1 00:00:48,700 --> 00:00:51,229 During the great depression, which I'm old enough to remember, 2 00:00:51,330 --> 00:00:52,338 there was... 3 00:00:52,438 --> 00:00:55,507 And most of my family were unemployed working class... 4 00:00:55,607 --> 00:00:57,242 There wasn't... it was bad, 5 00:00:57,342 --> 00:00:59,644 much worse subjectively than today. 6 00:00:59,744 --> 00:01:03,104 But there was an expectation that things were going to get better. 7 00:01:04,346 --> 00:01:06,480 There was a real sense of hopefulness. 8 00:01:06,782 --> 00:01:08,181 There isn't today. 9 00:01:17,624 --> 00:01:21,295 Inequality is really unprecedented. 10 00:01:21,395 --> 00:01:23,339 If you look at total inequality, 11 00:01:23,440 --> 00:01:25,997 it's like the worst periods of American history. 12 00:01:31,697 --> 00:01:33,797 But if you refine it more closely, 13 00:01:33,897 --> 00:01:37,417 the inequality comes from the extreme wealth 14 00:01:37,518 --> 00:01:40,037 in a tiny sector of the population, 15 00:01:40,144 --> 00:01:41,676 a fraction of one percent. 16 00:01:44,813 --> 00:01:48,050 There were periods like the gilded age in the '20s 17 00:01:48,150 --> 00:01:50,085 and the roaring '90s and so on, 18 00:01:50,185 --> 00:01:52,718 when a situation developed rather similar to this. 19 00:01:53,786 --> 00:01:55,954 Now, this period is extreme... 20 00:01:56,156 --> 00:01:58,658 Because if you look at the wealth distribution, 21 00:01:58,758 --> 00:02:03,393 the inequality mostly comes from super wealth. 22 00:02:07,197 --> 00:02:11,232 Literally, the top 1/10th of a percent are just super wealthy. 23 00:02:12,767 --> 00:02:15,804 Not only is it extremely unjust in itself... 24 00:02:16,304 --> 00:02:20,505 Inequality has highly negative consequences on the society as a whole... 25 00:02:22,708 --> 00:02:28,379 Because the very fact of inequality has a corrosive, harmful effect on democracy. 26 00:02:34,218 --> 00:02:36,721 You open by talking about the American dream. 27 00:02:36,821 --> 00:02:39,254 Part of the American dream is class mobility. 28 00:02:39,354 --> 00:02:42,254 you're born poor, you work hard, you get rich. 29 00:02:42,354 --> 00:02:47,030 It was possible for a worker to get a decent job, buy a home... 30 00:02:47,130 --> 00:02:50,063 Get a car, have his children go to school. 31 00:02:52,199 --> 00:02:53,565 It's all collapsed. 32 00:03:07,846 --> 00:03:12,816 Imagine yourself in an outside position, looking from Mars. 33 00:03:13,751 --> 00:03:15,084 What do you see? 34 00:03:40,643 --> 00:03:42,044 In the United States, 35 00:03:42,145 --> 00:03:45,079 there are professed values like democracy. 36 00:03:51,552 --> 00:03:56,188 In a democracy, public opinion is going to have some influence on policy. 37 00:04:00,826 --> 00:04:03,313 And then, the government carries out actions 38 00:04:03,414 --> 00:04:05,431 determined by the population. 39 00:04:05,531 --> 00:04:07,397 That's what democracy means. 40 00:04:11,835 --> 00:04:15,873 It's important to understand that privileged and powerful sectors 41 00:04:15,973 --> 00:04:18,333 have never liked democracy... 42 00:04:18,434 --> 00:04:20,711 and for very good reasons. 43 00:04:21,211 --> 00:04:24,981 Democracy puts power into the hands of the general population 44 00:04:25,081 --> 00:04:26,613 and takes it away from them. 45 00:04:28,816 --> 00:04:32,818 It's kind of a principle of concentration of wealth and power. 46 00:04:48,334 --> 00:04:52,272 Concentration of wealth yields concentration of power... 47 00:04:52,372 --> 00:04:56,909 Particularly so as the cost of elections skyrockets, 48 00:04:57,009 --> 00:05:03,015 which kind of forces the political parties into the pockets of major corporations. 49 00:05:03,615 --> 00:05:08,353 And this political power quickly translates into legislation 50 00:05:08,453 --> 00:05:10,989 that increases the concentration of wealth. 51 00:05:11,389 --> 00:05:14,825 So fiscal policy, like tax policy... 52 00:05:14,925 --> 00:05:16,994 Deregulation... 53 00:05:17,894 --> 00:05:22,332 Rules of corporate governance and a whole variety of measures... 54 00:05:22,632 --> 00:05:27,670 Political measures, designed to increase the concentration of wealth and power, 55 00:05:27,770 --> 00:05:30,579 which, in turn, yields more political power 56 00:05:30,680 --> 00:05:31,904 to do the same thing. 57 00:05:33,707 --> 00:05:35,727 And that's what we've been seeing. 58 00:05:39,578 --> 00:05:42,646 So we have this kind of vicious cycle in progress. 59 00:05:47,752 --> 00:05:54,226 You know, actually, it is so traditional that it was described by Adam Smith in 1776. 60 00:05:54,326 --> 00:05:56,492 You read the famous "Wealth of Nations." 61 00:06:00,530 --> 00:06:04,101 He says in England, the principal architects of policy 62 00:06:04,201 --> 00:06:06,003 are the people who own the society. 63 00:06:06,103 --> 00:06:09,006 In his day, merchants and manufacturers. 64 00:06:09,806 --> 00:06:12,366 And they make sure that their own interests 65 00:06:12,467 --> 00:06:14,877 are very well cared for, 66 00:06:14,977 --> 00:06:19,546 however grievous the impact on the people of England or others. 67 00:06:21,815 --> 00:06:24,418 Now, it's not merchants and manufacturers, 68 00:06:24,518 --> 00:06:27,518 it's financial institutions and multinational corporations. 69 00:06:28,753 --> 00:06:33,458 The people who Adam Smith called the "masters of mankind," 70 00:06:33,558 --> 00:06:36,079 and they're following the vile maxim, 71 00:06:36,180 --> 00:06:38,895 "all for ourselves and nothing for anyone else." 72 00:06:41,831 --> 00:06:46,403 They're just going to pursue policies that benefit them and harm everyone else. 73 00:06:46,803 --> 00:06:50,157 And in the absence of a general popular reaction, 74 00:06:50,258 --> 00:06:52,806 that's pretty much what you'd expect. 75 00:07:03,617 --> 00:07:08,289 Right through American history, there's been an ongoing clash... 76 00:07:08,389 --> 00:07:14,360 Between pressure for more freedom and democracy coming from below, 77 00:07:14,460 --> 00:07:19,629 and efforts at elite control and domination coming from above. 78 00:07:24,401 --> 00:07:26,521 It goes back to the founding of the country. 79 00:07:29,938 --> 00:07:31,841 James Madison, the main framer, 80 00:07:31,941 --> 00:07:34,550 who was as much of a believer in democracy 81 00:07:34,651 --> 00:07:37,112 as anybody in the world in that day, 82 00:07:37,212 --> 00:07:38,480 nevertheless felt that 83 00:07:38,581 --> 00:07:41,016 the United States system should be designed, 84 00:07:41,116 --> 00:07:44,786 and indeed with his initiative was designed, 85 00:07:44,886 --> 00:07:48,523 so that power should be in the hands of the wealthy... 86 00:07:48,823 --> 00:07:52,760 Because the wealthy were the more responsible set of men. 87 00:07:52,860 --> 00:07:56,630 And, therefore, the structure of the formal constitutional system 88 00:07:56,730 --> 00:07:59,499 placed most power in the hands of the senate. 89 00:07:59,599 --> 00:08:02,502 Remember, the senate was not elected in those days. 90 00:08:02,602 --> 00:08:04,737 It was selected from the wealthy. 91 00:08:04,837 --> 00:08:06,301 Men, as Madison put it, 92 00:08:06,402 --> 00:08:09,839 "had sympathy for property owners and their rights." 93 00:08:12,476 --> 00:08:15,476 If you read the debates at the constitutional convention... 94 00:08:16,713 --> 00:08:20,384 Madison said, "the major concern of the society has to be 95 00:08:20,484 --> 00:08:23,785 to protect the minority of the opulent against the majority." 96 00:08:27,656 --> 00:08:29,358 And he had arguments. 97 00:08:29,458 --> 00:08:31,927 Suppose everyone had a vote freely. 98 00:08:32,027 --> 00:08:35,630 He said, "well, the majority of the poor would get together 99 00:08:35,730 --> 00:08:38,866 and they would organize to take away the property of the rich." 100 00:08:38,966 --> 00:08:42,669 And, he said, "that would obviously be unjust, so you can't have that." 101 00:08:42,769 --> 00:08:46,169 So, therefore the constitutional system has to be set up to prevent democracy. 102 00:08:57,914 --> 00:09:02,853 That's of some interest that this debate has a hoary tradition. 103 00:09:02,953 --> 00:09:07,722 Goes back to the first major book on political systems, Aristotle's "politics." 104 00:09:09,858 --> 00:09:13,028 He says, "of all of them, the best is democracy," 105 00:09:13,128 --> 00:09:17,129 but then he points out exactly the flaw that Madison pointed out. 106 00:09:20,700 --> 00:09:23,403 If Athens were a democracy for free men, 107 00:09:23,503 --> 00:09:26,703 the poor would get together and take away the property of the rich. 108 00:09:27,972 --> 00:09:31,543 Well, same dilemma, they had opposite solutions. 109 00:09:31,643 --> 00:09:35,547 Aristotle proposed what we would nowadays call a welfare state. 110 00:09:35,647 --> 00:09:37,607 He said, "try to reduce inequality." 111 00:09:42,585 --> 00:09:45,388 So, same problem, opposite solutions. 112 00:09:45,488 --> 00:09:48,791 One is reduce inequality, you won't have this problem. 113 00:09:48,891 --> 00:09:50,690 The other is reduce democracy. 114 00:09:57,664 --> 00:09:59,667 If you look at the history of the United States... 115 00:09:59,767 --> 00:10:02,903 It's a constant struggle between these two tendencies. 116 00:10:03,003 --> 00:10:08,038 A democratizing tendency that's mostly coming from the population, pressure from below 117 00:10:08,138 --> 00:10:13,146 and you get this constant battle going on, periods of regression, periods of progress. 118 00:10:13,246 --> 00:10:18,616 The 1960s for example, were a period of significant democratization. 119 00:10:33,062 --> 00:10:37,000 Sectors of the population that were usually passive 120 00:10:37,100 --> 00:10:41,869 and apathetic became organized, active, started pressing their demands. 121 00:10:46,941 --> 00:10:52,811 And they became more and more involved in decision-making, activism and so on. 122 00:10:54,079 --> 00:10:56,847 It just changed consciousness in a lot of ways. 123 00:11:02,829 --> 00:11:03,855 Minority rights 124 00:11:03,955 --> 00:11:07,925 If democracy means freedom, why aren't our people free? 125 00:11:08,025 --> 00:11:11,228 If democracy means justice, why don't we have justice? 