What's the Economy for, Anyway?

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In this film produced by John de Graaf of AFFLUENZA> fame, ecological economist Dave Batker presents a humorous, edgy, factual, timely and highly-visual monologue about the American economy today, challenging the ways we measure economic success--especially the Gross Domestic Product--and offering an answer to the question: What's the Economy for, Anyway?

Using Gifford Pinchot's idea that the economy's purpose is 'the greatest good for the greatest number over the longest run,' Batker compares the performance of the U.S. economy with that of other industrial countries in terms of providing a high quality of life, fairness and ecological sustainability, concluding that when you do the numbers, we come out near the bottom in nearly every category.

Batker shines a humorous light on such economic buzzwords as 'productivity,' and 'consumer sovereignty,' while offering ideas for 'capitalism with a human face,' a new economic paradigm that meets the real needs of people and the planet.

'Visionary...Now more than ever, it seems, we need to think about the economy, not as a force of nature but as something made by (and hopefully for) people...[What's the Economy for, Anyway?] does not just critique, it also imagines solutions--solutions that are working for millions of people in other countries...The film gives me the sense that we could control our economic and ecological destinies to a degree we never imagined.' New Labor Forum

'This is the news that everyone needs: you don't have to live in exactly the world you grew up in. What's the Economy for, Anyway? shows that there are other possibilities, and they're well worth considering. It's completely great!' Bill McKibben, visiting professor at Middlebury College, Author of Deep Economy and The End of Nature

'What's the Economy for, Anyway? is the best documentary I have ever seen. I marvel at how the producers were able to take such a complicated subject and present it in such a compelling and funny way. Watch and be inspired about how best to restore the American Dream.' Monique Tilford, Your Money or Your Life and former Director, Center for a New American Dream

'GDP has long been an inadequate measure of how the American economy fares. While many follow the GDP, few know its origins or the implications of using such a simple measure to try and capture what's important to the quality of our lives. What's the Economy for, Anyway? takes on the critical question: how should we measure the success of the American economy? Readily accessible and immensely informative, this film will transform how many students and teachers alike think about the American economy.' Jody Heymann, MD, PhD, Director of the McGill Institute for Health and Social Policy

'What's the Economy for, Anyway? is an extremely accessible analysis of the current economic crisis that is perfect for classroom use. What is unique about the film is that it looks at the causes from a variety of perspectives. It is short enough that it can easily be viewed in one class session, but its segmented format makes the film especially versatile. You can stop at each section break for class discussion and mini lectures to help connect the material to current course content. The segment feature also makes it possible to show only a few of the clips that are most relevant to your class needs. In addition to the economy, the film easily connects to a variety of topics including sustainability, time use, globalization, culture, resource management and more. The presentation style is witty and poignant offering valuable insights for both the novice and expert in these fields.' Melinda Messineo, Associate Professor of Sociology, Ball State University

'An irreverent and engaging film that will show you just [how] gross our measures of Gross Domestic Product really are. It's well designed for classroom use as well as a general audience. Send a copy to your favorite (and unfavorite) economists and to everyone you know who would like to make our economy a better place to live.' Nancy Folbre, Professor of Economics, University of Massachusetts, Author, The Invisible Heart

'What's the Economy for, Anyway? asks a deep question that we all should be asking. This film provides us with insight and extensive data about how our economy got to where it is today. Why is the gap between rich and poor higher than ever? How is it that citizens in other countries have better healthcare than we do and pay less? What happened to our social safety net? Be prepared to want to watch the film a second time and take notes. You may look at our economy in a whole new way from here on.' Joan Blades, co-Founder, MOVEON.org and MomsRising.org and co-Author, The Motherhood Manifesto

'Will resonate with anyone who recognizes that a new day is dawning in America. The fundamental message of valuing human capital, social capital and natural capital in addition to traditional capital both on our corporate balance sheets and in our personal lives is incredibly important and even more timely.

Every US leader in government, the private sector, organized labor, the professions, and academia would benefit from viewing, showing and further distributing this remarkable film. For that matter, this easily understood film should be seen by all American citizens who care about the future and quality of their lives and the lives of generations of Americans to come.' Richard A. Lippin, MD, Former Corporate Medical Director of the ARCO Chemical Company and Founder of the International Arts-Medicine Association (IAMA)

'What's the Economy for, Anyway? was made with compassion for its audience. It's a terrific length that invites discussion, rather than wearing viewers down. There are dozens of films out about the current economic and ecological crisis that operate on the assumption that if we pile on more bad news, people will become engaged. They are wrong. But WTEFA? presents facts, entertains, explains and engages us rather than sinks us. Somehow in 40 delightful minutes it offers a holistic and timely critique of our market worshipping model of economic growth and its supreme cost to our planet and the quality of our lives. It's a must-view tool for teach-ins, classrooms and community screenings. WTEFA? reminds us that the purpose of our economy is to serve people, not for people to serve the economy. The economy is subordinate to our human aspirations to celebrate life, be together with one another, and care for our families, neighbors and all of creation.' Chuck Collins, Senior Fellow, Institute for Policy Studies, co-Founder, United for a Fair Economy and Author, The Moral Measure of the Economy

'An entertaining and humorous account of the ways in which the U.S. economy doesn't necessarily work to make our lives better. This film should cause people to think about the economy in a very different way.' Dean Baker, economist and co-Director of The Center for Economic and Policy Research, Author, Plunder and Blunder

'Smart and funny, right up the alley of today's students. I recommend it as an introduction to any discussion of the use of time and a balanced life.' Cathy O'Keefe, Professor of Leisure and Therapeutic Recreation, University of South Alabama

'Gripping...Watching Batker's film, I learned a lot. Is the US really the only Western country that doesn't have a law guaranteeing paid vacation time? Yes. Is the US really one of four nations in the world that has no federally mandated paid maternity leave? Yes. Are Americans more likely to be depressed and/or suicidal than Europeans? Yes.' Kathy Newman, Professor of Literary and Cultural Studies, Carnegie Mellon University, Working-Class Perspectives

'Important, complex economic and social realities demystified! What's the Economy for, Anyway? presents them in clear, simple language with plenty of humor. After a screening at my church, everyone stayed to talk for over an hour, well longer than either my expectation, or the film's running time! The evening precipitated just the kind of community conversation I had hoped for.' Reverend Carla Pryne, Episcopal priest, Church of the Ascension, Seattle

'Nothing about the economy seems to make sense these days, and it's time for all of us to pay more attention. What's the Economy for, Anyway? tells us to think twice about the myths that take on the aura of fact just because they get repeated over and over again. Our economy isn't just numbers and charts and complicated formulas. It's how we create and spend money and it shapes our quality of life. The choices we personally make with our money - and the choices our government officials make with our money - reflect the values and priorities we have. What's the Economy for, Anyway? takes 40 minutes of your time. It might change the way you live for the next 40 years.' Gael Tarleton, research scientist, University of Washington and Seattle Port Commissioner

'The Whidbey Institute at Chinook just recently showed the film, What's the Economy for, Anyway? as the capstone for our six week Lyceum series, 'What's it Worth?: Environmental Economics and Puget Sound.' ...I would recommend this film as a discussion centerpiece to a wide range of groups--environmental, academic, community, activist, spiritual--for its ease of explanation and facility to instruct and grow questions.' Ruth Pittard, Director, The Whidbey Institute

'I showed What's the Economy for, Anyway? as part of a film series. The film drew out the best in the audience. There were questions, comments, and suggestions for practical action. I have no doubt that the film would be a great springboard for discussion in any group interested in examining our economic system in a probing way. It deals with very serious material in a lighthearted fashion. It seems to me that this contributes to the quality of the discussion, nudging it away from confrontation and toward exploration.' Johnny Palka, Professor Emeritus of Biology, University of Washington

'Important, complex economic and social realities are demystified in What's the Economy for, Anyway?. Ecological economist Dave Batker presents these challenges to the current way of life in the U.S. in clear, simple language with plenty of humor. This timely documentary is edgy, factual and even poignant...Academic and public libraries will want to purchase to encourage viewers to reflect on our values and priorities as a nation, community, and individuals.' Susan Awe, Parish Memorial Library for Business and Economics, University of New Mexico, Educational Media Reviews Online

'There couldn't be a more timely and critical topic to address than our national--and, indeed, the world's--economy. This quirky yet effective program does so in an easily understood manner...Utilizing a delightful variety of vintage films/stills, crisp and to-the-point contemporary video, expert interviews, effective graphics, and entertaining campy inserts, the film packs a great deal of information into a relatively short presentation.' Dwain Thomas, formerly Lake Park High School, School Library Journal

'Raises thought-provoking concerns' Library Journal

'Thanks to a subversively amusing style that will likely make the topic more palatable...This winning primer on the economy is recommended.' Video Librarian

'What's clearly explained in the clever segments of this feature length documentary is how the quality of life does not fit in the working dynamics of the economy...Do you want more time for family, friends, community, healthful activity, plain ol' free time? Where does all the time go? The time watching What's the Economy for, Anyway? is time well spent regardless of how it registers with GDP.' Chuck Jaffee, The Union

Citation

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Main credits

De Graaf, John (Producer)
De Graaf, John (Director)
De Graaf, John (Screenwriter)
Batker, David (Producer)

Other credits

Photographer/editor, David Fox; music, Michael Bade.

