[Script Info] Title: [Events] Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I am a capitalist, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and after a 30-year career in capitalism Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,spanning three dozen companies Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,generating tens of billions\Nof dollars in market value, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I'm not just in the top one percent,\NI'm in the top 0.1 percent of all earners. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Today, I have come to share\Nthe secrets of our success, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because rich capitalists like me\Nhave never been richer. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So the question is, how do we do it? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,How do we manage to grab Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,an ever-increasing share\Nof the economic pie every year? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Is it that rich people are smarter\Nthan we were 30 years ago? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Is it that we're working harder\Nthan we once did? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Are we taller, better looking? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Sadly, no. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It all comes down to just one thing: Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,economics. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Because, here's the dirty secret. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There was a time in which\Nthe economics profession Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,worked in the public interest for everyone Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but in the neoliberal era, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,today, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they work only for big corporations Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and billionaires, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and that is creating\Na little bit of a problem. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We could choose to enact economic policies Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that raise taxes on the rich, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,regulate powerful corporations,\Nor raise wages for workers. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We have done it before. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But neoliberal economists would warn Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that all of these policies\Nwould be a terrible mistake, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because raising taxes\Nalways kills economic growth, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and and any form of government regulation Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is inefficient, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and raising wages always kills jobs. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Well, as a consequence of that thinking, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,over the last 30 years, in the USA alone, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the top one percent has grown\N21 trillion dollars richer Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,while the bottom 50 percent\Nhave grown 900 billion dollars poorer, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a pattern of widening inequality\Nthat has largely repeated itself Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,across the world. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And yet, as middle class families\Nstruggle to get by Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on wages that have not budged\Nin about 40 years, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,neoliberal economists continue to warn\Nthat the only reasonable response Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to the painful dislocations\Nof austerity and globalization Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is even more austerity and globalization. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, what is a society to do? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Well, it's super-clear to me\Nwhat we need to do. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We need a new economics. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, economics has been described\Nas the dismal science, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and for good reason, because\Nas much as it is taught today, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it isn't a science at all, in spite of\Nall of the dazzling mathematics. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,In fact, a growing number\Nof academics and practitioners Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,have concluded that neoliberal\Neconomic theory is dangerously wrong Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and that today's growing crises\Nof rising inequality Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and growing political instability Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,are the direct result of decades\Nof bad economic theory. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What we now know is that the economics\Nthat made me so rich isn't just wrong, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it's backwards, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because it turns out Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it isn't capital that creates\Neconomic growth, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it's people; Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and it isn't self-interest\Nthat promotes the public good, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it's reciprocity; Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and it isn't competition\Nthat produces our prosperity, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it's cooperation. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What we can now see is that an economics\Nthat is neither just nor inclusive Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,can never sustain the high levels\Nof social cooperation Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,necessary to enable\Na modern society to thrive. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So where did we go wrong? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Well, it turns out\Nthat it's become painfully obvious Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that the fundamental assumptions\Nthat undergird neoliberal economic theory Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,are just objectively false, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and so today first I want to take you\Nthrough some of those mistaken assumptions Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and then after describe where the science\Nsuggests prosperity actually comes from. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So neoliberal assumption number one is Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that the market is an efficient\Nequilibrium system, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which basically means that if one thing\Nin the economy, like wages, goes up, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,another thing in the economy,\Nlike jobs, must go down. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So for example, in Seattle, where I live, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,when in 2014 we passed our nation's\Nfirst 15 dollar minimum wage, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the neoliberals freaked out\Nover their precious equilibrium. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"If you raise the price\Nof labor," they warned, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"business will purchase less of it. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Thousands of low-wage workers\Nwill lose their jobs. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The restaurants will close." Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Except, they didn't. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The unemployment rate fell dramatically. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The restaurant business in Seattle boomed. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Why? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Because there is no equilibrium. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Because raising wages\Ndoesn't kill jobs, it creates them, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because, for instance, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,when restaurant owners are suddenly\Nrequired to pay restaurant workers enough Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,so that now even they can afford\Nto eat in restaurants, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it doesn't shrink the restaurant business, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it grows it, obviously. