Why is inequality rising? | CNBC Explains

The gap between the rich and the poor is rising in nearly every region of the world. CNBC’s Xin En Lee explores why inequality is growing.
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[@kevinwijaya9533]

Thanos will help you to make it more equal

[@tonylin983]

Kevin Wijaya with the help one tiny little snappy snap

[@thomaspavlosisaakidis5963]

dude, i was eating!

[@VuthyVa]

a comprehensive video on inequality

[@dcarmichiel]

death the greatest equalizer of all and the progressive kunts seem to worship it

[@allaboutlife2837]

You gave great , innovative and sensible example of showing cake as it will connect with more common people 👍❤️❤️

[@victornderu143]

I am beginning to like this girls videos more and more.

[@isaiasprestes]

She is amazing!! well done job!

[@rihitjamb3757]

You are so gender biased

[@paullee8375]

A shout out to young ppl below 18 yrs old, who are living in the USA and other developed countries with high income inequality: relocate yourself to emerging market countries, study there (because in the States, you would end up with high education debt before even starting to work), and then stay there for good. If the system can't fix for you, you have to figure out to fix your life for the better than. We are not a tree.

[@nikolasb6929]

The fact that they only discussed taxation as a solution is the whole reason nobody has a clue how to solve this problem in the first place. The issue isn’t that we aren’t taxing enough but rather how these people got their wealth in the first place. There will always be natural inequality due to luck, biology, and different work ethics but what we have is artificial inequality. People just take advantage of property to compound their wealth at the cost of workers and consumers. People making money without producing anything is a zero sum game. The real solution is to eliminate the ability for people to make money just by having property. You can still make money by managing property but you don’t make more just because you have more.

[@amarnathjha8319]

This is #1 our internal problem. Everybody contribute in economy. Wealth concentration in hands of 1% will lead us to another Civil War. We middle class must oppose it. Middle Class is disappearing. Pay of lawyer, Doctor, engineer, accountants, teachers are actually decreasing, while they make technology companies and all kinds of companies rich.

[@sharkfinn4]

Unions are basically the norm here in Sweden as well. It's so standard that I remember needing a sec once I realized it's not like that everywhere. Same with high tax rates, resulting in things like free public heath care and overall modern public transport systems.

[@dayalahemanthreddy3447]

In the next video , please tell us what is Green banking.

[@lothean2099]

Sad, there will always be the poor amongst us.

[@chrisfloyd7316]

Stronger unions and better social programs. We know the solutions, billionaires just don't want us to do it

[@andrewwong5670]

Taxation is the only way to reduce inequality. However, too much taxation could lead to the emigration of the rich to the other tax haven countries and cause even slump in country's progress. It is really hard to tackle the inequality. The only way is to invest in education of impoverished child and count on them to innovate something that can enhance country's revenue.

[@ermytanio7111]

Imagine if all 100 people are rich whose willing to bake the pie😅

[@jalpansheth1649]

Keep uploading such good videos 🙌

[@adrianhutabarat1736]

I am all for decreasing inequality, but the graph in 1:20 is not scaled correctly, the gap between 0%-45 is the same between 45%-50%.

[@OffshoreCitizen]

Equality is a pure utopia. People have different skills, some work more, some less. Those who work smarter will definitely have more financial gains than those who don't. For lots of business owners *money* is a massive incentive to move forward. Financial gains are also massive incentives for technological, medical and other areas development. What would happen if we started taxing these companies excessively? Well, they would simply leave and go to another country where they are welcome. Then, instead of their original country, the second country would benefit gains of the company. This is already happening with many successful companies around the world. Taxing the rich will just cause the rich to move somewhere else. And money needs to come from somewhere. Ideally, any country wants the money to stay within its borders so the people can benefit from it.

[@shauryarathore9368]

Please make a video on importance of US Dollar in world trade and how US Dollar is such a powerful currency

[@armanke13]

Yeah, this is fundamental. Why the world measure everything in usd?

[@FEDisGangster]

Very simple, US is the biggest economy of the world for over 100 years. So their currency is accepted as most trusted.

