wear that. That's from last season," 265 00:20:17,651 --> 00:20:20,915 that will be very strange to a 16th or 17th century person. 266 00:20:20,958 --> 00:20:23,047 They think, "Well, it's still working, 267 00:20:23,091 --> 00:20:27,226 it's still hard-wearing. I'll wear the same outfit." 268 00:20:27,269 --> 00:20:29,228 [INTRIGUING MUSIC] 269 00:20:32,970 --> 00:20:34,755 And the industry that accelerates the fastest 270 00:20:34,798 --> 00:20:37,627 in the 19th century is the industry about Christmas. 271 00:20:37,671 --> 00:20:39,673 [ROUSING MUSIC] 272 00:20:45,853 --> 00:20:47,637 In the 18th and 17th century, 273 00:20:47,681 --> 00:20:49,987 Christmas was a very low-key affair. 274 00:20:50,031 --> 00:20:52,903 It was usually about drinking with your friends and relations. 275 00:20:52,947 --> 00:20:55,036 It wasn't really about present-giving; 276 00:20:55,079 --> 00:20:58,605 that was perhaps in New Year. 277 00:20:58,648 --> 00:21:01,260 But by the mid-19th century, we have the Christmas cracker, 278 00:21:01,303 --> 00:21:03,218 the Christmas card, the Christmas tree. 279 00:21:03,262 --> 00:21:05,089 People are bankrupting themselves 280 00:21:05,133 --> 00:21:08,571 to have a yearly Christmas, and it really was seized upon 281 00:21:08,615 --> 00:21:12,532 by the manufacturers as a way to make a huge amount of money. 282 00:21:16,231 --> 00:21:18,146 NAIDU: Just as you were getting all these new technologies 283 00:21:18,189 --> 00:21:21,367 like the railroad and the telegraph and mass production 284 00:21:21,410 --> 00:21:23,499 and the corporation -- all of these new innovations, 285 00:21:23,543 --> 00:21:24,935 all of this additional production -- 286 00:21:24,979 --> 00:21:28,243 and inequality becomes very, very large. 287 00:21:30,201 --> 00:21:32,595 It's actually this period of enormous conflicts, 288 00:21:32,639 --> 00:21:36,469 where you have open wars in the mines in Colorado 289 00:21:36,512 --> 00:21:41,212 between strikers and armed militia hired by capitalists. 290 00:21:42,823 --> 00:21:45,347 [PEOPLE YELL] 291 00:21:45,391 --> 00:21:49,177 And the overwhelming use of the US Federal Army 292 00:21:49,220 --> 00:21:52,354 in this period is strike-breaking. 293 00:21:52,398 --> 00:21:54,791 [GUNFIRE POPS, PEOPLE SHOUT] 294 00:22:00,971 --> 00:22:02,973 [TRAIN WHEELS CLACK] 295 00:22:08,327 --> 00:22:10,329 [ELECTRICITY WHIRRS] 296 00:22:19,425 --> 00:22:22,689 And similarly, today, we have this whole 297 00:22:22,732 --> 00:22:24,778 transformation of the economy happening, 298 00:22:26,432 --> 00:22:28,825 both with trade and with technology, 299 00:22:28,869 --> 00:22:31,393 that exactly have the sort of same property of 300 00:22:31,437 --> 00:22:33,830 creating lots of monopolies. 301 00:22:33,874 --> 00:22:36,920 [RADIO STATIC CRACKLES, PHONES BEEP] 302 00:22:38,357 --> 00:22:40,010 And so it's generating, again, 303 00:22:40,054 --> 00:22:42,796 a small class of very, very wealthy people. 304 00:22:42,839 --> 00:22:43,971 - 22... - 43 million. 305 00:22:44,014 --> 00:22:45,407 - 75 million. 306 00:22:45,451 --> 00:22:48,105 $107 million. [HITS GAVEL] Sold. 307 00:22:49,455 --> 00:22:51,457 [TENSE MUSIC] 308 00:24:05,444 --> 00:24:07,837 ARCHIVE: In Berlin, the Germans know the hour 309 00:24:07,881 --> 00:24:10,187 of glory is at hand. 310 00:24:10,231 --> 00:24:12,015 [TRIUMPHANT MARCHING BAND MUSIC] 311 00:24:12,059 --> 00:24:14,496 NAIDU: There's like a cultural militarism that's happening 312 00:24:14,540 --> 00:24:17,325 on the Continent, and they're competing with each other 313 00:24:17,368 --> 00:24:20,676 over both imperial territory and trade routes. 314 00:24:20,720 --> 00:24:23,287 ARCHIVE: The warlord is ceaseless, indefatigable, 315 00:24:23,331 --> 00:24:26,421 as he makes the rounds of his armies. 316 00:24:26,465 --> 00:24:28,684 WILLIAMS: The British Empire was so powerful; 317 00:24:28,728 --> 00:24:30,425 they had a quarter of the world's population. 318 00:24:30,469 --> 00:24:32,514 The other countries wanted a piece of the cake. 319 00:24:32,558 --> 00:24:36,562 And Germany, in particular, wanted a piece of the cake. 320 00:24:38,955 --> 00:24:41,567 NAIDU: A lot of these new capitalists 321 00:24:41,610 --> 00:24:44,700 are still, kind of, basically feudal in their outlook. 322 00:24:44,744 --> 00:24:47,921 So particularly in Germany, you have these Junkers 323 00:24:47,964 --> 00:24:49,749 that are these big industrialists, 324 00:24:49,792 --> 00:24:51,707 but they also think there's nothing better for society 325 00:24:51,751 --> 00:24:52,969 than a good fight. 326 00:24:53,013 --> 00:24:55,015 [EXPLOSION POPS] 327 00:25:01,630 --> 00:25:04,198 WILLIAMS: Britain and the Allied powers take on Germany 328 00:25:04,241 --> 00:25:07,506 in what they think is going to be a short, sharp shock 329 00:25:07,549 --> 00:25:09,072 over in a few months' time. 330 00:25:09,116 --> 00:25:11,205 [CANNONS FIRE, MEN SCREAM] 331 00:25:14,817 --> 00:25:17,124 [EXPLOSIONS WHISTLE, BOOM] 332 00:25:22,042 --> 00:25:26,437 Instead, it goes on for years and decimates both populations. 333 00:25:26,481 --> 00:25:28,483 [LOUD EXPLOSION] 334 00:25:30,703 --> 00:25:32,705 [FLIES BUZZ] 335 00:25:34,358 --> 00:25:36,360 [MELANCHOLY MUSIC] 336 00:25:41,714 --> 00:25:45,544 World War I is, at its base, a fight over capital. 337 00:25:47,589 --> 00:25:51,506 And we see this massive post-war economic crash. 338 00:25:53,726 --> 00:25:56,424 So, you have this new idea after World War I, 339 00:25:56,467 --> 00:25:59,383 basically born out of the fact that the government is bankrupt, 340 00:25:59,427 --> 00:26:02,909 that tax is not bad, that it actually could be good. 341 00:26:02,952 --> 00:26:04,563 And the only way you're going to get money 342 00:26:04,606 --> 00:26:06,826 is by taxing the aristocracy. 343 00:26:06,869 --> 00:26:09,263 [FIRE WHOOSHES, CRACKLES] 344 00:26:09,306 --> 00:26:11,744 There is nothing in the working class and the middle class 345 00:26:11,787 --> 00:26:13,746 left to tax. 346 00:26:13,789 --> 00:26:17,445 So you see the beginning of the drop in aristocratic power. 347 00:26:19,099 --> 00:26:22,493 And also what you see in the '20s is the growth of the power 348 00:26:22,537 --> 00:26:24,974 of women and also of the working classes -- 349 00:26:25,018 --> 00:26:27,324 both of them, essentially, are saying to the government, 350 00:26:27,368 --> 00:26:29,936 "Look, we worked really hard for you in this war. 351 00:26:29,979 --> 00:26:32,895 We sacrificed. You need to give us something back." 352 00:26:32,939 --> 00:26:36,333 So suddenly the whole principle that the working classes 353 00:26:36,377 --> 00:26:39,989 and women must sit there and put up with the way that society is, 354 00:26:40,033 --> 00:26:42,383 is completely overturned in the '20s. 355 00:26:42,426 --> 00:26:44,994 [CAR HORNS HONK, CHEERING] 356 00:26:45,038 --> 00:26:46,866 ARCHIVE: All of the crowds of the Empire City, 357 00:26:46,909 --> 00:26:49,172 the wonder city, the windy city, the passion city, 358 00:26:49,216 --> 00:26:50,652 the people, yes. 359 00:26:50,696 --> 00:26:53,960 [GINGER ROGERS' 'WE'RE IN THE MONEY'] 360 00:26:54,003 --> 00:26:58,007 ♪ Gone are my blues, and gone are my tears ♪ 361 00:26:58,051 --> 00:27:02,098 ♪ I've got good news to shout in your ears ♪ 362 00:27:02,142 --> 00:27:05,711 ♪ The long-lost dollar has come back to the fold ♪ 363 00:27:05,754 --> 00:27:09,018 ♪ With silver, you can turn your dreams to gold! ♪ 364 00:27:09,062 --> 00:27:11,064 ♪ Oh, we're in the money 365 00:27:12,108 --> 00:27:13,849 ♪ We're in the money 366 00:27:13,893 --> 00:27:18,680 ♪ Let's lend it, spend it, send it rolling around ♪ 367 00:27:18,724 --> 00:27:20,421 ARCHIVE: All of the crowd get the big money -- 368 00:27:20,464 --> 00:27:22,945 2 million, 5 million -- make a pile and raise a pile. 369 00:27:22,989 --> 00:27:25,513 WOMAN: The '20s was maybe irrational exuberance. 370 00:27:25,556 --> 00:27:27,646 ARCHIVE: Watch us grow! What am I bid? Going up! 371 00:27:27,689 --> 00:27:29,473 WOMAN: There was a boom in stock prices, 372 00:27:29,517 --> 00:27:32,955 but people kept bidding into the stock market, 373 00:27:32,999 --> 00:27:36,829 because people always think there's magic in Wall Street. 374 00:27:36,872 --> 00:27:39,788 You know, we have a mythology in this country, in particular, 375 00:27:39,832 --> 00:27:42,399 that what's good for Wall Street is good for Main Street, 376 00:27:42,443 --> 00:27:44,750 but that's really never been true. 377 00:27:44,793 --> 00:27:47,840 ♪ We're in the money, I'll say we're in the money ♪ 378 00:27:47,883 --> 00:27:51,757 ♪ We've got a lot of what it takes to get along ♪♪ 379 00:27:51,800 --> 00:27:55,325 A lot of banks were selling products that they knew 380 00:27:55,369 --> 00:27:58,154 were absolutely no good. 381 00:27:58,198 --> 00:28:02,855 There were dodgy bankers doing dodgy deals knowingly. 382 00:28:02,898 --> 00:28:04,944 There weren't a lot of regulations in place. 383 00:28:04,987 --> 00:28:08,034 It was a real free-for-all of capital. 384 00:28:09,775 --> 00:28:11,820 MAN: The bubble of the 1920s 385 00:28:11,864 --> 00:28:14,605 was characteristic of many other bubbles -- 386 00:28:14,649 --> 00:28:16,782 a kind of euphoria that happens. 387 00:28:16,825 --> 00:28:19,567 Stocks go up, you can borrow against that stock. 388 00:28:19,610 --> 00:28:21,351 You use that money to buy more stock, 389 00:28:21,395 --> 00:28:26,095 the price goes up even more, and everybody's feeling giddy. 390 00:28:26,139 --> 00:28:28,141 [BELL RINGS] 391 00:28:32,841 --> 00:28:34,800 FOROOHAR: At the same time, you've got tremendous 392 00:28:34,843 --> 00:28:37,628 dislocation going on in the job market -- 393 00:28:37,672 --> 00:28:39,195 a lot of people getting very rich, 394 00:28:39,239 --> 00:28:41,023 but a lot of workers at the bottom, 395 00:28:41,067 --> 00:28:43,243 not enough in the middle. 396 00:28:43,286 --> 00:28:48,335 Credit was then being offered to kind of paper over that divide. 397 00:28:53,644 --> 00:28:57,431 STIGLITZ: That credit cycle fed this bubble, 398 00:28:57,474 --> 00:29:00,390 and like every other bubble, 399 00:29:00,434 --> 00:29:01,609 it broke. 400 00:29:01,652 --> 00:29:03,524 [PEOPLE SHOUT, JEER] 401 00:29:03,567 --> 00:29:04,960 FOROOHAR: This time around, 402 00:29:05,004 --> 00:29:08,442 a number of bankers actually went to jail, 403 00:29:08,485 --> 00:29:11,010 and there really were some regulatory changes, you know, 404 00:29:11,053 --> 00:29:13,708 like, in particular the Glass-Steagall Depression-era 405 00:29:13,752 --> 00:29:15,754 legislation that actually fixed the banking system 406 00:29:15,797 --> 00:29:19,845 and made it safer -- until it was overturned in 1989. 