How Wealth Inequality Spiraled Out of Control | Robert Reich
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- เผยแพร่เมื่อ 20 พ.ค. 2024
- Here it is: The full story of wealth inequality in America.
The top 1% holds 15x more wealth than the bottom 50% combined. If you’ve never watched a video of mine, please watch this one.
Watch More: Does Trickle-Down Economics Actually Work? ►► • Does Trickle-Down Econ...
00:00 The Second Gilded Age
01:17 The Basics
03:00 Why the Wealth Gap is Exploding
05:21 Why Wealth Concentration is a Problem
07:10 The First Gilded Age
10:20 How to Reduce the Wealth Gap
#ElonMusk #WealthGap #TaxTheRich
Please do a video about how our representatives in Congress vote against their constituents’ best interests about 70% of the time (because…money). Thx!
@@Jack-Shat Correct, when it became a career, civil servant died! What can we expect, they have the power to vote themselves a raise. Examine their salaries, U. S. Senators and House Representatives, $174,000. Majority leader and minority leader of the Senate, $193,400. Majority leader and minority leader of The House Of Representatives, $193,400. The Speaker of the House, $223,500, who do they represent?
@@mattja52 You're missing the forest from the trees here.
It's not about the salary they're paid, it's the campaign contributions, insider trading, and kickbacks that total many times what they paid with the added bonus of a career in lobbying and being a ‘consultant’ after they leave.
How on earth could you expect someone who wins a popularity contest to represent you or make choices you like? Democracy is absurd
@@individualisttv9247 It's why our founding fathers were against it, at least universal suffrage.
@@Lobsterwithinternet first of all “we” do not have founding fathers. There is no “our” as we own nothing jointly. Second of all, these people who came up with this system very much believed in the constitutional system… because they were the ones who imposed it on the populace.
wealth inequality is actually well under control, its just that its under the control of the people who have all the wealth
Good one! They wouldn’t have any other way.
a normal guy could avoid paying taxes
@@klachingmacgaming8400 but *should* they
@@platypodesrock9221 I think yes. I'm not sure when taxes became more about social engineering than funding shared and necessary services like roads, utilities, fire dept. etc. but it was somewhere before we had thousands of pages of tax code.
Now, you get tax breaks for doing what the government wants you to do. Easiest example is real estate: They want housing, so they give huge tax incentives to rental properties.
Therefore, if you pay nothing in taxes, it means you're doing what your government is asking of you, so isn't that patriotic? Notice I'm not saying it's fair, just reality.
@@PhoenixCrown that is actually stupid and untrue most of the times people pay no taxes it **requires** tax evasion. Also that’s untrue because income tax , Vat, school taxes etc etc cannot be avoided even if you “do what your government wants . FYI tax evasion is immoral unless you live under an unimaginably corrupt government like literal nazis
I think it starts by banning politicians from taking any money from a person or a business/corporation. This includes their campaigns. Their campaigns should only be funded by those people who wish to donate during their tax filings. When on your tax form it asks if you want to donate to a political party.
usa has made corporations have the same rights as humans, thanks supreme court!
Here's a thought from college (long ago), how about our tax dollars pay for elections? Everyone would get the same amount and no dark money.
Any politician that gets into office and is worth tens of millions when they leave is a gd criminal
Imagine, it's that easy, and it serves the people. But it's not being done. Why? No democracy.
@@kandiekane. Terminate lobbying unless it is funded by many grass-roots small donations.
German sociologist, Robert Michel's theory on the iron law of oligarchy states that most democratic states and regimes start off as egalitarian, but eventually the power and wealth gets concentrated in the hands of the few elite individuals who control and acquire uninhibited access to social, cultural, and economic capital. You could also say that Max Weber's iron cage reinforces the idea that wealth and power is in the hands of those elite technocrats and plutocrats who have the opportunity to seek out positions that control policies and regulations that aid and enable those with plenary powers. It's sad really. Factions exist because they too have a right in the democratic institutions we live in. We cannot drown out their voice, even if they come from privileged and wealthy backgrounds. Despite the fact they hold unlimited amount of lobbying power and political clout.
None of any states in Europe have ever started as democratic. Has any state ever started? They were originally oligarchic. In a way this tendency is thus not as weird as it sounds
the IRS came after me because I forgot to include a $185 payment I received when I file my taxes. the IRS does nothing to go after the millionaires and billionaires evading their taxes. fair system I say in America.
One of the problems as I understand it is that the large corporations and multi-billionaires have accountants that far outnumber and outgun the IRS. The IRS doesn't stand a chance against them. The IRS needs to be fully funded to get what is due the American public. Of course the government is controlled by wealthy people so why would they want to increase the irs's budget?
Same thing happened to us. Only they waited 5 yrs to notify us. We had sent a money order. By the time they told us they didn't get the $97 payment it had 5 yrs of interest and penalties on it. Was over $500
The IRS work for them, not you,
its cause they know you cant fight back.
IRS doesn’t have the manpower to go after the wealthy because our government hasn’t made taxing the rich a priority since the 1960s
As a UK citizen, this is why I get so damn annoyed when wealthy, retired Boomers - with their cast-iron pensions guaranteed for them by promises made decades ago, their free healthcare, free bus passes, annual heating allowance whether they need it or not, and their properties with mortgages all paid off because *they* bought *their* houses when it was easy and affordable to do so - accuse the younger generations of "spending all their money on stupid things and not saving for the future, like *we* did." YOU DID BECAUSE YOU COULD; your working years were the most secure and financially beneficial in modern history. Your wages kept pace with inflation, property prices were reasonable, you had the benefits of a well-funded National Health Service AND statutory pension scheme, AND most of the public services, like the railways, telephone and utility companies, were all nationalised, so there were no shareholders behind the scenes determined to make a huge, fat profit off those public services. If you'd had to live YOUR working years the way the majority of the younger generations do now, you'd most likely have saved even less than us.
I'm not even in the UK and see this problem here in the US too. There is even a few colleges allowing seniors to go to college for 10 dollars per class. This is ridiculous
@@cheesybits834 Can any Senior Citizen do this or only the wealthy? Do you know which colleges?
It is worst in the USA. To be totally honest, you guys millennials are just fucked by the system. I am wealthy, by any standard, very wealthy. But I have two daughters who just started working in NYC. Good, decent jobs, earning between 65K and 125K (approximately). With the current housing prices and living expenses, it would be impossible for them to have decent lives in NYC. And they do not have Student Loan!
"Wealth inequality exists because people don't work hard enough" - average Boomer
@@aquienpuedainteresar4188 Some colleges give free or reduced tuition to seniors. IN those cases, it's not divided by income, just age. It's mostly a PR move. Seniors pursuing education aren't looking to make moves in their careers, they are mostly just looking for something to take up time in retirement.
Robert Reich is beyond amazing. I achieved wealth doing this.
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Opportunity like this is a scarce commodity. It’s good to be here. I’ll partake in this.
"After just a few generations of this almost ALL of America's wealth could be in the hands of a few thousand families." This is one of my biggest fears, and the pattern will repeat across the world. That'll happen here in the UK too, which is why I save, save, save. My parents think I sacrifice too much of the present for the future, and maybe they're right but only to an extent. The future is so scary as everything's only going to get more dangerous - Money, climate change ... do you need a third one??
Then stop worrying about everyone else and focus on your own success. Duhhhh
@@ronaldreagan-ik6hz Maybe stop worrying about others' comments to focus on your own navel..(?)
perhaps you could identify anything i said that was factually incorrect? @@helenaquin1797
Population decline. Very real and happening all around the world.
Explain how the creation of a wealthy person through merit comes at the expense of another person?
We put up with way too much. Almost like the whole of the populace is in an abusive relationship and cant stand up for themselves.
It is that exactly that, except we can stand up for our greater Self, one way or another…
@Alpha Omega They worship them because they all believe they can be like them, when history has shown that will never happen
In the 80s a great book called WHEN SOCIETY BECOMES AN ADDICT ...Ann Wilson Schaef....talks about the White Male Dominance of Society, using the Fear of Not Hsving Enough to justify yhings. ETC. CODEPENDCY rates were predicted to be in the high 90s THEN!!
@@phriedokra6158 I remember her name from the movement for self realization back then. Sure is obvious now, the money addiction. So befuddled in their disease they can’t even mount a decent reaction to climate change, which by the way was an issue even then…
@Alpha Omega keep them hungry and they’ll be grateful for bread crumbs
"In a few generations almost all America's wealth could be in the hands of a few thousand families."
That one hit me hard 😶
Never happen.
@@jwil4905 hah, please sir please tell why?