[@armistice2358]

Well very soon us won't be the strongest.

[@JustAGuyProduction]

Conservatives say to themselves "I could be that 1%, so I'd better vote to lower taxes on the slight chance I do become a billionaire."

[@JohnLee-fr6pi]

And that's an excellent mindset. Instead of looking for handouts they look to EARN. It's not that difficult to be in the 1%. $32,400 a year is how much you have to make to be in the 1% of earners in the world. $421,926 to be in the 1% of earners in the United States. $770,000 in net worth to be in the 1% in the world. $10,374,030 in net worth to be in the 1% in the United States. These are achievable numbers so work hard and work smart and you will get there. Also, stop fucking complaining because it won't help. Good luck.

[@khuramzahid]

The people who support capitalism say that the pie should get bigger, but the people who support socialism say that the slices should get more even.

[@NDG0XIII]

They go hand in hand. You can’t have one without the other

[@khuramzahid]

@@NDG0XIII True. Sometimes innovation comes at the expense of equality.

[@padmakaranj]

Thank You Team💐

[@বাঙালি15]

Please make vedio on Indian economic slowdown. Love from India .

[@juansantiagocuadra3672]

The program did not even mention how money can bend the rules (laws) thru lobbyists, appoint and use both politicians and judges thru political contributions, and make education harder and more expensive which is equivalent to burning books while keeping the masses without critical thinking.

[@robertleejameswelch8383]

Still missing details. Government has never been good at being financially efficient. If you have noticed, when government grows, so does inequality. Not everybody has the same goals or discipline. You have a lot of "now" thinkers and then, you have the people that look ahead, have self control and do not give in to impulsive behavior. Mental inequality.

[@fidgdet4403]

Government restrictions on trade, government corporations founded to exercise monopolies, private firms receiving subsidies, and government restrictions on private businesses. The effect of all of these policies has always been to increase the wealth and privilege of some groups at the expense of others. In Britain, Richard Cobden's Anti-Corn-Law League was one of the most successful free-trade movements in history. Cobden explicitly pointed out how government policy, through tariffs, drove up food prices in order to benefit wealthy land owners at the expense of workers. Needless to say, this was a cause of income inequality. These sorts of regulations, of course, persist today. Any law or regulation that limits competition, limits trade, or subsidizes a group or industry naturally increases inequality and benefits some more than others. More often than not, these laws are written and enforced in ways that favor the politically powerful. In the wake of the 2008 financial crisis, for example, federal banking regulation has likely been responsible for a decline in small community bankswhile huge banks prosper and consolidate market share. With monetary policy, the effects often appear in a more subtle fashion. Nevertheless, inflating the money supply favors some groups - usually wealthy ones - over others. This is due to the fact that newly created money - whether created by central banks or private banks - does not enter the economy evenly. As recent empirical evidence has shown, in recent years central-bank policy in the United States has resulted in an economy where the groups that benefit most from ultra-low interest rates and loose monetary policy have tended to be well-capitalized large firms and the financial sector. Meanwhile, small businesses, the non-financial sector, and riskier start-ups have lost out. At the same time, those firms and institutions that receive the money first are able to spend that money before prices adjust to reflect the inflated money supply. Other people and institutions aren't so lucky. And then there is the role monetary policy plays in the boom-bust cycle, and its resulting unemployment, malinvestment, and dislocations. As the Fed's own research shows, declines in wealth and income growth have been larger for some groups than for others as these policies have been put in place. This is then made worse when the "solutions" for economic busts include bailouts and the "too-big-to-fail" doctrines. The benefits of these, naturally, tend to accrue to the largest, most politically well-connected firms.

[@yongshankoh7344]

agreed, but would like to add that the inflation due to monetary supply isn't as straightforward as you think. In terms of monetary supply, most of it did not go into capital goods, but the stock market, otherwise you would have seen inflation skyrocket. In addition as the economic recovery did not result in any significant wage growth, one can even say that the people who are income poor and due to poor income accumulate capital at a much slower rate did not get to benefit from the boom in stock prices as poor people also can lend less money from banks because of their lack of assets and lower income streams.

