﻿1
00:00:48,714 --> 00:00:52,450
  During the great depression,
      which I'm old enough
    to remember, there was--

2
00:00:52,452 --> 00:00:55,619
     And most of my family
were unemployed working class...

3
00:00:55,621 --> 00:00:57,354
   There wasn't-- it was bad,

4
00:00:57,356 --> 00:00:59,756
           Much worse
    subjectively than today.

5
00:00:59,758 --> 00:01:02,725
  But there was an expectation
 that things were going to get
            better.

6
00:01:04,360 --> 00:01:06,494
     There was a real sense
        of hopefulness.

7
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       There isn't today.

8
00:01:17,638 --> 00:01:21,407
      Inequality is really
         unprecedented.

9
00:01:21,409 --> 00:01:25,611
If you look at total inequality,
  it's like the worst periods
      of american history.

10
00:01:31,651 --> 00:01:40,156
   The inequality comes from
  the extreme wealth in a tiny
   sector of the population,

11
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   A fraction of one percent.

12
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    There were periods like
   the gilded age in the '20s

13
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And the roaring '90s and so on,

14
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   When a situation developed
    rather similar to this.

15
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 Now, this period's extreme...

16
00:01:56,170 --> 00:01:58,770
      Because if you look
  at the wealth distribution,

17
00:01:58,772 --> 00:02:03,307
     The inequality mostly
    comes from super wealth.

18
00:02:07,211 --> 00:02:11,246
       Literally, the top
      1/10th of a percent
    are just super wealthy.

19
00:02:12,781 --> 00:02:16,316
    Not only is it extremely
      unjust in itself...

20
00:02:16,318 --> 00:02:20,419
 Inequality has highly negative
  consequences on the society
         as a whole...

21
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     Because the very fact
 of inequality has a corrosive,
  harmful effect on democracy.

22
00:02:34,232 --> 00:02:36,833
   You open by talking about
      the american dream.

23
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   Part of the american dream
       is class mobility.

24
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 You get rich. It was possible
  for a worker to get a decent
       job, buy a home...

25
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      Get a car, have his
     children go to school.

26
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      It's all collapsed.

27
00:03:07,860 --> 00:03:12,830
 Imagine yourself in an outside
  position, looking from mars.

28
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        What do you see?

29
00:03:40,657 --> 00:03:44,793
     In the United States,
      there are professed
     values like democracy.

30
00:03:51,566 --> 00:03:56,202
 In a democracy, public opinion
is going to have some influence
           on policy.

31
00:04:00,840 --> 00:04:05,543
    And then, the government
 carries out actions determined
       by the population.

32
00:04:05,545 --> 00:04:07,311
  That's what democracy means.

33
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  It's important to understand
  that privileged and powerful
            sectors

34
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   Have never liked democracy
   and for very good reasons.

35
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      Democracy puts power
       into the hands of
     the general population

36
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  And takes it away from them.

37
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    It's kind of a principle
   of concentration of wealth
           and power.

38
00:04:48,348 --> 00:04:52,384
    Concentration of wealth
yields concentration of power...

39
00:04:52,386 --> 00:04:57,021
  Particularly so as the cost
    of elections skyrockets,

40
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      Which kind of forces
 the political parties into the
 pockets of major corporations.

41
00:05:03,629 --> 00:05:08,465
And this political power quickly
  translates into legislation

42
00:05:08,467 --> 00:05:11,401
         That increases
  the concentration of wealth.

43
00:05:11,403 --> 00:05:14,937
        So fiscal policy
       like tax policy...

44
00:05:14,939 --> 00:05:17,906
        Deregulation...

45
00:05:17,908 --> 00:05:22,644
       Rules of corporate
     governance and a whole
     variety of measures...

46
00:05:22,646 --> 00:05:27,782
  Political measures, designed
 to increase the concentration
      of wealth and power,

47
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        Which, in turn,
  yields more political power
     to do the same thing.

48
00:05:33,721 --> 00:05:35,521
        And that's what
       we've been seeing.

49
00:05:39,592 --> 00:05:42,460
    So we have this kind of
   vicious cycle in progress.

50
00:05:47,766 --> 00:05:54,338
      You know, actually,
it is so traditional that it was
described by adam smith in 1776.

51
00:05:54,340 --> 00:05:56,506
      You read the famous
      "wealth of nations."

52
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      He says in England,
    the principal architects
           of policy

53
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         Are the people
      who own the society.

54
00:06:06,017 --> 00:06:09,818
     In his day, merchants
       and manufacturers.

55
00:06:09,820 --> 00:06:14,989
       And they make sure
    that their own interests
    are very well cared for,

56
00:06:14,991 --> 00:06:19,560
        However grievous
    the impact on the people
     of England or others.

57
00:06:21,829 --> 00:06:24,530
    Now, it's not merchants
       and manufacturers,

58
00:06:24,532 --> 00:06:27,432
  It's financial institutions
and multinational corporations.

59
00:06:28,767 --> 00:06:33,570
   The people who adam smith
called the "masters of mankind,"

60
00:06:33,572 --> 00:06:38,808
 And they're following the vile
   maxim, "all for ourselves
 and nothing for anyone else."

61
00:06:41,845 --> 00:06:46,815
  They're just going to pursue
   policies that benefit them
    and harm everyone else.

62
00:06:46,817 --> 00:06:52,720
And in the absence of a general
popular reaction, that's pretty
    much what you'd expect.

63
00:07:03,631 --> 00:07:08,401
Right through american history,
there's been an ongoing clash...

64
00:07:08,403 --> 00:07:14,472
   Between pressure for more
  freedom and democracy coming
          from below,

65
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  And efforts at elite control
   and domination coming from
             above.

66
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        It goes back to
  the founding of the country.

67
00:07:29,852 --> 00:07:31,953
James madison, the main framer,

68
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 Who was as much of a believer
    in democracy as anybody
   in the world in that day,

69
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     Nevertheless felt that
    the United States system
      should be designed,

70
00:07:41,130 --> 00:07:44,898
      And indeed with his
    initiative was designed,

71
00:07:44,900 --> 00:07:48,835
    So that power should be
 in the hands of the wealthy...

72
00:07:48,837 --> 00:07:52,872
      Because the wealthy
    are the more responsible
          set of men.

73
00:07:52,874 --> 00:07:56,742
        And, therefore,
  the structure of the formal
     constitutional system

74
00:07:56,744 --> 00:07:59,611
       Placed most power
  in the hands of the senate.

75
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    Remember, the senate was
   not elected in those days.

76
00:08:02,616 --> 00:08:04,849
        It was selected
       from the wealthy.

77
00:08:04,851 --> 00:08:09,753
    Men, as madison put it,
   "had sympathy for property
   owners and their rights."

78
00:08:12,490 --> 00:08:14,958
    If you read the debates
     at the constitutional
         convention...

79
00:08:16,727 --> 00:08:20,496
Madison said, "the major concern
    of the society has to be

80
00:08:20,498 --> 00:08:23,799
    To protect the minority
     of the opulent against
         the majority."

81
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     And he had arguments.

82
00:08:29,472 --> 00:08:32,039
        Suppose everyone
       had a vote freely.

83
00:08:32,041 --> 00:08:35,742
  He said, "well, the majority
 of the poor would get together

84
00:08:35,744 --> 00:08:38,978
    And they would organize
   to take away the property
         of the rich."

85
00:08:38,980 --> 00:08:42,781
   And, he said, "that would
      obviously be unjust,
    so you can't have that."

86
00:08:42,783 --> 00:08:46,117
So, therefore the constitutional
    system has to be set up
     to prevent democracy.

87
00:08:57,928 --> 00:09:02,965
It's of some interest that this
 debate has a hoary tradition.

88
00:09:02,967 --> 00:09:07,736
  Goes back to the first major
   book on political systems,
    aristotle's "politics."

89
00:09:09,872 --> 00:09:13,140
   He says, "of all of them,
    the best is democracy,"

90
00:09:13,142 --> 00:09:17,143
     But then he points out
     exactly the flaw that
      madison pointed out.

91
00:09:20,714 --> 00:09:23,515
   If athens were a democracy
         for free men,

92
00:09:23,517 --> 00:09:26,150
  The poor would get together
   and take away the property
          of the rich.

93
00:09:27,986 --> 00:09:31,655
      Well, same dilemma,
  they had opposite solutions.

94
00:09:31,657 --> 00:09:35,659
Aristotle proposed what we would
 nowadays call a welfare state.

95
00:09:35,661 --> 00:09:37,494
            He said,
  "try to reduce inequality."

96
00:09:42,599 --> 00:09:45,500
       So, same problem,
      opposite solutions.

97
00:09:45,502 --> 00:09:48,903
   One is reduce inequality,
  you won't have this problem.

98
00:09:48,905 --> 00:09:50,704
 The other is reduce democracy.

99
00:09:57,678 --> 00:09:59,779
   If you look at the history
    of the United States...

100
00:09:59,781 --> 00:10:03,015
    It's a constant struggle
 between these two tendencies.

101
00:10:03,017 --> 00:10:07,152
    A democratizing tendency
   that's mostly coming from
        the population,

102
00:10:07,154 --> 00:10:13,258
And you get this constant battle
going on, periods of regression,
      periods of progress.

103
00:10:13,260 --> 00:10:18,630
     The 1960s for example,
  were a period of significant
        democratization.

104
00:10:23,668 --> 00:10:25,068
       [crowd clamoring]

105
00:10:33,076 --> 00:10:37,112
   Sectors of the population
   that were usually passive

106
00:10:37,114 --> 00:10:41,883
And apathetic became organized,
 active, started pressing their
            demands.

107
00:10:46,955 --> 00:10:52,825
 And they became more and more
  involved in decision-making,
      activism and so on.

108
00:10:54,093 --> 00:10:56,861
 It just changed consciousness
       in a lot of ways.

109
00:11:03,969 --> 00:11:08,037
  If democracy means freedom,
  why aren't our people free?

110
00:11:08,039 --> 00:11:11,340
  If democracy means justice,
   why don't we have justice?

111
00:11:11,342 --> 00:11:15,711
  If democracy means equality,
  why don't we have equality?

112
00:11:15,713 --> 00:11:20,949
      This inhuman system
  of exploitation will change,

113
00:11:20,951 --> 00:11:24,986
   But only if we force it to
 change, and force it together.

114
00:11:24,988 --> 00:11:26,721
  Concern for the environment.

115
00:11:26,723 --> 00:11:29,023
 [walter cronkite] a unique day
 in american history is ending,

116
00:11:29,025 --> 00:11:34,594
A day set aside for a nationwide
 outpouring of mankind seeking
       its own survival.

117
00:11:34,596 --> 00:11:39,899
   [dr. Benjamin spock] I say
   to those who criticize us
for the militancy of our dissent

118
00:11:39,901 --> 00:11:42,234
    That if they are serious
      about law and order,

119
00:11:42,236 --> 00:11:45,003
  They should first provide it
   for the vietnamese people,

120
00:11:45,005 --> 00:11:48,206
    For our own black people
  and for our own poor people.