Wait, no no, I know is it because some of those families are responsible for catastrophic destruction of the biosphere, so it'll be the post-apocalypse? Just guessing ...
@@robertsmith-williams5255 You're clearly not educated enough to understand how capitalism works, so explaining to you will be pointless.
@@jwil4905 So are you saying capitalism is working or what?
@@jwil4905 "clearly"? Interesting. I want to know why *you* think it won't happen, please help me grow my mind, fine sir.
While you do that I'll hide my Adams, Picketty, Friedman, Sen, Malthus actually the whole shelf and that pesky BEc. This is an RR vid who do think watches these, haha, you.
It's not about stopping people from obtaining wealth, it's about putting a limit on greed.
Exactly. I don't care how much money someone has. If they have employees and all of those employees are paid a wage that allows them to live a comfortable life it's all good.
I understand where Mr. Riech is coming from. But I am a Stoic so I ask myself: Have I made decisions and taken actions that reduced my wealrh, reduced my potential? The answer is: YES....
So how can I hold others responsible for my actions or non-actions?
Democrats are that stupid
Making economics clear and simple to non-economists is some saintly work.
I’m sure it’s been said many times in the comments for your channel but RR, you’re my hero.
True !! Hispanic power
Reich is a lawyer, not an economist
@@Zach-ju5vi help me understand
@@juliosanchez4036 The person you're replying to doesn't like what he has to say, so instead of engaging the material, just says a bunch of stuff in the hopes that it will stick, completely missing the point that it helps the algorithm to get the message out to more people.
except he doesn't tell the truth
"Second Gilded Age." Finally, someone said it out loud!
To be clear, the term is "Gilded," meaning, covered in gold. A "Guilded" age, meaning one dominated with guilds, would be like the mid twentieth century, when Unions, which are very like guilds, opposed the bigwigs and helped to keep income and wealth a bit closer together.
@@briansmith8898 Oops, typo. Yes, the term is "Gilded Age".
Hey Rob, will you run for president? We need a second Teddy Roosevelt to break up these corps up again!
@@briansmith8898 Stop Getting Used. Start watching 'Second Thought', starting with his videos 'America Compared' and such.
He just gave us the blueprint to attaining wealth as long as you control your expenditures. The only thing you don’t control is taxes. Which is what he is advocating for more of. Sure he says tax the wealthy but crap never rolls uphill.
only tax cuts for the rich , the non rich always have to shoulder the burden.
The wealthy are already taxed. In 2020, the top 1 percent of earners (with incomes over $548,336) paid nearly 42 percent of all income taxes. The amount of income taxes paid in this percentile is nearly twice as much as their AGI share.
Source: National Taxpayers Union: Who pays income tax?
Their figures are straight from the IRS publicly released data.
Not true at all the top five percent pay over half the federal taxes what are you talking about
Here's the thing. We used to have much higher taxes as most countries do.
Then Reagan started selling people on tax cuts for the rich helping everyone and what happened? Ever since that period of time wages have fallen further and further away from inflation.
So cutting taxes has simply helped the rich keep more of their money.
It's not hard to find examples of countries with higher taxes, more equality and a higher quality of life.
It’s nice that Robert Reich has been spending the last decade or so teaching us about the wealth inequality he help to create while he was advising presidents who sent American jobs to Mexico with NAFTA.
Really ??
you prob voted 4 Trump
@@aceous99 nope
@@aceous99 well voting for Biden has been proven to be a disaster hasn’t it Brandon?
Under trump low income workers pay rose as a percentage faster than anyone elses low interest rates low inflation low unemployment lower illegal immegration what did you not like about these things
This is how I've always put it when talking about the rich actually paying their fair share in taxes. It's nothing to them, but _everything_ to us. Their lives will not change in any fundamental way, but it will enable our society to do what it is supposed to do and actually support real people.
@Alpha Omega the ultra rich donors class of people who buy and sell the politicans are the ones profiting from buying their way to get control over the average American workers and it is time to tax them fairly quickly because the trumpets will sooner than later figure out that they have been played brilliantly but when they do it could be bad for the rich and i would like it to stay peaceful i am to old for this stuff
Thing is, they're the reason for the system.
@Alpha Omega The ultra wealthy OWN the system. They have the financial power to put politicians in place who back the legal loopholes that allow the ultra wealthy to accumulate more wealth and pay less taxes.
The only way the system changes is if the ordinary people understand this reality (this video goes a long way to help that!), and then VOTE to elect people that will actually change the system. Too often the poor vote against their own best interests because they believe the political rhetoric promoted by those very politicians the ultra wealthy support.
@Alpha Omega well the system wouldn’t allow it if the wealthy didn’t bribe them 😶
@Alpha Omega "Hidden Secrets of Money. " now you know.
This was excellent.
Here's another twisted fact: even without political power or a mountain of assets, the merely "comfortably rich" (not the top 1%, but say in the 2%-5% range) can still avoid significant taxes, particularly between generations, through loop-holey tax avoidance strategies. The minute a new law is passed, sharp lawyers and tax specialists develop work-arounds to it, for $500/hr to $1,000/hr. I always felt it bizarre that someone would pay, say, $2M over ten years to a tax advisor who sets up all sorts of trusts and inter-family loans for the purpose of avoiding taxes, when that money could otherwise have been paid as taxes and done some good for everyone, rather than that one smart advisor. Some people see taxes as so evil that they are willing to pay nearly the same amount to advisors to just to avoid paying it to uncle Sam. It's bizarre. I speak as a somewhat confused beneficiary of some of these shenanigans.
Ever since the final business quarter of 1980, the sum total of financial assets (from which IRA's and 401k's are derived), has been greater than our GDP. This happened because Congress gutted company funded pensions in 1974. At the end of 1980, the sum total financial assets was half a trillion more than our GDP. By 1990 that gap was enlarged to $6.9 trillion. By the year 2000 the gap had widened further to $21.2 trillion. Today that gap is $93.684 trillion or 4.8 times the size of our GDP. Today the gap has widened so far that extraction from the population is simply not enough to fuel a 12% annual growth rate, so the government is now being looted. The money to grow IRA's and 401k's is stolen, not earned. What gives anyone the right to take money they have not earned?
Because they save them from contributing $4M to the public fund. Plus there's always the aspect of power corrupting and all that. If you can get away with it you feel powerful. Which is why you generally amass ridiculous amounts of money to begin with. Or at least, this is my theory 😒
Not really. Reich needs to learn what wealth is. A lot of the wealth the wealthy own is non liquidated. And many, like me due to loans, have negative wealth but are doing fine. Reich is trying to simply be emotional and not rational.
@@whyamimrpink78 Reich literally says at the beginning of The Basics section that wealth is also the sum of non-liquid assets: cars, homes, etc. Looks like you didn't really watch the video.
@@whyamimrpink78 So according to you, nonliquid assets dont count as wealth. See if that argument holds up when you tell the state you have no cash to pay the property taxes on all your properties because of no tenants and see if they agree. In case you missed it, the crucial argument is for eliminating transactional tax loopholes for the super rich, mainly corporations, which would not include coming to take away your 2nd 3rd and 4th mansion etc, but actually enforcing the collection of taxes at an equivalent rate to the average individual.
You pay tax on inherited assets if and when the heir sells them. It isn’t perpetual. Those assets are also subject to volatile market fluctuations.
Taxing someone with slightly more than $1mln dollars isn't taxing the wealthy, that could be taxing someone who has worked hard all their life and contributed to their pensions. It would have to start at higher level than that.
Yes, the slope is slippery when the government wants more tax revenue.
Generally taxes are talked about as a portion of yearly income. So someone making a million dollars a year is absolutely wealthy.
I've yet to see anyone talk about taxing people on wealth unless we're talking about billionaires.
Your content is priceless. Please add voice over to the "chapter" transitions, so that blind and low vision people can benefit from it.
Wait, I’ve never thought of this. Do blind people “watch” yt?
@@kaminoshi713 yea they listen in, phones have become a lot easier to navigate for the visually impaired. I had a guy in one of my classes who could play yt videos, news reels, tik toks
@@kaminoshi713 they can still listen to it
@Alpha Omega conservatives are getting better at comedy and it's making lefties nervous
@@kaminoshi713 they don't just watch it. Check out Molly Burke. She's an amazing blind TH-camr and she'll change the way you think about blindness forever.
"Wealth inequality is eating this country alive." - Couldn't agree more.
Robert Reich has a net worth of $5 million dollars, as of 2021! Yet here he is crying about income inequity The median American retiree has a portfolio of about $225,000. Reich is worth over 20 times that. IRONY! Wake up kids, this guy is so full of ssh*t his eyes are brown and he produces NOTHING!