MARC Record See Worldcat record

Keywords

ecological economics, Dave Batker, GDP, society's well-being, workable alternatives, American economy, Gross Domestic Product, Gifford Pinchot, greatest good, greatest number, quality of life, fairness, ecological sustainability, productivity, consumer sovereignty, capitalism with a human face, new paradigm, real needs, financial crisis, health, happiness, security, time,"What's the Economy for, Anyway?",Bullfrog Films,doc,env

WEBVTT

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[typewriter keys clacking]

00:00:09.400 --> 00:00:10.600
- The economy:

00:00:10.633 --> 00:00:13.400
it was issue number one
in the last election,

00:00:13.433 --> 00:00:15.867
sending Barack Obama
to the White House

00:00:15.900 --> 00:00:18.033
with a mandate to fix it.

00:00:18.067 --> 00:00:21.167
It dominates conversation:

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bailouts...

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food prices...

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foreclosures...

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credit squeeze.

00:00:27.967 --> 00:00:31.033
We\'re all in it together.

00:00:41.233 --> 00:00:43.100
Hi, I\'m Dave Batker.

00:00:43.133 --> 00:00:46.000
I\'m just an ordinary American
like, you know,

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Joe the plumber.

00:00:47.200 --> 00:00:48.867
[cheers and applause]

00:00:48.900 --> 00:00:51.333
But I\'m also...

00:00:51.367 --> 00:00:53.067
[whispering]
an economist.

00:00:53.100 --> 00:00:54.367
I\'ve worked for the World Bank.

00:00:54.400 --> 00:00:56.967
[crowd booing]

00:00:57.000 --> 00:00:59.533
Okay, I\'ve also worked
for Greenpeace.

00:00:59.567 --> 00:01:02.067
[crowd booing]

00:01:02.100 --> 00:01:04.033
And I want to talk to you

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about this economy
everybody\'s talking about.

00:01:07.000 --> 00:01:08.867
What\'s it for, anyway?

00:01:08.900 --> 00:01:10.367
And is it working?

00:01:10.400 --> 00:01:12.100
Can it work better?

00:01:12.133 --> 00:01:13.233
You\'ve probably heard about

00:01:13.267 --> 00:01:15.833
how some people
measure economic success.

00:01:15.867 --> 00:01:17.667
Wall Street checks its stocks.

00:01:17.700 --> 00:01:20.233
Are they up or down?

00:01:20.267 --> 00:01:24.733
The government checks inflation,
unemployment, housing starts,

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consumer confidence.

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But the king of all economic
measures is the GDP.

00:01:31.700 --> 00:01:34.567
That\'s shorthand
for the gross domestic product.

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The grosser it gets,

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the better we assume
the economy to be.

00:01:38.833 --> 00:01:41.167
But what is the GDP, anyway?

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- The GDP
is the total market value

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of all final goods and services

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produced in a country
in a given year.

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[cheers and applause]

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- GDP measures what we made
here this year

00:02:06.000 --> 00:02:07.600
and paid for.

00:02:07.633 --> 00:02:10.133
If we pay, then GDP goes up,

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unless we\'re paying
for stuff made somewhere else.

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We buy a lot of that.

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But it doesn\'t count,
at least not for us.

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There are other things
that don\'t count either,

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like volunteering
in my community.

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It\'s a waste of time
as far as the GDP is concerned.

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So is that daily walk
I try to take

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and the time I spend
with my son,

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unless I buy him stuff.

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That counts.

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But remember
that big oil spill in Alaska?

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Made you want to cry, didn\'t it?

00:02:40.200 --> 00:02:44.667
But the GDP was laughing
all the way to the bank,

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\'cause first, there was
money spent to clean it up,

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then those huge legal bills.

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The spill added more to the GDP

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than if the oil had made it
safely to the refinery.

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Seriously.

00:03:00.000 --> 00:03:02.700
Maybe Bobby Kennedy
said it best:

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- It measures everything
in short,

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except that
which makes life worthwhile.

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And it can tell us
everything about America,

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except why we are proud
that we are Americans.

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- Once upon a time,

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our country had no idea
how much stuff we made,

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and nobody cared...

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until the Great Depression,

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when our government adopted
national economic goals

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and needed a way of measuring
their achievement.

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The economist Simon Kuznets
laid out the GDP in 1934.

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During World War II,
it was an important tool

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in measuring
how many guns, tanks,

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and bombs we were building.

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Even then,
Kuznets warned against

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making too much of his measure.

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But Kuznets is history.

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Not the GDP, though.

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With all the attention it gets,

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you\'d think boosting the GDP
is what the economy is for.

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That\'s what a lot of economists
will tell you too.

00:04:00.267 --> 00:04:03.233
- The economy\'s purpose
is to produce

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more and more goods
and services that people...

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- Doesn\'t matter what they are.

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If money is spent on them,
they must be goods,

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and the more of them,
the better.

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What the consumer wants
the consumer gets.

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Economists call that
\"consumer sovereignty.\"

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Buyer knows best.

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Case closed.

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Or is it?

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Actually,
there\'s an American tradition

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that\'s older than GDP.

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About a hundred years ago,

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Gifford Pinchot became
the first director

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of the U.S. Forest Service.

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He wasn\'t a wild-eyed radical.

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He was a...

00:04:41.300 --> 00:04:43.633
[whispering]
Republican.

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Pinchot believed that
the purpose of the economy

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was the greatest good
for the greatest number

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over the longest run.

00:04:51.733 --> 00:04:53.067
Think about it.

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Take the greatest good.

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What do you think that means?

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- The good life to me is having
a job that\'s in your field

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that you\'re passionate about.

00:05:02.233 --> 00:05:04.967
- To me,
family is very important.

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- And always having
someone there

00:05:06.833 --> 00:05:09.167
to help you through hard times.

00:05:09.200 --> 00:05:10.467
- Having good health.

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- Nothing burning down
financially,

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having everything stable.

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- It\'s all about
quality of life, isn\'t it?

00:05:18.500 --> 00:05:20.200
Pursuit of happiness.

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Money\'s a part of that.

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Stuff is a part of that,

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but only part.

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Family, friends, health
matter more.

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So how are we doing?

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Now, we all know
the United States

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has one humungous GDP.

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It\'s totally awesome, really.

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I mean, no one else comes close.

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- Doh!
- What?

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Well, who cares
about Luxembourg, anyway?

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We\'re the Toys \"R\" Us
of the world.

00:05:56.767 --> 00:05:58.733
We\'ve got monster houses,

00:05:58.767 --> 00:06:02.667
luxury tanks,
huge flat-screen TVs.

00:06:02.700 --> 00:06:04.100
So cool.

00:06:05.233 --> 00:06:07.300
We are number one, right?

00:06:07.333 --> 00:06:08.633
Let\'s check it out.

00:06:08.667 --> 00:06:11.433
See how we stack up
with other rich countries,

00:06:11.467 --> 00:06:14.233
you know, apples to apples.

00:06:15.233 --> 00:06:17.300
Okay, you ready?