126 00:11:11,328 --> 00:11:15,597 If democracy means equality, why don't we have equality? 127 00:11:15,697 --> 00:11:17,273 Women's rights 128 00:11:17,373 --> 00:11:20,837 This inhuman system of exploitation will change, 129 00:11:20,937 --> 00:11:24,874 but only if we force it to change, and force it together. 130 00:11:24,974 --> 00:11:26,609 Concern for the environment. 131 00:11:26,709 --> 00:11:28,911 A unique day in American history is ending, 132 00:11:29,011 --> 00:11:32,814 a day set aside for a nationwide outpouring of mankind 133 00:11:32,915 --> 00:11:34,680 seeking its own survival. 134 00:11:35,073 --> 00:11:36,473 Opposition to aggression 135 00:11:36,573 --> 00:11:39,787 I say to those who criticize us for the militancy of our dissent 136 00:11:39,887 --> 00:11:42,122 that if they are serious about law and order, 137 00:11:42,222 --> 00:11:44,891 they should first provide it for the Vietnamese people, 138 00:11:44,991 --> 00:11:48,094 for our own black people and for our own poor people. 139 00:11:48,194 --> 00:11:49,795 Concern for other people. 140 00:11:49,895 --> 00:11:51,864 One day we must ask the question, 141 00:11:51,964 --> 00:11:54,600 "why are there 40 million poor people in America?" 142 00:11:54,700 --> 00:11:57,603 When you begin to ask that question, 143 00:11:57,703 --> 00:12:00,606 you're raising a question about the economic system, 144 00:12:00,706 --> 00:12:02,841 about a broader distribution of wealth, 145 00:12:02,941 --> 00:12:07,378 the question of restructuring the whole of American society. 146 00:12:07,478 --> 00:12:09,398 These are all civilizing effects... 147 00:12:12,714 --> 00:12:14,147 And that caused great fear. 148 00:12:29,796 --> 00:12:34,668 I hadn't anticipated the power... 149 00:12:34,768 --> 00:12:38,371 I should've, but I didn't anticipate the power of the reaction 150 00:12:38,471 --> 00:12:40,840 to these civilizing effects of the '60s. 151 00:12:40,940 --> 00:12:46,242 I did not anticipate the strength of the reaction to it. 152 00:12:49,813 --> 00:12:51,113 The backlash. 153 00:12:59,888 --> 00:13:04,093 There has been an enormous concentrated, coordinated... 154 00:13:04,193 --> 00:13:06,829 Business offensive beginning in the '70s 155 00:13:06,929 --> 00:13:10,432 to try to beat back the egalitarian efforts 156 00:13:10,532 --> 00:13:12,765 that went right through the Nixon years. 157 00:13:13,037 --> 00:13:14,217 You see it in many respects 158 00:13:14,317 --> 00:13:20,105 Over on the right, you see it in things like the famous Powell memorandum... 159 00:13:22,241 --> 00:13:25,044 Sent to the chamber of commerce, the major business lobby, 160 00:13:25,144 --> 00:13:28,047 by later supreme court justice Powell... 161 00:13:28,147 --> 00:13:32,215 Warning them that business is losing control over the society... 162 00:13:35,252 --> 00:13:38,322 And something has to be done to counter these forces. 163 00:13:38,422 --> 00:13:40,924 Of course, he puts it in terms of defense, 164 00:13:41,024 --> 00:13:43,457 "defending ourselves against an outside power." 165 00:13:49,363 --> 00:13:51,941 But if you look at it, it's a call for business to use 166 00:13:52,042 --> 00:13:54,068 its control over resources 167 00:13:54,168 --> 00:13:58,236 to carry out a major offensive to beat back this democratizing wave. 168 00:14:08,346 --> 00:14:12,050 Over on the liberal side, there's something exactly similar. 169 00:14:12,150 --> 00:14:17,822 The first major report of the trilateral commission 170 00:14:17,922 --> 00:14:21,456 is concerned with this. It's called "the crisis of democracy." 171 00:14:23,358 --> 00:14:26,128 Trilateral commission is liberal internationalists... 172 00:14:26,228 --> 00:14:29,231 Their flavor is indicated by the fact that 173 00:14:29,331 --> 00:14:31,612 they pretty much staffed the Carter administration. 174 00:14:35,903 --> 00:14:40,408 They were also appalled by the democratizing tendencies of the '60s, 175 00:14:40,508 --> 00:14:43,811 and thought we have to react to it. 176 00:14:43,911 --> 00:14:47,579 They were concerned that there was an "excess of democracy" developing. 177 00:14:51,150 --> 00:14:56,222 Previously passive and obedient parts of the population, 178 00:14:56,322 --> 00:14:58,390 what are sometimes called, "the special interests," 179 00:14:58,490 --> 00:15:02,394 were beginning to organize and try to enter the political arena, 180 00:15:02,494 --> 00:15:06,297 and they said, "that imposes too much pressure on the state. 181 00:15:06,397 --> 00:15:08,766 It can't deal with all these pressures." 182 00:15:08,866 --> 00:15:14,068 So, therefore, they have to return to passivity and become depoliticized. 183 00:15:15,938 --> 00:15:18,807 They were particularly concerned with what was happening to young people. 184 00:15:18,907 --> 00:15:20,875 "The young people are getting too free and independent." 185 00:15:20,975 --> 00:15:23,010 None of us will begin any violence. 186 00:15:23,110 --> 00:15:27,214 If there's any violence, it will be because of the police. 187 00:15:27,314 --> 00:15:31,218 The way they put it, there's failure on the part of the schools, 188 00:15:31,318 --> 00:15:33,553 the universities, the churches... 189 00:15:33,653 --> 00:15:37,857 The institutions responsible for the "indoctrination of the young." 190 00:15:37,957 --> 00:15:39,389 Their phrase, not mine. 191 00:15:44,495 --> 00:15:47,797 If you look at their study, there's one interest they never mention... 192 00:15:47,897 --> 00:15:49,353 Private business 193 00:15:49,453 --> 00:15:50,577 And that makes sense, 194 00:15:50,678 --> 00:15:53,104 they're not special interest, they're the national interest, 195 00:15:53,204 --> 00:15:54,352 kind of by definition. 196 00:15:54,453 --> 00:15:55,473 So they're okay. 197 00:15:55,573 --> 00:15:59,977 They're allowed to, you know, have lobbyists, buy campaigns, 198 00:16:00,077 --> 00:16:02,980 staff the executive, make decisions, that's fine. 199 00:16:03,080 --> 00:16:06,550 But it's the rest, the special interests, the general population, 200 00:16:06,650 --> 00:16:08,149 who have to be subdued. 201 00:16:15,656 --> 00:16:17,125 Well, that's the spectrum. 202 00:16:17,225 --> 00:16:21,129 It's the kind of ideological level of the backlash. 203 00:16:21,229 --> 00:16:25,066 But the major backlash, which was in parallel to this... 204 00:16:25,166 --> 00:16:27,466 Was just redesigning the economy. 205 00:16:41,680 --> 00:16:44,374 Since the 1970s, there's been a 206 00:16:44,475 --> 00:16:48,487 concerted effort on the part of the masters of mankind, 207 00:16:48,587 --> 00:16:50,455 the owners of the society, 208 00:16:50,555 --> 00:16:54,125 to shift the economy in two crucial respects. 209 00:16:54,225 --> 00:16:59,529 One, to increase the role of financial institutions, 210 00:16:59,629 --> 00:17:03,299 banks, investment firms, so on... 211 00:17:03,399 --> 00:17:05,467 Insurance companies. 212 00:17:05,567 --> 00:17:09,637 By 2007, right before the latest crash, 213 00:17:09,737 --> 00:17:13,438 they had literally 40% of corporate profits... 214 00:17:16,375 --> 00:17:18,275 Far beyond anything in the past. 215 00:17:26,683 --> 00:17:30,321 Back in the 1950s, as for many years before, 216 00:17:30,421 --> 00:17:34,124 the United States economy was based largely on production. 217 00:17:34,224 --> 00:17:38,759 The United States was the great manufacturing center of the world. 218 00:17:45,332 --> 00:17:49,604 Financial institutions used to be a relatively small part of the economy 219 00:17:49,704 --> 00:17:54,574 and their task was to distribute unused assets like, 220 00:17:54,674 --> 00:17:58,277 say, bank savings to productive activity. 221 00:17:58,377 --> 00:18:01,146 The bank always has on hand a reserve of money 222 00:18:01,246 --> 00:18:03,648 received from the stockholders and depositors. 223 00:18:03,748 --> 00:18:06,183 On the basis of these cash reserves, 224 00:18:06,283 --> 00:18:07,919 a bank can create credit. 225 00:18:08,020 --> 00:18:11,321 So besides providing a safe place for depositing money, 226 00:18:11,421 --> 00:18:13,049 a bank serves a community 227 00:18:13,150 --> 00:18:16,359 by making additional credit available for many purposes. 228 00:18:16,459 --> 00:18:19,995 For a manufacturer to meet his payroll during slack selling periods, 229 00:18:20,095 --> 00:18:22,998 or a merchant to enlarge and remodel his store, 230 00:18:23,098 --> 00:18:27,235 and for many other good reasons why people are always needing more credit 231 00:18:27,335 --> 00:18:29,670 than they have immediately available. 232 00:18:29,770 --> 00:18:32,531 That's a contribution to the economy. 233 00:18:33,272 --> 00:18:35,241 Regulatory system was established. 234 00:18:35,341 --> 00:18:37,443 Banks were regulated. 235 00:18:37,543 --> 00:18:40,179 Commercial and investment banks were separated, 236 00:18:40,279 --> 00:18:46,484 cut back their risky investment practices that could harm private people. 237 00:18:46,584 --> 00:18:49,450 There had been, remember, no financial crashes 238 00:18:49,551 --> 00:18:51,589 during the period of regulation. 239 00:18:51,689 --> 00:18:54,423 By the 1970s, that changed. 240 00:19:03,632 --> 00:19:08,237 You started getting that huge increase in the flows of speculative capital, 241 00:19:08,337 --> 00:19:10,539 just astronomically increase, 242 00:19:10,639 --> 00:19:13,141 enormous changes in the financial sector 243 00:19:13,241 --> 00:19:17,378 from traditional banks to risky investments, 244 00:19:17,478 --> 00:19:22,282 complex financial instruments, money manipulations and so on. 245 00:19:22,382 --> 00:19:27,851 Increasingly, the business of the country isn't production, at least not here. 246 00:19:29,587 --> 00:19:32,757 The primary business here is business. 247 00:19:32,857 --> 00:19:36,060 You can even see it in the choice of directors. 