@@1Skeptik1 He produced your hissy fit. Cause you a simp for your economic masters.
@@Zach-ju5vi You only think it's brainwashing because you are an idiot. Go back to the Prager U cesspit you came from.
carlin was right - " its the american dream because you have to be asleep to believe in it "
amc gme too the moon
Thank you. Very clear explanation of what is happening in the US. Young people are hurting. More homeless..
One key element you left out, international growth has caused much of the u.s. wealth gap increase. In 1965, only 5% of the U.S. stock market was owned by foreigners, now its 40%. That drives up the overall wealth of ANYONE in the stock market, including workers with pensions. Source: Federal Reserve Board report called “financial accounts of the United States”. In addition, way more of our entrepreneurs have been able to export, making them even richer.
'The Past and Future of WORK' by 'Some More News' and the follow-up video
about Unions are a Must-Watch for Worker-Class,
especially Americans.
Stop Getting Used. Start watching 'Second Thought', starting with his videos 'America Compared' and such.
"If a man has an apartment stacked to the ceiling with newspapers, we call him crazy. If a woman has a trailer house full of cats, we call her nuts. But when people pathologically hoard so much cash that they impoverish the entire nation, we put them on the cover of Fortune magazine and pretend that they are role models."
~ Lester B. Pearson
And then we increasingly "subsidize" THEM, while denying any real assistance for the "crazies!!!"
This is the mantra for our dysfunctional society...
(Thanks for sharing)
@Do no harm Sense?? Well put down your smart phone because a rich guy invented it. Park your Tesla or turn off your computer because a rich guy invented it. As usual you cry about a problem you made. We put Kardasiens and other do nothing, make nothing people of way more covers.
@@markintexas1296 Untrue and untrue. We don’t have billionaires to thank for these inventions, we have either well meaning folks trying to do good in the world or the government. The most technological advance of the modern-era, indeed the very technology that allows the smart phone to be smart, internet, was invented by the government. Also, please stop with the idea that just cause someone invents something of value that gives them permission to exploit the masses. The true value of any company is the people that work for it. Without them there wouldn’t be products to buy.
‘Hoarding cash’ has never impoverished an entire nation, or even another person.
@@mikehaynes1769 It does. When you pay politician to create policies that allow you to keep more Money and therefore give less back to the community, you are hoarding cash and creating damage to the whole society.
It amazes me how craven they are to fight paying just 2%. The word malicious also comes to mind. Deplorable, too.
Here is an example. I bought a house 3 years ago for about 400k. Due to house prices increase by wallstreet buying houses the house value is 700k now. If I wait another 4-5 years, add my savings and my wife savings and our 401k probably I will exceed one million. Do I am a millionaire? I don't think so. Do I feel like a millionaire? Not at all. So why would I pay 2% which is 20,000 every year of my life having all these years I'm paying my assets valued of over 1 million?
@@car9167 Facts dont care about your feelings
ps: your assets arnt worth over 1 million unless your claiming everything is yours and your wife has nothing
and its not 20,000 its 2% of everything over 1mil and it would be increase in wealth not total wealth
@@car9167 2% of your wealth over 1 mil, not 2% of your wealth if you're over 1 mil.
@@halfjack2758 yeah this kind of tax should be targeted to those a little higher up the food chain. A lot of people save and make sacrifices for many decades to just retire with a little nest egg of 2 million. Trust me its not a lot and portions usually go to a struggling relative, medical expenses, funerals, etc.
@@halfjack2758 Thanks for clarifying. I would tax the increase YOY of wealth. So if this year you're worth 100B and next year 120B they you pay a percentage of the difference of 20B. But if your wealth decreased to 110B due to market fluctuations or whatever than you would need to get back from IRS for the 10B you lost.
Well... thank you for stock info *starts time machine*
Mister Reich, could you please do a video about the Gini index (2024 predictions) ? And where US stands to other nations. 😊 i would like that .
This is actually a worldwide problem. We see the same phenomenon in Europe. Here, the rich mostly hide behind the middle class claiming that taxing the rich would also lead to a shrinkage of the middle class. It amazes me that people can even develop such a level of unsaturable greed. I mean a multibillionaire wouldn't even notice a billion dollar tax payment. Their money usually sits around and does nothing except growing. Even when they spend they usually don't touch their assets but instead borrow against them.
When during the Trump administration the 1/5th of wage earners had their incomes rise the fastest of all groups. That was the first time that had happened since the George W Bush administration.
Because both Trump and W. used Kennedy's theory of using lower taxes, less immigration, deregulation, and smaller government to tighten up the labor market. Which raises wages, allows mobility, allows for advancement, and gives people dignity.
Compare that to the Democrat policies of using high taxes, over regulation, open immigration, and big government to put permanent slack into the labor market. Which drives down wages and drives up housing prices at the same time, to the point tens of millions of people don't have any money left over at the end of the month. And it's the low wages at the bottom that allows the excesses at the top, causing the wealth gap.
Raising the bottom 1/5th of wage earners wealth relative to everyone else is something liberals will never be able to do because of their policies.
If Reich actually cared about working class people, Reich would be a Kennedy Reagan conservative.
You’re so misinformed
So maney after a person gets to s certain level of wealth they should shut down there businesses so they cannot get any richer don't you ahree
Huh "A millionare wouldn't notice a billion dollar tax bill". Think on that awhile....
Democrats know only two words free or subsadized
Robert, one thing you could have touched on is how the "big" money families buy medias and push philosophies that continue to benefit themselves. Thanks for your videos. I hope enough Americans can wake up.
Since most media is left leaning liberal, of course Robert won’t mention the inequality of television and print ! He doesn’t care about that injustice because it doesn’t fit his narrative
@@Navy35 your not close enough attention Matthew, don't drink the trumpy koolaid!
Nothing “Trumpy” about the truth.
He did
Who donates to this guy? I'm sure he is incorruptible as well.
You have done a great job explaining what has happened but I am surprised you do not explain what is underlies all this. A money system and government bailouts that always favor the most wealthy. I hope you will read "Broken Money" by Lynn Alden.
Underrated comment 🙏🏽
I've long said that the one difference between people who have money and those who don't (I'm not talking about a lot of $$$, but people that can come up with money in an needed emergency) is........... delayed gratification
The game of Monopoly was invented shortly after Roosevelt’s actions due to Public Awareness of Wealth Inequality. It’s lesson of Free Market Capitalism still stands today. When one player has all the money... the game is over !
and people still doesn't realize it
@ColoRpg You are really stupid I hope you know that
@@colorpg152 That's the problem with simplifying and trivializing a serious subject.
It doesn't get treated with the seriousness it deserves, plus there's a disconnect in applying it one's own life.
The game is definitely over.
In terms of fairness, the game is over before it begins. In real life, when you start, the game has been going on for a long time, all the properties are owned, and some people started with a stack of money.
You on the other hand, have a small bank account and must go all the way around to get more money until you can somehow buy a property.
Good luck with that.
Science fiction author Frank Herbert had an observation on this, which he included in his Dune series: "Governments, if they endure, always tend toward aristocratic forms. No government in history has been able to avoid this pattern. And as the aristocracy develops government tends more and more to act in favor of the Ruling Class, whether that ruling class be hereditary royalty, oligarchs of financial empires, theocratic clergy, or entrenched bureaucracy."
Exactly. Human society always gravitates towards aristocracy.
Power begets power, and money is power.
@@themurph930 Sort of. Wealth and power are inseparable conjoined twins. Where there is one there will always be the other.
I think its called the Iron law of oligarchy
This is what frightened me about S Bannon as he's in favor of aristocracy in the US.
I am grateful for the hope, guidance, and inspiration promoted through this channel and it's perspective audience. I am glad that many people have developed awareness, and a determination to remedy the perils in our midst. Unfortunately... this deliberative rhetoric may prove to be fruitless. My intuition tells me that it is too little too late, and that there is simply no stopping the impending doom that awaits us. I'll never forgive my parents for raising me with false hope, misdirection, and forsaking me when I needed help more than ever.
Ever heard of WORK inequality? I worked for welfare. You think it's ok to support lazy people who lie about all kinds of things? They lie about their income and get caught by social workers who can see their income if they have worked.
Go look at the debt clock and also the amount of federal workers who make better money than most people.
You are so brain-washed.
It is the POOR who are robbing everyone!
Now the illegals are getting tens of thousands a year for what?
Robert, if you can show how the lazy won't benefit, I'm on board.