121
00:11:48,208 --> 00:11:49,907
   Concern for other people.

122
00:11:49,909 --> 00:11:51,976
    [dr. Martin luther king]
      one day we must ask
         the question,

123
00:11:51,978 --> 00:11:54,712
   "why are there 40 million
    poor people in america?"

124
00:11:54,714 --> 00:11:57,715
         When you begin
     to ask that question,

125
00:11:57,717 --> 00:12:00,718
   You're raising a question
   about the economic system,

126
00:12:00,720 --> 00:12:02,953
        About a broader
    distribution of wealth,

127
00:12:02,955 --> 00:12:07,490
 The question of restructuring
 the whole of american society.

128
00:12:07,492 --> 00:12:09,291
         These are all
     civilizing effects...

129
00:12:12,728 --> 00:12:14,161
  And that caused great fear.

130
00:12:29,810 --> 00:12:34,780
      I hadn't anticipated
          the power--

131
00:12:34,782 --> 00:12:38,483
   I should've, but I didn't
      anticipate the power
        of the reaction

132
00:12:38,485 --> 00:12:40,952
      To these civilizing
      effects of the '60s.

133
00:12:40,954 --> 00:12:46,256
      I did not anticipate
        the strength of
      the reaction to it.

134
00:12:49,827 --> 00:12:51,127
         The backlash.

135
00:12:59,902 --> 00:13:04,205
   There has been an enormous
  concentrated, coordinated...

136
00:13:04,207 --> 00:13:06,941
       Business offensive
     beginning in the '70s

137
00:13:06,943 --> 00:13:10,544
      To try to beat back
    the egalitarian efforts

138
00:13:10,546 --> 00:13:12,779
        That went right
    through the nixon years.

139
00:13:12,781 --> 00:13:20,119
 Over on the right, you see it
   in things like the famous
      powell memorandum...

140
00:13:22,255 --> 00:13:25,156
Sent to the chamber of commerce,
   the major business lobby,

141
00:13:25,158 --> 00:13:28,159
     By later supreme court
       justice powell...

142
00:13:28,161 --> 00:13:32,229
   Warning them that business
       is losing control
      over the society...

143
00:13:35,266 --> 00:13:38,434
  And something has to be done
    to counter these forces.

144
00:13:38,436 --> 00:13:41,036
     Of course, he puts it
      in terms of defense,

145
00:13:41,038 --> 00:13:43,471
      "defending ourselves
   against an outside power."

146
00:13:49,377 --> 00:13:54,180
     But if you look at it,
it's a call for business to use
   its control over resources

147
00:13:54,182 --> 00:13:58,250
 To carry out a major offensive
to beat back this democratizing
             wave.

148
00:14:08,360 --> 00:14:12,162
   Over on the liberal side,
   there's something exactly
            similar.

149
00:14:12,164 --> 00:14:17,934
   The first major report of
   the trilateral commission

150
00:14:17,936 --> 00:14:21,470
    Is concerned with this.
    It's called "the crisis
         of democracy."

151
00:14:23,372 --> 00:14:26,240
     Trilateral commission
is liberal internationalists...

152
00:14:26,242 --> 00:14:29,343
   Their flavor is indicated
        by the fact that

153
00:14:29,345 --> 00:14:31,545
    They pretty much staffed
   the carter administration.

154
00:14:35,917 --> 00:14:40,520
   They were also appalled by
  the democratizing tendencies
          of the '60s,

155
00:14:40,522 --> 00:14:43,923
          And thought
    we have to react to it.

156
00:14:43,925 --> 00:14:47,593
    They were concerned that
    there was an "excess of
     democracy" developing.

157
00:14:51,164 --> 00:14:56,334
Previously passive and obedient
    parts of the population,

158
00:14:56,336 --> 00:14:58,502
   What are sometimes called,
    "the special interests,"

159
00:14:58,504 --> 00:15:02,506
   Were beginning to organize
 and try to enter the political
             arena,

160
00:15:02,508 --> 00:15:06,409
  And they said, "that imposes
too much pressure on the state.

161
00:15:06,411 --> 00:15:08,878
     It can't deal with all
       these pressures."

162
00:15:08,880 --> 00:15:14,082
    So, therefore, they have
     to return to passivity
   and become depoliticized.

163
00:15:14,084 --> 00:15:15,950
           [chanting]

164
00:15:15,952 --> 00:15:18,919
They were particularly concerned
    with what was happening
        to young people.

165
00:15:18,921 --> 00:15:20,987
 "the young people are getting
   too free and independent."

166
00:15:20,989 --> 00:15:23,122
  [young man] none of us will
      beget any violence.

167
00:15:23,124 --> 00:15:27,326
    If there's any violence,
       it will be because
         of the police.

168
00:15:27,328 --> 00:15:31,330
  [noam chomsky] the way they
   put it, there's failure on
    the part of the schools,

169
00:15:31,332 --> 00:15:33,665
       The universities,
        the churches...

170
00:15:33,667 --> 00:15:37,969
  The institutions responsible
    for the "indoctrination
         of the young."

171
00:15:37,971 --> 00:15:39,403
    Their phrase, not mine.

172
00:15:44,509 --> 00:15:47,911
  If you look at their study,
   there's one interest they
        never mention...

173
00:15:47,913 --> 00:15:53,216
 And that makes sense, they're
 not special interest, they're
     the national interest,

174
00:15:53,218 --> 00:15:55,585
     Kind of by definition.
        So they're okay.

175
00:15:55,587 --> 00:16:00,089
 They're allowed to, you know,
 have lobbyists, buy campaigns,

176
00:16:00,091 --> 00:16:03,092
      Staff the executive,
  make decisions, that's fine.

177
00:16:03,094 --> 00:16:06,662
       But it's the rest,
     the special interests,
    the general population,

178
00:16:06,664 --> 00:16:08,163
    Who have to be subdued.

179
00:16:08,165 --> 00:16:09,397
          [clamoring]

180
00:16:15,670 --> 00:16:17,237
   Well, that's the spectrum.

181
00:16:17,239 --> 00:16:21,241
  It's the kind of ideological
     level of the backlash.

182
00:16:21,243 --> 00:16:25,178
    But the major backlash,
which was in parallel to this...

183
00:16:25,180 --> 00:16:27,480
      Was just redesigning
          the economy.

184
00:16:41,694 --> 00:16:48,599
 Since the 1970s, there's been
 a concerted effort on the part
   of the masters of mankind,

185
00:16:48,601 --> 00:16:50,567
   The owners of the society,

186
00:16:50,569 --> 00:16:54,237
      To shift the economy
    in two crucial respects.

187
00:16:54,239 --> 00:16:59,641
   One, to increase the role
   of financial institutions,

188
00:16:59,643 --> 00:17:03,411
    Banks, investment firms,
            so on...

189
00:17:03,413 --> 00:17:05,579
      Insurance companies.

190
00:17:05,581 --> 00:17:09,749
     By 2007, right before
       the latest crash,

191
00:17:09,751 --> 00:17:13,252
     They had literally 40%
    of corporate profits...

192
00:17:16,389 --> 00:17:18,289
           Far beyond
     anything in the past.

193
00:17:26,697 --> 00:17:30,433
       Back in the 1950s,
   as for many years before,

194
00:17:30,435 --> 00:17:34,236
   The United States economy
was based largely on production.

195
00:17:34,238 --> 00:17:38,473
     The United States was
    the great manufacturing
      center of the world.

196
00:17:45,346 --> 00:17:49,716
  Financial institutions used
 to be a relatively small part
         of the economy

197
00:17:49,718 --> 00:17:54,686
       And their task was
         to distribute
      unused assets like,

198
00:17:54,688 --> 00:17:58,389
       Say, bank savings
    to productive activity.

199
00:17:58,391 --> 00:18:01,258
   [man] the bank always has
   on hand a reserve of money

200
00:18:01,260 --> 00:18:03,760
         Received from
        the stockholders
        and depositors.

201
00:18:03,762 --> 00:18:06,295
        On the basis of
      these cash reserves,

202
00:18:06,297 --> 00:18:11,433
   A bank can create credit.
  So besides providing a safe
  place for depositing money,

203
00:18:11,435 --> 00:18:16,471
   A bank serves a community
  by making additional credit
  available for many purposes.

204
00:18:16,473 --> 00:18:20,107
   For a manufacturer to meet
    his payroll during slack
        selling periods,

205
00:18:20,109 --> 00:18:23,110
   For a merchant to enlarge
     and remodel his store,

206
00:18:23,112 --> 00:18:27,347
And for many other good reasons
 why people are always needing
          more credit

207
00:18:27,349 --> 00:18:29,782
         Than they have
     immediately available.

208
00:18:29,784 --> 00:18:31,817
           [chomsky]
     that's a contribution
        to the economy.

209
00:18:33,286 --> 00:18:35,353
       Regulatory system
        was established.

210
00:18:35,355 --> 00:18:37,555
     Banks were regulated.

211
00:18:37,557 --> 00:18:40,291
 The commercial and investment
     banks were separated,

212
00:18:40,293 --> 00:18:46,596
Cut back their risky investment
   practices that could harm
        private people.

213
00:18:46,598 --> 00:18:51,701
   There had been, remember,
  no financial crashes during
   the period of regulation.

214
00:18:51,703 --> 00:18:54,437
  By the 1970s, that changed.

215
00:19:03,646 --> 00:19:08,349
 You started getting that huge
    increase in the flows of
      speculative capital,

216
00:19:08,351 --> 00:19:10,651
 Just astronomically increase,

217
00:19:10,653 --> 00:19:13,253
        Enormous changes
    in the financial sector

218
00:19:13,255 --> 00:19:17,490
     From traditional banks
     to risky investments,

219
00:19:17,492 --> 00:19:22,394
 Complex financial instruments,
 money manipulations and so on.

220
00:19:22,396 --> 00:19:27,865
   Increasingly, the business
of the country isn't production,
       at least not here.

221
00:19:29,601 --> 00:19:32,869
      The primary business
       here is business.

222
00:19:32,871 --> 00:19:36,172
      You can even see it
  in the choice of directors.

223
00:19:36,174 --> 00:19:41,544
     A director of a major
      american corporation
   back in the '50s and '60s

224
00:19:41,546 --> 00:19:46,482
     Was very likely to be
   an engineer, somebody who
graduated from a place like mit,

225
00:19:46,484 --> 00:19:48,550
  Maybe industrial management.

226
00:19:48,552 --> 00:19:52,787
More recently, the directorship
and the top managerial positions

227
00:19:52,789 --> 00:19:54,889
    Are people who came out
      of business schools,

228
00:19:54,891 --> 00:19:58,392
 Learned the financial trickery
  of various kinds, and so on.

