Inequality Empowers Individual Responsibility - A Lecture by Yaron Brook

I'm all wealth above 2% if you have well about 50 million dollars and 3% if you have wealth above a billion dollars and this would be annual right so every year they would figure out what your tax bill is and they would calculate it it would come with the Wellness and then they would expect the general manager demand a check from you for the amount of the tax now both of these proposals are talk of many other proposals that have been submitted by academics by economists by politicians over like state mainly the last 10 years to try to solve a problem problem quote that is be supposedly identified with the American economy and American society and that problem we are told is that is too much inequality in the world in which we live in other words that gap the difference between how much people make at the bottom of the income and how much people make at the top of the income scale that gap that difference is according to some too much and this is creating we have told massive problems in our economy you know society indeed there was a period in which if you could open up the New York Times then you give a day and you would find pretty much every problem in the world somehow blamed on income inequality income inequality of wealth inequality financial economic inequality is the cause we are told by some but terrorism in the Middle East for climate change for stagnation of the u.s. in the world economy for crime waves for pretty much every social economic problem this is the problem that the exists now the many of our problems with this way of thinking first is that there is no real there's no does never be proposed an actual economic theory that shows us that the gap between poor people and rich people the gap between low income people and high income people that that yeah causes any problems now Keynes not the old easy is not any economists have actually proposed a theory of why this should be and we'll talk about the fact that indeed you care about economic growth if you can if you care about your success and you can't nobody get on freedom then you want inequality then inequality need is a positive characteristic not a negative term the second problem is what are you gonna do about how do we soul if there is such a fall out of the soul good the fact is that we are all unequal I mean look around the world all different it's not two people here who are the same for the same abilities skill talent knowledge interests passions model characters ever and he could go on and on and on the characteristics as human beings with all different dramatically different I mean isn't that what makes the open pretty amazing place and I came through all the same oh boy you for me unbelievably boring never mind you with it and what happens take a bunch of different people you take any group of people any way in the world and you leave them asleep just let them do their thing whatever they want I don't know lying cheating stealing but other than go do what you want to do and you come back what do you think do you think everybody's gonna be the same everybody's gonna have the same everybody who will have produced the same no for lots of reasons some people smarter than others somebody work harder than others some people have interests that are associated with not making a lot of money for example your professors smart and yet they chose not to go into a profession where they can make money like being a professor from an economic perspective sucks you're not gonna become rich what's very unusual Jimmy come back why did they do it the swamp could go to Wall Street the corporation because life cemented we would you love life's about pursuing your passion but I can tell you if they're doing this with students engaging with students teaching lecture is much more fun than having millions of dollars in the bank as hard as that is to believe it's true many of us have given up the opportunity to have millions of dollars in the bank to do exactly this artists I told my kids my kids are a little older than you guys I told my kids follow your passion stay follow their passion which means they're poor a couple of artists they don't make any money you know maybe one day okay so this is it equality somebody else chose to go to Silicon Valley and all these engineer guess what they're making more money than my kids choices choices that make sense so the second problem is that were all massively different metaphysically so and therefore were all gonna produce different amounts Walker the producers in the levels or any cream different stuff and therefore we're gonna happen there as well and why should anybody care why does that matter and if we do kid and if we want to fix it what's the only way to fix well think about think about basketball inequality right everybody talks about income inequality what concerns me you would bugs me is basketball anybody like I want to be out in Canada on a basketball court with LeBron James and scroll basket one next I'll be happy let's go one back but you probably imagine that I ain't storming anything but for von Jacobs on the court the pond is just better than me so lots of reasons because he was born with better physical attributes he's more athletic but you know what he worked unbelievably hard to beat Appaji could be he still works unbelievably hard to be a great basketball player I didn't now I suspect that even if I had I would have never been as good as LeBron but what the hell I still won basketball any quality quality I think it's not bad we talked about this olympics are big that LeBron is better than I am so what do we have to do for me to be able to go in the basketball court and score some baskets when the bran is playing against the ball what do we have to do how would that happen how do we fix this inequality yeah tie his legs