Well, there really aren't that many lazy people. Most people get bored af sitting around all day and prefer to work for something to do. The reason no one wants to work is because no one wants to abide by the social contract anymore. The idea that you should be polite or attempt to understand why service work is difficult is completely lost. Everyone wants to be mean, so no one wants to deal with that sort of customer/management. Also, Healthcare and education make workers better not lazier.
We need this man doing an adult version of “The More You Know” on evening television
We do, but getting messages like this on television is a very long shot. When ultra wealthy people and corporations control massive media outlets, they are in position to prevent messages like this from getting to the masses.
When the government over spends supposedly for our own benefit, the only people who end up advantaged by the resultant inflation is the rich .
Who do think owns "evening television"?
That would be so good!!
And it should include a section explaining that the rich avoid taxes by *not selling* and instead *getting loans* by using their property as collateral. They completely sidestep the typical argument of "but they don't have all that wealth in money, they would have to sell!" etc. No, they don't.
Thank you Robert Reich, this really concerns public administration and public policy, some dogs do not let other dogs eat...
Robert Reich is very rich, quite hypocritical, and I’m a progressive.
@@registereddemocrat3183
It's not hypocrisy because he pays his taxes. Just simply having money is not hypocrisy.
@@ados1280 Agree. Such a simplistic view. It actually makes him more credible to a certain degree.
@@registereddemocrat3183, At least he is not getting in other people's way, much on the contrary, Senator Longwall manchin is the problem, we must carve that sucker with the filibuster.
So why is someone who was "Labor" Secretary under the president (Billy Clinton) who initiated "NAFTA", now trying to sell us on the scam he now works for the interest of the people? Why is Robert Reich, who oversaw Clinton's deregulation of Wall Street and the crushing of Social Security, now pretending he is a Progressive? Could it be so the plutocrats can continue to have their agents within the system when most of this crashes around our feet? Reich must be hoping Gore Vidal's "Unites States of Amnesia" still applies.
I grew up in a middle class family (mine was probably upper, hers very middle), but neither of us are set to inherit much of anything that we’re aware of (in our 30s).
We currently make about 200-250k a year, saving and investing like our children’s lives depend on it. We paid for school, don’t want them to. When our parents felt a “pinch”, we noticed.
So when you start talking about a 2% tax on a millionaire transfer of wealth, you lose me. The difference between a millionaire and billionaire sounds like nothing to someone paycheck to paycheck, but it’s literally 1,000 times the money.
Im not Walton rich, I’m not Musk rich, I am not them. If I’m lucky, I might pass on a few million to my kids in total assets; which they better use correctly. My parents couldn’t afford a NES, that’s the American dream.
Don’t confuse the 10% with the .01%, we are not the same at all. And a millionaire is less impressive than it sounds like.
In my country, I earn in the upper 15%, but I can't see myself with a house and car.
Don't get me wrong, I live well, but as you note; the difference between the 10%, 1% and 0,1% is so insane that most cannot comprehend the exponential differences.
Not 2% of million. It’s 2% of gains that are over a million. Under this standard you would technically be fine Because your assets haven’t even reached a million.
Another thing - capital gains tax of 2% is referring to the fluctuation of the market and appreciation of value (I.e. it has nothing to do with how much you save or income you make.) the 2% gains tax is for appreciation of wealth over time - money that just sits there and increases in value over time. For example, if you purchased a 400k house and it is now worth 750k bcs of luck, the amount that could eventually be taxed would be those 350k.
@@WETs3rgullioni No, he said a wealth tax of "2% a year of wealth over a million dollars." That is literally what he said it he completely lost me at that point. All of the normal people just trying to retire and not be poor will often have more than a million in wealth between the equity in their house and their retirement accounts. Living in a high cost of living area would subject a very large amount of Americans. Maybe start that tax at $10 million in wealth but $1 mil is just crazy (and would never pass because much of the democratic base in states like CA and NY would fall in that category).
What you're referring to is 'unrealized capital gains' tax. Yes, there are politicians that also want to create that tax but it is very different.
Who is talking about taxing someone like you more? I ask because every time I hear about tax increases or ideas around that subject it's usually around $400k a year that is the level talked about.
And as I'm sure you know each year tax brackets are adjusted for inflation. So if we tax people making over $400k a year 2% more then $400k number goes up each year anyway.
And as far as taxing things parents leave their kids I don't see the problem.
If I found out a long lost uncle gave me a million dollars and I had to pay $200k in taxes I still have $800k I didn't lift a finger for.
Generally a wealth tax isn't talking about your home or retirement accounts. So if your house and retirement accounts are taken out of your net worth and you have a million dollars still that's hardly a lot of money.
I would say that anything like that should be hard coded to go to very specific things like education or something that can actually change the lives of people struggling to make it and not simply into a general fund to fund wars or whatever crap our government wants.
This is a great explainer. Thanks for pulling it together.
Hmmm. Full of bias is hardly truthful.
My Gram from PA was raised on a farm had a saying: "Money is like manure; it only works when you spread it around to make things grow." Stop hoarding $$$ & start speading!
If the rich actually did spread around their hoarded wealth, things would be a lot better
There are so many opportunities and reasons for the rich to get a clue… Dont make US get out the pitchforks to drive the point home.
@@lexingtonbrython1897 the thing that most people miss about the ultra rich spreading their money around is they will be getting something for their money .not just throwing it out the window. But enjoying the products they buy .I think most billionaires must be Hoarders like on the TV show and will never give up 1 dollar and they want to control everything they see and will never be happy unless they are in charge of everything
Do you think they have 250 billion dollars in cash and are hoarding it?
The whole “skipping taxes” bit burns me up because taxes are there so we can all chip in so, while we all need to do our parts, the people who have the most ability to contribute should be the first to step up and lead. THAT being said, I find it greatly disappointing that the HaveNots want the Haves to give them there property (ill gotten wealth or not) like We live in the first socialist society in the history of the world that worked. They are spreading it around as investments which return dividends so their money works for them. As far as “Stop hoarding $$$ and start spreading” goes … 1) Money isn’t worth anything and has no power if it isn’t spent. “It takes money to make money” is about growing wealth they’re just spending it in a way that benefits themselves… 2) how would you like it if someone else with “less financial success” told you how you should spend your money … 3) If you’ve EVER denied giving money to a homeless person or to a charity then you don’t get a voice in this matter. Just like so many of us look at a homeless person and think that they would miss-use any money given them, to the ultra rich WE are the less financially aware people who “wouldn’t do the right thing with the money given to them”. He hit the nail on the head at the end of this video with the flat 2% tax. Fair is fair and it would make it easier on all of us too to have refined tax laws. We are a dual income household with one house and 3 cars yet SOMEHOW I manage to get it wrong every year and Uncle Sam gets his IRS goons to send me love letters about how I owe them even more and more. 🤦♂️🤦♂️🤦♂️
I love this man. I love his passion, his kindness and his clarity.
I wish that more people heeded his warnings and accepted his ideas.
Obviously, trickle down economics hasn’t worked.
I’m making about the same as I was when I started working in the early 80’s. And that’s in real dollars not adjusted for inflation. My standard of living has steadily gone down.
I have a house (inherited and needing repairs) and a minimum of savings.
I expect to have to work until I die and I’m good with money.
I was born into the upper middle class but how can you save if you can barely cover regular expenses?
Within my lifetime, America’s economic structure has been decimated. And it’s not because people don’t work hard 😓.
The people who have so very clearly benefited are the ones who are responsible.
The loopholes and special interests must end and they must pay their taxes.
We the people deserved it.
What a pile of garbage. Liberals think “working hard” is anyone that works 8 hours a day, 40 hours a week.
Yet- sales professionals that often make the highest wages often work 70-100 hours a week - and shocker-they earn a lot more money.
You fools that call anyone a “hard worker” are just ignorant as hell.
What practical steps can we take to become more equal?
Flat tax, 20%, businesses, people (below poverty line and retired exempt)...
No loopholes, no exemptions, no depreciation, no credits, no contributions of any kind - take all that stuff out of the income/profit tax system!
I'm tired of supplementing someone else's solar panels, or paying for their religion, or their favorite charity...charity means giving, not getting refunds from WE THE PEOPLE! If there isn't enough people caring for a cause without tax write off attachment, it wasn't worth having!!!
That's equal, fair, and Governments should be able to balance budgets and pay off the deficit, and stop rIsing spending ceilings (deficit spending, deeper in debt).
Money goes to one pot, Fed, State, and local governments figure out how to split and spend...with less IRS agents needed too...one page tax returns, no special and complicated schedules, etc needed!
Only refunds, for those who over paid!!!