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Let\'s go.

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Let\'s start with babies.

00:06:32.400 --> 00:06:35.867
We love our babies, don\'t we?

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I\'m not so sure.

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We\'re 42nd in the world when
it comes to infant mortality.

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- Where\'d you get that?

00:06:43.733 --> 00:06:46.333
- It\'s what the CIA says.

00:06:46.367 --> 00:06:51.400
Yes, you heard it right,
the Central Intelligence Agency,

00:06:51.433 --> 00:06:54.200
42nd.

00:06:54.233 --> 00:06:57.867
Now, we spend a lot on our kids.

00:06:57.900 --> 00:06:59.933
But compared to kids
in other countries,

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they\'re a bit deprived.

00:07:01.800 --> 00:07:04.200
One thing all those
other countries do

00:07:04.233 --> 00:07:07.333
is give moms
and in most cases dads

00:07:07.367 --> 00:07:11.667
some guaranteed paid time off
when they have a baby.

00:07:11.700 --> 00:07:13.367
Now, get this.

00:07:13.400 --> 00:07:15.300
I\'m not making this up.

00:07:15.333 --> 00:07:17.533
Only four countries in the world

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don\'t guarantee at least
some paid time off for moms.

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We\'re one of them.

00:07:22.933 --> 00:07:24.600
The other three are -

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Are you ready for this?

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Swaziland, Liberia,
and Papua New Guinea.

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That\'s it.

00:07:31.800 --> 00:07:35.400
Canada lets parents split
a whole year off with pay.

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That\'s good for babies.

00:07:37.267 --> 00:07:41.167
Studies show paid family leave
means healthier kids

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who learn better,
socialize better,

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and get in trouble less.

00:07:45.567 --> 00:07:49.467
It actually saves tons of money
in children\'s health costs.

00:07:49.500 --> 00:07:50.600
But we don\'t do it.

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I know exactly
what you\'re thinking.

00:07:54.300 --> 00:07:55.633
Kids don\'t work.

00:07:55.667 --> 00:07:56.933
They don\'t pay taxes.

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And they don\'t vote either.

00:08:00.500 --> 00:08:02.367
So how about us grown-ups?

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How\'s our health?

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We try really hard.

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Do you know how much we spend
each year on health care?

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- $1,200 a year.

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- $1,500 to $2,000 a year.

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- 300 bucks a month.

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- It\'s more than $7,000 a year
per person.

00:08:21.700 --> 00:08:25.967
That\'s 2 trillion bucks,
two Iraq wars.

00:08:26.000 --> 00:08:30.233
Soon we\'ll be spending
one dollar out of every five

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on health care.

00:08:31.800 --> 00:08:36.467
20% of that whopping GDP of ours
for health care alone.

00:08:37.667 --> 00:08:39.800
What about other rich countries?

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What do they spend?

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About half as much as we do,
on average.

00:08:44.300 --> 00:08:46.900
Scrooges, aren\'t they?

00:08:46.933 --> 00:08:48.467
You get what you pay for.

00:08:48.500 --> 00:08:49.867
That\'s what my mom told me.

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That\'s what economics tells us.

00:08:51.967 --> 00:08:55.767
So we\'re obviously the
healthiest people on the planet.

00:08:55.800 --> 00:08:57.033
Right?

00:08:59.767 --> 00:09:02.133
No matter what indicator
you look at,

00:09:02.167 --> 00:09:03.933
we don\'t match up.

00:09:03.967 --> 00:09:06.533
People in nearly
every other rich country

00:09:06.567 --> 00:09:08.933
live longer than we do.

00:09:08.967 --> 00:09:11.567
Compared with Europeans,
we\'re nearly twice as likely

00:09:11.600 --> 00:09:14.967
to suffer from chronic illness
after age 50,

00:09:15.000 --> 00:09:19.333
you know, like heart disease
or high blood pressure.

00:09:19.367 --> 00:09:21.467
We\'ve got fewer doctors
per person,

00:09:21.500 --> 00:09:23.400
fewer hospital beds,

00:09:23.433 --> 00:09:27.833
and 47 million people
with no health insurance at all.

00:09:27.867 --> 00:09:29.533
You could think
of our health care system

00:09:29.567 --> 00:09:32.400
as a roof protecting us,

00:09:32.433 --> 00:09:37.567
gold-plated,
but with 47 million holes.

00:09:37.600 --> 00:09:41.067
Oh, well,
we are number one in...

00:09:41.100 --> 00:09:43.400
obesity.

00:09:43.433 --> 00:09:45.467
So let me get this straight:

00:09:45.500 --> 00:09:47.967
We\'ve got
the most expensive health care

00:09:48.000 --> 00:09:50.133
and the poorest health.

00:09:50.167 --> 00:09:52.000
Don\'t you hate it
when that happens?

00:09:59.833 --> 00:10:01.200
\"Okay,\" you say,

00:10:01.233 --> 00:10:03.900
\"those foreigners might be
a little healthier than we are,

00:10:03.933 --> 00:10:05.467
\"but they\'re crankier,

00:10:05.500 --> 00:10:07.400
\"don\'t smile much,

00:10:07.433 --> 00:10:10.300
\"squeezing into little houses
and toy cars,

00:10:10.333 --> 00:10:12.133
\"giving sardines a good name,

00:10:12.167 --> 00:10:14.700
taxed to the gills.\"

00:10:14.733 --> 00:10:18.067
We are happier, right?

00:10:18.100 --> 00:10:21.000
Happiness is harder
to measure than health,

00:10:21.033 --> 00:10:23.167
but measures exist.

00:10:23.200 --> 00:10:25.133
Gallup even does a poll.

00:10:25.167 --> 00:10:27.733
Turns out Americans
are 20% happier

00:10:27.767 --> 00:10:29.500
on weekends than workdays.

00:10:29.533 --> 00:10:31.400
What a surprise!

00:10:31.433 --> 00:10:34.233
But there\'s a lot
of other studies about this.

00:10:34.267 --> 00:10:35.600
We can actually tell

00:10:35.633 --> 00:10:38.300
whether people are more
or less happy during the day

00:10:38.333 --> 00:10:41.800
by wiring their brains.

00:10:41.833 --> 00:10:43.400
According to most studies,

00:10:43.433 --> 00:10:47.000
we\'re not as happy as the Swiss,
Danes, and Dutch, for example.

00:10:47.033 --> 00:10:48.100
But we\'re happier

00:10:48.133 --> 00:10:49.967
than the French,
Italians, and Germans.

00:10:50.000 --> 00:10:51.267
Ha!

00:10:55.433 --> 00:10:59.067
On the other hand,
in spite of our big GDP,

00:10:59.100 --> 00:11:02.300
we\'re no happier now
than we were 50 years ago

00:11:02.333 --> 00:11:06.833
when we had
half as much stuff or less.

00:11:06.867 --> 00:11:10.533
We\'re also more likely
to be anxious and depressed,

00:11:10.567 --> 00:11:13.800
twice as likely
as Europeans, in fact.

00:11:13.833 --> 00:11:15.400
Makes me want to pop a pill,

00:11:15.433 --> 00:11:18.300
but not with drug prices
the way they are.

00:11:18.333 --> 00:11:20.067
I\'ll stick to chocolate,

00:11:20.100 --> 00:11:22.867
good American chocolate
grown right here.

00:11:33.400 --> 00:11:36.433
So what really
does make us happy?

00:11:36.467 --> 00:11:38.300
We\'ve learned a whole bunch.

00:11:38.333 --> 00:11:41.300
First of all,
it helps to feel secure.

00:11:41.333 --> 00:11:44.967
But for a lot of us,
that\'s getting harder.

00:11:45.000 --> 00:11:46.700
The subprime mortgage crisis

00:11:46.733 --> 00:11:50.000
took the rug right out
from under 2 million of us,

00:11:50.033 --> 00:11:52.467
not to mention the roof
and walls.

00:11:52.500 --> 00:11:55.333
Even Wall Street
isn\'t feeling secure.

00:11:55.367 --> 00:11:58.400
It\'s leaning on us.

00:11:58.433 --> 00:12:00.867
At least
you\'ve got a job, right?