248 00:19:36,160 --> 00:19:39,580 So, a director of a major American corporation 249 00:19:39,681 --> 00:19:41,432 back in the '50s and '60s 250 00:19:41,532 --> 00:19:43,556 was very likely to be an engineer, 251 00:19:43,657 --> 00:19:46,370 somebody who graduated from a place like MIT, 252 00:19:46,470 --> 00:19:48,438 maybe industrial management. 253 00:19:48,538 --> 00:19:52,675 More recently, the directorship and the top managerial positions 254 00:19:52,775 --> 00:19:54,777 are people who came out of business schools, 255 00:19:54,877 --> 00:19:58,378 learned the financial trickery of various kinds, and so on. 256 00:20:00,214 --> 00:20:04,285 By the 1970s, say General Electric could make more profit 257 00:20:04,385 --> 00:20:05,833 playing games with money 258 00:20:05,934 --> 00:20:08,987 than you could by producing in the United States. 259 00:20:12,625 --> 00:20:14,761 You have to remember that General Electric 260 00:20:14,861 --> 00:20:18,331 is substantially a financial institution today. 261 00:20:18,431 --> 00:20:20,112 It makes half its profits 262 00:20:20,213 --> 00:20:23,536 just by moving money around in complicated ways. 263 00:20:23,636 --> 00:20:26,190 And it's very unclear that they're doing anything 264 00:20:26,291 --> 00:20:28,507 that's of value to the economy. 265 00:20:28,807 --> 00:20:30,636 So that's one phenomenon, 266 00:20:30,737 --> 00:20:32,975 that's called financialization of the economy. 267 00:20:35,779 --> 00:20:38,839 Going along with that is the off-shoring of production. 268 00:20:56,365 --> 00:20:59,168 The trade system was reconstructed 269 00:20:59,268 --> 00:21:02,771 with a very explicit design of putting 270 00:21:02,871 --> 00:21:05,313 working people in competition with one another 271 00:21:05,414 --> 00:21:06,772 all over the world. 272 00:21:08,441 --> 00:21:09,946 And what it's led to 273 00:21:10,047 --> 00:21:13,513 is a reduction in the share of income 274 00:21:13,613 --> 00:21:15,683 on the part of working people. 275 00:21:16,883 --> 00:21:18,971 It's been particularly striking in the United States, 276 00:21:19,072 --> 00:21:20,419 but it's happening worldwide. 277 00:21:20,519 --> 00:21:23,355 It means that an American worker is in competition 278 00:21:23,455 --> 00:21:26,521 with the super-exploited worker in China. 279 00:21:29,358 --> 00:21:32,729 Meanwhile, highly paid professionals are protected. 280 00:21:32,829 --> 00:21:36,057 They're not placed in competition with the rest of the world. 281 00:21:36,158 --> 00:21:37,400 Far from it. 282 00:21:37,500 --> 00:21:40,469 And, of course, the capital is free to move. 283 00:21:40,569 --> 00:21:43,247 Workers aren't free to move, labor can't move, 284 00:21:43,348 --> 00:21:44,873 but capital can. 285 00:21:44,973 --> 00:21:48,643 Well, again, going back to the classics like Adam Smith, 286 00:21:48,743 --> 00:21:52,213 as he pointed out, free circulation of labor 287 00:21:52,313 --> 00:21:55,783 is the foundation of any free trade system, 288 00:21:55,883 --> 00:21:58,652 but workers are pretty much stuck. 289 00:21:58,752 --> 00:22:01,521 The wealthy and the privileged are protected, 290 00:22:01,621 --> 00:22:03,689 so you get obvious consequences. 291 00:22:03,789 --> 00:22:06,288 And they're recognized and, in fact, praised. 292 00:22:09,659 --> 00:22:12,760 Policy is designed to increase insecurity. 293 00:22:13,895 --> 00:22:17,232 Alan Greenspan. When he testified to congress, 294 00:22:17,332 --> 00:22:21,369 he explained his success in running the economy 295 00:22:21,469 --> 00:22:26,640 as based on what he called, "greater worker insecurity." 296 00:22:26,740 --> 00:22:29,599 "Atypical restraint on compensation increases 297 00:22:29,700 --> 00:22:31,911 has been evident for a few years now, 298 00:22:32,011 --> 00:22:35,714 but as I outlined in some detail in testimony last month, 299 00:22:35,914 --> 00:22:39,784 I believe that job insecurity has played the dominant role." 300 00:22:39,884 --> 00:22:44,321 Keep workers insecure, they're going to be under control. 301 00:22:44,421 --> 00:22:48,491 They are not going to ask for, say, decent wages... 302 00:22:48,591 --> 00:22:50,793 Or decent working conditions... 303 00:22:50,893 --> 00:22:55,531 Or the opportunity of free association, meaning unionize. 304 00:22:55,631 --> 00:22:58,422 Now, for the masters of mankind, that's fine. 305 00:22:58,523 --> 00:23:00,402 They make their profits. 306 00:23:00,502 --> 00:23:03,135 But for the population, it's devastating. 307 00:23:05,004 --> 00:23:09,042 Well, these two processes, financialization and off-shoring 308 00:23:09,142 --> 00:23:13,379 are part of what lead to the vicious cycle 309 00:23:13,479 --> 00:23:16,746 of concentration of wealth and concentration of power. 310 00:23:25,655 --> 00:23:29,359 I'm Noam Chomsky and I'm on the faculty at MIT, 311 00:23:29,459 --> 00:23:32,462 and I've been getting more and more heavily involved in 312 00:23:32,562 --> 00:23:34,862 anti-war activities for the last few years. 313 00:23:41,602 --> 00:23:45,006 "Noam Chomsky has made two international reputations. 314 00:23:45,106 --> 00:23:50,011 The widest is as one of the national leaders of American resistance to the Vietnam war. 315 00:23:50,111 --> 00:23:52,813 The deepest is as a professor of linguistics, 316 00:23:52,913 --> 00:23:57,181 who, before he was 40 years old, had transformed the nature of his subject." 317 00:23:59,784 --> 00:24:02,421 "You are identified with the new left, whatever that is. 318 00:24:02,521 --> 00:24:05,487 You certainly have been an activist as well as a writer." 319 00:24:08,190 --> 00:24:10,793 "Professor Noam Chomsky... 320 00:24:10,893 --> 00:24:16,898 is listed in anybody's catalog as among the half-dozen top heroes of the new left. 321 00:24:16,998 --> 00:24:21,335 The standing he achieved by adopting over the past two or three years 322 00:24:21,435 --> 00:24:23,704 a series of adamant positions 323 00:24:23,804 --> 00:24:29,374 rejecting at least American foreign policy, at most America itself." 324 00:24:36,548 --> 00:24:40,620 Actually this notion "anti-American" is quite an interesting one. 325 00:24:41,020 --> 00:24:43,656 It's actually a totalitarian notion. 326 00:24:43,756 --> 00:24:46,458 It isn't used in free societies. 327 00:24:46,558 --> 00:24:51,896 So, if someone in, say, Italy is criticizing Berlusconi 328 00:24:51,996 --> 00:24:55,399 or the corruption of the Italian state and so on, 329 00:24:55,500 --> 00:24:57,601 they're not called anti-Italian. 330 00:24:57,701 --> 00:25:01,771 In fact, if they were called anti-Italian, people would collapse in laughter 331 00:25:01,871 --> 00:25:04,404 in the streets of Rome or Milan. 332 00:25:05,539 --> 00:25:08,576 In totalitarian states the notion's used, 333 00:25:08,676 --> 00:25:13,380 so in the old Soviet Union dissidents were called anti-Soviet. 334 00:25:13,480 --> 00:25:15,548 That was the worst condemnation. 335 00:25:15,648 --> 00:25:21,151 In the Brazilian military dictatorship, they were called anti-Brazilian. 336 00:25:23,187 --> 00:25:26,091 Now, it's true that in just about every society, 337 00:25:26,191 --> 00:25:29,828 the critics are maligned or mistreated... 338 00:25:29,928 --> 00:25:33,531 Different ways depending on the nature of the society. 339 00:25:33,631 --> 00:25:37,665 Like in the Soviet union, say Vaclav Havel would be imprisoned. 340 00:25:39,167 --> 00:25:43,005 In a U.S. dependency like El Salvador, at the same time, 341 00:25:43,105 --> 00:25:45,714 his counterparts would have their brains blown out 342 00:25:45,815 --> 00:25:49,043 by U.S.-run state terrorist forces. 343 00:25:49,143 --> 00:25:53,179 In other societies, they're just condemned or vilified and so on. 344 00:25:53,279 --> 00:25:54,997 In the United States, 345 00:25:55,098 --> 00:25:58,517 one of the terms of abuse is "anti-American." 346 00:25:58,617 --> 00:26:01,119 There's a couple of others, like, you know, "Marxist." 347 00:26:01,219 --> 00:26:03,789 There's an array of terms of abuse. 348 00:26:04,589 --> 00:26:07,592 But in the United States, you have a very high degree of freedom. 349 00:26:07,692 --> 00:26:11,195 So, if you're vilified by some commissars, then who cares? 350 00:26:11,295 --> 00:26:13,530 You go on, you do your work anyway. 351 00:26:13,630 --> 00:26:17,759 These concepts only arise in a culture where, 352 00:26:17,860 --> 00:26:22,106 if you criticize state power, and by state, I mean... 353 00:26:22,705 --> 00:26:26,175 more generally not just government but state corporate power, 354 00:26:26,275 --> 00:26:28,499 if you criticize concentrated power, 355 00:26:28,600 --> 00:26:31,111 you're against the society, you are against the people. 356 00:26:31,211 --> 00:26:34,782 That's quite striking, that it's used in the United States. 357 00:26:34,882 --> 00:26:38,152 In fact, as far as I know, it's the only democratic society 358 00:26:38,252 --> 00:26:41,021 where the concept isn't just ridiculed. 359 00:26:41,121 --> 00:26:45,163 That's a sign of elements of the elite culture, 360 00:26:45,264 --> 00:26:48,092 which are quite ugly. 361 00:27:29,233 --> 00:27:32,219 The American dream, like many ideals, 362 00:27:32,320 --> 00:27:35,205 was partly symbolic, but partly real. 363 00:27:35,305 --> 00:27:41,143 So in the 1950s and 60s, say, there was the biggest growth period 364 00:27:41,243 --> 00:27:44,243 in American economic history. 365 00:27:47,347 --> 00:27:48,880 The golden age. 366 00:27:52,651 --> 00:27:55,155 It was pretty egalitarian growth, 367 00:27:55,255 --> 00:27:57,691 so the lowest fifth of the population 368 00:27:57,792 --> 00:28:00,790 was improving about as much as the upper fifth. 369 00:28:02,325 --> 00:28:04,728 And there were some welfare state measures, 370 00:28:04,828 --> 00:28:08,598 which improved life for much of the population. 371 00:28:08,698 --> 00:28:13,169 It was, for example, possible for a black worker 372 00:28:13,269 --> 00:28:16,305 to get a decent job in an auto plant, 373 00:28:16,805 --> 00:28:21,575 buy a home, get a car, have his children go to school and so on. 374 00:28:21,675 --> 00:28:23,407 And the same across the board. 