[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.46,0:00:04.12,Default,,0000,0000,0000,,I am a capitalist,
Dialogue: 0,0:00:05.46,0:00:08.39,Default,,0000,0000,0000,,and after a 30-year career in capitalism
Dialogue: 0,0:00:08.42,0:00:10.93,Default,,0000,0000,0000,,spanning three dozen companies,
Dialogue: 0,0:00:10.96,0:00:14.31,Default,,0000,0000,0000,,generating tens of billions\Nof dollars in market value,
Dialogue: 0,0:00:14.33,0:00:20.21,Default,,0000,0000,0000,,I'm not just in the top one percent,\NI'm in the top .01 percent of all earners.
Dialogue: 0,0:00:21.50,0:00:24.52,Default,,0000,0000,0000,,Today, I have come\Nto share the secrets of our success,
Dialogue: 0,0:00:24.54,0:00:28.73,Default,,0000,0000,0000,,because rich capitalists like me\Nhave never been richer.
Dialogue: 0,0:00:28.75,0:00:31.38,Default,,0000,0000,0000,,So the question is, how do we do it?
Dialogue: 0,0:00:32.29,0:00:33.85,Default,,0000,0000,0000,,How do we manage to grab
Dialogue: 0,0:00:33.88,0:00:37.71,Default,,0000,0000,0000,,an ever-increasing share\Nof the economic pie every year?
Dialogue: 0,0:00:38.88,0:00:42.79,Default,,0000,0000,0000,,Is it that rich people are smarter\Nthan we were 30 years ago?
Dialogue: 0,0:00:43.83,0:00:46.21,Default,,0000,0000,0000,,Is it that we're working harder\Nthan we once did?
Dialogue: 0,0:00:47.50,0:00:50.00,Default,,0000,0000,0000,,Are we taller, better looking?
Dialogue: 0,0:00:51.29,0:00:52.54,Default,,0000,0000,0000,,Sadly, no.
Dialogue: 0,0:00:53.54,0:00:56.14,Default,,0000,0000,0000,,It all comes down to just one thing:
Dialogue: 0,0:00:56.17,0:00:57.42,Default,,0000,0000,0000,,economics.
Dialogue: 0,0:00:58.25,0:00:59.82,Default,,0000,0000,0000,,Because, here's the dirty secret.
Dialogue: 0,0:01:00.67,0:01:03.02,Default,,0000,0000,0000,,There was a time\Nin which the economics profession
Dialogue: 0,0:01:03.04,0:01:04.52,Default,,0000,0000,0000,,worked in the public interest,
Dialogue: 0,0:01:04.54,0:01:06.43,Default,,0000,0000,0000,,but in the neoliberal era,
Dialogue: 0,0:01:06.46,0:01:08.18,Default,,0000,0000,0000,,today,
Dialogue: 0,0:01:08.21,0:01:10.64,Default,,0000,0000,0000,,they work only for big corporations
Dialogue: 0,0:01:10.67,0:01:12.23,Default,,0000,0000,0000,,and billionaires,
Dialogue: 0,0:01:12.25,0:01:14.83,Default,,0000,0000,0000,,and that is creating\Na little bit of a problem.
Dialogue: 0,0:01:15.79,0:01:19.60,Default,,0000,0000,0000,,We could choose to enact economic policies
Dialogue: 0,0:01:19.62,0:01:21.50,Default,,0000,0000,0000,,that raise taxes on the rich,
Dialogue: 0,0:01:22.42,0:01:26.27,Default,,0000,0000,0000,,regulate powerful corporations\Nor raise wages for workers.
Dialogue: 0,0:01:26.29,0:01:27.81,Default,,0000,0000,0000,,We have done it before.
Dialogue: 0,0:01:27.83,0:01:30.31,Default,,0000,0000,0000,,But neoliberal economists would warn
Dialogue: 0,0:01:30.33,0:01:34.35,Default,,0000,0000,0000,,that all of these policies\Nwould be a terrible mistake,
Dialogue: 0,0:01:34.38,0:01:37.12,Default,,0000,0000,0000,,because raising taxes\Nalways kills economic growth,
Dialogue: 0,0:01:38.08,0:01:40.35,Default,,0000,0000,0000,,and any form of government regulation
Dialogue: 0,0:01:40.38,0:01:42.06,Default,,0000,0000,0000,,is inefficient,
Dialogue: 0,0:01:42.08,0:01:44.46,Default,,0000,0000,0000,,and raising wages always kills jobs.
Dialogue: 0,0:01:45.38,0:01:47.46,Default,,0000,0000,0000,,Well, as a consequence of that thinking,
Dialogue: 0,0:01:48.54,0:01:52.77,Default,,0000,0000,0000,,over the last 30 years, in the USA alone,
Dialogue: 0,0:01:52.79,0:01:57.06,Default,,0000,0000,0000,,the top one percent has grown\N21 trillion dollars richer
Dialogue: 0,0:01:57.08,0:02:02.52,Default,,0000,0000,0000,,while the bottom 50 percent\Nhave grown 900 billion dollars poorer,
Dialogue: 0,0:02:02.54,0:02:06.43,Default,,0000,0000,0000,,a pattern of widening inequality\Nthat has largely repeated itself
Dialogue: 0,0:02:06.46,0:02:07.93,Default,,0000,0000,0000,,across the world.