229
00:20:00,228 --> 00:20:04,397
         By the 1970s,
      say general electric
     could make more profit

230
00:20:04,399 --> 00:20:08,801
    Playing games with money
  than you could by producing
     in the United States.

231
00:20:12,639 --> 00:20:14,873
      You have to remember
     that general electric

232
00:20:14,875 --> 00:20:18,443
        Is substantially
 a financial institution today.

233
00:20:18,445 --> 00:20:23,748
 It makes half its profits just
     by moving money around
      in complicated ways.

234
00:20:23,750 --> 00:20:28,819
   And it's very unclear that
 they're doing anything that's
    of value to the economy.

235
00:20:28,821 --> 00:20:32,789
   So that's one phenomenon,
 what's called financialization
        of the economy.

236
00:20:35,793 --> 00:20:38,728
     Going along with that
       is the off-shoring
         of production.

237
00:20:56,379 --> 00:20:59,280
        The trade system
       was reconstructed

238
00:20:59,282 --> 00:21:02,883
      With a very explicit
       design of putting

239
00:21:02,885 --> 00:21:06,486
         Working people
    in competition with one
  another all over the world.

240
00:21:08,455 --> 00:21:13,425
     And what it's lead to
         is a reduction
     in the share of income

241
00:21:13,427 --> 00:21:16,895
 On the part of working people.

242
00:21:16,897 --> 00:21:20,531
It's been particularly striking
     in the United States,
 but it's happening worldwide.

243
00:21:20,533 --> 00:21:23,467
   It means that an american
    worker's in competition

244
00:21:23,469 --> 00:21:25,835
    With the super-exploited
        worker in china.

245
00:21:29,372 --> 00:21:32,841
     Meanwhile, highly paid
  professionals are protected.

246
00:21:32,843 --> 00:21:37,512
       They're not placed
  in competition with the rest
   of the world. Far from it.

247
00:21:37,514 --> 00:21:40,581
        And, of course,
  the capital is free to move.

248
00:21:40,583 --> 00:21:44,985
  Workers aren't free to move,
       labor can't move,
        but capital can.

249
00:21:44,987 --> 00:21:48,755
    Well, again, going back
to the classics like adam smith,

250
00:21:48,757 --> 00:21:52,325
       As he pointed out,
   free circulation of labor

251
00:21:52,327 --> 00:21:55,895
      Is the foundation of
     any free trade system,

252
00:21:55,897 --> 00:21:58,764
        But workers are
       pretty much stuck.

253
00:21:58,766 --> 00:22:01,633
          The wealthy
       and the privileged
         are protected,

254
00:22:01,635 --> 00:22:03,801
So you get obvious consequences.

255
00:22:03,803 --> 00:22:06,002
     And they're recognized
     and, in fact, praised.

256
00:22:09,673 --> 00:22:12,574
       Policy is designed
    to increase insecurity.

257
00:22:13,909 --> 00:22:16,844
        Alan greenspan.
 When he testified to congress,

258
00:22:16,846 --> 00:22:21,481
    He explained his success
     in running the economy

259
00:22:21,483 --> 00:22:26,752
  As based on what he called,
  "greater worker insecurity."

260
00:22:26,754 --> 00:22:32,023
     A typical restraint on
compensation increases has been
  evident for a few years now,

261
00:22:32,025 --> 00:22:35,926
But as I outlined in some detail
    in testimony last month,

262
00:22:35,928 --> 00:22:39,796
 I believe that job insecurity
 has played the dominant role.

263
00:22:39,798 --> 00:22:44,433
     Keep workers insecure,
      they're going to be
         under control.

264
00:22:44,435 --> 00:22:48,603
 They are not going to ask for,
      say, decent wages...

265
00:22:48,605 --> 00:22:50,905
Or decent working conditions...

266
00:22:50,907 --> 00:22:55,643
   Or the opportunity of free
 association, meaning unionize.

267
00:22:55,645 --> 00:23:00,514
      Now, for the masters
    of mankind, that's fine.
    They make their profits.

268
00:23:00,516 --> 00:23:02,949
    But for the population,
       it's devastating.

269
00:23:05,018 --> 00:23:08,854
      These two processes,
financialization and off-shoring

270
00:23:08,856 --> 00:23:13,491
     Are part of what lead
      to the vicious cycle

271
00:23:13,493 --> 00:23:16,760
   Of concentration of wealth
  and concentration of power.

272
00:23:25,669 --> 00:23:29,471
        I'm noam chomsky
 and I'm on the faculty at mit,

273
00:23:29,473 --> 00:23:32,574
   And I've been getting more
  and more heavily involved in

274
00:23:32,576 --> 00:23:34,876
      Anti-war activities
    for the last few years.

275
00:23:41,616 --> 00:23:45,118
     Noam chomsky has made
 two international reputations.

276
00:23:45,120 --> 00:23:50,123
  The widest is as one of the
  national leaders of american
 resistance to the vietnam war.

277
00:23:50,125 --> 00:23:52,925
 The deepest is as a professor
        of linguistics,

278
00:23:52,927 --> 00:23:57,195
Who, before he was 40 years old,
   had transformed the nature
        of his subject.

279
00:23:59,798 --> 00:24:02,533
       You are identified
       with the new left,
       whatever that is.

280
00:24:02,535 --> 00:24:05,501
    You certainly have been
an activist as well as a writer.

281
00:24:08,204 --> 00:24:10,905
   Professor noam chomsky...

282
00:24:10,907 --> 00:24:17,010
 Is listed in anybody's catalog
  as among the half-dozen top
    heroes of the new left.

283
00:24:17,012 --> 00:24:21,447
    The standing he achieved
   by adopting over the past
       two or three years

284
00:24:21,449 --> 00:24:23,816
 A series of adamant positions

285
00:24:23,818 --> 00:24:29,188
  Rejecting at least american
    foreign policy, at most
        america itself.

286
00:24:36,562 --> 00:24:41,032
      Actually this notion
     anti-american is quite
      an interesting one.

287
00:24:41,034 --> 00:24:43,768
         It's actually
     a totalitarian notion.

288
00:24:43,770 --> 00:24:46,570
It isn't used in free societies.

289
00:24:46,572 --> 00:24:52,008
    So, if someone in, say,
Italy is criticizing berlusconi

290
00:24:52,010 --> 00:24:57,713
Or the corruption of the italian
  state and so on, they're not
      called anti-italian.

291
00:24:57,715 --> 00:25:01,883
  In fact, if they were called
   anti-italian, people would
      collapse in laughter

292
00:25:01,885 --> 00:25:04,218
         In the streets
       of rome or milan.

293
00:25:05,553 --> 00:25:08,688
     In totalitarian states
       the notion's used,

294
00:25:08,690 --> 00:25:13,492
   So in the old soviet union
     dissidents were called
          anti-soviet.

295
00:25:13,494 --> 00:25:15,660
That was the worst condemnation.

296
00:25:15,662 --> 00:25:20,965
   In the brazilian military
    dictatorship, they were
     called anti-brazilian.

297
00:25:23,201 --> 00:25:26,203
  Now, it's true that in just
      about every society,

298
00:25:26,205 --> 00:25:29,940
    The critics are maligned
        or mistreated...

299
00:25:29,942 --> 00:25:33,643
  Different ways depending on
   the nature of the society.

300
00:25:33,645 --> 00:25:37,679
   Like in the soviet union,
   say vaclav havel would be
          imprisoned.

301
00:25:39,181 --> 00:25:43,117
   In a u.S. Dependency like
 el salvador, at the same time,

302
00:25:43,119 --> 00:25:49,155
  His counterparts would have
   their brains blown out by
u.S.-Run state terrorist forces.

303
00:25:49,157 --> 00:25:52,791
In other societies, they're just
condemned or vilified and so on.

304
00:25:52,793 --> 00:25:58,629
  In the United States, one of
       the terms of abuse
      is "anti-american."

305
00:25:58,631 --> 00:26:01,231
      There's a couple of
    others, like "marxist."

306
00:26:01,233 --> 00:26:04,601
        There's an array
       of terms of abuse.

307
00:26:04,603 --> 00:26:07,704
   But in the United States,
  you have a very high degree
          of freedom.

308
00:26:07,706 --> 00:26:11,307
 So, if you're vilified by some
  commissars, then who cares?

309
00:26:11,309 --> 00:26:13,642
           You go on,
    you do your work anyway.

310
00:26:13,644 --> 00:26:18,947
   These concepts only arise
   in a culture where, if you
           criticize

311
00:26:18,949 --> 00:26:22,717
          State power,
    and by state, I mean...

312
00:26:22,719 --> 00:26:26,287
    More generally not just
      government but state
        corporate power,

313
00:26:26,289 --> 00:26:29,823
        If you criticize
      concentrated power,
  you're against the society,

314
00:26:29,825 --> 00:26:34,894
   That's quite striking that
it's used in the United States.

315
00:26:34,896 --> 00:26:38,264
   In fact, as far as I know,
it's the only democratic society

316
00:26:38,266 --> 00:26:41,133
       Where the concept
     isn't just ridiculed.

317
00:26:41,135 --> 00:26:47,906
    It's a sign of elements
     of the elite culture,
     which are quite ugly.

318
00:27:29,247 --> 00:27:35,317
 The american dream, like many
  ideals, was partly symbolic,
        but partly real.

319
00:27:35,319 --> 00:27:41,255
    So in the 1950s and 60s,
   say, there was the biggest
         growth period

320
00:27:41,257 --> 00:27:44,157
 In american economic history.

321
00:27:47,361 --> 00:27:48,894
        The golden age.

322
00:27:52,665 --> 00:27:55,967
         It was pretty
      egalitarian growth,

323
00:27:55,969 --> 00:28:00,704
   So the lowest fifth of the
 population was improving about
  as much as the upper fifth.

324
00:28:02,339 --> 00:28:04,840
      And there were some
    welfare state measures,

325
00:28:04,842 --> 00:28:08,710
      Which improved life
    for much the population.

326
00:28:08,712 --> 00:28:13,281
      It was, for example,
  possible for a black worker

327
00:28:13,283 --> 00:28:16,817
      To get a decent job
       in an auto plant,

328
00:28:16,819 --> 00:28:21,687
     Buy a home, get a car,
      have his children go
      to school and so on.

329
00:28:21,689 --> 00:28:23,221
 And the same across the board.

330
00:28:26,692 --> 00:28:31,429
  When the u.S. Was primarily
    a manufacturing center,

331
00:28:31,431 --> 00:28:36,267
     It had to be concerned
with its own consumers... Here.

332
00:28:36,269 --> 00:28:43,173
  Famously, henry ford raised
   the salary of his workers
 so they'd be able to buy cars.

333
00:28:46,210 --> 00:28:50,813
    When you're moving into
 an international "plutonomy,"

334
00:28:50,815 --> 00:28:52,981
As the banks like to call it...

335
00:28:52,983 --> 00:28:59,053
      The small percentage
of the world's population that's
 gathering increasing wealth...