375 00:28:26,678 --> 00:28:31,317 When the U.S. was primarily a manufacturing center, 376 00:28:31,417 --> 00:28:36,155 it had to be concerned with its own consumers... here. 377 00:28:36,255 --> 00:28:41,070 Famously, Henry Ford raised the salary of his workers 378 00:28:41,171 --> 00:28:43,259 so they'd be able to buy cars. 379 00:28:46,196 --> 00:28:50,701 When you're moving it to an international "plutonomy," 380 00:28:50,801 --> 00:28:52,869 as the banks like to call it... 381 00:28:52,969 --> 00:28:56,202 The small percentage of the world's population 382 00:28:56,303 --> 00:28:58,841 that's gathering increasing wealth... 383 00:28:59,041 --> 00:29:02,778 What happens to American consumers is much less a concern, 384 00:29:02,878 --> 00:29:05,880 because most of them aren't going to be consuming your products anyway, 385 00:29:05,980 --> 00:29:08,082 at least not on a major basis. 386 00:29:08,182 --> 00:29:11,051 Your goals are, profit in the next quarter, 387 00:29:11,151 --> 00:29:14,688 even if it's based on financial manipulations... 388 00:29:15,288 --> 00:29:16,989 High salary, high bonuses, 389 00:29:17,089 --> 00:29:19,324 produce overseas if you have to, 390 00:29:19,424 --> 00:29:24,795 and produce for the wealthy classes here and their counterparts abroad. 391 00:29:24,895 --> 00:29:26,129 What about the rest? 392 00:29:26,229 --> 00:29:29,098 Well, there's a term coming into use for them, too. 393 00:29:29,198 --> 00:29:31,867 They're called the "precariat"... 394 00:29:31,967 --> 00:29:34,369 Precarious proletariat... 395 00:29:34,469 --> 00:29:38,804 The working people of the world who live increasingly precarious lives. 396 00:29:41,007 --> 00:29:43,808 And it's related to the attitude toward the country altogether. 397 00:29:48,980 --> 00:29:53,085 During the period of great growth of the economy... 398 00:29:53,185 --> 00:29:55,754 The '50s and the '60s, but in fact, earlier... 399 00:29:55,854 --> 00:29:59,758 Taxes on the wealthy were far higher. 400 00:29:59,858 --> 00:30:02,260 Corporate taxes were much higher, 401 00:30:02,360 --> 00:30:04,829 taxes on dividends were much higher... 402 00:30:04,929 --> 00:30:07,698 Simply taxes on wealth were much higher. 403 00:30:07,798 --> 00:30:10,634 The tax system has been redesigned, 404 00:30:10,734 --> 00:30:16,006 so that the taxes that are paid by the very wealthy are reduced 405 00:30:16,106 --> 00:30:20,741 and, correspondingly, the tax burden on the rest of the population's increased. 406 00:30:34,121 --> 00:30:37,725 Now the shift is towards trying to keep taxes 407 00:30:37,825 --> 00:30:40,227 just on wages and on consumption... 408 00:30:40,327 --> 00:30:44,495 Which everyone has to do, not, say, on dividends, which only go to the rich. 409 00:30:48,800 --> 00:30:50,367 The numbers are pretty striking. 410 00:30:59,176 --> 00:31:02,313 Now, there's a pretext... Of course, there's always a pretext. 411 00:31:02,413 --> 00:31:04,062 The pretext in this case is, 412 00:31:04,163 --> 00:31:07,184 well, that increases investment and increases jobs, 413 00:31:07,284 --> 00:31:09,286 but there isn't any evidence for that. 414 00:31:09,386 --> 00:31:10,838 If you want to increase investment, 415 00:31:10,939 --> 00:31:12,655 give money to the poor and the working people. 416 00:31:12,755 --> 00:31:15,090 They have to keep alive, so they spend their incomes. 417 00:31:15,190 --> 00:31:18,157 That stimulates productions, stimulates investment, 418 00:31:18,258 --> 00:31:20,192 leads to job growth and so on. 419 00:31:22,962 --> 00:31:26,433 If you're an ideologist for the masters, you have a different line. 420 00:31:26,533 --> 00:31:28,802 And in fact, right now, it's almost absurd. 421 00:31:28,902 --> 00:31:32,973 Corporations have money coming out of their pockets. 422 00:31:33,473 --> 00:31:36,259 So, in fact, General Electric, are paying zero taxes, 423 00:31:36,360 --> 00:31:37,910 and they have enormous profits. 424 00:31:38,010 --> 00:31:42,214 Let's them take the profit somewhere else, or defer it, but not pay taxes, 425 00:31:42,314 --> 00:31:43,646 and this is common. 426 00:31:46,950 --> 00:31:51,255 The major American corporations shifted the burden of sustaining the society 427 00:31:51,355 --> 00:31:53,355 onto the rest of the population. 428 00:32:16,912 --> 00:32:18,981 Solidarity is quite dangerous. 429 00:32:19,081 --> 00:32:22,351 From the point of view of the masters, you're only supposed to care about yourself, 430 00:32:22,451 --> 00:32:24,186 not about other people. 431 00:32:24,286 --> 00:32:29,491 This is quite different from the people they claim are their heroes like Adam Smith, 432 00:32:29,591 --> 00:32:34,128 who based his whole approach to the economy on the principle that sympathy 433 00:32:34,228 --> 00:32:36,629 is a fundamental human trait. 434 00:32:36,730 --> 00:32:39,133 But that has to be driven out of people's heads. 435 00:32:39,233 --> 00:32:40,774 You've got to be for yourself, 436 00:32:40,875 --> 00:32:43,837 follow the vile maxim, "don't care about others," 437 00:32:43,937 --> 00:32:46,306 which is okay for the rich and powerful, 438 00:32:46,406 --> 00:32:49,373 but is devastating for everyone else. 439 00:32:52,143 --> 00:32:55,438 It's taken a lot of effort to try to drive 440 00:32:55,539 --> 00:32:59,582 these basic human emotions out of people's heads. 441 00:33:02,252 --> 00:33:05,956 And we see it today in policy formation. 442 00:33:06,056 --> 00:33:08,856 For example, in the attack on social security. 443 00:33:11,159 --> 00:33:14,830 Social security is based on a principle. 444 00:33:14,930 --> 00:33:17,632 It's based on a principle of solidarity. 445 00:33:17,932 --> 00:33:20,331 Solidarity, caring for others. 446 00:33:22,967 --> 00:33:27,038 Social security means, "I pay payroll taxes... 447 00:33:27,138 --> 00:33:32,210 So that the widow across town can get something to live on." 448 00:33:32,610 --> 00:33:35,443 For much of the population, that's what they survive on. 449 00:33:36,478 --> 00:33:38,481 It's of no use to the very rich, 450 00:33:38,581 --> 00:33:41,781 so therefore, there's a concerted attempt to destroy it. 451 00:33:44,117 --> 00:33:46,120 One of the ways is defunding it. 452 00:33:46,220 --> 00:33:49,257 You want to destroy some system? First defund it. 453 00:33:49,957 --> 00:33:51,028 Then, it won't work. 454 00:33:51,129 --> 00:33:53,093 People will be angry. They'll want something else. 455 00:33:53,193 --> 00:33:57,861 It's a standard technique for privatizing some system. 456 00:34:01,265 --> 00:34:04,235 We see it in the attack on public schools. 457 00:34:04,335 --> 00:34:08,839 Public schools are based on the principle of solidarity. 458 00:34:09,239 --> 00:34:12,142 I no longer have children in school. They're grown up... 459 00:34:12,242 --> 00:34:14,844 But the principle of solidarity says, 460 00:34:14,944 --> 00:34:20,081 "I happily pay taxes so that the kid across the street can go to school." 461 00:34:20,181 --> 00:34:23,250 Now, that's normal human emotion. 462 00:34:23,350 --> 00:34:25,252 You have to drive that out of people's heads. 463 00:34:25,352 --> 00:34:27,403 "I don't have kids in school. 464 00:34:27,504 --> 00:34:31,088 Why should I pay taxes? Privatize it," so on. 465 00:34:34,292 --> 00:34:36,248 The public education system, 466 00:34:36,349 --> 00:34:39,298 all the way from kindergarten to higher education, 467 00:34:39,398 --> 00:34:41,287 is under severe attack. 468 00:34:41,388 --> 00:34:44,733 That's one of the jewels of American society. 469 00:34:54,409 --> 00:34:57,012 You go back to the golden age again... 470 00:34:57,112 --> 00:34:59,581 The great growth period in the '50s and '60s. 471 00:34:59,681 --> 00:35:03,551 A lot of that is based on free public education. 472 00:35:03,651 --> 00:35:07,588 One of the results of the second world war was the GI bill of rights, 473 00:35:07,988 --> 00:35:09,848 which enabled veterans, 474 00:35:09,949 --> 00:35:12,792 and remember, that's a large part of the population then, 475 00:35:12,892 --> 00:35:13,905 to go to college. 476 00:35:14,006 --> 00:35:15,494 They wouldn't have been able to, otherwise. 477 00:35:15,594 --> 00:35:17,229 They essentially got free education. 478 00:35:17,329 --> 00:35:19,564 "Where a community, state or nation... 479 00:35:19,664 --> 00:35:24,769 courageously invests a substantial share of its resources in education, 480 00:35:24,869 --> 00:35:26,971 the investment invariably returned 481 00:35:27,072 --> 00:35:30,007 in better business and a higher standard of living." 482 00:35:30,107 --> 00:35:35,176 U.S. was way in the lead in developing extensive mass public education at every level. 483 00:35:37,212 --> 00:35:40,249 By now, in more than half the states, most of the funding 484 00:35:40,349 --> 00:35:43,485 for the colleges comes from tuition, not from the state. 485 00:35:43,585 --> 00:35:45,587 That's a radical change, 486 00:35:45,687 --> 00:35:48,256 and that's a terrible burden on students. 487 00:35:48,356 --> 00:35:50,324 It means that students, 488 00:35:50,425 --> 00:35:52,760 if they don't come from very wealthy families, 489 00:35:52,860 --> 00:35:55,262 they're going to leave college with big debts. 490 00:35:55,362 --> 00:35:57,731 And if you have a big debt, you're trapped. 491 00:35:57,831 --> 00:36:01,534 I mean, maybe you wanted to become a public interest lawyer, 492 00:36:01,634 --> 00:36:03,969 but you're going to have to go into a corporate law firm 493 00:36:04,069 --> 00:36:05,536 to pay off those debts, 494 00:36:05,637 --> 00:36:07,138 and by the time you're part of the culture, 495 00:36:07,238 --> 00:36:09,140 you know you're not going to get out of it again. 496 00:36:09,240 --> 00:36:11,373 And that's true across the board. 497 00:36:14,577 --> 00:36:18,348 In the 1950s, it was a much poorer society than it is today, 498 00:36:18,448 --> 00:36:24,487 but, nevertheless, could easily handle, essentially free, mass higher education. 