Dialogue: 0,0:02:07.96,0:02:12.60,Default,,0000,0000,0000,,And yet, as middle class families\Nstruggle to get by
Dialogue: 0,0:02:12.62,0:02:16.52,Default,,0000,0000,0000,,on wages that have not budged\Nin about 40 years,
Dialogue: 0,0:02:16.54,0:02:20.68,Default,,0000,0000,0000,,neoliberal economists continue to warn\Nthat the only reasonable response
Dialogue: 0,0:02:20.71,0:02:24.81,Default,,0000,0000,0000,,to the painful dislocations\Nof austerity and globalization
Dialogue: 0,0:02:24.83,0:02:27.62,Default,,0000,0000,0000,,is even more austerity and globalization.
Dialogue: 0,0:02:28.71,0:02:31.62,Default,,0000,0000,0000,,So, what is a society to do?
Dialogue: 0,0:02:32.83,0:02:35.73,Default,,0000,0000,0000,,Well, it's super clear to me\Nwhat we need to do.
Dialogue: 0,0:02:35.75,0:02:37.67,Default,,0000,0000,0000,,We need a new economics.
Dialogue: 0,0:02:39.17,0:02:43.23,Default,,0000,0000,0000,,So, economics has been described\Nas the dismal science,
Dialogue: 0,0:02:43.25,0:02:46.35,Default,,0000,0000,0000,,and for good reason,\Nbecause as much as it is taught today,
Dialogue: 0,0:02:46.38,0:02:47.98,Default,,0000,0000,0000,,it isn't a science at all,
Dialogue: 0,0:02:48.00,0:02:51.39,Default,,0000,0000,0000,,in spite of all\Nof the dazzling mathematics.
Dialogue: 0,0:02:51.42,0:02:54.60,Default,,0000,0000,0000,,In fact, a growing number\Nof academics and practitioners
Dialogue: 0,0:02:54.62,0:03:00.60,Default,,0000,0000,0000,,have concluded that neoliberal\Neconomic theory is dangerously wrong
Dialogue: 0,0:03:00.62,0:03:04.23,Default,,0000,0000,0000,,and that today's growing crises\Nof rising inequality
Dialogue: 0,0:03:04.25,0:03:05.93,Default,,0000,0000,0000,,and growing political instability
Dialogue: 0,0:03:05.96,0:03:11.14,Default,,0000,0000,0000,,are the direct result\Nof decades of bad economic theory.
Dialogue: 0,0:03:11.17,0:03:17.14,Default,,0000,0000,0000,,What we now know is that the economics\Nthat made me so rich isn't just wrong,
Dialogue: 0,0:03:17.17,0:03:19.18,Default,,0000,0000,0000,,it's backwards,
Dialogue: 0,0:03:19.21,0:03:21.14,Default,,0000,0000,0000,,because it turns out
Dialogue: 0,0:03:21.17,0:03:24.93,Default,,0000,0000,0000,,it isn't capital\Nthat creates economic growth,
Dialogue: 0,0:03:24.96,0:03:26.21,Default,,0000,0000,0000,,it's people;
Dialogue: 0,0:03:27.25,0:03:32.02,Default,,0000,0000,0000,,and it isn't self-interest\Nthat promotes the public good,
Dialogue: 0,0:03:32.04,0:03:33.29,Default,,0000,0000,0000,,it's reciprocity;
Dialogue: 0,0:03:34.54,0:03:38.81,Default,,0000,0000,0000,,and it isn't competition\Nthat produces our prosperity,
Dialogue: 0,0:03:38.83,0:03:40.46,Default,,0000,0000,0000,,it's cooperation.
Dialogue: 0,0:03:41.33,0:03:46.35,Default,,0000,0000,0000,,What we can now see is that an economics\Nthat is neither just nor inclusive
Dialogue: 0,0:03:46.38,0:03:50.77,Default,,0000,0000,0000,,can never sustain the high levels\Nof social cooperation
Dialogue: 0,0:03:50.79,0:03:53.43,Default,,0000,0000,0000,,necessary to enable\Na modern society to thrive.
Dialogue: 0,0:03:53.46,0:03:56.04,Default,,0000,0000,0000,,So where did we go wrong?
Dialogue: 0,0:03:57.25,0:04:01.43,Default,,0000,0000,0000,,Well, it turns out\Nthat it's become painfully obvious
Dialogue: 0,0:04:01.46,0:04:07.48,Default,,0000,0000,0000,,that the fundamental assumptions\Nthat undergird neoliberal economic theory
Dialogue: 0,0:04:07.50,0:04:10.60,Default,,0000,0000,0000,,are just objectively false,
Dialogue: 0,0:04:10.62,0:04:14.43,Default,,0000,0000,0000,,and so today first I want to take you\Nthrough some of those mistaken assumptions
Dialogue: 0,0:04:14.46,0:04:20.50,Default,,0000,0000,0000,,and then after describe where the science\Nsuggests prosperity actually comes from.
