Joseph Stiglitz: Elizabeth Warren & Bernie Sanders Want to Make the Economy Work for All Americans



this is democracy now I mean the gunman with Juan Gonzalez the Institute on taxation and economic policy has found the number of large US companies paid nothing in federal taxes has doubled in recent years the companies include Amazon Netflix General Motors IBM Chevron Eli Lilly Delta Occidental Petroleum Honeywell Prudential Halliburton whirlpool and Goodyear senator Elizabeth Warren recently introduced a proposal called the real corporate profits tax to force companies to pay a 7 percent tax on old profits over a hundred million dollars Warren outlined the plan on MSNBC it's just if you have more than a hundred million dollars and reported after-tax profits the hundred millionth and first dollar should be taxed at seven percent and that just goes straight across the board the simplicity of it is part of what makes it work so well and make sure no giant corporation in this country gets away with paying zero while small companies and families are having to pick up the ticket to run the so that's presidential candidate Elizabeth Warren and we hope she will join us on Democracy Now we hope all those who are her friends and her close circle will hear that message and she herself but we are joined now by Nobel prize-winning economist Joseph Stiglitz his latest book people power and profits what about this that's like an alternative minimum tax for corporations that's right I actually think there should be a global minimum tax because what is going on is that they're avoiding not only taxes the United States but there sir looking around the world for places like Panama and the tax paradises to avoid taxes Apple was particularly you know bad WA where they shifted all their money into Ireland from all their profits in Europe and then did a special deal with Ireland so they basically paid you know almost no taxes point 0 2 or 0.2% I mean really a very very low real example of tax avoidance almost at the level of evasion the the point I want to make the point that Elizabeth is making is that our big corporations are showing the same ingenuity of coming up with good products they're showing that same ingenuity unemployed in taxes and making sure that we have laws that allow them to do that and she's saying that's wrong she's also emphasized that it distorts our economy it distorts our economy in two ways where business gets located is is distorted because you search for a tax haven but also gives these big companies an advantage over small corporations over some you know individual companies and so that's not a level playing field the the the the the the big companies expand not because they're necessarily more efficient because they're more they're better at avoiding their tax obligations I'm wondering the Elizabeth Warren particularly has been rolling out a series now a proposal struggle apparently very well thought-out because we have 20 Democratic candidates but we have sort of a lack of their specifics of what they are what they stand for it I'm wondering what you're saying when Biden I'm wondering what you think about the student debt proposal and also her call to break up the big tech companies so first let me say you know the you should look at these proposals in two ways she's setting out a set of principles we ought to have more progressive taxation and not let the corporation's escape taxation we ought to do something about the growth of monopoly power in our society we ought to make sure that education is accessible to everybody regardless of the income and their pairings you know these are basic principles which all Americans should subscribe to then the second thing is here is a particular way we can implement that and you know let's all be we all know that when we go to Congress there'll be a lot of disco about how to do it and hopefully during the primaries in the election a we a lot more discussion but she's putting forward the idea that these are doable ideas these are not pie in the sky we can do it we can get more progressive taxation for instance by a small wealth tax on those with more than fifty million dollars and it's not going to affect even the bottom 1% I mean the bottom 99% are not going to be effective we're talking about a fraction of the top 1% so that's one example on the students go ahead on the student loan on the student loan thing we have a student debt now of 1.5 trillion dollars it's so large expect our macro economy it's affecting individuals lives they can't get you know buy a home start a family because of the of the debt now the new form of indentured services a new form of indentured servant servitude and and so we have to think about in two parts one going forward how do we make sure that a university education is affordable to everybody and the second part is what do we do with the backlog of 1.5 trillion dollars now she has a particular proposal so somewhat different from the one that you know that I've been advocating what what I think is that you you should have what I call contingent repayment if your income is below a certain level say below fifty thousand you don't pay back anything epics over two hundred thousand you might pay back four percent and then you keep paying it back until you pay it all back except after twenty-five years you say look at you've done what you can to repay the debt and we'll write off the rest one way or another we have to deal with that legacy debt problem let's go to Bernie Sanders on Fox News which was controversial itself but he wanted to address a Trump audience he was speaking about democratic socialism kradic socialism to me is creating a government and an economy and a society which works for all rather than just the top 1% it means ending the absurd inequalities that exist today and I want to lay this out because you're not going to hear this much on Fox and you're not going to hear this much in the media in general and the American people have got to conclude whether we think it is appropriate and what America is about to have three families owning more wealth than the bottom half of the American Society 160 million people whether it's appropriate for the top 1% to own more wealth than the bottom ninety two percent whether it is right that 49 percent of all the we've come goes to the top one percent when many people Bretton Martha were watching this program are working two or three jobs just to pay the bills so that's Bernie Sanders speaking Fox and again we invite Bernie Sanders to be here on Democracy Now at the table during this election cycle Joe Stiglitz so I think he's given a good definition of what is called democratic socialism now what Trump is trying to do is confuse people's minds traditionally socialism you know 100 years ago was about the ownership of the basic means of production you didn't hear a word about that from Bernie Sanders he's not talking about that old-style socialism he's not saying we want to bring Maduro Venezuela to America that's not what he's talking about what he's really talking about is what in Europe is called social democracy sometimes called the welfare state sometimes you know it's basically based on we need systems of social protection we need systems to make sure that we invest in our young people invest in our infrastructure invest in R&D R&D we invest in the future protect the climate that protects the environment in other words we make our economy work for all American and the word I use is progressive social progressive capitalism but you know is there any difference between my definition of progressive capitalism and what bernie is called a democratic socialism no it's all trying to get at an economy that serves our citizens and I try to emphasize there's gonna be a market part of this and what bernie is emphasizing yeah and it's also going to be a part where the government is going to put have to play a role and I emphasize both of those in my book Joe Stiglitz we want to thank you for being with us Nobel prize-winning economist Columbia University professor his latest book out this week people power and profits progressive capitalism for an age of discontent that does it for our show I'll be speaking at university of california berkeley at the genetics and plant biology building on saturday at 6 p.m. we'll be showing four days in Western Sahara Africa's last colony and having a discussion after I'm Amy Goodman with Juan Gonzalez thanks so much for joining us you




Comments
  1. Ain't happening folks. The elites have most politicians bought off here in the US and to a lesser extent in Europe. The "conservative" low information/educated voter easily manipulated into believing this is communism/socialism and will vote against their interests especially if race is worked into the equation.