499 00:36:24,687 --> 00:36:29,422 Today, a much richer society claims it doesn't have the resources for it. 500 00:36:31,358 --> 00:36:34,395 That's just what's going on right before our eyes. 501 00:36:34,495 --> 00:36:39,432 That's the general attack on principles that, 502 00:36:39,532 --> 00:36:42,668 I mean, not only are they humane, they are the basis 503 00:36:42,768 --> 00:36:47,737 of the prosperity and health of this society. 504 00:37:15,598 --> 00:37:18,068 If you look over the history of regulation, 505 00:37:18,168 --> 00:37:23,072 say, railroad regulation, financial regulation and so on, 506 00:37:23,172 --> 00:37:25,874 you find that quite commonly 507 00:37:25,974 --> 00:37:32,446 it's either initiated by the economic concentrations... 508 00:37:32,546 --> 00:37:35,783 that are being regulated, or it's supported by them. 509 00:37:35,883 --> 00:37:39,052 And the reason is because they know that, 510 00:37:39,152 --> 00:37:42,220 sooner or later, they can take over the regulators. 511 00:37:46,158 --> 00:37:49,229 And it ends up with what's called "regulatory capture." 512 00:37:50,229 --> 00:37:53,730 The business being regulated is in fact running the regulators. 513 00:38:02,205 --> 00:38:06,642 Bank lobbyists are actually writing the laws of financial regulation, 514 00:38:06,742 --> 00:38:08,777 it gets to that extreme. 515 00:38:08,877 --> 00:38:11,646 That's been happening through history and, again, 516 00:38:11,746 --> 00:38:13,556 it's a pretty natural tendency 517 00:38:13,657 --> 00:38:16,314 when you just look at the distribution of power. 518 00:38:20,619 --> 00:38:25,858 One of the things that expanded enormously in the 1970s is lobbying, 519 00:38:25,958 --> 00:38:30,697 as the business world moved sharply to try to control legislation. 520 00:38:31,797 --> 00:38:36,768 The business world was pretty upset by the advances in public welfare in the '60s, 521 00:38:36,868 --> 00:38:39,270 in particular by Richard Nixon. 522 00:38:39,370 --> 00:38:42,940 It's not too well understood, but he was the last New Deal president, 523 00:38:43,040 --> 00:38:45,576 and they regarded that as class treachery. 524 00:38:46,476 --> 00:38:51,047 In Nixon's administration, you get the consumer safety legislation, 525 00:38:51,347 --> 00:38:54,383 safety and health regulations in the workplace, 526 00:38:54,683 --> 00:38:57,883 the EPA, the environmental protection agency. 527 00:38:58,885 --> 00:39:00,921 Business didn't like it, of course. 528 00:39:01,021 --> 00:39:03,823 They didn't like the high taxes. They didn't like the regulation. 529 00:39:03,923 --> 00:39:07,260 And they began a coordinated effort to try to overcome it. 530 00:39:07,860 --> 00:39:10,013 Lobbying sharply increased. 531 00:39:10,114 --> 00:39:13,462 Deregulation began with a real ferocity. 532 00:39:15,932 --> 00:39:18,669 There were no financial crashes in the '50s and the '60s, 533 00:39:18,769 --> 00:39:23,304 because the regulatory apparatus of the New Deal was still in place. 534 00:39:27,542 --> 00:39:29,141 As it began to be dismantled 535 00:39:29,242 --> 00:39:31,780 under business pressure and political pressure, 536 00:39:32,280 --> 00:39:34,814 you get more and more crashes. 537 00:39:43,890 --> 00:39:46,091 And it goes on right through the years. 538 00:39:47,460 --> 00:39:49,964 '70s it starts to begin. 539 00:39:50,564 --> 00:39:52,299 '80s really takes off. 540 00:39:52,399 --> 00:39:53,953 Congress was asked to approve 541 00:39:54,054 --> 00:39:56,135 federal loan guarantees to the auto company 542 00:39:56,235 --> 00:39:58,670 of up to one and one half billion dollars. 543 00:39:58,770 --> 00:40:00,672 Now, all of this is quite safe 544 00:40:00,772 --> 00:40:03,475 as long as you know the government's going to come to your rescue. 545 00:40:03,875 --> 00:40:07,245 So, take say, Reagan. Instead of letting them pay the cost, 546 00:40:07,345 --> 00:40:10,548 Reagan bailed out the banks like Continental Illinois, 547 00:40:10,648 --> 00:40:13,817 the biggest bailout of American history at the time. 548 00:40:13,917 --> 00:40:17,453 Actually, he ended his term with a huge financial crisis, 549 00:40:17,553 --> 00:40:18,696 the savings-and-loan crisis, 550 00:40:18,797 --> 00:40:20,655 and the government moved in and bailed it out. 551 00:40:20,755 --> 00:40:22,355 "President Bush today signed 552 00:40:22,456 --> 00:40:25,795 the 300 billion-dollar savings-and-loan bailout bill." 553 00:40:25,895 --> 00:40:29,399 In 1999, regulation was dismantled 554 00:40:29,499 --> 00:40:33,299 to separate commercial banks from investment banks. 555 00:40:35,001 --> 00:40:37,905 Then comes the Bush and Obama bailout. 556 00:40:38,005 --> 00:40:40,674 "Bear Stearns is running to the feds to stay afloat..." 557 00:40:40,774 --> 00:40:44,577 "President Bush today defended the decision to bail out Citigroup..." 558 00:40:44,677 --> 00:40:49,348 "Fannie Mae and Freddie Mac have asked for a total of three billion dollars more... 559 00:40:49,448 --> 00:40:51,257 This bailout could get much bigger, 560 00:40:51,358 --> 00:40:54,157 signaling deepening troubles for the U.S. economy." 561 00:40:57,888 --> 00:40:59,788 And they're building up the next one. 562 00:41:14,303 --> 00:41:20,375 Each time, the taxpayer is called on to bail out those who created the crisis, 563 00:41:20,475 --> 00:41:24,313 increasingly the major financial institutions. 564 00:41:24,813 --> 00:41:27,048 In a capitalist economy, you wouldn't do that. 565 00:41:27,148 --> 00:41:28,629 In a capitalist system, 566 00:41:28,730 --> 00:41:32,686 that would wipe out the investors who made risky investments. 567 00:41:32,786 --> 00:41:35,989 But the rich and powerful, they don't want a capitalist system. 568 00:41:36,089 --> 00:41:38,891 They want to be able to run to the nanny state 569 00:41:38,991 --> 00:41:41,993 as soon as they're in trouble, and get bailed out by the taxpayer. 570 00:41:42,093 --> 00:41:44,193 That's called "too big to fail." 571 00:41:45,695 --> 00:41:47,931 I mean, there are Nobel laureates in economics 572 00:41:48,031 --> 00:41:51,234 who significantly disagree with the course that we're following. 573 00:41:51,334 --> 00:41:54,370 People like Joe Stiglitz, Paul Krugman and others, 574 00:41:54,470 --> 00:41:57,639 and none of them were even approached. 575 00:41:57,739 --> 00:42:01,009 The people picked to fix the crisis were those who created it, 576 00:42:01,109 --> 00:42:04,579 the Robert Rubin crowd, the Goldman Sachs crowd. 577 00:42:04,679 --> 00:42:08,683 They created the crisis... Are now more powerful than before. 578 00:42:09,083 --> 00:42:10,718 Is that accident? 579 00:42:10,818 --> 00:42:15,556 Well, not when you pick those people to create an economic plan. 580 00:42:15,656 --> 00:42:17,716 I mean, what do you expect to happen? 581 00:42:21,960 --> 00:42:25,664 Meanwhile, for the poor, let market principles prevail. 582 00:42:25,764 --> 00:42:27,866 Don't expect any help from the government. 583 00:42:27,966 --> 00:42:30,702 The government's the problem, not the solution, and so on. 584 00:42:30,802 --> 00:42:33,104 That's, essentially, neo-liberalism. 585 00:42:33,204 --> 00:42:38,842 It has this dual character which goes right back in economic history. 586 00:42:38,942 --> 00:42:41,010 One set of rules for the rich. 587 00:42:41,110 --> 00:42:43,170 Opposite set of rules for the poor. 588 00:42:45,779 --> 00:42:47,815 Nothing surprising about this. 589 00:42:47,915 --> 00:42:50,117 It's exactly the dynamics you expect. 590 00:42:50,217 --> 00:42:52,817 If the population allows it to proceed, 591 00:42:52,961 --> 00:42:54,697 it's just going to go on and on like this 592 00:42:54,797 --> 00:42:56,362 until the next crash, 593 00:42:56,463 --> 00:43:00,493 which is so much expected that credit agencies, 594 00:43:00,593 --> 00:43:03,462 which kind of evaluate the status of firms, 595 00:43:03,562 --> 00:43:06,531 are now counting into their calculations 596 00:43:06,631 --> 00:43:11,802 the taxpayer bailout that they expect to come after the next crash. 597 00:43:11,902 --> 00:43:15,380 Which means that the beneficiaries of these credit ratings, 598 00:43:15,481 --> 00:43:16,973 like the big banks, 599 00:43:17,073 --> 00:43:19,096 they can borrow money more cheaply, 600 00:43:19,197 --> 00:43:21,544 they can push out smaller competitors, 601 00:43:21,644 --> 00:43:23,546 and you get more and more concentration. 602 00:43:23,646 --> 00:43:25,714 Everywhere you look, policies are designed this way, 603 00:43:25,814 --> 00:43:29,584 which should come as absolutely no surprise to anyone. 604 00:43:29,684 --> 00:43:33,472 That's what happens when you put power into the hands 605 00:43:33,573 --> 00:43:36,156 of a narrow sector of wealth, 606 00:43:36,256 --> 00:43:39,265 which will is dedicated to increasing power for itself 607 00:43:39,366 --> 00:43:40,625 just as you'd expect. 608 00:43:59,544 --> 00:44:04,116 Concentration of wealth yields concentration of political power, 609 00:44:04,216 --> 00:44:09,521 particularly so as the cost of elections skyrockets, 610 00:44:09,621 --> 00:44:15,090 which kind of forces the political parties into the pockets of major corporations. 611 00:44:17,827 --> 00:44:22,532 The Citizens United, this was January 2009, I guess, 612 00:44:22,632 --> 00:44:26,469 that's a very important decision, Supreme Court decision, 613 00:44:26,569 --> 00:44:29,649 but it has a history and you got to think about the history. 614 00:44:30,671 --> 00:44:34,075 The 14th amendment has a provision that says, 615 00:44:34,175 --> 00:44:39,680 "no person's rights can be infringed without due process of law." 616 00:44:39,780 --> 00:44:43,550 And the intent, clearly, was to protect freed slaves. 617 00:44:43,650 --> 00:44:46,786 Says, "okay, they've got the protection of the law." 618 00:44:46,886 --> 00:44:50,956 I don't think it's ever been used for freed slaves, if ever, marginally. 619 00:44:51,056 --> 00:44:55,527 Almost immediately, it was used for businesses, corporations. 620 00:44:55,627 --> 00:44:58,897 Their rights can't be infringed without due process of law. 621 00:44:58,997 --> 00:45:02,665 So they gradually became persons under the law. 622 00:45:08,304 --> 00:45:12,073 Corporations are state-created legal fictions. 