tight so he hobbled like this you know what he still beat me even if he tied his legs together he beats me and he beats every one of you with my guess although there might be some budding basketball star who knows what else what else do we have to do yeah blindfold it would be good although again I suspect that's a way to channel my audience's buying clothing I still think he would be right I mean he knows the basketball but he's lived on a basketball court he could probably play the game blindfolded and probably dump the basketball dunk blindfold that's how good he is break his kneecaps now you're getting now we're getting real action right I mean usually comes out somebody will yell tweaked his legs and just to be sure maybe one of his arms as well and then then we would have basketball equality and only then would we have basketball equality so in order to achieve equality what is necessary is violence what is necessary it's the Greek somebody's legs now you say that that's kind of sane right we don't quit people's legs when it comes to income equality so what do we have to do to clean income equality we have to take people's money now I've also thought about this right like I used to live in California I don't anymore because I am Jack's in a high tax rates but I used to live in California in California every year they used to take fifty-five percent of my income fifty-five percent of my income is taxed now fifty-five percent of my income represents what what attacks is represented they're taking away what from your money but what is money represent whoa and what is your purpose and how much time do you think in your life you get to spend at work because everything else you do in life fifty five percent fifty five sixty percent of your time in life is gonna be spent working for that money you spent most of your life working at least most of your adult life October time working so when they take 55 percent of your money what are they taking from you're taking from you your time they take you from you your effort they take you from you you still have my work half of my time half of my effort half of my skill is not going to be it's going to reduce income inequality why and what's the difference between that and breaking people's legs like think about I work hard I make all this money if I had a choice between somebody breaking my legs once a year taking fifty five percent of my income in the year I'm not sure which one I think like broken legs they get they yielding in Vegas right fifty-five some income ain't getting them back so the only way to fix the so-called income inequality is like aoc and suggest significantly raise taxes on people who produce now some people say and I saw three somebody put out a tween billion is don't make money they just take it they steal it and if they steal it then what it's okay if we take some from them to redistribute because it wasn't this to begin with they stole it if he's stupid son of a day anyway is that true the billion is steal their money or do they make my parents worked hard then become millionaires I know a lot of your parents probably looked odd they didn't become billionaires you gotta innovate I know a lot of innovators who've never became a billionaire I mean I think you have to work hard I think you have to innovate but what's missing there the ingredients missing yeah no matter what's that if you're born with the one of the billions how many billionaires do you think that the list of billion is were born with it I think it's less than 20% faith you I mean the biggest names that were born with it other Walters wait what did we do the Waltons get the glimpse of Sam Walton who gave us warm up so yeah his kids became too lenient but Sam had him make it so how do you become a Billy name other than being born with it because that's tough I you know I didn't get to choose my parents I don't know about you guys didn't work with me yeah you're gonna make small investments okay but that's making the question what is the small investment you gotta have a product and resource to sell you know go about making lots of stores selling products and resources and then on billion is coding last one yeah yeah you've got to create the man and you got to create the man but again every business creates the man the question is what differentiates the billionaire from everybody else and the main thing is you gotta create massive demand you've got a qui something that everybody wants you've got to create something that everybody wants why do they want why do they want because everybody else has is that way you guys go buy stuff and stop because that's a stupid reason to buy anything necessity what does that mean it means that your life you think is gonna be better because you bought it I don't know about you I I love my iPhone guy who make this iPhone you got created this product was a billionaire Steve Jobs and I paid I don't know a thousand bucks now these new iPhones thousand bucks why do I pay a thousand bucks to this why do you pay a thousand bucks store product is this worth the money to you could you believe that it's worth the money to you but how much is it worth to you enough to paint that thousand bucks now it has to be more than a thousand otherwise I would have never bothered buying it when you buy an iPhone for whatever price of a thousand dollars it's because this is worth more when you buy a bread at the grocery store you pay three bucks for it's because the bread is worth more than three bucks that you willing to give up that the three dollar zero to get in the bed so you're like better off or worse off that having bought the ice on the bread or any product that you buy it should be better simple math you gave up something less valuable and you got something more valuable you gave up a thousand dollars but this is worth more than a thousand dollars do you see