KISS - KEEP IT SIMPLE STUPID!
how about no'' - Big Bizzness
@@aceous99 Why?
Even if the IRS were fully funded, I believe that they would need the backing of all 3 branches of federal government to actually go after the rich to make them pay their fair share. As it is they Target low hanging fruit by going after the poor who may done the earned income credit incorrectly when they filed doing their own taxes because they couldn't afford professional to do it for them
They're going to double down on going after the poor with the new right wing conservative Democrats ( aka moderates) created tax law in
back back better. Up until now any income from ebay sales under 20,000 Dollars wasn't reported,the new law has Ebay with PayPal and your bank report all payments deposited in your account anyone with over $600 will now get a 1099 form .
The IRS *does* target those of us at the bottom. Do you know why? Simple economics. They do not have the resources to fight the army of lawyers the wealthy can hire, but they know that you and I are on our own and cannot afford a protracted battle over a few quid. So they would need a MASSIVE budgetary increase and, as you said, full governmental support to take that task on... effectively we all have to decide "this is happening or none of you are going to live through the end of the year" and then force our government to do it. If they were sure we'd revolt if it didn't get done I am pretty sure it would get done... yeah money is nice, but what you gonna do about 50 million people willing to die to make you pay your share? You can't jail them. You can't kill them all (for every 1 you killed 2 more would spring up in righteous fury over it). Basically at the end of the day it's on us to fix this.
@@TheActionBastard Ideally that would be a great solution. Unfortunately, there are too many ppl who are afraid to push for change. Ppl on the streets and minimum wage earners are busy just trying to survive, while others are too scared of losing what little they have. They're told it's immigrants or the homeless or any number of minorities that are "spoiling" it for them. Instead of educating themselves, they believe the propaganda of the ultra wealthy that flows through corporate and right wing media. Not to mention the power of religious institutions who's millions of members are living in an alternate universe.
It's maddening. How do we get through to all those ppl who think they already have the answers?
@@TheActionBastard the IRS has the backing of the federal government. Their lawyers are more than capable of standing up to anyone's lawyers.
What is a fair share?
Based on this video, it seems that, rather than wealth inequality itself, our biggest problem is wealth inequalities effect on government policy and government. If money were kept out of politics, this wouldn’t really be an issue
That’s when it’s not capitalism but fascism
@@forestrussell-yount1355 Nah. That's as capitalist as Adam Smith. He himself warned of this possibility and urged for safeguards against "The Mercantile Class" guiding national economic policy due to the obvious conflict of interests and the potential for powerful merchant conglomerates to pilfer national coffers and disturb natural market forces, thus making it impossible to subsist on the "normal" wages of labor if left unchecked.
His focus was more on how this situation would negatively impact the economy of a nation, with an argument geared specifically towards England while they struggled against the *extremely* mercantile Dutch. But that logic can easily be extended to see how bad this would be in other ways.
@@forestrussell-yount1355 Capitalism always leads to money in politics.
@@DiThi but if you strongly limit what the government can and can’t do, the effect of money in politics would be insignificant. The problem is when the government can do virtually whatever it wants, and then highly influential people use it to their advantage
@@chaselandis8380 Limiting things the government can do is exactly one of the things rich people do, because many things the government can do protect the people. Without a government rich people have even more control over our lives. For example they can just kill union leaders.
Wealth is not a measure of what you have. It is a measure of what you have that other people do not have. In other words, it is a measure of disparity.
If your doing it right your income should accumulate some sort of wealth. That wealth grows while income can vary. If your property budgeting and acquiring wealth be it a house, land, objects of value etc. Your wealth should continue to grow and if you use some wealth assets. Like housing or land, you can make a passive income stream that will supplement your current income. Till your working income is lesser than your passive income in such a difference you can stop the working income and focus on the passive income. Investing and growing your wealth assets.
Any tax on income or wealth does one thing. Lower the ability for those STARTING this process from actually succeeding. Reason why we see more people not able to gain weath without having some gain tax or income tax taking away the small fortune. Is because more people take risk and go into debt causing whatever gains they have made. Being paid to banks leaving little after death to those left behind. This is even more so in impoverished areas. Where the cost of funerals and debts from loans cripple the low income to such a point they do not make progress in accumilation in wealth.
A key way to see this is how much debt people who are considered "rich" vs those who are "poor". Rich will always keep the assets of wealth they have larger than the debt they aquired. While the opposite occurs to the poor. The have a large debt vs the wealth the aquired and some even dont have assets. Causing them to have to pay that debt first before wealth is aquired.
This is mainly due to the poor education those in lower communities. For they do not learn economics and how to avoid placing themselves into "the hole". While most ivory league not only have their parents and financial advisors talking about economics. This is also taught in their schools.
Yet lower status schools also focus more on social issues over the issues those being taught will face. More drop outs occur in low income areas because the education quality is seen as useless. Which is half true because instead of focusing on a quality education to raise those students to a higher level to gain high income and wealth. It's preached that the system is designed against you and nothing is going to change that.
Talking about wealth gap of race or gender is practically useless because the race part intertwines with poor education that isn't focused on building a quality life and accumulating wealth. While the gender issue has a separate situation. Woman are taught low income jobs and are pushed by educational institutions to fill those jobs. They also tend to not take overtime. Which, for example, a 26 dollar an hour job. Is the difference of over 20k a year. Causing those who do over time to earn nearly a 3rd more than woman who do not do the over time.
Yes wealth inequality is an issue but it's not the complete fault of those who cut part of the pie ofr themselves. The the poor education we give ourselves and our children on how to gain and keep that wealth. So we and our generations after ourselves. Can join those ivory league bastards. Trying to push for a gains tax or more income tax. Only washes down to the middle and lower class people who attempt to gain enough wealth to break the barrier.
I don't mind these big wigs amounting such wealth, but when they affect (or rig) the system and screw the working class in multiple ways, something's gotta give. People working in the essential medical field such as EMT shouldn't have to make a second income to pay their bills. They're the frontlines of saving lives. Then again, the medical field here in US shouldn't be a private sector to begin with, again going full circle on these big wigs.
it is not about whether it bothers you or not people getting insanely rich or not, it is about paying back to the society their fair share !! after all, they benefited from the services offered by the society and should pay their fair share taxes. What bothers me people that keep licking their boot and a $ $ hoping one day they become themselves in their place. pathetic
Those giant balls of money always affect the system they're in. Especially in a system where elected officials have to spend so much time looking for donations to fund their next campaign. And the grotesque wealth inequality only happened *because* the working classes were being squeezed for every penny they're worth and more. You have done the equivalent of saying "I don't mind rain unless things get wet".
NO ONE should have to work so much just to survive. Everyone has the right to life...
It’s a matter of balance. Between the political duopoly greedy for donations and the ultra rich greedy for their addiction, our nation and our world have gone way out of balance. It can either destroy the engine or it can be brought back to balance. There are zero tolerances left in this human machine. Especially considering the CO2 problem. The piper is owed!
Rigging the system and screwing workers is how they build that kind of wealth.
I finally had it explained in a way that was simple enough for me to get: The strength of the economy depends on how much of the money is being used. If massive piles of money are disappearing into some cartel warehouse or billionaire's bank account and never coming out, that money is removed from the economy, which gets smaller and weaker.
Not only that but those massive piles of money gain interest just by existing. Which means their ability to grow exponentially will continue to take a larger portion of the pie.
@@Zach-ju5vi Economic activity is what makes the economy grow. Fiat currency isn't based on pulling a number out of thin air.
@@Zach-ju5vi Depends on the activity. Hoarding wealth does not activity make. You can either have a river or a pond.
@@Zach-ju5vi If we tax companies, we will use it to build the infrastructure to improve logistics and develop talent to make better hires. In 2017, Mnuchin was at a meeting of executives and asked how many would use the (then-potential) tax cuts to invest back in the company or hiring people. Five said yes in a room of hundreds. Most of the money from the corporate tax cuts went to stock buybacks. How is that circulating money? Send the money where it actually gets spent, and the economy will grow.
@@Zach-ju5vi Fixing the infrastructure that is falling apart would be a big start.
And, of course, the reflexive complaint about the one organization that has actually helped working people make a better life.
The need for affordable housing and the transition to renewable energy are also things that definitely haven't been completely addressed.
Please do a video about how many citizens vote against their own interest like retired citizens.
Yes. Democrats vote for stupid shit every day.
You can't know what someone's best interests are. It's quite pompous and presumptuous to pretend that you do.
Wealth isn’t a crime. Try having regulatory agencies actually criminalize fraud.