407 00:29:28,462 --> 00:29:30,812 [SOLEMN MUSIC] 408 00:29:30,856 --> 00:29:34,033 After the financial crash, countries all around the world 409 00:29:34,076 --> 00:29:36,818 also ended up getting in a trade war. 410 00:29:36,862 --> 00:29:38,385 There were tariffs that were imposed, 411 00:29:38,428 --> 00:29:40,343 and that created a snowball cycle, 412 00:29:40,387 --> 00:29:42,824 which led to more pain globally, 413 00:29:44,434 --> 00:29:48,351 and that helped to provoke the Great Depression. 414 00:29:49,178 --> 00:29:50,745 [SOLEMN MUSIC] 415 00:30:02,365 --> 00:30:03,758 They told me to tell you to get off, 416 00:30:03,802 --> 00:30:05,238 and that's what I'm telling ya. 417 00:30:05,281 --> 00:30:07,196 You mean get off of my own land? 418 00:30:07,240 --> 00:30:09,329 Don't go to blaming me, it ain't my fault. 419 00:30:09,372 --> 00:30:10,591 Whose fault is it? 420 00:30:10,634 --> 00:30:11,897 You know who owns the land -- 421 00:30:11,940 --> 00:30:14,029 the Shawnee Land and Cattle Company. 422 00:30:14,073 --> 00:30:15,944 And who's the Shawnee Land and Cattle Company? 423 00:30:15,988 --> 00:30:17,903 It ain't nobody! It's a company. 424 00:30:17,946 --> 00:30:19,730 They got a president, ain't they? 425 00:30:19,774 --> 00:30:22,168 They got somebody knows what a shotgun's for, ain't they?! 426 00:30:22,211 --> 00:30:23,256 What's the use of pickin' on him? 427 00:30:23,299 --> 00:30:25,040 He ain't nothin' but the manager. 428 00:30:25,084 --> 00:30:26,955 And he's half crazy hisself tryin' to keep up 429 00:30:26,999 --> 00:30:28,391 with his orders from the East. 430 00:30:28,435 --> 00:30:31,699 - Then who do we shoot? - Brother, I don't know. 431 00:30:31,742 --> 00:30:33,440 - If I did, I'd tell ya. - [CAR ENGINE STARTS] 432 00:30:33,483 --> 00:30:35,485 I just don't know who's to blame. 433 00:30:35,529 --> 00:30:37,836 I'm right here to tell you, mister, there ain't nobody 434 00:30:37,879 --> 00:30:39,838 gonna push me off my land! 435 00:30:39,881 --> 00:30:43,319 My grandpa took up this land 70 years ago. 436 00:30:43,363 --> 00:30:46,583 My pa was born here. We was all born on it! 437 00:30:46,627 --> 00:30:48,977 And some of us was killed on it! 438 00:30:52,241 --> 00:30:54,243 [SOLEMN MUSIC] 439 00:31:24,708 --> 00:31:26,710 [SOLEMN PIANO MUSIC] 440 00:32:01,963 --> 00:32:04,096 [TENSE, PERCUSSIVE MUSIC] 441 00:32:19,241 --> 00:32:21,243 [PEOPLE SHOUT] 442 00:32:24,551 --> 00:32:26,553 [GUNSHOT POPS] 443 00:32:27,467 --> 00:32:29,469 [ALL CHANT, SHOUT] 444 00:32:30,078 --> 00:32:31,950 [GUNFIRE] 445 00:32:33,690 --> 00:32:37,477 MAN: The pain in the United States had become so great, 446 00:32:37,520 --> 00:32:43,004 so grave -- absolute poverty -- and as a consequence of that, 447 00:32:43,048 --> 00:32:45,833 the willingness to make political solutions 448 00:32:45,876 --> 00:32:48,488 that were severe. 449 00:32:48,531 --> 00:32:53,101 ROOSEVELT: This nation is asking for action and action now. 450 00:32:54,885 --> 00:32:58,411 BREMMER: Price-fixing, massive change in labor rates -- 451 00:32:58,454 --> 00:33:01,153 all of these things under FDR 452 00:33:01,196 --> 00:33:04,460 was something that Americans hadn't seen before, 453 00:33:04,504 --> 00:33:07,550 and absolutely that led to massive infrastructure build 454 00:33:07,594 --> 00:33:10,423 and it led to extraordinary redistribution. 455 00:33:11,902 --> 00:33:14,035 The existence of a communist alternative 456 00:33:14,079 --> 00:33:18,605 scared the capitalist world into thinking that if it didn't 457 00:33:18,648 --> 00:33:21,912 at least address some of the basic inequality issues, 458 00:33:21,956 --> 00:33:24,828 that they would lose the battle for ideas. 459 00:33:24,872 --> 00:33:26,874 [LOUD EXPLOSION] 460 00:33:30,921 --> 00:33:33,533 In the New Deal itself, Roosevelt actually borrowed 461 00:33:33,576 --> 00:33:37,058 some ideas -- the heavy state involvement in the economy; 462 00:33:37,102 --> 00:33:39,060 heavy regulation. 463 00:33:41,323 --> 00:33:44,979 There was a clear recognition that unless the state tried to 464 00:33:45,023 --> 00:33:46,763 do something about jobs 465 00:33:46,807 --> 00:33:50,985 and do enough redistribution to keep people from starving, 466 00:33:51,029 --> 00:33:54,510 that you wouldn't have basic social stability. 467 00:33:56,904 --> 00:33:58,906 [GLASS SHATTERS] 468 00:34:02,779 --> 00:34:04,781 [DARK, OMINOUS MUSIC] 469 00:34:18,621 --> 00:34:20,797 WILLIAMS: The Wall Street crash creates poverty in America, 470 00:34:20,841 --> 00:34:22,147 it creates poverty in Britain, 471 00:34:22,190 --> 00:34:24,105 but it has a massive effect on Germany, 472 00:34:24,149 --> 00:34:28,196 because Germany is already poor. After World War I, 473 00:34:28,240 --> 00:34:30,851 they were given these very punitive reparations -- 474 00:34:30,894 --> 00:34:33,810 they had to give huge amounts of money to the other countries. 475 00:34:33,854 --> 00:34:36,291 And what you have is this horrific inflation 476 00:34:36,335 --> 00:34:37,684 in the Weimar Republic -- 477 00:34:37,727 --> 00:34:39,642 Germany as it was known in the 1920s -- 478 00:34:39,686 --> 00:34:41,383 in which, basically, at one point, 479 00:34:41,427 --> 00:34:46,040 a whole barrel of banknotes cannot buy you a loaf of bread. 480 00:34:49,174 --> 00:34:52,264 We can absolutely link, as tight as that, the rise of fascism 481 00:34:52,307 --> 00:34:55,745 in Europe in the 1930s and extreme poverty. 482 00:34:57,878 --> 00:34:59,880 [TENSE, SOMBER MUSIC] 483 00:35:12,936 --> 00:35:14,895 And you can see how seductive it is 484 00:35:14,938 --> 00:35:17,419 when someone like Adolf Hitler comes up and says, 485 00:35:17,463 --> 00:35:20,944 "I'll make Germany great again. We'll be powerful again." 486 00:35:20,988 --> 00:35:22,990 And really what he's saying is, 487 00:35:23,033 --> 00:35:26,036 "The reason why we're so poor in Germany is because of Britain, 488 00:35:26,080 --> 00:35:30,650 is because of America, is because of the rest of Europe." 489 00:35:30,693 --> 00:35:32,782 [SOMBER MUSIC CONTINUES] 490 00:35:42,923 --> 00:35:46,144 These downtrodden people were so open, so vulnerable 491 00:35:46,187 --> 00:35:49,059 to the rise of fascism and the call of racism, 492 00:35:49,103 --> 00:35:50,496 the call of exclusionism 493 00:35:50,539 --> 00:35:53,629 and the call of invading other countries. 494 00:35:53,673 --> 00:35:55,675 [UNSETTLING MUSIC] 495 00:36:19,438 --> 00:36:21,309 [TRIUMPHANT, PATRIOTIC MUSIC] 496 00:36:21,353 --> 00:36:26,053 ARCHIVE: One American airplane factory -- one of many. 497 00:36:26,096 --> 00:36:28,969 One bomber -- thousands on the way -- 498 00:36:30,449 --> 00:36:32,886 an angel of death. 499 00:36:32,929 --> 00:36:35,410 NAIDU: What really gets rid of the Depression is transforming 500 00:36:35,454 --> 00:36:37,369 the economy into World War II. 501 00:36:37,412 --> 00:36:39,936 And the scale of this is just something that humanity 502 00:36:39,980 --> 00:36:41,895 had never seen before. 503 00:36:42,722 --> 00:36:44,680 [CLICKING, WHIRRING] 504 00:36:44,724 --> 00:36:46,856 The governments of all the societies involved 505 00:36:46,900 --> 00:36:49,119 just kind of take over production, 506 00:36:49,163 --> 00:36:50,817 and this is an industrial war, 507 00:36:50,860 --> 00:36:54,124 so production is, kind of, the terms under which, 508 00:36:54,168 --> 00:36:57,258 in the long run, this will be won or lost. 509 00:36:58,868 --> 00:37:00,870 [TENSE MUSIC] 510 00:37:03,917 --> 00:37:06,746 The labor movement got a lot of political power. 511 00:37:06,789 --> 00:37:08,574 Like, if you're producing for the war, 512 00:37:08,617 --> 00:37:13,405 you have to automatically recognize a union. 513 00:37:13,448 --> 00:37:15,798 And then just also raising the money to pay for that 514 00:37:15,842 --> 00:37:18,236 just involved raising taxes. 515 00:37:19,541 --> 00:37:22,588 This period was the last gasp of feudalism, 516 00:37:22,631 --> 00:37:25,678 and it took this to finally purge the influence 517 00:37:25,721 --> 00:37:29,159 of the aristocracy in advanced countries. 518 00:37:29,899 --> 00:37:31,901 [OMINOUS MUSIC] 519 00:37:37,951 --> 00:37:39,953 [ENGINES HUM] 520 00:37:43,043 --> 00:37:45,219 [OMINOUS MUSIC CONTINUES] 521 00:37:47,830 --> 00:37:49,832 [AIR RAID SIREN WAILS] 522 00:37:50,964 --> 00:37:52,966 [TORPEDOES WHISTLE] 523 00:37:56,361 --> 00:37:58,058 [EXPLOSIONS BOOM] 524 00:37:58,101 --> 00:38:00,365 [RAPID GUNFIRE, BOMBS BOOM] 525 00:38:04,891 --> 00:38:06,893 [PROPELLER WHIRRS] 526 00:38:08,895 --> 00:38:10,897 [BOMBS WHISTLE, BOOM] 527 00:38:13,247 --> 00:38:15,249 [EXPLOSIONS BOOM] 528 00:38:18,121 --> 00:38:20,123 [JARRING MUSIC] 529 00:38:23,562 --> 00:38:25,564 [MUSIC FADES] 530 00:38:27,087 --> 00:38:29,089 [RESONATING RUMBLING] 531 00:38:38,185 --> 00:38:40,187 [WATER LAPS GENTLY] 532 00:38:48,456 --> 00:38:50,066 [QUIET, MELANCHOLY MUSIC] 533 00:39:45,992 --> 00:39:49,256 [ELLA FITZGERALD'S 'DON'T FENCE ME IN'] 534 00:39:53,216 --> 00:39:56,176 ♪ Oh, give me land, lots of land ♪ 535 00:39:56,219 --> 00:39:58,874 ♪ Under starry skies above 536 00:39:58,918 --> 00:40:02,138 ♪ Don't fence me in 537 00:40:02,182 --> 00:40:05,403 ♪ Let me ride through the wide open country... ♪ 538 00:40:19,721 --> 00:40:24,422 ♪ Let me be my myself in the evening breeze ♪ 539 00:40:24,465 --> 00:40:28,382 ♪ Listen to the murmur of the cottonwood trees... ♪ 540 00:40:41,482 --> 00:40:50,796 ♪ Don't fence me in ♪ 541 00:40:54,277 --> 00:40:56,932 The social landscape is completely different 542 00:40:56,976 --> 00:40:58,673 in the aftermath of World War II. 543 00:40:58,717 --> 00:41:02,242 You see the biggest shift in attitudes that you ever see. 544 00:41:02,285 --> 00:41:04,636 Bit different from what it used to be, 545 00:41:04,679 --> 00:41:06,159 I can tell ya. 546 00:41:07,029 --> 00:41:08,596 [PENSIVE PIANO MUSIC] 547 00:41:08,640 --> 00:41:11,512 ARCHIVE: There will be sickness and unemployment benefits, 548 00:41:11,556 --> 00:41:14,123 retirement pensions, industrial injuries benefits, 549 00:41:14,167 --> 00:41:16,909 guardians allowances, widows' benefits, maternity grants. 550 00:41:16,952 --> 00:41:19,477 WILLIAMS: It's a move towards creating a benefit system. 551 00:41:19,520 --> 00:41:21,957 We have the idea of sickness pay, holiday pay. 552 00:41:22,001 --> 00:41:24,177 In Britain they created the National Health Service -- 553 00:41:24,220 --> 00:41:26,875 free service from cradle to grave. 554 00:41:27,572 --> 00:41:29,530 [PENSIVE MUSIC] 555 00:41:34,709 --> 00:41:37,277 It's a move towards nationalization of industry, 556 00:41:37,320 --> 00:41:39,366 it's a move towards taxation of inheritance, 557 00:41:39,409 --> 00:41:41,324 taxation of property and wealth. 558 00:41:41,368 --> 00:41:44,110 I'm telling you, it works out fine. 559 00:41:44,153 --> 00:41:46,025 ARCHIVE: Television, with its promise of endless hours 560 00:41:46,068 --> 00:41:50,290 of enjoyment, entertainment, was part of the peacetime green. 