336
00:28:59,055 --> 00:29:02,890
    What happens to american
     consumers is much less
           a concern,

337
00:29:02,892 --> 00:29:05,792
  Because most of them aren't
   going to be consuming your
        products anyway,

338
00:29:05,794 --> 00:29:08,194
 At least not on a major basis.

339
00:29:08,196 --> 00:29:11,163
        Your goals are,
  profit in the next quarter,

340
00:29:11,165 --> 00:29:15,300
     Even if it's based on
   financial manipulations...

341
00:29:15,302 --> 00:29:17,101
   High salary, high bonuses,

342
00:29:17,103 --> 00:29:19,436
        Produce overseas
        if you have to,

343
00:29:19,438 --> 00:29:24,907
  And produce for the wealthy
     classes here and their
      counterparts abroad.

344
00:29:24,909 --> 00:29:26,241
      What about the rest?

345
00:29:26,243 --> 00:29:29,210
  Well, there's a term coming
    into use for them, too.

346
00:29:29,212 --> 00:29:31,979
         They're called
       the "precariat"...

347
00:29:31,981 --> 00:29:34,481
   Precarious proletariat...

348
00:29:34,483 --> 00:29:38,818
       The working people
     of the world who live
 increasingly precarious lives.

349
00:29:41,021 --> 00:29:43,822
And it's related to the attitude
 toward the country altogether.

350
00:29:48,994 --> 00:29:53,197
   During the period of great
    growth of the economy...

351
00:29:53,199 --> 00:29:55,866
     The '50s and the '60s,
    but in fact, earlier...

352
00:29:55,868 --> 00:29:59,870
      Taxes on the wealthy
        were far higher.

353
00:29:59,872 --> 00:30:02,372
        Corporate taxes
       were much higher,

354
00:30:02,374 --> 00:30:04,941
       Taxes on dividends
      were much higher...

355
00:30:04,943 --> 00:30:07,810
     Simply taxes on wealth
       were much higher.

356
00:30:07,812 --> 00:30:10,746
       The tax system has
        been redesigned,

357
00:30:10,748 --> 00:30:16,118
So that the taxes that are paid
by the very wealthy are reduced

358
00:30:16,120 --> 00:30:20,755
     And, correspondingly,
 the tax burden on the rest of
  the population's increased.

359
00:30:34,135 --> 00:30:37,837
        Now the shift is
  towards trying to keep taxes

360
00:30:37,839 --> 00:30:40,339
         Just on wages
     and on consumption...

361
00:30:40,341 --> 00:30:44,309
   Which everyone has to do,
    not, say, on dividends,
   which only go to the rich.

362
00:30:48,814 --> 00:30:50,381
The numbers are pretty striking.

363
00:30:59,190 --> 00:31:02,425
    Now, there's a pretext--
   of course, there's always
           a pretext.

364
00:31:02,427 --> 00:31:07,296
  The pretext in this case is,
well, that increases investment
      and increases jobs,

365
00:31:07,298 --> 00:31:09,398
        But there isn't
     any evidence for that.

366
00:31:09,400 --> 00:31:12,567
    If you want to increase
 investment, give money to the
  poor and the working people.

367
00:31:12,569 --> 00:31:15,202
    They have to keep alive,
  so they spend their incomes.

368
00:31:15,204 --> 00:31:19,906
  That stimulates productions,
  stimulates investment, leads
    to job growth and so on.

369
00:31:22,976 --> 00:31:26,445
    If you're an ideologist
        for the masters,
   you have a different line.

370
00:31:26,447 --> 00:31:28,914
    And in fact, right now,
      it's almost absurd.

371
00:31:28,916 --> 00:31:33,485
    Corporations have money
  coming out of their pockets.

372
00:31:33,487 --> 00:31:38,022
 So, in fact, general electric,
 are paying zero taxes and they
     have enormous profits.

373
00:31:38,024 --> 00:31:42,326
   Let's them take the profit
  somewhere else, or defer it,
       but not pay taxes,

374
00:31:42,328 --> 00:31:43,460
      And this is common.

375
00:31:46,964 --> 00:31:51,367
The major american corporations
shifted the burden of sustaining
          the society

376
00:31:51,369 --> 00:31:53,369
         Onto the rest
       of the population.

377
00:32:16,926 --> 00:32:19,093
 Solidarity is quite dangerous.

378
00:32:19,095 --> 00:32:22,463
   From the point of view of
    the masters, you're only
supposed to care about yourself,

379
00:32:22,465 --> 00:32:24,598
    Not about other people.

380
00:32:24,600 --> 00:32:29,603
  This is quite different from
the people they claim are their
    heroes like adam smith,

381
00:32:29,605 --> 00:32:34,240
  Who based his whole approach
to the economy on the principle
         that sympathy

382
00:32:34,242 --> 00:32:39,245
 Is a fundamental human trait,
 but that has to be driven out
       of people's heads.

383
00:32:39,247 --> 00:32:43,949
 You've got to be for yourself,
     follow the vile maxim,
   "don't care about others,"

384
00:32:43,951 --> 00:32:46,418
       Which is okay for
     the rich and powerful,

385
00:32:46,420 --> 00:32:49,187
       But is devastating
       for everyone else.

386
00:32:52,157 --> 00:32:59,196
   It's taken a lot of effort
   to drive these basic human
emotions out of people's heads.

387
00:33:02,466 --> 00:33:06,268
      And we see it today
      in policy formation.

388
00:33:06,270 --> 00:33:08,369
          For example,
        in the attack on
        social security.

389
00:33:11,373 --> 00:33:15,142
       Social security is
     based on a principle.

390
00:33:15,144 --> 00:33:17,944
   It's based on a principle
         of solidarity.

391
00:33:17,946 --> 00:33:20,345
 Solidarity, caring for others.

392
00:33:22,981 --> 00:33:27,150
     Social security means,
    "I pay payroll taxes...

393
00:33:27,152 --> 00:33:32,622
 So that the widow across town
 can get something to live on."

394
00:33:32,624 --> 00:33:35,257
  For much of the population,
  that's what they survive on.

395
00:33:36,492 --> 00:33:38,593
It's of no use to the very rich,

396
00:33:38,595 --> 00:33:41,595
         So therefore,
      there's a concerted
     attempt to destroy it.

397
00:33:44,131 --> 00:33:46,232
One of the ways is defunding it.

398
00:33:46,234 --> 00:33:50,169
      You want to destroy
 some system? First defund it.

399
00:33:50,171 --> 00:33:53,205
      Then, it won't work.
     People will be angry.
   They want something else.

400
00:33:53,207 --> 00:33:57,575
   It's a standard technique
  for privatizing some system.

401
00:34:01,279 --> 00:34:04,347
    We see it in the attack
       on public schools.

402
00:34:04,349 --> 00:34:09,251
    Public schools are based
on the principle of solidarity.

403
00:34:09,253 --> 00:34:12,254
          I no longer
    have children in school.
      They're grown up...

404
00:34:12,256 --> 00:34:14,956
       But the principle
      of solidarity says,

405
00:34:14,958 --> 00:34:20,193
  "I happily pay taxes so that
   the kid across the street
       can go to school."

406
00:34:20,195 --> 00:34:23,362
       Now, that's normal
         human emotion.

407
00:34:23,364 --> 00:34:25,364
     You have to drive that
     out of people's heads.

408
00:34:25,366 --> 00:34:31,002
 "I don't have kids in school.
    Why should I pay taxes?
     Privatize it," so on.

409
00:34:34,406 --> 00:34:39,410
  The public education system,
 all the way from kindergarten
      to higher education,

410
00:34:39,412 --> 00:34:44,247
    Is under severe attack.
    That's one of the jewels
      of american society.

411
00:34:47,584 --> 00:34:49,318
          [inaudible]

412
00:34:54,423 --> 00:34:57,124
       You go back to the
      golden age again...

413
00:34:57,126 --> 00:34:59,693
    The great growth period
     in the '50s and '60s.

414
00:34:59,695 --> 00:35:03,663
     A lot of that is based
   on free public education.

415
00:35:03,665 --> 00:35:08,100
       One of the results
    of the second world war
   was the gi bill of rights,

416
00:35:08,102 --> 00:35:12,704
    Which enabled veterans,
  and remember, that's a large
  part of the population then,

417
00:35:12,706 --> 00:35:15,606
To go to college. They wouldn't
 have been able to, otherwise.

418
00:35:15,608 --> 00:35:17,341
        They essentially
      got free education.

419
00:35:17,343 --> 00:35:19,676
    [man] where a community,
       state or nation...

420
00:35:19,678 --> 00:35:24,881
      Courageously invests
   a substantial share of its
    resources in education,

421
00:35:24,883 --> 00:35:30,119
   The investment invariable
returned in better business and
 the higher standard of living.

422
00:35:30,121 --> 00:35:35,290
    U.S. Was way in the lead
  in developing extensive mass
public education at every level.

423
00:35:37,226 --> 00:35:40,761
   By now, in more than half
the states, most of the funding

424
00:35:40,763 --> 00:35:43,497
  For the colleges comes from
  tuition, not from the state.

425
00:35:43,499 --> 00:35:45,699
    That's a radical change,

426
00:35:45,701 --> 00:35:48,368
     And that's a terrible
      burden on students.

427
00:35:48,370 --> 00:35:52,872
    It means that students,
    if they don't come from
     very wealthy families,

428
00:35:52,874 --> 00:35:55,374
     They're going to leave
    college with big debts.

429
00:35:55,376 --> 00:35:57,843
  And if you have a big debt,
        you're trapped.

430
00:35:57,845 --> 00:36:01,646
    I mean, maybe you wanted
  to become a public interest
            lawyer,

431
00:36:01,648 --> 00:36:04,281
    But you're going to have
to go into a corporate law firm

432
00:36:04,283 --> 00:36:07,250
    To pay off those debts,
     and by the time you're
      part of the culture,

433
00:36:07,252 --> 00:36:09,252
        You're not going
    to get out of it again.

434
00:36:09,254 --> 00:36:11,287
        And that's true
       across the board.

435
00:36:14,591 --> 00:36:18,460
  In the 1950s, it was a much
poorer society than it is today,

436
00:36:18,462 --> 00:36:25,199
But, nevertheless, could easily
  handle essentially free mass
       higher education.

437
00:36:25,201 --> 00:36:29,236
  Today, a much richer society
     claims it doesn't have
     the resources for it.

438
00:36:31,472 --> 00:36:34,507
    That's just what's going
   on right before our eyes.

439
00:36:34,509 --> 00:36:39,544
       That's the general
   attack on principles that,

440
00:36:39,546 --> 00:36:42,780
   Not only are they humane,
       they are the basis

441
00:36:42,782 --> 00:36:47,551
       Of the prosperity
  and health of this society.

