Don't forget, working & middle class workers create even more jobs when they have enough money to start their own businesses, grow them, & hire more workers.
This is not what creates the jobs, demand for a service or product create the job. The people who start their own businesses are only bridging the gap between the demand and the worker. If they didn’t start that business someone else would. They are not job creators.
Reaganomics was the beginning of the end of the true American middle class. Stockholders became more important than workers. It was the beginning of big box stores and chains. It eliminated a lot of the local business and mom and pop stores, which were vital to their local areas.
Agreed - and I do appreciate the way he separates political view points on social rights issues from his economic educational ones. It can appeal to a potentially less defensive audience….
Probably is many people don't question what they're told. Many people will watch this video and call is a lie just because it wasn't the first thing they were taught about the subject.
Not only is it not obvious, but it's incorrect. Reich is spouting the old Keynesian fallacy that "consumption drives the economy". Jobs are the means, not the ends, of economic activity. The government could create several million jobs overnight by simply drafting everyone into the army, but that wouldn't create prosperity because we can't eat tanks or bullets. Real prosperity comes when there is a large and diverse capital structure (often funded by the wealthy and their investments, which Reich loves to attack) that is able to produce a broad variety of goods and services that people can use. The fewer jobs it takes to staff that capital structure, the better, because labor is a cost. The world is more prosperous today because, thanks to more capital invested per worker, it takes *less* jobs to produce the things we consume than it did in the past.
I know! I sound like a broken record when I hear the people say, oh if those bums just get a job... no it's not that! Welfare is about circulation of capital.. ... ... 😮
@@mlh5434scientific America, the magazine, showed how only 126 companies own 60 % of all corporations, globally. The mom and pop store is almost gone. And Walmart, other mega corporate interests manipulate politics to suppress economic prosperity. 7.25 minimum wages, in the US, is absolutely wrong! Diversity of companies, growing innovation by competition. Seriously! The US is putting huge tariffs on Chinese electric vehicles. Pushing out competition and limiting consumers from lower more affordable greener cars. Musk is happy! I'm not! Competition? Where?
@@mlh5434 What asinine tripe. Workers drive the economy. Workers can work without a boss but a boss can't do shit without workers. Billionaires should be taxed into nonexistence.
Trickle Down never worked. 735 American billionaires buy 1 pair of blue jeans to wear once every day for the next year at $50.00 a pair. This would yield, $13.5 million dollars. Then 330+ million Americans buy 1 pair of blue jeans at the same price to last them the next 5 years, this would yield $16.5 BILLION dollars. The government (both state & federal) get their sales taxes, and income taxes from all of the logistical employment it creates to move 330millon pairs of jeans, from the textile manufacturer, the shipper, the warehouse receiver, (and taxes in fuel)... There are far more jobs created with the masses than a few billionaires. Trickle up is how it works.
@@Craxin01There's no such thing. The "hoarded" wealth is still circulating, lent out to individuals and corporations in the form of loans, stocks and bonds.
@@3namechangezalowdevry90day7 Yep. The billionaires are billionaires because the company whose stock they own owes them money. People need to learn how double-entry bookkeeping works.
Thank you. Economics 101. Remember, businesses are created to generate a demand or meet a pent-up demand. This only works if the consumer has the purchasing power. You may eliminate all business taxes but if the consumer can't buy, the business is finished.
No, businesses cannot generate demand. They produce for an existing or predicted demand. On predicting demand they may be right or wrong, but they do not generate demand.
@@WildBill99x Remember pet-rocks? No demand for that crap until someone thought it would generate interest. In either case, when consumers have little or no money to spend, aggregate demand declines.
@@thegenialdecepticon5244@jakobthelibrarycard6261 Whoa, why the hostility out of nowhere? OP didn't do anything to you that was worthy of this kind of response. (So what if what they said was basic economics? It was a good summary. 🙂) When people talk to other people like you just did, I think they are intending to come off as highly intelligent. Except it backfires, because instead of sounding smarter than everyone, they just sound like a know-it-all jerk. You probably are really smart!! 🙂 But you're never going to get people to listen to you and to respect you if you behave like you're better than they are. Intelligent people recognize their intelligence, but highly intelligent people see the value in not talking down to others.
"Middle out" is another way it's been phrased by economists, symbolizing growth outward so that lateral expansion is complemented by broader upward mobility across different sectors of the economy.
Big corporations don't create the most job. Main street businesses do. If you keep inviting big box companies to your town, they might create some jobs, but the profits are sent back to the headquarters in a different location. If the jobs don't pay enough (which is most of the time these days), then your town might get the benefit of a meager amount of taxation from the workers, but your state loses by having to support those workers with food and housing assistance. Your own taxes don't go to improvement or upkeep of your town, but to the state and federal government to support the low wage workers. You end up paying for the "privilege" of having the big box stores loot your town if your town or state give them tax breaks or subsidies to open up a location there.
The state gets sales tax money from the goods bought at that store and the county gets money from the property taxes paid by the store workers who live in the area. It seems you think that most workers need food and housing assistance. This is incorrect. Only 12.5% of the population get SNAP benefits. The big stores provide goods at cheaper prices so the poorest people benefit. As for most jobs not paying enough, in 1985 when I graduated high school minimum wage was $3.35 an hour. I could not move out on my own, or even with a friend. Now it's $7.25 in the US and in many places it's actually much higher than that. In California fast food workers earn $20 an hour. So, you can move out on your own.
@@twelvestitches984 Are you referring to big box stores? Usually those big chains, Amazon etc they get many of those taxes back, real estate, payroll, not to mention free perks like new highway off ramps, road expansion all paid by the taxpayer. Then to make things worse, all of those corporate giveaways are usually blocked from public view.
@@JarheadMcLovin States/cities do entice companies like Amazon and others to build a factory in their community but those states/cities earn much more from the taxes the workers must pay. This joker is constantly trying to make you believe that all of your problems are caused by big companies. Those companies are producing things that you CANNOT produce. Cuba doesn't have any corporations, neither does North Korea. They also don't have much of a selection of food or products or services.
@@JarheadMcLovin yeah. it is a complex system but the person completely ignores that the owners of these corporations, and their companies, pay FAR lower taxes than the average consumer.