your life improved the only way to become a billionaire it's the creep products values services that millions and millions and millions hopefully hundreds and millions of people want because it will improve their lives and are willing to pay you more than it costs you to produce so you make a problem and the reason they do that is because they believe their light will be improved so by logic the only way to become a billionaire is to improve the lives through trade of hundreds of millions of people think over the richest man in the world today Jeff Bezos these improved our lives dramatically by building Amazon think of Bill Gates who improve the world dramatic by creating Microsoft and all the products that Mike have cheese the world they can Steve Jobs take up with Sam Walton just even s Walmart which is lower the cost of living with so many people and they're playing food the quality of life billion is a billion because they produce something that is a hoop the wool around them they have made the world a better place you cannot unless you're a crook a thief a liar unless you get massive subsidies from the government you can't be a millionaire without having made the world a better place to live the money is made it's created it's not redistributed the values my iPhone is actually worth tens of thousands of dollars to me don't tell Apple because they don't want them to raise the price rate just for me but my ability to FaceTime with my family when I travel around the world my ability to do business 24/7 from anyway my mother you look up every piece of knowledge pretty much this existed in human history my ability to play every piece of music that I want you off of this thing all of that together is worth thousands and thousands of dollars that's why I'm happy I'm just willing the happy to pay a thousand dollars civilian is did not take their money they're not steal their money Dena they created its this just as much this basketball ability is LeBron Jameses you have no more way to take the bag well that they created then you have to break the bond changes legs what they made is this so on every front this argument about inequality makes no sense yet it has this real tug of the heart to real implicit appeal to so many people what is that well partially because we all believe that equality is a group then we believe equality is a good thing in some sense in the Declaration of Independence the funny fathers wrote that all men are created equal didn't apply it very well we are slavery but they were all men are created equal what does that mean what sense do they need they will all equal equal an outcome but that can't be because we're not we're different and we produce and create different stuff so what did they mean in what form that this equality of take equal opportunity what do we really have equal opportunities I mean really we have different parents who citizen if it's called schools who might know different people like different opportunities features and even as a parent I can tell you that a lot of what we do as parents is trying to maximize the opportunities for our kids we work damn hard to try to give our kids the most opportunities possible equal opportunities is just a form of outcome you can't equate them without penalizing my kids to Sega's lots of opportunities for the benefit of other kids who didn't get as much opportunities so it's not equality of opportunity of though I know conservatives love to counter the left equality of outcome with equality of opportunities but it's just as ridiculous standard as the outcome standing just as negative in the sense that the physical force breaking of legs have to happen in order to achieve it so what kind of equality that they mean what can be quality is right is just should the quality of natural rights so equality of I would say individual wings so the one area in which we should be equal is that we equally free we equally free to pursue or life we equally free to make choices for ourselves weekly free to make decisions for ourselves and move on without harming other people then it's none of anybody's business what we do what we think what we say how we act what equally have the right to life liberty property in the pursuit of happiness we should be politically equal we should be politically free and we should be treated equally before the law so equality before the law the law should be class blind race blind gender blind whatever else want included them it should treat us all the same so the key to free society the key I think to a healthy society is the idea of freedom that individual freedom and that's what was meant by the answer to be to register day today we associate rights with we have a way to everything pretty much we have a writer so job away to healthcare we are going to pretty much a team we have awakened other people's work other people start other people's labor we're told we have those words that's not the concept of rights as understood by the founders was anticipated thinkers who created the first free societies rights on the idea of freedom freedom of action each one of us is free to act on its own behalf and we don't want a screen of me beat up some next would everybody's for freedom but what it's actually me the street of mean should be easy yeah what's that autonomy no really great freedom capture something else put his freedom capture its freedom telling us right to make your own choice like to make your own choice so people despite his wage speedom so at the end of the day what excreta me theta means the absence of something Vida means the absence of coercion Vietnamese the absence of force freedom is the absence of authority they can tell you how to live they can force you to live in a particular way in a particular manner and if you don't follow that up Authority what happens to you they use force against you go to jail something