00:12:00.900 --> 00:12:02.767
But are you secure?

00:12:02.800 --> 00:12:04.600
What if your job
flew away tomorrow

00:12:04.633 --> 00:12:08.200
and landed in Kathmandu
or Timbuktu?

00:12:08.233 --> 00:12:10.433
How long could you last?

00:12:10.467 --> 00:12:12.900
How much have you saved?

00:12:12.933 --> 00:12:17.000
The average American family
has only a six-week cushion

00:12:17.033 --> 00:12:20.233
if they stop receiving income.

00:12:20.267 --> 00:12:22.700
In each of the past 12 years,

00:12:22.733 --> 00:12:25.833
more Americans declared
personal bankruptcy

00:12:25.867 --> 00:12:29.100
than graduated from college
every year.

00:12:30.267 --> 00:12:33.033
[doorbell rings]

00:12:33.067 --> 00:12:34.333
Here\'s some good news.

00:12:34.367 --> 00:12:36.800
We\'re less likely
to be victimized by crime

00:12:36.833 --> 00:12:38.333
than we used to be.

00:12:38.367 --> 00:12:40.033
That\'s a plus.

00:12:40.067 --> 00:12:42.533
But we\'re still less safe
from criminal violence

00:12:42.567 --> 00:12:46.333
than Europeans are
or the Japanese, the Canadians,

00:12:46.367 --> 00:12:48.433
and the Australians,
for that matter.

00:12:48.467 --> 00:12:53.467
You\'re five times more likely
to be murdered than they are.

00:12:53.500 --> 00:12:55.933
- [screams]

00:12:55.967 --> 00:12:57.933
- Now, you ought to be safer,

00:12:57.967 --> 00:13:00.200
just like you ought
to be healthier.

00:13:00.233 --> 00:13:02.033
After all, you\'re paying to keep

00:13:02.067 --> 00:13:05.367
more than 2 million Americans
behind bars,

00:13:05.400 --> 00:13:08.033
more than half of them
non-violent offenders.

00:13:08.067 --> 00:13:12.367
Free meals, no rent,
free health care.

00:13:12.400 --> 00:13:15.733
We lock people up at seven times
the European rate.

00:13:15.767 --> 00:13:18.367
It would be cheaper
to send them all to Harvard.

00:13:18.400 --> 00:13:21.000
But at least they don\'t count
as unemployed.

00:13:21.033 --> 00:13:26.833
More jails, less crime,
lower unemployment, more GDP.

00:13:26.867 --> 00:13:28.300
Everybody loves a win-win.

00:13:36.967 --> 00:13:38.867
We\'ve talked about security.

00:13:38.900 --> 00:13:40.767
So what else makes us happy?

00:13:40.800 --> 00:13:43.600
Here\'s what the happiness
experts have found:

00:13:43.633 --> 00:13:48.633
family, friends,
community, nature,

00:13:48.667 --> 00:13:52.200
contribution to society,
freedom.

00:13:52.233 --> 00:13:53.600
Think about it.

00:13:53.633 --> 00:13:55.267
There\'s one common denominator

00:13:55.300 --> 00:13:58.567
for every one of these
contributors to happy lives.

00:14:03.933 --> 00:14:05.300
How do you stay healthy

00:14:05.333 --> 00:14:08.533
if you don\'t have time
to eat right and exercise?

00:14:16.167 --> 00:14:18.800
Okay, first the good news:

00:14:18.833 --> 00:14:22.900
the work ethic is alive
and well in America.

00:14:22.933 --> 00:14:25.233
Now the bad news:

00:14:25.267 --> 00:14:27.633
free time is on life-support.

00:14:27.667 --> 00:14:31.033
- ♪ The kitchen of tomorrow
is calling me ♪

00:14:31.067 --> 00:14:32.967
My cake is ready.

00:14:33.000 --> 00:14:35.100
- Remember how they
told us technology

00:14:35.133 --> 00:14:37.000
would give us more leisure?

00:14:37.033 --> 00:14:38.600
- Smile.
Why not?

00:14:38.633 --> 00:14:40.967
All she had to do
was cut one strip

00:14:41.000 --> 00:14:42.400
around the outside of the lawn

00:14:42.433 --> 00:14:44.567
and then set the mower
on automatic.

00:14:44.600 --> 00:14:46.800
From then on, there\'s nothing
to do but drink a toast

00:14:46.833 --> 00:14:49.333
to a time saver
that feels its way along.

00:14:51.900 --> 00:14:56.267
- We got the technology,
but we didn\'t get the time.

00:14:56.300 --> 00:15:00.133
Americans are working longer
hours than a generation ago.

00:15:00.167 --> 00:15:01.300
Fact:

00:15:01.333 --> 00:15:03.133
We\'re the only
industrialized country

00:15:03.167 --> 00:15:06.800
with no law guaranteeing
paid vacation time.

00:15:06.833 --> 00:15:10.033
Remember the two-week
family vacation?

00:15:10.067 --> 00:15:12.467
The road trip with the kids
fighting in the back seat

00:15:12.500 --> 00:15:15.667
till they got to Disneyland
or the National Parks?

00:15:15.700 --> 00:15:18.600
The stuff memories were made of.

00:15:18.633 --> 00:15:21.267
Gone the way of the dinosaurs.

00:15:21.300 --> 00:15:26.233
Last year, half of all Americans
took less than one week off.

00:15:26.267 --> 00:15:29.567
It makes me tired
just thinking about it.

00:15:29.600 --> 00:15:31.833
You work all day
for somebody else,

00:15:31.867 --> 00:15:33.267
a big company maybe.

00:15:33.300 --> 00:15:34.700
Then they ask you for overtime.

00:15:34.733 --> 00:15:37.500
You can\'t refuse,
but at least they\'re paying you.

00:15:37.533 --> 00:15:38.833
But when you get home,

00:15:38.867 --> 00:15:42.100
you start doing a lot of
other work for them pro bono.

00:15:43.367 --> 00:15:47.033
For instance, they messed up
on my bill again.

00:15:53.700 --> 00:15:56.467
- Thank you for calling
Consolidated Mega Corporation,

00:15:56.500 --> 00:15:59.033
where we care only about you.

00:15:59.067 --> 00:16:01.933
For English, press 1.

00:16:01.967 --> 00:16:04.400
Please enter
your account number.

00:16:04.433 --> 00:16:07.367
If you wish to thank
Consolidated Mega Corporation

00:16:07.400 --> 00:16:13.600
for our awesome
personalized service, press 1.

00:16:13.633 --> 00:16:16.333
Press 3.

00:16:16.367 --> 00:16:18.700
Press 6.

00:16:18.733 --> 00:16:20.333
Press 3.

00:16:20.367 --> 00:16:22.667
If you have a question
about your billing statement,

00:16:22.700 --> 00:16:25.033
press 9.

00:16:25.067 --> 00:16:29.833
Enter the last four digits
of your social security number.

00:16:29.867 --> 00:16:30.933
Enter the last four digits

00:16:30.967 --> 00:16:32.567
of your maternal
great-grandmother\'s

00:16:32.600 --> 00:16:35.233
social security number.

00:16:35.267 --> 00:16:39.900
- Now I\'m getting
a bit frustrated.

00:16:39.933 --> 00:16:41.967
- You have pressed
an incorrect key.

00:16:42.000 --> 00:16:43.167
To speak with one of our

00:16:43.200 --> 00:16:45.267
customer service
representatives, press one.

00:16:45.300 --> 00:16:47.000
- Yes!

00:16:47.033 --> 00:16:48.633
- All of our
service representatives

00:16:48.667 --> 00:16:50.433
are serving other customers.

00:16:50.467 --> 00:16:53.733
Your call will be answered
in approximately 57 minutes.

00:16:53.767 --> 00:16:56.767
- I don\'t have time for this.

00:16:56.800 --> 00:16:58.767
Has that ever happened to you?

00:16:58.800 --> 00:17:00.967
You go through
automated operators.

00:17:01.000 --> 00:17:02.700
You make your own
travel reservations.

00:17:02.733 --> 00:17:05.267
It\'s self-service checkout
at the store,

00:17:05.300 --> 00:17:07.200
pump your own gas.