@@Immacu1atedo you see poor people going broke because they can’t afford their Ferrari car payments? Or are they poor because they’re underpaid by the crooks who drive the Ferraris?
Nobody is expected to make a living from minimum wage which is why only a tiny amount of people make it when they are just starting out to gain experience.
What does that even mean? What's the cost of living in Australia? Is it standard across the country? How much taxes do you pay? What's your inflation level? Throwing a random number out there means NOTHING...
and statistics help people see where those results lead people have you seen Australia's wild life they need to be good at medicine and are ahead of us in fact
You are a true patriot, Secretary Reich! I deeply appreciate your determination to present these videos for the education and welfare of the American public/proletariat! Thank you!
@@nadominhoca Admitting you're not a worker since you just used them and not us, no surprise since you also put "truth" in quotes as if you know better. But to answer your question: act accordingly with collective bargaining, i.e., voting and unionization.
@@slothachunk Gotta love how judgemental people are these days... especially behind the keyboards... But hey, you seem to know everything and have a higher moral compass... and good luck with your union comrades..
@@nadominhoca says the one who uses the word comrades to try to union bash... behind a keyboard. But hey, who needs a moral compass when you have hypocrisy, right?
It was nothing at all to do with creating a workforce that could afford to buy the products. It was to cut the turnover and training time of the labour force. As always, Reich is lying to you guys. He’s certainly not “on point”.
Small businesses are better job creators and they're being squeezed out by giant corporations. What happens when big corporations merge? Layoffs happen. Small local businesses don't have mergers.
@@alanbailey5621 Well its neither free enterprise nor capitalism. What we're under is called "mercantilism." Capitalism is an idea that has only ever existed on paper. How do I know? Because under the theory of capitalism there would be no long-term profits because when some firm is making short-term profits other firms will join that industry and compete until there are no longer short-term profits. So if there are no long term profits under capitalism, then how in the hell do we have an institution like Wall Street whose purpose is to distribute long-term profits? Adam Smith called stock market workers "unproductive labor" because they didn't produce anything and because he was making fun of them.
@havable What you're describing is known as perfect competition, which is impossible under unfettered capitalism. That's because unregulated markets are eventually monopolized, and at which point profits are extracted at will. We are currently seeing the impact of that in our present oligopolistic markets that extract record profits which comprise 53% of current inflation.
@@jakobthelibrarycard6261 I love this quote from Patton Oswalt: _"You’ve gotta respect everyone’s beliefs."_ No, you don’t. That’s what gets us in trouble! Look, you have to acknowledge everyone’s beliefs, and then you have to reserve the right to go: _"That is fucking stupid. Are you kidding me?"_
What kills me the most, for 20 years amazon didn't have to collect sales tax while during that same period mom and pop's across the country got hammered with that requirement. Of course now that Amazon has a market cap of near $2 trillion it can now collect sales tax and put anyone out of business.
@@anotherinternetperson7410 it ended in 2016.... The payroll and real estate taxes they are still getting back. And the warehouses, the perks that are negotiated are still signed behind closed doors.
Years ago I tried to explain this to a boss and they looked confused for a while then they got it. But told me it will never happen. My response was, then stop whining about sales being down. If your employees cannot afford what you are producing then neither can anyone else.
The scammers in my business are always running ads fishing for people to work cheaper than the people they already have.They don't really have shortages of workers they only have a shortage of free and really cheap.
@@ThatOpalGuy California just made wage theft a felony but they create themselves a loophole by saying it is impossible to prove intentional.If the employer decides not to pay the employee for any reason it is intentional.I am currently in a felony wage theft dispute with an employer in California and the labor commissioner is trying to claim that turning an employer in for felony wage theft is against company policies and not a retaliation for engaging in a protected activity in all 50 states and beyond.They choose the employers handwritten cooked up alternate records over the computer printouts,photos and screenshots that I have.They are psychotic corrupt commies.
@@ThatOpalGuy Here is the City of Fairfield California saying that they are only 40% staffed so consequently they have to send their work to the dealers and pay $200 an hour.This is a criminal no-poach and wage fixing agreement and a tax payer fucking fraud out.They could raise the wages a few dollars and fill those positions instantly but are chosing not to at major tax payer expense."The City of Fairfield’s main shop is at 33% staffing and its public safety shop is at 60% (with 42% overall). While one’s first thought might be to just send the work out, it's unfortunately not that simple."
@@ThatOpalGuy Can you imagine having a government job and saying this stupid shit on record?"The City of Fairfield’s main shop is at 33% staffing and its public safety shop is at 60% (with 42% overall). While one’s first thought might be to just send the work out, it's unfortunately not that simple."
These kind of videos inspired me to get business degree. I’m gonna build a company with the strongest workforce in the country, and show them a real business..
@@VVVVV99611 Starting one’s own business will allow you to be free of “trickle down” economics. You can organize it however the fuck you like and see how “trickle up” works for you.
YEP, HENRY FORD was smart to raise the higher minimum wage, to create damand for his products. AT the same time, he ensured his workers would have to be chained to make his goods to pay what his factory workers were buying from him.
Love your sense of humor, Robert, i.e., the upside-down colander. Of course, agree with all that is stated in this video. Keep up the excellent work my brother!
Sure thing rich people are job creators. They just want to make sure that said job pays the least possible, even if it means outsourcing to a country where it pays peanuts. That's always been the American way.
So, are you in favour of not allowing Corporations to outsource their workforce to different countries? Or perhaps increasing tariffs for imported goods? Whats your take here?
@@TutelGaming901What part were you sarcastic about? The left says some pretty nutty things, so no, it’s definitely hard to tell when you are being sarcastic.
@@Silver-jv1us Sarcasm in the comment I was reffering to was "Sure thing rich people are job creators. They just want to make sure that said job pays the least possible, even if it means outsourcing to a country where it pays peanuts." To your point about "nutty things", what are they? If you can't tell when I'm sarcastic that's your problem not mine.