bad physically happens freedom means the absence of force coercion and we are all shrimpy lives belong to whom what is your life belong to who said that yeah Michael wants to you my leg wants to me I don't have ownership over you you don't have ownership over me but 300 years ago who did your life belong to two hundred years ago who did your life belong to the king the tribe the council the same in every country in the world and to this day of some countries in the world and the world the assumption is not that you like dogs to you the assumption is that your life belongs to some group to some tribe some collective to someone thority to the church to some authorities they can dictate how you should live what you should do what you should think what you should say and it's the breaking of that chain the recognition that your life indeed belongs to you not to anybody else this is the root of this idea of freedom you get to decide how to live your life nobody gets to decide it for you and once we allow freedom what happens once you allow for freedom what happened we all go and you update we all go on exercise our mind is to our values build create produce make stuff summits rich so much snow but all of our lives and group feel get computed in history about 300 years ago also anybody know what like average income was about 300 years ago how much do we make our ancestors make musical a couple of hundred a year they wish they wish to nappy bucks sitting sorry I can't do math but 10,000 years basically income per capita was about the two to three dollars a day and he was flat and it didn't change it up a little bit of the grease enroll and then went down on microfilm and they went up a little bit maybe in the Renaissance but it basically stayed flat ten thousand years hundred though and then suddenly out of nowhere it went like that and after jump because it goes so high and that's where we are today at the peak of that day we are so damn rich we don't know how much we are even the poorest in America a hundreds of times richer then the average was three hundred user or than the poorest people today are in some parts of the world and this phenomenon is global how many people think lived on about $2 to $3 a day today in the world what the settings of the world population is what's considered extremely poor people what do you think percentage points how many people in the world today are extremely poor you can just guess goody anybody in the back yelling 12 25 18 all right so we got all over the place sunny is usually what people gasp 25 30 the actual numbers the first number we learned it's about 8% 8% of the world population today is considered by the United Nations extremely poor anybody know what it was 30 only 30 years ago 30 years ago was 30 so over the last 30 years over a billion people have come out of extreme Bobby how did that happen how is it that we went like that three and 250 years ago so and then over the last 30 years a billion people could come out of the street probably just this is a sight note by the way this is like the best views in all of human history like this idea that a billion pop pop you should do something we celebrate this should be like a holiday around this this is great news yet nobody ever talks about it it's not reported in the media your generation is pretty pessimistic and you know thanks for world is falling apart and yet we live in the best of times you as poor people into all together and nobody even knows of them just understand what is it that caused people to get rich relatively speaking what's become less forward yeah capitalism freedom about 200 years ago there was a freedom revolution and when everybody got free what happened okay so this is everybody poor way of my two hands and then one it goes like this right some people get really really rich and what happens to the other people they get much richer than what they were but in relative terms they're not as rich as weak people but everybody gets better off under freedom everybody is inequality is a feature of freedom not a bug not a problem not some issue to be addressed but a feature when you leave people free they could use stuff at different levels and it's fantastic that some people are so good at this production stock and they produce such good products that they become billionaires all of our lives are better off as a consequence inequality as a sign that we have three it's a sign that you can produce huge values and it's a sign that someone's enough Society I'm making the world a better place on a massive scale again inequality is a feature so I think this is a bogus issue now there are real problems in our economy in the global economy the real socio-economic problems there's a lack of mobility it's harder and harder for poor people to rise up from poverty in America today economic growth is pretty bleak you know last year was pretty good at going about 4% this year we'll be going about 2% maybe a seven and a half that's pretty low based on your standards and it means that the less opportunities it means that this was well as an economy it's fine the fact that unemployment is very low labor participation rate that is those people actually work actually looking it's still fairly high Oh still really low so you will be there's a lot of people you know hopefully none of you you can future users who are sitting in their parents basement playing video games rather than going out to work that's the pretty good situation to be in a culture with you can afford to do that and they're not stopping because you couldn't do that but it's not good so they are real economic problems in America today the solution to those economic problems and us is not massive redistribution of wealth all you're doing there is taking wealth from people who are really good at investing it which means really good a greedy table and giving