[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.91,0:00:04.48,Default,,0000,0000,0000,,I am a capitalist,
Dialogue: 0,0:00:04.48,0:00:09.59,Default,,0000,0000,0000,,and after a 30-year career in capitalism
Dialogue: 0,0:00:09.77,0:00:11.33,Default,,0000,0000,0000,,spanning three dozen companies
Dialogue: 0,0:00:11.33,0:00:14.52,Default,,0000,0000,0000,,generating tens of billions\Nof dollars in market value,
Dialogue: 0,0:00:14.52,0:00:20.03,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: 0,0:00:21.69,0:00:24.76,Default,,0000,0000,0000,,Today, I have come to share\Nthe secrets of our success,
Dialogue: 0,0:00:24.76,0:00:28.76,Default,,0000,0000,0000,,because rich capitalists like me\Nhave never been richer.
Dialogue: 0,0:00:28.95,0:00:31.94,Default,,0000,0000,0000,,So the question is, how do we do it?
Dialogue: 0,0:00:31.94,0:00:34.13,Default,,0000,0000,0000,,How do we manage to grab
Dialogue: 0,0:00:34.13,0:00:37.61,Default,,0000,0000,0000,,an ever-increasing share\Nof the economic pie every year?
Dialogue: 0,0:00:39.01,0:00:42.81,Default,,0000,0000,0000,,Is it that rich people are smarter\Nthan we were 30 years ago?
Dialogue: 0,0:00:44.01,0:00:46.42,Default,,0000,0000,0000,,Is it that we're working harder\Nthan we once did?
Dialogue: 0,0:00:47.73,0:00:50.49,Default,,0000,0000,0000,,Are we taller, better looking?
Dialogue: 0,0:00:51.50,0:00:53.78,Default,,0000,0000,0000,,Sadly, no.
Dialogue: 0,0:00:53.78,0:00:56.29,Default,,0000,0000,0000,,It all comes down to just one thing:
Dialogue: 0,0:00:56.29,0:00:58.24,Default,,0000,0000,0000,,economics.
Dialogue: 0,0:00:58.24,0:01:00.46,Default,,0000,0000,0000,,Because, here's the dirty secret.
Dialogue: 0,0:01:00.46,0:01:02.80,Default,,0000,0000,0000,,There was a time in which\Nthe economics profession
Dialogue: 0,0:01:02.80,0:01:04.74,Default,,0000,0000,0000,,worked in the public interest for everyone
Dialogue: 0,0:01:04.74,0:01:06.82,Default,,0000,0000,0000,,but in the neoliberal era,
Dialogue: 0,0:01:06.82,0:01:07.87,Default,,0000,0000,0000,,today,
Dialogue: 0,0:01:07.87,0:01:10.73,Default,,0000,0000,0000,,they work only for big corporations
Dialogue: 0,0:01:10.73,0:01:12.33,Default,,0000,0000,0000,,and billionaires,
Dialogue: 0,0:01:12.33,0:01:15.55,Default,,0000,0000,0000,,and that is creating\Na little bit of a problem.
Dialogue: 0,0:01:16.01,0:01:19.54,Default,,0000,0000,0000,,We could choose to enact economic policies
Dialogue: 0,0:01:19.54,0:01:21.89,Default,,0000,0000,0000,,that raise taxes on the rich,
Dialogue: 0,0:01:21.89,0:01:26.62,Default,,0000,0000,0000,,regulate powerful corporations,\Nor raise wages for workers.
Dialogue: 0,0:01:26.87,0:01:28.20,Default,,0000,0000,0000,,We have done it before.
Dialogue: 0,0:01:28.20,0:01:30.50,Default,,0000,0000,0000,,But neoliberal economists would warn
Dialogue: 0,0:01:30.50,0:01:34.30,Default,,0000,0000,0000,,that all of these policies\Nwould be a terrible mistake,
Dialogue: 0,0:01:34.30,0:01:38.11,Default,,0000,0000,0000,,because raising taxes\Nalways kills economic growth,
Dialogue: 0,0:01:38.11,0:01:40.64,Default,,0000,0000,0000,,and and any form of government regulation
Dialogue: 0,0:01:40.64,0:01:42.38,Default,,0000,0000,0000,,is inefficient,
Dialogue: 0,0:01:42.38,0:01:44.92,Default,,0000,0000,0000,,and raising wages always kills jobs.