Please give credit to James Couzens. Ford fought the pay raise Also, if corporations can afford billions in stock buybacks, they can afford pay raises for workers
Not the entire story with respect to Ford Motor Company..... Ford had problems retaining employees at $2.60 per day. Every time an employee left that meant some more wasted time in having to bring someone new onboard and training that employee. Thus, Ford increased starting pay to $5.00 per day - which was the highest in the auto industry at the time - to help with employee retention and not having to waste time in training someone new. There is another side to this vast government spending by Franklin D. Roosevelt to get the USA out of a depression. Many economists have argued that such public tax spending did not alleviate much the depression; it was World War II that got the USA out of a depression. Increasing the minimum wage will only have a tendency to increase the unemployment rate, because some employers will not be able to pay the increased minimum wage. Just look at what happened in California when the minimum wage for fast food employees was increased to $20.00 per hour; this caused many fast food places to lay off many fast food employees.
Some people in the comments hating on Robert for speaking the truth. Wondering if they're ignorant by choice, or if corporations are paying them to sell out for a buck. 🤔
Robert is a well known liar for many years, especially when it comes to economics. Actual economists have written articles on this guy as a matter of fact. Articles showing just how wrong he is.
@@Silver-jv1us Everyone's entitled to their own wrong opinion. I bet articles have been written, all paid for by corporations to slander him. Just like when cigarette companies paid doctors to say smoking was harmless.
@@slothachunk Name one such economist? And you’re going to make a bet on articles written without looking at them first? Ballsy. Since we both know you have no such economist that you are basing the crux of your argument on, at least do yourself a service and look up the myth about why Ford paid their workers $5 per day to make Model T’s. You’ll find Reich quite wrong mathematically speaking.
I don't believe in a federal minimum wage. But every state needs to have a livable minimum that is tied to the economy and increases every year with the cost of living.
With globalization and constant consolidation large corporations are providing less jobs. If unchecked this will definitely lead to larger disparities in income not just in America, but everywhere.
@@jamestomkin8784 Yes. And the labor comes from the fruits of capital. Your labor as a pizza delivery person is useless without the capital of the pizza oven. Once you get past tribal sustenance farming, capital and labor work together.
@@jamestomkin8784 stop labor, no *profits* and no *wealth* and no *capital*. Stop capital, no *labor*, no *profits*, no *wealth*. Why do you act like both aren't necessary? Where do you think your salary comes from? Where do you think the factory you're working in and the tools you're using came from? Which would you rather take, an uber ride with no driver, or an uber ride with no car? How many pizzas are you going to cook for your employer without his pizza oven? Don't just sling slogans. Think about what you're saying.
Fantastic breakdown of basic macroeconomic principles. I’m working on a business degree so I can someday create a business conforming with these ideas. Thank you Robert Reich!
I had this conversation with someone on line recently who said “I have relied on a rich man to keep me employed” and I commented that “the demand for the goods and services you produce keeps you employed” and that if that “rich man” had never been born someone else would be the middle man between you and the demand and you would still be employed. He told me “that is your opinion, not his”.
*I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields*
Interesting, This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro Investor?
the first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional.
It’s like pharmaceuticals need to charge insane amounts for R&D…most drugs are just regurgitated formulas now used for a different purpose with a new name.
Some of the biggest job creation in recent history are the 3 geeks in a garage entripeners. Apple, MicroSoft and HP all started literally as 3 geeks in a garage. None of them needed corporate tax cuts to create the jobs.
Trucking companies like Swift, Knight, JB Hunt, etc .. get big tax cuts to hire drives . Not retaining them... So the got big tax cuts, big turn overs... 😂😂 What a shame the USA
Oh man, yeah. I’ve been talking about this for years. I’m a business owner. I have employees. Yes, they make me money and yes I like them and care about them but if they don’t produce more money that they cost, I’m getting rid of them. My goal as a business owner is to create as few jobs as possible. That’s the goal of every business and corporations on earth. It’s all about productivity and making a profit. And if you raise taxes on my business or otherwise increase my operating costs, if I can compensate for that by raising prices and still have work to support my current work force I can’t get rid of them without losing money. Again, I don’t have employees for the sake of taking care of them, I have them because they make me money and I have as few as possible. If I want fewer employees I need to do less work.
Literally economics 101. No money means no demand means no business means no jobs. Artificially holding down wages doesn't help economies, it hurts them. Just appreciating that Robert had to draw and write backwards in all those takes.
@@nadominhoca He didn't mention taxes once. He said that if corporations hold down wages and raise prices they will at some point stop earning because people aren't going to be able to affrord their products. Taxing (reducing the deficit and national debt and allowing for investments in healthcare, education and infrustructure which would make the people richer [ex. better roads will make people use less gas which means they can save money]) and regulatung (for example not allowing corporations to raise prices at extremely fast rates, making their products healthier and more environmentally friendly) corporations would of course help as well, but he didn't mention taxes or regulations just a mathematical formula (that's what it comes down to). Edited due to a minor spelling mistake.
@@TutelGaming901 On your other points of taxing and Regulations.. I fundamentally disagree with them. But its fine, it is ok to have a different view about these things, right?
@@nadominhocaTaxing corporations fairly you mean. Hasn’t been a thing since Reagan. Increasing revenue supports infrastructure, also something that hasn’t been a thing since Reagan.
It certainly is not the richest in America, a fool, and his money is not soon parted . The rich will not give up their money. They are too greedy. The trickle-down effect never happens.
Whenever you bring up the minimum wage, Cons will say that certain jobs shouldn't pay living wages because they're only intended for kids to earn fun money. So how many of the "jobs" these corporations create are intended for adults? And why should we give tax cuts to create poorly paid internships that don't teach any marketable skills?
I don't know what they don't understand about paying very good wages because when the working Americans have more money they spend it on goods and services they need and want this in turn increase sell volumes and corporations profits i most definitely do not understand what they don't understand about this when you lower prices and sell volumes you make more profits
The biggest jobs hoax is the “unemployment rate“ metric. Developed decades ago when it was assumed every able-bodied American was either employed or looking for work, it measured the number who couldn’t find work. It did not and still does not take into account the tens of millions of Americans who CHOOSE not to work. The number you really need is the “workforce participation rate.“ And that number, the number of people choosing not to work and taking benefits is horrifying!
No business owner has ever said "oh, we have customers lined up around the block and not enough employees, but I'm going to have to lay off employees because my taxes are too high!" While pretty much everyone has heard "Well, business is slow, so we're going to have to lay off employees."