00:17:07.233 --> 00:17:09.600
Economists count
all those things

00:17:09.633 --> 00:17:12.267
as increases in productivity

00:17:12.300 --> 00:17:15.267
because the companies
don\'t have to pay someone

00:17:15.300 --> 00:17:16.900
to help you out anymore.

00:17:16.933 --> 00:17:20.500
They get more bang
for their buck,

00:17:20.533 --> 00:17:22.400
\'cause you do their work
for free,

00:17:22.433 --> 00:17:25.867
donating your free time
to their bottom line.

00:17:26.933 --> 00:17:29.500
They call that
economic progress.

00:17:29.533 --> 00:17:31.300
I don\'t know what you call it.

00:17:31.333 --> 00:17:34.000
Then, if you still
have time at all,

00:17:34.033 --> 00:17:36.633
you wade through
dozens of health plans,

00:17:36.667 --> 00:17:40.033
phone plans, retirement plans,
insurance plans,

00:17:40.067 --> 00:17:42.767
guessing which one
will save you a few bucks.

00:17:42.800 --> 00:17:45.800
That\'s called freedom of choice.

00:17:45.833 --> 00:17:47.967
Work, work, work.

00:17:48.000 --> 00:17:50.333
Is that all the economy\'s for?

00:17:58.900 --> 00:18:02.367
We\'ve been talking
about quality of life.

00:18:02.400 --> 00:18:04.200
But how about
the greatest number?

00:18:04.233 --> 00:18:06.333
What do you think that means?

00:18:06.367 --> 00:18:11.100
It\'s really just another way
to say social justice, isn\'t it?

00:18:11.133 --> 00:18:14.567
So how do we know
if a society is fair?

00:18:14.600 --> 00:18:17.200
If our society is fair?

00:18:17.233 --> 00:18:18.967
Well, for starters,

00:18:19.000 --> 00:18:22.533
we can check out the gap
between rich and poor.

00:18:22.567 --> 00:18:26.733
The United States has the widest
gap between rich and poor

00:18:26.767 --> 00:18:28.833
of any wealthy country.

00:18:28.867 --> 00:18:31.400
And it\'s getting wider
all the time.

00:18:31.433 --> 00:18:36.367
Right now, the top 1% of
Americans earn more each year

00:18:36.400 --> 00:18:40.433
than the bottom 50%
all put together.

00:18:40.467 --> 00:18:46.333
The average CEO makes 400 times
what the average worker does.

00:18:46.367 --> 00:18:50.600
Inequality of that magnitude
creates another problem.

00:18:50.633 --> 00:18:52.867
Remember consumer sovereignty?

00:18:52.900 --> 00:18:55.267
The idea that the invisible hand
of the market

00:18:55.300 --> 00:18:58.667
gives us what we as consumers
really want

00:18:58.700 --> 00:19:01.467
each of us a king,
voting with our dollars,

00:19:01.500 --> 00:19:03.533
democracy in action?

00:19:03.567 --> 00:19:05.733
Well, wait a minute.

00:19:05.767 --> 00:19:08.933
My civics textbooks
told me democracy meant

00:19:08.967 --> 00:19:11.033
one person, one vote.

00:19:11.067 --> 00:19:13.600
But in the market
as it is right now,

00:19:13.633 --> 00:19:16.833
those CEOs have 400 votes

00:19:16.867 --> 00:19:20.133
for every one vote
their workers have.

00:19:20.167 --> 00:19:24.367
The poor might need apartments
or good schools or health care,

00:19:24.400 --> 00:19:27.100
but they don\'t have
enough votes.

00:19:27.133 --> 00:19:30.000
So we get a run on
luxury yachts, private jets,

00:19:30.033 --> 00:19:32.500
and $5,000 handbags.

00:19:32.533 --> 00:19:34.467
\"Now hold on,\" you say.

00:19:34.500 --> 00:19:35.733
So what?

00:19:35.767 --> 00:19:38.800
Nobody guaranteed anybody
equality of results.

00:19:38.833 --> 00:19:43.467
What we offer in America
is equality of opportunity.

00:19:43.500 --> 00:19:47.667
It\'s up to everyone
to grab the golden ring.

00:19:47.700 --> 00:19:51.600
Even our economic mobility
is running out of gas.

00:19:51.633 --> 00:19:54.300
If you\'re born poor in America,

00:19:54.333 --> 00:19:56.767
you\'re less likely
to end up comfortable

00:19:56.800 --> 00:20:00.367
than in any wealthy country
except the United Kingdom,

00:20:00.400 --> 00:20:03.867
only 1/3 as likely
as a Dane, for example,

00:20:03.900 --> 00:20:06.933
half as likely
as those Canadians up there.

00:20:11.100 --> 00:20:13.400
As a matter of fact,
as an American,

00:20:13.433 --> 00:20:15.533
you\'re twice as likely
to live in poverty

00:20:15.567 --> 00:20:17.667
as a European would be.

00:20:17.700 --> 00:20:21.900
You could say it\'s the invisible
hand of the unregulated market

00:20:21.933 --> 00:20:23.367
picking your pocket.

00:20:31.267 --> 00:20:33.933
We\'ve talked about
the greatest good.

00:20:33.967 --> 00:20:36.600
And we\'ve talked about
the greatest number.

00:20:36.633 --> 00:20:39.200
Now, what about the longest run?

00:20:39.233 --> 00:20:42.000
What do you think
Gifford Pinchot meant by that?

00:20:42.033 --> 00:20:44.867
Pinchot was the director
of the Forest Service.

00:20:44.900 --> 00:20:48.500
He was talking about preserving
our natural resources,

00:20:48.533 --> 00:20:51.467
making sure they lasted
as long as possible.

00:20:54.700 --> 00:20:58.800
Sustainability, that\'s what
we\'re talking about, isn\'t it?

00:20:58.833 --> 00:21:00.633
And as a matter of fact,

00:21:00.667 --> 00:21:02.833
that\'s what gets me going
in the morning.

00:21:02.867 --> 00:21:04.733
Okay, I\'m weird.

00:21:04.767 --> 00:21:07.700
But I\'m what they call
an ecological economist.

00:21:07.733 --> 00:21:11.733
I study the impact
of the economy on our planet,

00:21:11.767 --> 00:21:15.800
and I can tell you right now,
the picture isn\'t pretty.

00:21:17.600 --> 00:21:20.900
Have you ever heard
of your ecological footprint?

00:21:20.933 --> 00:21:23.100
In short, it\'s the share
of the Earth needed

00:21:23.133 --> 00:21:25.133
to provide your stuff

00:21:25.167 --> 00:21:28.767
and absorb your waste or mine.

00:21:28.800 --> 00:21:32.300
And we Americans fill
the biggest shoes on the planet.

00:21:32.333 --> 00:21:34.067
You can figure out
your footprint

00:21:34.100 --> 00:21:36.233
by taking a little test.

00:21:36.267 --> 00:21:38.200
You might be shocked
at the result.

00:21:38.233 --> 00:21:39.600
Try it.

00:21:39.633 --> 00:21:43.700
I use ten acres,
kind of like a typical European.

00:21:43.733 --> 00:21:45.367
There\'s a problem with that.

00:21:45.400 --> 00:21:47.933
If everyone\'s feet
were as big as mine,

00:21:47.967 --> 00:21:51.933
that is, if everyone on Earth
consumed like I do,

00:21:51.967 --> 00:21:54.300
we\'d need two planets.

00:21:54.333 --> 00:21:55.967
That\'s the good news.

00:21:56.000 --> 00:21:57.900
Now here\'s the bad news.

00:21:57.933 --> 00:21:59.400
If you\'re a typical American,

00:21:59.433 --> 00:22:03.333
your ecological footprint
is about 25 acres.

00:22:03.367 --> 00:22:05.967
We\'d need five planets
if everyone used

00:22:06.000 --> 00:22:08.033
as much as an American does.

00:22:10.467 --> 00:22:13.600
We use 1/4 of the world\'s oil
each year,

00:22:13.633 --> 00:22:16.367
more than 1/4 of its resources.