Dialogue: 0,0:04:21.42,0:04:25.56,Default,,0000,0000,0000,,So, neoliberal economic\Nassumption number one is
Dialogue: 0,0:04:25.58,0:04:30.02,Default,,0000,0000,0000,,that the market is\Nan efficient equilibrium system,
Dialogue: 0,0:04:30.04,0:04:36.06,Default,,0000,0000,0000,,which basically means that if one thing\Nin the economy, like wages, goes up,
Dialogue: 0,0:04:36.08,0:04:40.25,Default,,0000,0000,0000,,another thing in the economy,\Nlike jobs, must go down.
Dialogue: 0,0:04:41.33,0:04:43.71,Default,,0000,0000,0000,,So for example, in Seattle, where I live,
Dialogue: 0,0:04:44.96,0:04:49.98,Default,,0000,0000,0000,,when in 2014 we passed\Nour nation's first 15 dollar minimum wage,
Dialogue: 0,0:04:50.00,0:04:54.42,Default,,0000,0000,0000,,the neoliberals freaked out\Nover their precious equilibrium.
Dialogue: 0,0:04:55.38,0:04:58.23,Default,,0000,0000,0000,,"If you raise the price\Nof labor," they warned,
Dialogue: 0,0:04:58.25,0:05:00.27,Default,,0000,0000,0000,,"businesses will purchase less of it.
Dialogue: 0,0:05:00.29,0:05:02.81,Default,,0000,0000,0000,,Thousands of low-wage workers\Nwill lose their jobs.
Dialogue: 0,0:05:02.83,0:05:04.73,Default,,0000,0000,0000,,The restaurants will close."
Dialogue: 0,0:05:04.75,0:05:06.00,Default,,0000,0000,0000,,Except ...
Dialogue: 0,0:05:07.00,0:05:08.25,Default,,0000,0000,0000,,they didn't.
Dialogue: 0,0:05:08.92,0:05:12.12,Default,,0000,0000,0000,,The unemployment rate fell dramatically.
Dialogue: 0,0:05:13.12,0:05:16.02,Default,,0000,0000,0000,,The restaurant business in Seattle boomed.
Dialogue: 0,0:05:16.04,0:05:17.29,Default,,0000,0000,0000,,Why?
Dialogue: 0,0:05:18.08,0:05:20.50,Default,,0000,0000,0000,,Because there is no equilibrium.
Dialogue: 0,0:05:21.92,0:05:24.73,Default,,0000,0000,0000,,Because raising wages\Ndoesn't kill jobs, it creates them;
Dialogue: 0,0:05:24.75,0:05:26.23,Default,,0000,0000,0000,,because, for instance,
Dialogue: 0,0:05:26.25,0:05:31.14,Default,,0000,0000,0000,,when restaurant owners are suddenly\Nrequired to pay restaurant workers enough
Dialogue: 0,0:05:31.17,0:05:35.18,Default,,0000,0000,0000,,so that now even they\Ncan afford to eat in restaurants,
Dialogue: 0,0:05:35.21,0:05:37.23,Default,,0000,0000,0000,,it doesn't shrink the restaurant business,
Dialogue: 0,0:05:37.25,0:05:39.46,Default,,0000,0000,0000,,it grows it, obviously.
Dialogue: 0,0:05:41.33,0:05:42.60,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:05:42.62,0:05:44.04,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:05:46.21,0:05:48.46,Default,,0000,0000,0000,,The second assumption is
Dialogue: 0,0:05:49.92,0:05:54.89,Default,,0000,0000,0000,,that the price of something\Nis always equal to its value,
Dialogue: 0,0:05:54.92,0:05:58.48,Default,,0000,0000,0000,,which basically means\Nthat if you earn 50,000 dollars a year
Dialogue: 0,0:05:58.50,0:06:01.43,Default,,0000,0000,0000,,and I earn 50 million dollars a year,
Dialogue: 0,0:06:01.46,0:06:05.75,Default,,0000,0000,0000,,that's because I produce\Na thousand times as much value as you.
Dialogue: 0,0:06:06.58,0:06:08.23,Default,,0000,0000,0000,,Now,
Dialogue: 0,0:06:08.25,0:06:11.89,Default,,0000,0000,0000,,it will not surprise you to learn
Dialogue: 0,0:06:11.92,0:06:13.89,Default,,0000,0000,0000,,that this is a very comforting assumption
Dialogue: 0,0:06:13.92,0:06:16.60,Default,,0000,0000,0000,,if you're a CEO paying yourself\N50 million dollars a year
Dialogue: 0,0:06:16.62,0:06:19.56,Default,,0000,0000,0000,,but paying your workers poverty wages.
Dialogue: 0,0:06:19.58,0:06:23.73,Default,,0000,0000,0000,,But please, take it from somebody\Nwho has run dozens of businesses:
Dialogue: 0,0:06:23.75,0:06:26.14,Default,,0000,0000,0000,,this is nonsense.