623 00:45:14,743 --> 00:45:16,312 Maybe they're good, maybe they're bad, 624 00:45:16,412 --> 00:45:19,215 but to call them persons is kind of outrageous. 625 00:45:19,315 --> 00:45:22,952 So they got personal rights back about a century ago, 626 00:45:23,052 --> 00:45:25,352 and that extended through the 20th century. 627 00:45:27,655 --> 00:45:31,490 They give corporations rights way beyond what persons have. 628 00:45:31,992 --> 00:45:35,562 So if, say, General Motors invests in Mexico, 629 00:45:35,662 --> 00:45:39,198 they get national rights, the rights of a Mexican business. 630 00:45:39,298 --> 00:45:42,382 While the notion of person was expanded 631 00:45:42,483 --> 00:45:44,301 to include corporations, 632 00:45:44,401 --> 00:45:46,303 it was also restricted. 633 00:45:46,403 --> 00:45:49,005 If you take the 14th amendment literally, 634 00:45:49,105 --> 00:45:53,115 then no undocumented alien can be deprived of rights, 635 00:45:53,216 --> 00:45:54,974 if they're persons. 636 00:45:57,511 --> 00:45:59,619 Yet, undocumented aliens who are living here, 637 00:45:59,720 --> 00:46:00,948 and building your buildings, 638 00:46:01,048 --> 00:46:04,014 cleaning your lawns, and so on, they're not persons... 639 00:46:06,817 --> 00:46:12,123 But General Electric is a person, an immortal super-powerful person. 640 00:46:12,223 --> 00:46:18,162 This perversion of the elementary morality, 641 00:46:18,262 --> 00:46:19,833 and the obvious meaning of the law, 642 00:46:19,934 --> 00:46:21,429 it's quite incredible. 643 00:46:23,332 --> 00:46:28,301 In the 1970s, the courts decided that money is a form of speech. 644 00:46:30,437 --> 00:46:31,538 Buckley vs. Valeo. 645 00:46:31,639 --> 00:46:34,442 Then you go on through the years to Citizens United, 646 00:46:34,542 --> 00:46:37,645 which says that, the right of free speech of corporations, 647 00:46:37,745 --> 00:46:39,884 namely to spend as much money as they want, 648 00:46:39,985 --> 00:46:41,513 that can't be curtailed. 649 00:46:44,852 --> 00:46:46,589 Take a look what that means... 650 00:46:46,689 --> 00:46:48,167 It means that corporations, 651 00:46:48,268 --> 00:46:50,824 which anyway have been pretty much buying elections, 652 00:46:50,924 --> 00:46:53,927 are now free to do it with virtually no constraint. 653 00:46:54,027 --> 00:46:58,662 That's a tremendous attack on the residue of democracy. 654 00:47:02,834 --> 00:47:06,705 It's very interesting to read the rulings, like justice Kennedy's swing vote. 655 00:47:06,805 --> 00:47:09,340 His ruling said, "Well, look, after all, 656 00:47:09,440 --> 00:47:12,855 CBS is given freedom of speech, they're a corporation, 657 00:47:12,956 --> 00:47:14,411 why shouldn't General Electric 658 00:47:14,511 --> 00:47:16,671 be free to spend as much money as they want?" 659 00:47:18,279 --> 00:47:21,216 I mean, it's true that CBS is given freedom of speech, 660 00:47:21,316 --> 00:47:24,169 but they're supposed to be performing a public service. 661 00:47:24,270 --> 00:47:25,386 That's why. 662 00:47:25,486 --> 00:47:27,087 That's what the press is supposed to be, 663 00:47:27,187 --> 00:47:29,189 and General Electric is trying to make money 664 00:47:29,289 --> 00:47:31,870 for the chief executive and some of the shareholders. 665 00:47:34,158 --> 00:47:38,263 It's an incredible decision, and it puts the country in a position where 666 00:47:38,363 --> 00:47:43,868 business power is greatly extended beyond what it always was. 667 00:47:43,968 --> 00:47:45,702 This is part of that vicious cycle. 668 00:47:45,802 --> 00:47:49,772 The supreme court justices are put in by reactionary presidents, 669 00:47:49,872 --> 00:47:52,941 who get in there because they're funded by business. 670 00:47:53,041 --> 00:47:54,507 It's the way the cycle works. 671 00:48:20,199 --> 00:48:24,837 There is one organized force which traditionally, plenty of flaws, 672 00:48:24,937 --> 00:48:28,841 but with all its flaws, it's been in the forefront of... 673 00:48:29,541 --> 00:48:33,211 efforts to improve the lives of the general population. 674 00:48:33,311 --> 00:48:34,812 That's organized labor. 675 00:48:34,912 --> 00:48:37,247 It's also a barrier to corporate tyranny. 676 00:48:37,347 --> 00:48:40,529 So, it's the one barrier to this vicious cycle 677 00:48:40,629 --> 00:48:44,051 going on, which does lead to corporate tyranny. 678 00:48:53,427 --> 00:48:56,998 A major reason for the concentrated, 679 00:48:57,298 --> 00:49:00,935 almost fanatic attack on unions, on organized labor, 680 00:49:01,035 --> 00:49:03,268 is they are a democratizing force. 681 00:49:05,004 --> 00:49:08,541 They brought a barrier that defends workers' rights, 682 00:49:08,641 --> 00:49:10,561 but also popular rights generally. 683 00:49:17,648 --> 00:49:21,754 And that interferes with the prerogatives and power 684 00:49:21,854 --> 00:49:24,920 of those who own and manage the society. 685 00:49:26,188 --> 00:49:29,358 I should say that anti-union 686 00:49:29,458 --> 00:49:33,562 sentiment in the United States among elites is so strong 687 00:49:33,662 --> 00:49:37,098 that the fundamental core of labor rights, 688 00:49:37,298 --> 00:49:41,068 the basic principle in the international labor organization, 689 00:49:41,268 --> 00:49:44,104 is the right of free association, 690 00:49:44,204 --> 00:49:46,306 which would mean the right to form unions. 691 00:49:46,406 --> 00:49:48,941 The U.S. has never ratified that. 692 00:49:49,041 --> 00:49:54,112 So I think the U.S. may be alone among major societies in that respect. 693 00:49:54,612 --> 00:49:58,616 It's considered so far out of the spectrum of American politics, 694 00:49:58,716 --> 00:50:00,748 it literally has never been considered. 695 00:50:03,086 --> 00:50:07,623 Remember, the U.S. has a long and very violent labor history 696 00:50:07,723 --> 00:50:10,056 as compared with comparable societies... 697 00:50:12,626 --> 00:50:15,196 But the labor movement had been very strong. 698 00:50:15,296 --> 00:50:17,198 By the 1920s, 699 00:50:17,299 --> 00:50:20,390 in a period not unlike today, 700 00:50:20,491 --> 00:50:22,002 it was virtually crushed. 701 00:50:22,102 --> 00:50:26,707 "A truck drivers strike was climaxed by severe riots with many casualties. 702 00:50:27,107 --> 00:50:29,926 Open warfare rages through the streets of the city 703 00:50:30,026 --> 00:50:33,178 as 3,000 union pickets battle 700 police. 704 00:50:33,278 --> 00:50:36,080 Guns, tear gas, clubs and fists bring injuries 705 00:50:36,180 --> 00:50:39,214 to more than 80 persons and caused the death of two." 706 00:50:44,119 --> 00:50:46,519 By the mid '30s, it began to reconstruct. 707 00:50:49,586 --> 00:50:52,124 Franklin Delano Roosevelt, he himself 708 00:50:52,224 --> 00:50:55,363 was rather sympathetic to progressive legislation 709 00:50:55,463 --> 00:50:58,132 that would be in the benefit of the general population, 710 00:50:58,232 --> 00:51:00,601 but he had to somehow get it passed. 711 00:51:00,701 --> 00:51:06,406 So he informed labor leaders and others, "force me to do it." 712 00:51:06,706 --> 00:51:10,779 What he meant is, go out and demonstrate, 713 00:51:10,880 --> 00:51:12,912 organize, protest, 714 00:51:13,012 --> 00:51:15,014 develop the labor movement. 715 00:51:15,314 --> 00:51:17,382 When the popular pressure is sufficient, 716 00:51:17,482 --> 00:51:19,750 I'll be able to put through the legislation you want. 717 00:51:19,850 --> 00:51:24,921 "I am not for a return to that definition of Liberty, 718 00:51:25,021 --> 00:51:28,958 under which for many years a free people 719 00:51:29,058 --> 00:51:35,564 were being gradually regimented into the service of a privileged few. 720 00:51:35,964 --> 00:51:40,435 I prefer that broader definition of Liberty." 721 00:51:41,135 --> 00:51:45,005 So, there was kind of a combination of a sympathetic government, 722 00:51:45,105 --> 00:51:49,172 and by the mid-'30s, very substantial popular activism. 723 00:51:50,474 --> 00:51:54,679 There were industrial actions. There were sit-down strikes, 724 00:51:54,779 --> 00:51:58,816 which were very frightening to ownership. 725 00:51:58,916 --> 00:52:00,292 You have to recognize, 726 00:52:00,393 --> 00:52:04,087 a sit-down strike is just one step before saying, 727 00:52:04,187 --> 00:52:06,854 "we don't need bosses. We can run this by ourselves." 728 00:52:13,694 --> 00:52:15,296 And business was appalled. 729 00:52:15,396 --> 00:52:18,766 You read the business press, say, in the late '30s, 730 00:52:18,866 --> 00:52:23,270 they were talking about the "hazard facing industrialists" 731 00:52:23,370 --> 00:52:26,706 and the "rising political power of the masses," 732 00:52:26,806 --> 00:52:28,374 which has to be repressed. 733 00:52:28,474 --> 00:52:31,276 Things were on hold during the second world war, 734 00:52:31,376 --> 00:52:33,606 but immediately after the second world war, 735 00:52:33,707 --> 00:52:36,199 the business offensive began in force. 736 00:52:36,300 --> 00:52:38,182 The Taft-Hartley act. 737 00:52:38,482 --> 00:52:41,752 "The Taft-Hartley act was written for only one purpose, 738 00:52:41,852 --> 00:52:47,324 to restore justice and equality in labor-management relations." 739 00:52:47,724 --> 00:52:49,292 Then McCarthyism was used 740 00:52:49,393 --> 00:52:53,293 for massive corporate propaganda offensives to attack union. 741 00:52:54,195 --> 00:52:56,464 It increased sharply during the Reagan years. 742 00:52:56,564 --> 00:52:59,600 I mean, Reagan pretty much told the business world, 743 00:52:59,700 --> 00:53:03,203 "If you want to illegally break organizing efforts and strikes, 744 00:53:03,504 --> 00:53:04,571 go ahead." 745 00:53:04,671 --> 00:53:07,006 "They are in violation of the law, 746 00:53:07,106 --> 00:53:10,376 and if they do not report for work within 48 hours, 747 00:53:10,476 --> 00:53:14,713 they have forfeited their jobs and will be terminated." 