FOUNDING Fathers came up with the word COMMONWEALTH ... hmm, I wonder why that word is so sacred to them that they keep repeating that? Common wealth. Common sharing of places Resources taking care of one another.
The government takes SO MUCH OF MY CHECK that I never ever see again and it’s devastating. It feels like I’m working my ass off for literally nothing. And it doesn’t matter how much more I make b/c they just take more and more. Im just glad there are people out there like you who know what they’re talking about and are willing to say it cos I def feel gaslit by our government.
So you're telling me... that making rich people richer, and poor people poorer... does NOT end in a better economy? I don't know... but this dude seems onto something right here...
Robert the thing you didn't mention is the oligarch class of the US thrived during the Great Depression making big profits while the middle and lower classes starved and died.
Once upon a time when Sam Walton was alive, this was his stated belief. These days his company tries to run paying as little as possible and providing the least amount of benefits it can.
Higher wages means more commerce equals more jobs equals basic common sense. I've yet to see billionaires "create" jobs. They create ways to avoid taxes, and excuse their "bonuses" for... uh... Whatever it is they say they do??? I've known this since I was, oh, I dunno TEN years old!!!
Asking for higher wages and strong unions is one thing. We also need higher taxes on wealth and corporate profits. When AI and automation starts destroying a lot of jobs, we’ll need money to keep social integrity afloat. Corporations will lose the bargaining chip of “we're the job creators” when this becomes a reality. Their money leaving the country should not be possible and be punished with long prison sentences and expropriation.
@@anthonymorris5084 that... is just untrue. Big corporations are infamous for using all the tools at their disposal to pay as little taxes as possible. People like Bezos only pay less than 1% of their income in taxes.
Wages started growing. Then they say wages can't go up too fast or inflation goes up. How do we tilt the playing field back in our directon? 40 years of everything going to the richest corporations and we can't reverse it? I call this B.S.
Don't forget, working & middle class workers create even more jobs when they have enough money to start their own businesses, grow them, & hire more workers.
and pay taxes at a higher rate than giant corporations.
@@ThatOpalGuy and, don't get the Corporate Welfare on top of it!
This is not what creates the jobs, demand for a service or product create the job. The people who start their own businesses are only bridging the gap between the demand and the worker. If they didn’t start that business someone else would. They are not job creators.
@@Sarah-e8t1ook bot. Sure thing.
Reaganomics was the beginning of the end of the true American middle class. Stockholders became more important than workers. It was the beginning of big box stores and chains. It eliminated a lot of the local business and mom and pop stores, which were vital to their local areas.
These "debunking" videos should be seen by everyone. They're excellent.
Share, everyone!
Agreed - and I do appreciate the way he separates political view points on social rights issues from his economic educational ones. It can appeal to a potentially less defensive audience….
I wonder why he never uses Soros, Bloomberg, Buffet in his videos? hmmm
It's so obvious it's amazing one still has to explain this in 2024
Probably is many people don't question what they're told. Many people will watch this video and call is a lie just because it wasn't the first thing they were taught about the subject.
Not only is it not obvious, but it's incorrect. Reich is spouting the old Keynesian fallacy that "consumption drives the economy". Jobs are the means, not the ends, of economic activity. The government could create several million jobs overnight by simply drafting everyone into the army, but that wouldn't create prosperity because we can't eat tanks or bullets. Real prosperity comes when there is a large and diverse capital structure (often funded by the wealthy and their investments, which Reich loves to attack) that is able to produce a broad variety of goods and services that people can use. The fewer jobs it takes to staff that capital structure, the better, because labor is a cost. The world is more prosperous today because, thanks to more capital invested per worker, it takes *less* jobs to produce the things we consume than it did in the past.
I know! I sound like a broken record when I hear the people say, oh if those bums just get a job... no it's not that! Welfare is about circulation of capital.. ... ... 😮
@@mlh5434scientific America, the magazine, showed how only 126 companies own 60 % of all corporations, globally. The mom and pop store is almost gone. And Walmart, other mega corporate interests manipulate politics to suppress economic prosperity. 7.25 minimum wages, in the US, is absolutely wrong! Diversity of companies, growing innovation by competition. Seriously! The US is putting huge tariffs on Chinese electric vehicles. Pushing out competition and limiting consumers from lower more affordable greener cars. Musk is happy! I'm not! Competition? Where?
@@mlh5434 What asinine tripe. Workers drive the economy. Workers can work without a boss but a boss can't do shit without workers. Billionaires should be taxed into nonexistence.
Trickle Down never worked.
735 American billionaires buy 1 pair of blue jeans to wear once every day for the next year at $50.00 a pair. This would yield, $13.5 million dollars.
Then 330+ million Americans buy 1 pair of blue jeans at the same price to last them the next 5 years, this would yield $16.5 BILLION dollars.
The government (both state & federal) get their sales taxes, and income taxes from all of the logistical employment it creates to move 330millon pairs of jeans, from the textile manufacturer, the shipper, the warehouse receiver, (and taxes in fuel)... There are far more jobs created with the masses than a few billionaires. Trickle up is how it works.
Hoarding wealth was the primary trait of dragons in so many fairy tales. What usually happened there?
@@Craxin01There's no such thing. The "hoarded" wealth is still circulating, lent out to individuals and corporations in the form of loans, stocks and bonds.
@@3namechangezalowdevry90day7 It's horded in their material possessions (cars, homes, yachts, art, etc) and it circulates mainly among the wealthy.
@@3namechangezalowdevry90day7 Yep. The billionaires are billionaires because the company whose stock they own owes them money. People need to learn how double-entry bookkeeping works.
The only thing that trickled down was the BS from the fat cats' trouser leg.
Thank you. Economics 101. Remember, businesses are created to generate a demand or meet a pent-up demand. This only works if the consumer has the purchasing power. You may eliminate all business taxes but if the consumer can't buy, the business is finished.
No, businesses cannot generate demand. They produce for an existing or predicted demand. On predicting demand they may be right or wrong, but they do not generate demand.
@@WildBill99x Turbotax created their own demand out of whole cloth by lobbying for worse tax processes
@@WildBill99x Advertising agencies can. Have you ever bought something you didn't need?