Dialogue: 0,0:01:45.77,0:01:48.52,Default,,0000,0000,0000,,Well, as a consequence of that thinking,
Dialogue: 0,0:01:48.52,0:01:52.93,Default,,0000,0000,0000,,over the last 30 years, in the USA alone,
Dialogue: 0,0:01:52.93,0:01:57.36,Default,,0000,0000,0000,,the top one percent has grown\N21 trillion dollars richer
Dialogue: 0,0:01:57.36,0:02:02.81,Default,,0000,0000,0000,,while the bottom 50 percent\Nhave grown 900 billion dollars poorer,
Dialogue: 0,0:02:02.81,0:02:06.86,Default,,0000,0000,0000,,a pattern of widening inequality\Nthat has largely repeated itself
Dialogue: 0,0:02:06.86,0:02:08.23,Default,,0000,0000,0000,,across the world.
Dialogue: 0,0:02:08.23,0:02:13.52,Default,,0000,0000,0000,,And yet, as middle class families\Nstruggle to get by
Dialogue: 0,0:02:13.52,0:02:16.79,Default,,0000,0000,0000,,on wages that have not budged\Nin about 40 years,
Dialogue: 0,0:02:16.79,0:02:20.50,Default,,0000,0000,0000,,neoliberal economists continue to warn\Nthat the only reasonable response
Dialogue: 0,0:02:20.50,0:02:25.27,Default,,0000,0000,0000,,to the painful dislocations\Nof austerity and globalization
Dialogue: 0,0:02:25.27,0:02:28.92,Default,,0000,0000,0000,,is even more austerity and globalization.
Dialogue: 0,0:02:29.12,0:02:31.97,Default,,0000,0000,0000,,So, what is a society to do?
Dialogue: 0,0:02:33.19,0:02:36.11,Default,,0000,0000,0000,,Well, it's super-clear to me\Nwhat we need to do.
Dialogue: 0,0:02:36.11,0:02:39.78,Default,,0000,0000,0000,,We need a new economics.
Dialogue: 0,0:02:39.78,0:02:43.51,Default,,0000,0000,0000,,So, economics has been described\Nas the dismal science,
Dialogue: 0,0:02:43.51,0:02:44.88,Default,,0000,0000,0000,,and for good reason, because\Nas much as it is taught today,
Dialogue: 0,0:02:44.88,0:02:51.62,Default,,0000,0000,0000,,it isn't a science at all, in spite of\Nall of the dazzling mathematics.
Dialogue: 0,0:02:51.62,0:02:54.97,Default,,0000,0000,0000,,In fact, a growing number\Nof academics and practitioners
Dialogue: 0,0:02:54.97,0:03:00.100,Default,,0000,0000,0000,,have concluded that neoliberal\Neconomic theory is dangerously wrong
Dialogue: 0,0:03:00.100,0:03:04.88,Default,,0000,0000,0000,,and that today's growing crises\Nof rising inequality
Dialogue: 0,0:03:04.88,0:03:06.55,Default,,0000,0000,0000,,and growing political instability
Dialogue: 0,0:03:06.55,0:03:11.63,Default,,0000,0000,0000,,are the direct result of decades\Nof bad economic theory.