Dialogue: 0,0:06:26.17,0:06:28.56,Default,,0000,0000,0000,,People are not paid what they are worth.
Dialogue: 0,0:06:28.58,0:06:31.85,Default,,0000,0000,0000,,They are paid what they have\Nthe power to negotiate,
Dialogue: 0,0:06:31.88,0:06:34.64,Default,,0000,0000,0000,,and wages' falling share of GDP
Dialogue: 0,0:06:34.67,0:06:38.18,Default,,0000,0000,0000,,is not because workers\Nhave become less productive
Dialogue: 0,0:06:38.21,0:06:41.38,Default,,0000,0000,0000,,but because employers\Nhave become more powerful.
Dialogue: 0,0:06:42.33,0:06:43.60,Default,,0000,0000,0000,,And --
Dialogue: 0,0:06:43.62,0:06:45.21,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:06:47.17,0:06:52.64,Default,,0000,0000,0000,,And by pretending that the giant imbalance\Nin power between capital and labor
Dialogue: 0,0:06:52.67,0:06:54.31,Default,,0000,0000,0000,,doesn't exist,
Dialogue: 0,0:06:54.33,0:06:58.06,Default,,0000,0000,0000,,neoliberal economic theory\Nbecame essentially
Dialogue: 0,0:06:58.08,0:07:00.33,Default,,0000,0000,0000,,a protection racket for the rich.
Dialogue: 0,0:07:01.50,0:07:04.02,Default,,0000,0000,0000,,The third assumption,\Nand by far the most pernicious,
Dialogue: 0,0:07:04.04,0:07:05.35,Default,,0000,0000,0000,,is a behavioral model
Dialogue: 0,0:07:05.38,0:07:09.23,Default,,0000,0000,0000,,that describes human beings\Nas something called "homo economicus,"
Dialogue: 0,0:07:09.25,0:07:14.48,Default,,0000,0000,0000,,which basically means\Nthat we are all perfectly selfish,
Dialogue: 0,0:07:14.50,0:07:18.50,Default,,0000,0000,0000,,perfectly rational\Nand relentlessly self-maximizing.
Dialogue: 0,0:07:19.96,0:07:21.56,Default,,0000,0000,0000,,But just ask yourselves,
Dialogue: 0,0:07:21.58,0:07:25.39,Default,,0000,0000,0000,,is it plausible that every single time\Nfor your entire life,
Dialogue: 0,0:07:25.42,0:07:27.60,Default,,0000,0000,0000,,when you did something\Nnice for somebody else,
Dialogue: 0,0:07:27.62,0:07:30.89,Default,,0000,0000,0000,,all you were doing\Nwas maximizing your own utility?
Dialogue: 0,0:07:30.92,0:07:34.77,Default,,0000,0000,0000,,Is it plausible that when a soldier jumps\Non a grenade to defend fellow soldiers,
Dialogue: 0,0:07:34.79,0:07:37.52,Default,,0000,0000,0000,,they're just promoting\Ntheir narrow self-interest?
Dialogue: 0,0:07:37.54,0:07:39.35,Default,,0000,0000,0000,,If you think that's nuts,
Dialogue: 0,0:07:39.38,0:07:42.48,Default,,0000,0000,0000,,contrary to any reasonable\Nmoral intuition,
Dialogue: 0,0:07:42.50,0:07:44.31,Default,,0000,0000,0000,,that's because it is
Dialogue: 0,0:07:44.33,0:07:46.10,Default,,0000,0000,0000,,and, according to the latest science,
Dialogue: 0,0:07:46.12,0:07:47.77,Default,,0000,0000,0000,,not true.
Dialogue: 0,0:07:47.79,0:07:50.31,Default,,0000,0000,0000,,But it is this behavioral model
Dialogue: 0,0:07:50.33,0:07:53.60,Default,,0000,0000,0000,,which is at the cold, cruel heart\Nof neoliberal economics,
Dialogue: 0,0:07:53.62,0:07:57.31,Default,,0000,0000,0000,,and it is as morally corrosive
Dialogue: 0,0:07:57.33,0:07:59.85,Default,,0000,0000,0000,,as it is scientifically wrong
Dialogue: 0,0:07:59.88,0:08:04.93,Default,,0000,0000,0000,,because, if we accept at face value
Dialogue: 0,0:08:04.96,0:08:07.77,Default,,0000,0000,0000,,that humans are fundamentally selfish,
Dialogue: 0,0:08:07.79,0:08:10.02,Default,,0000,0000,0000,,and then we look around the world
Dialogue: 0,0:08:10.04,0:08:13.04,Default,,0000,0000,0000,,at all of the unambiguous\Nprosperity in it,
Dialogue: 0,0:08:14.08,0:08:16.93,Default,,0000,0000,0000,,then it follows logically,
Dialogue: 0,0:08:16.96,0:08:18.77,Default,,0000,0000,0000,,then it must be true by definition,
Dialogue: 0,0:08:18.79,0:08:22.64,Default,,0000,0000,0000,,that billions of individual\Nacts of selfishness
Dialogue: 0,0:08:22.67,0:08:26.68,Default,,0000,0000,0000,,magically transubstantiate\Ninto prosperity and the common good.