We also need to shield the poor and middle class from these laws. The rich dodge them but I sure didn’t, I had to pay capital gains tax when I sold one of my two acres of land to my in-laws so they could build a house. I just needed the money to pay off debt and I still ended up owing a lot extra on my income tax. Now I’m in debt to the IRS and will have a payment plan this year. Sell an asset to get out of debt and end up in debt for my trouble.
It's largely the built-in wealth tax from inflation. You sold two acres of land that were still the same two acres of land that you bought or inherited, yet with the declining purchasing power of the Dollar were worth more in Dollars so you owed capital gains. Gains and interest below the rate of inflation shouldn't be taxed.
That's shit and sounds like gods honest truth. Feeling like I'm spinning my wheels and only chance at retirement is societal collapse
Exactly - negligible increase of enforcement on the Rich, and an army of bureaucrats squeezing pennies from those who barely have any...
We need a flat rate tax on everything. No irs nedded.
@@franklinloll2229 Or the ultra-rich should actually pay their fair share - why shouldn't people with obscene amounts of money earned on the back of the masses, and partially attribute to national architecture/programs pay their fair share? Think of all the societal problems that could be solved if the relative few earning godly amounts paid their fair share - the middle-class sure aren't allowed to dodge taxers/employ tax shelters etc.
Professor, why don’t you ever mention that the Fed’s Quantitative Easing policies (that is, maintaining ultra-low interest rates) have been transferring wealth from the Bottom 90 Percent to the Top 10 Percent for the past 13 years? As interest rates fall toward zero, the present value of future cash flows increases, which increases the value of the underlying asset (e.g., stock; real estate). At the same time, savers earn little interest income on their savings.
Savers are also rich. The claim that low interest rates intrinsically worsens inequality without looking at the fiscal expenditure side is highly dubious.
@@MicahErfan I wasn’t attempting to describe all the problems of the world in three sentences.
@@MicahErfan Absolutely, all of those 401Ks and IRA are benefiting from the stock market growth. The only ones who miss out, don't fund these accounts. The individual is the cause of lack of wealth generation is because of their spending habits and lack of thinking about their future.
@@gibblespascack1418 - Wrong. The individuals cause of lack of wealth generation is that the money used to grow those IRS's and 401k's is extracted from from the society in the form of increased costs year over year, with the money from the extraction going to those who have not actually earned that wealth. Blaming the individual is a con job. Over half of the 2020 GDP went to grow the value of financial assets. Compounded interest is wealth extraction, not wealth creation.
@@coolmodelguy6304 Your reason that an IRA or 401k does not grow is because the company makes a profit on the goods sold or are you saying that it is the manpower/raw materials costs? Ok, so the profits go to the company(after paying those expenses), which pays the investors in that company The investors in those companies are the people who own the stock and for public companies, the largest shareholders are the IRAs and 401K funds. So if you have that IRA or 401K and invest in mutual funds, you account grows with the rest of the market. For my S&P fund, that growth rate has been ~12% for the past 30 years. Again, the lack of funding your investment account is the primary reason that people are not generating wealth. People like you spend everything that they earn, no matter how much they earn. That goes for people in the heartland and also people in NYCX who earn over $175K per year. No amount of income is enough when there is no control of spending. If you don't like the companies who are making profits selling you things, don't buy the stuff. And don't even suggest that 401K and IRA management fees(1%) are eating up the ~12% fund growth in the S&P500 mutual funds. That is just stupid.
Average salary across the board is $22.65 hrs? Adjusted for inflation, minimum wage should've been $21.00 hrs ten years ago.
I guarantee that Robert Reich uses every tax break possible.
He makes a fortune giving speeches
This was a fantastic video, but he fails to mention that Reagan’s cut of taxes from 70% top marginal tax to 25% with the idea of trickle down economics, has totally failed miserably.
Yep, pretty much our entire economic problems can be traced back to Reagan
I guess I'm confused how it failed miserably if inflation-adjusted median household income and inflation-adjusted median personal income have both risen significantly (34% and 56%, respectively) since 1981? To the contrary, that sounds like a pretty clear success.
@@mlh5434 where are your sources and are you using real inflation (not the "official" government definition)?
@@sdefonta The Census Bureau's data. Just search for "real median household income FRED" and "real median personal income FRED" and you will see the charts.
"are you using real inflation (not the "official" government definition)"
Lol, this is a neat little trick: "Please cite your sources. But you're not allowed to use official ones." This is what we like to call playing tennis without the net.
@@mlh5434 if you use the same census data starting from 1965 the bottom 75% of income has barely changed (
This is sound information and it infuriates me that my value as a wage earner decreases every year to the point where I am always working two or three jobs and looking for other ways to earn money. Unfortunately, the wealthy apologists who are among us believe that the wealthy pay more than their fair share. It’s going to take real starvation with a side order of cannibalism before they get it.
Stop Getting Used. Start watching 'Second Thought', starting with his videos 'America Compared' and such.
Well said.
A counter argument to taxing the rich though is that by taking the money through taxation only to hand it to even more irresponsible spenders, the government, can lead to even more problems. this can be attributed to the different budgeting systems and decision incentives that they use for allocating the money (spending by a deadline rather then through efficient use of the money to keep a company afloat). I would prefer to leave it up to market forces rather than corrupt politicians who dont provide value in the economy.
This video is highlighting a key issue that happens in the late stages of capitalism, however giving the rich another avenue to move their wealth to provide real value in the economy rather than go into a system that spends irresponsibly is more productive. Instead of giving them a gigantic tax on the wealth assets, allow that money to go towards key critical areas that are needing support (energy crisis, water shortage, etc) and be handled by officials that are not government related. At least in that regard they would have a say in the category that means something to them in which their wealth can be used.
Remember when Dubya insisted that "the Death Tax" affected Average Americans?
*Well, Dubya was lying. Dubya worked for people like this **4:16*
Tell a farmer that fable.
@@edarcuri182 A real Farmer would know that Farms are exempt - because; something about "growing food" sounded important.
You're not criticizing Farmers, are you?
@@edarcuri182 You mean like Monsanto? They would prefer more wealth, and land consolidation.
@@arcanondrum6543 They aren't exempt.
@@youtubesucks1499 Indeed they are. Learn more, THEN Comment. No one will look after a simpleton who is unwilling to learn. You'll just be an angry victim, lashing out. "Different" than now?
Imagine disliking this video & not being a Billionaire. 🤦♂️🤦♂️🤦♂️🤦♂️
@@Zach-ju5vi found the Prager U graduate
@CL Wil Don't forget the simps of big capital
Bootlickers love to worship the undeserved pillaging of their self appointed betters.
@@Zach-ju5vi it is not about blaming rich people, we are talking here about the 1% insanely rich that pay zero taxes while the rest of us are paying maybe more.
enlighten us smart boy ! how does the economy works and tell us why it is okay they shouldn't pay their fair share, or tell us why the people should pay any taxes at all in the first place
Imagine liking this video and having a brain.
@@csanderson5163 so whats wrong with the video since you have such a big brain.
The more one learns about the tax system the easier it is to get tax exemptions. What people should do is learn the system and how to benefit from it rather than try to reform it without knowing what is going on. Those that are rich and have lots of wealth learned the system. Majority of the populace are encouraged NOT to learn the system. But that's my LIMITED view on the subject. I'm a working-class citizen living to paycheck to paycheck as well. But I'm learning ways to invest what I can and lower my credit debt along with budgeting. I feel like I'm getting on track to increasing my personal wealth.
You seem to completely miss the point that the majority don't have the wealth to manipulate the system.
If you think the loopholes in the tax system benefit the non-wealthy you’re sadly mistaken. There may be some that do but they don’t amount to much and the majority of these loopholes benefit the wealthy.
@@MrMooAndMoonSquirrelToo You misunderstood me. YES, the majority of loopholes benefit the wealthy. Learning the system doesn't benefit the working class much, because what they will learn is that there are a lot of tax loopholes for corporations & the wealthy, but not much for the working class.
Literally- the top 25% of earners pay 85% of all taxes.
Yep
We're coming for your money, what are you gonna do about it?
Vote out democrats Is a good start
@@cfri9332 sure. That will raise the poor. You idiot.
@@cfri9332 Democrats are the dumbest party today. Just look at your useless leader. Fools
Imagine doing a whole video on wealth inequality and never mentioning The Fed.
Great way of condensing complicated topics into short videos!