Dialogue: 0,0:03:11.63,0:03:17.19,Default,,0000,0000,0000,,What we now know is that the economics\Nthat made me so rich isn't just wrong,
Dialogue: 0,0:03:17.19,0:03:19.52,Default,,0000,0000,0000,,it's backwards,
Dialogue: 0,0:03:19.52,0:03:22.19,Default,,0000,0000,0000,,because it turns out
Dialogue: 0,0:03:22.19,0:03:25.17,Default,,0000,0000,0000,,it isn't capital that creates\Neconomic growth,
Dialogue: 0,0:03:25.17,0:03:27.32,Default,,0000,0000,0000,,it's people;
Dialogue: 0,0:03:27.32,0:03:32.05,Default,,0000,0000,0000,,and it isn't self-interest\Nthat promotes the public good,
Dialogue: 0,0:03:32.05,0:03:34.19,Default,,0000,0000,0000,,it's reciprocity;
Dialogue: 0,0:03:34.19,0:03:38.96,Default,,0000,0000,0000,,and it isn't competition\Nthat produces our prosperity,
Dialogue: 0,0:03:38.96,0:03:41.07,Default,,0000,0000,0000,,it's cooperation.
Dialogue: 0,0:03:42.35,0:03:46.14,Default,,0000,0000,0000,,What we can now see is that an economics\Nthat is neither just nor inclusive
Dialogue: 0,0:03:46.14,0:03:50.94,Default,,0000,0000,0000,,can never sustain the high levels\Nof social cooperation
Dialogue: 0,0:03:50.94,0:03:54.13,Default,,0000,0000,0000,,necessary to enable\Na modern society to thrive.
Dialogue: 0,0:03:54.13,0:03:57.54,Default,,0000,0000,0000,,So where did we go wrong?
Dialogue: 0,0:03:57.71,0:04:01.70,Default,,0000,0000,0000,,Well, it turns out\Nthat it's become painfully obvious
Dialogue: 0,0:04:01.70,0:04:07.52,Default,,0000,0000,0000,,that the fundamental assumptions\Nthat undergird neoliberal economic theory
Dialogue: 0,0:04:07.52,0:04:10.07,Default,,0000,0000,0000,,are just objectively false,
Dialogue: 0,0:04:10.85,0:04:14.97,Default,,0000,0000,0000,,and so today first I want to take you\Nthrough some of those mistaken assumptions
Dialogue: 0,0:04:14.97,0:04:20.48,Default,,0000,0000,0000,,and then after describe where the science\Nsuggests prosperity actually comes from.
Dialogue: 0,0:04:21.71,0:04:25.75,Default,,0000,0000,0000,,So neoliberal assumption number one is
Dialogue: 0,0:04:25.75,0:04:30.27,Default,,0000,0000,0000,,that the market is an efficient\Nequilibrium system,
Dialogue: 0,0:04:30.27,0:04:36.08,Default,,0000,0000,0000,,which basically means that if one thing\Nin the economy, like wages, goes up,
Dialogue: 0,0:04:36.08,0:04:40.26,Default,,0000,0000,0000,,another thing in the economy,\Nlike jobs, must go down.
Dialogue: 0,0:04:41.31,0:04:44.47,Default,,0000,0000,0000,,So for example, in Seattle, where I live,
Dialogue: 0,0:04:44.47,0:04:50.28,Default,,0000,0000,0000,,when in 2014 we passed our nation's\Nfirst 15 dollar minimum wage,
Dialogue: 0,0:04:50.28,0:04:55.28,Default,,0000,0000,0000,,the neoliberals freaked out\Nover their precious equilibrium.
Dialogue: 0,0:04:55.28,0:04:58.11,Default,,0000,0000,0000,,"If you raise the price\Nof labor," they warned,
Dialogue: 0,0:04:58.11,0:05:00.53,Default,,0000,0000,0000,,"business will purchase less of it.
Dialogue: 0,0:05:00.53,0:05:03.10,Default,,0000,0000,0000,,Thousands of low-wage workers\Nwill lose their jobs.
Dialogue: 0,0:05:03.10,0:05:04.85,Default,,0000,0000,0000,,The restaurants will close."
Dialogue: 0,0:05:04.85,0:05:08.46,Default,,0000,0000,0000,,Except, they didn't.
Dialogue: 0,0:05:09.16,0:05:13.37,Default,,0000,0000,0000,,The unemployment rate fell dramatically.
Dialogue: 0,0:05:13.37,0:05:16.37,Default,,0000,0000,0000,,The restaurant business in Seattle boomed.