561 00:41:50,333 --> 00:41:53,859 Television -- an unparalleled blending of private incentive 562 00:41:53,902 --> 00:41:56,514 and public service. 563 00:41:56,557 --> 00:41:57,863 WILLIAMS: In America in the '50s, 564 00:41:57,906 --> 00:41:59,604 you see capital restrained also. 565 00:41:59,647 --> 00:42:01,910 You have rent controls on apartments, 566 00:42:01,954 --> 00:42:03,738 you have limits on landowners. 567 00:42:03,782 --> 00:42:06,567 Capital can't just roam free, it can't just increase itself. 568 00:42:06,611 --> 00:42:09,788 Capital must be harnessed like some wild horse. 569 00:42:09,831 --> 00:42:12,399 TV: This is the land of the thoroughbred. 570 00:42:12,442 --> 00:42:15,315 WILLIAMS: There is a very clear vision that capital needs to be 571 00:42:15,358 --> 00:42:17,970 helping the people, that actually the whole principle 572 00:42:18,013 --> 00:42:20,538 in which the rich do whatever they want with their capital 573 00:42:20,581 --> 00:42:22,104 and that's good for the nation, 574 00:42:22,148 --> 00:42:24,585 well, that's being challenged across the world. 575 00:42:24,629 --> 00:42:27,240 ♪ I wish I had a castle in the sky ♪ 576 00:42:28,937 --> 00:42:32,767 ♪ A way up high where bluebirds like to fly ♪ 577 00:42:32,811 --> 00:42:36,379 The new vision is that the '50s is going to be the age in which 578 00:42:36,423 --> 00:42:37,859 everyone can have wealth. 579 00:42:37,903 --> 00:42:39,905 ♪ ...with a hundred rooms or more... ♪ 580 00:42:39,948 --> 00:42:41,515 ...some day... 581 00:42:41,559 --> 00:42:44,605 ♪ With stars for windows, clouds for rugs ♪ 582 00:42:44,649 --> 00:42:46,868 ♪ A rainbow for a door ♪ 583 00:42:46,912 --> 00:42:49,871 People who are born just after World War II 584 00:42:49,915 --> 00:42:53,440 had a life that no child before them could ever imagine. 585 00:42:53,483 --> 00:42:56,008 WOMAN: I just wish I had a decent kitchen. 586 00:42:56,051 --> 00:42:58,445 [BELLS RING, PEOPLE EXCLAIM] 587 00:43:00,055 --> 00:43:01,448 WILLIAMS: For the first time, 588 00:43:01,491 --> 00:43:04,407 hard work and study can get you to the top. 589 00:43:04,451 --> 00:43:06,453 [CHEERING, APPLAUSE] 590 00:43:08,063 --> 00:43:09,935 - Hello, Mrs. Thatcher. - Nice to see you. 591 00:43:09,978 --> 00:43:12,938 - Have a seat. - [CHEERING, APPLAUSE] 592 00:43:14,853 --> 00:43:18,030 My father left school at 12 or 13, 593 00:43:18,073 --> 00:43:19,814 and didn't have some of the chances 594 00:43:19,858 --> 00:43:22,600 that you and I have to go on to college. 595 00:43:22,643 --> 00:43:24,993 And I think you'll find when you're a parent, 596 00:43:25,037 --> 00:43:28,475 what you're always trying to do is to give your children 597 00:43:28,518 --> 00:43:30,912 the sort of chances you didn't have. 598 00:43:30,956 --> 00:43:33,654 Would you like to see a woman prime minister? 599 00:43:33,698 --> 00:43:36,265 I think it depends upon who the person is. 600 00:43:36,309 --> 00:43:39,268 I don't think that there will be a woman prime minister 601 00:43:39,312 --> 00:43:40,966 in my lifetime. 602 00:43:42,620 --> 00:43:44,317 WILLIAMS: What you see in Margaret Thatcher's life 603 00:43:44,360 --> 00:43:46,885 is incredible social mobility. 604 00:43:46,928 --> 00:43:49,017 An ordinary shopkeeper's daughter from the North, 605 00:43:49,061 --> 00:43:51,672 she went to grammar school, she went to Oxford, 606 00:43:51,716 --> 00:43:53,674 and became the first female prime minister, 607 00:43:53,718 --> 00:43:54,980 and, of course, wealthy. 608 00:43:55,023 --> 00:43:57,678 And that is simply through this new society 609 00:43:57,722 --> 00:44:01,639 in which social mobility was actually possible. 610 00:44:01,682 --> 00:44:04,816 And what you have is this real surge of the middle classes 611 00:44:04,859 --> 00:44:07,470 and the lower middle classes into positions of power. 612 00:44:07,514 --> 00:44:09,516 [PENSIVE MUSIC] 613 00:45:02,003 --> 00:45:03,613 And we'll have the kitchen right here, 614 00:45:03,657 --> 00:45:05,964 so we can see the children playing in the yard. 615 00:45:06,007 --> 00:45:08,096 Children?! How many you planning on? 616 00:45:08,140 --> 00:45:10,142 Not more than six, I hope. 617 00:45:11,621 --> 00:45:13,493 [CHILDREN CHATTER] 618 00:45:24,025 --> 00:45:26,114 [UNSETTLING PIANO MUSIC] 619 00:46:12,073 --> 00:46:14,554 [UNSETTLING MUSIC CONTINUES] 620 00:46:18,210 --> 00:46:20,516 [BIRDSONG, CHILDREN SHOUT] 621 00:46:23,737 --> 00:46:26,174 FUKUYAMA: The decades immediately after World War II 622 00:46:26,218 --> 00:46:28,220 were quite remarkable. 623 00:46:29,569 --> 00:46:32,180 There was a high degree of social consensus 624 00:46:32,224 --> 00:46:35,923 that really sprang out of the whole war effort. 625 00:46:37,620 --> 00:46:40,710 It was so-- You had a solidarity, 626 00:46:40,754 --> 00:46:44,714 but it was on the basis of a pretty stratified society. 627 00:46:46,281 --> 00:46:48,283 There were other forms of inequality that existed 628 00:46:48,327 --> 00:46:50,024 in that period. 629 00:46:50,068 --> 00:46:52,461 But that began to change after the civil rights movement 630 00:46:52,505 --> 00:46:55,987 in the 1960s and then all of the other social movements 631 00:46:56,030 --> 00:46:57,902 that occurred thereafter. 632 00:46:57,945 --> 00:46:59,947 - ♪ You better think - ♪ Think! 633 00:46:59,991 --> 00:47:01,862 ♪ Think about what you're trying to do to me ♪ 634 00:47:01,906 --> 00:47:05,170 The negro still is not free. 635 00:47:05,213 --> 00:47:06,780 ♪ ...let yourself be free 636 00:47:06,824 --> 00:47:09,087 - ♪ Oh, freedom - ♪ Freedom! 637 00:47:09,130 --> 00:47:11,132 - ♪ Some freedom - ♪ Freedom! 638 00:47:11,176 --> 00:47:13,047 ♪ Oh, freedom 639 00:47:13,091 --> 00:47:15,658 ♪ Yeah, freedom! 640 00:47:15,702 --> 00:47:17,704 FUKUYAMA: I think that, politically, 641 00:47:17,747 --> 00:47:20,968 having a broad middle class is quite important. 642 00:47:21,012 --> 00:47:22,970 It's part of what's called modernization 643 00:47:23,014 --> 00:47:25,059 through this idea that as your income rises, 644 00:47:25,103 --> 00:47:28,497 you develop a middle class that are better educated, 645 00:47:28,541 --> 00:47:32,762 and therefore they will demand a higher level of participation. 646 00:47:32,806 --> 00:47:35,461 - ♪ Oh, freedom - ♪ Freedom! 647 00:47:35,504 --> 00:47:37,289 - ♪ Some freedom - ♪ Freedom! 648 00:47:37,332 --> 00:47:40,596 ♪ Oh, freedom! Yeah, freedom! ♪ 649 00:47:40,640 --> 00:47:43,121 WOMEN CHANT: We have been victims for so long. 650 00:47:43,164 --> 00:47:45,210 - ♪ Freedom - ♪ Oh, freedom 651 00:47:45,253 --> 00:47:48,126 - ♪ Freedom - ♪ Give me some freedom 652 00:47:48,169 --> 00:47:51,216 ♪ Oh, freedom! 653 00:47:51,259 --> 00:47:54,480 - ♪ Whoo! To the ball, baby - ♪ To the ball ♪ 654 00:47:55,960 --> 00:47:59,224 Then that kind of all unravels in the '70s. 655 00:47:59,267 --> 00:48:03,054 ANCHOR: This is NBC Nightly News, Wednesday October 17th. 656 00:48:03,097 --> 00:48:05,839 Good evening. The Middle East war produced developments 657 00:48:05,883 --> 00:48:07,754 all over the world today. 658 00:48:07,797 --> 00:48:10,278 The oil-producing countries of the Arab world 659 00:48:10,322 --> 00:48:13,194 decided to use their oil as a political weapon. 660 00:48:13,238 --> 00:48:14,979 REPORTER: There was an announcement in Kuwait 661 00:48:15,022 --> 00:48:17,285 that prices for Arab oil were going up -- 662 00:48:17,329 --> 00:48:20,375 a huge increase voted in an overnight meeting 663 00:48:20,419 --> 00:48:23,988 until Israeli forces leave occupied Arab land. 664 00:48:24,031 --> 00:48:26,033 [TENSE MUSIC] 665 00:48:28,862 --> 00:48:32,344 NAIDU: This oil shock hits all of the advanced economies, 666 00:48:32,387 --> 00:48:34,999 and oil was an input into everything. 667 00:48:36,696 --> 00:48:38,916 REPORTER: It was announced today that gasless Sundays 668 00:48:38,959 --> 00:48:41,919 will go into effect as of next month. 669 00:48:41,962 --> 00:48:43,572 REPORTER: The price of foreign oil 670 00:48:43,616 --> 00:48:46,140 had jumped from $3 to $12 a barrel. 671 00:48:47,925 --> 00:48:51,667 NAIDU: Quadrupling the price of oil translated into this period 672 00:48:51,711 --> 00:48:54,279 where, like, prices started to increase 673 00:48:54,322 --> 00:48:57,456 and wages weren't keeping pace, 674 00:48:57,499 --> 00:48:59,893 but then unions and workers started demanding 675 00:48:59,937 --> 00:49:03,157 even higher wages to keep pace with prices, 676 00:49:03,201 --> 00:49:05,594 and then what firms would do is then increase prices 677 00:49:05,638 --> 00:49:08,902 even further to pass on the effects of wages, 678 00:49:08,946 --> 00:49:12,645 and so you got what's called a wage-price spiral. 679 00:49:12,688 --> 00:49:16,997 And so you had this period of high inflation and low growth, 680 00:49:17,041 --> 00:49:20,305 so that's why it got called stagflation. 681 00:49:21,610 --> 00:49:24,048 [OCEAN LAPS] 682 00:49:24,091 --> 00:49:26,093 [PLANE ENGINE WHINES] 683 00:49:28,748 --> 00:49:30,880 FOROOHAR: Globalization is starting to happen. 684 00:49:30,924 --> 00:49:34,188 The emerging markets are coming online in the world. 685 00:49:34,232 --> 00:49:35,755 Europe is back on its feet, 686 00:49:35,798 --> 00:49:37,757 Germany is becoming a producer again, 687 00:49:37,800 --> 00:49:40,412 a number of European nations are becoming more competitive. 688 00:49:40,455 --> 00:49:42,457 [DOLLY PARTON'S '9 TO 5'] 689 00:49:44,677 --> 00:49:46,331 FOROOHAR: The global picture is changing. 690 00:49:46,374 --> 00:49:48,594 American capital suddenly doesn't have 691 00:49:48,637 --> 00:49:50,117 the world to itself anymore. 692 00:49:50,161 --> 00:49:52,293 ♪ Tumble outta bed and I stumble to the kitchen ♪ 693 00:49:52,337 --> 00:49:54,730 ♪ Pour myself a cup of ambition... ♪ 694 00:49:54,774 --> 00:49:57,081 FOROOHAR: But another thing that's happening in the 1970s 695 00:49:57,124 --> 00:50:00,736 is you see a very kind of siloed, financialized 696 00:50:00,780 --> 00:50:03,870 way of thinking about how to run a corporate balance sheet -- 697 00:50:03,913 --> 00:50:06,133 cut costs, marshal your capital, 698 00:50:06,177 --> 00:50:08,701 treat labor as a cost, not an asset. 