How We Can Solve Economic Inequality

Some say wealth and income inequality isn't a problem, that only opportunity matters. They're wrong. Fortunately, there are proven solutions.
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[AvangionQ]

Free higher education, progressive tax system, universal healthcare ... we can do these, and if we want to reclaim the American Dream, we must do these.

[OneCommunityGlobalOrg]

Excellent explanation and presentation.

[neomcdoom]

Like all good ideas, people oppose democratic socialism for absolutely not reason.

[ajmarr]

The faulty economics of Income Inequality---- or the economic mobility of catching fish
The distinction between rich and poor is not just a matter of perceived contrast, but demonstrable need. And the often-dire needs of others are relatively easy to meet. About 1% of the population has 99% of the world’s assets, or so the argument goes. So it is a simple matter of redistributing wealth, with everyone’s needs can be met without the slightest encumbrance to the wealthy. However, provisioning assets to meet someone’s need is not the same as provisioning the incentive for that person to meet that need. Or in other words, to give a person a fish does not teach him to fish, or necessarily give him the opportunity to fish or even market his fish. These are all dependent upon incentive systems that are independent of the charity of others, and are built into the social, economic, and political institutions that govern the motivations of peoples and the wealth of nations.
In the past, European empires provisioned rudimentary incentive systems (English common law, religious conversion) that were imposed through conquest. Now if a foreign expeditionary force took over some impoverished state and imposed the social democracy of say, the prosperous state of Singapore, this would be the height of rudeness, racism, and injustice. Indeed, intervention in the legal, religious, social, and familial institutions of other countries and cultures is nowadays not worth the trouble for intervention, but worth merely the palliative of charity. But this changes nothing, as no one proverbially learns how to fish (or for that matter raise and educate a family or have a democratic politic), with the result that social problems fester and worsen, and in the increasing debilitation and impoverishment of the race.
Ultimately, the issue is not income inequality, but incentive inequality, with the former having current intellectual precedence due to the false assumption that individual volition is unmoored to incentives both subtle and real, but would follow some golden mean if one merely had the resources but not the guidance, while ignoring the fact that it is the guidance of incentives that provides for resources, or a world of abundant fish.

[shortcipher]

Concentration of wealth is a big problem. It always leads to the breakdown of a functioning society.

Universal access to education is the #1 way to give rich and poor alike a good shot at improving their life.

Making profit off of sickness is itself a form of sickness and provides financial incentive for promoting diseases like cancer.

Preventing monopolies and allowing for fair competition in the marketplace of ideas is another important step. Stop censorship and stop subsidies. Let harmful ideas and harmful business practices die of their own accord.

A progressive tax on individuals is not a 'fair' tax. Calling 15% from one and 40% from another 'fair' is Orwellian doublespeak.

Eliminating all witholdings on personal income derived from labor would be a good start on fixing the tax situation. Tax corporations, capital gains (making money off money), and foreign commerce, but leave the product of an individual's hard work alone.

Taxes based on consumption are also an equitable option in many circumstances, as long as the taxes are actually spent appropriately. For example, a tax on gasoline that is used to maintain the roads. More gas use = more driving = more road upkeep.

We need more individual freedom and control over our own lives, not more intrusion and big brother nanny state actions.

Peace. Love. Mutual respect for one another.

[boltstrike]

The "livable wage" part of the problem is I think the biggest issue here, the cost of living is going up and wages are stagnating making it harder and harder for people to sustain themselves. And none of the solutions you offered really helped with that.

[aoblak]

There are only so many opportunities for people to ascertain.

[daisydd]

Nice on YouTube there are full of economist telling me there is an inequality problem which I already know but no one talks about the solution

[Beardman]

As someone who's family escaped communism I am very suspect as to wether the desire to solve economic inequality comes from compassion for the poor or hatred of wealthy, one should be very careful in this regard since the outcomes of such hatred has caused the death of millions.

[flameshoter]

All three options will not make anything better in the US. Affordable education will not get me an affordable lifestyle faster. It takes time, studying, and patience. Then needing to kiss someone's butt for them to even notice you before you can be hired. And if something doesn't work out the first time, then its going to suck more trying to get additional education in another field.

If you tax the richest people, wtf can you do with an extra 50B dollars? It would just go into politician's pockets. They'll be like "we haven't had a raise in year" when in reality they get 10% raises year after This doesn't provide poor people better opportunities. It doesn't pay for people's housing and food, etc. It would get spent on something stupid by the government. This wouldn't reduce overall taxes. If anything, it would create the government to demand more.

How would universal needs be added? Tax more? Hell, too many people have enough trouble as is. I don't need the government taking another $500 a paycheck to give to someone else. Then housing becomes unachievable for everyone because that difference provides savings over the years just to be able to put a down payment. If that is gone, so is savings. Hell, social security is already a big train wreck... Can't wait for an increase in more taxes.... How can someone have good health if the person would be spending already 14 hour days at work.... You provide universal care, but that doesn't help provide a life.


