The video is actually from a TED talk, but the article from crooksandliars and the video from CNN are at the link below
I’m just a dumb guy on the internets but what she states is pretty much what I’ve been trying to tell people for years, and it’s based on the movie Brewsters Millions, with Richard Pryor.
My theory is that our modern way of looking at business and wages, and tax structure, and economics is all wrong. That Ronald Reagan’s Trickle Down economics is a load of crap. The Reaganite theory is if you give those with a lot of money, even more money they’ll invest more into the economy, and some venture capitalists do that, but the vast, vast, vast majority of the wealthy, and large corporations only shift their assets into off shore accounts or tax shelters
Back to the movie. So, Richard Pryor has to spend $30m in 30 days in order to get $300m right? And it’s really hard for one person to do; in effect that’s trickle down economics
What happens if we would do the opposite, give 30 people a million dollars to spend in 30 days. How much easier would that be?
Let’s extend this out, if 30 people have a million dollars they could buy kitchen appliances, cars, invest in their kids education, tvs, computers, anything you can think of. Now, let’s go back to that one wealthy person, would they realistically buy 30 fridges, 30 tvs, 30 cars, 30 computers. 30 whatever …?
And this also goes back to Henry Ford’s theory, that if you pay your own workers enough, they’ll be able to buy your products (cars)
Here’s the article
I have to say that I was really happy to see this segment air this Sunday on CNN’s Fareed Zakaria GPS. It flies on the face of everything we’re being told by way too many others in the media, especially on Fox “news.” Most of corporate America has bought into the conventional wisdom that a race to the bottom on wages and benefits for workers always translates into higher profits.
In fact, as MIT professor Zeynep Ton discussed with Zakaria, the opposite is true, and I’m sure a lot of us here have our own stories and experiences that prove her correct, as well.
Ton used the example of warehouse stores (such as Costco) that run on very low profit margins, but where Costco has managed to be profitable by treating their workers better. They’ve got lower turnover. They’re not constantly spending money on training new employees. I’m sure a lot fewer of their employees are stealing from them because they’re not working on starvation wages and underpaid, and you’ve got a happier, more productive worker who cares about the company doing well — because you treat them better.