[@fidgdet4403]

@@yongshankoh7344 Mabye there purchasing power increased?

[@JackWang-ly4cw]

if more and more countries still believe the USA mode is mighty, without considering their own situation, the gap between poor and rich will be larger and larger.

[@DrLife-jg2xv]

The major problem is The Tax Havens where the richest people hide their money.

[@sortsvane]

Do you like the car in your profile picture. I guess you do. Rich don't hide their money. The simply leverage LEGAL loopholes to trim down taxes SIGNIFICANTLY which leaves them more money on the table to afford the car you've put on your profile picture. The problem with the middle class is being that they don't have enough capital to begin with to utilise these gaping legal holes to their advantage. Nothing is a secret. Nobody hides anything.

[@DrLife-jg2xv]

Why are you so upset if I said something against them. Maybe probably you are one of those kind who stash their wealth in tax Havens. And by the way Danish Joshi that's our money which they have stashed in Tax Havens.

[@freezerfreezer9097]

We already saw what happens when overtax the rich. They just move to another country. And they take their businesses with them. And of course the jobs that go with them . Taxing them is not the answer. The answer is four more people just get off the damn ass and be an entrepreneur. Or just get an education and a good job. People live here in America and bitching about being poor but they're usually living in a apartment that's five times the size of 1 in a third world country. Yet they still bitch

[@sortsvane]

@@DrLife-jg2xv I get deeply hurt when someone says 'its our money'. I mean wtf? It's THEIR money because you GAVE it to them . Only way for 'them' to have money in the first place is by creating a product/service/scheme to lure 'you' Into giving them money. This simple econ101 is what most people fail to understand. The different b/w the 1./. and the 99./. is that 'they' produce exponentially more than 'you'. Only way for you to stop the rich from getting richer is by stopping consuming things and hence stop the fucking capitalism itself . Which seems extremely stupid by the very sound of it. So stop spitting this nonsense about the top '1./.' ☮️.

[@DrLife-jg2xv]

@ Danish Joshi Let me tell you that Taxes are important to the economic prosperity of a nation and the world. Taxes keep the money in circulation.Taxes also bridge the monetary gap between the rich and the poor.What Tax Havens do is that they break the circulation of wealth in the society. What you are doing is that you are justifying them for keeping their money in Tax Havens.Not everyone who has money in Tax Havens has made his money through providing a service / product.

[@pressurizer1]

Income inequality is basically caused by the inequality of the value of work. The more valuable your product or service the more customers you'd get. Equal opportunity does not always mean equal output.

[@MC-gs6cz]

CNBC doing an objective good reporting again. It is really weird that the Wall Street types loves CNBC and only select information they want to hear, which is that riches getting rich is good.

[@jzk2020]

Loving the headlights 5:05

[@huguesjouffrai9618]

The problem is not inequality but poverty. China has become very inequal but it has also become very rich and the ones who benefitted the most from it are the poorest who escaped extreme poverty by the hundreds of millions. Trying to obtain an equal repartition of wealth is in most cases not a good way to make people richer: the main reason why South America is so poor is because they've been trying to tackle inequality before trying to become competitive. Using huge government intervention, they became corrupt, poorly run and poor countries (relative to their ressources). On the other hand Asian countries such as Japan, South Korea, Taiwan, singapore, China and even a South American country such as Chile have done the opposite: focus on economic competitiveness, don't worry too much about inequalities and when the economy is working make everybody benefit from it. This proves much more efficient at making everybody richer, even for the poorest (better be poor in Taiwan or South Korea than in Brasil). That's a bit simplified but overall, tackling inequality should never be the goal of a government: tackling corruption and poverty should be! And I'd rather be poor in the US than in a more equal but poorer country like Spain or Greece.

[@MrRealitybite]

A vote for the right is a vote for inequality. Vote wisely

[@theultimatereductionist7592]

More conservatives, more politicians pandering to politically correct conservatives = more wealth & political power inequality.