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,(Applause) Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Thank you. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The second assumption is Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that the price of something\Nis always equal to its value, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which basically means that\Nif you earn 50,000 dollars a year Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and I earn 50 million dollars a year, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that's because I produce\Na thousand times as much value as you. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, it will not surprise you to learn Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that this is a very comforting assumption Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,if you're a CEO paying yourself\N50 million dollars a year Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but paying your workers poverty wages. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But please, take it from somebody\Nwho has run dozens of businesses: Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,this is nonsense. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,People are not paid what they are worth. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They are paid what they have\Nthe power to negotiate, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and wages' falling share of GDP Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is not because workers\Nhave become less productive Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but because employers\Nhave become more powerful. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,(Applause) Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And by pretending that the giant imbalance\Nin power between capital and labor Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,doesn't exist, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,neoliberal economic theory\Nbecame essentially Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a protection racket for the rich. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The third assumption,\Nand by far the most pernicious, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is a behavioral model Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that describes human beings\Nas something called "homo economicus," Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which basically means that\Nwe are all perfectly selfish, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,perfectly rational,\Nand relentlessly self-maximizing. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But just ask yourself, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is it plausible that every single time\Nfor your entire life, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,when you did something\Nnice for somebody else, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,all you were doing was maximizing\Nyour own utility? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Is it plausible that when a soldier jumps\Non a grenade to defend fellow soldiers, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they're just promoting\Ntheir narrow self-interest? Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If you think that's nuts, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,contrary to any reasonable\Nmoral intuition, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that's because it is, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and according to the latest science, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,not true. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But it is this behavioral model Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which is at the cold, cruel heart\Nof neoliberal economics, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and it is as morally corrosive Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,as it is scientifically wrong, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because if we accept at face value Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that humans are fundamentally selfish Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and then we look around the world Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,at all of the unambiguous\Nprosperity in it, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,then it follows logically, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,then it must be true by definition, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that billions of individual\Nacts of selfishness Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,magically transubstantiate\Ninto prosperity and the common good. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If we humans are merely\Nselfish maximizers, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,then selfishness is the cause\Nof our prosperity. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Under this economic logic, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,greed is good, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,widening inequality is efficient, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and the only purpose of the corporation Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,can be to enrich shareholders, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because to do otherwise would be\Nto slow economic growth Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and harm the economy overall. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And it is this gospel of selfishness Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which forms the ideological cornerstone\Nof neoliberal economics, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a way of thinking which has\Nproduced economic policies Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which have enabled me and my rich buddies\Nin the top one percent Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to grab virtually all of the benefits\Nof growth over the last 40 years. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But, if instead Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we accept the latest empirical research, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,real science, which correctly\Ndescribes human beings Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,as highly cooperative, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,reciprocal, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and intuitively moral creatures, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,then it follows logically Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that it must be cooperation Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and not selfishness Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that is the cause of our prosperity,\Nand it isn't our self-interest Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but rather our inherent reciprocity Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that is humanity's economic superpower. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So at the heart of this new economics Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is a story about ourselves that grants us\Npermission to be our best selves, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and, unlike the old economics, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,this is a story that is virtuous Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and also has the virtue of being true. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, I want to emphasize\Nthat this new economics Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is not something I have personally\Nimagined or invented. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Its theories and models\Nare being developed and refined Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in universities around the world Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,building on some of the best\Nnew research in economics, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,complexity theory, evolutionary theory, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,psychology, anthropology,\Nand other disciplines. Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And although this new economics\Ndoes not yet have its own textbook Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,or even a commonly agreed upon name, Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in broad strokes Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,its explanation of where prosperity\Ncomes from goes something like this.