442
00:37:15,912 --> 00:37:18,880
        If you look over
   the history of regulation,

443
00:37:18,882 --> 00:37:23,284
   Say, railroad regulation,
financial regulation and so on,

444
00:37:23,286 --> 00:37:25,986
  You find that quite commonly

445
00:37:25,988 --> 00:37:31,558
     It's either initiated
       by the economic...

446
00:37:31,560 --> 00:37:35,895
         Concentrations
   that are being regulated,
   or it's supported by them.

447
00:37:35,897 --> 00:37:42,234
 And the reason is because they
know that, sooner or later, they
 can take over the regulators.

448
00:37:46,272 --> 00:37:50,241
   And it ends up with what's
  called "regulatory capture."

449
00:37:50,243 --> 00:37:53,444
       The business being
      regulated is in fact
    running the regulators.

450
00:38:02,319 --> 00:38:06,754
  Bank lobbyists are actually
 writing the laws of financial
          regulation,

451
00:38:06,756 --> 00:38:08,889
    It gets to that extreme.

452
00:38:08,891 --> 00:38:11,758
 That's been happening through
      history and, again,

453
00:38:11,760 --> 00:38:15,928
 It's a pretty natural tendency
     when you just look at
   the distribution of power.

454
00:38:20,633 --> 00:38:25,970
     One of the things that
      expanded enormously
   in the 1970s is lobbying,

455
00:38:25,972 --> 00:38:31,809
     As the business world
      moved sharply to try
    to control legislation.

456
00:38:31,811 --> 00:38:36,780
 The business world was pretty
upset by the advances in public
      welfare in the '60s,

457
00:38:36,782 --> 00:38:39,382
In particular by richard nixon.

458
00:38:39,384 --> 00:38:43,052
 It's not too well understood,
  but he was the last new deal
           president,

459
00:38:43,054 --> 00:38:46,488
       And they regarded
    that as class treachery.

460
00:38:46,490 --> 00:38:51,359
   In nixon's administration,
  you get the consumer safety
          legislation,

461
00:38:51,361 --> 00:38:54,695
       Safety and health
 regulations in the workplace,

462
00:38:54,697 --> 00:38:56,997
   The epa, the environmental
       protection agency.

463
00:38:58,899 --> 00:39:01,033
    Business didn't like it,
           of course.

464
00:39:01,035 --> 00:39:03,935
They didn't like the high taxes.
They didn't like the regulation.

465
00:39:03,937 --> 00:39:07,872
  And they began a coordinated
 effort to try to overcome it.

466
00:39:07,874 --> 00:39:13,076
  Lobbying sharply increased.
 Deregulation began with a real
           ferocity.

467
00:39:15,946 --> 00:39:18,781
There were no financial crashes
   in the '50s and the '60s,

468
00:39:18,783 --> 00:39:23,018
     Because the regulatory
   apparatus of the new deal
      was still in place.

469
00:39:27,556 --> 00:39:32,492
  As it began to be dismantled
    under business pressure
    and political pressure,

470
00:39:32,494 --> 00:39:35,328
 You get more and more crashes.

471
00:39:43,904 --> 00:39:46,105
         And it goes on
    right through the years.

472
00:39:47,474 --> 00:39:50,676
    '70s it starts to begin.

473
00:39:50,678 --> 00:39:52,811
     '80s really takes off.

474
00:39:52,813 --> 00:39:56,347
 [announcer] congress was asked
    to approve federal loan
 guarantees to the auto company

475
00:39:56,349 --> 00:39:58,782
   Of up to one and one half
        billion dollars.

476
00:39:58,784 --> 00:40:00,784
        Now, all of this
         is quite safe

477
00:40:00,786 --> 00:40:03,887
      As long as you know
     the government's going
    to come to your rescue.

478
00:40:03,889 --> 00:40:07,357
       Take, say, reagan.
       Instead of letting
       them pay the cost,

479
00:40:07,359 --> 00:40:10,660
  Reagan bailed out the banks
   like continental illinois,

480
00:40:10,662 --> 00:40:13,929
      The biggest bailout
of american history at the time.

481
00:40:13,931 --> 00:40:18,867
   He actually ended his term
 with a huge financial crisis,
  the savings and loan crisis,

482
00:40:18,869 --> 00:40:25,907
[announcer] president bush today
 signed the 300 billion-dollar
 savings and loan bailout bill.

483
00:40:25,909 --> 00:40:30,611
    In 1999, regulation was
     dismantled to separate

484
00:40:30,613 --> 00:40:33,113
        Commercial banks
     from investment banks.

485
00:40:35,015 --> 00:40:38,017
      Then comes the bush
       and obama bailout.

486
00:40:38,019 --> 00:40:40,786
 [male announcer] bear stearns
     is running to the feds
        to stay afloat--

487
00:40:40,788 --> 00:40:44,689
  [female announcer] president
bush today defended the decision
    to bail out citigroup...

488
00:40:44,691 --> 00:40:49,460
   Fannie mae and freddie mac
have asked for a total of three
    billion dollars more...

489
00:40:49,462 --> 00:40:54,031
   The bailout could get much
  bigger, signaling deepening
 troubles for the u.S. Economy.

490
00:40:57,902 --> 00:40:59,836
           [chomsky]
      and they're building
        up the next one.

491
00:41:14,517 --> 00:41:20,087
   Each time, the taxpayer is
  called on to bail out those
    who created the crisis,

492
00:41:20,089 --> 00:41:24,825
     Increasingly the major
    financial institutions.

493
00:41:24,827 --> 00:41:27,160
    In a capitalist economy,
     you wouldn't do that.

494
00:41:27,162 --> 00:41:32,798
      That would wipe out
     the investors who made
       risky investments.

495
00:41:32,800 --> 00:41:36,101
   But the rich and powerful,
  they don't want a capitalist
            system.

496
00:41:36,103 --> 00:41:39,003
  They want to be able to run
       to the nanny state

497
00:41:39,005 --> 00:41:41,905
 As soon as they're in trouble,
       and get bailed out
        by the taxpayer.

498
00:41:41,907 --> 00:41:43,907
That's called "too big to fail."

499
00:41:45,709 --> 00:41:48,043
        There are nobel
     laureates in economics

500
00:41:48,045 --> 00:41:51,146
   Who significantly disagree
   with the course that we're
           following.

501
00:41:51,148 --> 00:41:54,482
   People like joe stiglitz,
    paul krugman and others,

502
00:41:54,484 --> 00:41:57,751
        And none of them
     were even approached.

503
00:41:57,753 --> 00:42:01,121
    The people picked to fix
   the crisis were those who
          created it,

504
00:42:01,123 --> 00:42:04,691
    The robert rubin crowd,
    the goldman sachs crowd.

505
00:42:04,693 --> 00:42:09,095
   They created the crisis...
     Are now more powerful
          than before.

506
00:42:09,097 --> 00:42:10,830
       Is that accident?

507
00:42:10,832 --> 00:42:15,668
 Not when you pick those people
  to create an economic plan.

508
00:42:15,670 --> 00:42:17,536
      I mean, what do you
       expect to happen?

509
00:42:21,974 --> 00:42:25,776
    Meanwhile, for the poor,
 let market principles prevail.

510
00:42:25,778 --> 00:42:27,978
     Don't expect any help
      from the government.

511
00:42:27,980 --> 00:42:30,714
 The government's the problem,
  not the solution, and so on.

512
00:42:30,716 --> 00:42:33,216
      That's, essentially,
        neo-liberalism.

513
00:42:33,218 --> 00:42:38,954
   It has this dual character
     which goes right back
      in economic history.

514
00:42:38,956 --> 00:42:41,122
 One set of rules for the rich.

515
00:42:41,124 --> 00:42:42,756
          Opposite set
     of rules for the poor.

516
00:42:45,793 --> 00:42:47,927
 Nothing surprising about this.

517
00:42:47,929 --> 00:42:50,229
          It's exactly
    the dynamics you expect.

518
00:42:50,231 --> 00:42:52,931
       If the population
     allows it to proceed,

519
00:42:52,933 --> 00:43:00,605
     Until the next crash,
   which is so much expected
     that credit agencies,

520
00:43:00,607 --> 00:43:03,574
         Which evaluate
      the status of firms,

521
00:43:03,576 --> 00:43:06,643
        Are now counting
    into their calculations

522
00:43:06,645 --> 00:43:11,914
   The taxpayer bailout that
   they expect to come after
        the next crash.

523
00:43:11,916 --> 00:43:16,785
      Which means that the
 beneficiaries of these credit
  ratings like the big banks,

524
00:43:16,787 --> 00:43:21,656
   They can borrow money more
   cheaply, they can push out
      smaller competitors,

525
00:43:21,658 --> 00:43:23,658
        And you get more
    and more concentration.

526
00:43:23,660 --> 00:43:25,826
      Everywhere you look,
policies are designed this way,

527
00:43:25,828 --> 00:43:29,696
       Which should come
   as absolutely no surprise
           to anyone.

528
00:43:29,698 --> 00:43:36,068
That's what happens when you put
power into the hands of a narrow
       sector of wealth,

529
00:43:36,070 --> 00:43:40,539
       Which is dedicated
to increasing power for itself,
     just as you'd expect.

530
00:43:59,558 --> 00:44:04,228
    Concentration of wealth
      yields concentration
      of political power,

531
00:44:04,230 --> 00:44:09,633
  Particularly so as the cost
    of elections skyrockets,

532
00:44:09,635 --> 00:44:14,804
   Which forces the political
    parties into the pockets
     of major corporations.

533
00:44:17,841 --> 00:44:22,644
      The citizens united,
this was January 2009, I guess,

534
00:44:22,646 --> 00:44:26,581
    That's a very important
    supreme court decision,

535
00:44:26,583 --> 00:44:29,283
      But it has a history
      and you got to think
       about the history.

536
00:44:30,685 --> 00:44:34,187
       The 14th amendment
   has a provision that says,

537
00:44:34,189 --> 00:44:39,792
   "no person's rights can be
 infringed without due process
            of law."

538
00:44:39,794 --> 00:44:43,662
    And the intent, clearly,
  was to protect freed slaves.

539
00:44:43,664 --> 00:44:46,898
    Says, "okay, they've got
  the protection of the law."

540
00:44:46,900 --> 00:44:51,068
  I don't think it's ever been
     used for freed slaves,
      if ever, marginally.

541
00:44:51,070 --> 00:44:55,639
Almost immediately, it was used
 for businesses, corporations.

542
00:44:55,641 --> 00:44:59,009
Their rights can't be infringed
  without due process of law.

543
00:44:59,011 --> 00:45:02,379
    So they gradually became
     persons under the law.

544
00:45:08,318 --> 00:45:11,887
        Corporations are
 state-created legal fictions.

545
00:45:14,857 --> 00:45:16,324
      Maybe they're good,
       maybe they're bad,

546
00:45:16,326 --> 00:45:19,327
    But to call them persons
     is kind of outrageous.

547
00:45:19,329 --> 00:45:23,064
  So they got personal rights
   back about a century ago,

548
00:45:23,066 --> 00:45:25,166
       And that extended
   through the 20th century.