[@albicool1994]

Imf-Mission impossible force

[@marksn4020]

What a lovely journalist and channel

[@naphtal]

It's either unequal wealth, or equal poverty. Take your pick.

[@eightBitAdventures]

Especiallly Singapore, Malaysia and Indonesia

[@micahisaac]

The pie is not finite. Inequality is silly premise.

[@prashantvicky]

We cannot have an egalitarian society based on the idea of equality, equality in terms of opportunities,income, happiness, well-being, satisfaction unless we remove the intrinsic element of selfishness from the human conscience. Avarice is inherent to human wisdom,the problem is that of all the animals, humans are , unfortunately or fortunately,the most intelligent and capable of producing things and of entertaining ideas. This intelligence paves the way for them being greedy and egotistic. If you want to attain equality for all,make each and every Homo Sapiens a fool, unable to differentiate between profit and gain.

[@ammumalu6532]

What factors contribute to inequality in income distribution?

[@Ben-jq5oo]

The rich being allowed to dodge federal taxation by keeping their large capital balances and profits offshore, in tax havens, rather than being forced to use local banks and thus paying a fair tax contribution at home ?

[@lemonjump3694]

Plz make a video on...."will religion be a factor in the development of world....or is it fading away"

[@TheLeester97]

Denmark is such a bad example.... Taxes are 55%, so yeah if you're willing to give more than half of what you earn to the government then yeah that will work, but 55% is absolutely insane, you're working more for the government than you are for yourself and your family

[@chinaexpat1827]

Im hungry now

[@eduardocajias5626]

Very good video. Marvellous explained!

[@rambohere6398]

What flavor is that pie made up of btw ?

[@harleywoolford5247]

Inequality is simply a consequence of being allowed to live relatively free lives. Is there equality in running speeds, academic performance or musical ability? No there is not. So why should there be much equality with regards to productive ability?

[@cr8xtremeCaRnAgE]

its a good video and easy to debate upon. But having said that you cannot implement it. Reason, top 1% people's investment started in the age of high risk no reward, take any example of big company (except for recent tech like facebook as they simply became popular due to mass media) which invested and then diversified over the period of time to reach where they are now. At this point they are simply exploiting the financial policies of their country which for matter of fact is level playing field for everyone with brute force(money) that they have. And not to mention they fund political parties for their campaigns hence lobbying is going to be present. Point is, in reality nothing significant can be done about it

[@Z__K217]

Milton Friedman - I suspect he was the target of this piece. Kind regards.

[@MrNaysh]

Sigh...If money only grew on trees....Wait! We do have the technology. Monsanto should genetically engineer a tree that makes money and sell it. Then we all pay Monsanto back with the money from the tree, a genius solution.

[@pressurizer1]

If money grows on trees, they'll only be as valuable as the leaves

[@PlayMyMusicPlaylist]

Why? 1. There is no cap on income 2. Hoardering property unlimited drying up supply then build new house and sell it overprice. 3. Tax cut of corporation believing trickle down effect

[@Slyfox750]

So many in the comment section are woefully mislead ... inequality isn't necessarily bad. If I become $100 wealthier today and you become $100,000 wealthier today, then were are both winning. Capitalism & low taxes are the solution.

[@rushdiahmad2435]

Well , this problems we brought upon ourselves.We just complaints so far not much have been done to address the issues..

[@m.s.1753]

Tax should be equal for everyone. I’m in favour of a flat tax across the board.

[@Margubkhan]

Hey It would be nice to know about IMF. What is it? who owns it? is it under control of some government?

[@lolitathefrenchfry3479]

its the international monetary fund, all countries have a stake in it. it was created as part of the bretton woods insitutions, essentially a bunch of neoliberal insitutions that supports( on a broad scale) policies such as austerity measures, lower taxes and free trade. these policies stands of course in contrast to what this video said about inequality. However its good( from my point of view) to see that the IMF is beginning to seriously consider tax increases as part of economic policies.