Dialogue: 0,0:05:16.37,0:05:18.17,Default,,0000,0000,0000,,Why?
Dialogue: 0,0:05:18.17,0:05:21.94,Default,,0000,0000,0000,,Because there is no equilibrium.
Dialogue: 0,0:05:21.94,0:05:25.21,Default,,0000,0000,0000,,Because raising wages\Ndoesn't kill jobs, it creates them,
Dialogue: 0,0:05:25.21,0:05:26.68,Default,,0000,0000,0000,,because, for instance,
Dialogue: 0,0:05:26.68,0:05:31.43,Default,,0000,0000,0000,,when restaurant owners are suddenly\Nrequired to pay restaurant workers enough
Dialogue: 0,0:05:31.43,0:05:35.35,Default,,0000,0000,0000,,so that now even they can afford\Nto eat in restaurants,
Dialogue: 0,0:05:35.35,0:05:37.61,Default,,0000,0000,0000,,it doesn't shrink the restaurant business,
Dialogue: 0,0:05:37.61,0:05:40.25,Default,,0000,0000,0000,,it grows it, obviously.
Dialogue: 0,0:05:40.25,0:05:43.91,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:05:43.91,0:05:45.91,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:05:46.49,0:05:49.74,Default,,0000,0000,0000,,The second assumption is
Dialogue: 0,0:05:49.74,0:05:55.18,Default,,0000,0000,0000,,that the price of something\Nis always equal to its value,
Dialogue: 0,0:05:55.18,0:05:58.68,Default,,0000,0000,0000,,which basically means that\Nif you earn 50,000 dollars a year
Dialogue: 0,0:05:58.68,0:06:01.47,Default,,0000,0000,0000,,and I earn 50 million dollars a year,
Dialogue: 0,0:06:01.47,0:06:06.54,Default,,0000,0000,0000,,that's because I produce\Na thousand times as much value as you.
Dialogue: 0,0:06:06.83,0:06:12.22,Default,,0000,0000,0000,,Now, it will not surprise you to learn
Dialogue: 0,0:06:12.22,0:06:14.13,Default,,0000,0000,0000,,that this is a very comforting assumption
Dialogue: 0,0:06:14.13,0:06:16.54,Default,,0000,0000,0000,,if you're a CEO paying yourself\N50 million dollars a year
Dialogue: 0,0:06:16.54,0:06:19.20,Default,,0000,0000,0000,,but paying your workers poverty wages.
Dialogue: 0,0:06:19.78,0:06:24.01,Default,,0000,0000,0000,,But please, take it from somebody\Nwho has run dozens of businesses:
Dialogue: 0,0:06:24.01,0:06:26.50,Default,,0000,0000,0000,,this is nonsense.
Dialogue: 0,0:06:26.50,0:06:28.81,Default,,0000,0000,0000,,People are not paid what they are worth.
Dialogue: 0,0:06:28.81,0:06:32.14,Default,,0000,0000,0000,,They are paid what they have\Nthe power to negotiate,
Dialogue: 0,0:06:32.14,0:06:34.82,Default,,0000,0000,0000,,and wages' falling share of GDP
Dialogue: 0,0:06:34.82,0:06:38.27,Default,,0000,0000,0000,,is not because workers\Nhave become less productive
Dialogue: 0,0:06:38.27,0:06:41.62,Default,,0000,0000,0000,,but because employers\Nhave become more powerful.
Dialogue: 0,0:06:41.62,0:06:44.71,Default,,0000,0000,0000,,(Applause)
Dialogue: 0,0:06:46.94,0:06:52.70,Default,,0000,0000,0000,,And by pretending that the giant imbalance\Nin power between capital and labor
Dialogue: 0,0:06:52.70,0:06:54.66,Default,,0000,0000,0000,,doesn't exist,
Dialogue: 0,0:06:54.66,0:06:58.06,Default,,0000,0000,0000,,neoliberal economic theory\Nbecame essentially
Dialogue: 0,0:06:58.06,0:07:01.15,Default,,0000,0000,0000,,a protection racket for the rich.