699 00:50:08,744 --> 00:50:10,964 ♪ Working 9 to 5 700 00:50:11,008 --> 00:50:13,445 ♪ What a way to make a living 701 00:50:13,488 --> 00:50:15,577 ♪ Barely gettin' by 702 00:50:15,621 --> 00:50:17,971 ♪ It's all takin' and no givin' ♪ 703 00:50:18,015 --> 00:50:19,973 ♪ They just use your mind 704 00:50:20,017 --> 00:50:22,323 ♪ And you never get the credit 705 00:50:22,367 --> 00:50:26,414 ♪ It's enough to drive you crazy if you let it ♪ 706 00:50:26,458 --> 00:50:28,503 FOROOHAR: Companies are not investing in their workers, 707 00:50:28,547 --> 00:50:29,983 they're not raising wages, 708 00:50:30,027 --> 00:50:32,203 so you start to really get that big 'X' 709 00:50:32,246 --> 00:50:36,120 where Wall Street's going here, Main Street's going down here. 710 00:50:36,163 --> 00:50:38,513 ♪ It's a rich man's game 711 00:50:38,557 --> 00:50:40,515 ♪ No matter what they call it 712 00:50:40,559 --> 00:50:45,564 ♪ And you spend your life puttin' money in his wallet ♪ 713 00:50:45,607 --> 00:50:47,000 ♪ 9 to 5... ♪ 714 00:50:47,044 --> 00:50:48,480 [MACHINERY WHIRRS] 715 00:50:50,177 --> 00:50:52,614 FOROOHAR: Germany and Japan took a different model -- 716 00:50:52,658 --> 00:50:55,095 a model in which workers sat on the boards of companies, 717 00:50:55,139 --> 00:50:57,358 had more of a say. 718 00:50:57,402 --> 00:50:59,665 This actually gave them a big advantage. 719 00:50:59,708 --> 00:51:01,319 They were able to use that expertise 720 00:51:01,362 --> 00:51:02,798 and increase their efficiency, 721 00:51:02,842 --> 00:51:05,540 and eventually gain market share from US companies. 722 00:51:05,584 --> 00:51:07,194 [SINISTER MUSIC] 723 00:51:07,238 --> 00:51:10,806 ARCHIVE: When it started, America was unprepared. 724 00:51:10,850 --> 00:51:12,808 From across the ocean, they came -- 725 00:51:12,852 --> 00:51:17,335 little cars determined to change the buying habits of a nation. 726 00:51:17,378 --> 00:51:20,164 It's a great-looking car. What do you call it? 727 00:51:20,207 --> 00:51:22,470 - Isuzu. - Gesundheit. 728 00:51:22,514 --> 00:51:24,472 Road-hugging, heart-pounding, 729 00:51:24,516 --> 00:51:26,605 hood-soaring, deck-sloping... 730 00:51:26,648 --> 00:51:28,998 ♪ We are... 731 00:51:29,042 --> 00:51:31,871 ♪ Cadillacs drive Subaru 732 00:51:31,914 --> 00:51:34,091 MAN: Reagan for president. 733 00:51:35,483 --> 00:51:37,920 Japanese production of automobiles is almost 734 00:51:37,964 --> 00:51:41,881 twice as great per worker as it is in America. 735 00:51:41,924 --> 00:51:44,275 We were once the greatest producer of automobiles, 736 00:51:44,318 --> 00:51:48,061 producing more than all the rest of the world combined. 737 00:51:48,105 --> 00:51:49,802 That is no longer true. 738 00:52:06,123 --> 00:52:08,647 - [PEOPLE CHANT] - Thank you very much. 739 00:52:08,690 --> 00:52:10,736 [HORN SOUNDS] 740 00:52:10,779 --> 00:52:14,043 Can anyone look at our reduced standing in the world today 741 00:52:14,087 --> 00:52:17,438 and say, "Let's have four more years of this"? 742 00:52:17,482 --> 00:52:20,267 CROWD: No! 743 00:52:20,311 --> 00:52:23,662 For those who've abandoned hope, we'll restore hope 744 00:52:23,705 --> 00:52:26,317 and we'll welcome them into a great national crusade 745 00:52:26,360 --> 00:52:30,669 - to make America great again. - [CHEERING, APPLAUSE] 746 00:53:10,883 --> 00:53:12,841 [CROWDS JEER] 747 00:53:12,885 --> 00:53:15,235 BRITISH REPORTER: Here comes the Prime Ministerial Rover, 748 00:53:15,279 --> 00:53:17,324 bearing now Mrs. Thatcher. 749 00:53:17,368 --> 00:53:19,065 AMERICAN REPORTER: Enter Margaret Thatcher, 750 00:53:19,108 --> 00:53:22,199 a grocer's daughter educated among the privileged classes 751 00:53:22,242 --> 00:53:23,504 at Oxford University. 752 00:53:23,548 --> 00:53:26,072 [OFFICERS SPEAK INDISTINCTLY] 753 00:53:26,115 --> 00:53:29,249 There is now work to be done. 754 00:53:29,293 --> 00:53:31,599 In deciding that, actually, what we need to do 755 00:53:31,643 --> 00:53:36,125 is increase the value of assets in order to increase investment, 756 00:53:36,169 --> 00:53:38,650 some of the thinking behind what would happen 757 00:53:38,693 --> 00:53:42,001 when you let capital free, 758 00:53:42,044 --> 00:53:45,091 you had to suppress the power of labor. 759 00:53:46,353 --> 00:53:49,008 [PENSIVE MUSIC] 760 00:53:49,051 --> 00:53:52,272 REPORTER: This 12-foot-high pile is part of two weeks' rubbish 761 00:53:52,316 --> 00:53:54,535 piled outside the local refuse depot. 762 00:53:54,579 --> 00:53:55,928 Like others in Central London, 763 00:53:55,971 --> 00:53:57,669 it's been closed now for two weeks 764 00:53:57,712 --> 00:53:59,453 because of the dustmen's indefinite strike. 765 00:53:59,497 --> 00:54:01,455 REPORTER: The teachers' union are today putting forward 766 00:54:01,499 --> 00:54:04,893 a pay claim. 33,000 school children are out of school 767 00:54:04,937 --> 00:54:07,244 in the worst-affected London borough of Haringey. 768 00:54:07,287 --> 00:54:08,506 REPORTER: Cancelled operations 769 00:54:08,549 --> 00:54:10,595 meant empty beds up on the wards, 770 00:54:10,638 --> 00:54:12,988 which would otherwise have been used. 771 00:54:13,032 --> 00:54:14,816 SHAHEEN: You have to remember, at those times, 772 00:54:14,860 --> 00:54:19,038 there were issues about strikes; the public were upset about 773 00:54:19,081 --> 00:54:23,042 the way some labor unions were acting in that time. 774 00:54:23,085 --> 00:54:25,566 I'm going to boil everything because the sewage men, 775 00:54:25,610 --> 00:54:28,134 I understand, are still on strike, 776 00:54:28,177 --> 00:54:32,094 and so it'll be polluted, so you can get typhoid, 777 00:54:32,138 --> 00:54:33,966 can't you? 778 00:54:34,009 --> 00:54:36,055 SHAHEEN: There was a mandate to do something about 779 00:54:36,098 --> 00:54:38,318 the power of labor against capital. 780 00:54:38,362 --> 00:54:41,147 And it certainly is a tricky job trying to get that right. 781 00:54:41,190 --> 00:54:44,846 This government has rolled back the frontiers of the state 782 00:54:44,890 --> 00:54:48,154 and will roll them back still further. 783 00:54:48,197 --> 00:54:50,896 Millions have already become shareholders 784 00:54:50,939 --> 00:54:55,161 in British Gas, British Airways, British airports. 785 00:54:59,600 --> 00:55:03,169 [INDISTINCT RADIO CHATTER, ENGINES WHINE] 786 00:55:05,911 --> 00:55:07,260 WOMAN: Attention, all passengers. 787 00:55:07,304 --> 00:55:10,916 Flight 307 is cancelled until further notice. 788 00:55:10,959 --> 00:55:13,135 NAIDU: This incredible hostility to unions 789 00:55:13,179 --> 00:55:16,182 starts in the '80s and is really crystallized 790 00:55:16,225 --> 00:55:21,100 when Reagan fires all these air traffic controllers. 791 00:55:21,143 --> 00:55:23,494 REAGAN: I must tell those who fail to report for duty 792 00:55:23,537 --> 00:55:28,237 this morning, if they do not report for work within 48 hours, 793 00:55:28,281 --> 00:55:33,025 they have forfeited their jobs and will be terminated. 794 00:55:33,068 --> 00:55:34,722 End of statement. 795 00:55:34,766 --> 00:55:37,334 NAIDU: That's kind of seen as like a greenlight 796 00:55:37,377 --> 00:55:39,161 to a whole industry. 797 00:55:39,205 --> 00:55:40,989 [MICROPHONE FEEDBACK] 798 00:55:41,033 --> 00:55:43,905 Good evening. This afternoon, President Reagan started firing 799 00:55:43,949 --> 00:55:46,778 the strikers, and the government claimed it was ready to rebuild 800 00:55:46,821 --> 00:55:48,606 the whole system without them. 801 00:55:48,649 --> 00:55:50,651 [MEN SHOUT] 802 00:55:53,350 --> 00:55:55,090 By this evening, federal judges had sent 803 00:55:55,134 --> 00:55:57,658 five local union leaders to jail. 804 00:55:57,702 --> 00:55:59,704 [PENSIVE MUSIC] 805 00:56:04,926 --> 00:56:07,538 SHAHEEN: What we've seen over time -- and this is fundamental 806 00:56:07,581 --> 00:56:10,758 to understanding why inequality has worsened -- 807 00:56:10,802 --> 00:56:14,806 is that the share of all the money that's made in the economy 808 00:56:14,849 --> 00:56:17,635 is going less and less to the workers, so that is declining -- 809 00:56:17,678 --> 00:56:19,985 the wage share -- 810 00:56:20,028 --> 00:56:23,510 and the profit share, essentially what those that own 811 00:56:23,554 --> 00:56:26,252 the capital will get, is growing. 812 00:56:28,515 --> 00:56:32,476 And that is essentially about power. 813 00:56:32,519 --> 00:56:34,565 [MICROPHONE FEEDBACK] 814 00:56:34,608 --> 00:56:37,437 Well, I, uh -- I appreciate the opportunity you're giving me, 815 00:56:37,481 --> 00:56:40,919 Mr. Cromwell, as the single largest shareholder 816 00:56:40,962 --> 00:56:43,051 in Teldar Paper, to speak. 817 00:56:45,532 --> 00:56:48,405 America has become a second-rate power. 818 00:56:49,667 --> 00:56:51,277 Now, in the days of the free market, 819 00:56:51,320 --> 00:56:54,454 when our country was a top industrial power, 820 00:56:54,498 --> 00:56:58,327 there was accountability to the stockholder. 821 00:56:58,371 --> 00:56:59,894 The Carnegies, the Mellons, 822 00:56:59,938 --> 00:57:02,636 the men that built this great industrial empire, 823 00:57:02,680 --> 00:57:06,423 made sure of it because it was their money at stake. 824 00:57:07,772 --> 00:57:09,861 The point is, ladies and gentlemen, 825 00:57:09,904 --> 00:57:14,039 that greed -- for lack of a better word -- 826 00:57:14,082 --> 00:57:15,910 is good. 827 00:57:15,954 --> 00:57:17,782 Greed is right. 828 00:57:17,825 --> 00:57:19,914 Greed works. 829 00:57:19,958 --> 00:57:21,655 And greed -- 830 00:57:22,526 --> 00:57:24,528 you mark my words -- 831 00:57:24,571 --> 00:57:26,965 will not only save Teldar Paper, 832 00:57:27,008 --> 00:57:31,056 but that other malfunctioning corporation called the USA. 833 00:57:31,099 --> 00:57:33,667 - Thank you very much. - [APPLAUSE] 834 00:57:33,711 --> 00:57:36,017 TETT: When Gordon Gekko was seen on film saying, 835 00:57:36,061 --> 00:57:40,631 "Greed is good," that was intended to be a howl of protest 836 00:57:40,674 --> 00:57:42,371 against the system. 837 00:57:42,415 --> 00:57:45,374 But such had the cultural fabric changed, 838 00:57:45,418 --> 00:57:47,899 that actually for some people coming through universities 839 00:57:47,942 --> 00:57:50,031 applying to join investment banks, 840 00:57:50,075 --> 00:57:52,860 that phrase "Greed is good" actually became a license 841 00:57:52,904 --> 00:57:54,775 to pursue riches. 842 00:57:54,819 --> 00:57:57,778 [KIM WILDE'S 'KIDS IN AMERICA'] 843 00:58:03,784 --> 00:58:06,657 TETT: The era of the yuppie came to rule. 844 00:58:06,700 --> 00:58:09,573 ♪ Friday night and everyone's moving ♪ 845 00:58:09,616 --> 00:58:14,186 ♪ I can feel the heat, but it's soothing, heading down ♪ 846 00:58:14,229 --> 00:58:16,667 TETT: It began to become very cool to be an entrepreneur, 847 00:58:16,710 --> 00:58:18,495 to be riding that boom, 848 00:58:18,538 --> 00:58:22,673 and the idea of arguing for high taxes and redistribution 849 00:58:22,716 --> 00:58:24,892 began to seem very out of fashion. 