00:22:16.400 --> 00:22:18.567
It all ends up as waste,

00:22:18.600 --> 00:22:21.467
enough waste to fill a convoy
of garbage trucks

00:22:21.500 --> 00:22:25.167
stretching halfway to the moon.

00:22:25.200 --> 00:22:27.033
Now, consider what goes
into making

00:22:27.067 --> 00:22:28.667
all those products
of ours -

00:22:28.700 --> 00:22:32.000
chemicals, thousands of them,

00:22:32.033 --> 00:22:34.367
most of them never tested
for safety

00:22:34.400 --> 00:22:36.900
in combination
with other chemicals,

00:22:36.933 --> 00:22:39.800
some untested at all.

00:22:39.833 --> 00:22:44.267
We can\'t grow on like this.

00:22:44.300 --> 00:22:47.800
You know, economists talk a lot
about capital.

00:22:47.833 --> 00:22:50.767
What they usually mean
is built capital,

00:22:50.800 --> 00:22:53.600
the factories that
make our products, for example.

00:22:53.633 --> 00:22:55.467
Or the roads we drive on.

00:22:55.500 --> 00:22:58.133
But there are
other kinds of capital.

00:22:58.167 --> 00:22:59.933
There\'s human capital:

00:22:59.967 --> 00:23:02.967
our education, health,
and skills.

00:23:03.000 --> 00:23:04.633
We know we\'re
a little capital poor

00:23:04.667 --> 00:23:06.833
when it comes to those things.

00:23:06.867 --> 00:23:08.967
Then there\'s social capital:

00:23:09.000 --> 00:23:13.267
our relationships and families
and communities.

00:23:13.300 --> 00:23:15.533
We\'re coming up short there too.

00:23:15.567 --> 00:23:19.033
The average American
now has only two friends

00:23:19.067 --> 00:23:21.200
she can truly confide in.

00:23:21.233 --> 00:23:25.767
1/4 of us have none at all.

00:23:25.800 --> 00:23:28.267
And finally,
there\'s natural capital:

00:23:28.300 --> 00:23:30.600
all the things
we take from nature

00:23:30.633 --> 00:23:32.600
to sustain ourselves.

00:23:32.633 --> 00:23:34.167
That\'s worth a lot.

00:23:34.200 --> 00:23:38.067
If you haven\'t thought about how
important natural capital is,

00:23:38.100 --> 00:23:39.867
try my test.

00:23:39.900 --> 00:23:44.567
What do you value more,
nature\'s gifts or stuff?

00:23:44.600 --> 00:23:46.167
You have a choice.

00:23:46.200 --> 00:23:48.067
You can have
all Bill Gates\' wealth,

00:23:48.100 --> 00:23:49.733
all $50 billion,

00:23:49.767 --> 00:23:53.233
or just one
of nature\'s products:

00:23:53.267 --> 00:23:56.733
oxygen, which has
no market value at all,

00:23:56.767 --> 00:23:58.633
no GDP value.

00:23:58.667 --> 00:24:00.800
Which would you choose?

00:24:00.833 --> 00:24:03.000
If you think you would choose
Bill\'s money,

00:24:03.033 --> 00:24:05.433
try holding your breath
for five minutes.

00:24:07.733 --> 00:24:10.167
I love my laptop,

00:24:10.200 --> 00:24:16.567
so light, so much memory,
so warm and fuzzy,

00:24:16.600 --> 00:24:19.067
and before it has time
to get wrinkles,

00:24:19.100 --> 00:24:20.867
there\'ll be a new one
on the market,

00:24:20.900 --> 00:24:24.967
lighter, faster, sexier.

00:24:25.000 --> 00:24:27.367
Ah, but that\'s the problem.

00:24:27.400 --> 00:24:32.833
We\'re changing models
every year.

00:24:32.867 --> 00:24:34.467
Hurry up, will you?

00:24:34.500 --> 00:24:38.567
Patience is so yesterday.

00:24:38.600 --> 00:24:44.467
So Americans throw millions
of these things away every year.

00:24:44.500 --> 00:24:46.067
Hazardous waste,

00:24:46.100 --> 00:24:48.733
filled with toxic chemicals
of all kinds,

00:24:48.767 --> 00:24:51.433
dropped in landfills
or shipped overseas,

00:24:51.467 --> 00:24:54.000
polluting rivers,
poisoning drinking water,

00:24:54.033 --> 00:24:56.300
out of sight, out of mind,

00:24:56.333 --> 00:24:59.933
and the GDP goes up.

00:24:59.967 --> 00:25:02.733
Now, that\'s just the tip
of the iceberg.

00:25:02.767 --> 00:25:05.900
We haven\'t even gotten
to global warming.

00:25:05.933 --> 00:25:08.433
But Al Gore
already told you about that,

00:25:08.467 --> 00:25:11.200
so I won\'t belabor the point.

00:25:11.233 --> 00:25:13.400
Longest run, indeed.

00:25:13.433 --> 00:25:15.867
I\'m feeling a little queasy.

00:25:25.267 --> 00:25:27.633
So from what I can see,

00:25:27.667 --> 00:25:29.800
whether it concerns
quality of life,

00:25:29.833 --> 00:25:32.767
social justice,
or sustainability,

00:25:32.800 --> 00:25:36.600
our economy looks
a little blue around the gills.

00:25:36.633 --> 00:25:39.267
Has it always been this way?

00:25:39.300 --> 00:25:41.367
Let\'s check it out.

00:25:48.500 --> 00:25:52.567
- The 1920s were bumper years
for the American economy.

00:25:52.600 --> 00:25:54.033
Taxes were low.

00:25:54.067 --> 00:25:56.833
Government interference
in the market was minimal

00:25:56.867 --> 00:26:01.000
while the invisible hand dealt
a royal flush year after year.

00:26:01.033 --> 00:26:02.367
Stocks were soaring.

00:26:02.400 --> 00:26:04.400
Investors were bullish.

00:26:04.433 --> 00:26:06.567
Speculators ran wild.

00:26:08.867 --> 00:26:13.333
Then, on Black Tuesday,
October 29, 1929,

00:26:13.367 --> 00:26:16.633
in what scientists
would later call the big bang,

00:26:16.667 --> 00:26:20.433
it all exploded.

00:26:20.467 --> 00:26:22.467
Totally.

00:26:22.500 --> 00:26:24.600
Millions unemployed...

00:26:24.633 --> 00:26:30.933
breadlines, Hoovervilles,
bankruptcies, foreclosures.

00:26:30.967 --> 00:26:33.000
1933:

00:26:33.033 --> 00:26:35.300
into the wreckage
of the American economy,

00:26:35.333 --> 00:26:38.133
like a knight in shining armor
or whatever,

00:26:38.167 --> 00:26:41.067
rode a new president
with new ideas,

00:26:41.100 --> 00:26:43.500
Franklin Delano Roosevelt,

00:26:43.533 --> 00:26:47.133
telling us we had nothing
to fear but fear itself.

00:26:47.167 --> 00:26:49.700
It was change
we could believe in.

00:26:49.733 --> 00:26:51.733
Roosevelt said
the market had failed

00:26:51.767 --> 00:26:53.433
and that only
an activist government

00:26:53.467 --> 00:26:55.933
could restore prosperity
and hope.

00:26:55.967 --> 00:26:58.367
He called his program
the New Deal,

00:26:58.400 --> 00:27:00.000
and what a deal it was.

00:27:00.033 --> 00:27:03.900
An alphabet soup
of federal agencies and policy:

00:27:03.933 --> 00:27:11.400
the NRA, the WPA, FDIC,
TVA, CCC.

00:27:11.433 --> 00:27:13.033
Well, you get the idea.

00:27:13.067 --> 00:27:16.833
All those programs put
the unemployed to work again,

00:27:16.867 --> 00:27:19.667
rebuilding America.

00:27:19.700 --> 00:27:21.633
New dreams flourished.

00:27:21.667 --> 00:27:23.067
Things were hopping.

00:27:23.100 --> 00:27:26.167
People got together,
demanded new laws, and got them:

00:27:26.200 --> 00:27:27.933
social security,

00:27:27.967 --> 00:27:29.467
the minimum wage,

00:27:29.500 --> 00:27:30.600
the 40-hour week,

00:27:30.633 --> 00:27:32.433
the right to organize.