Dialogue: 0,0:07:01.81,0:07:04.01,Default,,0000,0000,0000,,The third assumption,\Nand by far the most pernicious,
Dialogue: 0,0:07:04.01,0:07:05.94,Default,,0000,0000,0000,,is a behavioral model
Dialogue: 0,0:07:05.94,0:07:09.69,Default,,0000,0000,0000,,that describes human beings\Nas something called "homo economicus,"
Dialogue: 0,0:07:09.69,0:07:14.17,Default,,0000,0000,0000,,which basically means that\Nwe are all perfectly selfish,
Dialogue: 0,0:07:14.17,0:07:18.72,Default,,0000,0000,0000,,perfectly rational,\Nand relentlessly self-maximizing.
Dialogue: 0,0:07:19.61,0:07:21.87,Default,,0000,0000,0000,,But just ask yourselves,
Dialogue: 0,0:07:21.87,0:07:25.65,Default,,0000,0000,0000,,is it plausible that every single time\Nfor your entire life,
Dialogue: 0,0:07:25.65,0:07:27.85,Default,,0000,0000,0000,,when you did something\Nnice for somebody else,
Dialogue: 0,0:07:27.85,0:07:31.19,Default,,0000,0000,0000,,all you were doing was maximizing\Nyour own utility?
Dialogue: 0,0:07:31.19,0:07:34.96,Default,,0000,0000,0000,,Is it plausible that when a soldier jumps\Non a grenade to defend fellow soldiers,
Dialogue: 0,0:07:34.96,0:07:37.77,Default,,0000,0000,0000,,they're just promoting\Ntheir narrow self-interest?
Dialogue: 0,0:07:37.77,0:07:39.58,Default,,0000,0000,0000,,If you think that's nuts,
Dialogue: 0,0:07:39.58,0:07:42.72,Default,,0000,0000,0000,,contrary to any reasonable\Nmoral intuition,
Dialogue: 0,0:07:42.72,0:07:44.57,Default,,0000,0000,0000,,that's because it is,
Dialogue: 0,0:07:44.57,0:07:46.39,Default,,0000,0000,0000,,and according to the latest science,
Dialogue: 0,0:07:46.39,0:07:48.02,Default,,0000,0000,0000,,not true.
Dialogue: 0,0:07:48.02,0:07:50.56,Default,,0000,0000,0000,,But it is this behavioral model
Dialogue: 0,0:07:50.56,0:07:53.90,Default,,0000,0000,0000,,which is at the cold, cruel heart\Nof neoliberal economics,
Dialogue: 0,0:07:53.90,0:07:58.23,Default,,0000,0000,0000,,and it is as morally corrosive
Dialogue: 0,0:07:58.23,0:08:00.14,Default,,0000,0000,0000,,as it is scientifically wrong,
Dialogue: 0,0:08:00.14,0:08:05.18,Default,,0000,0000,0000,,because if we accept at face value
Dialogue: 0,0:08:05.18,0:08:07.96,Default,,0000,0000,0000,,that humans are fundamentally selfish
Dialogue: 0,0:08:07.96,0:08:10.04,Default,,0000,0000,0000,,and then we look around the world
Dialogue: 0,0:08:10.04,0:08:14.01,Default,,0000,0000,0000,,at all of the unambiguous\Nprosperity in it,
Dialogue: 0,0:08:14.01,0:08:17.33,Default,,0000,0000,0000,,then it follows logically,
Dialogue: 0,0:08:17.33,0:08:19.10,Default,,0000,0000,0000,,then it must be true by definition,
Dialogue: 0,0:08:19.10,0:08:22.73,Default,,0000,0000,0000,,that billions of individual\Nacts of selfishness
Dialogue: 0,0:08:22.73,0:08:26.78,Default,,0000,0000,0000,,magically transubstantiate\Ninto prosperity and the common good.