850 00:58:24,936 --> 00:58:27,721 - ♪ We're the kids in America - ♪ Whoa 851 00:58:27,765 --> 00:58:30,637 - ♪ We're the kids in America - ♪ Whoa 852 00:58:30,681 --> 00:58:34,032 ♪ Everybody live for the music-go-round ♪ 853 00:58:36,513 --> 00:58:39,298 The new mantra of deregulation took hold, 854 00:58:39,341 --> 00:58:43,345 and so financial services were deregulated dramatically, 855 00:58:43,389 --> 00:58:45,260 bankers began to get paid a lot more, 856 00:58:45,304 --> 00:58:46,914 and then market forces were unleashed, 857 00:58:46,958 --> 00:58:50,222 which made capitalists a lot richer. 858 00:58:51,615 --> 00:58:53,617 ♪ Hot-shot... ♪ 859 00:58:54,618 --> 00:58:56,620 [MUSIC FADES] 860 00:58:58,447 --> 00:59:00,449 [WHOOSHING] 861 00:59:02,103 --> 00:59:05,585 STIGLITZ: The big reforms of the Reagan-Thatcher era 862 00:59:05,629 --> 00:59:09,937 were lower the tax rates on the rich 863 00:59:09,981 --> 00:59:13,811 on the assumption it would trickle down. Didn't happen. 864 00:59:13,854 --> 00:59:15,116 [CAR HORN BLARES] 865 00:59:15,160 --> 00:59:17,466 When they adopted these kinds of policies, 866 00:59:17,510 --> 00:59:21,427 it was very clear that they would increase inequality. 867 00:59:21,470 --> 00:59:24,952 The promise was that the pie would be bigger, 868 00:59:24,996 --> 00:59:28,956 you would be getting a smaller percentage 869 00:59:29,000 --> 00:59:32,830 of a bigger pie, and your slice would get bigger. 870 00:59:34,222 --> 00:59:36,224 So in some sense, 871 00:59:37,661 --> 00:59:39,837 there was no surprise 872 00:59:39,880 --> 00:59:42,013 that there was a growth in inequality. 873 00:59:42,056 --> 00:59:45,016 But the magnitude of the increase in inequality 874 00:59:45,059 --> 00:59:46,757 was much larger. 875 00:59:46,800 --> 00:59:50,238 When we look at the numbers, we can see it very vividly. 876 00:59:50,282 --> 00:59:54,852 The bottom 90% have experienced near-stagnation. 877 00:59:54,895 --> 00:59:59,160 Most of the growth has gone to the top 10%. 878 00:59:59,204 --> 01:00:03,338 Median income for a typical American household is roughly 879 01:00:03,382 --> 01:00:05,993 at the level it was a quarter century ago. 880 01:00:06,037 --> 01:00:09,518 Real wages, adjusted for inflation, at the bottom 881 01:00:09,562 --> 01:00:12,652 are at the level they were 60 years ago. 882 01:00:16,438 --> 01:00:19,920 In fact, life expectancy has been declining. 883 01:00:21,618 --> 01:00:25,099 These are dramatic statistics that shows the economy 884 01:00:25,143 --> 01:00:28,494 has not been working for most Americans. 885 01:00:28,537 --> 01:00:30,539 [EDGY, TENSE MUSIC] 886 01:00:37,111 --> 01:00:40,375 By the 1990s, American banks really became the exporters 887 01:00:40,419 --> 01:00:42,813 of American capitalism, and they went everywhere -- 888 01:00:42,856 --> 01:00:45,467 they went to Europe, they went to Asia. 889 01:00:47,121 --> 01:00:51,082 And everyone was sold our version of a trickle-down, 890 01:00:51,125 --> 01:00:54,389 laissez-faire deregulate capitalism. 891 01:00:56,087 --> 01:00:58,089 [JARRING TECHNO MUSIC] 892 01:01:00,874 --> 01:01:04,835 Life seemed to get better in the 1990s, 893 01:01:04,878 --> 01:01:07,620 because the globalization of the system 894 01:01:07,664 --> 01:01:11,668 made things for ordinary people for a while cheaper, 895 01:01:11,711 --> 01:01:14,018 but then on top of that, you get credit. 896 01:01:14,061 --> 01:01:16,063 [EDGY, TECHNO MUSIC] 897 01:01:17,412 --> 01:01:19,458 When the credit boom took off, 898 01:01:19,501 --> 01:01:21,982 suddenly ordinary people could get credit. 899 01:01:22,026 --> 01:01:23,723 MAN: Master the moment. 900 01:01:23,767 --> 01:01:27,422 Suddenly, extraordinarily poor people could get credit. 901 01:01:27,466 --> 01:01:29,511 - You can apply... - ...right over the phone. 902 01:01:29,555 --> 01:01:32,427 People with terrible credit histories could get credit. 903 01:01:32,471 --> 01:01:34,342 MAN: There is absolutely no risk. 904 01:01:34,386 --> 01:01:37,650 People who in no way should be given a mortgage 905 01:01:37,694 --> 01:01:40,522 could get a mortgage. 906 01:01:40,566 --> 01:01:43,482 And the investment banks created ever more exotic 907 01:01:43,525 --> 01:01:48,226 credit derivatives -- ways of parceling up your bad debt 908 01:01:48,269 --> 01:01:50,794 and disguising its badness. 909 01:01:50,837 --> 01:01:54,972 That's what kept the system going for as long as it did. 910 01:01:55,015 --> 01:01:57,017 And 2008 was where that blew up. 911 01:01:58,671 --> 01:02:00,978 Wall Street in panic mode this morning. 912 01:02:01,021 --> 01:02:02,501 How did this happen? 913 01:02:02,544 --> 01:02:05,112 22% of homeowners are underwater on their mortgage... 914 01:02:05,156 --> 01:02:06,505 Millions of American homeowners... 915 01:02:06,548 --> 01:02:08,202 - Homeowners defaulting... - Greed. 916 01:02:08,246 --> 01:02:10,770 The essence of the American Dream could be threatened. 917 01:02:10,814 --> 01:02:13,468 - Sub-prime lending... - Higher interest rates... 918 01:02:13,512 --> 01:02:16,210 Let's see here, uh, balloon payment, 919 01:02:16,254 --> 01:02:19,039 37% interest compounded every minute, 920 01:02:19,083 --> 01:02:21,259 not understanding the contract fee, 921 01:02:21,302 --> 01:02:23,522 da, da, ba, da, ba, ba-da, bow. 922 01:02:23,565 --> 01:02:25,219 And here's your new monthly payment. 923 01:02:25,263 --> 01:02:26,525 [BOTH GASP] 924 01:02:26,568 --> 01:02:28,396 Listen, you, when you gave me that money, 925 01:02:28,440 --> 01:02:31,399 you said I wouldn't have to repay it till the future. 926 01:02:31,443 --> 01:02:34,402 This isn't the future! It's the lousy, stinkin' now! 927 01:02:34,446 --> 01:02:39,538 Now, calm down. This country takes care of its middle class. 928 01:02:39,581 --> 01:02:41,583 [SOMBER MUSIC] 929 01:02:43,194 --> 01:02:44,848 Ah, don't be sore at the banks. 930 01:02:44,891 --> 01:02:48,590 Hell, we fired our CEO and he barely got out with $50 million. 931 01:02:48,634 --> 01:02:50,288 [BELL RINGS] 932 01:02:50,331 --> 01:02:52,420 REPORTER: Banks are afraid to lend money to each other. 933 01:02:52,464 --> 01:02:54,379 We're seeing a freezing of the credit market. 934 01:02:54,422 --> 01:02:55,641 - ...credit markets. - ...credit markets. 935 01:02:55,684 --> 01:02:57,121 REPORTER: The fear is rising. 936 01:02:57,164 --> 01:03:00,689 The fear was, and I think it was a well-founded fear, 937 01:03:00,733 --> 01:03:03,910 that the availability of credit would disappear, 938 01:03:03,954 --> 01:03:06,130 and perhaps our ability to even transact, 939 01:03:06,173 --> 01:03:08,349 to even be able to access cash to make payments, 940 01:03:08,393 --> 01:03:10,221 use a credit card, use a debit card. 941 01:03:10,264 --> 01:03:12,832 Perhaps that would break down also. 942 01:03:12,876 --> 01:03:15,356 REPORTER: Worst week since the crash of 1929. 943 01:03:15,400 --> 01:03:17,141 - ...global sell-off. - ...the Dow tumbled... 944 01:03:17,184 --> 01:03:19,621 - ...hoarding cash. - Japan down nearly 10%. 945 01:03:19,665 --> 01:03:23,364 REPORTER: The British government blamed American bankers. 946 01:03:23,408 --> 01:03:25,366 When it starts to unravel, then you start to worry -- 947 01:03:25,410 --> 01:03:27,847 how broadly will this spread around the world 948 01:03:27,891 --> 01:03:30,763 and are we on the verge of another Great Depression? 949 01:03:30,807 --> 01:03:34,854 American taxpayers woke up this morning to learn their money 950 01:03:34,898 --> 01:03:36,334 makes up most of a... 951 01:03:36,377 --> 01:03:38,771 Big package, because it was a big problem. 952 01:03:38,815 --> 01:03:40,468 Too big to fail. 953 01:03:40,512 --> 01:03:44,472 REPORTER: The Fed loaned the banks some $7.7 trillion. 954 01:03:44,516 --> 01:03:47,214 Global markets soared at the news of the US rescue plan. 955 01:03:47,258 --> 01:03:50,391 With the bail-out news, the stock rebounded nearly 60%. 956 01:03:50,435 --> 01:03:52,785 ...Hong Kong more than 8%. London's FTSE... 957 01:03:52,829 --> 01:03:54,221 REPORTER: Stokes rose 15% in one hour -- 958 01:03:54,265 --> 01:03:55,875 the largest single bounce in FTSE history. 959 01:03:55,919 --> 01:03:58,051 Those companies came to us and said, 960 01:03:58,095 --> 01:04:00,010 "Uh, if you don't give us $700 billion, 961 01:04:00,053 --> 01:04:01,750 everything you love and hold dear in this world 962 01:04:01,794 --> 01:04:03,927 - will turn to [BLEEP]." - [LAUGHTER] 963 01:04:03,970 --> 01:04:07,931 And in return for this in no way ransom money... 964 01:04:07,974 --> 01:04:09,410 [LAUGHTER] 965 01:04:09,454 --> 01:04:12,370 ...the American people would now be the proud owner 966 01:04:12,413 --> 01:04:14,502 of these bales of [BLEEP]. 967 01:04:16,983 --> 01:04:20,639 JOHNSON: The collapse didn't occur. The system was preserved 968 01:04:20,682 --> 01:04:23,903 and the opportunity to substantially reform the system 969 01:04:23,947 --> 01:04:26,340 was set aside. The stock market went down sharply, 970 01:04:26,384 --> 01:04:30,431 and then it came back up sharply as a result of these measures. 971 01:04:30,475 --> 01:04:32,912 In addition, wealthy people, rich people, 972 01:04:32,956 --> 01:04:34,827 have a lot of exposure to the stock market, 973 01:04:34,871 --> 01:04:37,264 so they kept their jobs, they kept their bonuses, 974 01:04:37,308 --> 01:04:39,005 the businesses they were in were not 975 01:04:39,049 --> 01:04:42,313 substantially disrupted, and they made more money 976 01:04:42,356 --> 01:04:43,967 through stock appreciation 977 01:04:44,010 --> 01:04:45,969 and through dividends and through expected dividends 978 01:04:46,012 --> 01:04:48,362 than they had in the last couple of years. 979 01:04:48,406 --> 01:04:50,364 REPORTER: Bloomberg estimates the banks made 980 01:04:50,408 --> 01:04:53,193 a $13 billion profit on the spread. 981 01:04:53,237 --> 01:04:56,022 REPORTER: 73 executives from the unit that engineered 982 01:04:56,066 --> 01:04:59,417 the company's downfall all just got bonus checks 983 01:04:59,460 --> 01:05:03,595 - worth a million or more. - ...$1.6 billion in bonuses. 984 01:05:04,988 --> 01:05:07,555 JOHNSON: Wall Street and the views of Wall Street 985 01:05:07,599 --> 01:05:09,601 had taken over policy. 986 01:05:11,211 --> 01:05:13,213 That's the quiet coup. 987 01:05:13,953 --> 01:05:15,912 [TENSE MUSIC] 988 01:05:20,438 --> 01:05:23,571 FUKUYAMA: Democracies in general are susceptible to this 989 01:05:23,615 --> 01:05:25,617 capture by elites. 990 01:05:27,880 --> 01:05:31,971 And unless the democracy is renewed by the non-elites 991 01:05:32,015 --> 01:05:34,234 every now and then rising up, 992 01:05:34,278 --> 01:05:37,977 the democracy will continue to move in this direction 993 01:05:38,021 --> 01:05:43,504 where power and wealth are more and more concentrated. 994 01:05:43,548 --> 01:05:47,508 All across the world, you now have this layer of oligarchs 995 01:05:47,552 --> 01:05:51,469 that use their money to buy political influence. 