it to gum and bureaucrats to waste the solution is not more controls more regulations the solution is the opposite the solution is more freedom less control less regulation less intervention when capitalism when freedom is allowed to bribe people get wealthier poor get richer and lady gets better a billion people came out of poverty in Asia and even in Africa not because of redistribution of wealth not because of pollen aid but because those count countries adopted a little bit of capitalism and a little bit of capitalism goes a long way a lot of capitalism goes even further so if we really care about the poor if we really care about in capability it really care about success no what we need is more freedom more capitalism less redistribution and the last thing in the world we need a 70% actuators and a wealth tax what we need is a resurrection of the idea Matt this time followed through properly the idea that every individual every person has the right to life liberty property [Applause] you get them and not gonna be able to do so let's start with the marginal income tax rates then we're going to lose you so so let's start with marginal income tax rate so yes the 70% rate will only kick in if you all over let say 10 million dollars or something like that so I think I think it's bad to me queasy one economic it's really stupid economic one whatever what do week's people do with their money spend it spend that kind of money so a little bit of money what people spend all their money so if you look at income and consumption the lower you are Lincoln bracket the more you consume of you income and there's more you make the more you save now steaming is not hoarding I don't know any rich people who takes all the money anybody see I don't know a few generations so there's you see uncle scrooge mcduck he has this big bowl with all this money and he goes swimming in it and he goes jumping on it rich people don't have bowls full of money what did they do with their money when they save it they invested or they put it in the bank right and what does the bank do with that money they give out loans to small businesses the large businesses their mortgages to other people so the money enters the economy to perk up the goose what they invested in startup so they invested in the stock market which again goes back abuse the last thing in the world you want so Larry one more week a night saving is what drives economic growth again econ 101 saving is what drives long-term economic growth not consumption but savings so the last thing you want to make anomic perspective is the tax savings that is the worst thing you can do pretty Connie and again those savings those investment green jobs which employ people which help everybody rise up so I think that having high marginal tax rates is economically bad actually from an economic perspective you want to have lower rates the more money you make so burning building cannot expect the progressive tax system would be better Oh a sales taxes or if you don't want it taxi sales then I'm flat system and the other thing you want to do is do away with all the deductions exclusions favors subsidies all the crap that the govern hands out with you know that the people be done so that you're not trying to manipulate people's behavior you're just raising revenue that's all you do so that's the night the fuel taxes but I also think that amount of income tax free is probably offensive these guys have created something they make the world a better place so the reward is even higher than everybody else so we're gonna punish people for creating wealth we're punish people for creating jobs people for Mickey to you know for making the great products a wheel in your house that right these are people taking they like seriously applied a mind gone out they use either be innovative and you want to penalize them and they're more innovative that come which means them all wealthy they become the more ship evil eyes I mean to me his model the upside that I want to if I have to meet him I need a billionaire I'm gonna thank them because even though they need a thousand dollars in my egg fall it's worth tens of thousands of dollars community so there's a gap and that gap is like thank you I think they have appreciated second question I don't think anybody who checks the clean and clear water making sure that we help clean and clean water I don't think those are the kind of regulations that you could even really objective but they in the Japanese us is polluted the world is I think absurd I mean gives me the Libyan product more efficient easier cheaper better I don't know what of the bath is actually polluted he instead of you driving into the store you not sent it to compute on order maybe you've actually polluted less because now you don't go wandering from the store his mother's going to buy a big diamond if I get a good deal you just go to Amazon are you gonna keep a or you're gonna go to online thanks a new polluting less baby right so look I think at the end of the day business has no need one so so as much believe it has to make money because making money means that providing Italian what happens is when they stop the money you gotta we stop buying their products and they stopped making money the best way to prevention how well the business is delivered I'm providing us values is look it's it's possibility I celebrate when companies make a lot of money it means they provide a huge amount of value other questions after all one is I think if we had a freer economy we had a whole capitalist economy there'd be a lot more jobs they'd be a lot more opportunities so I'd go maximizing opportunities not equalizing opportunities but next to my dream so people have as many opportunities as possible to make money for themselves and after dependence on others great the question is does she have the weight to impose that