[@sagarbasnet9726]

nic explantion

[@dragonhold4]

If we start taxing the rich disproportionately, I don't blame them for trying to find any means to evade. We should instead incentivize every company, big/small, to pay their workers fairly. Give tax breaks or credits to every company that has a reasonable Gini index. Government should relax pressure on those companies trying to do right; Punish those whose inequality can be described with exponents.

[@yongshankoh7344]

in today's globalised economy, in countries which have no barriers of entry for labour, the supply and demand equation for labour tend to result in low pay. I think the issue with payment of C suit top management is that it is much easier for them to demand higher wages because of their personal relationships with the board. How is the government going to regulate that???

[@dragonhold4]

Lookup Gini index - Don't regulate; provide incentives/disincentives. - Create trade agreements that raise labor standards abroad. - Let science and subsequent innovations become the dominant market force

[@arielcerros3301]

Why Honduras the most unequal country in America?

[@james.walkerUSA]

And the poor are better off today than the middle class was 150 years ago. Loans don't make poor people rich. Loans make lenders rich. Trade increases overall productivity and world peace. There is no fixed pie. Anyone can start building wealth as they learn to live off of less than they earn. For some it's harder, but we don't stay stagnate through our lives. Have a plan.

[@user-ue5ju6us8e]

Look up Yaron Brooks on capitalism and socialism, inequality is not the problem. It’s about making poor people rich rather than making the rich poor. I would have to disagree with this videos agenda with its opinions that’s not factual based (if you look at history which adapted tax policies that she is advocating for)

[@Testing725]

why is russia never considered when comparing economics?

[@timothe9418]

because Russia sucks

[@binodtharu7157]

He was not the first one to write capital

[@rnjbond]

So the bottom half only get half the money?

[@simontay1187]

Simple, a small family of 4 compares to a big family of 8. In term of quality and sufficiency, which family is easier in family managements. Is that pie mentioned to be shared by that huge explosive populations, imagine what proportions of each stomach to be filled. So, small is not neccessarily bad.

[@simontay1187]

So, how to deal with this problem..COMMUNISM!

[@CarlosRodriguez-ym8jw]

In America your poor because of choice or lazyness. I was a broke ass person struggling to make ends meet. Instead of complaining or protesting, I grabbed a book and learned about investing, the stock market, interest rates, hedgefunds, etc... Fast forward 8 years, I no longer live paycheck to paycheck, I can be without a job and still earn 50k a year from my investments. In the next 8 years itll be more than double because I keep investing more and more using my job money and return of investments. I'm set to retire at 40 even earlier if I wished. All because I decided to grab a book and learn.

[@millerrepin4452]

Oh really which book did you read

[@CarlosRodriguez-ym8jw]

@@millerrepin4452 The first one I read was "The Intelligent Investor" by Graham. After that I went on reading other books and buying college books about economy and how it works.

[@kuthao3855]

wow ... this is clearly painful to watch ... income inequality comes into being when those that owns the means of production wants to hoard that money and use it for their own benefit and sidelines those that helped made them money .. typical to blame other people instead of looking at yourself

[@270103023]

I see 6 slices :P

[@Mountainman524]

Tax rich and give poor

[@naphtal]

I'm sorry, but I don't know any American that "dreams" of being a McDonald's cook.

[@MrReyviz]

But the pie is getting bigger, you get a smaller piece of a bigger pie

[@alexandersorto7411]

"Good tax policies help government to redistribute wealth for a more equal society" that pure communism

[@seanbrown8920]

What kind of pie was that?

[@thehomeconstructiontoolcha857]

KZbin Thomas Sowell.... ... Life is not Fair

[@recktmedz]

tapi netijen indo lebih seneng ama hosip dan jadi hater..

[@xanderjames8682]

Despite being 700 pages it became a best seller. people who like reading "am i a joke to you"

[@panzertracks]

the GOP doesn’t help in closing the gap

[@ankitbhatti4287]

just because poor are stupid that doesn't make rich evil

[@DoomCycle]

Define stupid

[@keoki1978]

Taxing the rich won’t solve inequality, stopping automation and outsourcing will. Quality education is a good idea but back in the 90’s, almost all high schools were like an extension of a trade school. You could essentially get a certificate for all sorts of different fields. Computer programming was getting popular when I graduated. Today, most schools dropped those classes and the pipeline from high school to college started.