549
00:45:27,669 --> 00:45:31,204
 They gave corporations rights
 way beyond what persons have.

550
00:45:32,406 --> 00:45:35,674
          So if, say,
         general motors
       invests in mexico,

551
00:45:35,676 --> 00:45:39,310
   They get national rights,
   the rights of the mexican
           business.

552
00:45:39,312 --> 00:45:44,213
   While the notion of person
    was expanded to include
         corporations,

553
00:45:44,215 --> 00:45:46,415
    It was also restricted.

554
00:45:46,417 --> 00:45:49,117
        If you take the
   14th amendment literally,

555
00:45:49,119 --> 00:45:54,688
   Then no undocumented alien
   can be deprived of rights,
      if they're persons.

556
00:45:57,725 --> 00:46:01,060
      Undocumented aliens
      who are living here
  and building your buildings,

557
00:46:01,062 --> 00:46:04,028
Cleaning your lawns, and so on,
     they're not persons...

558
00:46:06,831 --> 00:46:12,235
      But general electric
    is a person, an immortal
     super-powerful person.

559
00:46:12,237 --> 00:46:18,274
       This perversion of
    the elementary morality,

560
00:46:18,276 --> 00:46:20,943
    And the obvious meaning
of the law, is quite incredible.

561
00:46:23,346 --> 00:46:28,315
In the 1970s, the courts decided
that money is a form of speech.

562
00:46:30,551 --> 00:46:34,554
       Buckley vs. Valeo.
     Then you go on through
 the years to citizens united,

563
00:46:34,556 --> 00:46:37,557
   Which says that, the right
of free speech of corporations,

564
00:46:37,559 --> 00:46:41,227
        Mainly to spend
  as much money as they want,
    that can't be curtailed.

565
00:46:45,166 --> 00:46:50,836
  It means that corporations,
     which anyway have been
 pretty much buying elections,

566
00:46:50,838 --> 00:46:54,039
   Are now free to do it with
    virtually no constraint.

567
00:46:54,041 --> 00:46:58,276
   That's a tremendous attack
  on the residue of democracy.

568
00:47:02,848 --> 00:47:06,817
 It's very interesting to read
   the rulings, like justice
     kennedy's swing vote.

569
00:47:06,819 --> 00:47:09,452
        His ruling said,
    "well, look, after all,

570
00:47:09,454 --> 00:47:14,423
"cbs is given freedom of speech,
     they're a corporation,
 why shouldn't general electric

571
00:47:14,425 --> 00:47:16,491
    Be free to spend as much
      money as they want?"

572
00:47:18,293 --> 00:47:21,328
   I mean, it's true that cbs
  is given freedom of speech,

573
00:47:21,330 --> 00:47:25,498
   But they're supposed to be
  performing a public service.
          That's why.

574
00:47:25,500 --> 00:47:27,199
     That's what the press
       is supposed to be,

575
00:47:27,201 --> 00:47:29,301
      And general electric
    is trying to make money

576
00:47:29,303 --> 00:47:31,569
    For the chief executive
 and some of the shareholders.

577
00:47:34,172 --> 00:47:38,375
  It's an incredible decision,
    and it puts the country
      in a position where

578
00:47:38,377 --> 00:47:43,980
   Business power is greatly
 extended beyond what it always
              was.

579
00:47:43,982 --> 00:47:45,614
        This is part of
      that vicious cycle.

580
00:47:45,616 --> 00:47:49,884
   The supreme court justices
   are put in by reactionary
          presidents,

581
00:47:49,886 --> 00:47:53,053
    Who get in there because
  they're funded by business.

582
00:47:53,055 --> 00:47:54,521
 It's the way the cycle works.

583
00:48:20,213 --> 00:48:23,949
     There is one organized
   force which traditionally,

584
00:48:23,951 --> 00:48:29,553
        Plenty of flaws,
    but with all its flaws,
it's been in the forefront of...

585
00:48:29,555 --> 00:48:33,323
  Efforts to improve the lives
   of the general population.

586
00:48:33,325 --> 00:48:34,924
    That's organized labor.

587
00:48:34,926 --> 00:48:37,359
      It's also a barrier
     to corporate tyranny.

588
00:48:37,361 --> 00:48:44,065
So, it's the one barrier to this
 vicious cycle going on, which
does lead to corporate tyranny.

589
00:48:53,441 --> 00:48:57,310
         A major reason
     for the concentrated,

590
00:48:57,312 --> 00:49:01,047
Almost fanatic attack on unions,
      on organized labor,

591
00:49:01,049 --> 00:49:03,282
          Is they are
     a democratizing force.

592
00:49:05,018 --> 00:49:08,353
  They provide a barrier that
    defends workers' rights,

593
00:49:08,355 --> 00:49:10,221
        But also popular
       rights generally.

594
00:49:17,662 --> 00:49:22,966
      That interferes with
   the prerogatives and power
        of those who own

595
00:49:22,968 --> 00:49:24,934
    And manage the society.

596
00:49:26,202 --> 00:49:29,470
  I should say that anti-union

597
00:49:29,472 --> 00:49:33,674
 Sentiment in the United States
   among elites is so strong

598
00:49:33,676 --> 00:49:37,310
      That the fundamental
     core of labor rights,

599
00:49:37,312 --> 00:49:41,480
      The basic principle
      in the international
      labor organization,

600
00:49:41,482 --> 00:49:44,216
        Is the right of
       free association,

601
00:49:44,218 --> 00:49:46,418
        Which would mean
   the right to form unions.

602
00:49:46,420 --> 00:49:49,053
       The u.S. Has never
         ratified that,

603
00:49:49,055 --> 00:49:54,624
   So I think the u.S. May be
  alone among major societies
        in that respect.

604
00:49:54,626 --> 00:49:58,728
   It's considered so far out
  of the spectrum of american
           politics,

605
00:49:58,730 --> 00:50:00,362
     It literally has never
        been considered.

606
00:50:00,364 --> 00:50:03,098
          [clamoring]

607
00:50:03,100 --> 00:50:07,735
 Remember, the u.S. Has a long
 and very violent labor history

608
00:50:07,737 --> 00:50:10,070
        As compared with
    comparable societies...

609
00:50:12,640 --> 00:50:15,308
     But the labor movement
     had been very strong.

610
00:50:15,310 --> 00:50:21,414
   By the 1920s, in a period
    not unlike today, it was
       virtually crushed.

611
00:50:21,416 --> 00:50:27,119
  [man] a truck drivers strike
  was climaxed by severe riots
     with many casualties.

612
00:50:27,121 --> 00:50:33,290
   Open warfare rages through
the streets of the city as 3,000
union pickets battle 700 police.

613
00:50:33,292 --> 00:50:36,192
     Guns, tear gas, clubs
    and fists bring injuries

614
00:50:36,194 --> 00:50:39,328
    To more than 80 persons
  and caused the death of two.

615
00:50:44,133 --> 00:50:46,233
        By the mid '30s,
    it began to reconstruct.

616
00:50:49,738 --> 00:50:55,475
     He himself was rather
   sympathetic to progressive
          legislation

617
00:50:55,477 --> 00:50:58,244
  That would be in the benefit
   of the general population,

618
00:50:58,246 --> 00:51:00,713
     But he had to somehow
         get it passed.

619
00:51:00,715 --> 00:51:06,718
  So he informed labor leaders
and others, "force me to do it."

620
00:51:06,720 --> 00:51:13,024
    What he meant is, go out
   and demonstrate, organize,
            protest,

621
00:51:13,026 --> 00:51:15,326
  Develop the labor movement.

622
00:51:15,328 --> 00:51:17,494
        When the popular
    pressure is sufficient,

623
00:51:17,496 --> 00:51:19,662
  I'll be able to put through
   the legislation you want.

624
00:51:19,664 --> 00:51:25,033
     I am not for a return
 to that definition of liberty,

625
00:51:25,035 --> 00:51:29,070
      Under which for many
      years a free people

626
00:51:29,072 --> 00:51:36,076
      Were being gradually
  regimented into the service
      of a privileged few.

627
00:51:36,078 --> 00:51:41,147
     I prefer that broader
     definition of liberty.

628
00:51:41,149 --> 00:51:45,117
[chomsky] so, there was kind of
  a combination of sympathetic
          government,

629
00:51:45,119 --> 00:51:48,786
      And by the mid-'30s,
    very substantial popular
           activism.

630
00:51:50,488 --> 00:51:54,791
 There were industrial actions.
  There were sit-down strikes,

631
00:51:54,793 --> 00:51:59,228
        Which were very
   frightening to ownership.

632
00:51:59,230 --> 00:52:04,199
     You have to recognize
  the sit-down strike is just
    one step before saying,

633
00:52:04,201 --> 00:52:06,568
     "we don't need bosses.
 We can run this by ourselves."

634
00:52:13,708 --> 00:52:15,408
   And business was appalled.

635
00:52:15,410 --> 00:52:19,378
  You read the business press,
     say, in the late '30s,

636
00:52:19,380 --> 00:52:23,382
       They were talking
       about the "hazard
     facing industrialists"

637
00:52:23,384 --> 00:52:26,818
   And the "rising political
     power of the masses,"

638
00:52:26,820 --> 00:52:28,486
   Which has to be repressed.

639
00:52:28,488 --> 00:52:31,388
      Things were on hold
  during the second world war,

640
00:52:31,390 --> 00:52:34,457
     But immediately after
     the second world war,
     the business offensive

641
00:52:34,459 --> 00:52:38,494
        Began in force.
     The taft-hartley act.

642
00:52:38,496 --> 00:52:41,864
The taft-hartley act was written
     for only one purpose,

643
00:52:41,866 --> 00:52:47,836
To restore justice and equality
 in labor-management relations.

644
00:52:47,838 --> 00:52:53,107
 Then mccarthyism was used for
  massive corporate propaganda
  offensives to attack unions.

645
00:52:54,409 --> 00:52:56,576
      It increased sharply
    during the reagan years.

646
00:52:56,578 --> 00:52:59,712
I mean, reagan pretty much told
      the business world,

647
00:52:59,714 --> 00:53:04,483
"if you want to illegally break
organizing efforts and strikes,
           go ahead."

648
00:53:04,485 --> 00:53:07,118
     They are in violation
          of the law,

649
00:53:07,120 --> 00:53:10,488
   And if they do not report
   for work within 48 hours,

650
00:53:10,490 --> 00:53:14,825
 They have forfeited their jobs
    and will be terminated.

651
00:53:14,827 --> 00:53:19,696
 It continued in the '90s and,
 of course with george w. Bush,
   it went through the roof.

652
00:53:19,698 --> 00:53:25,268
By now, less than 7% of private
  sector workers have unions.

653
00:53:30,640 --> 00:53:35,810
  The effect is that the usual
 counter-force to an offensive

654
00:53:35,812 --> 00:53:40,414
 By our highly class-conscious
 business class has dissolved.