dependency on other people that is is it Oh does she ever wait to take my money because she is she can't you know she can't legitimately whoop herself Oh does she do it voluntarily that is sweet people voluntarily help and my view is just because you need just because you have a need does not give you a right to use force which is what the government does to take money from other people so people who actually need like your mother would be dependent on what they did before there were social security which is charity a charity is I think a legitimate form of helping people whereas government helping people always involves taking money from people without asking them not asking how it's being used without asking what it's being useful situation I would ask people to help me but I wouldn't have a right and I wouldn't feel that I had a right to pull out a gun and force them to help me now we live in a world we live in a world right now there is a gun not your mother doesn't pull the gun but the government pulls a gun on your mother's behalf if I don't pay my taxes guess what a gun shows up if I am if I am in that situation in the world in which we live in today well of course I'm gonna take the government benefits just like your mother does I'm not I'm not blaming your mother for taking the benefits I'm saying that this is not an ideal world for anybody family came to help but it doesn't give you weight because something bad happened to you it doesn't give you away just somebody else as well to somebody else is done it's sad but it doesn't give you a right to take other people's stuff hey so um I was watching your of your interview with Jesse Lee Petersen and you were mentioning about how you don't like welfare and that got me thinking about how an preempts the Constitution it says that one of the reasons why they formed the Constitution was to promote the general welfare and so that got me thinking about is that an implicit obligation on anyone who agrees to the American Society that they have to give up some little bit of their comfort to provide for the general welfare or is there a promotion that is separate from provision that different like welfare than what we be today there was no wealthiest state back then there was no redistribution of wealth at all for the first 50 60 years of the American state so there wasn't this idea that well they met redistribution as we understand it today well well they men was there won't be the general will be of the people and the founders understood again inconsistently obviously they understood the general welfare meant freedom that the way to achieve the best outcome of the people was by leaving them free and then put the rest of the Constitution basically articulates is a methodology boy stablishing freedom decree Society so we can't take that word and use the modern context for something that was written 200 something years ago in a completely different with a different understanding in a different context point the founders and and then lots of debates about this inning in the in the holy Senate in the early house about whether we distribution or wealth is a legitimate function of government and they come out clearly on the side of no it's not take you to some to give to others it's not what government is full if you want to help somebody help them voluntarily but it's not the government's job to do it for the pursuit of happiness they do not I understand opportunity is something that how are they able to get any type of ability to get to that freedom of the pursuit of happiness that we love so much if they're literally can't work you know they can't they can't do a job and they can't do that because truly physically disabled say someone like my cousin with Down syndrome I mean I don't know how he will be able to do that without the support of the government well I I mean I disagree with you that he can't do it without the support of the government country on the country I think you could do it much better if the government didn't intervene because one we would be richer all of us would be Richard because the wealth that we would all have will be substantially creative because it would be a lot more production because taxes would be a lot lower they'd be a lot more investment and a lot more of building economic success so his relatives the people surrounding him would be wealthier to help him out and I think charity would do just as good of a job if not significant and providing for such a kid then I think the government does the government is an incredibly inefficient mechanism and it's an even more magnet because the government uses force charity uses ball unto the association you want to give to charity you give you don't want to give you don't and I always asked audiences how many of you would be willing to give a little bit of money to help the kid with the Down syndrome of whether the school teacher that is fallen ill and everybody raises their hand everybody so why why does why does somebody come come to my door with the gun to take my money in order to achieve that and what if I happen to be in the circumstances where I can't support you your nephew or your cousin or whatever right because my kid is sick right now and I want to invest in my kid or whatever right I've made a choice not to support you cousin who are you to force me to support it but what majo weight do you most readers support so we take away the choice the option of what the support through support went to support a waiver individual by standardizing over a well visited by the government doing it in a sense force usually unproductively and with the greatest tragedy that actually exists in America today is public education it's the fact that we've given the government this responsibility to educate us and unsurprisingly it does a horrible job at it and it does the worst job the poor you are that