  2. I want to see Sanders win the primary but then present his perspective administration team before the election, made up of progressive candidates, who then explain their place in a future administration. Present the American people, and the world, with the entire package ahead of the vote. ps. De Niro or Balwin as press secretary for a couple of months to deconstruct the four years of lies we just witnessed.

  3. Global System. Very good. Make it contingent on citizenship. If they're not a citizen, then they have to deal with borders like every other sovereign state. If their business originated in the States but has moved to cheaper shores, they should also be subjected to the global system and therefore face even a higher tax unless they re-establish some (percentile equal to the local market) of their infrastructure back on US soil.

  4. Stiglitz is old and irrelevant. Governments should not tax income, they should tax wealth and rentier activity only. Contrast Stiglitz's neolithic tax views with a real economist like Michael Hudson: https://www.youtube.com/watch?v=dQ74wWIxe4E&t=29s who has worked in the actual banking system, or Randall Wray https://www.youtube.com/watch?v=i35uBVeNp6c

  5. Taxes are dumb for the purposes Warren and Stiglitz are proposing. You want to tax super wealth to limit inequality, period. For corporations you want them to reinvest in their manufacturing in their workers in machine automation to reduce worker hours for no change in annual salary and no job lay-offs. So what you do is NOT tax corporate profits, but instead confiscate them (because it is government issue money after all, which is owed to the labourers and stolen from labour by the bosses, so it doe snot really belong to the bosses) and put these surplus profits in a government ear-marked fund for use ONLY on purchasing of material goods and non-financial services. This is non-draconian, since it does not even force companies to reinvest in R&D or expansion, it just says, "spend your surplus on the real economy, anyhow you like". Government deficits pay for things, taxes do not. #ModernMoneyDynamics #TaxesPayForNothing #TaxWealthNotIncome

  6. INSTEAD OF U.S. HISPANICS GETTING TO SHORELINES IN CENTRAL AMERICA & VENEZUELA , THEY ARE PANDERING OFF THEIR THEIR IMPOVERISHED TO THE U.S. IN ORDER TO UNDERMINE & TOTALLY DESTROY OUR GOVERNMENT . pww

  7. Gotta say, I'm not really a socialist, but I do think that these companies are getting away with murder. Do they really think that the best way to run the country is to funnel as much money as possible to the elite and avoid as much taxes as they can? It's just outright robbery.

  8. And now for your approval, Dual Presidents. Warren and Sanders!
    Talk about Walking and Chewing gum at the same time.
    Lets see how that might work out. So why not?

  9. We don't need taxes for revenue. …learn MMT idiot. Dr Stephanie Kelton is Bernie Sanders financial advisor

  10. It should be 10 million dollars! !!!! Tax the hell out of them. Warren is a capitalists. She has done some good things. …but she has her pockets lined too. Along with your guest

  11. The failure to REALLY critique capitalism and assuming other systems just don't work at all such as socialism (which was wrongly demonized by capitalists during the 50s Red Scare and McCarthyism) is a problem in the world and especially in the U.S. it seems. If the focus is on reforming capitalism we should keep in mind that it was reformed in the 1930s and here we are again and only beginning to discuss reform when we really should be talking about how to reorganize an economic system in a world where we all help create wealth TOGETHER so that the wealth is much better distributed in the first place.

  12. Ooh, ooh! I'd volunteer for that 7% tax rate. 
    I'll need to figure out a way to raise my salary to $100M so I can lower my income taxes…

  13. I sort of feel like my life is in good hands with Bernie and Elizabeth.
    People will never call her Elizabeth, she goes by the masculine part of her name nuancing America's subconscious gender biases.
    Stieglitz does not watch the news.
    The super rich in some countries resist taxes so much that it is causing massive movements to rise up.
    Their resistance to taxation is so great it gave birth to a Yellow Vest movement in France and in the poor countries as in Sudan its political elite, are overthrown!
    Brazil, mass opposition to the government elite. Venezuela the rich hoarded money and commodities from circulation to starve the poor and the government of the poor.
    They stole its gold rather than to pay taxes! I don't think Americans have a good handle on what is going on with the super rich.
    They put on a friendly face but are united in their mission to subjugate people.
    In this sense Steiglitz is right they are world wide and united but we know that? Its what they do as a group that they are emboldened to shit on your face!
    We have a political elite here protecting this resistance of the rich to pay taxes. What has he to say about that? Not much.
    Its not like they will not resist because Bernie issued an executive order as president to pay taxes.
    They are still going to resist and the political elite will not cooperate in accordance to parliamentary rules and do nothing, adding more misery to all those under these groups who pay the price and carry the burden of the cost. To get them to pay taxes is going to require an abolition of the political elite. How is the question and by what means?

  14. "progressive capitalism" and "democratic socialism" different words for pretty much the same thing as already is being implemented in Scandinavia…. with maybe even better tax and policy norms for even greater diversity of population…

  15. I'd like to see privacy raised an issue. Google, Facebook, Microsoft, etc are collecting way too much data. They collect behavioral data and use it for marketing and to influence our voting for instance. Data mining needs to be banned.

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