@@baronknownot780 Nope. Not once. Care to try again.👎💩🤷♂️🤡🤦♂️
@@WildBill99x Remember pet-rocks? No demand for that crap until someone thought it would generate interest. In either case, when consumers have little or no money to spend, aggregate demand declines.
more people with purchasing power -> businesses thrive -> more jobs
Congratulations, you just wrote down the bullet points of the first lesson of my old high school economics textbook. Got anything intelligent to add?
@@thegenialdecepticon5244- make it a reality and not on paper
Republicans say differently.
@@thegenialdecepticon5244You need air to breathe.
@@thegenialdecepticon5244@jakobthelibrarycard6261 Whoa, why the hostility out of nowhere? OP didn't do anything to you that was worthy of this kind of response. (So what if what they said was basic economics? It was a good summary. 🙂)
When people talk to other people like you just did, I think they are intending to come off as highly intelligent. Except it backfires, because instead of sounding smarter than everyone, they just sound like a know-it-all jerk. You probably are really smart!! 🙂 But you're never going to get people to listen to you and to respect you if you behave like you're better than they are. Intelligent people recognize their intelligence, but highly intelligent people see the value in not talking down to others.
Trickle up economics ftw 🙌🏼
@@travisrose2277 Exactly. Mass consumption of mass produced products.
Trickle up/down economics is a myth.
The rich stay rich and everybody else have to live on less and less.
if you are at the top
I believe it's Bubble-Up vs Trickle-Down
"Middle out" is another way it's been phrased by economists, symbolizing growth outward so that lateral expansion is complemented by broader upward mobility across different sectors of the economy.
Big corporations don't create the most job. Main street businesses do.
If you keep inviting big box companies to your town, they might create some jobs, but the profits are sent back to the headquarters in a different location. If the jobs don't pay enough (which is most of the time these days), then your town might get the benefit of a meager amount of taxation from the workers, but your state loses by having to support those workers with food and housing assistance.
Your own taxes don't go to improvement or upkeep of your town, but to the state and federal government to support the low wage workers.
You end up paying for the "privilege" of having the big box stores loot your town if your town or state give them tax breaks or subsidies to open up a location there.
The state gets sales tax money from the goods bought at that store and the county gets money from the property taxes paid by the store workers who live in the area. It seems you think that most workers need food and housing assistance. This is incorrect. Only 12.5% of the population get SNAP benefits. The big stores provide goods at cheaper prices so the poorest people benefit.
As for most jobs not paying enough, in 1985 when I graduated high school minimum wage was $3.35 an hour. I could not move out on my own, or even with a friend. Now it's $7.25 in the US and in many places it's actually much higher than that. In California fast food workers earn $20 an hour. So, you can move out on your own.
@@twelvestitches984 Are you referring to big box stores? Usually those big chains, Amazon etc they get many of those taxes back, real estate, payroll, not to mention free perks like new highway off ramps, road expansion all paid by the taxpayer. Then to make things worse, all of those corporate giveaways are usually blocked from public view.
@@JarheadMcLovin States/cities do entice companies like Amazon and others to build a factory in their community but those states/cities earn much more from the taxes the workers must pay.
This joker is constantly trying to make you believe that all of your problems are caused by big companies. Those companies are producing things that you CANNOT produce. Cuba doesn't have any corporations, neither does North Korea. They also don't have much of a selection of food or products or services.
@@twelvestitches984 fun fact. walmart always tries to build outside of city limits to avoid paying those taxes
@@JarheadMcLovin yeah. it is a complex system but the person completely ignores that the owners of these corporations, and their companies, pay FAR lower taxes than the average consumer.
sad you have to explain this to dozens millions voters who are directly concerned, and believe in trickle down BS
Fn RIGHT!
Like an S&M freak "Thank you sir. May I have another"
Have you ever had a paycheck written by a broke person?
@@Immacu1ate haven't you found a dumber straw man ? No one's advocating for communism here.
@@Immacu1atedo you see poor people going broke because they can’t afford their Ferrari car payments? Or are they poor because they’re underpaid by the crooks who drive the Ferraris?
@@rekker2688 how would taking money from rich people make this problem any better?
The National Minimum Wage is $24.10 per hour here in Australia.... be safe.. Thanks Mr. Reich
That's much better than the US, but it's still too low. That's about 16 USD.
@@tschorsch That's why I never order any art materials from the USA ... LOL
Nobody is expected to make a living from minimum wage which is why only a tiny amount of people make it when they are just starting out to gain experience.
Even here in Ireland it's €12.70 per hour. Which is around $15 - 17 per hour.
What does that even mean? What's the cost of living in Australia? Is it standard across the country? How much taxes do you pay? What's your inflation level?
Throwing a random number out there means NOTHING...
TOTALLY AGREE WITH YOU IT GOES FOR AUSTRALIA ALSO
its the same with health care people respect their lives when they have positive results
and statistics help people see where those results lead people have you seen Australia's wild life they need to be good at medicine and are ahead of us in fact
@@roxaskinghearts I live in Sydney
doesnt truly matter if you live in Africa with Australian backing calling yourself Australian nothing but mad respect to your people
You've got the caps lock key on. Maybe work on your punctuation instead of trying to get attention.
Would love to see a video discussing your thoughts on profit/ceo pay caps. Thank you for all you do! 💚
You are a true patriot, Secretary Reich! I deeply appreciate your determination to present these videos for the education and welfare of the American public/proletariat! Thank you!
Always on point Robert! I wish all of the working class would watch your channel, and learn the truth behind the economy.
So?!?! What learning the "truth" would make them do?
@@nadominhoca Admitting you're not a worker since you just used them and not us, no surprise since you also put "truth" in quotes as if you know better. But to answer your question: act accordingly with collective bargaining, i.e., voting and unionization.
@@slothachunk Gotta love how judgemental people are these days... especially behind the keyboards...
But hey, you seem to know everything and have a higher moral compass... and good luck with your union comrades..
@@nadominhoca says the one who uses the word comrades to try to union bash... behind a keyboard. But hey, who needs a moral compass when you have hypocrisy, right?
It was nothing at all to do with creating a workforce that could afford to buy the products. It was to cut the turnover and training time of the labour force. As always, Reich is lying to you guys. He’s certainly not “on point”.