655
00:53:43,918 --> 00:53:47,186
       Now, if you're in
      a position of power,

656
00:53:47,188 --> 00:53:50,556
      You want to maintain
      class-consciousness
         for yourself,

657
00:53:50,558 --> 00:53:52,424
        But eliminate it
        everywhere else.

658
00:53:52,426 --> 00:53:55,627
          You go back
      to the 19th century,

659
00:53:55,629 --> 00:53:59,263
      In the early days of
   the industrial revolution
     in the United States,

660
00:53:59,265 --> 00:54:02,866
      Working people were
    very conscious of this.

661
00:54:02,868 --> 00:54:06,636
         They, in fact,
    overwhelmingly regarded

662
00:54:06,638 --> 00:54:10,706
       Wage labor as not
         very different
         from slavery,

663
00:54:10,708 --> 00:54:13,508
     Different only in that
       it was temporary.

664
00:54:13,510 --> 00:54:17,244
 In fact, it was such a popular
  idea that it was the slogan
    of the republican party.

665
00:54:18,546 --> 00:54:22,348
     That was a very sharp
      class-consciousness.

666
00:54:22,350 --> 00:54:24,883
    In the interest of power
         and privilege,

667
00:54:24,885 --> 00:54:28,519
 It's good to drive those ideas
     out of people's heads.

668
00:54:28,521 --> 00:54:31,755
  You don't want them to know
that they're an oppressed class.

669
00:54:31,757 --> 00:54:35,525
   So, this is one of the few
  societies in which you just
    don't talk about class.

670
00:54:35,527 --> 00:54:39,195
      In fact, the notion
    of class is very simple.

671
00:54:39,197 --> 00:54:41,430
     Who gives the orders?
       Who follows them?

672
00:54:41,432 --> 00:54:43,598
 That basically defines class.

673
00:54:43,600 --> 00:54:47,268
 It's more nuanced and complex,
    but that's basically it.

674
00:55:05,653 --> 00:55:09,255
 The public relations industry,
   the advertising industry,

675
00:55:09,257 --> 00:55:11,490
       Which is dedicated
     to creating consumers,

676
00:55:11,492 --> 00:55:14,860
It's a phenomena that developed
    in the freest countries,

677
00:55:14,862 --> 00:55:19,598
           In britain
     and the United States,
and the reason is pretty clear.

678
00:55:19,600 --> 00:55:22,968
      It became clear by,
       say, a century ago

679
00:55:22,970 --> 00:55:27,305
  That it was not going to be
       so easy to control
    the population by force.

680
00:55:27,307 --> 00:55:28,472
 Too much freedom had been won.

681
00:55:30,241 --> 00:55:33,676
Labor organizing, parliamentary
labor parties in many countries,

682
00:55:33,678 --> 00:55:36,578
     Women starting to get
   the franchise, and so on.

683
00:55:36,580 --> 00:55:38,880
   So, you had to have other
  means of controlling people.

684
00:55:38,882 --> 00:55:41,449
     And it was understood
         and expressed

685
00:55:41,451 --> 00:55:47,587
    That you have to control
   them by control of beliefs
         and attitudes.

686
00:55:47,589 --> 00:55:51,724
     Well, one of the best
     ways to control people
     in terms of attitudes

687
00:55:51,726 --> 00:55:58,363
  Is what the great political
   economist thorstein veblen
called "fabricating consumers."

688
00:56:04,602 --> 00:56:07,637
 If you can fabricate wants...

689
00:56:07,639 --> 00:56:12,975
 Make obtaining things that are
  just about within your reach
      the essence of life,

690
00:56:12,977 --> 00:56:16,344
  They're going to be trapped
    into becoming consumers.

691
00:56:18,714 --> 00:56:21,549
     You read the business
      press in say, 1920s,

692
00:56:21,551 --> 00:56:27,487
    It talks about the need
      to direct people to
the superficial things of life,

693
00:56:27,489 --> 00:56:30,623
 Like "fashionable consumption"
     and that'll keep them
        out of our hair.

694
00:56:32,559 --> 00:56:36,762
     You find this doctrine
    all through progressive
     intellectual thought,

695
00:56:36,764 --> 00:56:38,430
     Like walter lippmann,

696
00:56:38,432 --> 00:56:41,332
     The major progressive
        intellectual of
       the 20th century.

697
00:56:43,702 --> 00:56:49,439
  He wrote famous progressive
  essays on democracy in which
   his view was exactly that.

698
00:56:49,441 --> 00:56:51,908
      "the public must be
      put in their place,"

699
00:56:51,910 --> 00:56:54,810
    So that the responsible
     men can make decisions

700
00:56:54,812 --> 00:56:57,612
      Without interference
  from the "bewildered herd."

701
00:57:00,449 --> 00:57:02,583
   They're to be spectators,
       not participants.

702
00:57:02,585 --> 00:57:05,419
    Then you get a properly
     functioning democracy,

703
00:57:05,421 --> 00:57:10,824
    Straight back to madison
 and on to powell's memorandum,
           and so on.

704
00:57:10,826 --> 00:57:17,830
  And the advertising industry
    just exploded with this
         as its goal...

705
00:57:17,832 --> 00:57:19,064
     Fabricating consumers.

706
00:57:25,571 --> 00:57:28,539
       And it's done with
     great sophistication.

707
00:57:28,541 --> 00:57:30,741
 [announcer] you don't see many
    wild stallions anymore.

708
00:57:30,743 --> 00:57:35,111
 He's one of the last of a wild
    and very singular breed.

709
00:57:35,912 --> 00:57:39,147
   Come to marlboro country.

710
00:57:39,149 --> 00:57:41,582
     The ideal is what you
     actually see today...

711
00:57:43,718 --> 00:57:47,921
       Where, let's say,
  teenage girls, if they have
   a free Saturday afternoon,

712
00:57:47,923 --> 00:57:50,623
        Will go walking
     in the shopping mall,

713
00:57:50,625 --> 00:57:52,791
       Not to the library
       or somewhere else.

714
00:57:53,926 --> 00:57:57,628
       The idea is to try
      to control everyone,

715
00:57:57,630 --> 00:58:01,097
   To turn the whole society
    into the perfect system.

716
00:58:03,967 --> 00:58:09,104
    Perfect system would be
   a society based on a dyad,
            a pair.

717
00:58:09,106 --> 00:58:12,507
        The pair is you
    and your television set,

718
00:58:12,509 --> 00:58:15,009
        Or maybe now you
       and the internet,

719
00:58:15,011 --> 00:58:19,713
   In which that presents you
   with what the proper life
           would be,

720
00:58:19,715 --> 00:58:21,915
      What kind of gadgets
        you should have.

721
00:58:21,917 --> 00:58:24,651
    And you spend your time
and effort gaining those things,

722
00:58:24,653 --> 00:58:27,520
     Which you don't need,
 and you don't want, and maybe
   you'll throw them away...

723
00:58:29,256 --> 00:58:32,023
     But that's the measure
       of a decent life.

724
00:58:34,860 --> 00:58:38,729
    What we see is in, say,
   advertising on television,

725
00:58:38,731 --> 00:58:42,666
      If you've ever taken
      an economics course,
         you know that

726
00:58:42,668 --> 00:58:48,805
Markets are supposed to be based
 on "informed consumers making
       rational choices."

727
00:58:48,807 --> 00:58:52,608
    Well, if we had a system
  like that, a market system,

728
00:58:52,610 --> 00:58:57,245
   Then a television ad would
consist of, say, general motors

729
00:58:57,247 --> 00:59:01,215
Putting up information, saying,
"here's what we have for sale."

730
00:59:01,217 --> 00:59:03,917
        That's not what
      an ad for a car is.

731
00:59:03,919 --> 00:59:06,619
        And ad for a car
     is a football hero...

732
00:59:06,621 --> 00:59:11,690
   An actress, the car doing
     some crazy thing like,

733
00:59:11,692 --> 00:59:13,692
      Going up a mountain
         or something.

734
00:59:13,694 --> 00:59:19,897
     The point is to create
    uninformed consumers who
 will make irrational choices.

735
00:59:19,899 --> 00:59:22,566
    That's what advertising
         is all about,

736
00:59:22,568 --> 00:59:28,004
 And when the same institution,
         the pr system,

737
00:59:28,006 --> 00:59:30,272
        Runs elections,
    they do it the same way.

738
00:59:36,545 --> 00:59:39,146
      They want to create
    an uniformed electorate,

739
00:59:39,148 --> 00:59:43,617
   Which will make irrational
  choices, often against their
         own interests,

740
00:59:43,619 --> 00:59:47,820
    And we see it every time
   one of these extravaganzas
          take place.

741
00:59:49,856 --> 00:59:51,957
   Right after the election,

742
00:59:51,959 --> 00:59:57,095
  President obama won an award
 from the advertising industry

743
00:59:57,097 --> 00:59:59,097
For the best marketing campaign.

744
00:59:59,099 --> 01:00:01,966
    It wasn't reported here,
      but if you go to the
 international business press,

745
01:00:01,968 --> 01:00:05,069
   Executives were euphoric.

746
01:00:05,071 --> 01:00:11,808
 They said, "we've been selling
candidates, marketing candidates
        like toothpaste

747
01:00:11,810 --> 01:00:15,611
       Ever since reagan,
    and this is the greatest
     achievement we have."

748
01:00:15,613 --> 01:00:18,947
     I don't usually agree
       with sarah palin,

749
01:00:18,949 --> 01:00:24,718
  But when she mocks what she
calls the "hopey-changey" stuff,
          she's right.

750
01:00:24,720 --> 01:00:29,322
   First of all, obama didn't
    really promise anything.
    That's mostly illusion.

751
01:00:29,324 --> 01:00:32,091
  You go back to the campaign
rhetoric and take a look at it.

752
01:00:32,093 --> 01:00:36,795
 There's very little discussion
 of policy issues, and for very
          good reason,

753
01:00:36,797 --> 01:00:42,133
Because public opinion on policy
    is sharply disconnected

754
01:00:42,135 --> 01:00:46,670
    From what the two-party
      leadership and their
    financial backers want.

755
01:00:48,607 --> 01:00:54,744
   Is focused on the private
      interests that fund
        the campaigns...

756
01:00:56,179 --> 01:00:58,146
        With the public
      being marginalized.

757
01:01:21,636 --> 01:01:26,239
  One of the leading political
   scientists, martin gilens,
     came out with a study

758
01:01:26,241 --> 01:01:29,175
    Of the relation between
        public attitudes
       and public policy.

759
01:01:29,177 --> 01:01:36,014
What he shows is that about 70%
  of the population has no way
     of influencing policy.

760
01:01:36,016 --> 01:01:38,249
     They might as well be
    in some other country...

761
01:01:39,651 --> 01:01:40,884
  And the population knows it.

762
01:01:43,954 --> 01:01:50,225
      What it's led to is
   a population that's angry,
frustrated, hates institutions.