748 00:53:14,813 --> 00:53:18,590 It continued in the '90s and, of course, with George W. Bush, 749 00:53:18,691 --> 00:53:19,884 it went through the roof. 750 00:53:19,984 --> 00:53:25,254 By now, less than 7% of private sector workers have unions. 751 00:53:30,626 --> 00:53:35,698 The effect is that the usual counter-force to an offensive 752 00:53:35,798 --> 00:53:40,700 by our highly class-conscious business class has dissolved. 753 00:53:43,904 --> 00:53:47,074 Now, if you're in a position of power, 754 00:53:47,174 --> 00:53:50,444 you want to maintain class-consciousness for yourself, 755 00:53:50,544 --> 00:53:52,812 but eliminate it everywhere else. 756 00:53:52,912 --> 00:53:55,515 You go back to the 19th century, 757 00:53:55,615 --> 00:53:58,040 in the early days of the industrial revolution 758 00:53:58,141 --> 00:53:59,351 in the United States, 759 00:53:59,451 --> 00:54:02,554 working people were very conscious of this. 760 00:54:02,854 --> 00:54:06,524 They, in fact, overwhelmingly regarded 761 00:54:06,624 --> 00:54:10,594 wage labor as not very different from slavery, 762 00:54:10,694 --> 00:54:13,396 different only in that it was temporary. 763 00:54:13,496 --> 00:54:15,208 In fact, it was such a popular idea 764 00:54:15,309 --> 00:54:17,530 that it was the slogan of the Republican party. 765 00:54:18,532 --> 00:54:22,036 That was a very sharp class-consciousness. 766 00:54:22,336 --> 00:54:24,771 In the interest of power and privilege, 767 00:54:24,871 --> 00:54:28,407 it's good to drive those ideas out of people's heads. 768 00:54:28,507 --> 00:54:31,643 You don't want them to know that they're an oppressed class. 769 00:54:31,743 --> 00:54:35,813 So, this is one of the few societies in which you just don't talk about class. 770 00:54:36,013 --> 00:54:39,083 In fact, the notion of class is very simple. 771 00:54:39,183 --> 00:54:41,318 Who gives the orders? Who follows them? 772 00:54:41,418 --> 00:54:43,486 That basically defines class. 773 00:54:43,586 --> 00:54:47,254 It's more nuanced and complex, but that's basically it. 774 00:55:05,639 --> 00:55:09,143 The public relations industry, the advertising industry, 775 00:55:09,243 --> 00:55:11,378 which is dedicated to creating consumers, 776 00:55:11,478 --> 00:55:14,748 it's a phenomena that developed in the freest countries, 777 00:55:14,848 --> 00:55:19,486 in Britain and the United States, and the reason is pretty clear. 778 00:55:19,586 --> 00:55:22,856 It became clear by, say, a century ago 779 00:55:22,956 --> 00:55:27,193 that it was not going to be so easy to control the population by force. 780 00:55:27,293 --> 00:55:28,833 Too much freedom had been won. 781 00:55:30,227 --> 00:55:33,564 Labor organizing, parliamentary labor parties in many countries, 782 00:55:33,664 --> 00:55:36,466 women starting to get the franchise, and so on. 783 00:55:36,566 --> 00:55:38,768 So, you had to have other means of controlling people. 784 00:55:38,868 --> 00:55:41,337 And it was understood and expressed 785 00:55:41,437 --> 00:55:47,475 that you have to control them by control of beliefs and attitudes. 786 00:55:47,575 --> 00:55:51,612 Well, one of the best ways to control people in terms of attitudes 787 00:55:51,712 --> 00:55:57,078 is what the great political economist Thorstein Veblen called 788 00:55:57,179 --> 00:55:58,749 "fabricating consumers." 789 00:56:04,588 --> 00:56:07,125 If you can fabricate wants... 790 00:56:07,625 --> 00:56:12,863 Make obtaining things that are just about within your reach the essence of life, 791 00:56:12,963 --> 00:56:16,330 they're going to be trapped into becoming consumers. 792 00:56:18,700 --> 00:56:21,437 You read the business press in say, 1920s, 793 00:56:21,537 --> 00:56:27,075 it talks about the need to direct people to the superficial things of life, 794 00:56:27,175 --> 00:56:28,908 like "fashionable consumption" 795 00:56:29,009 --> 00:56:31,015 and that'll keep them out of our hair. 796 00:56:32,545 --> 00:56:36,650 You find this doctrine all through progressive intellectual thought, 797 00:56:36,750 --> 00:56:38,218 like Walter Lippmann, 798 00:56:38,318 --> 00:56:41,538 the major progressive intellectual of the 20th century. 799 00:56:43,688 --> 00:56:46,939 He wrote famous progressive essays on democracy 800 00:56:47,040 --> 00:56:49,327 in which his view was exactly that. 801 00:56:49,427 --> 00:56:51,796 "The public must be put in their place," 802 00:56:51,896 --> 00:56:54,698 so that the responsible men can make decisions 803 00:56:54,798 --> 00:56:57,798 without interference from the "bewildered herd." 804 00:57:00,435 --> 00:57:02,471 They're to be spectators, not participants. 805 00:57:02,571 --> 00:57:05,307 Then you get a properly functioning democracy, 806 00:57:05,407 --> 00:57:07,457 straight back to Madison, 807 00:57:07,558 --> 00:57:10,712 and on to Powell's memorandum, and so on. 808 00:57:10,812 --> 00:57:17,718 And the advertising industry just exploded with this as its goal... 809 00:57:17,818 --> 00:57:19,350 Fabricating consumers. 810 00:57:25,157 --> 00:57:27,827 And it's done with great sophistication. 811 00:57:28,527 --> 00:57:30,629 "You don't see many wild stallions anymore. 812 00:57:30,729 --> 00:57:35,397 He's one of the last of a wild and very singular breed. 813 00:57:35,898 --> 00:57:38,835 Come to Marlboro country." 814 00:57:39,135 --> 00:57:41,668 The ideal is what you actually see today... 815 00:57:43,404 --> 00:57:47,809 Where, let's say, teenage girls, if they have a free Saturday afternoon, 816 00:57:47,909 --> 00:57:50,311 will go walking in the shopping mall, 817 00:57:50,611 --> 00:57:53,177 not to the library or somewhere else. 818 00:57:53,912 --> 00:57:57,316 The idea is to try to control everyone, 819 00:57:57,616 --> 00:58:01,283 to turn the whole society into the perfect system. 820 00:58:03,753 --> 00:58:08,792 Perfect system would be a society based on a dyad, a pair. 821 00:58:08,892 --> 00:58:11,995 The pair is you and your television set, 822 00:58:12,295 --> 00:58:14,397 or maybe now you and the Internet, 823 00:58:14,997 --> 00:58:19,701 in which that presents you with what the proper life would be, 824 00:58:19,801 --> 00:58:21,803 what kind of gadgets you should have. 825 00:58:21,903 --> 00:58:24,539 And you spend your time and effort gaining those things, 826 00:58:24,639 --> 00:58:26,168 which you don't need, and you don't want, 827 00:58:26,269 --> 00:58:27,799 and maybe you'll throw them away... 828 00:58:29,242 --> 00:58:32,209 But that's the measure of a decent life. 829 00:58:34,846 --> 00:58:38,617 What we see is in, say, advertising on television, 830 00:58:38,717 --> 00:58:42,554 if you've ever taken an economics course, you know that 831 00:58:42,654 --> 00:58:48,693 markets are supposed to be based on "informed consumers making rational choices." 832 00:58:48,793 --> 00:58:52,496 Well, if we had a system like that, a market system, 833 00:58:52,596 --> 00:58:57,133 then a television ad would consist of, say, General Motors 834 00:58:57,233 --> 00:59:01,103 putting up information, saying, "here's what we have for sale." 835 00:59:01,203 --> 00:59:03,805 That's not what an ad for a car is. 836 00:59:03,905 --> 00:59:08,407 And ad for a car is a football hero... an actress... 837 00:59:08,507 --> 00:59:11,578 the car doing some crazy thing like, 838 00:59:11,678 --> 00:59:13,580 going up a mountain or something. 839 00:59:13,680 --> 00:59:19,785 The point is to create uninformed consumers who will make irrational choices. 840 00:59:19,885 --> 00:59:22,354 That's what advertising is all about, 841 00:59:22,554 --> 00:59:27,892 and when the same institution, the PR system, 842 00:59:27,992 --> 00:59:30,458 runs elections, they do it the same way. 843 00:59:36,331 --> 00:59:39,034 They want to create an uninformed electorate, 844 00:59:39,134 --> 00:59:41,350 which will make irrational choices, 845 00:59:41,451 --> 00:59:43,505 often against their own interests, 846 00:59:43,605 --> 00:59:48,006 and we see it every time one of these extravaganzas take place. 847 00:59:49,842 --> 00:59:51,845 Right after the election, 848 00:59:51,945 --> 00:59:56,983 president Obama won an award from the advertising industry 849 00:59:57,083 --> 00:59:58,885 for the best marketing campaign. 850 00:59:58,985 --> 01:00:00,154 And, it wasn't reported here, 851 01:00:00,255 --> 01:00:02,254 but if you go to the international business press, 852 01:00:02,454 --> 01:00:04,957 executives were euphoric. 853 01:00:05,057 --> 01:00:09,748 They said, "we've been selling candidates, marketing candidates, 854 01:00:09,849 --> 01:00:11,696 like, you know, toothpaste 855 01:00:11,796 --> 01:00:12,903 ever since Reagan, 856 01:00:13,004 --> 01:00:15,699 and this is the greatest achievement we have." 857 01:00:15,799 --> 01:00:18,835 I don't usually agree with Sarah Palin, 858 01:00:18,935 --> 01:00:24,606 but when she mocks the, what she calls the "hopey-changey" stuff, she's right. 859 01:00:24,706 --> 01:00:27,588 First of all, Obama didn't really promise anything. 860 01:00:27,789 --> 01:00:29,310 That's mostly illusion. 861 01:00:29,410 --> 01:00:32,579 You go back to the campaign rhetoric and take a look at it. 862 01:00:32,679 --> 01:00:35,195 There's very little discussion of policy issues, 863 01:00:35,296 --> 01:00:36,683 and for very good reason, 864 01:00:36,783 --> 01:00:42,021 because public opinion on policy is sharply disconnected 865 01:00:42,121 --> 01:00:46,856 from what the two-party leadership and their financial backers want. 866 01:00:48,193 --> 01:00:55,030 Policy, more and more, is focused on the private interests that fund the campaigns... 867 01:00:56,165 --> 01:00:58,432 with the public being marginalized. 868 01:01:21,522 --> 01:01:26,027 One of the leading political scientists, Martin Gilens, came out with a study 869 01:01:26,127 --> 01:01:29,063 of the relation between public attitudes and public policy. 870 01:01:29,163 --> 01:01:32,906 What he shows is that about 70% of the population 871 01:01:33,007 --> 01:01:35,702 has no way of influencing policy. 872 01:01:35,902 --> 01:01:38,435 They might as well be in some other country... 