Small businesses are better job creators and they're being squeezed out by giant corporations. What happens when big corporations merge? Layoffs happen. Small local businesses don't have mergers.
Stimulus for regular people = communism, stimulus for rich people = capitalism
of course. slaves and masters are different
I prefer free enterprise over capitalism, LOL
@@alanbailey5621 Well its neither free enterprise nor capitalism. What we're under is called "mercantilism." Capitalism is an idea that has only ever existed on paper. How do I know? Because under the theory of capitalism there would be no long-term profits because when some firm is making short-term profits other firms will join that industry and compete until there are no longer short-term profits. So if there are no long term profits under capitalism, then how in the hell do we have an institution like Wall Street whose purpose is to distribute long-term profits? Adam Smith called stock market workers "unproductive labor" because they didn't produce anything and because he was making fun of them.
@havable What you're describing is known as perfect competition, which is impossible under unfettered capitalism. That's because unregulated markets are eventually monopolized, and at which point profits are extracted at will. We are currently seeing the impact of that in our present oligopolistic markets that extract record profits which comprise 53% of current inflation.
@@havable True free enterprise requires a level playing field brought about by competent regulations not corrupted by lobbyists and their money.
\\
Yes, people need purchasing power in order for corporations to succeed.
Santa Clause, the Easter Bunny, Trickle-down Economics, the Tooth Fairy, Flat Earth....
The RNC...
All those things exist. How dare you...
@@jakobthelibrarycard6261 I love this quote from Patton Oswalt: _"You’ve gotta respect everyone’s beliefs."_ No, you don’t. That’s what gets us in trouble! Look, you have to acknowledge everyone’s beliefs, and then you have to reserve the right to go: _"That is fucking stupid. Are you kidding me?"_
@@727Phoenix ^*Claus, never Clause🤡
You forgot God
What kills me the most, for 20 years amazon didn't have to collect sales tax while during that same period mom and pop's across the country got hammered with that requirement. Of course now that Amazon has a market cap of near $2 trillion it can now collect sales tax and put anyone out of business.
That was more of a interstate commerce loophole that they exploited before they got fixed
@@anotherinternetperson7410 it ended in 2016.... The payroll and real estate taxes they are still getting back. And the warehouses, the perks that are negotiated are still signed behind closed doors.
"Trickle Down economics = Trickled On economics"
aka The Golden Shower
Wish I would have had an econ professor like this, who is concise, great to listen to, and CAN DRAW like nobody's business!!!
the system, as is, is unsustainable.
Years ago I tried to explain this to a boss and they looked confused for a while then they got it. But told me it will never happen. My response was, then stop whining about sales being down. If your employees cannot afford what you are producing then neither can anyone else.
just wait until they realize that robots dont buy cheeseburgers.
@@ThatOpalGuy Brilliant!
The scammers in my business are always running ads fishing for people to work cheaper than the people they already have.They don't really have shortages of workers they only have a shortage of free and really cheap.
and when they cant do that they requalify workers as 'independent contractors' so they can cut benefits and stop paying taxes on their wages.
@@ThatOpalGuy California just made wage theft a felony but they create themselves a loophole by saying it is impossible to prove intentional.If the employer decides not to pay the employee for any reason it is intentional.I am currently in a felony wage theft dispute with an employer in California and the labor commissioner is trying to claim that turning an employer in for felony wage theft is against company policies and not a retaliation for engaging in a protected activity in all 50 states and beyond.They choose the employers handwritten cooked up alternate records over the computer printouts,photos and screenshots that I have.They are psychotic corrupt commies.
@@ThatOpalGuy Here is the City of Fairfield California saying that they are only 40% staffed so consequently they have to send their work to the dealers and pay $200 an hour.This is a criminal no-poach and wage fixing agreement and a tax payer fucking fraud out.They could raise the wages a few dollars and fill those positions instantly but are chosing not to at major tax payer expense."The City of Fairfield’s main shop is at 33% staffing and its public safety shop is at 60% (with 42% overall). While one’s first thought might be to just send the work out, it's unfortunately not that simple."
@@ThatOpalGuy Can you imagine having a government job and saying this stupid shit on record?"The City of Fairfield’s main shop is at 33% staffing and its public safety shop is at 60% (with 42% overall). While one’s first thought might be to just send the work out, it's unfortunately not that simple."
These kind of videos inspired me to get business degree. I’m gonna build a company with the strongest workforce in the country, and show them a real business..
Rich people don’t start businesses because they have money, they start businesses when other people have money they want.
Finally someone pointed this out
Trickle down BS
So you are saying you could do better with trickle up economics via self employment? Do so then, by all means!
@@Silver-jv1us What the fuck kind of nonsense reply was that? Can you explain yourself?
@@VVVVV99611 Starting one’s own business will allow you to be free of “trickle down” economics. You can organize it however the fuck you like and see how “trickle up” works for you.
YEP, HENRY FORD was smart to raise the higher minimum wage, to create damand for his products. AT the same time, he ensured his workers would have to be chained to make his goods to pay what his factory workers were buying from him.
as flawed as Ford was at least he saw this.
Love your sense of humor, Robert, i.e., the upside-down colander. Of course, agree with all that is stated in this video. Keep up the excellent work my brother!
The "job creators" still had money during the depression and it didn't help.
Precisely!
Job gate-keepers
Sure thing rich people are job creators. They just want to make sure that said job pays the least possible, even if it means outsourcing to a country where it pays peanuts. That's always been the American way.
So, are you in favour of not allowing Corporations to outsource their workforce to different countries? Or perhaps increasing tariffs for imported goods? Whats your take here?
@@nadominhoca Do you understand sarcasm?
@@TutelGaming901What part were you sarcastic about? The left says some pretty nutty things, so no, it’s definitely hard to tell when you are being sarcastic.
@@TutelGaming901 Didn't get the sarcasm in your message.....