00:27:32.467 --> 00:27:37.367
Banks, stocks, and speculators
were regulated as never before.

00:27:37.400 --> 00:27:39.167
For an entire generation,

00:27:39.200 --> 00:27:42.400
the philosophy of an activist
government carried the day.

00:27:42.433 --> 00:27:46.567
The theme was simple:
we\'re all in this together.

00:27:46.600 --> 00:27:48.867
After World War II,
the G.I. Bill,

00:27:48.900 --> 00:27:52.067
low-cost higher education,
and other programs

00:27:52.100 --> 00:27:55.033
further narrowed the gap
between rich and poor,

00:27:55.067 --> 00:27:56.733
expanding the middle class.

00:27:56.767 --> 00:27:59.600
Business and labor
became partners.

00:27:59.633 --> 00:28:02.867
Companies provided pensions
and health care.

00:28:02.900 --> 00:28:05.467
During the Republican
Eisenhower era,

00:28:05.500 --> 00:28:07.867
taxes on the wealthy
reached their zenith.

00:28:07.900 --> 00:28:10.500
Rich Americans paid 90 cents

00:28:10.533 --> 00:28:13.300
on every dollar over $1 million
they earned

00:28:13.333 --> 00:28:16.933
and 50% on capital gains.

00:28:16.967 --> 00:28:19.367
Now, that\'s
spreading the wealth.

00:28:29.733 --> 00:28:31.233
- Amazing, isn\'t it?

00:28:31.267 --> 00:28:33.233
But not everyone did so well.

00:28:33.267 --> 00:28:36.533
Minorities faced discrimination
at every turn.

00:28:36.567 --> 00:28:40.500
And 1/5 of all Americans,
especially senior citizens,

00:28:40.533 --> 00:28:42.567
were desperately poor.

00:28:42.600 --> 00:28:45.033
We passed civil rights
legislation

00:28:45.067 --> 00:28:48.167
and the War on Poverty
to reduce the gaps.

00:28:48.200 --> 00:28:50.900
Nearly everyone began
to share in the bounty,

00:28:50.933 --> 00:28:52.233
except Mother Earth.

00:28:52.267 --> 00:28:54.900
She was paying the price
of unbridled growth.

00:28:54.933 --> 00:28:58.533
You could hardly see through
the smog in Los Angeles.

00:28:58.567 --> 00:29:00.833
Very uncool.

00:29:00.867 --> 00:29:02.800
So pretty soon,
there were hippies everywhere,

00:29:02.833 --> 00:29:04.933
saying, \"Save the Earth,\"
and stuff.

00:29:04.967 --> 00:29:07.433
And lots of other people
were worried too.

00:29:07.467 --> 00:29:10.367
They all got out
and demonstrated on Earth Day,

00:29:10.400 --> 00:29:13.300
April 22, 1970,

00:29:13.333 --> 00:29:16.400
millions of people
all over America.

00:29:16.433 --> 00:29:17.733
In the next few years,

00:29:17.767 --> 00:29:20.300
President Nixon signed
the Clean Air Act,

00:29:20.333 --> 00:29:23.433
the Clean Water Act,
the Endangered Species Act,

00:29:23.467 --> 00:29:25.400
the Environmental
Protection Act,

00:29:25.433 --> 00:29:28.667
and the Pentagon Papers.

00:29:28.700 --> 00:29:29.900
Good for him,

00:29:29.933 --> 00:29:32.333
\'cause our environment
got better.

00:29:32.367 --> 00:29:35.933
There was lots to cheer about,
but not everybody was happy.

00:29:35.967 --> 00:29:37.867
We were at war in Vietnam

00:29:37.900 --> 00:29:41.667
and in the middle
of an energy crisis at home.

00:29:41.700 --> 00:29:45.767
Gas prices hit an unheard of
40 cents a gallon.

00:29:45.800 --> 00:29:47.700
Can you imagine?

00:29:47.733 --> 00:29:50.267
Greater equality
all over America

00:29:50.300 --> 00:29:52.333
meant smaller profits
for big business

00:29:52.367 --> 00:29:54.133
and its stockholders.

00:29:54.167 --> 00:29:57.600
By the early 1970s,
they were revolting

00:29:57.633 --> 00:30:01.433
and trying to turn back
the New Deal and its legacy.

00:30:01.467 --> 00:30:05.167
In 1980, they got their knight
in shining armor,

00:30:05.200 --> 00:30:07.900
an actor named Ronald Reagan.

00:30:07.933 --> 00:30:10.967
He said government
was the problem.

00:30:11.000 --> 00:30:14.167
Reagan called for
supply side economics.

00:30:14.200 --> 00:30:15.967
The concept was simple:

00:30:16.000 --> 00:30:20.867
cut taxes and regulations on
business and wealthy Americans.

00:30:20.900 --> 00:30:22.567
They\'d invest their extra money,

00:30:22.600 --> 00:30:25.633
sparking economic growth
and more production.

00:30:25.667 --> 00:30:29.167
More jobs, more GDP.

00:30:29.200 --> 00:30:31.433
Through the magic
of the free market,

00:30:31.467 --> 00:30:33.900
unhampered by New Deal rules,

00:30:33.933 --> 00:30:36.367
wealth from above
would trickle down

00:30:36.400 --> 00:30:41.000
to those on the bottom
like a golden waterfall.

00:30:41.033 --> 00:30:43.467
Win-win for everybody.

00:30:43.500 --> 00:30:49.133
♪ Me, me, me, me,
me, me, me, me, me ♪

00:30:49.167 --> 00:30:53.200
For nearly 30 years,
with slight variations,

00:30:53.233 --> 00:30:57.400
this has been the dominant
economic philosophy in America.

00:30:57.433 --> 00:31:00.333
George Bush the younger
upped the ante.

00:31:00.367 --> 00:31:04.233
He wanted to privatize
nearly everything.

00:31:04.267 --> 00:31:08.267
Americans would be responsible
for their own health care,

00:31:08.300 --> 00:31:12.100
retirement, higher education.

00:31:12.133 --> 00:31:15.167
Bush called it
\"the ownership society.\"

00:31:15.200 --> 00:31:18.333
His friend, Grover Norquist,
offered a metaphor

00:31:18.367 --> 00:31:19.867
for the Bush plan:

00:31:19.900 --> 00:31:22.167
Reduce the size of government

00:31:22.200 --> 00:31:25.967
until you could \"drown it\"
in a bathtub.

00:31:26.000 --> 00:31:28.433
It was an elegant,
beguiling idea,

00:31:28.467 --> 00:31:31.567
this market-worshipping,
supply-side, trickle-down,

00:31:31.600 --> 00:31:35.167
ownership society
great leap forward.

00:31:35.200 --> 00:31:37.367
There was only one problem.

00:31:37.400 --> 00:31:41.467
Millions of Americans
lost pensions and health care.

00:31:41.500 --> 00:31:45.533
And while GDP, CEO pay,
and profits kept rising,

00:31:45.567 --> 00:31:48.700
wages for workers barely budged.

00:31:48.733 --> 00:31:51.267
For the people who got us
into this mess,

00:31:51.300 --> 00:31:53.400
the answer was simple.

00:31:53.433 --> 00:31:55.567
Cut taxes
and regulations some more,

00:31:55.600 --> 00:31:59.233
keep doing what we\'ve been doing
and hope for a miracle,

00:31:59.267 --> 00:32:04.433
which some people say is the
working definition of insanity.

00:32:13.633 --> 00:32:15.733
Well, unless you\'ve been
in a hole somewhere,

00:32:15.767 --> 00:32:18.133
you probably know
how all this ended up.

00:32:18.167 --> 00:32:22.600
In the late 1990s, fueled by
new information technologies

00:32:22.633 --> 00:32:24.900
and the rise
of the dot-com economy,

00:32:24.933 --> 00:32:29.433
Americans began spending
as if there was no tomorrow.

00:32:29.467 --> 00:32:32.933
It was like the 1920s
all over again.

00:32:32.967 --> 00:32:35.767
Everybody wanted
to borrow money.