Dialogue: 0,0:08:26.71,0:08:29.60,Default,,0000,0000,0000,,If we humans are merely\Nselfish maximizers,
Dialogue: 0,0:08:29.62,0:08:33.21,Default,,0000,0000,0000,,then selfishness\Nis the cause of our prosperity.
Dialogue: 0,0:08:34.12,0:08:36.73,Default,,0000,0000,0000,,Under this economic logic,
Dialogue: 0,0:08:36.75,0:08:38.71,Default,,0000,0000,0000,,greed is good,
Dialogue: 0,0:08:39.67,0:08:42.02,Default,,0000,0000,0000,,widening inequality is efficient,
Dialogue: 0,0:08:42.04,0:08:44.39,Default,,0000,0000,0000,,and the only purpose of the corporation
Dialogue: 0,0:08:44.42,0:08:46.89,Default,,0000,0000,0000,,can be to enrich shareholders,
Dialogue: 0,0:08:46.92,0:08:50.02,Default,,0000,0000,0000,,because to do otherwise\Nwould be to slow economic growth
Dialogue: 0,0:08:50.04,0:08:51.83,Default,,0000,0000,0000,,and harm the economy overall.
Dialogue: 0,0:08:53.33,0:08:56.73,Default,,0000,0000,0000,,And it is this gospel of selfishness
Dialogue: 0,0:08:56.75,0:09:00.98,Default,,0000,0000,0000,,which forms the ideological cornerstone\Nof neoliberal economics,
Dialogue: 0,0:09:01.00,0:09:04.64,Default,,0000,0000,0000,,a way of thinking\Nwhich has produced economic policies
Dialogue: 0,0:09:04.67,0:09:08.39,Default,,0000,0000,0000,,which have enabled me and my rich buddies\Nin the top one percent
Dialogue: 0,0:09:08.42,0:09:12.38,Default,,0000,0000,0000,,to grab virtually all of the benefits\Nof growth over the last 40 years.
Dialogue: 0,0:09:13.08,0:09:14.93,Default,,0000,0000,0000,,But,
Dialogue: 0,0:09:14.96,0:09:17.02,Default,,0000,0000,0000,,if instead
Dialogue: 0,0:09:17.04,0:09:20.68,Default,,0000,0000,0000,,we accept the latest empirical research,
Dialogue: 0,0:09:20.71,0:09:24.06,Default,,0000,0000,0000,,real science, which correctly\Ndescribes human beings
Dialogue: 0,0:09:24.08,0:09:27.27,Default,,0000,0000,0000,,as highly cooperative,
Dialogue: 0,0:09:27.29,0:09:28.56,Default,,0000,0000,0000,,reciprocal
Dialogue: 0,0:09:28.58,0:09:31.52,Default,,0000,0000,0000,,and intuitively moral creatures,
Dialogue: 0,0:09:31.54,0:09:34.18,Default,,0000,0000,0000,,then it follows logically
Dialogue: 0,0:09:34.21,0:09:36.73,Default,,0000,0000,0000,,that it must be cooperation
Dialogue: 0,0:09:36.75,0:09:38.35,Default,,0000,0000,0000,,and not selfishness
Dialogue: 0,0:09:38.38,0:09:40.14,Default,,0000,0000,0000,,that is the cause of our prosperity,
Dialogue: 0,0:09:40.17,0:09:42.52,Default,,0000,0000,0000,,and it isn't our self-interest
Dialogue: 0,0:09:42.54,0:09:45.17,Default,,0000,0000,0000,,but rather our inherent reciprocity
Dialogue: 0,0:09:46.25,0:09:49.08,Default,,0000,0000,0000,,that is humanity's economic superpower.
Dialogue: 0,0:09:49.83,0:09:54.31,Default,,0000,0000,0000,,So at the heart of this new economics
Dialogue: 0,0:09:54.33,0:09:59.10,Default,,0000,0000,0000,,is a story about ourselves that grants us\Npermission to be our best selves,
Dialogue: 0,0:09:59.12,0:10:02.10,Default,,0000,0000,0000,,and, unlike the old economics,
Dialogue: 0,0:10:02.12,0:10:04.85,Default,,0000,0000,0000,,this is a story that is virtuous
Dialogue: 0,0:10:04.88,0:10:07.71,Default,,0000,0000,0000,,and also has the virtue of being true.
Dialogue: 0,0:10:09.00,0:10:10.89,Default,,0000,0000,0000,,Now,
Dialogue: 0,0:10:10.92,0:10:13.10,Default,,0000,0000,0000,,I want to emphasize\Nthat this new economics
Dialogue: 0,0:10:13.12,0:10:15.77,Default,,0000,0000,0000,,is not something I have personally\Nimagined or invented.