Dialogue: 0,0:08:26.94,0:08:29.83,Default,,0000,0000,0000,,If we humans are merely\Nselfish maximizers,
Dialogue: 0,0:08:29.83,0:08:33.37,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.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, market capitalism\Nis an evolutionary system
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in which prosperity emerges
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,through a positive feedback loop
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,between increasing amounts of innovation\Nand increasing amounts of consumer demand.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Innovation is the process\Nby which we solve human problems,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,consumer demand is the mechanism\Nthrough which the market selects
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for useful innovations,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and as we solve more problems,\Nwe become more prosperous.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But as we become more prosperous,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,our problems and solutions
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,become more complex,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and this increasing technical complexity
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,requires ever higher levels\Nof social and economic cooperation
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in order to produce the more\Nhighly specialized products
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that define a modern economy.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, the old economics\Nis correct, of course,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that competition plays a crucial role\Nin how markets work,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but what it fails to see
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is that it is largely a competition\Nbetween highly cooperative groups,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,competition between firms,\Ncompetition between networks of firms,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,competition between nations,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and anyone who has ever run\Na successful business knows
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that building a cooperative team\Nby including the talents of everyone
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is almost always a better strategy\Nthan just a bunch of selfish jerks.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So how do we leave neoliberalism behind
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and build a more sustainable,\Nmore prosperous,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and more equitable society?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The new economics suggests\Njust five rules of thumb.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,First is that successful economies\Nare not jungles, they're gardens,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which is to say that markets,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,like gardens, must be tended,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that the market is the greatest\Nsocial technology ever invented
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for solving human problems,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but unconstrained by social norms\Nor democratic regulation,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,markets inevitably create\Nmore problems than they solve.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Climate change,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the great financial crisis of 2008
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,are two easy examples.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The second rule is
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that inclusion creates economic growth.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So the neoliberal idea
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that inclusion is this fancy luxury
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to be afforded if and when we have growth\Nis both wrong and backwards.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The economy is people.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Including more people in more ways
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is what causes economic growth\Nin market economies.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The third principle
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is the purpose of the corporation\Nis not merely to enrich shareholders.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The greatest grift\Nin contemporary economic life
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is the neoliberal idea that\Nthe only purpose of the corporation
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and the only responsibility of executives
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is to enrich themselves and shareholders.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The new economics must and can insist
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that the purpose of the corporation
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is to improve the welfare\Nof all stakeholders:
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,customers, workers,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,community and shareholders alike.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Rule four: greed is not good.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Being rapacious doesn't\Nmake you a capitalist,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it makes you a sociopath.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,(Laughter)
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 in an economy as dependent\Nupon cooperation at scale as ours,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,sociopathy is as bad for business\Nas it is for society.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And fifth and finally,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,unlike the laws of physics,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the laws of economics are a choice.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, neoliberal economic theory
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,has sold itself to you\Nas unchangeable natural law,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,when in fact it's social norms\Nand constructive narratives
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,based on pseudoscience.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If we truly want a more equitable,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,more prosperous\Nand more sustainable economy,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,if we want high-functioning democracies
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and civil society,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we must have a new economics.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And here's the good news:
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,if we want a new economics,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,all we have to do is choose to have it.
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,,(Applause)
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Moderator: So Nick, I'm sure\Nyou get this question a lot.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If you're so unhappy\Nwith the economic system,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,why not just give all your money away\Nand join the 99 percent?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Nick Hanauer: Yeah, no, yes, right.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You get that a lot. You get that a lot.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"If you care so much about taxes,\Nwhy don't you pay more,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and if you care so much about wages,\Nwhy don't you pay more?"
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And I could do that.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The problem is,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it doesn't make that much difference,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and I have discovered a strategy
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that works literally\Na hundred thousand times better --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Moderator: OK.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,NH: -- which is to use my money\Nto build narratives and to pass laws
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that will require all\Nthe other rich people
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to pay taxes and pay their workers better.
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 so, for example,\Nthe 15 dollar minimum wage
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that we cooked up has now affected\N30 million workers.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So that works better.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Moderator: That's great.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If you change your mind, we'll find\Nsome takers for you.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,NH: OK. Thank you.\NModerator: Thank you very much.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,(Applause)