is to prove you on that poor the neighborhood the worst the public schools are said it's not like it's helping in the worst parts of the country it's actually harming in the worst parts of the country and for example one of the decisions public education is made or government schools me it's to get rid of trains which why I mean it's obvious that what we need are more trade schools not fewer trade schools indeed there's a massive shortage today in America in a you know blue-collar skilled labor you know welders people who have a real skill at a particular blue-collar job and there's a shortage of them because they're no trade schools to train them you need to train for them so in my view you want to help the poor in America you want to help poor kids in America the most urgent thing to do is to privatize education is to get the government out of the provision of education the government might you might keep them as the funders of education but get them out of managing schools running schools get the labor unions the teachers unions out and have private schools and if people can't afford them you know the government might be able to supplement for a while supplement the income so they can they can afford the schools get private schools competing what happens when you get competition in anything quality goes up prices come down in everything already goes up prices come down so if you want quality go up in education if you want the right kind of education that the bits of our economy then what you want is to privatize that education get the government out of it can't entrepreneur so this is this is the idea that it's sports weekend is sports women get paid a lot less than men so WNBA players with women a basketball players they love less than the bond teams of the men yeah I think women soccer gives a lot less than soccer and the question is what and when you look at something like NBA it's pretty clear what why do you think men get people yeah what people watch them now whether that's fair or not with its weight or not that's a different question but the fact is then more people watch men's basketball – what's women's basketball and then we'll there's more revenue from the advertising and sponsorships on the mid site then the women's side is that fair absolutely because the man did you say value to more people more people are watching than they forgive people and I think the same is true generally in sports I can't think of a sport we watch women more than if there is my guess is the women would get paid more niggas Katie and my guess is women get paid more than men in this game because we watch the women more than we do it's not what a committee decide is valuable and what's not it's what other people get from you so that is determinate sports by the viewers how many viewers they're getting them value from you well let's take other fields because this is your income across many email is an interesting and controversial I can easily get into trouble over this right let's say women and then female lawyers right and there's some discussion about this systematic women lawyers get paid less than male and then chemical evidences suspect let's say but there's a common view that that is the case of the same skill set coming out of the same schools a woman will get paid less than a man now let's assume for a minute that's true can anybody think of a way to make a lot of money from that fact hire women if they're the safe skill and you paying them less then an all-female law firm would make a lot of sense and if you did that enough like you wouldn't hire them at the same so what would happen if that male law firm would hire women over here so you in order to attract them to your firm how much would you have to pay them a little bit more right otherwise a mistake makes a little bit more so like that too and push their wages up but to me the evidence that is not the case the same level exactly same performance same evidence of getting different prices is the fact that we don't have all female law firms arbitrage in the difference making money on the fact that I can get incredible skills into the hallways so they make other factors that are playing into the difference in wages similar to what's going on there are other professions in which women probably make more than manager the outreaches is abstain because for whatever reason women tend to go into lower peak professors than men and you could say that's cultural you can say a lot of things about whether that's right or not but that's a fact so when we look at women and the average wage for men that's completely distorted because they're going into the profession the real measure is in the same profession same skill level is there a difference in the evidence there is that there isn't and when there is there's a great opportunity for some entrepreneurs available make money by hiring lots of women okay thank you [Applause]

  1. Research shows that since 1300, the only periods with significant declines in wealth inequality in Europe were the Black Death and the two World Wars. Historian Walter Scheidel posits that, since the stone age, only extreme violence, catastrophes and upheaval in the form of total war, Communist revolution, pestilence and state collapse have significantly reduced inequality. He has stated that "only all-out thermonuclear war might fundamentally reset the existing distribution of resources" and that "peaceful policy reform may well prove unequal to the growing challenges ahead."
    -Economic Inequality, Wikipedia

  2. I like that the questions from the students were displayed clearly along one side of the screen. Awesome lecture from Dr. Yaron!

  3. I'm not even equal to myself on some days…taxes….are not voluntary and the threat of "breaking your legs" is always there if you don't pay them

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