Robert your seminar style posts are excellent. The one thing that needs to be touched on is personal responsibility. I made roughly the same as my co workers over 30 years. We own 2 homes and have a total worth of 2.5 million dollars while having less than 150000 in mortgage debt. My friend and co worker with the same income owns 1 homes they’ve refinanced at least twice and with a total wealth of 1 million dollars with 400000 in mortgage debt. They go on 4 expensive vacations a year as well as buying cars every few years and every toy imaginable. And he can’t understand how we have what we have. Choices and priorities I tell him, that’s all
All the personal responsibility in the world won’t help someone who earns less than $100,000 a year buy a starter home selling for a million dollars. Housing is the best way to build wealth and now that is out of reach for the younger generations. Now with skyrocketing inflation, no job security and outrageous healthcare costs, even if someone could come up with a down payment for a starter home, there is the chance they could lose their job and still lose their home. Or an unforeseen illness or accident could wipe someone out.
Yes, personal responsibility is a must for any adult, but bad things do happen to the responsible.
@@akiram6609 corporate purchasing of residential properties should be outlawed. An individual who buys homes for investment has always been ok though.
Listen to Thomas sowell and you will realize how dishonest Robert Reich is.
@@ronaldreagan-ik6hz agreed. He preaches socialism while living a comfortable lifestyle brought to him by capitalism. He is brilliant though if dishonest
@@akiram6609 read the book “everyday millionaire” or “the millionaire next door”.
You will realize that the average millionaire is everyday people that live very responsible lives.
And they don’t have a victim mentality- like Robert Reich dishonesty sells in his pathetic speeches
I hate the lesson here on Capital Gains for estate because the money used to purchase those assets were bought with after tax dollars. Imagine being taxed and barely having enough left to buy a house and you can't leave it to your kids because the government is going to tax the asset when you sign it over to your children. Taxing a man's inheritance is just morally wrong, especially when considering everything was purchased with money that has already been taxed.
That’s why I vote Republican
These economic concepts should be taught in every school, even to the very young.
Aaaaand conservatives screeching about critical wealth theory in 3.... 2.... 1....
@@ThePanMan11 lol true
Robert can’t do economics
I wish Professor Reich would also focus on how wealth inequality is a damper on the economy. Imbalances and stratification create fetters in the consumer economy, production, research etc. that are driven by an aspiring middle class. Economic oligarchy starts eroding it’s own source of wealth and power as the middle class becomes poor, less educated and unable to drive a robust culture and its economy. Collapse will ensue.
Hallelujah! A commenter that still remembers the lessons of the Great Depression. Inverting your insight also implies that social wealth can be created by ending poverty, too.
Talk about a damper on the economy . . . . . . . . Here are some facts for you, taken straight from the Federal Reserve. Ever since the final business quarter of 1980, the sum total of financial assets (from which IRA's and 401k's are derived), has been greater than our GDP. This happened because Congress gutted company funded pensions in 1974. At the end of 1980, the sum total financial assets was half a trillion more than our GDP. By 1990 that gap was enlarged to $6.9 trillion. By the year 2000 the gap had widened further to $21.2 trillion. Today that gap is $93.684 trillion or 4.8 times the size of our GDP. Today the gap has widened so far that extraction from the population is simply not enough to fuel a 12% annual growth rate, so the government is now being looted. The money to grow IRA's and 401k's is stolen, not earned. What gives anyone the right to take money they have not earned? Also, what happens when there is no more loot to steal?
Now when I say "looting" and "stolen", this is all legal and on the up and up, because the wealthy paid for the politicians who made it all legal. If we are supposed to live in the "land of the free", why are these few people able to literally strip us of our freedom through legalized theft?
All of these economically-foolish short-term-thinking business/political dealings for the top 1% will cause ruin for all.
Economics Explained said wealth inequality isn't a big deal economically but I don't know.
If we continue this route, we are going to end up living like many developing countries where a few have money and the majority struggle to support themselves.
We would *_LOVE_* to see this guy discuss the *Pareto Principle* with Jordan Peterson!
No kidding!!!
Imagine inter-generational farmers losing the step up in cost basis “loop hole” he’s describing. Taxing those assets at least once per generation would drive up costs significantly for EVERYONE and have a disproportionate effect on low income individuals; not to mention upset ALL farmers. Good luck with that platform.
Yep. That’s how stupid democrats are.
What Roosevelt accomplished was vital and extremely impressive considering the power of the opposition he had to overcome
How can today’s Americans hope for anything remotely similar in this moment, when the power of wealthy opposition has increased so dramatically, and corporate media has indoctrinated millions of low income Americans to fight ferociously for the perpetuation of their own oppression, professor ?
A lot did it by making it racial based. "How dare those "poor" people demand socialist programs. That means my taxes will go up. I do not want to pay for another person's healthcare" By perpetuating racial and class warfare they are able to keep taxes low by manipulating the population into believing that they would suffer from tax increases.
The Filibusters also helps reaffirm minority by making it difficult to pass meaningful bills because you have to get 60 senators to agree and that's nearly impossible. But there is a solution and that is the midterms. Americans have to increase the threshold by three to make Manchin and Simena's veto power pointless and then that would allow Biden to pass bills, making Americans especially those who aren't politically suave to see actual results and those actual results will being people over.
Don't worry, Joe Biden is gonna solve it.
@@sirmclovin9184 he has 3 years left I'm scared
Greatest con of all time
Extend taxes ruined America cause idiots wanted free stuff
Sec. Reich, I had no idea you had a TH-cam channel. I applaud your efforts to find everyday Americans where they are, using media they consume, to inform and educate people about important issues. This is how change starts, because we need more than news junkies/political scientists/economists to build momentum at a grassroots level.
Also because the media is owned and run by powerful wealthy people or families and are corporations too they push against this stuff because it runs against the rigged tax system that greatly benefits them. FOX is laughable when they push against it, but you get it with media that supposedly is considered "liberal" too.
Roberts ideas are failing in every progressive city in America
Thanks for what you are doing Robert.
Puke
What? Telling lie after lie? Wow.
Income and wealth are not distributed evenly. So is everything else in the world. Athletic capability. Artistic talent. Song writing. Writing books. Get over it. Quit being a victim.
Work ethic and common sense are also not evenly distributed. Work hard, pay attention. Save every dollar you can when you’re young. Quit buying things that you can’t afford to impress people that don’t like you anyway. Hard work and diligence are the keys do financial independence.
Taxing wealth is simply Our government stealing from those who have worked hard, saved and invested
Exactly. That’s why I left the democrat party during Obama’s term.
Very well said! Thank you for all you do for us regular folks. Now we just have to "splain it" to unwilling minds and ears .Thanks amillion.
When during the Trump administration the 1/5th of wage earners had their incomes rise the fastest of all groups. That was the first time that had happened since the George W Bush administration.
Because both Trump and W. used Kennedy's theory of using lower taxes, less immigration, deregulation, and smaller government to tighten up the labor market. Which raises wages, allows mobility, allows for advancement, and gives people dignity.
Compare that to the Democrat policies of using high taxes, over regulation, open immigration, and big government to put permanent slack into the labor market. Which drives down wages and drives up housing prices at the same time, to the point tens of millions of people don't have any money left over at the end of the month. And it's the low wages at the bottom that allows the excesses at the top, causing the wealth gap.
Raising the bottom 1/5th of wage earners wealth relative to everyone else is something liberals will never be able to do because of their policies.
If Reich actually cared about working class people, Reich would be a Kennedy Reagan conservative.
Splain it? Why did you say it like that?
"Lucy, you've got some splaining to do!"
- Classic line from the TV show. I Love Lucy.
So s
Susan , You enjoy being s tool? So splain it to me Puddin' What have the Gimmedats done that makes you think they give a rip about 'regular folks?
Work harder. No one is holding you down but yourself.
And try working for welfare - you will get sick to your stomach watching the poor who do nothing get big fat checks.
we need a separation of industry and state. stop letting corporations make the law or fund politics. and just get rid of lobbyists all together.
sure, it'd mean we couldn't tax companies, but it's not like they're paying taxes now. this way, they wouldn't get representation.. and the only thing the govt. would have left to represent is (gasp) the citizens.
Mr Reich, I really respect your opinion and knowledge but honestly many of us "working class" often do dumb things with our money and never accumulate wealth. What is the savings rate in the US. What about debt? We spend just about every cent we earn from our jobs. We spend it in dumb things like the latest and greatest cellphones and other tech. How many of us are willing to disconnect and get better education? Our kids think they are entitled brats that don't know what NO means...
That's the great thing about America
Anyone can make it big in America
Good, Robert! Very, very, very clear! You are an excellent teacher!
So was Karl Marx!
The Netherlands, I heard, has a clever way of closing the loopholes even for wealth that's held by their citizens regardless of where it's located. To me, this would make more sense than a wealth tax. The "Money and Macro" channel talks about it.