Dialogue: 0,0:10:15.79,0:10:18.60,Default,,0000,0000,0000,,Its theories and models\Nare being developed and refined
Dialogue: 0,0:10:18.62,0:10:20.64,Default,,0000,0000,0000,,in universities around the world
Dialogue: 0,0:10:20.67,0:10:23.98,Default,,0000,0000,0000,,building on some of the best\Nnew research in economics,
Dialogue: 0,0:10:24.00,0:10:25.89,Default,,0000,0000,0000,,complexity theory, evolutionary theory,
Dialogue: 0,0:10:25.92,0:10:29.02,Default,,0000,0000,0000,,psychology, anthropology\Nand other disciplines.
Dialogue: 0,0:10:29.04,0:10:33.85,Default,,0000,0000,0000,,And although this new economics\Ndoes not yet have its own textbook
Dialogue: 0,0:10:33.88,0:10:36.23,Default,,0000,0000,0000,,or even a commonly agreed upon name,
Dialogue: 0,0:10:36.25,0:10:38.27,Default,,0000,0000,0000,,in broad strokes
Dialogue: 0,0:10:38.29,0:10:42.46,Default,,0000,0000,0000,,its explanation of where prosperity\Ncomes from goes something like this.
Dialogue: 0,0:10:43.46,0:10:48.02,Default,,0000,0000,0000,,So, market capitalism\Nis an evolutionary system
Dialogue: 0,0:10:48.04,0:10:50.48,Default,,0000,0000,0000,,in which prosperity emerges
Dialogue: 0,0:10:50.50,0:10:52.06,Default,,0000,0000,0000,,through a positive feedback loop
Dialogue: 0,0:10:52.08,0:10:57.02,Default,,0000,0000,0000,,between increasing amounts of innovation\Nand increasing amounts of consumer demand.
Dialogue: 0,0:10:57.04,0:11:01.67,Default,,0000,0000,0000,,Innovation is the process\Nby which we solve human problems,
Dialogue: 0,0:11:02.58,0:11:05.89,Default,,0000,0000,0000,,consumer demand is the mechanism\Nthrough which the market selects
Dialogue: 0,0:11:05.92,0:11:08.31,Default,,0000,0000,0000,,for useful innovations,
Dialogue: 0,0:11:08.33,0:11:11.56,Default,,0000,0000,0000,,and as we solve more problems,\Nwe become more prosperous.
Dialogue: 0,0:11:11.58,0:11:15.56,Default,,0000,0000,0000,,But as we become more prosperous,
Dialogue: 0,0:11:15.58,0:11:17.39,Default,,0000,0000,0000,,our problems and solutions
Dialogue: 0,0:11:17.42,0:11:20.18,Default,,0000,0000,0000,,become more complex,
Dialogue: 0,0:11:20.21,0:11:23.35,Default,,0000,0000,0000,,and this increasing technical complexity
Dialogue: 0,0:11:23.38,0:11:27.89,Default,,0000,0000,0000,,requires ever higher levels\Nof social and economic cooperation
Dialogue: 0,0:11:27.92,0:11:30.81,Default,,0000,0000,0000,,in order to produce\Nthe more highly specialized products
Dialogue: 0,0:11:30.83,0:11:35.12,Default,,0000,0000,0000,,that define a modern economy.
Dialogue: 0,0:11:36.04,0:11:40.73,Default,,0000,0000,0000,,Now, the old economics\Nis correct, of course,
Dialogue: 0,0:11:40.75,0:11:44.31,Default,,0000,0000,0000,,that competition plays a crucial role\Nin how markets work,
Dialogue: 0,0:11:44.33,0:11:46.43,Default,,0000,0000,0000,,but what it fails to see
Dialogue: 0,0:11:46.46,0:11:51.14,Default,,0000,0000,0000,,is that it is largely a competition\Nbetween highly cooperative groups --
Dialogue: 0,0:11:51.17,0:11:55.93,Default,,0000,0000,0000,,competition between firms,\Ncompetition between networks of firms,
Dialogue: 0,0:11:55.96,0:11:58.64,Default,,0000,0000,0000,,competition between nations --
Dialogue: 0,0:11:58.67,0:12:02.56,Default,,0000,0000,0000,,and anyone who has ever run\Na successful business knows
Dialogue: 0,0:12:02.58,0:12:06.33,Default,,0000,0000,0000,,that building a cooperative team\Nby including the talents of everyone
Dialogue: 0,0:12:07.79,0:12:12.21,Default,,0000,0000,0000,,is almost always a better strategy\Nthan just a bunch of selfish jerks.
Dialogue: 0,0:12:13.42,0:12:18.25,Default,,0000,0000,0000,,So how do we leave neoliberalism behind
Dialogue: 0,0:12:20.46,0:12:23.92,Default,,0000,0000,0000,,and build a more sustainable,\Nmore prosperous
Dialogue: 0,0:12:25.04,0:12:28.02,Default,,0000,0000,0000,,and more equitable society?