996 01:05:52,383 --> 01:05:54,385 [POP! LAUGHTER] 997 01:05:55,081 --> 01:05:57,083 [SIREN WAILS] 998 01:06:22,500 --> 01:06:24,676 [DREAMY, WHIMSICAL MUSIC] 999 01:06:34,555 --> 01:06:37,167 MAN: Rationally speaking, it would make sense that 1000 01:06:37,210 --> 01:06:39,865 the more of something you have, maybe the more inclined 1001 01:06:39,908 --> 01:06:42,781 you would be to share it with other people. 1002 01:06:42,824 --> 01:06:46,132 But that's not what our research and what a lot of other research 1003 01:06:46,176 --> 01:06:48,265 seems to find. 1004 01:06:48,308 --> 01:06:51,964 We brought strangers into the lab in pairs of two; 1005 01:06:52,008 --> 01:06:53,748 with a flip of a coin determined 1006 01:06:53,792 --> 01:06:55,359 who was going to be a rich player 1007 01:06:55,402 --> 01:06:57,926 and was going to be a poor player. 1008 01:06:57,970 --> 01:06:59,841 [INTRIGUING MUSIC] 1009 01:07:01,539 --> 01:07:05,151 The rich player got two times as much money to play the game, 1010 01:07:05,195 --> 01:07:07,414 they got to roll both dice instead of one, 1011 01:07:07,458 --> 01:07:09,503 so they got to move around the board a lot quicker, 1012 01:07:09,547 --> 01:07:12,028 and that mattered because when they moved around the board 1013 01:07:12,071 --> 01:07:13,681 and passed 'Go,' 1014 01:07:13,725 --> 01:07:17,163 they would collect $200, whereas the poor person, 1015 01:07:17,207 --> 01:07:19,948 they'd collect $100. 1016 01:07:19,992 --> 01:07:22,081 The inequality's almost immediately apparent 1017 01:07:22,125 --> 01:07:23,909 to the players. How couldn't it be? 1018 01:07:23,952 --> 01:07:27,782 But within a couple of minutes, dynamics start to crystallize. 1019 01:07:33,571 --> 01:07:36,748 And the rich player started to behave a little differently. 1020 01:07:36,791 --> 01:07:38,532 Rich players become more dominant. 1021 01:07:40,099 --> 01:07:43,233 Rich players eat more pretzels. 1022 01:07:43,276 --> 01:07:48,151 When moving their piece around the board, they become louder. 1023 01:07:48,194 --> 01:07:51,980 They start smacking the board with their piece. 1024 01:07:53,808 --> 01:07:56,376 And the rich players were significantly ruder. 1025 01:07:58,596 --> 01:08:02,121 They were far more likely to showcase and talk about 1026 01:08:02,165 --> 01:08:05,081 how well they're doing 1027 01:08:05,124 --> 01:08:09,041 and to belittle the plight of those poor players. 1028 01:08:10,956 --> 01:08:14,002 So they became less compassionate. 1029 01:08:14,046 --> 01:08:17,005 These are patterns that we're observing consistently over 1030 01:08:17,049 --> 01:08:18,833 hundreds of different individuals. 1031 01:08:20,835 --> 01:08:24,361 You see people who are winning because of the flip of a coin 1032 01:08:24,404 --> 01:08:27,277 start to act as if they actually deserve to win. 1033 01:08:30,497 --> 01:08:34,806 One of the questions we ask is "Why did you win the game?" 1034 01:08:34,849 --> 01:08:36,938 And you can imagine the rich players would say, 1035 01:08:36,982 --> 01:08:38,940 "Well, I won the game because of that flip of the coin 1036 01:08:38,984 --> 01:08:42,292 and I had two times the advantage." 1037 01:08:42,335 --> 01:08:46,600 But none -- not one -- of the rich players 1038 01:08:46,644 --> 01:08:50,909 attributed their inevitable success in this game 1039 01:08:50,952 --> 01:08:56,132 to that force of luck that randomly got them 1040 01:08:56,175 --> 01:08:59,787 that privileged position in the first place. 1041 01:09:01,354 --> 01:09:04,836 And when we watch patterns of human interactions, 1042 01:09:04,879 --> 01:09:08,579 people who feel entitled and deserving of their own success 1043 01:09:08,622 --> 01:09:11,886 are more willing to privilege their own interests 1044 01:09:11,930 --> 01:09:13,714 above the interests of other people 1045 01:09:13,758 --> 01:09:16,195 and often engage in ways that undermine 1046 01:09:16,239 --> 01:09:19,894 other people's welfare so that they can get ahead. 1047 01:09:19,938 --> 01:09:24,160 And that's a fairly pernicious social consequence. 1048 01:09:25,900 --> 01:09:28,686 But it's not about people who are rich, 1049 01:09:28,729 --> 01:09:32,342 but rather that the experience of being relatively better off 1050 01:09:32,385 --> 01:09:35,432 than someone seems to affect everyone, 1051 01:09:35,475 --> 01:09:38,174 or would affect everyone, in the same way. 1052 01:09:39,479 --> 01:09:41,220 Yes, we won the lottery! 1053 01:09:41,264 --> 01:09:43,657 [LIGHT-HEARTED BRASS MUSIC] 1054 01:09:45,093 --> 01:09:47,052 [METAL CLUNKING] 1055 01:09:47,095 --> 01:09:49,881 Peter, my God, what the hell are you wearing?! 1056 01:09:49,924 --> 01:09:53,101 It's a solid gold tuxedo, Lois. I had to fight three rappers 1057 01:09:53,145 --> 01:09:55,060 down at the Nonsense Store for this. 1058 01:09:55,103 --> 01:09:56,931 Look, Peter, this is not who we are. 1059 01:09:56,975 --> 01:09:58,977 I'm worried the money is changing this family, 1060 01:09:59,020 --> 01:10:00,674 and not the way you hoped. 1061 01:10:00,718 --> 01:10:03,024 Well, I was hoping it would make you shut up, so you're right. 1062 01:10:03,068 --> 01:10:06,114 PIFF: When we, in experiments, get actually poor people 1063 01:10:06,158 --> 01:10:08,508 or we make poor people feel rich, 1064 01:10:08,552 --> 01:10:10,641 again, same pattern of results. 1065 01:10:10,684 --> 01:10:12,120 Lois, don't you understand? 1066 01:10:12,164 --> 01:10:14,122 We don't got any of our old problems anymore. 1067 01:10:14,166 --> 01:10:15,733 We don't have to worry about paying bills, 1068 01:10:15,776 --> 01:10:18,170 we don't have to worry about saving dough. 1069 01:10:18,214 --> 01:10:20,564 All we gotta do is enjoy ourselves. 1070 01:10:20,607 --> 01:10:22,522 Interested? 1071 01:10:22,566 --> 01:10:24,220 [GASPS] 1072 01:10:24,263 --> 01:10:26,309 Oh my God! 1073 01:10:28,006 --> 01:10:31,139 Peter, it's beautiful. Is it a blood diamond? 1074 01:10:31,183 --> 01:10:32,924 Ah, the bloodiest. 1075 01:10:32,967 --> 01:10:35,318 The two kids who found it were forced to murder each other. 1076 01:10:35,361 --> 01:10:37,320 Oh, Peter, I love it! 1077 01:10:37,363 --> 01:10:40,888 We translate perceptions and experiences 1078 01:10:40,932 --> 01:10:43,935 of being better off than others materially 1079 01:10:43,978 --> 01:10:46,764 to being better than others. 1080 01:10:46,807 --> 01:10:49,114 The mind makes that translation, it seems. 1081 01:10:49,157 --> 01:10:51,159 [ENGINE ROARS] 1082 01:10:55,990 --> 01:10:57,992 [INTRIGUING MUSIC] 1083 01:11:04,521 --> 01:11:07,088 MASON: Once you get people whose entire life is lived 1084 01:11:07,132 --> 01:11:10,396 on a kind of plane, you know, in First Class, 1085 01:11:10,440 --> 01:11:12,877 in the bubble of the security system, 1086 01:11:12,920 --> 01:11:15,314 and your villa in three or four different countries 1087 01:11:15,358 --> 01:11:18,404 you can move to if things get a bit unpleasant, 1088 01:11:18,448 --> 01:11:20,754 what happens to taxation? 1089 01:11:20,798 --> 01:11:25,019 What happens is large amounts of wealth are moved offshore. 1090 01:11:25,063 --> 01:11:27,065 [INTRIGUING MUSIC] 1091 01:11:29,807 --> 01:11:33,593 For decades, individuals and companies have moved 1092 01:11:33,637 --> 01:11:37,815 their legal selves in order to avoid paying tax 1093 01:11:37,858 --> 01:11:40,992 that benefits the people who work for them. 1094 01:11:42,646 --> 01:11:45,257 So that when you come out of the HQ of one of these 1095 01:11:45,301 --> 01:11:48,042 giant trendy IT companies, 1096 01:11:48,086 --> 01:11:50,828 you fall over, you hit your head, 1097 01:11:50,871 --> 01:11:53,352 and you're lying on the pavement in a pool of blood, 1098 01:11:53,396 --> 01:11:55,659 an ambulance arrives 1099 01:11:55,702 --> 01:11:58,444 that has not been paid for in any way, shape or form 1100 01:11:58,488 --> 01:12:00,533 by the taxes of that company. 1101 01:12:00,577 --> 01:12:02,579 [MONITOR BEEPS, OXYGEN PUFFS] 1102 01:12:02,622 --> 01:12:05,756 That's a very new system in capitalism. 1103 01:12:07,627 --> 01:12:10,238 And it is unsustainable 1104 01:12:10,282 --> 01:12:12,415 because to make it work, 1105 01:12:12,458 --> 01:12:15,548 the state must have access via taxation 1106 01:12:15,592 --> 01:12:18,072 to the incomes of the rich. 1107 01:12:18,116 --> 01:12:20,031 [BABY CRIES] 1108 01:12:20,074 --> 01:12:21,902 [RESOUNDING BOOM] 1109 01:12:21,946 --> 01:12:24,078 REPORTER: The EU has ordered the Irish government 1110 01:12:24,122 --> 01:12:28,039 to recover almost $15 billion of unpaid taxes from Apple. 1111 01:12:28,082 --> 01:12:30,824 REPORTER: $15 billion is more than the four years 1112 01:12:30,868 --> 01:12:33,958 of annual austerity cuts imposed by the Irish government. 1113 01:12:34,001 --> 01:12:36,700 WOMAN: Amazon's tax benefits are illegal. 1114 01:12:36,743 --> 01:12:39,224 REPORTER: Facebook paid less UK corporation tax 1115 01:12:39,267 --> 01:12:40,704 than your average teacher. 1116 01:12:40,747 --> 01:12:43,054 90,000 come from zero corporation tax. 1117 01:12:43,097 --> 01:12:45,186 - Scrutinize... - ...the rich avoiding taxes. 1118 01:12:45,230 --> 01:12:46,753 [VOICES OVERLAP] Google, Microsoft... 1119 01:12:46,797 --> 01:12:48,059 - McDonald's... - Facebook... 1120 01:12:49,974 --> 01:12:52,933 [OMINOUS WHOOSHING] 1121 01:12:52,977 --> 01:12:55,327 FOROOHAR: It just works much better for the holders 1122 01:12:55,371 --> 01:13:00,071 of capital than it does for people on the ground. 1123 01:13:00,114 --> 01:13:02,943 In particular, the giant cash-rich tech firms 1124 01:13:02,987 --> 01:13:06,251 can put people and money wherever they want to put them. 1125 01:13:06,294 --> 01:13:11,038 They just fly 35,000 feet above national concerns. 1126 01:13:11,082 --> 01:13:14,433 They create far fewer jobs than big industrial companies 1127 01:13:14,477 --> 01:13:18,176 of the past, yet they make vastly more money. 1128 01:13:18,219 --> 01:13:20,874 [ATMOSPHERIC ELECTRONIC MUSIC] 1129 01:13:25,749 --> 01:13:28,186 The great irony here is that everything that makes 1130 01:13:28,229 --> 01:13:30,493 a smart phone smart -- 1131 01:13:30,536 --> 01:13:33,147 the internet, GPS, touchscreen technology -- 1132 01:13:33,191 --> 01:13:36,934 all that was our taxpayer money going into federal agencies 1133 01:13:36,977 --> 01:13:39,589 like DARPA that created this stuff, 1134 01:13:39,632 --> 01:13:43,506 and yet the wealth doesn't flow back into the ecosystem. 1135 01:13:43,549 --> 01:13:48,467 Irish guys pay a fee to Google Netherlands Holding BV. 1136 01:13:48,511 --> 01:13:50,338 Is that to save withholding tax? 1137 01:13:50,382 --> 01:13:51,644 That's my understanding. 1138 01:13:51,688 --> 01:13:53,907 It therefore goes to Google Holdings Ireland? 1139 01:13:53,951 --> 01:13:55,735 -That's correct. -Which is registered in Ireland 1140 01:13:55,779 --> 01:13:57,607 but administered from Bermuda? 