763
01:01:51,927 --> 01:01:56,029
        It's not acting
     constructively to try
      to respond to this.

764
01:01:58,098 --> 01:02:01,033
        There is popular
   mobilization and activism,

765
01:02:01,035 --> 01:02:03,101
  But in very self-destructive
          directions.

766
01:02:04,903 --> 01:02:08,405
      It's taking the form
      of unfocused anger,

767
01:02:08,407 --> 01:02:11,841
    Attacks on one another,
   and on vulnerable targets.

768
01:02:11,843 --> 01:02:13,842
      That's what happens
      in cases like this.

769
01:02:17,413 --> 01:02:21,816
   It is corrosive of social
relations, but that's the point.

770
01:02:21,818 --> 01:02:26,120
  The point is to make people
   hate and fear each other,

771
01:02:26,122 --> 01:02:28,122
       And look out only
        for themselves,

772
01:02:28,124 --> 01:02:29,790
     And don't do anything
        for anyone else.

773
01:02:34,061 --> 01:02:38,831
      One place you see it
  strikingly is on April 15th.

774
01:02:38,833 --> 01:02:42,167
April 15th is kind of a measure,
  the day you pay your taxes,

775
01:02:42,169 --> 01:02:45,370
       Of how democratic
        the society is.

776
01:02:45,372 --> 01:02:49,140
        If a society is
       really democratic,

777
01:02:49,142 --> 01:02:52,243
      April 15th would be
     a day of celebration.

778
01:02:52,245 --> 01:02:55,045
        It's a day when
 the population gets together,

779
01:02:55,047 --> 01:03:01,751
  Decides to fund the programs
 and activities that they have
  formulated and agreed upon.

780
01:03:01,753 --> 01:03:04,820
What could be better than that?
  So, you should celebrate it.

781
01:03:04,822 --> 01:03:06,221
     It's not the way it is
     in the United States.

782
01:03:06,223 --> 01:03:09,023
    It's a day of mourning.

783
01:03:09,025 --> 01:03:13,994
 It's a day in which some alien
  power that has nothing to do
           with you,

784
01:03:13,996 --> 01:03:17,197
    Is coming down to steal
     our hard-earned money,

785
01:03:17,199 --> 01:03:19,499
 And you do everything you can
  to keep them from doing it.

786
01:03:21,168 --> 01:03:24,170
   That is a kind of measure
    of the extent to which,

787
01:03:24,172 --> 01:03:27,839
      At least in popular
    consciousness, democracy
    is actually functioning.

788
01:03:29,007 --> 01:03:30,340
 Not a very attractive picture.

789
01:03:48,458 --> 01:03:52,327
   The tendencies that we've
     been describing within
       american society,

790
01:03:52,329 --> 01:03:57,065
    Unless they're reversed,
 it's going to be an extremely
         ugly society.

791
01:03:57,067 --> 01:04:00,101
       I mean, a society
        that's based on

792
01:04:00,103 --> 01:04:05,072
    Adam smith's vile maxim,
        "all for myself,
   nothing for anyone else."

793
01:04:10,311 --> 01:04:14,314
       A society in which
     normal human instincts
          and emotion

794
01:04:14,316 --> 01:04:18,551
    Of sympathy, solidarity,
    mutual support, in which
     they're driven out...

795
01:04:22,122 --> 01:04:25,157
   That's a society so ugly,
   I don't even want to know
       who'd live in it.

796
01:04:25,159 --> 01:04:27,325
I wouldn't want my children to.

797
01:04:32,064 --> 01:04:36,934
       [chomsky on tape]
   if the society is based on
   control by private wealth,

798
01:04:36,936 --> 01:04:40,570
   It will reflect the values
that it, in fact, does reflect.

799
01:04:43,373 --> 01:04:47,309
    The value that is greed,
   and the desire to maximize
         personal gain,

800
01:04:47,311 --> 01:04:54,949
   Now, any society, a small
society based on that principle
  is ugly, but it can survive.

801
01:04:54,951 --> 01:04:58,852
     A global society based
  on that principle is headed
    for massive destruction.

802
01:05:04,190 --> 01:05:09,260
   I don't think we're smart
       enough to design,

803
01:05:09,262 --> 01:05:14,597
       In any detail what
   a perfectly just and free
     society would be like.

804
01:05:14,599 --> 01:05:17,199
      I think we can give
        some guidelines

805
01:05:17,201 --> 01:05:22,404
     And, more significant,
     we can ask how we can
  progress in that direction.

806
01:05:26,876 --> 01:05:31,446
    John dewey, the leading
     social philosopher in
     the late 20th century,

807
01:05:31,448 --> 01:05:34,882
      He argued that until
       all institutions,

808
01:05:34,884 --> 01:05:38,919
  Production, commerce, media,

809
01:05:38,921 --> 01:05:43,089
    Unless they're all under
    participatory democratic
            control,

810
01:05:43,091 --> 01:05:47,092
        We will not have
         a functioning
      democratic society.

811
01:05:49,061 --> 01:05:52,930
 As he put it, "policy will be
  the shadow cast by business
         over society."

812
01:05:57,402 --> 01:05:59,069
  Well, it's essentially true.

813
01:06:10,180 --> 01:06:14,316
   Where there are structures
    of authority, domination
         and hierarchy,

814
01:06:14,318 --> 01:06:19,454
   Somebody gives the orders,
      somebody takes them,
 they are not self-justifying.

815
01:06:19,456 --> 01:06:23,424
They have to justify themselves.
  They have a burden of proof
            to meet.

816
01:06:30,531 --> 01:06:34,634
Well, if you take a close look,
  usually you find they can't
      justify themselves.

817
01:06:34,636 --> 01:06:37,169
    If they can't, we ought
    to be dismantling them.

818
01:06:38,938 --> 01:06:42,006
  Trying to expand the domain
     of freedom and justice

819
01:06:42,008 --> 01:06:46,076
    By dismantling that form
   of illegitimate authority.

820
01:06:46,078 --> 01:06:49,079
         And, in fact,
    progress over the years,

821
01:06:49,081 --> 01:06:53,216
     What we all thankfully
    recognized as progress,
      has been just that.

822
01:06:53,218 --> 01:06:57,687
[chomsky on tape] the way things
change is because lots of people
   are working all the time.

823
01:06:57,689 --> 01:07:02,091
    They're working in their
communities, in their workplace,
 or wherever they happen to be,

824
01:07:02,093 --> 01:07:08,430
    And they're building up
the basis for popular movements,
which are going to make changes.

825
01:07:08,432 --> 01:07:11,065
   That's the way everything
 has ever happened in history.

826
01:07:12,934 --> 01:07:15,602
           Take, say,
      freedom of speech...

827
01:07:15,604 --> 01:07:18,705
  One of the real achievements
      of american society,

828
01:07:18,707 --> 01:07:22,141
It's first in the world in that.
It's not in the bill of rights.

829
01:07:22,143 --> 01:07:24,510
 It's not in the constitution.

830
01:07:24,512 --> 01:07:30,048
 Freedom of speech issues began
  to come to the supreme court
   in the early 20th century.

831
01:07:31,383 --> 01:07:34,718
    The major contributions
       came in the 1960s.

832
01:07:34,720 --> 01:07:38,488
    One of the leading ones
    was a case in the civil
        rights movement.

833
01:07:38,490 --> 01:07:41,557
         Well, by then,
         you had a mass
       popular movement,

834
01:07:41,559 --> 01:07:44,359
  Which was demanding rights,

835
01:07:44,361 --> 01:07:47,562
     Refusing to back down.
      And in that context,

836
01:07:47,564 --> 01:07:51,632
The supreme court did establish
     a pretty high standard
     for freedom of speech.

837
01:07:51,634 --> 01:07:54,335
 Or take, say, women's rights.

838
01:07:54,337 --> 01:07:57,838
  Women also began identifying
     oppressive structures,

839
01:07:57,840 --> 01:08:02,642
    Refusing to accept them,
     bringing other people
       to join with them.

840
01:08:02,644 --> 01:08:06,145
Well, that's how rights are won.

841
01:08:06,147 --> 01:08:10,149
    To a non-trivial extent,
     I've also spent a lot
    of my life in activism.

842
01:08:10,151 --> 01:08:15,320
 That doesn't show up publicly,
but, actually, I'm not terribly
         good at it...

843
01:08:15,322 --> 01:08:21,726
 [chomsky on tape] I think that
 we can see quite clearly some
   very, very serious defects

844
01:08:21,728 --> 01:08:25,362
   And flaws in our society,
     our level of culture,
       our institutions,

845
01:08:25,364 --> 01:08:29,599
 Which are going to have to be
 corrected by operating outside
        of the framework

846
01:08:29,601 --> 01:08:31,434
   That is commonly accepted.

847
01:08:31,436 --> 01:08:34,203
  I think we're going to have
 to find new ways of political
            action.

848
01:08:37,140 --> 01:08:40,641
But the activists are the people
who have created the rights that
           we enjoy.

849
01:08:42,176 --> 01:08:44,477
They're not only carrying out...

850
01:08:44,479 --> 01:08:47,646
 Policies based on information
    that they're receiving,

851
01:08:47,648 --> 01:08:49,714
     But also contributing
     to the understanding.

852
01:08:49,716 --> 01:08:51,682
           Remember,
   it's a reciprocal process.

853
01:08:54,252 --> 01:08:56,419
     You try to do things.
           You learn.

854
01:08:56,421 --> 01:08:58,187
      You learn about what
       the world is like,

855
01:08:58,189 --> 01:09:02,124
        That feeds back
      to the understanding
        of how to go on.

856
01:09:05,495 --> 01:09:07,596
  There's huge opportunities.

857
01:09:07,598 --> 01:09:11,465
   It is a very free society,
 still the freest in the world.

858
01:09:12,900 --> 01:09:16,435
      Government has very
  limited capacity to coerce.

859
01:09:16,437 --> 01:09:20,906
   Corporate business may try
   to coerce, but they don't
      have the mechanisms.

860
01:09:20,908 --> 01:09:25,243
 So, there's a lot that can be
    done if people organize,
   struggle for their rights

861
01:09:25,245 --> 01:09:28,445
  As they've done in the past,
  and can win many victories.

862
01:09:29,747 --> 01:09:31,280
     [audience applauding]

863
01:09:41,290 --> 01:09:46,694
     Well, my close friend
        for many years,
    the late howard zinn...

864
01:09:49,330 --> 01:09:51,230
  To put it in his words that,

865
01:09:51,232 --> 01:09:56,935
 "what matters is the countless
 small deeds of unknown people,

866
01:09:56,937 --> 01:10:02,306
       Who lay the basis
   for the significant events
      that enter history."

867
01:10:04,475 --> 01:10:07,210
    They're the ones who've
    done things in the past.

868
01:10:07,212 --> 01:10:09,278
    They're the ones who'll
  have to do it in the future.