Dialogue: 0,0:12:28.04,0:12:31.54,Default,,0000,0000,0000,,The new economics suggests\Njust five rules of thumb.
Dialogue: 0,0:12:32.04,0:12:38.58,Default,,0000,0000,0000,,First is that successful economies\Nare not jungles, they're gardens,
Dialogue: 0,0:12:39.67,0:12:43.35,Default,,0000,0000,0000,,which is to say that markets,
Dialogue: 0,0:12:43.38,0:12:46.17,Default,,0000,0000,0000,,like gardens, must be tended,
Dialogue: 0,0:12:47.21,0:12:51.93,Default,,0000,0000,0000,,that the market is the greatest\Nsocial technology ever invented
Dialogue: 0,0:12:51.96,0:12:53.43,Default,,0000,0000,0000,,for solving human problems,
Dialogue: 0,0:12:53.46,0:12:58.64,Default,,0000,0000,0000,,but unconstrained by social norms\Nor democratic regulation,
Dialogue: 0,0:12:58.67,0:13:02.02,Default,,0000,0000,0000,,markets inevitably create\Nmore problems than they solve.
Dialogue: 0,0:13:02.04,0:13:03.31,Default,,0000,0000,0000,,Climate change,
Dialogue: 0,0:13:03.33,0:13:05.31,Default,,0000,0000,0000,,the great financial crisis of 2008
Dialogue: 0,0:13:05.33,0:13:07.04,Default,,0000,0000,0000,,are two easy examples.
Dialogue: 0,0:13:07.50,0:13:10.98,Default,,0000,0000,0000,,The second rule is
Dialogue: 0,0:13:11.00,0:13:15.00,Default,,0000,0000,0000,,that inclusion creates economic growth.
Dialogue: 0,0:13:16.21,0:13:18.77,Default,,0000,0000,0000,,So the neoliberal idea
Dialogue: 0,0:13:18.79,0:13:21.39,Default,,0000,0000,0000,,that inclusion is this fancy luxury
Dialogue: 0,0:13:21.42,0:13:25.92,Default,,0000,0000,0000,,to be afforded if and when we have growth\Nis both wrong and backwards.
Dialogue: 0,0:13:27.21,0:13:29.67,Default,,0000,0000,0000,,The economy is people.
Dialogue: 0,0:13:30.67,0:13:32.73,Default,,0000,0000,0000,,Including more people in more ways
Dialogue: 0,0:13:32.75,0:13:36.79,Default,,0000,0000,0000,,is what causes economic growth\Nin market economies.
Dialogue: 0,0:13:37.88,0:13:39.93,Default,,0000,0000,0000,,The third principle
Dialogue: 0,0:13:39.96,0:13:46.14,Default,,0000,0000,0000,,is the purpose of the corporation\Nis not merely to enrich shareholders.
Dialogue: 0,0:13:46.17,0:13:49.93,Default,,0000,0000,0000,,The greatest grift\Nin contemporary economic life
Dialogue: 0,0:13:49.96,0:13:52.93,Default,,0000,0000,0000,,is the neoliberal idea that\Nthe only purpose of the corporation
Dialogue: 0,0:13:52.96,0:13:55.85,Default,,0000,0000,0000,,and the only responsibility of executives
Dialogue: 0,0:13:55.88,0:13:58.96,Default,,0000,0000,0000,,is to enrich themselves and shareholders.
Dialogue: 0,0:13:59.96,0:14:05.39,Default,,0000,0000,0000,,The new economics must and can insist
Dialogue: 0,0:14:05.42,0:14:07.14,Default,,0000,0000,0000,,that the purpose of the corporation
Dialogue: 0,0:14:07.17,0:14:10.06,Default,,0000,0000,0000,,is to improve the welfare\Nof all stakeholders:
Dialogue: 0,0:14:10.08,0:14:12.31,Default,,0000,0000,0000,,customers, workers,
Dialogue: 0,0:14:12.33,0:14:14.42,Default,,0000,0000,0000,,community and shareholders alike.
Dialogue: 0,0:14:16.21,0:14:18.23,Default,,0000,0000,0000,,Rule four:
Dialogue: 0,0:14:18.25,0:14:20.46,Default,,0000,0000,0000,,greed is not good.
Dialogue: 0,0:14:22.58,0:14:26.35,Default,,0000,0000,0000,,Being rapacious\Ndoesn't make you a capitalist,
Dialogue: 0,0:14:26.38,0:14:28.43,Default,,0000,0000,0000,,it makes you a sociopath.
Dialogue: 0,0:14:28.46,0:14:30.89,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:14:30.92,0:14:35.02,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:14:35.04,0:14:40.23,Default,,0000,0000,0000,,And in an economy as dependent\Nupon cooperation at scale as ours,
Dialogue: 0,0:14:40.25,0:14:44.38,Default,,0000,0000,0000,,sociopathy is as bad for business\Nas it is for society.
Dialogue: 0,0:14:45.38,0:14:46.62,Default,,0000,0000,0000,,And fifth and finally,
Dialogue: 0,0:14:48.25,0:14:50.67,Default,,0000,0000,0000,,unlike the laws of physics,
Dialogue: 0,0:14:51.83,0:14:55.38,Default,,0000,0000,0000,,the laws of economics are a choice.