00:32:35.800 --> 00:32:39.900
New Deal restrictions
requiring prudence from lenders

00:32:39.933 --> 00:32:42.800
were removed
with bipartisan gusto.

00:32:42.833 --> 00:32:44.667
The government
lent cash to banks

00:32:44.700 --> 00:32:46.700
at rock-bottom interest rates.

00:32:46.733 --> 00:32:49.433
Banks offered loans
to nearly everybody,

00:32:49.467 --> 00:32:52.667
whether they had
good credit ratings or not.

00:32:52.700 --> 00:32:58.133
They bought houses, cars,
hot tubs, leaf blowers.

00:32:58.167 --> 00:33:00.000
Don\'t you just
hate those things?

00:33:00.033 --> 00:33:02.400
Noisy and smelly.

00:33:06.767 --> 00:33:08.267
With everyone spending,

00:33:08.300 --> 00:33:10.033
including speculators who hoped

00:33:10.067 --> 00:33:12.767
to quickly resell houses
they bought,

00:33:12.800 --> 00:33:15.600
housing prices soared.

00:33:15.633 --> 00:33:18.033
The GDP bubbled up.

00:33:18.067 --> 00:33:19.967
But there was one problem.

00:33:20.000 --> 00:33:23.167
Wages weren\'t keeping up
with rising prices.

00:33:23.200 --> 00:33:26.967
In fact, between 2001 and 2006,

00:33:27.000 --> 00:33:30.800
while labor productivity
in America grew by 20%,

00:33:30.833 --> 00:33:35.900
the median wages for workers
actually fell by 3%.

00:33:35.933 --> 00:33:38.567
Some people couldn\'t keep up
with their mortgages.

00:33:38.600 --> 00:33:40.133
Banks foreclosed.

00:33:40.167 --> 00:33:41.667
Housing prices fell.

00:33:41.700 --> 00:33:45.633
And banks with big loans
outstanding started falling too.

00:33:45.667 --> 00:33:46.733
The housing bubble...

00:33:46.767 --> 00:33:50.833
[explosion rumbling]

00:33:50.867 --> 00:33:55.200
The whole church of the
trickle down was falling apart.

00:33:55.233 --> 00:34:00.900
It looked like curtains
for the economics of greed.

00:34:00.933 --> 00:34:02.967
But remember the golden rule?

00:34:03.000 --> 00:34:07.867
Yep, those with the gold
make the rules.

00:34:07.900 --> 00:34:11.933
So all of us were forced
to write a bailout check

00:34:11.967 --> 00:34:14.667
by treasury secretary
Henry Paulson

00:34:14.700 --> 00:34:17.967
to the very bankers
and speculators

00:34:18.000 --> 00:34:20.867
who created the mess
in the first place.

00:34:20.900 --> 00:34:27.167
They gambled, lost big,
then won big at our expense.

00:34:27.200 --> 00:34:28.933
Nice work if you can get it.

00:34:37.900 --> 00:34:40.700
Well, so far, so bad.

00:34:40.733 --> 00:34:44.267
It\'s been a bumpy ride
to the edge of a cliff.

00:34:44.300 --> 00:34:46.567
But our nation has seen worse:

00:34:46.600 --> 00:34:47.867
The Great Depression.

00:34:51.133 --> 00:34:55.800
At that time, we asked,
\"What\'s the economy for, anyway?\"

00:34:55.833 --> 00:34:58.700
And we answered the question.

00:34:58.733 --> 00:35:02.200
We adopted new economic goals,
measurements, policies,

00:35:02.233 --> 00:35:04.467
and institutions.

00:35:04.500 --> 00:35:07.267
Well, once again,
it\'s time to turn around

00:35:07.300 --> 00:35:09.200
and change direction.

00:35:09.233 --> 00:35:13.967
The first thing we need to do
is find a replacement for GDP.

00:35:14.000 --> 00:35:16.767
We need a new set
of national indicators

00:35:16.800 --> 00:35:20.067
that will tell us
whether our economy is working

00:35:20.100 --> 00:35:23.300
for the greatest good
and the greatest number

00:35:23.333 --> 00:35:25.433
over the longest run.

00:35:25.467 --> 00:35:28.967
Ask yourself, what do you want
out of the economy?

00:35:29.000 --> 00:35:32.100
More money or more time?

00:35:32.133 --> 00:35:35.000
More tanks or more trains?

00:35:35.033 --> 00:35:39.500
More wind or more hot air?

00:35:39.533 --> 00:35:43.067
Markets have given us
some wonderful things.

00:35:43.100 --> 00:35:48.000
Where they were eliminated,
the results were catastrophic.

00:35:48.033 --> 00:35:50.067
But belief in a market
without rules

00:35:50.100 --> 00:35:53.133
or without an active
and robust public sector

00:35:53.167 --> 00:35:54.733
hasn\'t worked either.

00:35:54.767 --> 00:35:56.733
There are no utopias out there,

00:35:56.767 --> 00:35:58.800
but there are some models

00:35:58.833 --> 00:36:01.133
of market
and government relationships

00:36:01.167 --> 00:36:05.400
that have worked
pretty darn well.

00:36:05.433 --> 00:36:07.433
Take Europe, for example.

00:36:07.467 --> 00:36:11.067
The Europeans have what
they call the social contract.

00:36:11.100 --> 00:36:15.300
It\'s like what like we had
from the 1930s to the 1970s.

00:36:15.333 --> 00:36:18.033
What it means basically
is that everyone shares

00:36:18.067 --> 00:36:20.200
in economic prosperity,

00:36:20.233 --> 00:36:23.333
not that everyone is equal
or makes the same amount,

00:36:23.367 --> 00:36:26.533
but that no one goes wanting
for the basics:

00:36:26.567 --> 00:36:30.733
a job or enough money
to live modestly and securely.

00:36:32.767 --> 00:36:35.300
Europeans pay
higher taxes, sure.

00:36:35.333 --> 00:36:37.733
But they get something
from those taxes

00:36:37.767 --> 00:36:39.567
that we\'re not getting.

00:36:39.600 --> 00:36:42.867
If you look at almost any index
of quality of life,

00:36:42.900 --> 00:36:46.433
economic fairness,
or environmental sustainability,

00:36:46.467 --> 00:36:49.200
then nearly all
Western European countries

00:36:49.233 --> 00:36:51.333
are doing better than we are.

00:36:51.367 --> 00:36:55.867
In fact, whether its health
or leisure or financial security

00:36:55.900 --> 00:36:58.667
or public safety
or economic mobility

00:36:58.700 --> 00:37:02.200
or educational achievement
or environmental protection

00:37:02.233 --> 00:37:03.933
or the welfare of children

00:37:03.967 --> 00:37:06.467
and support
for working families,

00:37:06.500 --> 00:37:09.600
the United States
ranks near the bottom

00:37:09.633 --> 00:37:12.733
among the richest nations
in the world.

00:37:12.767 --> 00:37:16.633
Having the biggest GDP
isn\'t good enough.

00:37:16.667 --> 00:37:20.867
What we need now
is a new New Deal,

00:37:20.900 --> 00:37:22.733
new economic policies

00:37:22.767 --> 00:37:26.000
offering us,
in our troubled times,

00:37:26.033 --> 00:37:29.867
what the old New Deal
offered long ago.

00:37:29.900 --> 00:37:34.433
It means rules that reduce
the chasm between rich and poor.

00:37:34.467 --> 00:37:35.767
Dare I say it?

00:37:35.800 --> 00:37:38.100
Spread the wealth around.

00:37:38.133 --> 00:37:42.133
It means guarantees
of paid time off.

00:37:42.167 --> 00:37:45.667
It means a right to health care
and higher education

00:37:45.700 --> 00:37:48.167
regardless
of your ability to pay,

00:37:48.200 --> 00:37:54.667
major investments in alternative
energy like wind and solar,

00:37:54.700 --> 00:37:56.467
a sense of solidarity,

00:37:56.500 --> 00:38:00.200
a word that simply means
we\'re all in this together.

00:38:00.233 --> 00:38:04.067
You could call it capitalism
with a human face.

00:38:04.100 --> 00:38:07.367
We can build the economy
we want together

00:38:07.400 --> 00:38:09.500
just like we did then.

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We can restore
the American dream.