@@Silver-jv1us Sarcasm in the comment I was reffering to was "Sure thing rich people are job creators. They just want to make sure that said job pays the least possible, even if it means outsourcing to a country where it pays peanuts." To your point about "nutty things", what are they? If you can't tell when I'm sarcastic that's your problem not mine.
we saw it with the covid stimulus. almost everyone spent their money at Walmart
these really short videos are a great idea for people with short attention spans. You are a genius
Please give credit to James Couzens. Ford fought the pay raise
Also, if corporations can afford billions in stock buybacks, they can afford pay raises for workers
Not the entire story with respect to Ford Motor Company..... Ford had problems retaining employees at $2.60 per day. Every time an employee left that meant some more wasted time in having to bring someone new onboard and training that employee. Thus, Ford increased starting pay to $5.00 per day - which was the highest in the auto industry at the time - to help with employee retention and not having to waste time in training someone new.
There is another side to this vast government spending by Franklin D. Roosevelt to get the USA out of a depression. Many economists have argued that such public tax spending did not alleviate much the depression; it was World War II that got the USA out of a depression.
Increasing the minimum wage will only have a tendency to increase the unemployment rate, because some employers will not be able to pay the increased minimum wage. Just look at what happened in California when the minimum wage for fast food employees was increased to $20.00 per hour; this caused many fast food places to lay off many fast food employees.
Some people in the comments hating on Robert for speaking the truth. Wondering if they're ignorant by choice, or if corporations are paying them to sell out for a buck. 🤔
Robert is a well known liar for many years, especially when it comes to economics. Actual economists have written articles on this guy as a matter of fact. Articles showing just how wrong he is.
@@Silver-jv1us Everyone's entitled to their own wrong opinion. I bet articles have been written, all paid for by corporations to slander him. Just like when cigarette companies paid doctors to say smoking was harmless.
@@slothachunk No they back up how he’s wrong using actual economic data and history.
@@Silver-jv1us I believe actual economists who back Robert up with their facts and figures way more than the paid corporate lackey.
@@slothachunk Name one such economist? And you’re going to make a bet on articles written without looking at them first? Ballsy. Since we both know you have no such economist that you are basing the crux of your argument on, at least do yourself a service and look up the myth about why Ford paid their workers $5 per day to make Model T’s. You’ll find Reich quite wrong mathematically speaking.
Watch the rest of my Debunking series here: th-cam.com/play/PLOLArO56vjuqAau4sUzeF4_KQmdMBBUCg.html
I don't believe in a federal minimum wage. But every state needs to have a livable minimum
that is tied to the economy and increases every year with the cost of living.
what pepole need is union negotiated wages based on the profits of who they work for .
With globalization and constant consolidation large corporations are providing less jobs. If unchecked this will definitely lead to larger disparities in income not just in America, but everywhere.
Truth! much love Bob
"There is no capital without labor. Labor is always first!"- Abraham Lincoln
There's no labor without capital in an industrialized society, either.
@@darrennew8211 The capital comes from the fruits of labor.
@@jamestomkin8784 Yes. And the labor comes from the fruits of capital. Your labor as a pizza delivery person is useless without the capital of the pizza oven. Once you get past tribal sustenance farming, capital and labor work together.
@@darrennew8211 stop labor, no capital. That's why unions go on strike and usually get the edge in compromise
@@jamestomkin8784 stop labor, no *profits* and no *wealth* and no *capital*. Stop capital, no *labor*, no *profits*, no *wealth*. Why do you act like both aren't necessary? Where do you think your salary comes from? Where do you think the factory you're working in and the tools you're using came from? Which would you rather take, an uber ride with no driver, or an uber ride with no car? How many pizzas are you going to cook for your employer without his pizza oven?
Don't just sling slogans. Think about what you're saying.
THANKS ROBERT 🙏 FOR ALL YOUR HARD WORK HELPING PEOPLE UNDERSTAND HOW THINGS REALLY WORK 🙏💞 TAKE CARE AND BE SAFE 🤠❤️😺💜 WYOMING 🇺🇸💞
Ty Robert for your boards of explanation. Vote Blue for Democracy and our Constitution. 💙💙💙
Fantastic breakdown of basic macroeconomic principles. I’m working on a business degree so I can someday create a business conforming with these ideas. Thank you Robert Reich!
Buyers Create Sellers, not the other way around like Corpo's like to claim.
We love you! You are amazingly intelligent and deliver your message with common sense that everyone can understand. Thank you!
Great content thank you ! Even in Canada, it's said that we have jobs for sale !
"It's working people who create jobs when they have enough money in their pockets to buy." 💯
Hence the phrase "you have to spend money to make money"
I had this conversation with someone on line recently who said “I have relied on a rich man to keep me employed” and I commented that “the demand for the goods and services you produce keeps you employed” and that if that “rich man” had never been born someone else would be the middle man between you and the demand and you would still be employed. He told me “that is your opinion, not his”.
It must’ve been incredibly frustrating for you working in government Mr. Reich.
Thank you👊
Thank you, Mr. Reich.
*I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields*
Interesting, This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro Investor?
the first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional.
Finding yourself a good broker is as same as finding a good thing, which you go less stress, you get just enough with so much little effort at things
I went from no money to Invest with to busting my Ask off on Uber eats for four months to raise about $20k to start trading with
(Tracy Britt Cool Consulting). I am at $128k right now and LOVING that you have to bring this up here
Reminds me of the joke about the rich man saying to the priest: "If you keep them dumb, then I'll keep them poor."
It’s like pharmaceuticals need to charge insane amounts for R&D…most drugs are just regurgitated formulas now used for a different purpose with a new name.
Universal Basic Income
Some of the biggest job creation in recent history are the 3 geeks in a garage entripeners. Apple, MicroSoft and HP all started literally as 3 geeks in a garage. None of them needed corporate tax cuts to create the jobs.
I love how you talk in straightforward simple terms. Always enjoy and appreciate your channel 👍👍👍
So history is repeating 😮
"Give poor people money, and they just go out and spend it all." Yeah, it's called an economy.
Trucking companies like Swift, Knight, JB Hunt, etc .. get big tax cuts to hire drives . Not retaining them... So the got big tax cuts, big turn overs...
😂😂 What a shame the USA
Oh man, yeah. I’ve been talking about this for years. I’m a business owner. I have employees. Yes, they make me money and yes I like them and care about them but if they don’t produce more money that they cost, I’m getting rid of them. My goal as a business owner is to create as few jobs as possible. That’s the goal of every business and corporations on earth. It’s all about productivity and making a profit.