1141 01:13:57,650 --> 01:14:00,305 -That's correct. -So if that happens, 1142 01:14:00,348 --> 01:14:02,176 your profits actually go to Bermuda? 1143 01:14:02,220 --> 01:14:03,743 [THE WEEKND'S 'THE MORNING'] 1144 01:14:03,787 --> 01:14:07,443 ♪ All that money, the money is the motive ♪ 1145 01:14:07,486 --> 01:14:11,447 ♪ All that money, the money is the motive ♪ 1146 01:14:11,490 --> 01:14:15,407 ♪ All that money, the money she be folding ♪ 1147 01:14:15,451 --> 01:14:17,191 ♪ Girl put in work 1148 01:14:17,235 --> 01:14:19,411 ♪ Girl, girl, put in work 1149 01:14:19,455 --> 01:14:21,108 ♪ Girl put in work 1150 01:14:21,152 --> 01:14:23,415 ♪ Girl, girl, put in work 1151 01:14:23,459 --> 01:14:24,764 ♪ Girl put in work... 1152 01:15:01,540 --> 01:15:03,542 ♪ All that money 1153 01:15:03,586 --> 01:15:05,718 - ♪ The money is the motive - ♪ The money is the motive 1154 01:15:05,762 --> 01:15:09,417 ♪ All that money, the money she be folding ♪ 1155 01:15:09,461 --> 01:15:10,723 ♪ Girl, put in work... 1156 01:15:13,900 --> 01:15:15,162 ♪ Girl put in work 1157 01:15:15,206 --> 01:15:17,208 ♪ Girl, girl, put in work ♪ 1158 01:15:39,273 --> 01:15:41,537 [TRAFFIC HUMS, HORNS BLARE] 1159 01:15:42,668 --> 01:15:44,670 [STIRRING MUSIC] 1160 01:16:59,832 --> 01:17:01,660 [POP!] 1161 01:17:01,704 --> 01:17:03,967 [SIRENS WAIL, TRAFFIC HUMS] 1162 01:17:06,099 --> 01:17:09,102 BREMMER: Globalization has opened a global community up 1163 01:17:09,146 --> 01:17:10,582 to each other, 1164 01:17:10,626 --> 01:17:13,933 but it's also meant that in the developed world, 1165 01:17:13,977 --> 01:17:18,285 corporations were able to take jobs and move them 1166 01:17:18,329 --> 01:17:20,853 and make a lot of money out of it. 1167 01:17:20,897 --> 01:17:23,029 [PENSIVE MUSIC] 1168 01:17:23,073 --> 01:17:26,076 And on the other hand, the working and middle classes 1169 01:17:26,119 --> 01:17:29,688 that were doing quite well have lost quality of life 1170 01:17:29,732 --> 01:17:31,559 and opportunities. 1171 01:17:33,039 --> 01:17:37,000 And their governments and their corporations 1172 01:17:37,043 --> 01:17:41,482 have done very little -- in some cases, really nothing at all -- 1173 01:17:41,526 --> 01:17:43,528 to address that. 1174 01:17:46,966 --> 01:17:50,143 The United States and Europe are vastly more divided 1175 01:17:50,187 --> 01:17:51,710 because of globalization. 1176 01:17:51,754 --> 01:17:55,192 India, The Philippines, China are not. 1177 01:17:55,235 --> 01:17:57,237 [INTRIGUING MUSIC] 1178 01:18:01,807 --> 01:18:06,116 Chinese people, they believe that if they work hard, 1179 01:18:06,159 --> 01:18:07,944 their kids are gonna have better lives, 1180 01:18:07,987 --> 01:18:09,728 and that's probably true. 1181 01:18:09,772 --> 01:18:12,688 But in the United States, that's just not true anymore. 1182 01:18:12,731 --> 01:18:14,994 [DRAMATIC, STIRRING MUSIC] 1183 01:18:19,390 --> 01:18:24,134 If you go to Beijing or Shenzhen or Shanghai 1184 01:18:24,177 --> 01:18:26,832 or Guangzhou or any of these sort of 1185 01:18:26,876 --> 01:18:29,705 wealthier cities in China that have made it -- 1186 01:18:29,748 --> 01:18:32,316 Shanghai, where per capita income 1187 01:18:32,359 --> 01:18:36,363 is higher than Portugal -- you will meet middle class Chinese, 1188 01:18:36,407 --> 01:18:38,409 and I mean global middle class Chinese; 1189 01:18:38,452 --> 01:18:41,194 I don't mean middle class from the Chinese context. 1190 01:18:41,238 --> 01:18:44,807 And that is a very different China from what you saw 1191 01:18:44,850 --> 01:18:46,852 even 10 years ago. 1192 01:18:50,551 --> 01:18:53,163 China's now almost the largest economy in the world; 1193 01:18:53,206 --> 01:18:55,643 within the next decade it will be, 1194 01:18:55,687 --> 01:18:58,734 but it will still be state capitalist. 1195 01:18:58,777 --> 01:19:01,040 [DRAMATIC, STIRRING MUSIC] 1196 01:19:04,435 --> 01:19:08,700 State capitalism is where state-owned enterprises 1197 01:19:08,744 --> 01:19:12,835 are the most important actors in the economy. 1198 01:19:12,878 --> 01:19:15,228 These corporations are, in principle, 1199 01:19:15,272 --> 01:19:17,927 trying to make money and build themselves, 1200 01:19:17,970 --> 01:19:20,103 and sometimes they do compete against each other 1201 01:19:20,146 --> 01:19:22,845 in a fairly controlled fashion. 1202 01:19:22,888 --> 01:19:26,805 But the other important Chinese actors are what you'd call 1203 01:19:26,849 --> 01:19:29,112 privately owned national champions. 1204 01:19:29,155 --> 01:19:32,550 So, in other words, they are actively supported by the state, 1205 01:19:32,593 --> 01:19:34,421 even though they're privately held, 1206 01:19:34,465 --> 01:19:36,554 and they benefit accordingly. 1207 01:19:36,597 --> 01:19:38,599 [PLANE ENGINE ROARS] 1208 01:19:40,732 --> 01:19:43,430 Also you have hundreds of millions of people 1209 01:19:43,474 --> 01:19:45,693 who are quite poor, 1210 01:19:45,737 --> 01:19:47,434 but they want state capitalism. 1211 01:19:47,478 --> 01:19:50,829 It's fine for them, as long as they can make enough money 1212 01:19:50,873 --> 01:19:54,137 to ensure that their kids will do better. 1213 01:19:55,225 --> 01:19:57,836 [INDISTINCT TRAIN ANNOUNCEMENTS] 1214 01:20:24,994 --> 01:20:26,996 [TENSE, STIRRING MUSIC] 1215 01:20:34,438 --> 01:20:37,702 FUKUYAMA: China does show what freeing up capital will do to 1216 01:20:37,745 --> 01:20:40,052 income distribution. 1217 01:20:40,096 --> 01:20:43,621 Capital really has to be regulated much, much more 1218 01:20:43,664 --> 01:20:46,972 strictly than things in the real economy. 1219 01:20:48,365 --> 01:20:49,975 [TENSE MUSIC] 1220 01:20:50,019 --> 01:20:53,718 There's a fundamental difference between liberalization 1221 01:20:53,761 --> 01:20:55,459 of capital markets 1222 01:20:55,502 --> 01:20:59,767 and liberalization of trade and goods and services. 1223 01:20:59,811 --> 01:21:04,163 This was one of the big lessons of the Great Depression. 1224 01:21:06,252 --> 01:21:09,647 FOROOHAR: Modern capitalism is all about the free movement 1225 01:21:09,690 --> 01:21:11,779 of global capital, 1226 01:21:11,823 --> 01:21:14,826 and the financial system itself has changed 1227 01:21:14,870 --> 01:21:16,654 over the last 40 years. 1228 01:21:16,697 --> 01:21:19,787 The financial industry has about doubled in size as a percentage 1229 01:21:19,831 --> 01:21:22,921 of the economy, and that's actually created slower growth, 1230 01:21:22,965 --> 01:21:25,793 not faster growth. 1231 01:21:25,837 --> 01:21:28,535 When Adam Smith, the father of modern capitalism, 1232 01:21:28,579 --> 01:21:31,582 was thinking up the idea of the free market system, 1233 01:21:31,625 --> 01:21:33,366 he was living in a very different world. 1234 01:21:33,410 --> 01:21:35,629 Hey, why not? My own business. 1235 01:21:35,673 --> 01:21:39,024 All you need's a little capital, a little push and an idea. 1236 01:21:39,068 --> 01:21:41,592 FOROOHAR: Small and mid-sized family-owned businesses 1237 01:21:41,635 --> 01:21:42,854 were the norm. 1238 01:21:42,898 --> 01:21:44,595 I wouldn't wear that hat to a dog fight. 1239 01:21:44,638 --> 01:21:46,902 WOMAN: Why, there isn't a decent hat in the entire village. 1240 01:21:46,945 --> 01:21:50,818 Why not? Women's hats! My own business! 1241 01:21:50,862 --> 01:21:52,690 FOROOHAR: He believed that the financial markets 1242 01:21:52,733 --> 01:21:55,432 were just an intermediary -- they were supposed to take 1243 01:21:55,475 --> 01:21:58,261 everyone's savings, hold them as bank deposits, 1244 01:21:58,304 --> 01:22:03,092 and then lend them out to the hairdresser down the street. 1245 01:22:03,135 --> 01:22:05,311 Not to be too cliché, but it's kind of the 1246 01:22:05,355 --> 01:22:08,706 "It's a Wonderful Life" model of banking. 1247 01:22:10,229 --> 01:22:12,188 I think if Adam Smith time-warped, 1248 01:22:12,231 --> 01:22:16,453 he would have no idea what to make of a "too big to fail" bank 1249 01:22:16,496 --> 01:22:19,108 or a giant multinational company that's doing business 1250 01:22:19,151 --> 01:22:20,805 in 120 different countries, 1251 01:22:20,848 --> 01:22:23,460 all of which have different regulatory systems. 1252 01:22:23,503 --> 01:22:25,462 It's a completely different world. 1253 01:22:25,505 --> 01:22:27,594 [TENSE ELECTRONIC MUSIC] 1254 01:22:35,341 --> 01:22:40,607 Statistics today show that only 15% of money 1255 01:22:40,651 --> 01:22:43,132 coming out of the largest financial institutions 1256 01:22:43,175 --> 01:22:46,178 is actually going to that kind of productive lending. 1257 01:22:46,222 --> 01:22:48,876 So what's the other 85% doing? 1258 01:22:48,920 --> 01:22:51,531 It's just moving around this closed loop 1259 01:22:51,575 --> 01:22:53,185 of the financial system -- 1260 01:22:53,229 --> 01:22:56,972 its assets being bought and sold by the same people; 1261 01:22:57,015 --> 01:22:59,887 their value going up, up, up, up, up. 1262 01:23:02,499 --> 01:23:06,894 MASON: For the rich, it's easier to keep your wealth away 1263 01:23:06,938 --> 01:23:09,245 from productive, risky activity, 1264 01:23:09,288 --> 01:23:12,552 and this is producing a new social story. 1265 01:23:15,120 --> 01:23:18,515 It's easier to build a property, 1266 01:23:18,558 --> 01:23:20,517 and maybe you don't fill that property, 1267 01:23:20,560 --> 01:23:23,433 maybe all the apartments in the property aren't filled, 1268 01:23:23,476 --> 01:23:25,913 but you know in five years' time that property will be worth 1269 01:23:25,957 --> 01:23:30,527 so much more, that your business is really to sit on assets 1270 01:23:30,570 --> 01:23:33,095 and hope their value rises, 1271 01:23:33,138 --> 01:23:36,054 rather than to try and make money by risking your money 1272 01:23:36,098 --> 01:23:40,798 in activities like open a factory or invent something new. 1273 01:23:43,888 --> 01:23:46,151 EDWARDS: If you own a house, you're making capital gains 1274 01:23:46,195 --> 01:23:49,633 out of that far in excess of what people get 1275 01:23:49,676 --> 01:23:51,678 through just regular jobs. 1276 01:23:51,722 --> 01:23:54,377 Therefore, people have become property speculators. 1277 01:23:54,420 --> 01:23:58,468 And this changes the whole way the housing situation operates. 1278 01:23:59,860 --> 01:24:02,211 And, essentially, it starts dividing. 1279 01:24:03,734 --> 01:24:05,431 This housing crisis that's happening 1280 01:24:05,475 --> 01:24:07,129 really throughout the West is something 1281 01:24:07,172 --> 01:24:11,524 that particularly affects the young. 1282 01:24:11,568 --> 01:24:15,963 Most people view this as some sort of generational fight. 