How about you focus on making your own money rather than how to steal it from someone else? Jesus. Leftist fools.
I love your videos. But if your wealth tax starts at $1M it will be people who worked hard and saved who pay the vast majority of such a tax, while the true dynastic wealthy people will find a way to avoid paying. It will become just another tax on the people in the middle-Americans who are doing well and pay taxes, but are not amount the super rich. Any tax who’s objective is to close the wealth gap needs to preserve the savings of those folks and truly go after the filthy rich-another measure must be found. But go after the billionaire class, not hard working people.
Would a tax incentive for companies labor cost help increase wages?
It seems to me this would give companies more incentive to raise wages. The more you pay in wages the lower your tax rate.
This is based on a company actually paying taxes.
You know how Wealth inequality has spiraled out of control? Bailouts, trade restrictions, IP laws, regulations that get rid of competition, Zoning laws, drug laws, certificate of needs, etc. Why don't you go after these things that would have the MOST impact on people's lives?
uhhh probabl cuz they offer large pots of gold to folks who know how to take advantage i.e. payroll protection which alost 75 percent stayed with the employer and not 'doled' out to employees!!!!
@@elizabethpeterson56 you are just adding to my point.
Because it's just easier to yell into the void "Rich people bad! Hurr durrrrr!" People don't realize that government is the problem.
Nah. Just stop voting for democrats for 10 years.
Wealth inequality is the most important issue of our time...
The solution starts with UBI and (actually) taxing the rich 🤑
@@Zach-ju5vi laughable reply... You offer no counter solution just vague criticism because you're scared of the word socialism
@@Zach-ju5vi another laughable reply showing how ignorant you truly are on the topic... The US sanctions crippled both those countries.... and IDC what you have to say, no one invited you and your asinine POV to the discussion
@@Zach-ju5vi so I will ask, what are your solutions? I'm up for solutions, I have doubts about UBI, would employers pay even less knowing people are getting UBI, would that eliminate other social programs? I don't know enough about it. I would be willing to listen to your solutions.
Instead of Universal Basic Income, Universal Basic Services (i.e. healthcare, education) would be better. Inflation is an actual issue with UBI.
@@Zach-ju5vi One of the first things that needs to happen is for our government to stop printing so much money. The insane amount of money printing going on hasn't caused a rapid increase in the rate our inflation is increasing because the other economic troubles caused by current world situations are keeping the insane money printing our government is doing in check. In other words, we've got an unstable equilibrium, sort of.
the situation is terrible… my panic attack experienced a panic attack. and the worst thing is that we do not control this process. There are fewer people who understand.
Increasing funding to the IRS, without oversight, is fraught. Recent increases have resulted in INCREASED taxation and enforcement on the middle and lower classes - take the eBay/Craigslist/Etsy, etc. reporting and record-keeping requirements for people selling only $600/yr (down from $20000)! Exactly which extremely wealthy people are going to be paying this?? Arguing for more IRS agents, to be utilized enforcing actions against Grandma selling off her ancient possessions, which we all know have no extant proof of purchase, is robbing the poor to spare the rich. Nice trick Hood Robin! The IRS has plenty of agents to pursue the thieving Rich, starting with members of Congress, whose wealth cannot be explained by their salaries. If only there was the mandate to do so, instead of pursuing Mary Jane, selling jars of peach jam on Etsy...it's just plain corruption. And it stinks.
This is such a well put together video. It's depressing, but informative and factual. I don't have much hope things will change, even if the people speak up, but I would be so happy to be proven wrong.
It is a problem that has existed for thousands of years. I feel like it is out natural instinct to behave in this manner. There are many more millions of Joe Blows than Jeff Bezos if they really need that wealth they could just take it. But instead support it and suckle off of the teet of the rich.
I just wish he would have explained how to get rich, instead of just complaining about the rich. He could have spent 10 min. on how to be rich. He seems to be giving excuses why we are all not rich.
@KrazyKoto - it is not factual. A 2% wealth tax is enormous, it is not a drop in the bucket.
No, he is explaining why we are not all rich.
you are correct about the depressing part but completely wrong about the factual part.
my grampa come from Germany and worked his ass off so that his kids could have a better life, which they did and now my dad is a doctor but most of these taxes are killing him. this vid makes me depressed because he is just bairn washing you. using very harsh words to make it sound like the republicans sound evil. anybody can become rich u just need to want it more than most people. all that happening today is news sites are just making the 2 political parties hate each other more and more when we should be coming closer together. i hate this guy in the video
Thank you for being a true steward in your realm. I became a fan of yours in B school about 10 years ago. I'm praying for all the suggestions you laid out to come to fruition. I am below the below the poverty line and it is a good motivation for me to be politically informed. I am amazed by those willfully choose not too or place their votes to populists that are blatantly working against the interest of the common good. Is there still one? Thank you from a recovering M.B.A.
Well Bernie & his movement of fellow Progressives like the Squad, Sen, Dick Durbin, Jeff Merkley to name some (even Warren though she isn't part of that group) have long been calling for this stuff but , yeah he is smeared in the media by many - so happy when he ran for the POTUS nomination (though I knew he wouldn't get it) because he put the spotlight and still does on this stuff. I love the effort by Robert too.
They’re all populist. I’d say the choices are few and thin.
Common good? You coward. We are a nation of individuals not fucking communists.
They will never willingly give up their wealth. So we must take it from them
Eat The Rich! ✊
Roosevelt also broke up market monopolies.
Thank you Mr. Reich for the clear and concise description of this often misunderstood issue. Yourself and Bernie Sanders are two of the best political advocates the working class have. Keep up the good work!
Incorrect. reich and the rest of the "progressives" seek power by creating resentment.
Think it through and tell me how much of the economy should government take?
Do you know how much it already take?!
Oh my god. Look up the few debates Robert had done. He dials back his lies a lot when he debates. - signs of a true liar.
Regan economics started the .MISSERY AND REAL POVERTY IN THE USA. The homeless can thank REGONOMICS for being hoples today. THE TRUTH SCARES THE S_ _ T out of people like you. ROBERT AND BERNIE Realy scare you. We the reasonable people will keep listening to superior minds, we will not give up the fight against the OLIGARCS OR DICTATORS WANABE LIKE TRUMP. THE FIGHT IS ON.
Sanders is a Communist.
@@ronaldreagan-ik6hzyep
I've just recently discovered this channel. I'm going to subscribe because I find these short educational videos are great for helping me to explain things more succinctly!
When during the Trump administration the 1/5th of wage earners had their incomes rise the fastest of all groups. That was the first time that had happened since the George W Bush administration.
Because both Trump and W. used Kennedy's theory of using lower taxes, less immigration, deregulation, and smaller government to tighten up the labor market. Which raises wages, allows mobility, allows for advancement, and gives people dignity.
Compare that to the Democrat policies of using high taxes, over regulation, open immigration, and big government to put permanent slack into the labor market. Which drives down wages and drives up housing prices at the same time, to the point tens of millions of people don't have any money left over at the end of the month. And it's the low wages at the bottom that allows the excesses at the top, causing the wealth gap.
Raising the bottom 1/5th of wage earners wealth relative to everyone else is something liberals will never be able to do because of their policies.
If Reich actually cared about working class people, Reich would be a Kennedy Reagan conservative.
Lol. Robert e Reich is a lying fool
Agree with some of the points but not the 2% wealth tax on wealth over $1m. You completely lost me there. The problem is Dynastic Wealth and steps should be taken to reduce that and increase efforts to give income earners (including high income earners) greater tax breaks and incentives to save.
Great graphics!
Hi Professor,
Have you interviewed and had a discussion about this with professor Richard Wolff from democracy at work?
Would love to hear your thoughts on the stuff he talks about.
Thanks.
They've debated capitalism - Reich believes in it, Wolff wants it to go away...
They agree on quite a lot and have referenced each other on the internet; Reich believes: with strong regulation, Capitalism can work for everyone. Wolff believes that Capitalism's problems are inherent in its structure, so 'saving' it is a fool's errand.
This is an impressive video! Thanks Uncle Bob for educating the public and raising our collective public financial intelligence needed to hopefully alter the course of the nation’s democratic experiment.
Democrats are fools for listening to Reich. But hell, look how many idiots voted for Biden?
Thank god we are a constitutional republic
I am a self-published author. I sold $100 worth of books in 2021. Amazon 1099's authors and I neglected to include this in my filing and the IRS flagged me for not including the 1099, for $100 which is not required because it is under the required amount.
Just make it so that only x amount of dollars can be passed on. The rest gets distributed or goes to charities