And if you raise taxes on my business or otherwise increase my operating costs, if I can compensate for that by raising prices and still have work to support my current work force I can’t get rid of them without losing money. Again, I don’t have employees for the sake of taking care of them, I have them because they make me money and I have as few as possible. If I want fewer employees I need to do less work.
I think 5min videos or less reach more people - especially the youth. Good thinking. Thx
Literally economics 101. No money means no demand means no business means no jobs. Artificially holding down wages doesn't help economies, it hurts them. Just appreciating that Robert had to draw and write backwards in all those takes.
So, what taxing corporations have to do with this?
@@nadominhoca He didn't mention taxes once. He said that if corporations hold down wages and raise prices they will at some point stop earning because people aren't going to be able to affrord their products. Taxing (reducing the deficit and national debt and allowing for investments in healthcare, education and infrustructure which would make the people richer [ex. better roads will make people use less gas which means they can save money]) and regulatung (for example not allowing corporations to raise prices at extremely fast rates, making their products healthier and more environmentally friendly) corporations would of course help as well, but he didn't mention taxes or regulations just a mathematical formula (that's what it comes down to).
Edited due to a minor spelling mistake.
@@TutelGaming901 He LITERALLY said that within 7 seconds in the video.......
@@TutelGaming901 On your other points of taxing and Regulations.. I fundamentally disagree with them. But its fine, it is ok to have a different view about these things, right?
@@nadominhocaTaxing corporations fairly you mean. Hasn’t been a thing since Reagan. Increasing revenue supports infrastructure, also something that hasn’t been a thing since Reagan.
thank you
Great Video, more people need to see this
It certainly is not the richest in America, a fool, and his money is not soon parted . The rich will not give up their money. They are too greedy. The trickle-down effect never happens.
Whenever you bring up the minimum wage, Cons will say that certain jobs shouldn't pay living wages because they're only intended for kids to earn fun money. So how many of the "jobs" these corporations create are intended for adults? And why should we give tax cuts to create poorly paid internships that don't teach any marketable skills?
@@mac533 you can edit your own comments by clicking the three little dots on the right.
@@eatmorenachos Thank you! I just couldn't do it because Chrome mobile doesn't let you edit comments.
I don't know what they don't understand about paying very good wages because when the working Americans have more money they spend it on goods and services they need and want this in turn increase sell volumes and corporations profits i most definitely do not understand what they don't understand about this when you lower prices and sell volumes you make more profits
Love your simple to understand explanation and illustration!!!!
Absolutely, totally correct.
Finally something that makes sense
You are so right I just wish all the people of America would listen.😊
Yes, and an excellent example of how capitalism is the greatest pyramid scheme of the modern era.
Thank you so much for sharing!
Vote 🔷 for democracy
Indentured servant creators.
The biggest jobs hoax is the “unemployment rate“ metric. Developed decades ago when it was assumed every able-bodied American was either employed or looking for work, it measured the number who couldn’t find work. It did not and still does not take into account the tens of millions of Americans who CHOOSE not to work. The number you really need is the “workforce participation rate.“ And that number, the number of people choosing not to work and taking benefits is horrifying!
No business owner has ever said "oh, we have customers lined up around the block and not enough employees, but I'm going to have to lay off employees because my taxes are too high!" While pretty much everyone has heard "Well, business is slow, so we're going to have to lay off employees."
Keep fighting the facts-based fight Robert!
Common sense. This has been clear to me for years and I'm not an economist.
FOUNDING Fathers came up with the word COMMONWEALTH ... hmm, I wonder why that word is so sacred to them that they keep repeating that? Common wealth. Common sharing of places Resources taking care of one another.
Thank you! Truth needs to be told.
0:01 - LOL 😂😂
Brilliant intro! But still makes a valid point that's noticeably less amusing 🫤
I love this guy! Thank you Mr. Reich. ❤
Job creators don't pocket millions in bonuses while laying people off...
The government takes SO MUCH OF MY CHECK that I never ever see again and it’s devastating. It feels like I’m working my ass off for literally nothing. And it doesn’t matter how much more I make b/c they just take more and more. Im just glad there are people out there like you who know what they’re talking about and are willing to say it cos I def feel gaslit by our government.
So you're telling me... that making rich people richer, and poor people poorer... does NOT end in a better economy? I don't know... but this dude seems onto something right here...
Robert the thing you didn't mention is the oligarch class of the US thrived during the Great Depression making big profits while the middle and lower classes starved and died.
I work at BevMo and can’t even afford a coke much less a $70 bottle of wine.Duh.
Wonderfully explained. If only Joe or Kamala could do this
Once upon a time when Sam Walton was alive, this was his stated belief. These days his company tries to run paying as little as possible and providing the least amount of benefits it can.
Thank you, Robert, for this incredibly truthful and educational information.
Higher wages means more commerce equals more jobs equals basic common sense. I've yet to see billionaires "create" jobs. They create ways to avoid taxes, and excuse their "bonuses" for... uh... Whatever it is they say they do??? I've known this since I was, oh, I dunno TEN years old!!!
I'm old enough to remember George H Bush, of all people, calling trickle down theory "voodoo economics". 😂
Thank you Professor!!!
There's got to be something wrong when you have people working in stores they can't afford to shop at, or in hotels they can't afford to stay in.
Asking for higher wages and strong unions is one thing. We also need higher taxes on wealth and corporate profits. When AI and automation starts destroying a lot of jobs, we’ll need money to keep social integrity afloat. Corporations will lose the bargaining chip of “we're the job creators” when this becomes a reality. Their money leaving the country should not be possible and be punished with long prison sentences and expropriation.
When corporations make record profits, governments collect record breaking taxes. There is no need to raise taxes, in fact it's counter productive.
@@anthonymorris5084 that... is just untrue. Big corporations are infamous for using all the tools at their disposal to pay as little taxes as possible. People like Bezos only pay less than 1% of their income in taxes.
Wages started growing. Then they say wages can't go up too fast or inflation goes up. How do we tilt the playing field back in our directon? 40 years of everything going to the richest corporations and we can't reverse it? I call this B.S.
A 2-minute video telling me what to think? Bang up job, guy!