Dialogue: 0,0:14:56.54,0:14:58.23,Default,,0000,0000,0000,,Now, neoliberal economic theory
Dialogue: 0,0:14:58.25,0:15:03.27,Default,,0000,0000,0000,,has sold itself to you\Nas unchangeable natural law,
Dialogue: 0,0:15:03.29,0:15:07.18,Default,,0000,0000,0000,,when in fact it's social norms\Nand constructed narratives
Dialogue: 0,0:15:07.21,0:15:08.67,Default,,0000,0000,0000,,based on pseudoscience.
Dialogue: 0,0:15:09.92,0:15:13.43,Default,,0000,0000,0000,,If we truly want a more equitable,
Dialogue: 0,0:15:13.46,0:15:16.98,Default,,0000,0000,0000,,more prosperous\Nand more sustainable economy,
Dialogue: 0,0:15:17.00,0:15:19.73,Default,,0000,0000,0000,,if we want high-functioning democracies
Dialogue: 0,0:15:19.75,0:15:21.98,Default,,0000,0000,0000,,and civil society,
Dialogue: 0,0:15:22.00,0:15:24.00,Default,,0000,0000,0000,,we must have a new economics.
Dialogue: 0,0:15:24.79,0:15:26.77,Default,,0000,0000,0000,,And here's the good news:
Dialogue: 0,0:15:26.79,0:15:28.85,Default,,0000,0000,0000,,if we want a new economics,
Dialogue: 0,0:15:28.88,0:15:32.77,Default,,0000,0000,0000,,all we have to do is choose to have it.
Dialogue: 0,0:15:32.79,0:15:34.06,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:15:34.08,0:15:39.04,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:15:51.71,0:15:54.88,Default,,0000,0000,0000,,Moderator: So Nick,\NI'm sure you get this question a lot.
Dialogue: 0,0:15:56.33,0:15:59.43,Default,,0000,0000,0000,,If you're so unhappy\Nwith the economic system,
Dialogue: 0,0:15:59.46,0:16:04.18,Default,,0000,0000,0000,,why not just give all your money away\Nand join the 99 percent?
Dialogue: 0,0:16:04.21,0:16:06.98,Default,,0000,0000,0000,,Nick Hanauer: Yeah, no, yes, right.
Dialogue: 0,0:16:07.00,0:16:08.93,Default,,0000,0000,0000,,You get that a lot. You get that a lot.
Dialogue: 0,0:16:08.96,0:16:11.68,Default,,0000,0000,0000,,"If you care so much about taxes,\Nwhy don't you pay more,
Dialogue: 0,0:16:11.71,0:16:14.60,Default,,0000,0000,0000,,and if you care so much about wages,\Nwhy don't you pay more?"
Dialogue: 0,0:16:14.62,0:16:15.92,Default,,0000,0000,0000,,And I could do that.
Dialogue: 0,0:16:17.08,0:16:18.60,Default,,0000,0000,0000,,The problem is,
Dialogue: 0,0:16:18.62,0:16:20.43,Default,,0000,0000,0000,,it doesn't make that much difference,
Dialogue: 0,0:16:20.46,0:16:22.02,Default,,0000,0000,0000,,and I have discovered a strategy
Dialogue: 0,0:16:22.04,0:16:24.98,Default,,0000,0000,0000,,that works literally\Na hundred thousand times better --
Dialogue: 0,0:16:25.00,0:16:26.27,Default,,0000,0000,0000,,Moderator: OK.
Dialogue: 0,0:16:26.29,0:16:29.85,Default,,0000,0000,0000,,NH: which is to use my money\Nto build narratives and to pass laws
Dialogue: 0,0:16:29.88,0:16:31.93,Default,,0000,0000,0000,,that will require\Nall the other rich people
Dialogue: 0,0:16:31.96,0:16:34.02,Default,,0000,0000,0000,,to pay taxes and pay their workers better.
Dialogue: 0,0:16:34.04,0:16:35.85,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:16:35.88,0:16:37.23,Default,,0000,0000,0000,,And so, for example,
Dialogue: 0,0:16:37.25,0:16:40.60,Default,,0000,0000,0000,,the 15-dollar minimum wage\Nthat we cooked up
Dialogue: 0,0:16:40.62,0:16:42.60,Default,,0000,0000,0000,,has now affected 30 million workers.
Dialogue: 0,0:16:42.62,0:16:43.89,Default,,0000,0000,0000,,So that works better.
Dialogue: 0,0:16:43.92,0:16:45.18,Default,,0000,0000,0000,,Moderator: That's great.
Dialogue: 0,0:16:45.21,0:16:47.85,Default,,0000,0000,0000,,If you change your mind,\Nwe'll find some takers for you.
Dialogue: 0,0:16:47.88,0:16:50.33,Default,,0000,0000,0000,,NH: OK. Thank you.\NModerator: Thank you very much.