[@adinnaikhwani6255]

Lol, now, i know from where the source of prabowo information about "1 per cent rich equal to 99 per cent poor".... Yeah, critics, but he can't explain it well

[@isocrate27]

At least they can eat pie.

[@BahujanResearch]

create a video about India's Barack Obama, Mayawati

[@kapilmalu1475]

This video has many graphs which is cussing this to be non-understood

[@pressurizer1]

The capitalists' deal is Matthew 25:29.

[@danteozierim.d.3961]

If we were all equal we would be ants!! Some smart cookie would spray us!

[@amanforyou9493]

👍 👍

[@TrinhStudios]

Most workers: "We want more money and more holidays! Now or we stop working!" Company: "ow shit what do we do now?" Other countries: "don't worry comrade, just start your company here, low wages, low taxes" Most workers: wtf thats illegal "pikachu surprise face"

[@ELS-tone]

The so-called “fixed-pie model” is not a viable model, and yet this is literally what she’s showing

[@freddyt55555]

Implementation of UBI is inevitable.

[@JohnLee-fr6pi]

UBI = inflation

[@freddyt55555]

@@JohnLee-fr6pi Inflation is desirable. It forces the idle rich to spend their money.

[@JohnLee-fr6pi]

@@freddyt55555 Stop the WELFARE state. Go out and EARN. The government isn't your mother. You're all grown adults. Stop living in your mom's basement(government housing) and asking her for money(welfare checks=UBI). Stop punishing the rich for making money by taxing them more to subsidize the lazy poor. If you give all adults $1000 a month for no reason you will get INFLATION. Prices will go up because everyone knows that all adults have $1000 for free and they will charge more knowing that. And I BET I fucking bet that the money ends up back in the "rich" people's hands anyway. Do you know why? Because you dumb fucks will still be buying shit you don't need anyway. How fucking dense are you people?

[@comradepolarbear6920]

@@JohnLee-fr6pi narcissist

[@danielsteinberg7416]

God, just implement popular capitalism and ownership society with compulsory savings additionally: wealth (property, shares, other sorts of capital) generation participated by each and every person can do much more than "dividing" the pie.

[@karthikeyanm.v8381]

Tax the rich not middle class

[@matty0000]

karthikeyan M.V you realize without those “mean rich people” the working class wouldn’t have as many jobs right?

[@icallgreens89]

Hah!! She said b`o'ogie man.

[@jigyanshushrivastava6153]

Wow

[@JohnLee-fr6pi]

Why are these people holding up signs and being proud to be the 99%? I would be going home and trying hard to become the 1%.

[@holycrapchris]

The video portrays the rising inequality in the US compared to Europe as a Bad Thing. But it's a sign of business success: new, fast-growing companies are being founded in the US. Where are the tech successes born in Europe. Spotify.... anything else? Founding companies is a great way to become a billionaire. Look at the list of richest people. Notice that the Americans are largely "new money", compared to inheritors in Europe. The US system is better at making new rich people. Having rich people will result in inequality. As the video points out, even with the 1%'s income growing, the rest are _not_ losing (just growing less quickly).

[@MrMountain707]

Tax the rich

[@infamouseagle111]

Pie analogy was bad as most analogies are

[@nickboyko1017]

This is so dumb I can’t even.

[@jeradatherton]

Shouldn’t the focus be put on teaching people how to earn higher income/assets rather than government forcing distribution? For example, Dave Ramsey is solving the problem by teaching financial principles for life including staying out of debt and making money work for you. It seems like a real problem to force some to give their money up for others that are not earning it. Capitalism is working, but maybe we can all learn better ways of getting in there and earning our own slice!

[@user-xd1kl9ic2m]

china…

[@Atipat12]

SAD

[@fouadzouiter7692]

Storia vera morto cammino

[@philipagtuca5486]

Why? Because freedom.