1283 01:24:16,007 --> 01:24:18,444 The baby boomers benefited from buying houses 1284 01:24:18,488 --> 01:24:20,359 when they were relatively cheap, 1285 01:24:20,403 --> 01:24:23,797 and therefore have a very nice nest egg for their retirement, 1286 01:24:23,841 --> 01:24:28,672 and it's the young people that can't even rent cheaply. 1287 01:24:28,715 --> 01:24:31,588 Those at the bottom, I think, are quite polarized -- 1288 01:24:31,631 --> 01:24:34,243 angry, in fact. 1289 01:24:34,286 --> 01:24:37,463 These houses, essentially, earn more money than they do, 1290 01:24:37,507 --> 01:24:39,596 and they have to rent them. 1291 01:24:40,858 --> 01:24:42,860 [SIREN WAILS] 1292 01:24:48,953 --> 01:24:51,434 MASON: It transmits to the poor or middle class person 1293 01:24:51,477 --> 01:24:55,220 that the best thing they can do is to hope that their home 1294 01:24:55,264 --> 01:24:57,048 rises so much in value 1295 01:24:57,092 --> 01:24:59,268 that it offsets all the other problems in their life, 1296 01:24:59,311 --> 01:25:01,052 like that their pension was destroyed 1297 01:25:01,096 --> 01:25:02,445 or that they lost their job 1298 01:25:02,488 --> 01:25:05,404 or that their kids are gonna be poor. 1299 01:25:05,448 --> 01:25:07,450 [EDGY, TENSE MUSIC] 1300 01:25:15,371 --> 01:25:19,201 SHAHEEN: Young people are naturally more hopeful. 1301 01:25:19,244 --> 01:25:22,160 But they are aware, they are acutely aware, 1302 01:25:22,204 --> 01:25:24,989 that they've been given a raw deal. 1303 01:25:26,947 --> 01:25:29,080 You know, why is it, to educate yourself, 1304 01:25:29,124 --> 01:25:33,476 you have to get yourself into £50,000 of debt? 1305 01:25:33,519 --> 01:25:37,175 And a lot of young people feel infantiled. 1306 01:25:37,219 --> 01:25:41,136 Why does my incredibly smart 26-year-old brother-in-law 1307 01:25:41,179 --> 01:25:42,833 still have to live at home? 1308 01:25:42,876 --> 01:25:46,489 He's asking that, my in-laws are asking that. 1309 01:25:48,273 --> 01:25:50,275 [TRAIN HUMS] 1310 01:25:59,328 --> 01:26:01,504 [BRAKES SQUEAL] 1311 01:26:01,547 --> 01:26:05,247 What we've told people is that, "You're not poor; 1312 01:26:05,290 --> 01:26:07,031 you're a millionaire-in-waiting. 1313 01:26:07,074 --> 01:26:09,512 And because of that, don't worry about inequality, 1314 01:26:09,555 --> 01:26:11,383 just focus on how hard you're working 1315 01:26:11,427 --> 01:26:15,170 and trying to run, run, run, run up that hill," 1316 01:26:17,650 --> 01:26:22,916 which is ironic, because societies that are more unequal 1317 01:26:22,960 --> 01:26:25,136 have less social mobility. 1318 01:26:27,573 --> 01:26:30,141 The rungs of the ladder grow apart, 1319 01:26:30,185 --> 01:26:34,841 people have the money to make sure they stay at the top, 1320 01:26:34,885 --> 01:26:38,410 and it means it's harder for people to climb. 1321 01:26:38,454 --> 01:26:43,067 That's something that you find again and again in the data. 1322 01:26:43,894 --> 01:26:46,505 The system is rigged. 1323 01:26:46,549 --> 01:26:50,466 And people aren't stupid -- they recognize that. 1324 01:26:53,251 --> 01:26:55,210 [SOMBER MUSIC] 1325 01:26:56,863 --> 01:26:58,865 [SIREN WAILS] 1326 01:27:01,303 --> 01:27:03,435 [PULSING, BROODING MUSIC] 1327 01:27:05,655 --> 01:27:07,787 TETT: Essentially, what's happening is that you're 1328 01:27:07,831 --> 01:27:10,573 getting an economy which is more and more productive, 1329 01:27:10,616 --> 01:27:14,185 but where the gains of those productivity increases 1330 01:27:14,229 --> 01:27:18,668 are going into the hands of a very small number of people. 1331 01:27:18,711 --> 01:27:20,365 And where there is job growth 1332 01:27:20,409 --> 01:27:22,280 is at the lower end of the spectrum, 1333 01:27:22,324 --> 01:27:25,762 which is often low-paid, fairly unsatisfactory work. 1334 01:27:25,805 --> 01:27:27,807 [UPBEAT, EDGY MUSIC] 1335 01:27:32,508 --> 01:27:35,467 Our labor market is shifting. 1336 01:27:35,511 --> 01:27:39,776 More and more, it classifies people as "self-employed." 1337 01:27:39,819 --> 01:27:42,257 And what that means is that companies won't owe them 1338 01:27:42,300 --> 01:27:46,043 holiday pay, won't owe them a pension, 1339 01:27:46,086 --> 01:27:49,220 and those individual workers have to make sure 1340 01:27:49,264 --> 01:27:52,136 that they can look after themselves if they're sick, 1341 01:27:52,179 --> 01:27:54,530 if they want to take a holiday. 1342 01:27:55,748 --> 01:27:57,750 [MUSIC CONTINUES] 1343 01:27:59,186 --> 01:28:01,319 MASON: You know what, when Piketty says 1344 01:28:01,363 --> 01:28:04,670 that the future for capitalism is this highly illegal, 1345 01:28:04,714 --> 01:28:09,501 highly socially immobile future, it's already happening. 1346 01:28:10,894 --> 01:28:12,983 [EDGY, TENSE MUSIC FADES] 1347 01:28:15,551 --> 01:28:17,857 TETT: America's about to see the biggest wealth transfer 1348 01:28:17,901 --> 01:28:21,948 in history take place, as the generation which made money 1349 01:28:21,992 --> 01:28:23,733 after World War II 1350 01:28:23,776 --> 01:28:27,345 is passing that wealth on to their children. 1351 01:28:27,389 --> 01:28:29,391 [PLAYFUL MUSIC] 1352 01:28:36,702 --> 01:28:39,139 Something in the order of $12 trillion or more 1353 01:28:39,183 --> 01:28:41,228 is going to be passed on to the next generation 1354 01:28:41,272 --> 01:28:44,144 in the next 10 to 15 years. 1355 01:28:44,188 --> 01:28:47,800 And that will be invested in a way that it creates more wealth. 1356 01:28:50,237 --> 01:28:53,980 [INTRIGUING MUSIC] 1357 01:30:41,261 --> 01:30:43,263 [TENSE MUSIC] 1358 01:30:47,529 --> 01:30:50,836 There's now research showing that in advanced economies, 1359 01:30:50,880 --> 01:30:54,492 that two-thirds of the population is now on track 1360 01:30:54,536 --> 01:30:56,712 to be poorer than their parents, 1361 01:30:56,755 --> 01:30:59,628 which is a huge, huge mega political trend. 1362 01:30:59,671 --> 01:31:02,369 [EXPLOSION BOOMS, GLASS SHATTERS] 1363 01:31:02,413 --> 01:31:04,284 [SIREN WAILS] 1364 01:31:05,242 --> 01:31:07,505 [PEOPLE YELL INDISTINCTLY] 1365 01:31:13,250 --> 01:31:16,253 MASON: People on the streets are starting to say, "Enough" -- 1366 01:31:21,737 --> 01:31:25,175 ...enough of the inequality and enough of not having a story 1367 01:31:25,218 --> 01:31:28,047 about how this ever gets better. 1368 01:31:28,091 --> 01:31:29,614 And people are reaching out 1369 01:31:29,658 --> 01:31:31,573 for the nearest thing they can cling to, 1370 01:31:31,616 --> 01:31:33,923 and often that is their identity, their ethnicity, 1371 01:31:33,966 --> 01:31:36,186 their religion. 1372 01:31:36,229 --> 01:31:38,231 [TENSE MUSIC] 1373 01:31:43,062 --> 01:31:46,457 And they lash out against the nearest enemy they can find. 1374 01:31:46,501 --> 01:31:48,720 BORIS JOHNSON: Vast amounts of unskilled labor 1375 01:31:48,764 --> 01:31:50,548 coming into this country. 1376 01:31:50,592 --> 01:31:53,116 DONALD TRUMP: They're bringing drugs, they're bringing crime, 1377 01:31:53,159 --> 01:31:54,334 they're rapists. 1378 01:32:00,602 --> 01:32:03,082 But ultimately, none of that will work. 1379 01:32:03,126 --> 01:32:07,130 Blaming your neighbor doesn't make you any richer. 1380 01:32:42,600 --> 01:32:44,559 [SIREN WAILS] 1381 01:33:39,570 --> 01:33:41,572 [POIGNANT MUSIC] 1382 01:33:58,241 --> 01:34:00,243 [STIRRING MUSIC] 1383 01:34:26,922 --> 01:34:28,924 [MUSIC CONTINUES] 1384 01:34:37,193 --> 01:34:39,238 BREMMER: You know, if you wanna think about what the longer term 1385 01:34:39,282 --> 01:34:43,025 implications are, I mean, the truly dystopian implications, 1386 01:34:43,068 --> 01:34:44,809 you think about horses. 1387 01:34:46,245 --> 01:34:49,118 I mean, we used to have a lot of horses. 1388 01:34:50,119 --> 01:34:51,729 End of the 19th century, right, 1389 01:34:51,773 --> 01:34:55,515 I mean, horses were critical for industrialization. 1390 01:34:55,559 --> 01:34:57,779 And then they weren't, 1391 01:34:57,822 --> 01:35:00,346 because you have all these industrial processes 1392 01:35:00,390 --> 01:35:04,002 that are much more efficient than horses are. 1393 01:35:05,656 --> 01:35:08,659 And, you know, for all of the technophiles 1394 01:35:08,703 --> 01:35:12,881 that are saying, "Technology has always created more jobs, 1395 01:35:12,924 --> 01:35:14,839 and so it will continue to," 1396 01:35:14,883 --> 01:35:18,103 I say, "Technology has always created more jobs, 1397 01:35:18,147 --> 01:35:22,978 as long as you had things that human beings could do." 1398 01:35:28,810 --> 01:35:32,074 But when technology starts actually getting at 1399 01:35:32,117 --> 01:35:35,468 the basic functionality of a human being, 1400 01:35:38,210 --> 01:35:42,998 then human beings start becoming the equivalent of horses. 1401 01:35:45,130 --> 01:35:46,871 And that doesn't mean 1402 01:35:46,915 --> 01:35:50,179 that we can no longer have meaningful lives, 1403 01:35:50,222 --> 01:35:52,355 but it means that you have to change your model 1404 01:35:52,398 --> 01:35:56,098 because capitalism is no longer about labor. 1405 01:35:57,229 --> 01:35:59,231 [STIRRING MUSIC] 1406 01:36:00,885 --> 01:36:04,541 And the problem is this is coming soon, soon, soon. 1407 01:36:05,847 --> 01:36:09,154 You look at driverless technologies. 1408 01:36:09,198 --> 01:36:13,768 Driving is, by the way, the single largest or second largest 1409 01:36:13,811 --> 01:36:17,859 employer of people in every one of the 50 US states, 1410 01:36:17,902 --> 01:36:21,776 and within 10 years, most of those jobs are gone. 1411 01:36:24,474 --> 01:36:29,784 So you will address capital, because if you don't, right, 1412 01:36:29,827 --> 01:36:33,352 you are going to have very serious problems. 1413 01:36:34,701 --> 01:36:36,703 [OMINOUS MUSIC] 1414 01:36:40,055 --> 01:36:42,144 [TRAFFIC HUMS, DOGS BARK] 1415 01:36:45,451 --> 01:36:47,714 [INDISTINCT CHATTER] 1416 01:36:47,758 --> 01:36:49,760 [VEHICLES WHIRR] 1417 01:36:53,024 --> 01:36:54,809 NAIDU: We're leaving an industrial economy 1418 01:36:54,852 --> 01:36:58,029 and going to a post-industrial economy. 1419 01:36:58,073 --> 01:37:00,466 And we have to make choices 1420 01:37:00,510 --> 01:37:03,078 about which future we wind up in. 1421 01:37:05,515 --> 01:37:09,562 You can have abundance that is very unequally distributed, 1422 01:37:09,606 --> 01:37:13,218 where we have the robots that can do anything, 1423 01:37:13,262 --> 01:37:16,091 but the only people that own the robots are a very small 1424 01:37:16,134 --> 01:37:18,136 segment of society,... 1425 01:37:19,921 --> 01:37:22,749 basically like Elysium, where a bunch of people 1426 01:37:22,793 --> 01:37:25,230 live in ecologically protected spaces 1427 01:37:25,274 --> 01:37:29,800 and everyone else is living in, like, a hot, putrid mess. 1428 01:37:32,629 --> 01:37:35,458 And so it's a political problem. 1429 01:38:50,185 --> 01:38:52,187 [REFLECTIVE MUSIC]