People need increased purchasing power. They need good jobs that doesn't require hopping around for a better deal. They need more affordable places to live. There are plenty of people who don't need to live in a falling apart 300k home. They need something that is reliable and costs under 150k. We need better food regulations. When everything has a ton of sugar in it... everything is a red alarm of the eventual issues that will happen soon.

[lozgod]

How does Norway and Sweden have more economic mobility? How is that proven? Also what percentage of total taxes do the bottom 50% of income earners pay? It’s less than 10%. The poor aren’t paying taxes on behalf of the rich. That’s a lie. It’s the other way around. The rich pay almost all of the taxes the US receives.

[Beardman]

Norway's economic system is based on massive government owned oil and gas company that essentially funds pensions for all of the citizens of the country's tiny population, such an economic system cant work in the US.

[Beardman]

The main obstacle for economic mobility in the US is the massive amount of regulation

[MrMedic]

One often failed mention is these types of videos is the disclosure that EVERYONE taxes need to be raised. Not just on the rich who CAN NOT pay all the taxes themselves. It will take EVERYONE paying their fair share. Denmark has one of the highest tax rates in the world, which is often mentioned as one of the biggest objections against the Danish welfare model. The average annual income in Denmark is about 39, 000 euros (nearly $43, 000) (23k take home) and as such, the average Dane pays a total amount of 45 percent in income taxes. Danish income taxes are based on a progressive tax system, so if you make more than 61, 500 euros (about $67, 000) per year, an additional tax rate of 7 percent is added over this threshold. But remember, Denmark only has 5m people while America has seen 100 million in the last 15 years. Americans will be paying lots more for the safety nets programs.

[nelson]

Hey guys could we do a spanish version of this video?

[kbrownvirginia]

The video advocates for increased regulations and taxes; the very things that decrease economic mobility and increase income disparity. They fail to mention that Scandinavian countries had to relax their regulations because they were killing growth. Their people are still very heavily taxed.

[taradelarosa]

Not giving facts and data sources. Lots of inaccurate information.

[___David___Savian]

It is NOT as simple as this video paints the options to be. The biggest problem in the USA is rarely mentioned. So I will. The Federal Reserve controls the interest rates in the nation. The Fed Reserve is just rich bankers and business people not part of the gov. But, they for some reason have a lot of power in The U.S. The Fed raises rates the INSTANT it thinks the poor and middle class are saving or making money. How convenient. That way, the rich can charge more for themselves. Next, the rich have tons of Tax Loops so that they don't have to pay taxes by buying off the government. That puts the burden of taxes on everybody else. That, causes national deficits since the gov collects less tax dollars not payed by the rich. Next, the so called Capitalism model is failing because the rich companies thanks to DE-REGULATIONS started by Ronald Reagan in the 1980s allows the rich to get too rich to fail by buying up many of their competition businesses then consolidating those business (shrinking them) and then firing tons of people which is what Elon Musk did when he bought Twitter. That means more unemployed people thanks to De-regulations. Next, landlords, big pharma and even food companies as well as utilities companies continue to increase prices while the minimum wage remains stagnant. That is another strike against the poor and middle class. So, it is not so much a matter of having a job opportunity and then thriving. Today there are full time employed people that live in cars because the rent and cost of living is too high. The bottom line is that big companies have lobbyists throwing millions of dollars to politicians that sell their votes for that money. Also, the model that works in Scandinavian countries like The Netherlands, Sweden and Norway don't work in the USA because minimum wage increases don't keep up with the cost of living in the USA. In many European countries the minimum wage is as high as 24 dollars and hour. While in the USA it's barely 15 an hour and only in the big cities. The other elephant in the room is that sadly to this day racism is still too prevalent in many businesses. Don't believe me ?? Go to most big businesses and the percentage of minorities employed is alarmingly low. You will see mostly white people in white collar jobs. Go to Wall Street and that is what you will mainly see. In Scandinavian countries they are not as racist in Scandinavian countries because there aren't too many minorities there because the cost of living is so high and in many European countries jobs first go to the people born in those countries and then what is left over goes to foreigners. That model does not work in the U.S. because the U.S. is made up to a large percentage of Immigrants. In Europe the countries are tiny compared to the U.S. So, they can do a lot more with their resources than in the U.S. Add to that the corruption in the U.S. government and it is clear that just fixing the education system or other superficial things is not enough to fix the United States. Until the rich pay a flat tax of at least 12 percent and all tax loops are eliminated, AND the U.S. gov stops selling their souls for money AND stops throwing money at stupid things like billions on going to outer space to photograph rocks while war veterans sleep on the street on Earth and mothers and children sleep under bridges, the economic problems in the USA will continue. Copy and paste this comment all over Youtube people. Lets get the word out on what the REAL problems in America REALLY are.

[marcelomendoza]

Did Bernie Sanders make this video? Lol

[lisawesome]

Learn a trade, work hard, pass on your home and $$$ to your children and grand children. Poor familys are more of a social problem, people with no morals who don't care about their kids future or well-being.... Plenty of "poor" people in America have plenty of $$ for drugs alcohol and cigarettes