873 01:01:39,537 --> 01:01:41,170 And the population knows it. 874 01:01:43,840 --> 01:01:50,211 What it's led to is a population that's angry, frustrated, hates institutions. 875 01:01:51,813 --> 01:01:56,215 It's not acting constructively to try to respond to this. 876 01:01:57,984 --> 01:02:00,821 There is popular mobilization and activism, 877 01:02:00,921 --> 01:02:03,587 but in very self-destructive directions. 878 01:02:04,789 --> 01:02:08,193 It's taking the form of unfocused anger, 879 01:02:08,293 --> 01:02:11,829 attacks on one another, and on vulnerable targets. 880 01:02:11,929 --> 01:02:14,229 That's what happens in cases like this. 881 01:02:17,299 --> 01:02:21,604 It is corrosive of social relations, but that's the point. 882 01:02:21,704 --> 01:02:25,908 The point is to make people hate and fear each other, 883 01:02:26,008 --> 01:02:27,910 and look out only for themselves, 884 01:02:28,010 --> 01:02:30,210 and don't do anything for anyone else. 885 01:02:33,947 --> 01:02:38,619 One place you see it strikingly is on April 15th. 886 01:02:38,719 --> 01:02:42,155 April 15th is kind of a measure, the day you pay your taxes, 887 01:02:42,255 --> 01:02:45,158 of how democratic the society is. 888 01:02:45,258 --> 01:02:48,928 If a society is really democratic, 889 01:02:49,028 --> 01:02:52,031 April 15th would be a day of celebration. 890 01:02:52,131 --> 01:02:55,033 It's a day when the population gets together, 891 01:02:55,233 --> 01:03:01,539 decides to fund the programs and activities that they have formulated and agreed upon. 892 01:03:01,639 --> 01:03:03,048 What could be better than that? 893 01:03:03,149 --> 01:03:04,608 So, you should celebrate it. 894 01:03:04,708 --> 01:03:06,509 It's not the way it is in the United States. 895 01:03:06,809 --> 01:03:08,811 It's a day of mourning. 896 01:03:08,911 --> 01:03:13,982 It's a day in which some alien power that has nothing to do with you, 897 01:03:14,082 --> 01:03:16,985 is coming down to steal your hard-earned money, 898 01:03:17,085 --> 01:03:19,945 and you do everything you can to keep them from doing it. 899 01:03:21,054 --> 01:03:23,958 Well, that is a kind of a measure of the extent to which, 900 01:03:24,058 --> 01:03:28,025 at least in popular consciousness, democracy is actually functioning. 901 01:03:28,893 --> 01:03:30,926 Not a very attractive picture. 902 01:03:48,344 --> 01:03:52,115 The tendencies that we've been describing within American society, 903 01:03:52,215 --> 01:03:56,853 unless they're reversed, it's going to be an extremely ugly society. 904 01:03:56,953 --> 01:03:59,889 I mean, a society that's based on 905 01:03:59,989 --> 01:04:05,158 Adam Smith's vile maxim, "all for myself, nothing for anyone else." 906 01:04:10,197 --> 01:04:14,102 A society in which normal human instincts and emotion 907 01:04:14,202 --> 01:04:18,737 of sympathy, solidarity, mutual support, in which they're, kind like, driven out... 908 01:04:22,208 --> 01:04:23,871 That's a society so ugly, 909 01:04:23,972 --> 01:04:25,845 I don't even know who'd want to live in it. 910 01:04:25,945 --> 01:04:27,911 I wouldn't want my children to. 911 01:04:31,950 --> 01:04:37,022 If the society is based on control by private wealth, 912 01:04:37,122 --> 01:04:41,156 it will reflect the values that it, in fact, does reflect. 913 01:04:43,259 --> 01:04:45,856 The value that is greed, and the desire... 914 01:04:45,957 --> 01:04:48,495 to maximize personal gain, at the expense of others. 915 01:04:48,695 --> 01:04:53,327 Now, any society, maybe a small society based on that principle is ugly, 916 01:04:53,428 --> 01:04:54,737 but it can survive. 917 01:04:54,837 --> 01:04:58,838 A global society based on that principle is headed for massive destruction. 918 01:05:04,076 --> 01:05:07,694 I don't think we're smart enough... 919 01:05:07,795 --> 01:05:10,348 to design in any detail... 920 01:05:10,448 --> 01:05:14,585 what a perfectly just and free society would be like. 921 01:05:14,685 --> 01:05:17,087 I think we can give some guidelines... 922 01:05:17,187 --> 01:05:22,590 and, more significant, we can ask how we can progress in that direction. 923 01:05:26,862 --> 01:05:31,334 John Dewey, the leading social philosopher in the late 20th century, 924 01:05:31,434 --> 01:05:34,770 he argued that until all institutions, 925 01:05:34,870 --> 01:05:38,807 production, commerce, media, 926 01:05:38,907 --> 01:05:42,977 unless they're all under participatory democratic control, 927 01:05:43,077 --> 01:05:47,378 we will not have a functioning democratic society. 928 01:05:48,847 --> 01:05:53,116 As he put it, "policy will be the shadow cast by business over society." 929 01:05:57,288 --> 01:05:59,255 Well, it's essentially true. 930 01:06:10,166 --> 01:06:14,404 Where there are structures of authority, domination and hierarchy, 931 01:06:14,504 --> 01:06:16,581 somebody gives the orders, somebody takes them, 932 01:06:16,882 --> 01:06:19,342 they are not self-justifying. 933 01:06:19,442 --> 01:06:21,585 They have to justify themselves. 934 01:06:21,686 --> 01:06:24,010 They have a burden of proof to meet. 935 01:06:30,517 --> 01:06:34,722 Well, if you take a close look, usually you find they can't justify themselves. 936 01:06:34,922 --> 01:06:37,555 If they can't, we ought to be dismantling them. 937 01:06:38,924 --> 01:06:41,894 Trying to expand the domain of freedom and justice 938 01:06:41,994 --> 01:06:45,964 by dismantling that form of illegitimate authority. 939 01:06:46,064 --> 01:06:48,967 And, in fact, progress over the years, 940 01:06:49,067 --> 01:06:52,120 what we all thankfully recognize as progress, 941 01:06:52,221 --> 01:06:53,404 has been just that. 942 01:06:53,504 --> 01:06:57,575 The way things change is because lots of people are working all the time. 943 01:06:57,975 --> 01:07:00,684 They're working in their communities, in their workplace, 944 01:07:00,785 --> 01:07:02,079 or wherever they happen to be, 945 01:07:02,179 --> 01:07:04,482 and they're building up the basis 946 01:07:04,582 --> 01:07:08,118 for popular movements, which are going to make changes. 947 01:07:08,418 --> 01:07:11,151 That's the way everything has ever happened in history. 948 01:07:12,920 --> 01:07:14,990 Take, say, freedom of speech... 949 01:07:15,590 --> 01:07:18,593 One of the real achievements of American society, 950 01:07:18,693 --> 01:07:20,335 it's first in the world in that. 951 01:07:20,436 --> 01:07:22,029 It's not in the bill of rights. 952 01:07:22,129 --> 01:07:24,398 It's not in the constitution. 953 01:07:24,498 --> 01:07:28,235 Freedom of speech issues began to come to the supreme court 954 01:07:28,336 --> 01:07:30,234 in the early 20th century. 955 01:07:31,369 --> 01:07:34,606 The major contributions came in the 1960s. 956 01:07:34,706 --> 01:07:38,376 One of the leading ones was a case involving the civil rights movement. 957 01:07:38,476 --> 01:07:41,445 Well, by then, you had a mass popular movement, 958 01:07:41,545 --> 01:07:43,947 which was demanding rights, 959 01:07:44,347 --> 01:07:47,450 refusing to back down. And in that context, 960 01:07:47,550 --> 01:07:49,158 the supreme court did establish 961 01:07:49,259 --> 01:07:51,520 a pretty high standard of freedom of speech. 962 01:07:51,620 --> 01:07:53,823 Or take, say, women's rights. 963 01:07:54,323 --> 01:07:58,126 Women also began identifying oppressive structures, 964 01:07:58,226 --> 01:08:02,530 refusing to accept them, bringing other people to join with them. 965 01:08:02,630 --> 01:08:05,033 Well, that's how rights are won. 966 01:08:06,033 --> 01:08:10,537 To a non-trivial extent, I've also spent a lot of my life in activism. 967 01:08:10,637 --> 01:08:13,515 That doesn't show up publicly, but, yeah... 968 01:08:13,616 --> 01:08:17,106 Actually, I'm not terribly good at it... I'm not the greatest organizer... 969 01:08:17,306 --> 01:08:21,514 I think that we can see quite clearly some very, very serious defects 970 01:08:21,614 --> 01:08:25,550 and flaws in our society, our level of culture, our institutions, 971 01:08:25,650 --> 01:08:29,287 which are going to have to be corrected by operating outside of the framework 972 01:08:29,387 --> 01:08:31,122 that is commonly accepted. 973 01:08:31,222 --> 01:08:34,342 I think we're going to have to find new ways of political action. 974 01:08:36,726 --> 01:08:40,927 But the activists are the people who have created the rights that we enjoy. 975 01:08:41,962 --> 01:08:44,165 They're not only carrying out... 976 01:08:44,265 --> 01:08:47,534 policies based on information that they're receiving, 977 01:08:47,634 --> 01:08:49,802 but also contributing to the understanding. 978 01:08:49,902 --> 01:08:51,968 Remember, it's a reciprocal process. 979 01:08:53,038 --> 01:08:56,107 - ...then you have a great deal of... - You try to do things. You learn. 980 01:08:56,207 --> 01:08:58,375 You learn about what the world is like, 981 01:08:58,475 --> 01:09:02,010 that feeds back to the understanding of how to go on. 982 01:09:05,281 --> 01:09:07,284 There's huge opportunities. 983 01:09:07,384 --> 01:09:11,451 It is a very free society, still the freest in the world. 984 01:09:12,686 --> 01:09:16,123 Government has very limited capacity to coerce. 985 01:09:16,223 --> 01:09:20,294 Corporate business may try to coerce, but they don't have the mechanisms. 986 01:09:20,694 --> 01:09:24,931 So, there's a lot that can be done if people organize, struggle for their rights 987 01:09:25,031 --> 01:09:29,031 as they've done in the past, and can win many victories. 988 01:09:41,076 --> 01:09:46,880 Well, my close friend for many years, the late Howard Zinn... 989 01:09:49,116 --> 01:09:51,618 To put it in his words that, 990 01:09:51,718 --> 01:09:56,923 "what matters is the countless small deeds of unknown people, 991 01:09:57,023 --> 01:10:02,092 who lay the basis for the significant events that enter history." 992 01:10:04,261 --> 01:10:06,898 They're the ones who've done things in the past. 993 01:10:06,998 --> 01:10:09,279 They're the ones who'll have to do it in the future.